    [104th Congress Public Law 208]
    [From the U.S. Government Publishing Office]

    <DOC>
    [DOCID: f:publ208.104]

    [[Page 110 STAT. 3001]]

    *Public Law 104-208
    104th Congress

                                     An Act

     Making omnibus consolidated appropriations for the fiscal year ending
         September 30, 1997, and for other purposes. <<NOTE: Sept. 30,
                             1996 -  [H.R. 3610]>>

        Be it enacted by the Senate and House of Representatives of the
    United States of America <<NOTE: Omnibus Consolidated Appropriations
    Act, 1997.>>  in Congress assembled,

                                   DIVISION A

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

                         TITLE I--OMNIBUS APPROPRIATIONS

          Sec. 101. (a) For programs, projects or activities in the
    Departments of Commerce, Justice, and State, the Judiciary, and Related
    Agencies Appropriations Act, 1997, provided as follows, to be effective
    as if it had been enacted into law as the regular appropriations Act:

     AN <<NOTE: Departments of Commerce, Justice, and State, the Judiciary,
    and Related Agencies Appropriations Act, 1997.>> ACT

      Making appropriations for the Departments of Commerce, Justice, and
     State, the Judiciary, and related agencies for the fiscal year ending
                   September 30, 1997, and for other purposes.

     TITLE I--DEPARTMENT <<NOTE: Department of Justice Appropriations Act,
    1997.>>  OF JUSTICE

                             General Administration

                              salaries and expenses

          For expenses necessary for the administration of the Department of
    Justice, $75,773,000 of which not to exceed $3,317,000 is for the
    Facilities Program 2000, to remain available until expended: Provided,
    That not to exceed 43 permanent positions and 44 full-time equivalent
    workyears and $7,477,000 shall be expended for the Department Leadership
    Program exclusive of augmentation that occurred in these offices in
    fiscal year 1996: Provided further, That not to exceed 41 permanent
    positions and 48 full-time equivalent workyears and $4,660,000 shall be
    expended for the Offices of Legislative Affairs and Public Affairs:
    ---------------------------------------------------------------------------
        *Note: This is a typeset print of the original hand enrollment
    as signed by the President on September 30, 1996. The text is
    printed without corrections. Missing text in the original is
    indicated by a footnote.

    [[Page 110 STAT. 3009-1]]

    Provided further, That the latter two aforementioned offices shall not
    be augmented by personnel details, temporary transfers of personnel on
    either a reimbursable or non-reimbursable basis or any other type of
    formal or informal transfer or reimbursement of personnel or funds on
    either a temporary or long-term basis.
          For an additional amount, for enhancements for the Office of
    Intelligence Policy and Review and security measures, $3,600,000; of
    which $2,170,000 is for security enhancements: Provided, That the entire
    amount is designated by Congress as an emergency requirement pursuant to
    section 251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit
    Control Act of 1985, as amended.

                              counterterrorism fund

          For necessary expenses, as determined by the Attorney General,
    $9,450,000, to remain available until expended, to reimburse any
    Department of Justice organization for (1) the costs incurred in
    reestablishing the operational capability of an office or facility which
    has been damaged or destroyed as a result of the bombing of the Alfred
    P. Murrah Federal Building in Oklahoma City or any domestic or
    international terrorist incident, (2) the costs of providing support to
    counter, investigate or prosecute domestic or international terrorism,
    including payment of rewards in connection with these activities, and
    (3) the costs of conducting a terrorism threat assessment of Federal
    agencies and their facilities: Provided, That funds provided under this
    heading shall be available only after the Attorney General notifies the
    Committees on Appropriations of the House of Representatives and the
    Senate in accordance with section 605 of this Act.
          For an additional amount for necessary expenses, as determined by
    the Attorney General, $20,000,000, to remain available until expended,
    to reimburse any Department of Justice organization for (1) the costs
    incurred in reestablishing the operational capability of an office or
    facility which has been damaged or destroyed as a result of any domestic
    or international terrorist incident, or (2) the costs of providing
    support to counter, investigate or prosecute domestic or international
    terrorism, including payment of rewards in connection with these
    activities: Provided, That the entire amount is designated by Congress
    as an emergency requirement pursuant to section 251(b)(2)(D)(i) of the
    Balanced Budget and Emergency Deficit Control Act of 1985, as amended.

                        administrative review and appeals

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

       violent crime reduction programs, administrative review and appeals

          For activities authorized by section 130005 of the Violent Crime
    Control and Law Enforcement Act of 1994 (Public Law 103-322),

    [[Page 110 STAT. 3009-2]]

    as amended, $48,000,000, to remain available until expended, which shall
    be derived from the Violent Crime Reduction Trust Fund.

                           office of inspector general

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

                         United States Parole Commission

                              salaries and expenses

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

                                Legal Activities

                 salaries and expenses, general legal activities

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

    [[Page 110 STAT. 3009-3]]

    $4,028,000, to be appropriated from the Vaccine Injury Compensation
    Trust Fund.
          For an additional amount for expenses of the Criminal Division
    relating to terrorism, $1,719,000: Provided, That the entire amount is
    designated by Congress as an emergency requirement pursuant to section
    251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit Control Act
    of 1985, as amended.

           violent crime reduction programs, general legal activities

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

                    salaries and expenses, antitrust division

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

                 salaries and expenses, united states attorneys

          For necessary expenses of the Office of the United States
    Attorneys, including intergovernmental agreements, $923,340,000; of
    which not to exceed $2,500,000 shall be available until September 30,
    1998, for the purposes of (1) providing training of personnel of the
    Department of Justice in debt collection, (2) providing services to the
    Department of Justice related to locating debtors and their property,
    such as title searches, debtor skiptracing, asset searches, credit
    reports and other investigations, (3) paying the costs of the Department
    of Justice for the sale of property not covered by the sale proceeds,
    such as auctioneers' fees and expenses, maintenance and protection of
    property and businesses, advertising and title search and surveying
    costs, and (4) paying the costs of processing and tracking debts owed to
    the United States Government: Provided, That of the total amount
    appropriated, not to exceed $8,000 shall be available for official
    reception and representation expenses: Provided further, That not to
    exceed $10,000,000 of those funds available for automated litigation
    support contracts shall remain available until expended: Provided
    further, That $1,900,000 for supervision of the International
    Brotherhood of Teamsters national election, shall remain available until
    expended: Provided further, That in addition to reimbursable full-time
    equivalent workyears available to the Office of the United States
    Attorneys,

    [[Page 110 STAT. 3009-4]]

    not to exceed 8,652 positions and 8,936 full-time equivalent workyears
    shall be supported from the funds appropriated in this Act for the
    United States Attorneys.
          For an additional amount for expenses relating to terrorism and
    security needs, $10,900,000: Provided, That the entire amount is
    designated by Congress as an emergency requirement pursuant to section
    251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit Control Act
    of 1985, as amended.

            violent crime reduction programs, united states attorneys

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

                        united states trustee system fund

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

           salaries and expenses, foreign claims settlement commission

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

              salaries and expenses, united states marshals service

          For necessary expenses of the United States Marshals Service;
    including the acquisition, lease, maintenance, and operation of vehicles
    and aircraft, and the purchase of passenger motor vehicles for police-
    type use, without regard to the general purchase price limitation for
    the current fiscal year, $457,495,000, as authorized by 28 U.S.C.
    561(i); of which not to exceed $6,000 shall be available for official
    reception and representation expenses; and of which

    [[Page 110 STAT. 3009-5]]

    not to exceed $4,000,000 for development, implementation, maintenance
    and support, and training for an automated prisoner information system,
    and $2,200,000 to support the Justice Prisoner and Alien Transportation
    System, shall remain available until expended: Provided, That, with
    respect to the amounts appropriated above, the service of maintaining
    and transporting State, local, or territorial prisoners shall be
    considered a specialized or technical service for purposes of 31 U.S.C.
    6505, and any prisoners so transported shall be considered persons
    (transported for other than commercial purposes) whose presence is
    associated with the performance of a governmental function for purposes
    of 49 U.S.C. 40102: Provided further, That not to exceed 12 permanent
    positions and 12 full-time equivalent workyears and $700,000 shall be
    expended for the Offices of Legislative Affairs and Public Affairs:
    Provided further, That the latter two aforementioned offices shall not
    be augmented by personnel details, temporary transfers of personnel on
    either a reimbursable or nonreimbursable basis or any other type of
    formal or informal transfer or reimbursement of personnel or funds on
    either a temporary or long-term basis.

        violent crime reduction programs, united states marshals service

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

                           federal prisoner detention

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

                         fees and expenses of witnesses

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

    [[Page 110 STAT. 3009-6]]

               salaries and expenses, community relations service

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

                             assets forfeiture fund

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

                         Radiation Exposure Compensation

                             administrative expenses

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

              payment to radiation exposure compensation trust fund

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

                           Interagency Law Enforcement

                     interagency crime and drug enforcement

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

    [[Page 110 STAT. 3009-7]]

                         Federal Bureau of Investigation

                              salaries and expenses

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

                        violent crime reduction programs

          For activities authorized by the Violent Crime Control and Law
    Enforcement Act of 1994 (Public Law 103-322) as amended (``the 1994
    Act''), and the Antiterrorism and Effective Death Penalty

    [[Page 110 STAT. 3009-8]]

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

                   telecommunications carrier compliance fund

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

                                  construction

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

                         Drug Enforcement Administration

                              salaries and expenses

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

    [[Page 110 STAT. 3009-9]]

    $745,388,000, of which not to exceed $1,800,000 for research and
    $15,000,000 for transfer to the Drug Diversion Control Fee Account for
    operating expenses shall remain available until expended, and of which
    not to exceed $4,000,000 for purchase of evidence and payments for
    information, not to exceed $4,000,000 for contracting for automated data
    processing and telecommunications equipment, and not to exceed
    $2,000,000 for laboratory equipment, $4,000,000 for technical equipment,
    and $2,000,000 for aircraft replacement retrofit and parts, shall remain
    available until September 30, 1998; and of which not to exceed $50,000
    shall be available for official reception and representation expenses:
    Provided, That not to exceed 25 permanent positions and 25 full-time
    equivalent workyears and $1,828,000 shall be expended for the Office of
    Legislative Affairs and Public Affairs: Provided further, That the
    latter two aforementioned offices shall not be augmented by personnel
    details, temporary transfers of personnel on either a reimbursable or
    nonreimbursable basis or any other type of formal or informal transfer
    or reimbursement of personnel or funds on either a temporary or long-
    term basis.
          For an additional amount for security measures for domestic and
    foreign Drug Enforcement Administration offices, $5,000,000: Provided,
    That the entire amount is designated by Congress as an emergency
    requirement pursuant to section 251(b)(2)(D)(i) of the Balanced Budget
    and Emergency Deficit Control Act of 1985, as amended.

                        violent crime reduction programs

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

                                  construction

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

                     Immigration and Naturalization Service

                              salaries and expenses

                          (including transfer of funds)

          For expenses, not otherwise provided for, necessary for the
    administration and enforcement of the laws relating to immigration,
    naturalization, and alien registration, including not to exceed $50,000
    to meet unforeseen emergencies of a confidential character, to be
    expended under the direction of, and to be accounted for solely under
    the certificate of, the Attorney General; purchase for police type use
    (not to exceed 2,691, of which 1,711 are for replacement only), without
    regard to the general purchase price limitation

    [[Page 110 STAT. 3009-10]]

    for the current fiscal year, and hire of passenger motor vehicles;
    acquisition, lease, maintenance and operation of aircraft; and research
    related to immigration enforcement; $1,590,159,000 of which not to
    exceed $400,000 for research shall remain available until expended; and
    of which not to exceed $10,000,000 shall be available for costs
    associated with the training program for basic officer training, and
    $5,000,000 is for payments or advances arising out of contractual or
    reimbursable agreements with State and local law enforcement agencies
    while engaged in cooperative activities related to immigration:
    Provided, That none of the funds available to the Immigration and
    Naturalization Service shall be available to pay any employee overtime
    pay in an amount in excess of $30,000 during the calendar year beginning
    January 1, 1997: Provided further, That uniforms may be purchased
    without regard to the general purchase price limitation for the current
    fiscal year: Provided further, That not to exceed $5,000 shall be
    available for official reception and representation expenses: Provided
    further, That none of the funds provided in this or any other Act shall
    be used for the continued operation of the San Clemente and Temecula
    checkpoints unless the checkpoints are open and traffic is being checked
    on a continuous 24-hour basis: Provided further, That the Land
    Border <<NOTE: 8 USC 1356 note.>>  Fee Pilot Project scheduled to end
    September 30, 1996, is extended to September 30, 1999, for projects on
    both the northern and southern borders of the United States, except that
    no pilot program may implement a universal land border crossing toll:
    Provided further, That obligated and unobligated balances available to
    ``Salaries and Expenses, Community Relations Service'' under section
    501(c) of the Refugee Education Assistance Act of 1980 are transferred
    to this account and shall remain available until expended: Provided
    further, That not to exceed 48 permanent positions and 48 full-time
    equivalent workyears and $4,628,000 shall be expended for the Office of
    Legislative Affairs and Public Affairs: Provided further, That the
    latter two aforementioned offices shall not be augmented by personnel
    details, temporary transfers of personnel on either a reimbursable or
    nonreimbursable basis or any other type of formal or informal transfer
    or reimbursement of personnel or funds on either a temporary or long-
    term basis.
          For an additional amount to support the detention and removal of
    aliens with ties to terrorist organizations and expand the detention and
    removal of illegal aliens and enhance the intelligence of the
    Immigration and Naturalization Service, $15,000,000, of which
    $10,000,000 shall be for detention and removal of aliens: Provided, That
    the entire amount is designated by Congress as an emergency requirement
    pursuant to section 251(b)(2)(D)(i) of the Balanced Budget and Emergency
    Deficit Control Act of 1985, as amended.

                        violent crime reduction programs

          For activities authorized by sections 130002, 130005, 130006,
    130007, and 190001(b) of the Violent Crime Control and Law Enforcement
    Act of 1994 (Public Law 103-322), as amended, and section 813 of the
    Antiterrorism and Effective Death Penalty Act of 1996 (Public Law 104-
    132), $500,000,000, to remain available until expended, which will be
    derived from the Violent Crime Reduction Trust Fund, of which
    $66,217,000 shall be for expeditious deportation of denied asylum
    applicants, $317,256,000 shall be for improving border controls, and
    $116,527,000 shall be for detention

    [[Page 110 STAT. 3009-11]]

    and deportation proceedings: Provided, That amounts not required for
    asylum processing provided under the expeditious deportation of denied
    asylum applicants shall also be available for other deportation program
    activities.

                                  construction

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

                              Federal Prison System

                              salaries and expenses

          For expenses necessary for the administration, operation, and
    maintenance of Federal penal and correctional institutions, including
    purchase (not to exceed 836, of which 572 are for replacement only) and
    hire of law enforcement and passenger motor vehicles, and for the
    provision of technical assistance and advice on corrections related
    issues to foreign governments; $2,768,316,000: Provided, That the
    Attorney <<NOTE: 42 USC 250a.>>  General may transfer to the Health
    Resources and Services Administration such amounts as may be necessary
    for direct expenditures by that Administration for medical relief for
    inmates of Federal penal and correctional institutions: Provided
    further, That the Director of the Federal Prison System (FPS), where
    necessary, may enter into contracts with a fiscal agent/fiscal
    intermediary claims processor to determine the amounts payable to
    persons who, on behalf of the FPS, furnish health services to
    individuals committed to the custody of the FPS: Provided further, That
    uniforms may be purchased without regard to the general purchase price
    limitation for the current fiscal year: Provided further, That not to
    exceed $6,000 shall be available for official reception and
    representation expenses: Provided further, That not to exceed
    $90,000,000 for the activation of new facilities shall remain available
    until September 30, 1998: Provided further, That of the amounts provided
    for Contract Confinement, not to exceed $20,000,000 shall remain
    available until expended to make payments in advance for grants,
    contracts and reimbursable agreements, and other expenses authorized by
    section 501(c) of the Refugee Education Assistance Act of 1980, as
    amended, for the care and security in the United States of Cuban and
    Haitian entrants: Provided further, That notwithstanding section 4(d) of
    the Service Contract Act of 1965 (41 U.S.C. 353(d)), FPS may enter into
    contracts and other agreements with private entities for periods of not
    to exceed 3 years and 7 additional option years for the confinement of
    Federal prisoners: Provided further, That the National <<NOTE: 18 USC
    4352 note.>>  Institute of Corrections hereafter shall be included in
    the FPS Salaries and Expenses budget, in the Contract Confinement
    program and shall continue to perform its current functions under 18
    U.S.C. 4351, et seq., with the exception of its grant program and shall
    collect reimbursement for services whenever possible: Provided further,
    That any unexpended balances available to the ``National Institute of
    Corrections'' account shall be credited to and merged with this
    appropriation, to remain available until expended.

    [[Page 110 STAT. 3009-12]]

                        violent crime reduction programs

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

                            buildings and facilities

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

                     federal prison industries, incorporated

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

       limitation on administrative expenses, federal prison industries,
                                  incorporated

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

    [[Page 110 STAT. 3009-13]]

    disposition of facilities and other property belonging to the
    corporation or in which it has an interest.

                           Office of Justice Programs

                               justice assistance

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

                   state and local law enforcement assistance

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

       violent crime reduction programs, state and local law enforcement
                                   assistance

          For assistance (including amounts for administrative costs for
    management and administration, which amounts shall be transferred to and
    merged with the ``Justice Assistance'' account) authorized by the
    Violent Crime Control and Law Enforcement Act of 1994 (Public Law 103-
    322), as amended (``the 1994 Act''); the Omnibus Crime Control and Safe
    Streets Act of 1968, as amended (``the 1968 Act''); and the Victims of
    Child Abuse Act of 1990, as amended

    [[Page 110 STAT. 3009-14]]

    (``the 1990 Act''); $2,036,150,000, to remain available until expended,
    which shall be derived from the Violent Crime Reduction Trust Fund; of
    which $523,000,000 shall be for Local Law Enforcement Block Grants,
    pursuant to H.R. 728 as passed by the House of Representatives on
    February 14, 1995, except that for purposes of this Act, the
    Commonwealth of Puerto Rico shall be considered a ``unit of local
    government'' as well as a ``State'', for the purposes set forth in
    paragraphs (A), (B), (D), (F), and (I) of section 101(a)(2) of H.R. 728
    and for establishing crime prevention programs involving cooperation
    between community residents and law enforcement personnel in order to
    control, detect, or investigate crime or the prosecution of criminals:
    Provided, That no funds provided under this heading may be used as
    matching funds for any other Federal grant program: Provided further,
    That $20,000,000 of this amount shall be for Boys and Girls Clubs in
    public housing facilities and other areas in cooperation with State and
    local law enforcement: Provided further, That funds may also be used to
    defray the costs of indemnification insurance for law enforcement
    officers; of which $50,000,000 shall be for grants to upgrade criminal
    records, as authorized by section 106(b) of the Brady Handgun Violence
    Prevention Act of 1993, as amended, and section 4(b) of the National
    Child Protection Act of 1993; of which $199,000,000 shall be available
    as authorized by section 1001 of title I of the 1968 Act, to carry out
    the provisions of subpart 1, part E of title I of the 1968 Act,
    notwithstanding section 511 of said Act, for the Edward Byrne Memorial
    State and Local Law Enforcement Assistance Programs; of which
    $330,000,000 shall be for the State Criminal Alien Assistance Program,
    as authorized by section 242(j) of the Immigration and Nationality Act,
    as amended; of which $670,000,000 shall be for Violent Offender
    Incarceration and Truth in Sentencing Incentive Grants pursuant to
    subtitle A of title II of the 1994 Act, of which $170,000,000 shall be
    available for payments to States for incarceration of criminal aliens,
    and of which $12,500,000 shall be available for the Cooperative
    Agreement Program: Provided further, That funds made available for
    Violent Offender Incarceration and Truth in Sentencing Incentive Grants
    to the State of California may, at the discretion of the recipient, be
    used for payments for the incarceration of criminal aliens: Provided
    further, That <<NOTE: 42 USC 13703 note.>>  beginning in fiscal year
    1999, and thereafter, no funds shall be available to make grants to a
    State pursuant to section 20103 or section 20104 of the Violent Crime
    Control and Law Enforcement Act of 1994 unless no later than September
    1, 1998, such State has implemented a program of controlled substance
    testing and intervention for appropriate categories of convicted
    offenders during periods of incarceration and criminal justice
    supervision, with sanctions including denial or revocation of release
    for positive controlled substance tests, consistent with guidelines
    issued by the Attorney General; of which $6,000,000 shall be for the
    Court Appointed Special Advocate Program, as authorized by section 218
    of the 1990 Act; of which $1,000,000 shall be for Child Abuse Training
    Programs for Judicial Personnel and Practitioners, as authorized by
    section 224 of the 1990 Act; of which $145,000,000 shall be for Grants
    to Combat Violence Against Women, to States, units of local government,
    and Indian tribal governments, as authorized by section 1001(a)(18) of
    the 1968 Act; of which $33,000,000 shall be for Grants to Encourage
    Arrest Policies to States, units of local

    [[Page 110 STAT. 3009-15]]

    government, and Indian tribal governments, as authorized by section
    1001(a)(19) of the 1968 Act; of which $8,000,000 shall be for Rural
    Domestic Violence and Child Abuse Enforcement Assistance Grants, as
    authorized by section 40295 of the 1994 Act; of which $1,000,000 shall
    be for training programs to assist probation and parole officers who
    work with released sex offenders, as authorized by section 40152(c) of
    the 1994 Act; of which $550,000 shall be for grants for televised
    testimony, as authorized by section 1001(a)(7) of the 1968 Act; of which
    $1,750,000 shall be for national stalker and domestic violence
    reduction, as authorized by section 40603 of the 1994 Act; of which
    $30,000,000 shall be for grants for residential substance abuse
    treatment for State prisoners as authorized by section 1001(a)(17) of
    the 1968 Act; of which $3,000,000 shall be for grants to States and
    units of local government for projects to improve DNA analysis, as
    authorized by section 1001(a)(22) of the 1968 Act; of which $900,000
    shall be for the Missing Alzheimer's Disease Patient Alert Program, as
    authorized by section 240001(c) of the 1994 Act; of which $750,000 shall
    be for Motor Vehicle Theft Prevention Programs, as authorized by section
    220002(h) of the 1994 Act; of which $200,000 shall be for a National
    Baseline Study on Campus Sexual Assault, as authorized by section
    40506(e) of the 1994 Act; of which $30,000,000 shall be for Drug Courts,
    as authorized by title V of the 1994 Act; of which $1,000,000 shall be
    for Law Enforcement Family Support Programs, as authorized by section
    1001(a)(21) of the 1968 Act; and of which $2,000,000 shall be for public
    awareness programs addressing marketing scams aimed at senior citizens,
    as authorized by section 250005(3) of the 1994 Act: Provided further,
    That funds made available in fiscal year 1997 under subpart 1 of part E
    of title I of the Omnibus Crime Control and Safe Streets Act of 1968, as
    amended, may be obligated for programs to assist States in the
    litigation processing of death penalty Federal habeas corpus petitions
    and for drug testing initiatives: Provided further, That any 1996
    balances for these programs shall be transferred to and merged with this
    appropriation: Provided further, That if a unit of local government uses
    any of the funds made available under this title to increase the number
    of law enforcement officers, the unit of local government will achieve a
    net gain in the number of law enforcement officers who perform
    nonadministrative public safety service.

                           weed and seed program fund

          For necessary expenses, including salaries and related expenses of
    the Executive Office for Weed and Seed, to implement ``Weed and Seed''
    program activities, $28,500,000, which shall be derived from
    discretionary grants provided under the Edward Byrne Memorial State and
    Local Law Enforcement Assistance Programs, to remain available until
    expended for intergovernmental agreements, including grants, cooperative
    agreements, and contracts, with State and local law enforcement agencies
    engaged in the investigation and prosecution of violent crimes and drug
    offenses in ``Weed and Seed'' designated communities, and for either
    reimbursements or transfers to appropriation accounts of the Department
    of Justice and other Federal agencies which shall be specified by the
    Attorney General to execute the ``Weed and Seed'' program strategy:
    Provided, That funds designated by Congress through language for other
    Department of Justice appropriation accounts for ``Weed and Seed''

    [[Page 110 STAT. 3009-16]]

    program activities shall be managed and executed by the Attorney General
    through the Executive Office for Weed and Seed: Provided further, That
    the Attorney General may direct the use of other Department of Justice
    funds and personnel in support of ``Weed and Seed'' program activities
    only after the Attorney General notifies the Committees on
    Appropriations of the House of Representatives and the Senate in
    accordance with section 605 of this Act.

                      Community Oriented Policing Services

                        violent crime reduction programs

          For activities authorized by the Violent Crime Control and Law
    Enforcement Act of 1994, Public Law 103-322 (``the 1994 Act'')
    (including administrative costs), $1,400,000,000, to remain available
    until expended, which shall be derived from the Violent Crime Reduction
    Trust Fund, for Public Safety and Community Policing Grants pursuant to
    title I of the 1994 Act: Provided, That not to exceed 186 permanent
    positions and 174 full-time equivalent workyears and $19,800,000 shall
    be expended for program management and administration.
          In addition, for programs of Police Corps education, training and
    service as set forth in sections 200101-200113 of the Violent Crime
    Control and Law Enforcement Act of 1994 (Public Law 103-322),
    $20,000,000, to remain available until expended, which shall be derived
    from the Violent Crime Reduction Trust Fund.

                            juvenile justice programs

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

    [[Page 110 STAT. 3009-17]]

    programs: Provided, That upon the enactment of reauthorization
    legislation for Juvenile Justice Programs under the Juvenile Justice and
    Delinquency Prevention Act of 1974, as amended, funding provided in this
    Act shall from that date be subject to the provisions of that
    legislation and any provisions in this Act that are inconsistent with
    that legislation shall no longer have effect.
          In addition, for grants, contracts, cooperative agreements, and
    other assistance authorized by the Victims of Child Abuse Act of 1990,
    as amended, $4,500,000, to remain available until expended, as
    authorized by sections 214B of the Act.

                         public safety officers benefits

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

                    General Provisions--Department of Justice

          Sec. 101. In addition to amounts otherwise made available in this
    title for official reception and representation expenses, a total of not
    to exceed $45,000 from funds appropriated to the Department of Justice
    in this title shall be available to the Attorney General for official
    reception and representation expenses in accordance with distributions,
    procedures, and regulations established by the Attorney General.
          Sec. 102. Authorities contained in the Department of Justice
    Appropriation Authorization Act, Fiscal Year 1980 (Pub. L. 96-132, 93
    Stat. 1040 (1979)), as amended, shall remain in effect until the
    termination date of this Act or until the effective date of a Department
    of Justice Appropriation Authorization Act, whichever is earlier.
          Sec. 103. None of the funds appropriated by this title shall be
    available to pay for an abortion, except where the life of the mother
    would be endangered if the fetus were carried to term, or in the case of
    rape: Provided, That should this prohibition be declared
    unconstitutional by a court of competent jurisdiction, this section
    shall be null and void.
          Sec. 104. None of the funds appropriated under this title shall be
    used to require any person to perform, or facilitate in any way the
    performance of, any abortion.
          Sec. 105. Nothwing in the preceding section shall remove the
    obligation of the Director of the Bureau of Prisons to provide escort
    services necessary for a female inmate to receive such service outside
    the Federal facility: Provided, That nothing in this section in any way
    diminishes the effect of section 104 intended to address the
    philosophical beliefs of individual employees of the Bureau of Prisons.
          Sec. 106. <<NOTE: 18 USC 3059 note.>>  Notwithstanding any other
    provision of law, not to exceed $10,000,000 of the funds made available
    in this Act may be used to establish and publicize a program under which
    publicly-advertised, extraordinary rewards may be paid, which shall not
    be subject to spending limitations contained in sections 3059 and 3072
    of title 18, United States Code: Provided, That any reward

    [[Page 110 STAT. 3009-18]]

    of $100,000 or more, up to a maximum of $2,000,000, may not be made
    without the personal approval of the President or the Attorney General
    and such approval may not be delegated.
          Sec. 107. Not to exceed 5 percent of any appropriation made
    available for the current fiscal year for the Department of Justice in
    this Act, including those derived from the Violent Crime Reduction Trust
    Fund, may be transferred between such appropriations, but no such
    appropriation, except as otherwise specifically provided, shall be
    increased by more than 10 percent by any such transfers: Provided, That
    any transfer pursuant to this section shall be treated as a
    reprogramming of funds under section 605 of this Act and shall not be
    available for obligation except in compliance with the procedures set
    forth in that section.
          Sec. 108. Section 524(c)(8)(E) of title 28, United States Code, is
    amended by striking the year in the date therein contained and replacing
    the same with ``1996''.
          Sec. 109. (a) Section 1930(a) of title 28, United States Code, is
    amended in paragraph (3), by inserting ``$'' before ``800'', and in
    paragraph (6), by striking everything after ``total less than $15,000;''
    and inserting in lieu thereof: ``$500 for each quarter in which
    disbursements total $15,000 or more but less than $75,000; $750 for each
    quarter in which disbursements total $75,000 or more but less than
    $150,000; $1,250 for each quarter in which disbursements total $150,000
    or more but less than $225,000; $1,500 for each quarter in which
    disbursements total $225,000 or more but less than $300,000; $3,750 for
    each quarter in which disbursements total $300,000 or more but less than
    $1,000,000; $5,000 for each quarter in which disbursements total
    $1,000,000 or more but less than $2,000,000; $7,500 for each quarter in
    which disbursements total $2,000,000 or more but less than $3,000,000;
    $8,000 for each quarter in which disbursements total $3,000,000 or more
    but less than $5,000,000; $10,000 for each quarter in which
    disbursements total $5,000,000 or more. The fee shall be payable on the
    last day of the calendar month following the calendar quarter for which
    the fee is owed.''.
          (b) Section 589a of title 28, United States Code, is amended to
    read as follows:

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

          ``(a) There is hereby established in the Treasury of the United
    States a special fund to be known as the `United States Trustee System
    Fund' (hereinafter in this section referred to as the `Fund'). Monies in
    the Fund shall be available to the Attorney General without fiscal year
    limitation in such amounts as may be specified in appropriations Acts
    for the following purposes in connection with the operations of United
    States trustees--
                ``(1) salaries and related employee benefits;
                ``(2) travel and transportation;
                ``(3) rental of space;
                ``(4) communication, utilities, and miscellaneous computer
            charges;
                ``(5) security investigations and audits;
                ``(6) supplies, books, and other materials for legal
            research;
                ``(7) furniture and equipment;
                ``(8) miscellaneous services, including those obtained by
            contract; and
                ``(9) printing.

    [[Page 110 STAT. 3009-19]]

          ``(b) For the purpose of recovering the cost of services of the
    United States Trustee System, there shall be deposited as offsetting
    collections to the appropriation `United States Trustee System Fund', to
    remain available until expended, the following--
                ``(1) 23.08 percent of the fees collected under section
            1930(a)(1) of this title;
                ``(2) one-half of the fees collected under section
            1930(a)(3) of this title;
                ``(3) one-half of the fees collected under section
            1930(a)(4) of this title;
                ``(4) one-half of the fees collected under section
            1930(a)(5) of this title;
                ``(5) 100 percent of the fees collected under section
            1930(a)(6) of this title;
                ``(6) three-fourths of the fees collected under the last
            sentence of section 1930(a) of this title;
                ``(7) the compensation of trustees received under section
            330(d) of title 11 by the clerks of the bankruptcy courts; and
                ``(8) excess fees collected under section 586(e)(2) of this
            title.
          ``(c) Amounts in the Fund which are not currently needed for the
    purposes specified in subsection (a) shall be kept on deposit or
    invested in obligations of, or guaranteed by, the United States.
          ``(d) The Attorney General shall transmit to the Congress, not
    later than 120 days after the end of each fiscal year, a detailed report
    on the amounts deposited in the Fund and a description of expenditures
    made under this section.
          ``(e) There are authorized to be appropriated to the Fund for any
    fiscal year such sums as may be necessary to supplement amounts
    deposited under subsection (b) for the purposes specified in subsection
    (a).''.
          (c) <<NOTE: 28 USC 589a note.>>  Notwithstanding any other
    provision of law or of this Act, the amendments to 28 U.S.C. 589a made
    by subsection (b) of this section shall take effect upon enactment of
    this Act.
          (d) Section 101(a) of Public Law 104-91, as amended by section 211
    of Public Law <<NOTE: 28 USC 1930 note.>>  104-99, is further amended by
    inserting ``: Provided further, That, notwithstanding any other
    provision of law, the fees under 28 U.S.C. 1930(a)(6) shall accrue and
    be payable from and after January 27, 1996, in all cases (including,
    without limitation, any cases pending as of that date), regardless of
    confirmation status of their plans'' after ``enacted into law''.
          Sec. 110. Public Law 103-414 (108 Stat. 4279) is amended by
    inserting at its conclusion a new title IV, as follows:

           ``TITLE IV--TELECOMMUNICATIONS CARRIER COMPLIANCE PAYMENTS

    ``SEC. 401. <<NOTE: 47 USC 1021.>> DEPARTMENT OF JUSTICE
                TELECOMMUNICATIONS CARRIER COMPLIANCE FUND.
          ``(a) Establishment of Fund.--There is hereby established in the
    United States Treasury a fund to be known as the Department of Justice
    Telecommunications Carrier Compliance Fund (hereafter referred to as
    `the Fund'), which shall be available without fiscal year limitation to
    the Attorney General for making payments to telecommunications carriers,
    equipment manufacturers, and providers of telecommunications support
    services pursuant to section 109 of this Act.

    [[Page 110 STAT. 3009-20]]

          ``(b) Deposits to the Fund.--Notwithstanding any other provision
    of law, any agency of the United States with law enforcement or
    intelligence responsibilities may deposit as offsetting collections to
    the Fund any unobligated balances that are available until expended,
    upon compliance with any Congressional notification requirements for
    reprogrammings of funds applicable to the appropriation from which the
    deposit is to be made.
          ``(c) Termination.--
                ``(1) The Attorney General may terminate the Fund at such
            time as the Attorney General determines that the Fund is no
            longer necessary.
                ``(2) Any balance in the Fund at the time of its termination
            shall be deposited in the General Fund of the Treasury.
                ``(3) A decision of the Attorney General to terminate the
            Fund shall not be subject to judicial review.
          ``(d) Availability of Funds for Expenditure.--Funds shall not be
    available for obligation unless an implementation plan as set forth in
    subsection (e) is submitted to each member of the Committees on the
    Judiciary and Appropriations of both the House of Representatives and
    the Senate and the Congress does not by law block or prevent the
    obligation of such funds. Such funds shall be treated as a reprogramming
    of funds under section 605 of the Department of Commerce, Justice, and
    State, the Judiciary, and Related Agencies Appropriations Act, 1997, and
    shall not be available for obligation or expenditure except in
    compliance with the procedures set forth in that section and this
    section.
          ``(e) Implementation Plan.--The implementation plan shall include:
                ``(1) the law enforcement assistance capability requirements
            and an explanation of law enforcement's recommended interface;
                ``(2) the proposed actual and maximum capacity requirements
            for the number of simultaneous law enforcement communications
            intercepts, pen registers, and trap and trace devices that
            authorized law enforcement agencies may seek to conduct, set
            forth on a county-by-county basis for wireline services and on a
            market service area basis for wireless services, and the
            historical baseline of electronic surveillance activity upon
            which such capacity requirements are based;
                ``(3) a prioritized list of carrier equipment, facilities,
            and services deployed on or before January 1, 1995, to be
            modified by carriers at the request of law enforcement based on
            its investigative needs;
                ``(4) a projected reimbursement plan that estimates the cost
            for the coming fiscal year and for each fiscal year thereafter,
            based on the prioritization of law enforcement needs as outlined
            in (3), of modification by carriers of equipment, facilities and
            services, installed on or before January 1, 1995.
          ``(f) Annual Report to the Congress.--The Attorney General shall
    submit to the Congress each year a report specifically detailing all
    deposits and expenditures made pursuant to this Act in each fiscal year.
    This report shall be submitted to each member of the Committees on the
    Judiciary and Appropriations of both the House of Representatives and
    the Senate, and to the Speaker and minority leader of the House of
    Representatives and to the majority and minority leaders of the Senate,
    no later than 60 days after the end of each fiscal year.''.

    [[Page 110 STAT. 3009-21]]

          Sec. 111. It is the sense of the Congress that the Drug
    Enforcement Administration, together with other appropriate Federal
    agencies, should take such actions as may be necessary to end the
    illegal importation into the United States of Rohypnol (flunitrazepam),
    a drug frequently distributed with the intent to facilitate sexual
    assault and rape.
          Sec. 112. Section 1402 of the Victims of Crime Act of 1984, as
    amended (42 U.S.C. 10601), is amended at subsection (e) by deleting
    ``2'' and inserting ``3'', and at subsection (d) by adding a new
    paragraph (5) as follows:
                ``(5) The Director may set aside up to $500,000 of the
            reserve fund described in paragraph (4) to make supplemental
            grants to United States Attorneys Offices to provide necessary
            assistance to victims of the bombing of the Alfred P. Murrah
            Federal Building in Oklahoma City, to facilitate observation of
            and/or participation by such victims in trial proceedings
            arising therefrom, including, without limitation, provision of
            lodging and travel assistance, and to pay such other, related
            expenses determined to be necessary by the Director.''.
          Sec. 113. Section 732 of Public Law 104-132 (110 Stat. 1303; 18
    U.S.C. 841 note) is amended--
                (1) in subsection (a), by adding at the end the following
            new paragraph:
                ``(3) New prevention technologies.--In addition to the study
            of taggants as provided herein, the Secretary, in consultation
            with the Attorney General, shall concurrently report to the
            Congress on the possible use, and exploitation of technologies
            such as vapor detection devices, computed tomography, nuclear
            quadropole resonance, thermal neutron analysis, pulsed fast-
            neutron analysis, and other technologies upon which
            recommendations to the Congress may be made for further study,
            funding, and use of the same in preventing and solving acts of
            terrorism involving explosive devices.''; and
                (2) by adding at the end the following new subsection:
          ``(f) Special Study.--
                ``(1) In general.--Notwithstanding subsection (a), the
            Secretary of the Treasury shall enter into a contract with the
            National Academy of Sciences (referred to in this section as the
            `Academy') to conduct a study of the tagging of smokeless and
            black powder by any viable technology for purposes of detection
            and identification. The study shall be conducted by an
            independent panel of 5 experts appointed by the Academy.
                ``(2) Study elements.--The study conducted under this
            subsection shall--
                        ``(A) indicate whether the tracer elements, when
                    added to smokeless and black powder--
                              ``(i) will pose a risk to human life or
                          safety;
                              ``(ii) will substantially assist law
                          enforcement officers in their investigative
                          efforts;
                              ``(iii) will impair the quality and
                          performance of the powders (which shall include a
                          broad and comprehensive sampling of all available
                          powders) for their intended lawful use, including,
                          but not limited to the sporting, defense, and
                          handloading uses of the powders, as well as their
                          use in display and lawful consumer pyrotechnics;

    [[Page 110 STAT. 3009-22]]

                              ``(iv) will have a substantially adverse
                          effect on the environment;
                              ``(v) will incur costs which outweigh the
                          benefits of their inclusion, including an
                          evaluation of the probable production and
                          regulatory cost of compliance to the industry, and
                          the costs and effects on consumers, including the
                          effect on the demand for ammunition; and
                              ``(vi) can be evaded, and with what degree of
                          difficulty, by terrorists or terrorist
                          organizations, including evading tracer elements
                          by the use of precursor chemicals to make black or
                          other powders; and
                        ``(B) provide for consultation on the study with
                    Federal, State, and local officials, non-governmental
                    organizations, including all national police
                    organizations, national sporting organizations, and
                    national industry associations with expertise in this
                    area and such other individuals as shall be deemed
                    necessary.
                ``(3) Report and costs.--The study conducted under this
            subsection shall be presented to Congress 12 months after the
            enactment of this subsection and be made available to the
            public, including any data tapes or data used to form such
            recommendations. There are authorized to be appropriated such
            sums as may be necessary to carry out the study.''.
          Sec. 114. (a) Section 524(c)(1) of title 28, United States Code,
    is amended in the first sentence following the second subparagraph (I)
    by deleting ``(C),''.
          (b) Section 524 (c)(8)(A) is amended by deleting ``(C),''.
          Sec. 115. <<NOTE: 28 USC 509 note.>>  Effective with the enactment
    of this Act and in any fiscal year hereafter, under policies established
    by the Attorney General, the Department of Justice may reimburse
    employees who are paid by an appropriation account within the Department
    of Justice and are traveling on behalf of the United States in temporary
    duty status to investigate, prosecute, or litigate (including the
    provision of support therefor) a criminal or civil matter, or for other
    similar special circumstances, for Federal, State, and local taxes
    heretofore and hereafter resulting from any reimbursement of travel
    expenses from an appropriation account within the Department of Justice:
    Provided, That such reimbursement may include an amount equal to all
    income taxes for which the employee would be liable due to such
    reimbursement.
          Sec. 116. Section 524 of title 28, United States Code, is amended
    by adding a new subsection (d) as follows:
          ``(d)(1) The Attorney General may accept, hold, administer, and
    use gifts, devises, and bequests of any property for the purpose of
    aiding or facilitating the work of the Department of Justice.
          ``(2) Gifts, devises, and bequests of money, the proceeds of sale
    or liquidation of any other property accepted hereunder, and any income
    accruing from any property accepted hereunder--
                ``(A) shall be deposited in the Treasury in a separate fund
            and held in trust by the Secretary of the Treasury for the
            benefit of the Department of Justice; and
                ``(B) are hereby appropriated, without fiscal year
            limitation, and shall be disbursed on order of the Attorney
            General.
          ``(3) Upon request of the Attorney General, the Secretary of the
    Treasury may invest and reinvest the fund described herein in public
    debt securities with maturities suitable for the needs

    [[Page 110 STAT. 3009-23]]

    of the fund and bearing interest at rates determined by the Secretary of
    the Treasury, taking into consideration the current average market yield
    on outstanding marketable obligations of the United States or comparable
    maturities.
          ``(4) Evidences of any intangible personal property (other than
    money) accepted hereunder shall be deposited with the Secretary of the
    Treasury, who may hold or liquidate them, except that they shall be
    liquidated upon the request of the Attorney General.
          ``(5) For purposes of federal income, estate, and gift taxes,
    property accepted hereunder shall be considered a gift, devise, or
    bequest to, or for the use of, the United States.''.
          Sec. 117. Section 524(c)(9), of title 28, United States Code, is
    amended to read as follows:
                ``(9)(A) Following the completion of procedures for the
            forfeiture of property pursuant to any law enforced or
            administered by the Department, the Attorney General is
            authorized, in her discretion, to warrant clear title to any
            subsequent purchaser or transferee of such property.
                ``(B) For fiscal year 1997, the Attorney General is
            authorized to transfer, under such terms and conditions as the
            Attorney General shall specify, real or personal property of
            limited or marginal value, to a State or local government
            agency, or its designated contractor or transferee, for use to
            support drug abuse treatment, drug and crime prevention and
            education, housing, job skills, and other community-based public
            health and safety programs. Such transfer shall not create or
            confer any private right of action in any person against the
            United States.''.
          Sec. 118. Section 594(b)(3)(A) of title 28, United States Code, is
    amended in the second sentence by--
                (a) striking ``by 6 months'' and inserting ``for successive
            6-month periods''; and
                (b) striking the phrase ``employee assigned duties under
            subsection (l)(1)(A)(iii) certifies'' and inserting
            ``independent counsel and the division of the court certify'';
                (c) striking ``such employee'' and inserting ``the
            independent counsel'' and ``the division of the court''.
          Sec. 119. This section may <<NOTE: Age Discrimination in
    Employment Amendments of 1996. 29 USC 621 note.>>  be cited as the ``Age
    Discrimination in Employment Amendments of 1996''.

    Subsection 1. Age Discrimination Amendment.

          (a) Repeal of Repealer.--Section 3(b) of the Age Discrimination in
    Employment Amendments of 1986 (29 U.S.C. 623 note) is repealed.
          (b) Exemption.--Section 4(j) of the Age Discrimination in
    Employment Act of 1967 (29 U.S.C. 623(j)), as in effect immediately
    before December 31, 1993--
                (1) is reenacted as such section; and
                (2) as so reenacted, is amended in paragraph (1) by striking
            ``and the individual has attained the age'' and all that follows
            through ``1983, and'' and inserting the following: ``, the
            employer has complied with section 3(d)(2) of the Age
            Discrimination in Employment Amendments of 1996 if the
            individual was discharged after the date described in such
            section, and the individual has attained--

    [[Page 110 STAT. 3009-24]]

                        ``(A) the age of hiring or retirement, respectively,
                    in effect under applicable State or local law on March
                    3, 1983; or
                        ``(B)(i) if the individual was not hired, the age of
                    hiring in effect on the date of such failure or refusal
                    to hire under applicable State or local law enacted
                    after the date of enactment of the Age Discrimination in
                    Employment Amendments of 1996; or
                        ``(ii) if applicable State or local law was enacted
                    after the date of enactment of the Age Discrimination in
                    Employment Amendments of 1996 and the individual was
                    discharged, the higher of--
                              ``(I) the age of retirement in effect on the
                          date of such discharge under such law; and
                              ``(II) age 55; and''.
          (c) Construction.--Nothing <<NOTE: 29 USC 623 note.>> in the
    repeal, reenactment, and amendment made by subsections (a) and (b) shall
    be construed to make lawful the failure or refusal to hire, or the
    discharge of, an individual pursuant to a law that--
                (1) was enacted after March 3, 1983 and before the date of
            enactment of the Age Discrimination in Employment Amendments of
            1996; and
                (2) lowered the age of hiring or retirement, respectively,
            for firefighters or law enforcement officers that was in effect
            under applicable State or local law on March 3, 1983.

    Subsection 2. <<NOTE: 29 USC 623 note.>> Study and Guidelines for
                            Performance Tests.
          (a) Study.--Not later than 3 years after the date of enactment of
    this Act, the Secretary of Health and Human Services, acting through the
    Director of the National Institute for Occupational Safety and Health
    (referred to in this section as the ``Secretary''), shall conduct,
    directly or by contract, a study, and shall submit to the appropriate
    committees of Congress a report based on the results of the study that
    shall include--
                (1) a list and description of all tests available for the
            assessment of abilities important for the completion of public
            safety tasks performed by law enforcement officers and
            firefighters;
                (2) a list of the public safety tasks for which adequate
            tests described in paragraph (1) do not exist;
                (3) a description of the technical characteristics that the
            tests shall meet to be in compliance with applicable Federal
            civil rights law and policies;
                (4) a description of the alternative methods that are
            available for determining minimally acceptable performance
            standards on the tests;
                (5) a description of the administrative standards that
            should be met in the administration, scoring, and score
            interpretation of the tests; and
                (6) an examination of the extent to which the tests are
            cost-effective, are safe, and comply with the Federal civil
            rights law and policies.
          (b) Consultation Requirement; Opportunity for Public Comment.--
                (1) Consultation.--The Secretary shall, during the conduct
            of the study required by subsection (a), consult with--

    [[Page 110 STAT. 3009-25]]

                        (A) the Deputy Administrator of the United States
                    Fire Administration;
                        (B) the Director of the Federal Emergency Management
                    Agency;
                        (C) organizations that represent law enforcement
                    officers, firefighters, and employers of the officers
                    and firefighters; and
                        (D) organizations that represent older individuals.
                (2) Public comment.--Prior to issuing the advisory
            guidelines required in subsection (c), the Secretary shall
            provide an opportunity for public comment on the proposed
            advisory guidelines.
           (c) Advisory Guidelines.--Not later than 4 years after the date
    of enactment of this Act, the Secretary shall develop and issue, based
    on the results of the study required by subsection (a), advisory
    guidelines for the administration and use of physical and mental fitness
    tests to measure the ability and competency of law enforcement officers
    and firefighters to perform the requirements of the jobs of the officers
    and firefighters.
          (d) Job Performance Tests.--
                (1) Identification of tests.--After issuance of the advisory
            guidelines described in subsection (c), the Secretary shall
            issue regulations identifying valid, nondiscriminatory job
            performance tests that shall be used by employers seeking the
            exemption described in section 4(j) of the Age Discrimination in
            Employment Act of 1967 with respect to firefighters or law
            enforcement officers who have attained an age of retirement
            described in such section 4(j).
                (2) Use of tests.--Effective on the date of issuance of the
            regulations described in paragraph (1), any employer seeking
            such exemption with respect to a firefighter or law enforcement
            officer who has attained such age shall provide to each
            firefighter or law enforcement officer who has attained such age
            an annual opportunity to demonstrate physical and mental fitness
            by passing a test described in paragraph (1), in order to
            continue employment.
          (e) Development of Standards for Wellness Programs.--Not later
    than 2 years after the date of enactment of this Act, the Secretary
    shall propose advisory standards for wellness programs for law
    enforcement officers and firefighters.
          (f) Authorization of Appropriations.--There is authorized to be
    appropriated $5,000,000 to carry out this section.

    Subsection 3. <<NOTE: 29 USC 623 note.>> Effective Dates.
          (a) General Effective Date.--Except as provided in subsection (b),
    this title and the amendments made by this title shall take effect on
    the date of enactment of this Act.
          (b) Special Effective Date.--The repeal made by section 2(a) and
    the reenactment made by section 2(b)(1) shall take effect on December
    31, 1993.
          Sec. 120. Section 320935(e) of the Violent Crime Control and Law
    Enforcement Act of 1994 is amended by inserting ``, including all trials
    commenced on or after the effective date of such amendments'' after
    ``such amendments''.

    [[Page 110 STAT. 3009-26]]

          Sec. 121. <<NOTE: Child Pornography Prevention Act of 1996. 18 USC
    2251 note.>>  This section may be cited as the ``Child Pornography
    Prevention Act of 1996''.

    Subsection 1. <<NOTE: 18 USC 2251 note.>> Findings.
          Congress finds that--
                (1) the use of children in the production of sexually
            explicit material, including photographs, films, videos,
            computer images, and other visual depictions, is a form of
            sexual abuse which can result in physical or psychological harm,
            or both, to the children involved;
                (2) where children are used in its production, child
            pornography permanently records the victim's abuse, and its
            continued existence causes the child victims of sexual abuse
            continuing harm by haunting those children in future years;
                (3) child pornography is often used as part of a method of
            seducing other children into sexual activity; a child who is
            reluctant to engage in sexual activity with an adult, or to pose
            for sexually explicit photographs, can sometimes be convinced by
            viewing depictions of other children ``having fun''
            participating in such activity;
                (4) child pornography is often used by pedophiles and child
            sexual abusers to stimulate and whet their own sexual appetites,
            and as a model for sexual acting out with children; such use of
            child pornography can desensitize the viewer to the pathology of
            sexual abuse or exploitation of children, so that it can become
            acceptable to and even preferred by the viewer;
                (5) new photographic and computer imagining technologies
            make it possible to produce by electronic, mechanical, or other
            means, visual depictions of what appear to be children engaging
            in sexually explicit conduct that are virtually
            indistinguishable to the unsuspecting viewer from unretouched
            photographic images of actual children engaging in sexually
            explicit conduct;
                (6) computers and computer imaging technology can be used
            to--
                        (A) alter sexually explicit photographs, films, and
                    videos in such a way as to make it virtually impossible
                    for unsuspecting viewers to identify individuals, or to
                    determine if the offending material was produced using
                    children;
                        (B) produce visual depictions of child sexual
                    activity designed to satisfy the preferences of
                    individual child molesters, pedophiles, and pornography
                    collectors; and
                        (C) alter innocent pictures of children to create
                    visual depictions of those children engaging in sexual
                    conduct;
                (7) the creation or distribution of child pornography which
            includes an image of a recognizable minor invades the child's
            privacy and reputational interests, since images that are
            created showing a child's face or other identifiable feature on
            a body engaging in sexually explicit conduct can haunt the minor
            for years to come;
                (8) the effect of visual depictions of child sexual activity
            on a child molester or pedophile using that material to
            stimulate or whet his own sexual appetites, or on a child where
            the material is being used as a means of seducing or breaking
            down the child's inhibitions to sexual abuse or exploitation,

    [[Page 110 STAT. 3009-27]]

            is the same whether the child pornography consists of
            photographic depictions of actual children or visual depictions
            produced wholly or in part by electronic, mechanical, or other
            means, including by computer, which are virtually
            indistinguishable to the unsuspecting viewer from photographic
            images of actual children;
                (9) the danger to children who are seduced and molested with
            the aid of child sex pictures is just as great when the child
            pornographer or child molester uses visual depictions of child
            sexual activity produced wholly or in part by electronic,
            mechanical, or other means, including by computer, as when the
            material consists of unretouched photographic images of actual
            children engaging in sexually explicit conduct;
                (10)(A) the existence of and traffic in child pornographic
            images creates the potential for many types of harm in the
            community and presents a clear and present danger to all
            children; and
                (B) it inflames the desires of child molesters, pedophiles,
            and child pornographers who prey on children, thereby increasing
            the creation and distribution of child pornography and the
            sexual abuse and exploitation of actual children who are
            victimized as a result of the existence and use of these
            materials;
                (11)(A) the sexualization and eroticization of minors
            through any form of child pornographic images has a deleterious
            effect on all children by encouraging a societal perception of
            children as sexual objects and leading to further sexual abuse
            and exploitation of them; and
                (B) this sexualization of minors creates an unwholesome
            environment which affects the psychological, mental and
            emotional development of children and undermines the efforts of
            parents and families to encourage the sound mental, moral and
            emotional development of children;
                (12) prohibiting the possession and viewing of child
            pornography will encourage the possessors of such material to
            rid themselves of or destroy the material, thereby helping to
            protect the victims of child pornography and to eliminate the
            market for the sexual exploitative use of children; and
                (13) the elimination of child pornography and the protection
            of children from sexual exploitation provide a compelling
            governmental interest for prohibiting the production,
            distribution, possession, sale, or viewing of visual depictions
            of children engaging in sexually explicit conduct, including
            both photographic images of actual children engaging in such
            conduct and depictions produced by computer or other means which
            are virtually indistinguishable to the unsuspecting viewer from
            photographic images of actual children engaging in such conduct.

    Subsection 2. Definitions.

          Section 2256 of title 18, United States Code, is amended--
                (1) in paragraph (5), by inserting before the semicolon the
            following: ``, and data stored on computer disk or by electronic
            means which is capable of conversion into a visual image'';
                (2) in paragraph (6), by striking ``and'';

    [[Page 110 STAT. 3009-28]]

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

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

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

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

        ``(a) Any person who--
                ``(1) knowingly mails, or transports or ships in interstate
            or foreign commerce by any means, including by computer, any
            child pornography;
                ``(2) knowingly receives or distributes--
                        ``(A) any child pornography that has been mailed, or
                    shipped or transported in interstate or foreign commerce
                    by any means, including by computer; or
                        ``(B) any material that contains child pornography
                    that has been mailed, or shipped or transported in
                    interstate or foreign commerce by any means, including
                    by computer;
                ``(3) knowingly reproduces any child pornography for
            distribution through the mails, or in interstate or foreign
            commerce by any means, including by computer;
                ``(4) either--
                        ``(A) in the special maritime and territorial
                    jurisdiction of the United States, or on any land or
                    building owned

    [[Page 110 STAT. 3009-29]]

                    by, leased to, or otherwise used by or under the control
                    of the United States Government, or in the Indian
                    country (as defined in section 1151), knowingly sells or
                    possesses with the intent to sell any child pornography;
                    or
                        ``(B) knowingly sells or possesses with the intent
                    to sell any child pornography that has been mailed, or
                    shipped or transported in interstate or foreign commerce
                    by any means, including by computer, or that was
                    produced using materials that have been mailed, or
                    shipped or transported in interstate or foreign commerce
                    by any means, including by computer; or
                ``(5) either--
                        ``(A) in the special maritime and territorial
                    jurisdiction of the United States, or on any land or
                    building owned by, leased to, or otherwise used by or
                    under the control of the United States Government, or in
                    the Indian country (as defined in section 1151),
                    knowingly possesses any book, magazine, periodical,
                    film, videotape, computer disk, or any other material
                    that contains 3 or more images of child pornography; or
                        ``(B) knowingly possesses any book, magazine,
                    periodical, film, videotape, computer disk, or any other
                    material that contains 3 or more images of child
                    pornography that has been mailed, or shipped or
                    transported in interstate or foreign commerce by any
                    means, including by computer, or that was produced using
                    materials that have been mailed, or shipped or
                    transported in interstate or foreign commerce by any
                    means, including by computer,
            shall be punished as provided in subsection (b).

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

    [[Page 110 STAT. 3009-30]]

          (b) Technical Amendment.--The table of sections for chapter 110 of
    title 18, United States Code, is amended by adding after the item
    relating to section 2252 the following:

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

    Subsection 4. Penalties for Sexual Exploitation of Children.

          Section 2251(d) of title 18, United States Code, is amended to
    read as follows:
          ``(d) Any individual who violates, or attempts or conspires to
    violate, this section shall be fined under this title or imprisoned not
    less than 10 years nor more than 20 years, and both, but if such person
    has one prior conviction under this chapter or chapter 109A, or under
    the laws of any State relating to the sexual exploitation of children,
    such person shall be fined under this title and imprisoned for not less
    than 15 years nor more than 30 years, but if such person has 2 or more
    prior convictions under this chapter or chapter 109A, or under the laws
    of any State relating to the sexual exploitation of children, such
    person shall be fined under this title and imprisoned not less than 30
    years nor more than life. Any organization that violates, or attempts or
    conspires to violate, this section shall be fined under this title.
    Whoever, in the course of an offense under this section, engages in
    conduct that results in the death of a person, shall be punished by
    death or imprisoned for any term of years or for life.''.

    Subsection 5. Material Involving Sexual Exploitation of Minors.

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

    Subsection 6. Privacy Protection Act Amendments.

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

    [[Page 110 STAT. 3009-31]]

            2251, 2251A, 2252, or 2252A of title 18, United States Code'';
            and
                (2) in subsection (b)(1), by inserting before the
            parenthesis at the end the following: ``, or if the offense
            involves the production, possession, receipt, mailing, sale,
            distribution, shipment, or transportation of child pornography,
            the sexual exploitation of children, or the sale or purchase of
            children under section 2251, 2251A, 2252, or 2252A of title 18,
            United States Code''.

    Subsection 7. Amber Hagerman Child <<NOTE: Amber Hagerman Child
                            Protection Act of 1996. 18 USC 2241
                            note.>> Protection Act of 1996.
          (a) Short Title.--This section may be cited as the ``Amber
    Hagerman Child Protection Act of 1996''.
          (b) Aggravated Sexual Abuse of a Minor.--Section 2241(c) of title
    18, United States Code, is amended to read as follows:
          ``(c) With Children.--Whoever crosses a State line with intent to
    engage in a sexual act with a person who has not attained the age of 12
    years, or in the special maritime and territorial jurisdiction of the
    United States or in a Federal prison, knowingly engages in a sexual act
    with another person who has not attained the age of 12 years, or
    knowingly engages in a sexual act under the circumstances described in
    subsections (a) and (b) with another person who has attained the age of
    12 years but has not attained the age of 16 years (and is at least 4
    years younger than that person), or attempts to do so, shall be fined
    under this title, imprisoned for any term of years or life, or both. If
    the defendant has previously been convicted of another Federal offense
    under this subsection, or of a State offense that would have been an
    offense under either such provision had the offense occurred in a
    Federal prison, unless the death penalty is imposed, the defendant shall
    be sentenced to life in prison.''.
          (c) Sexual Abuse of a Minor.--Section 2243(a) of title 18, United
    States Code, is amended by inserting ``crosses a State line with intent
    to engage in a sexual act with a person who has not attained the age of
    12 years, or'' after ``Whoever''.

     Subsection 8. <<NOTE: 18 USC 2251 note.>> Severability.
          If any provision of this Act, including any provision or section
    of the definition of the term child pornography, an amendment made by
    this Act, or the application of such provision or amendment to any
    person or circumstance is held to be unconstitutional, the remainder of
    this Act, including any other provision or section of the definition of
    the term child pornography, the amendments made by this Act, and the
    application of such to any other person or circumstance shall not be
    affected thereby.
          This title may be cited as the ``Department of Justice
    Appropriations Act, 1997''.

    [[Page 110 STAT. 3009-32]]

    TITLE II--DEPARTMENT <<NOTE: Department of Commerce and Related Agencies
    Appropriations Act, 1997.>> OF COMMERCE AND RELATED AGENCIES

                      Trade and Infrastructure Development

                                RELATED AGENCIES

                Office of the United States Trade Representative

                              salaries and expenses

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

                         International Trade Commission

                              salaries and expenses

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

                             DEPARTMENT OF COMMERCE

                       International Trade Administration

                          operations and administration

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

    [[Page 110 STAT. 3009-33]]

    U.S.C. 4912); and that for the purpose of this Act, contributions under
    the provisions of the Mutual Educational and Cultural Exchange Act shall
    include payment for assessments for services provided as part of these
    activities.

                              Export Administration

                          operations and administration

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

                       Economic Development Administration

                    economic development assistance programs

          For grants for economic development assistance as provided by the
    Public Works and Economic Development Act of 1965, as amended, Public
    Law 91-304, and such laws that were in effect immediately before
    September 30, 1982, and for trade adjustment assistance, $328,500,000:
    Provided, That none of the funds appropriated or otherwise made
    available under this heading may be used directly or indirectly for
    attorneys' or consultants' fees in connection with securing grants and
    contracts made by the Economic Development Administration: Provided
    further, That, notwithstanding any other provision of law, the Secretary
    of Commerce

    [[Page 110 STAT. 3009-34]]

    may provide financial assistance for projects to be located on military
    installations closed or scheduled for closure or realignment to grantees
    eligible for assistance under the Public Works and Economic Development
    Act of 1965, as amended, without it being required that the grantee have
    title or ability to obtain a lease for the property, for the useful life
    of the project, when in the opinion of the Secretary of Commerce, such
    financial assistance is necessary for the economic development of the
    area: Provided further, That the Secretary of Commerce may, as the
    Secretary considers appropriate, consult with the Secretary of Defense
    regarding the title to land on military installations closed or
    scheduled for closure or realignment.

                              salaries and expenses

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

                      Minority Business Development Agency

                          minority business development

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

                     Economic and Information Infrastructure

                        Economic and Statistical Analysis

                              salaries and expenses

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

             economics and statistics administration revolving fund

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

    [[Page 110 STAT. 3009-35]]

                              Bureau of the Census

                              salaries and expenses

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

                         periodic censuses and programs

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

           National Telecommunications and Information Administration

                              salaries and expenses

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

            public broadcasting facilities, planning and construction

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

                        information infrastructure grants

          For grants authorized by section 392 of the Communications Act of
    1934, as amended, $21,490,000, to remain available until expended as
    authorized by section 391 of the Act, as amended:

    [[Page 110 STAT. 3009-36]]

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

                           Patent and Trademark Office

                              salaries and expenses

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

                            Technology Administration

           under secretary for technology/office of technology policy

                              salaries and expenses

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

                             Science and Technology

                 National Institute of Standards and Technology

                 scientific and technical research and services

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

                         industrial technology services

          For necessary expenses of the Manufacturing Extension Partnership
    of the National Institute of Standards and Technology, $95,000,000, to
    remain available until expended, of which not to exceed $300,000 may be
    transferred to the ``Working Capital Fund'': Provided, <<NOTE: 15 USC
    278k note.>> That notwithstanding the time limitations imposed by 15
    U.S.C. 278k(c) (1) and (5) on the duration of Federal financial
    assistance that may be awarded by the Secretary of Commerce

    [[Page 110 STAT. 3009-37]]

    to Regional Centers for the transfer of Manufacturing Technology
    (``Centers''), such Federal financial assistance for a Center may
    continue beyond six years and may be renewed for additional periods, not
    to exceed one year, at a rate not to exceed one-third of the Center's
    total annual costs, subject before any such renewal to a positive
    evaluation of the Center and to a finding by the Secretary of Commerce
    that continuation of Federal funding to the Center is in the best
    interest of the Regional Centers for the transfer of Manufacturing
    Technology Program.
          In addition, for necessary expenses of the Advanced Technology
    Program of the National Institute of Standards and Technology,
    $225,000,000, to remain available until expended, of which not to exceed
    $500,000 may be transferred to the ``Working Capital Fund.''

                 National Oceanic and Atmospheric Administration

                      operations, research, and facilities

                          (including transfer of funds)

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

    [[Page 110 STAT. 3009-38]]

                          coastal zone management fund

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

                                  construction

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

                fleet modernization, shipbuilding and conversion

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

                fishing vessel and gear damage compensation fund

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

                          fishermen's contingency fund

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

                          foreign fishing observer fund

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

                      fishing vessel obligations guarantees

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

    [[Page 110 STAT. 3009-39]]

    vessel that will increase the harvesting capacity in any United States
    fishery.

                             General Administration

                              salaries and expenses

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

                           office of inspector general

          For necessary expenses of the Office of Inspector General in
    carrying out the provisions of the Inspector General Act of 1978, as
    amended (5 U.S.C. App. 1-11 as amended by Public Law 100-504),
    $20,140,000.

                 National Institute of Standards and Technology

                       construction of research facilities

                                  (rescission)

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

                 National Oceanic and Atmospheric Administration

                      operations, research, and facilities

                                  (rescission)

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

                   General Provisions--Department of Commerce

          Sec. 201. During the current fiscal year, applicable
    appropriations and funds made available to the Department of Commerce by
    this Act shall be available for the activities specified in the Act of
    October 26, 1949 (15 U.S.C. 1514), to the extent and in the manner
    prescribed by the Act, and, notwithstanding 31 U.S.C. 3324, may be used
    for advanced payments not otherwise authorized only upon the
    certification of officials designated by the Secretary that such
    payments are in the public interest.
          Sec. 202. During the current fiscal year, appropriations made
    available to the Department of Commerce by this Act for salaries and
    expenses shall be available for hire of passenger motor vehicles as
    authorized by 31 U.S.C. 1343 and 1344; services as authorized by 5
    U.S.C. 3109; and uniforms or allowances therefor, as authorized by law
    (5 U.S.C. 5901-5902).
          Sec. 203. None of the funds made available by this Act may be used
    to support the hurricane reconnaissance aircraft and activities that are
    under the control of the United States Air Force or the United States
    Air Force Reserve.
          Sec. 204. None <<NOTE: 13 USC 23 note.>>  of the funds provided in
    this or any previous Act, or hereinafter made available to the
    Department of Commerce, shall be available to reimburse the Unemployment
    Trust Fund or any other fund or account of the Treasury to pay for any
    expenses

    [[Page 110 STAT. 3009-40]]

    paid before October 1, 1992, as authorized by section 8501 of title 5,
    United States Code, for services performed after April 20, 1990, by
    individuals appointed to temporary positions within the Bureau of the
    Census for purposes relating to the 1990 decennial census of population.
          Sec. 205. Not to exceed 5 percent of any appropriation made
    available for the current fiscal year for the Department of Commerce in
    this Act may be transferred between such appropriations, but no such
    appropriation shall be increased by more than 10 percent by any such
    transfers: Provided, That any transfer pursuant to this section shall be
    treated as a reprogramming of funds under section 605 of this Act and
    shall not be available for obligation or expenditure except in
    compliance with the procedures set forth in that section.
          Sec. 206. (a) Should legislation be enacted to dismantle or
    reorganize the Department of Commerce, the Secretary of Commerce, no
    later than 90 days thereafter, shall submit to the Committees on
    Appropriations of the House and the Senate a plan for transferring funds
    provided in this Act to the appropriate successor organizations:
    Provided, That the plan shall include a proposal for transferring or
    rescinding funds appropriated herein for agencies or programs terminated
    under such legislation: Provided further, That such plan shall be
    transmitted in accordance with section 605 of this Act.
          (b) The Secretary of Commerce or the appropriate head of any
    successor organization(s) may use any available funds to carry out
    legislation dismantling or reorganizing the Department of Commerce to
    cover the costs of actions relating to the abolishment, reorganization,
    or transfer of functions and any related personnel action, including
    voluntary separation incentives if authorized by such legislation:
    Provided, That the authority to transfer funds between appropriations
    accounts that may be necessary to carry out this section is provided in
    addition to authorities included under section 205 of this Act: Provided
    further, That use of funds to carry out this section shall be treated as
    a reprogramming of funds under section 605 of this Act and shall not be
    available for obligation or expenditure except in compliance with the
    procedures set forth in that section.
          Sec. 207. Any costs incurred by a Department or agency funded
    under this title resulting from personnel actions taken in response to
    funding reductions included in this title shall be absorbed within the
    total budgetary resources available to such Department or agency:
    Provided, That the authority to transfer funds between appropriations
    accounts as may be necessary to carry out this section is provided in
    addition to authorities included elsewhere in this Act: Provided
    further, That use of funds to carry out this section shall be treated as
    a reprogramming of funds under section 605 of this Act and shall not be
    available for obligation or expenditure except in compliance with the
    procedures set forth in that section.
          Sec. 208. <<NOTE: 16 USC 1851 note.>>  None of the funds
    appropriated under this Act or any other Act henceforth may be used to
    develop new fishery management plans, amendments, or regulations which
    create new individual fishing quota programs (whether such quotas are
    transferable or not) or to implement any such plans, amendments or
    regulations approved by a Regional Fishery Management Council or the
    Secretary after January 4, 1995, until offsetting fees to

    [[Page 110 STAT. 3009-41]]

    pay for the cost of administering such plans, amendments, or regulations
    are expressly authorized under the Magnuson Fishery Conservation and
    Management Act (16 U.S.C. 1801 et seq.). This restriction shall also
    apply to any program relating to the Gulf of Mexico commercial red
    snapper fishery that authorizes the consolidation of licenses, permits
    or endorsements that result in different trip limits for vessels in the
    same class. This restriction shall not apply in any way to the North
    Pacific halibut and sablefish, South Atlantic wreckfish, or the Mid-
    Atlantic surfclam and ocean (including mahogany) quohog individual
    fishing quota programs. The term ``individual fishing quota'' does not
    include a community development quota.
          Sec. 209. The Secretary may award contracts for hydrographic,
    geodetic, and photogrammetric surveying and mapping services in
    accordance with title IX of the Federal Property and Administrative
    Services Act of 1949 (40 U.S.C. 541 et seq.).
          Sec. 210. <<NOTE: 13 USC 11 note.>>  There is hereby established
    the Bureau of the Census Working Capital Fund, which shall be available
    without fiscal year limitation, for expenses and equipment necessary for
    the maintenance and operation of such services and projects as the
    Director of the Census Bureau determines may be performed more
    advantageously when centralized: Provided, That such central services
    shall, to the fullest extent practicable, be used to make unnecessary
    the maintenance of separate like services in the divisions and offices
    of the Bureau: Provided further, That a separate schedule of
    expenditures and reimbursements, and a statement of the current assets
    and liabilities of the Working Capital Fund as of the close of the last
    completed fiscal year, shall be prepared each year: Provided further,
    That notwithstanding 31 U.S.C. 3302, the Working Capital Fund may be
    credited with advances and reimbursements from applicable appropriations
    of the Bureau and from funds of other agencies or entities for services
    furnished pursuant to law: Provided further, That any inventories,
    equipment, and other assets pertaining to the services to be provided by
    such funds, either on hand or on order, less the related liabilities or
    unpaid obligations, and any appropriations made hereafter for the
    purpose of providing capital, shall be used to capitalize the Working
    Capital Fund: Provided further, That the Working Capital Fund shall
    provide for centralized services at rates which will return in full all
    expenses of operation, including depreciation of fund plant and
    equipment, amortization of automated data processing software and
    hardware systems, and an amount necessary to maintain a reasonable
    operating reserve as determined by the Director.
          Sec. 211. <<NOTE: 16 USC 1801 note.>>  (a) Effective 15 days after
    the enactment of the Sustainable Fisheries Act, section 1 of the
    Magnuson Fishery Conservation and Management Act (16 U.S.C. 1801) shall
    be amended to read as follows: ``That this Act may be cited as the
    `Magnuson-Stevens Fishery Conservation and Management Act'.''
          (b) <<NOTE: 16 USC 1801 note.>>  Effective 15 days after the
    enactment of the Sustainable Fisheries Act, all references to the
    Magnuson Fishery Conservation and Management Act shall be redesignated
    as references to the Magnuson-Stevens Fishery Conservation and
    Management Act.
          This title may be cited as the ``Department of Commerce and
    Related Agencies Appropriations Act, 1997''.

    [[Page 110 STAT. 3009-42]]

       TITLE <<NOTE: The Judiciary Appropriations Act, 1997.>>  III--THE
    JUDICIARY

                       Supreme Court of the United States

                              salaries and expenses

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

                        care of the building and grounds

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

             United States Court of Appeals for the Federal Circuit

                              salaries and expenses

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

                   United States Court of International Trade

                              salaries and expenses

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

         Courts of Appeals, District Courts, and Other Judicial Services

                              salaries and expenses

                          (including transfer of funds)

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

    [[Page 110 STAT. 3009-43]]

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

                        violent crime reduction programs

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

                                defender services

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

                        fees of jurors and commissioners

          For fees and expenses of jurors as authorized by 28 U.S.C. 1871
    and 1876; compensation of jury commissioners as authorized by 28 U.S.C.
    1863; and compensation of commissioners appointed in condemnation cases
    pursuant to rule 71A(h) of the Federal Rules of Civil Procedure (28
    U.S.C. Appendix Rule 71A(h)); $67,000,000, to remain available until
    expended: Provided, That

    [[Page 110 STAT. 3009-44]]

    the compensation of land commissioners shall not exceed the daily
    equivalent of the highest rate payable under section 5332 of title 5,
    United States Code.

                                 court security

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

                Administrative Office of the United States Courts

                              salaries and expenses

          For necessary expenses of the Administrative Office of the United
    States Courts as authorized by law, including travel as authorized by 31
    U.S.C. 1345, hire of a passenger motor vehicle as authorized by 31
    U.S.C. 1343(b), advertising and rent in the District of Columbia and
    elsewhere, $49,450,000, of which not to exceed $7,500 is authorized for
    official reception and representation expenses.

                             Federal Judicial Center

                              salaries and expenses

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

                            Judicial Retirement Funds

                        payment to judiciary trust funds

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

                       United States Sentencing Commission

                              salaries and expenses

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

    [[Page 110 STAT. 3009-45]]

                        General Provisions--The Judiciary

          Sec. 301. Appropriations and authorizations made in this title
    which are available for salaries and expenses shall be available for
    services as authorized by 5 U.S.C. 3109.
          Sec. 302. Appropriations made in this title shall be available for
    salaries and expenses of the Special Court established under the
    Regional Rail Reorganization Act of 1973, Public Law 93-236.
          Sec. 303. Not to exceed 5 percent of any appropriation made
    available for the current fiscal year for the Judiciary in this Act may
    be transferred between such appropriations, but no such appropriation,
    except ``Courts of Appeals, District Courts, and other Judicial
    Services, Defender Services'' and ``Courts of Appeals, District Courts,
    and other Judicial Services, Fees of Jurors and Commissioners'', shall
    be increased by more than 10 percent by any such transfers: Provided,
    That any transfer pursuant to this section shall be treated as a
    reprogramming of funds under section 605 of this Act and shall not be
    available for obligation or expenditure except in compliance with the
    procedures set forth in that section.
          Sec. 304. Notwithstanding any other provision of law, the salaries
    and expenses appropriation for district courts, courts of appeals, and
    other judicial services shall be available for official reception and
    representation expenses of the Judicial Conference of the United States:
    Provided, That such available funds shall not exceed $10,000 and shall
    be administered by the Director of the Administrative Office of the
    United States Courts in his capacity as Secretary of the Judicial
    Conference.
          Sec. 305. Section 612(l) of title 28, United States Code, shall be
    amended as follows: strike ``1997'', and insert in lieu thereof
    ``1998''.
          Sec. 306. <<NOTE: 18 USC 3626 note.>>  None of the funds available
    to the Judiciary in fiscal years 1996 and 1997 and hereafter shall be
    available for expenses authorized pursuant to section 802(a) of title
    VIII of section 101(a) of title I of the Omnibus Consolidated
    Rescissions and Appropriations Act of 1996, Public Law 104-134, for
    costs related to the appointment of Special Masters prior to April 26,
    1996.
          Sec. 307. The United States courthouse at 310 West Sixth Street in
    Medford, Oregon, shall be known and designated as the ``James A. Redden
    Federal Courthouse''.
          Any reference in a law, map, regulation, document, paper, or other
    record of the United States to the United States courthouse at 310 West
    Sixth Street in Medford, Oregon, shall be deemed to be a reference to
    the ``James A. Redden Federal Courthouse''.
          This title may be cited as ``The Judiciary Appropriations Act,
    1997''.

    [[Page 110 STAT. 3009-46]]

     TITLE <<NOTE: Department of State and Related Agencies Appropriations
    Act, 1997.>> IV--DEPARTMENT OF STATE AND RELATED AGENCIES

                               DEPARTMENT OF STATE

                        Administration of Foreign Affairs

                        diplomatic and consular programs

          For necessary expenses of the Department of State and the Foreign
    Service not otherwise provided for, including expenses authorized by the
    State Department Basic Authorities Act of 1956, as amended;
    representation to certain international organizations in which the
    United States participates pursuant to treaties, ratified pursuant to
    the advice and consent of the Senate, or specific Acts of Congress;
    acquisition by exchange or purchase of passenger motor vehicles as
    authorized by 31 U.S.C. 1343, 40 U.S.C. 481(c) and 22 U.S.C. 2674; and
    for expenses of general administration; <<NOTE: 8 USC 1351
    note.>> $1,700,450,000: Provided, That notwithstanding section
    140(a)(5), and the second sentence of section 140(a)(3), of the Foreign
    Relations Authorization Act, Fiscal Years 1994 and 1995 (Public Law 103-
    236), not to exceed $150,000,000 of fees may be collected during fiscal
    year 1997 under the authority of section 140(a)(1) of that Act: Provided
    further, That all fees collected under the preceding proviso shall be
    deposited in fiscal year 1997 as an offsetting collection to
    appropriations made under this heading to recover the costs of providing
    consular services and shall remain available until expended: Provided
    further, That in <<NOTE: 22 USC 2695b.>>  fiscal year 1998, a system
    shall be in place that allocates to each department and agency the full
    cost of its presence outside of the United States.
          Of the funds provided under this heading, $24,856,000 shall be
    available only for the Diplomatic Telecommunications Service for
    operation of existing base services and not to exceed $17,230,000 shall
    be available only for the enhancement of the Diplomatic
    Telecommunications Service and shall remain available until expended. Of
    the latter amount, $2,500,000 shall not be made available until
    expiration of the 15 day period beginning on the date when the Secretary
    of State and the Director of the Diplomatic Telecommunications Service
    submit the pilot program report required by section 507 of Public Law
    103-317.
          In addition, not to exceed $700,000 in registration fees collected
    pursuant to section 38 of the Arms Export Control Act, as amended, may
    be used in accordance with section 45 of the State Department Basic
    Authorities Act of 1956 (22 U.S.C. 2717); and in addition not to exceed
    $1,223,000 shall be derived from fees collected from other executive
    agencies for lease or use of facilities located at the International
    Center in accordance with section 4 of the International Center Act
    (Public Law 90-553), as amended; and in addition, as authorized by
    section 5 of such Act $450,000, to be derived from the reserve
    authorized by that section, to be used for the purposes set out in that
    section; and in addition not to exceed $15,000 which shall be derived
    from reimbursements, surcharges, and fees for use of Blair House
    facilities in accordance with section 46 of the State of Department
    Basic Authorities Act of 1956 (22 U.S.C. 2718(a)).
          Notwithstanding section 402 of this Act, not to exceed 20 percent
    of the amounts made available in this Act in the appropriation accounts
    ``Diplomatic and Consular Programs'' and ``Salaries and

    [[Page 110 STAT. 3009-47]]

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

                              salaries and expenses

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

                             capital investment fund

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

                           office of inspector general

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

                            representation allowances

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

                  protection of foreign missions and officials

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

               security and maintenance of united states missions

          For necessary expenses for carrying out the Foreign Service
    Buildings Act of 1926, as amended (22 U.S.C. 292-300), and the

    [[Page 110 STAT. 3009-48]]

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

               emergencies in the diplomatic and consular service

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

                       repatriation loans program account

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

                   payment to the american institute in taiwan

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

          payment to the foreign service retirement and disability fund

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

    [[Page 110 STAT. 3009-49]]

    International Organizations and Confer <<NOTE: 22 USC 269a note.>> ences

                  contributions to international organizations

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

             contributions for international peacekeeping activities

          For necessary expenses to pay assessed and other expenses of
    international peacekeeping activities directed to the maintenance

    [[Page 110 STAT. 3009-50]]

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

                            International Commissions

          For necessary <<NOTE: 22 USC 269a note.>>  expenses, not otherwise
    provided for, to meet obligations of the United States arising under
    treaties, or specific Acts of Congress, as follows:

      international boundary and water commission, united states and mexico

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

                              salaries and expenses

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

    [[Page 110 STAT. 3009-51]]

                                  construction

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

                  american sections, international commissions

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

                       international fisheries commissions

          For necessary expenses for international fisheries commissions,
    not otherwise provided for, as authorized by law, $14,549,000: Provided,
    That the United States' share of such expenses may be advanced to the
    respective commissions, pursuant to 31 U.S.C. 3324.

                                      Other

                         payment to the asia foundation

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

                                RELATED AGENCIES

                       Arms Control and Disarmament Agency

                     arms control and disarmament activities

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

                        United States Information Agency

                              salaries and expenses

          For expenses, not otherwise provided for, necessary to enable the
    United States Information Agency, as authorized by the Mutual
    Educational and Cultural Exchange Act of 1961, as amended (22 U.S.C.
    2451 et seq.), the United States Information and Educational Exchange
    Act of 1948, as amended (22 U.S.C. 1431 et seq.), and Reorganization
    Plan No. 2 of 1977 (91 Stat. 1636), to carry out international
    communication, educational and cultural activities; and to carry out
    related activities authorized by law, including employment, without
    regard to civil service and classification laws,

    [[Page 110 STAT. 3009-52]]

    of persons on a temporary basis (not to exceed $700,000 of this
    appropriation), as authorized by section 801 of such Act of 1948 (22
    U.S.C. 1471), and entertainment, including official receptions, within
    the United States, not to exceed $25,000 as authorized by section 804(3)
    of such Act of 1948 (22 U.S.C. 1474(3)); $440,000,000: Provided, That
    not to exceed $1,400,000 may be used for representation abroad as
    authorized by section 302 of such Act of 1948 (22 U.S.C. 1452) and
    section 905 of the Foreign Service Act of 1980 (22 U.S.C. 4085):
    Provided further, That not to exceed $7,615,000, to remain available
    until expended, may be credited to this appropriation from fees or other
    payments received from or in connection with English teaching, library,
    motion pictures, and publication programs as authorized by section 810
    of such Act of 1948 (22 U.S.C. 1475e) and, notwithstanding any other
    law, fees from student advising and counseling: Provided further; That
    not to exceed $1,100,000 to remain available until expended may be used
    to carry out projects involving security construction and related
    improvements for agency facilities not physically located together with
    Department of State facilities abroad.
          For an additional amount for necessary expenses relating to
    security, $1,375,000: Provided, That the entire amount is designated by
    Congress as an emergency requirement pursuant to section 251(b)(2)(D)(i)
    of the Balanced Budget and Emergency Deficit Control Act of 1985, a
    amended.

                                 technology fund

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

                   educational and cultural exchange programs

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

                eisenhower exchange fellowship program trust fund

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

    [[Page 110 STAT. 3009-53]]

    profit Organizations), including the restrictions on compensation for
    personal services.

                        israeli arab scholarship program

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

                      international broadcasting operations

          For expenses necessary to enable the United States Information
    Agency, as authorized by the United States Information and Educational
    Exchange Act of 1948, as amended, the United States International
    Broadcasting Act of 1994, as amended, and Reorganization Plan No. 2 of
    1977, to carry out international communication activities; $325,000,000,
    of which not to exceed $16,000 may be used for official receptions
    within the United States as authorized by section 804(3) of such Act of
    1948 (22 U.S.C. 1474(3)), not to exceed $35,000 may be used for
    representation abroad as authorized by section 302 of such Act of 1948
    (22 U.S.C. 1452) and section 905 of the Foreign Service Act of 1980 (22
    U.S.C. 4085), and not to exceed $39,000 may be used for official
    reception and representation expenses of Radio Free Europe/Radio
    Liberty; and in addition, not to exceed $250,000 from fees as authorized
    by section 810 of such Act of 1948 (22 U.S.C. 1475e), to remain
    available until expended for carrying out authorized purposes; and in
    addition, notwithstanding any other provision of law, not to exceed
    $1,000,000 in monies received (including receipts from advertising, if
    any) by or for the use of the United States Information Agency from or
    in connection with broadcasting resources owned by or on behalf of the
    Agency, to be available until expended for carrying out authorized
    purposes.

                              broadcasting to cuba

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

                               radio construction

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

    [[Page 110 STAT. 3009-54]]

                                east-west center

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

                               north/south center

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

                        national endowment for democracy

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

          General Provisions--Department of State and Related Agencies

          Sec. 401. Funds appropriated under this title shall be available,
    except as otherwise provided, for allowances and differentials as
    authorized by subchapter 59 of 5 U.S.C.; for services as authorized by 5
    U.S.C. 3109; and hire of passenger transportation pursuant to 31 U.S.C.
    1343(b).
          Sec. 402. Not to exceed 5 percent of any appropriation made
    available for the current fiscal year for the Department of State in
    this Act may be transferred between such appropriations, but no such
    appropriation, except as otherwise specifically provided, shall be
    increased by more than 10 percent by any such transfers: Provided, That
    not to exceed 5 percent of any appropriation made available for the
    current fiscal year for the United States Information Agency in this Act
    may be transferred between such appropriations, but no such
    appropriation, except as otherwise specifically provided, shall be
    increased by more than 10 percent by any such transfers: Provided
    further, That any transfer pursuant to this section shall be treated as
    a reprogramming of funds under section 605 of this Act and shall not be
    available for obligation or expenditure except in compliance with the
    procedures set forth in that section.
          Sec. 403. Funds hereafter appropriated <<NOTE: 22 USC 268c.>>  or
    otherwise made available under this Act or any other Act may be expended
    for compensation of the United States Commissioner of the International
    Boundary Commission, United States and Canada, only for actual hours
    worked by such Commissioner.
          Sec. 404. Funds appropriated by this Act for the United States
    Information Agency, the Arms Control and Disarmament Agency,

    [[Page 110 STAT. 3009-55]]

    and the Department of State may be obligated and expended
    notwithstanding section 701 of the United States Information and
    Educational Exchange Act of 1948 and section 313 of the Foreign
    Relations Authorization Act, Fiscal Years 1994 and 1995, section 53 of
    the Arms Control and Disarmament Act, and section 15 of the State
    Department Basic Authorities Act of 1956.
          Sec. 405. Any costs incurred by a Department or agency funded
    under this title resulting from personnel actions taken in response to
    funding reductions included in this title shall be absorbed within the
    total budgetary resources available to such Department or agency:
    Provided, That the authority to transfer funds between appropriations
    accounts as may be necessary to carry out this section is provided in
    addition to authorities included elsewhere in this Act: Provided
    further, That use of funds to carry out this section shall be treated as
    a reprogramming of funds under section 605 of this Act and shall not be
    available for obligation or expenditure except in compliance with the
    procedures set forth in that section.
          Sec. 406. Starting sixty days after enactment of this Act, none of
    the funds made available by this Act may be made available to support
    the activities of the Standing Consultative Commission (SCC) unless the
    President provides to the Congress a report containing a detailed
    analysis of whether the Memorandum of Understanding on Succession and
    the Agreed Statement regarding Demarcation agreed to by the Standing
    Consultative Commission on June 24, 1996, which was reaffirmed by
    Secretary of State Warren Christopher and Minister of Foreign Affairs
    Evgeny Primakov on September 23, 1996, represent substantive changes to
    the Anti-Ballistic Missile Treaty of 1972 and whether these agreements
    will require the advice and consent of the Senate of the United States.
          Sec. 407. Section 1 of the Act of June 4, 1920 (41 Stat. 750; 22
    U.S.C. 214) is amended by--
                (1) inserting before the period at the end of the first
            sentence the following: ``; except that the Secretary of State
            may by regulation authorize State officials or the United States
            Postal Service to collect and retain the execution fee for each
            application for a passport accepted by such officials or by that
            Service''; and
                (2) striking the second sentence.
          This title may be cited as the ``Department of State and Related
    Agencies Appropriations Act, 1997''.

                            TITLE V--RELATED AGENCIES

                          DEPARTMENT OF TRANSPORTATION

                             Maritime Administration

                        operating-differential subsidies

                       (liquidation of contract authority)

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

    [[Page 110 STAT. 3009-56]]

                            maritime security program

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

                             operations and training

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

               maritime guaranteed loan (title xi) program account

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

               administrative provisions--maritime administration

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

          Commission for the Preservation of America's Heritage Abroad

                              salaries and expenses

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

    [[Page 110 STAT. 3009-57]]

                           Commission on Civil Rights

                              salaries and expenses

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

                        Commission on Immigration Reform

                              salaries and expenses

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

                Commission on Security and Cooperation in Europe

                              salaries and expenses

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

                     Equal Employment Opportunity Commission

                              salaries and expenses

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

                        Federal Communications Commission

                              salaries and expenses

          For necessary expenses of the Federal Communications Commission,
    as authorized by law, including uniforms and allowances therefor, as
    authorized by 5 U.S.C. 5901-02; not to exceed $600,000 for land and
    structure; not to exceed $500,000 for improvement and care of grounds
    and repair to buildings; not to exceed

    [[Page 110 STAT. 3009-58]]

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

                           Federal Maritime Commission

                              salaries and expenses

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

                            Federal Trade Commission

                              salaries and expenses

          For necessary expenses of the Federal Trade Commission, including
    uniforms or allowances therefor, as authorized by 5 U.S.C. 5901-5902;
    services as authorized by 5 U.S.C. 3109; hire of passenger motor
    vehicles; and not to exceed $2,000 for official reception and
    representation expenses; $85,930,000:Provided, That not to exceed
    $300,000 shall be available for use to contract with a person or persons
    for collection services in accordance with the terms of 31 U.S.C. 3718,
    as amended: Provided further, That notwithstanding any other provision
    of law, not to exceed $58,905,000 of offsetting collections derived from
    fees collected for premerger notification filings under the Hart-Scott-
    Rodino Antitrust Improvements Act of 1976 (15 U.S.C. 18(a)) shall be
    retained and used for necessary expenses in this appropriation, and
    shall remain available until expended: Provided further, That the sum
    herein appropriated from the General Fund shall be reduced as such
    offsetting collections are received during fiscal year 1997, so as to
    result in a final fiscal year 1997 appropriation from the General Fund
    estimated at not more than $27,025,000, to remain available until
    expended: Provided further, That any fees received in excess of
    $58,905,000 in fiscal year 1997 shall remain available until expended,
    but shall not be available for obligation until October 1, 1997:
    Provided further, That none of the funds made available to the Federal
    Trade Commission shall be available for obligation for expenses

    [[Page 110 STAT. 3009-59]]

    authorized by section 151 of the Federal Deposit Insurance Corporation
    Improvement Act of 1991 (Public Law 102-242, 105 Stat. 2282-2285).

                        Gambling Impact Study Commission

                              salaries and expenses

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

                           Legal Services Corporation

                    payment to the legal services corporation

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

              administrative provisions--legal services corporation

          Sec. 501. (a) Continuation of Competitive Selection Process.--None
    of the funds appropriated in this Act to the Legal Services Corporation
    may be used to provide financial assistance to any person or entity
    except through a competitive selection process conducted in accordance
    with regulations promulgated by the Corporation in accordance with the
    criteria set forth in subsections (c), (d), and (e) of section 503 of
    Public Law 104-134 (110 Stat. 1321-52 et seq.).
          (b) Inapplicability of Noncompetitive Procedures.--For purposes of
    the funding provided in this Act, rights under sections 1007(a)(9) and
    1011 of the Legal Services Corporation Act (42 U.S.C. 2996f(a)(9) and 42
    U.S.C. 2996j) shall not apply.
          Sec. 502. (a) Continuation of Requirements and Restrictions.--None
    of the funds appropriated in this Act to the Legal Services Corporation
    shall be expended for any purpose prohibited or limited by, or contrary
    to any of the provisions of--
                (1) sections 501, 502, 505, 506, and 507 of Public Law 104-
            134 (110 Stat. 1321-51 et seq.), and all funds appropriated in
            this Act to the Legal Services Corporation shall be subject to
            the same terms and conditions as set forth in such sections,
            except that all references in such sections to 1995 and 1996
            shall be deemed to refer instead to 1996 and 1997, respectively;
            and
                (2) section 504 of Public Law 104-134 (110 Stat. 1321-53 et
            seq.), and all funds appropriated in this Act to the Legal
            Services Corporation shall be subject to the same terms and
            conditions set forth in such section, except that--
                        (A) subsection (c) of such section 504 shall not
                    apply;
                        (B) paragraph (3) of section 508(b) of Public Law
                    104-134 (110 Stat. 1321-58) shall apply with respect to
                    the requirements of subsection (a)(13) of such section
                    504, except that all references in such section 508(b)
                    to the

    [[Page 110 STAT. 3009-60]]

                    date of enactment shall be deemed to refer to April 26,
                    1996; and
                        (C) subsection (a)(11) of such section 504 shall not
                    be construed to prohibit a recipient from using funds
                    derived from a source other than the Corporation to
                    provide related legal assistance to--
                              (i) an alien who has been battered or
                          subjected to extreme cruelty in the United States
                          by a spouse or a parent, or by a member of the
                          spouse's or parent's family residing in the same
                          household as the alien and the spouse or parent
                          consented or acquiesced to such battery or
                          cruelty; or
                              (ii) an alien whose child has been battered or
                          subjected to extreme cruelty in the United States
                          by a spouse or parent of the alien (without the
                          active participation of the alien in the battery
                          or extreme cruelty), or by a member of the
                          spouse's or parent's family residing in the same
                          household as the alien and the spouse or parent
                          consented or acquiesced to such battery or
                          cruelty, and the alien did not actively
                          participate in such battery or cruelty.
          (b) Definitions.--For purposes of subsection (a)(2)(C):
                (1) The term ``battered or subjected to extreme cruelty''
            has the meaning given such term under regulations issued
            pursuant to subtitle G of the Violence Against Women Act of 1994
            (Pub. L. 103-322; 108 Stat. 1953).
                (2) The term ``related legal assistance'' means legal
            assistance directly related to the prevention of, or obtaining
            of relief from, the battery or cruelty described in such
            subsection.
          Sec. 503. (a) Continuation of Audit Requirements.--The
    requirements of section 509 of Public Law 104-134 (110 Stat. 1321-58 et
    seq.), other than subsection (l) of such section, shall apply during
    fiscal year 1997.
          (b) Requirement of Annual Audit.--An annual audit of each person
    or entity receiving financial assistance from the Legal Services
    Corporation under this Act shall be conducted during fiscal year 1997 in
    accordance with the requirements referred to in subsection (a).

                            Marine Mammal Commission

                              salaries and expenses

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

                      National Bankruptcy Review Commission

                              salaries and expenses

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

    [[Page 110 STAT. 3009-61]]

                           Ounce of Prevention Council

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

                       Securities and Exchange Commission

                              salaries and expenses

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

    [[Page 110 STAT. 3009-62]]

    during the period beginning on January 1, 1997, and ending at the close
    of August 31, 1997: Provided further, That the total amount appropriated
    for fiscal year 1997 under this heading shall be reduced as all such
    offsetting fees are deposited to this appropriation so as to result in a
    final total fiscal year 1997 appropriation from the General Fund
    estimated at not more than $37,778,000: Provided further, That any such
    fees collected in excess of $222,622,000 shall remain available until
    expended but shall not be available for obligation until October 1,
    1997.

                          Small Business Administration

                              salaries and expenses

          For necessary expenses, not otherwise provided for, of the Small
    Business Administration as authorized by Public Law 103-403, including
    hire of passenger motor vehicles as authorized by 31 U.S.C. 1343 and
    1344, and not to exceed $3,500 for official reception and representation
    expenses, $223,547,000, of which $1,000,000 shall only be available for
    obligation and expenditure for projects jointly developed, implemented
    and administered with the Minority Business Development Agency of the
    Department of Commerce: Provided, That the Administrator is authorized
    to charge fees to cover the cost of publications developed by the Small
    Business Administration, and certain loan servicing activities: Provided
    further, That notwithstanding 31 U.S.C. 3302, revenues received from all
    such activities shall be credited to this account, to be available for
    carrying out these purposes without further appropriations: Provided
    further, That $75,500,000 shall be available to fund grants for
    performance in fiscal year 1997 or fiscal year 1998 as authorized by
    section 21 of the Small Business Act, as amended. In addition, for
    expenses not otherwise provided for, of the Small Business
    Administration, $11,500,000, of which: $3,000,000 shall be available for
    a grant to continue the WVHTC Foundation outreach program to assist
    small business development; $7,000,000 shall be available for a grant to
    the Center for Rural Development in Somerset, Kentucky, for small
    business and rural technology development assistance; $1,000,000 shall
    be available for a grant to Indiana State University for the renovation
    and equipping of a training facility, to assist in creating small
    business and economic development opportunities; and $500,000 shall be
    available for a continuation grant to the Center for Entrepreneurial
    Opportunity in Greensburg, Pennsylvania, to provide for small business
    consulting and assistance.

                           office of inspector general

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

                         business loans program account

          For the cost of direct loans, $1,691,000, and for the cost of
    guaranteed loans, $182,017,000, as authorized by 15 U.S.C. 631 note, of
    which $2,317,000, to be available until expended, shall be for the
    Microloan Guarantee Program, and of which $40,510,000

    [[Page 110 STAT. 3009-63]]

    shall remain available until September 30, 1998: Provided, That such
    costs, including the cost of modifying such loans, shall be as defined
    in section 502 of the Congressional Budget Act of 1974: Provided
    further, That during fiscal year 1997, commitments to guarantee loans
    under section 503 of the Small Business Investment Act of 1958, as
    amended, shall not exceed the amount of financings authorized under
    section 20(n)(2)(B) of the Small Business Act, as amended.
          In addition, for administrative expenses to carry out the direct
    and guaranteed loan programs, $94,000,000, which may be transferred to
    and merged with the appropriations for Salaries and Expenses.

                         disaster loans program account

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

                      surety bond guarantees revolving fund

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

             administrative provision--small business administration

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

                             State Justice Institute

                              salaries and expenses

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

    [[Page 110 STAT. 3009-64]]

                          TITLE VI--GENERAL PROVISIONS

          Sec. 601. No part of any appropriation contained in this Act shall
    be used for publicity or propaganda purposes not authorized by the
    Congress.
          Sec. 602. No part of any appropriation contained in this Act shall
    remain available for obligation beyond the current fiscal year unless
    expressly so provided herein.
          Sec. 603. The expenditure of any appropriation under this Act for
    any consulting service through procurement contract, pursuant to 5
    U.S.C. 3109, shall be limited to those contracts where such expenditures
    are a matter of public record and available for public inspection,
    except where otherwise provided under existing law, or under existing
    Executive order issued pursuant to existing law.
          Sec. 604. If any provision of this Act or the application of such
    provision to any person or circumstances shall be held invalid, the
    remainder of the Act and the application of each provision to persons or
    circumstances other than those as to which it is held invalid shall not
    be affected thereby.
          Sec. 605. (a) None of the funds provided under this Act, or
    provided under previous appropriations Acts to the agencies funded by
    this Act that remain available for obligation or expenditure in fiscal
    year 1997, or provided from any accounts in the Treasury of the United
    States derived by the collection of fees available to the agencies
    funded by this Act, shall be available for obligation or expenditure
    through a reprogramming of funds which (1) creates new programs; (2)
    eliminates a program, project, or activity; (3) increases funds or
    personnel by any means for any project or activity for which funds have
    been denied or restricted; (4) relocates an office or employees; (5)
    reorganizes offices, programs, or activities; or (6) contracts out or
    privatizes any functions, or activities presently performed by Federal
    employees; unless the Appropriations Committees of both Houses of
    Congress are notified fifteen days in advance of such reprogramming of
    funds.
          (b) None of the funds provided under this Act, or provided under
    previous appropriations Acts to the agencies funded by this Act that
    remain available for obligation or expenditure in fiscal year 1997, or
    provided from any accounts in the Treasury of the United States derived
    by the collection of fees available to the agencies funded by this Act,
    shall be available for obligation or expenditure for activities,
    programs, or projects through a reprogramming of funds in excess of
    $500,000 or 10 percent, whichever is less, that (1) augments existing
    programs, projects, or activities; (2) reduces by 10 percent funding for
    any existing program, project, or activity, or numbers of personnel by
    10 percent as approved by Congress; or (3) results from any general
    savings from a reduction in personnel which would result in a change in
    existing programs, activities, or projects as approved by Congress;
    unless the Appropriations Committees of both Houses of Congress are
    notified fifteen days in advance of such reprogramming of funds.
          Sec. 606. None of the funds made available in this Act may be used
    for the construction, repair (other than emergency repair), overhaul,
    conversion, or modernization of vessels for the National Oceanic and
    Atmospheric Administration in shipyards located outside of the United
    States.

    [[Page 110 STAT. 3009-65]]

          Sec. 607. (a) Purchase of American-Made Equipment and Products.--
    It is the sense of the Congress that, to the greatest extent
    practicable, all equipment and products purchased with funds made
    available in this Act should be American-made.
          (b) Notice Requirement.--In providing financial assistance to, or
    entering into any contract with, any entity using funds made available
    in this Act, the head of each Federal agency, to the greatest extent
    practicable, shall provide to such entity a notice describing the
    statement made in subsection (a) by the Congress.
          (c) Prohibition of Contracts With Persons Falsely Labeling
    Products as Made in America.--If it has been finally determined by a
    court or Federal agency that any person intentionally affixed a label
    bearing a ``Made in America'' inscription, or any inscription with the
    same meaning, to any product sold in or shipped to the United States
    that is not made in the United States, the person shall be ineligible to
    receive any contract or subcontract made with funds made available in
    this Act, pursuant to the debarment, suspension, and ineligibility
    procedures described in sections 9.400 through 9.409 of title 48, Code
    of Federal Regulations.
          Sec. 608. None of the funds made available in this Act may be used
    to implement, administer, or enforce any guidelines of the Equal
    Employment Opportunity Commission covering harassment based on religion,
    when it is made known to the Federal entity or official to which such
    funds are made available that such guidelines do not differ in any
    respect from the proposed guidelines published by the Commission on
    October 1, 1993 (58 Fed. Reg. 51266).
          Sec. 609. None of the funds appropriated or otherwise made
    available by this Act may be obligated or expended to pay for any cost
    incurred for (1) opening or operating any United States diplomatic or
    consular post in the Socialist Republic of Vietnam that was not
    operating on July 11, 1995; (2) expanding any United States diplomatic
    or consular post in the Socialist Republic of Vietnam that was operating
    on July 11, 1995; or (3) increasing the total number of personnel
    assigned to United States diplomatic or consular posts in the Socialist
    Republic of Vietnam above the levels existing on July 11, 1995, unless
    the President certifies within 60 days, based upon all information
    available to the United States Government that the Government of the
    Socialist Republic of Vietnam is cooperating in full faith with the
    United States in the following four areas:
                (1) Resolving discrepancy cases, live sightings and field
            activities,
                (2) Recovering and repatriating American remains,
                (3) Accelerating efforts to provide documents that will help
            lead to fullest possible accounting of POW/MIA's.
                (4) Providing further assistance in implementing trilateral
            investigations with Laos.
          Sec. 610. None of the funds made available by this Act may be used
    for any United Nations undertaking when it is made known to the Federal
    official having authority to obligate or expend such funds (1) that the
    United Nations undertaking is a peacekeeping mission, (2) that such
    undertaking will involve United States Armed Forces under the command or
    operational control of a foreign national, and (3) that the President's
    military advisors have not submitted to the President a recommendation
    that such involvement is in the national security interests of the
    United States and the

    [[Page 110 STAT. 3009-66]]

    President has not submitted to the Congress such a recommendation.
          Sec. 611. None of the funds made available in this Act shall be
    used to provide the following amenities or personal comforts in the
    Federal prison system--
                (1) in-cell television viewing except for prisoners who are
            segregated from the general prison population for their own
            safety;
                (2) the viewing of R, X, and NC-17 rated movies, through
            whatever medium presented;
                (3) any instruction (live or through broadcasts) or training
            equipment for boxing, wrestling, judo, karate, or other martial
            art, or any bodybuilding or weightlifting equipment of any sort;
                (4) possession of in-cell coffee pots, hot plates, or
            heating elements; or
                (5) the use or possession of any electric or electronic
            musical instrument.
          Sec. 612. None of the funds made available in title II for the
    National Oceanic and Atmospheric Administration (NOAA) under the heading
    ``Fleet Modernization, Shipbuilding and Conversion'' may be used to
    implement sections 603, 604, and 605 of Public Law 102-567: Provided,
    That NOAA may develop a modernization plan for its fisheries research
    vessels that takes fully into account opportunities for contracting for
    fisheries surveys.
          Sec. 613. Any costs incurred by a Department or agency funded
    under this Act resulting from personnel actions taken in response to
    funding reductions included in this Act shall be absorbed within the
    total budgetary resources available to such Department or agency:
    Provided, That the authority to transfer funds between appropriations
    accounts as may be necessary to carry out this section is provided in
    addition to authorities included elsewhere in this Act: Provided
    further, That use of funds to carry out this section shall be treated as
    a reprogramming of funds under section 605 of this Act and shall not be
    available for obligation or expenditure except in compliance with the
    procedures set forth in that section.
          Sec. 614. None of the funds made available in this Act to the
    Federal Bureau of Prisons may be used to distribute or make available
    any commercially published information or material to a prisoner when it
    is made known to the Federal official having authority to obligate or
    expend such funds that such information or material is sexually explicit
    or features nudity.
          Sec. 615. Of the funds appropriated in this Act under the heading
    ``OFFICE OF JUSTICE PROGRAMS--state and local law enforcement
    assistance'' and ``Community Oriented Policing Services Program'', not
    more than ninety percent of the amount to be awarded to an entity under
    the Local Law Enforcement Block Grant and part Q of title I of the
    Omnibus Crime Control and Safe Streets Act of 1968 shall be made
    available to such an entity when it is made known to the Federal
    official having authority to obligate or expend such funds that the
    entity that employs a public safety officer (as such term is defined in
    section 1204 of title I of the Omnibus Crime Control and Safe Streets
    Act of 1968) does not provide such a public safety officer who retires
    or is separated from service due to injury suffered as the direct and
    proximate result of a personal injury sustained in the

    [[Page 110 STAT. 3009-67]]

    line of duty while responding to an emergency situation or a hot pursuit
    (as such terms are defined by State law) with the same or better level
    of health insurance benefits that are paid by the entity at the time of
    retirement or separation.

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

          Section 287 of title 35, United States Code, is amended by adding
    at the end the following new subsection:
          (c)(1) With respect to a medical practitioner's performance of a
    medical activity that constitutes an infringement under section 271 (a)
    or (b) of this title, the provisions of sections 281, 283, 284, and 285
    of this title shall not apply against the medical practitioner or
    against a related health care entity with respect to such medical
    activity.
          (2) For the purposes of this subsection:
                (A) the term ``medical activity'' means the performance of a
            medical or surgical procedure on a body, but shall not include
            (i) the use of a patented machine, manufacture, or composition
            of matter in violation of such patent, (ii) the practice of a
            patented use of a composition of matter in violation of such
            patent, or (iii) the practice of a process in violation of a
            biotechnology patent.
                (B) the term ``medical practitioner'' means any natural
            person who is licensed by a State to provide the medical
            activity described in subsection (c)(1) or who is acting under
            the direction of such person in the performance of the medical
            activity.
                (C) the term ``related health care entity'' shall mean an
            entity with which a medical practitioner has a professional
            affiliation under which the medical practitioner performs the
            medical activity, including but not limited to a nursing home,
            hospital, university, medical school, health maintenance
            organization, group medical practice, or a medical clinic.
                (D) the term ``professional affiliation'' shall mean staff
            privileges, medical staff membership, employment or contractual
            relationship, partnership or ownership interest, academic
            appointment, or other affiliation under which a medical
            practitioner provides the medical activity on behalf of, or in
            association with, the health care entity.
                (E) the term ``body'' shall mean a human body, organ or
            cadaver, or a nonhuman animal used in medical research or
            instruction directly relating to the treatment of humans.
                (F) the term ``patented use of a composition of matter''
            does not include a claim for a method of performing a medical or
            surgical procedure on a body that recites the use of a
            composition of matter where the use of that composition of
            matter does not directly contribute to achievement of the
            objective of the claimed method.
                (G) the term ``State'' shall mean any state or territory of
            the United States, the District of Columbia, and the
            Commonwealth of Puerto Rico.
          (3) This subsection does not apply to the activities of any
    person, or employee or agent of such person (regardless of whether such
    person is a tax exempt organization under section 501(c) of the Internal
    Revenue Code), who is engaged in the commercial development,
    manufacture, sale, importation, or distribution of a

    [[Page 110 STAT. 3009-68]]

    machine, manufacture, or composition of matter or the provision of
    pharmacy or clinical laboratory services (other than clinical laboratory
    services provided in a physician's office), where such activities are:
                (A) directly related to the commercial development,
            manufacture, sale, importation, or distribution of a machine,
            manufacture, or composition of matter or the provision of
            pharmacy or clinical laboratory services (other than clinical
            laboratory services provided in a physician's office), and
                (B) regulated under the Federal Food, Drug, and Cosmetic
            Act, the Public Health Service Act, or the Clinical Laboratories
            Improvement Act.
          (4) This subsection shall not apply to any patent issued before
    the date of enactment of this subsection.
          Sec. 617. Effective with the enactment of this Act and in any
    fiscal year hereafter, section 8 of Public Law 96-132 is hereby
    repealed.
          Sec. <<NOTE: 46 USC app. 1273 note.>> 618. (a) In General.--The
    Secretary may issue a guarantee or a commitment to guarantee obligations
    under title XI of the Merchant Marine Act, 1936 (46 App. U.S.C. 1271 et
    seq.), upon such terms as the Secretary may prescribe, to assist in the
    reactivation and modernization of any shipyard in the United States that
    is closed on the date of the enactment of this Act, if the Secretary
    finds that--
                (1) the closed shipyard historically built military vessels
            and responsible entities now seek to reopen it as an
            internationally competitive commercial shipyard;
                (2)(A) the closed shipyard has been designated by the
            President as a public-private partnership project; or
                (B) has a reuse plan approved by the Navy in which
            commercial shipbuilding and repair are primary activities and
            has a revolving economic conversion fund approved by the
            Department of Defense; and
                (3) the State in which the shipyard is located, and each
            other involved State, or a State-chartered agency, is making a
            significant financial investment in the overall cost of
            reactivation and modernization as its contribution to the
            reactivation and modernization project, in addition to the funds
            required by subsection (d)(2) of this section.
          (b) Waivers.--Notwithstanding any other provision of title XI of
    the Merchant Marine Act, 1936 (46 App. U.S.C. 1271 et seq.), the
    Secretary shall not apply the requirements of section 1104A(d) of that
    Act when issuing a guarantee or a commitment to guarantee an obligation
    under this section.
          (c) Conditions.--The Secretary shall impose such conditions on the
    issuance of a guarantee or a commitment to guarantee under this section
    as are necessary to protect the interests of the United States from the
    risk of a default. The Secretary shall consider the interdependency of
    such shipyard modernization and reactivation projects and related vessel
    loan guarantee requests pending under title XI of the Merchant Marine
    Act, 1936 (46 App. U.S.C. 1271 et seq.) before issuing a guarantee or a
    commitment to guarantee under this section.
          (d) Funding Provisions.--
                (1) The Secretary may not guarantee or commit to guarantee
            obligations under this section that exceed $50,000,000 in the
            aggregate.

    [[Page 110 STAT. 3009-69]]

                (2) The amount of appropriated funds required by the Federal
            Credit Reform Act of 1990 (2 U.S.C. 661a et seq.) in advance of
            the Secretary's issuance of a guarantee or a commitment to
            guarantee under this section shall be provided by the State in
            which the shipyard is located, and other involved States, or by
            a State-chartered agency, and deposited by the Secretary in the
            financing account established under the Federal Credit Reform
            Act of 1990 (2 U.S.C. 661a et seq.) for loan guarantees issued
            by the Secretary under title XI of the Merchant Marine Act of
            1936 (46 App. U.S.C. 1271 et seq.). No federally appropriated
            funds shall be available for this purpose. The funds deposited
            into that financing account shall be held and applied by the
            Secretary in accordance with the provisions of the Federal
            Credit Reform Act of 1990 (2 U.S.C. 661a et seq.), except that,
            unless the Secretary shall have earlier paid an obligee or been
            required to pay an obligee pursuant to the terms of a loan
            guarantee, the funds deposited in that financing account shall
            be returned, upon the expiration of the Secretary's loan
            guarantee, to the State, States, or State-chartered agency which
            originally provided the funds to the Secretary.
                (3) Notwithstanding the provisions of any other law or
            regulation, the cost (as that term is defined by the Federal
            Credit Reform Act of 1990 (2 U.S.C. 661a et seq.)) of a
            guarantee or commitment to guarantee issued under this section--
                        (A) may only be determined with reference to the
                    merits of the specific closed shipyard reactivation
                    project which is the subject of that guarantee or
                    commitment to guarantee, without reference to any other
                    project, type of project, or averaged risk; and
                        (B) may not be used in determining the cost of any
                    other project, type of project, or averaged risk
                    applicable to guarantees or commitments to guarantee
                    issued under title XI of the Merchant Marine Act, 1936
                    (46 App. U.S.C. 1271 et seq.).
          (e) Sunset.--No commitment to guarantee obligations under this
    section shall be issued by the Secretary after one year after the date
    of enactment of this section.
          (f) Definition.--As used in this section, the term ``Secretary''
    means the Secretary of Transportation.

                             TITLE VII--RESCISSIONS

                              DEPARTMENT OF JUSTICE

                             General Administration

                              working capital fund

                                  (rescission)

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

    [[Page 110 STAT. 3009-70]]

                     Immigration and Naturalization Service

                           immigration emergency fund

                                  (rescission)

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

            TITLE VIII--FISCAL YEAR 1996 SUPPLEMENTAL AND RESCISSION

                              DEPARTMENT OF JUSTICE

                              Federal Prison System

                              salaries and expenses

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

                                  (rescission)

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

                      TITLE IX--SUPPLEMENTAL APPROPRIATIONS

                             DEPARTMENT OF COMMERCE

                       Economic Development Administration

                    economic development assistance programs

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

                                 RELATED AGENCY

                          Small Business Administration

                         disaster loans program account

          For an additional amount for ``Disaster Loans Program Account''
    for emergency expenses resulting from Hurricanes Fran and Hortense and
    other disasters, $113,000,000 for the cost of direct loans, to remain
    available until expended: Provided, That such costs, including the cost
    of modifying such loans, shall be as defined in section 502 of the
    Congressional Budget Act of 1974; and for

    [[Page 110 STAT. 3009-71]]

    administrative expenses to carry out the disaster loan program,
    $22,000,000, to remain available until expended, which may be
    transferred to and merged with ``Salaries and Expenses'': Provided
    further, That both amounts are hereby designated by Congress as
    emergency requirements pursuant to section 251(b)(2)(D)(i) of the
    Balanced Budget and Emergency Deficit Control Act of 1985, as amended.
          This Act may be cited as the ``Departments of Commerce, Justice,
    and State, the Judiciary, and Related Agencies Appropriations Act,
    1997''.
          (b) For programs, projects or activities in the Department of
    Defense Appropriations Act, 1997, provided as follows, to be effective
    as if it had been enacted into law as the regular appropriations Act:

                                     AN ACT

    Making appropriations for the Department of Defense for the fiscal year
                ending September 30, 1997, and for other purposes

     TITLE <<NOTE: Department of Defense Appropriations Act, 1997.3Post, p.
    3009-119.>>  I

                               MILITARY PERSONNEL

                            Military Personnel, Army

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

                            Military Personnel, Navy

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

                        Military Personnel, Marine Corps

          For pay, allowances, individual clothing, subsistence, interest on
    deposits, gratuities, permanent change of station travel (including all
    expenses thereof for organizational movements), and expenses of
    temporary duty travel between permanent duty stations, for members of
    the Marine Corps on active duty (except members of the Reserve provided
    for elsewhere); and for payments pursuant to section 156 of Public Law
    97-377, as amended (42

    [[Page 110 STAT. 3009-72]]

    U.S.C. 402 note), to section 229(b) of the Social Security Act (42
    U.S.C. 429(b)), and to the Department of Defense Military Retirement
    Fund; $6,111,728,000.

                          Military Personnel, Air Force

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

                             Reserve Personnel, Army

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

                             Reserve Personnel, Navy

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

                         Reserve Personnel, Marine Corps

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

    [[Page 110 STAT. 3009-73]]

                          Reserve Personnel, Air Force

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

                         National Guard Personnel, Army

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

                       National Guard Personnel, Air Force

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

                                    TITLE II

                            OPERATION AND MAINTENANCE

                         Operation and Maintenance, Army

                          (including transfer of funds)

          For expenses, not otherwise provided for, necessary for the
    operation and maintenance of the Army, as authorized by law; and not to
    exceed $11,437,000 can be used for emergencies and extraordinary
    expenses, to be expended on the approval or authority of the Secretary
    of the Army, and payments may be made on his certificate of necessity
    for confidential military purposes; $17,519,340,000 and, in addition,
    $50,000,000 shall be derived by

    [[Page 110 STAT. 3009-74]]

    transfer from the National Defense Stockpile Transaction Fund: Provided,
    That <<NOTE: 43 USC 1471g.>>  during the current fiscal year and
    hereafter, funds appropriated under this paragraph may be made available
    to the Department of the Interior to support the Memorial Day and Fourth
    of July ceremonies and activities in the National Capital Region:
    Provided further, That of the funds appropriated in this paragraph, not
    less than $300,000,000 shall be made available only for conventional
    ammunition care and maintenance.

                         Operation and Maintenance, Navy

                          (including transfer of funds)

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

                     Operation and Maintenance, Marine Corps

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

                      Operation and Maintenance, Air Force

                          (including transfer of funds)

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

                     Operation and Maintenance, Defense-Wide

                          (including transfer of funds)

          For expenses, not otherwise provided for, necessary for the
    operation and maintenance of activities and agencies of the Department
    of Defense (other than the military departments), as authorized by law;
    $10,044,200,000, of which not to exceed $25,000,000 may be available for
    the CINC initiative fund account; and of which not to exceed $28,500,000
    can be used for emergencies and extraordinary expenses, to be expended
    on the approval or authority of the Secretary of Defense, and payments
    may be made on his certificate of necessity for confidential military
    purposes: Provided, That of the funds appropriated under this heading,
    $20,000,000 shall be made available only for use in federally owned
    education facilities located on military installations for the purpose
    of transferring title of such facilities to the local education agency:
    Provided

    [[Page 110 STAT. 3009-75]]

    further, That of the funds appropriated under this heading, $1,000,000
    is available, by grant or other transfer, to the Harnett County School
    Board, Lillington, North Carolina, for use by the school board for the
    education of dependents of members of the Armed Forces and employees of
    the Department of Defense located at Fort Bragg and Pope Air Force Base,
    North Carolina.

                     Operation and Maintenance, Army Reserve

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

                     Operation and Maintenance, Navy Reserve

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

                 Operation and Maintenance, Marine Corps Reserve

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

                  Operation and Maintenance, Air Force Reserve

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

                 Operation and Maintenance, Army National Guard

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

    [[Page 110 STAT. 3009-76]]

                  Operation and Maintenance, Air National Guard

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

                  Overseas Contingency Operations Transfer Fund

                          (including transfer of funds)

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

               United States Court of Appeals for the Armed Forces

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

                         Environmental Restoration, Army

                          (including transfer of funds)

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

    [[Page 110 STAT. 3009-77]]

    remediation by the Corps of Engineers under total environmental
    remediation contracts.

                         Environmental Restoration, Navy

                          (including transfer of funds)

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

                      Environmental Restoration, Air Force

                          (including transfer of funds)

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

                     Environmental Restoration, Defense-Wide

                          (including transfer of funds)

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

    [[Page 110 STAT. 3009-78]]

             Environmental Restoration, Formerly Used Defense Sites

                          (including transfer of funds)

          For the Department of the Army, $256,387,000, to remain available
    until transferred: Provided, That the Secretary of the Army shall, upon
    determining that such funds are required for environmental restoration,
    reduction and recycling of hazardous waste, removal of unsafe buildings
    and debris at sites formerly used by the Department of Defense, transfer
    the funds made available by this appropriation to other appropriations
    made available to the Department of the Army, to be merged with and to
    be available for the same purposes and for the same time period as the
    appropriations to which transferred: Provided further, That upon a
    determination that all or part of the funds transferred from this
    appropriation are not necessary for the purposes provided herein, such
    amounts may be transferred back to this appropriation.

                 Overseas Humanitarian, Disaster, and Civic Aid

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

                      Former Soviet Union Threat Reduction

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

                      Quality of Life Enhancements, Defense

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

    [[Page 110 STAT. 3009-79]]

                                    TITLE III

                                   PROCUREMENT

                           Aircraft Procurement, Army

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

                            Missile Procurement, Army

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

            Procurement of Weapons and Tracked Combat Vehicles, Army

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

                         Procurement of Ammunition, Army

          For construction, procurement, production, and modification of
    ammunition, and accessories therefor; specialized equipment and

    [[Page 110 STAT. 3009-80]]

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

                             Other Procurement, Army

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

                           Aircraft Procurement, Navy

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

                            Weapons Procurement, Navy

          For construction, procurement, production, modification, and
    modernization of missiles, torpedoes, other weapons, and related support
    equipment including spare parts, and accessories therefor; expansion of
    public and private plants, including the land necessary therefor, and
    such lands and interests therein, may be acquired, and construction
    prosecuted thereon prior to approval of title; and procurement and
    installation of equipment, appliances, and machine tools in public and
    private plants; reserve plant and Government and contractor-owned
    equipment layaway;

    [[Page 110 STAT. 3009-81]]

    $1,389,913,000, to remain available for obligation until September 30,
    1999: Provided, That in addition to the foregoing purposes, the funds
    appropriated above under this heading shall be available to liquidate
    reported deficiencies in appropriations provided under this heading in
    prior Department of Defense appropriations acts, to the extent such
    deficiencies cannot otherwise be liquidated pursuant to 31 U.S.C.
    1553(b).

                Procurement of Ammunition, Navy and Marine Corps

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

                        Shipbuilding and Conversion, Navy

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

    In all: $5,613,665,000, to remain available for obligation until
    September 30, 2001: Provided, That additional obligations may be
    incurred after September 30, 2001, for engineering services, tests,
    evaluations, and other such budgeted work that must be performed in the
    final stage of ship construction: Provided further, That none of the
    funds herein provided for the construction or conversion of any naval
    vessel to be constructed in shipyards in the United States shall be
    expended in foreign facilities for the construction of major components
    of such vessel: Provided further, That none of the funds herein provided
    shall be used for the construction of any naval vessel in foreign
    shipyards.

    [[Page 110 STAT. 3009-82]]

                             Other Procurement, Navy

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

                            Procurement, Marine Corps

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

                         Aircraft Procurement, Air Force

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

                         Missile Procurement, Air Force

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

    [[Page 110 STAT. 3009-83]]

                      Procurement of Ammunition, Air Force

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

                          Other Procurement, Air Force

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

                            Procurement, Defense-Wide

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

                      National Guard and Reserve Equipment

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

    [[Page 110 STAT. 3009-84]]

    assessment for their respective Reserve or National Guard component.

              TITLE IV--RESEARCH, DEVELOPMENT, TEST AND EVALUATION

                Research, Development, Test and Evaluation, Army

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

                Research, Development, Test and Evaluation, Navy

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

              Research, Development, Test and Evaluation, Air Force

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

            Research, Development, Test and Evaluation, Defense-Wide

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

    [[Page 110 STAT. 3009-85]]

                   Developmental Test and Evaluation, Defense

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

                    Operational Test and Evaluation, Defense

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

                     TITLE V--REVOLVING AND MANAGEMENT FUNDS

                        Defense Business Operations Fund

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

                          National Defense Sealift Fund

          For National Defense Sealift Fund programs, projects, and
    activities, and for expenses of the National Defense Reserve Fleet, as
    established by section 11 of the Merchant Ship Sales Act of 1946 (50
    U.S.C. App. 1744); $1,428,002,000, to remain available until expended:
    Provided, That none of the funds provided in this paragraph shall be
    used to award a new contract that provides for the acquisition of any of
    the following major components unless such components are manufactured
    in the United States: auxiliary equipment, including pumps, for all
    ship-board services; propulsion system components (that is; engines,
    reduction gears, and propellers); shipboard cranes; and spreaders for
    shipboard cranes: Provided further, That the exercise of an option in a
    contract awarded through the obligation of previously appropriated funds
    shall not be considered to be the award of a new contract: Provided
    further, That the Secretary of the military department responsible for
    such procurement may waive these restrictions on a case-by-case basis by
    certifying in writing to the Committees on Appropriations of the House
    of Representatives and the Senate, that adequate domestic supplies are
    not available to meet Department of Defense requirements on a timely
    basis and that such an acquisition must be made in order to acquire
    capability for national security purposes.

                 TITLE VI--OTHER DEPARTMENT OF DEFENSE PROGRAMS

                             Defense Health Program

          For expenses, not otherwise provided for, for medical and health
    care programs of the Department of Defense, as authorized by law;
    $10,207,308,000, of which $9,937,838,000 shall be for Operation

    [[Page 110 STAT. 3009-86]]

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

               Chemical Agents and Munitions Destruction, Defense

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

             Drug Interdiction and Counter-Drug Activities, Defense

                          (including transfer of funds)

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

                         Office of the Inspector General

          For expenses and activities of the Office of the Inspector General
    in carrying out the provisions of the Inspector General Act of 1978, as
    amended; $139,157,000, of which $137,157,000 shall

    [[Page 110 STAT. 3009-87]]

    be for Operation and maintenance, of which not to exceed $500,000 is
    available for emergencies and extraordinary expenses to be expended on
    the approval or authority of the Inspector General, and payments may be
    made on his certificate of necessity for confidential military purposes;
    and of which $2,000,000, to remain available until September 30, 1999,
    shall be for Procurement.

                           TITLE VII--RELATED AGENCIES

        Central Intelligence Agency Retirement and Disability System Fund

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

                    Intelligence Community Management Account

          For necessary expenses of the Intelligence Community Management
    Account; $129,164,000: Provided, That of the funds appropriated under
    this heading, $27,000,000 shall be transferred to the Department of
    Justice for the National Drug Intelligence Center to support the
    Department of Defense's counterdrug monitoring and detection
    responsibilities.

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

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

                     National Security Education Trust Fund

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

                         TITLE VIII--GENERAL PROVISIONS

          Sec. 8001. No part of any appropriation contained in this Act
    shall be used for publicity or propaganda purposes not authorized by the
    Congress.
          Sec. <<NOTE: 10 USC 1584 note.>>  8002. During the current fiscal
    year, provisions of law prohibiting the payment of compensation to, or
    employment of, any person not a citizen of the United States shall not
    apply to personnel of the Department of Defense: Provided, That salary
    increases granted to direct and indirect hire foreign national employees
    of the Department of Defense funded by this Act shall not be at a rate
    in excess of the percentage increase authorized by law for civilian
    employees of the Department of Defense whose pay is computed under the
    provisions of section 5332 of title 5, United States Code, or at a rate
    in excess of the percentage increase provided by the appropriate host
    nation to its own employees, whichever is higher: Provided further, That
    this section shall not apply to Department of Defense foreign service
    national employees serving at United States diplomatic missions whose
    pay is set

    [[Page 110 STAT. 3009-88]]

    by the Department of State under the Foreign Service Act of 1980:
    Provided further, That the limitations of this provision shall not apply
    to foreign national employees of the Department of Defense in the
    Republic of Turkey.
          Sec. 8003. No part of any appropriation contained in this Act
    shall remain available for obligation beyond the current fiscal year,
    unless expressly so provided herein.
          Sec. 8004. No more than 20 per centum of the appropriations in
    this Act which are limited for obligation during the current fiscal year
    shall be obligated during the last two months of the fiscal year:
    Provided, That this section shall not apply to obligations for support
    of active duty training of reserve components or summer camp training of
    the Reserve Officers' Training Corps.

                               (transfer of funds)

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

                               (transfer of funds)

          Sec. 8006. During the current fiscal year, cash balances in
    working capital funds of the Department of Defense established pursuant
    to section 2208 of title 10, United States Code, may be maintained in
    only such amounts as are necessary at any time for cash disbursements to
    be made from such funds: Provided, That transfers may be made between
    such funds and the ``Foreign Currency Fluctuations, Defense'' and
    ``Operation and Maintenance'' appropriation accounts in such amounts as
    may be determined by the Secretary of Defense, with the approval of the
    Office of Management and Budget, except that such transfers may not be
    made unless the Secretary of Defense has notified the Congress of the
    proposed transfer. Except in amounts equal to the amounts appropriated
    to working capital funds in this Act, no obligations may be made against
    a working capital fund to procure or increase the value of war reserve
    material inventory, unless the Secretary of Defense has notified the
    Congress prior to any such obligation.

    [[Page 110 STAT. 3009-89]]

          Sec. 8007. Funds appropriated by this Act may not be used to
    initiate a special access program without prior notification 30 calendar
    days in session in advance to the congressional defense committees.
          Sec. 8008. None of the funds contained in this Act available for
    the Civilian Health and Medical Program of the Uniformed Services shall
    be available for payments to physicians and other non-institutional
    health care providers in excess of the amounts allowed in fiscal year
    1996 for similar services, except that: (a) for services for which the
    Secretary of Defense determines an increase is justified by economic
    circumstances, the allowable amounts may be increased in accordance with
    appropriate economic index data similar to that used pursuant to title
    XVIII of the Social Security Act; and (b) for services the Secretary
    determines are overpriced based on allowable payments under title XVIII
    of the Social Security Act, the allowable amounts shall be reduced by
    not more than 15 percent (except that the reduction may be waived if the
    Secretary determines that it would impair adequate access to health care
    services for beneficiaries). The Secretary shall solicit public comment
    prior to promulgating regulations to implement this section. Such
    regulations shall include a limitation, similar to that used under title
    XVIII of the Social Security Act, on the extent to which a provider may
    bill a beneficiary an actual charge in excess of the allowable amount.
          Sec. 8009. None of the funds provided in this Act shall be
    available to initiate (1) a multiyear contract that employs economic
    order quantity procurement in excess of $20,000,000 in any one year of
    the contract or that includes an unfunded contingent liability in excess
    of $20,000,000, or (2) a contract for advance procurement leading to a
    multiyear contract that employs economic order quantity procurement in
    excess of $20,000,000 in any one year, unless the congressional defense
    committees have been notified at least thirty days in advance of the
    proposed contract award: Provided, That no part of any appropriation
    contained in this Act shall be available to initiate a multiyear
    contract for which the economic order quantity advance procurement is
    not funded at least to the limits of the Government's liability:
    Provided further, That no part of any appropriation contained in this
    Act shall be available to initiate multiyear procurement contracts for
    any systems or component thereof if the value of the multiyear contract
    would exceed $500,000,000 unless specifically provided in this Act:
    Provided further, That no multiyear procurement contract can be
    terminated without 10-day prior notification to the congressional
    defense committees: Provided further, That the execution of multiyear
    authority shall require the use of a present value analysis to determine
    lowest cost compared to an annual procurement: Provided further, That
    notwithstanding Section 8010 of Public Law 104-61, funds appropriated
    for the DDG-51 destroyer program in Public Law 104-61 may be used to
    initiate a multiyear contract for the Arleigh Burke class destroyer
    program.
          Funds appropriated in title III of this Act may be used for
    multiyear procurement contracts as follows:
                Javelin missiles;
                Army Tactical Missile System (ATACMS);
                MK19-3 grenade machine guns;
                M16A2 rifles;
                M249 Squad Automatic Weapons;

    [[Page 110 STAT. 3009-90]]

                M4 carbine rifles;
                M240B machine guns; and
                Arleigh Burke (DDG-51) class destroyers.
          Sec. 8010. Within the funds appropriated <<NOTE: 10 USC 401
    note.>>  for the operation and maintenance of the Armed Forces, funds
    are hereby appropriated pursuant to section 401 of title 10, United
    States Code, for humanitarian and civic assistance costs under chapter
    20 of title 10, United States Code. Such funds may also be obligated for
    humanitarian and civic assistance costs incidental to authorized
    operations and pursuant to authority granted in section 401 of chapter
    20 of title 10, United States Code, and these obligations shall be
    reported to Congress on September 30 of each year: Provided, That funds
    available for operation and maintenance shall be available for providing
    humanitarian and similar assistance by using Civic Action Teams in the
    Trust Territories of the Pacific Islands and freely associated states of
    Micronesia, pursuant to the Compact of Free Association as authorized by
    Public Law 99-239: Provided further, That upon a determination by the
    Secretary of the Army that such action is beneficial for graduate
    medical education programs conducted at Army medical facilities located
    in Hawaii, the Secretary of the Army may authorize the provision of
    medical services at such facilities and transportation to such
    facilities, on a nonreimbursable basis, for civilian patients from
    American Samoa, the Commonwealth of the Northern Mariana Islands, the
    Marshall Islands, the Federated States of Micronesia, Palau, and Guam.
          Sec. 8011. (a) During fiscal year 1997, the civilian personnel of
    the Department of Defense may not be managed on the basis of any end-
    strength, and the management of such personnel during that fiscal year
    shall not be subject to any constraint or limitation (known as an end-
    strength) on the number of such personnel who may be employed on the
    last day of such fiscal year.
          (b) The fiscal year 1998 budget request for the Department of
    Defense as well as all justification material and other documentation
    supporting the fiscal year 1998 Department of Defense budget request
    shall be prepared and submitted to the Congress as if subsections (a)
    and (b) of this provision were effective with regard to fiscal year
    1998.
          (c) Nothing in this section shall be construed to apply to
    military (civilian) technicians.
          Sec. 8012. Notwithstanding any other provision of law, none of the
    funds made available by this Act shall be used by the Department of
    Defense to exceed, outside the fifty United States, its territories, and
    the District of Columbia, 125,000 civilian workyears: Provided, That
    workyears shall be applied as defined in the Federal Personnel Manual:
    Provided further, That workyears expended in dependent student hiring
    programs for disadvantaged youths shall not be included in this workyear
    limitation.
          Sec. 8013. None of the funds made available by this Act shall be
    used in any way, directly or indirectly, to influence congressional
    action on any legislation or appropriation matters pending before the
    Congress.
          Sec. 8014. (a) None of the funds appropriated by this Act shall be
    used to make contributions to the Department of Defense Education
    Benefits Fund pursuant to section 2006(g) of title 10, United States
    Code, representing the normal cost for future benefits

    [[Page 110 STAT. 3009-91]]

    under section 3015(c) of title 38, United States Code, for any member of
    the armed services who, on or after the date of enactment of this Act--
                (1) enlists in the armed services for a period of active
            duty of less than three years; or
                (2) receives an enlistment bonus under section 308a or 308f
            of title 37, United States Code,

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

                               (transfer of funds)

          Sec. 8016. Funds appropriated in title III of this Act for the
    Department of Defense Pilot Mentor-Protege Program may be transferred to
    any other appropriation contained in this Act solely for the purpose of
    implementing a Mentor-Protege Program developmental assistance agreement
    pursuant to section 831 of the National Defense Authorization Act for
    Fiscal Year 1991 (Public

    [[Page 110 STAT. 3009-92]]

    Law 101-510; 10 U.S.C. 2301 note), as amended, under the authority of
    this provision or any other transfer authority contained in this Act.
          Sec. 8017. None of the funds in this Act may be available for the
    purchase by the Department of Defense (and its departments and agencies)
    of welded shipboard anchor and mooring chain 4 inches in diameter and
    under unless the anchor and mooring chain are manufactured in the United
    States from components which are substantially manufactured in the
    United States: Provided, That for the purpose of this section
    manufactured will include cutting, heat treating, quality control,
    testing of chain and welding (including the forging and shot blasting
    process): Provided further, That for the purpose of this section
    substantially all of the components of anchor and mooring chain shall be
    considered to be produced or manufactured in the United States if the
    aggregate cost of the components produced or manufactured in the United
    States exceeds the aggregate cost of the components produced or
    manufactured outside the United States: Provided further, That when
    adequate domestic supplies are not available to meet Department of
    Defense requirements on a timely basis, the Secretary of the service
    responsible for the procurement may waive this restriction on a case-by-
    case basis by certifying in writing to the Committees on Appropriations
    that such an acquisition must be made in order to acquire capability for
    national security purposes.
          Sec. 8018. None of the funds appropriated by this Act available
    for the Civilian Health and Medical Program of the Uniformed Services
    (CHAMPUS) shall be available for the reimbursement of any health care
    provider for inpatient mental health service for care received when a
    patient is referred to a provider of inpatient mental health care or
    residential treatment care by a medical or health care professional
    having an economic interest in the facility to which the patient is
    referred: Provided, That this limitation does not apply in the case of
    inpatient mental health services provided under the program for the
    handicapped under subsection (d) of section 1079 of title 10, United
    States Code, provided as partial hospital care, or provided pursuant to
    a waiver authorized by the Secretary of Defense because of medical or
    psychological circumstances of the patient that are confirmed by a
    health professional who is not a Federal employee after a review,
    pursuant to rules prescribed by the Secretary, which takes into account
    the appropriate level of care for the patient, the intensity of services
    required by the patient, and the availability of that care.
          Sec. 8019. Funds available in this Act may be used to provide
    transportation for the next-of-kin of individuals who have been
    prisoners of war or missing in action from the Vietnam era to an annual
    meeting in the United States, under such regulations as the Secretary of
    Defense may prescribe.
          Sec. 8020. Notwithstanding <<NOTE: 10 USC 2687 note.>>  any other
    provision of law, during the current fiscal year, the Secretary of
    Defense may, by Executive Agreement, establish with host nation
    governments in NATO member states a separate account into which such
    residual value amounts negotiated in the return of United States
    military installations in NATO member states may be deposited, in the
    currency of the host nation, in lieu of direct monetary transfers to the
    United States Treasury: Provided, That such credits may be utilized only
    for the construction of facilities to support United States military
    forces in that host nation, or such real property maintenance

    [[Page 110 STAT. 3009-93]]

    and base operating costs that are currently executed through monetary
    transfers to such host nations: Provided further, That the Department of
    Defense's budget submission for fiscal year 1998 shall identify such
    sums anticipated in residual value settlements, and identify such
    construction, real property maintenance or base operating costs that
    shall be funded by the host nation through such credits: Provided
    further, That all military construction projects to be executed from
    such accounts must be previously approved in a prior Act of Congress:
    Provided further, That each such Executive Agreement with a NATO member
    host nation shall be reported to the congressional defense committees,
    the Committee on International Relations of the House of Representatives
    and the Committee on Foreign Relations of the Senate thirty days prior
    to the conclusion and endorsement of any such agreement established
    under this provision.
          Sec. 8021. None of the funds available to the Department of
    Defense may be used to demilitarize or dispose of M-1 Carbines, M-1
    Garand rifles, M-14 rifles, .22 caliber rifles, .30 caliber rifles, or
    M-1911 pistols.
          Sec. 8022. Notwithstanding any other provision of law, none of the
    funds appropriated by this Act shall be available to pay more than 50
    percent of an amount paid to any person under section 308 of title 37,
    United States Code, in a lump sum.
          Sec. 8023. None of the funds appropriated by this Act shall be
    available for payments under the Department of Defense contract with the
    Louisiana State University Medical Center involving the use of cats for
    Brain Missile Wound Research, and the Department of Defense shall not
    make payments under such contract from funds obligated prior to the date
    of the enactment of this Act, except as necessary for costs incurred by
    the contractor prior to the enactment of this Act: Provided, That funds
    necessary for the care of animals covered by this contract are allowed.
          Sec. 8024. Of the funds made available by this Act in title III,
    Procurement, $8,000,000, drawn pro rata from each appropriations account
    in title III, shall be available for incentive payments authorized by
    section 504 of the Indian Financing Act of 1974, 25 U.S.C. 1544. These
    payments shall be available only to contractors which have submitted
    subcontracting plans pursuant to 15 U.S.C. 637(d), and according to
    regulations which shall be promulgated by the Secretary of Defense
    within 90 days of the passage of this Act.
          Sec. 8025. None of the funds provided in this Act or any other Act
    shall be available to conduct bone trauma research at any Army Research
    Laboratory until the Secretary of the Army certifies that the synthetic
    compound to be used in the experiments is of such a type that its use
    will result in a significant medical finding, the research has military
    application, the research will be conducted in accordance with the
    standards set by an animal care and use committee, and the research does
    not duplicate research already conducted by a manufacturer or any other
    research organization.
          Sec. 8026. During the current fiscal year, none of the funds
    available to the Department of Defense may be used to procure or acquire
    (1) defensive handguns unless such handguns are the M9 or M11 9mm
    Department of Defense standard handguns, or (2) offensive handguns
    except for the Special Operations Forces:

    [[Page 110 STAT. 3009-94]]

    Provided, That the foregoing shall not apply to handguns and ammunition
    for marksmanship competitions.
          Sec. 8027. No more than $500,000 of the funds appropriated or made
    available in this Act shall be used for any single relocation of an
    organization, unit, activity or function of the Department of Defense
    into or within the National Capital Region: Provided, That the Secretary
    of Defense may waive this restriction on a case-by-case basis by
    certifying in writing to the Congressional defense committees that such
    a relocation is required in the best interest of the Government.
          Sec. 8028. During the current fiscal year, funds appropriated or
    otherwise available for any Federal agency, the Congress, the judicial
    branch, or the District of Columbia may be used for the pay, allowances,
    and benefits of an employee as defined by section 2105 of title 5 or an
    individual employed by the government of the District of Columbia,
    permanent or temporary indefinite, who--
                (1) is a member of a Reserve component of the Armed Forces,
            as described in section 261 of title 10, or the National Guard,
            as described in section 101 of title 32;
                (2) performs, for the purpose of providing military aid to
            enforce the law or providing assistance to civil authorities in
            the protection or saving of life or property or prevention of
            injury--
                        (A) Federal service under sections 331, 332, 333, or
                    12406 of title 10, or other provision of law, as
                    applicable, or
                        (B) full-time military service for his or her State,
                    the District of Columbia, the Commonwealth of Puerto
                    Rico, or a territory of the United States; and
                (3) requests and is granted--
                        (A) leave under the authority of this section; or
                        (B) annual leave, which may be granted without
                    regard to the provisions of sections 5519 and 6323(b) of
                    title 5, if such employee is otherwise entitled to such
                    annual leave:

    Provided, That any employee who requests leave under subsection (3)(A)
    for service described in subsection (2) of this section is entitled to
    such leave, subject to the provisions of this section and of the last
    sentence of section 6323(b) of title 5, and such leave shall be
    considered leave under section 6323(b) of title 5.
          Sec. 8029. None of the funds appropriated by this Act shall be
    available to perform any cost study pursuant to the provisions of OMB
    Circular A-76 if the study being performed exceeds a period of twenty-
    four months after initiation of such study with respect to a single
    function activity or forty-eight months after initiation of such study
    for a multi-function activity.
          Sec. 8030. Funds appropriated by this Act for the American Forces
    Information Service shall not be used for any national or international
    political or psychological activities.
          Sec. 8031. Notwithstanding any other provision of law or
    regulation, the Secretary of Defense may adjust wage rates for civilian
    employees hired for certain health care occupations as authorized for
    the Secretary of Veterans Affairs by section 7455 of title 38, United
    States Code.
          Sec. 8032. None of the funds appropriated or made available in
    this Act shall be used to reduce or disestablish the operation of the
    53rd Weather Reconnaissance Squadron of the Air Force

    [[Page 110 STAT. 3009-95]]

    Reserve, if such action would reduce the WC-130 Weather Reconnaissance
    mission below the levels funded in this Act.
          Sec. 8033. (a) Of the funds for the procurement of supplies or
    services appropriated by this Act, qualified nonprofit agencies for the
    blind or other severely handicapped shall be afforded the maximum
    practicable opportunity to participate as subcontractors and suppliers
    in the performance of contracts let by the Department of Defense.
          (b) During the current fiscal year, a business concern which has
    negotiated with a military service or defense agency a subcontracting
    plan for the participation by small business concerns pursuant to
    section 8(d) of the Small Business Act (15 U.S.C. 637(d)) shall be given
    credit toward meeting that subcontracting goal for any purchases made
    from qualified nonprofit agencies for the blind or other severely
    handicapped.
          (c) For the purpose of this section, the phrase ``qualified
    nonprofit agency for the blind or other severely handicapped'' means a
    nonprofit agency for the blind or other severely handicapped that has
    been approved by the Committee for the Purchase from the Blind and Other
    Severely Handicapped under the Javits-Wagner-O'Day Act (41 U.S.C. 46-
    48).
          Sec. 8034. During the current fiscal year, net receipts pursuant
    to collections from third party payers pursuant to section 1095 of title
    10, United States Code, shall be made available to the local facility of
    the uniformed services responsible for the collections and shall be over
    and above the facility's direct budget amount.
          Sec. 8035. During the current fiscal year, the Department of
    Defense is authorized to incur obligations of not to exceed $350,000,000
    for purposes specified in section 2350j(c) of title 10, United States
    Code, in anticipation of receipt of contributions, only from the
    Government of Kuwait, under that section: Provided, That, upon receipt,
    such contributions from the Government of Kuwait shall be credited to
    the appropriation or fund which incurred such obligations.
          Sec. 8036. Of the funds made available in this Act, not less than
    $23,626,000 shall be available for the Civil Air Patrol, of which
    $19,926,000 shall be available for Operation and maintenance.
          Sec. 8037. (a) None of the funds appropriated in this Act are
    available to establish a new Department of Defense (department)
    federally funded research and development center (FFRDC), either as a
    new entity, or as a separate entity administered by an organization
    managing another FFRDC, or as a nonprofit membership corporation
    consisting of a consortium of other FFRDCs and other non-profit
    entities.
          (b) Limitation on Compensation.--No member of a Board of
    Directors, Trustees, Overseers, Advisory Group, Special Issues Panel,
    Visiting Committee, or any similar entity of a defense FFRDC, and no
    paid consultant to any defense FFRDC, may be compensated for his or her
    services as a member of such entity, or as a paid consultant, except
    under the same conditions, and to the same extent, as members of the
    Defense Science Board: Provided, That a member of any such entity
    referred to previously in this subsection shall be allowed travel
    expenses and per diem as authorized under the Federal Joint Travel
    Regulations, when engaged in the performance of membership duties.

    [[Page 110 STAT. 3009-96]]

          (c) Notwithstanding any other provision of law, none of the funds
    available to the department from any source during fiscal year 1997 may
    be used by a defense FFRDC, through a fee or other payment mechanism,
    for charitable contributions, for construction of new buildings, for
    payment of cost sharing for projects funded by government grants, or for
    absorption of contract overruns.
          (d) Notwithstanding any other provision of law, of the funds
    available to the department during fiscal year 1997, not more than 5,975
    staff years of technical effort (staff years) may be funded for defense
    FFRDCs: Provided, That of the specific amount referred to previously in
    this subsection, not more than 1,088 staff years may be funded for the
    defense studies and analysis FFRDCs.
          (e) Notwithstanding any other provision of law, the Secretary of
    Defense shall control the total number of staff years to be performed by
    defense FFRDCs during fiscal year 1997 so as to reduce the total amounts
    appropriated in titles II, III, and IV of this Act by $52,286,000:
    Provided, That the total amounts appropriated in titles II, III, and IV
    of this Act are hereby reduced by $52,286,000 to reflect savings from
    the use of defense FFRDCs by the department.
          (f) Within 60 days after enactment of this Act, the Secretary of
    Defense shall submit to the Congressional defense committees a report
    presenting the specific amounts of staff years of technical effort to be
    allocated by the department for each defense FFRDC during fiscal year
    1997: Provided, That, after the submission of the report required by
    this subsection, the department may not reallocate more than five
    percent of an FFRDC's staff years among other defense FFRDCs until 30
    days after a detailed justification for any such reallocation is
    submitted to the Congressional defense committees.
          (g) The Secretary of Defense shall, with the submission of the
    department's fiscal year 1998 budget request, submit a report presenting
    the specific amounts of staff years of technical effort to be allocated
    for each defense FFRDC during that fiscal year.
          (h) The total amounts appropriated to or for the use of the
    department in titles II, III, and IV of this Act are hereby further
    reduced by $102,286,000 to reflect savings from the decreased use of
    non-FFRDC consulting services by the department.
          (i) No part of the reductions contained in subsections (e) and (h)
    of this section may be applied against any budget activity, activity
    group, subactivity group, line item, program element, program, project,
    subproject or activity which does not fund defense FFRDC activities or
    non-FFRDC consulting services within each appropriation account.
          (j) Not later than 90 days after enactment of this Act, the
    Secretary of Defense shall submit to the congressional defense
    committees a report listing the specific funding reductions allocated to
    each category listed in subsection (i) above pursuant to this section.
          Sec. 8038. None of the funds in this or any other Act shall be
    available for the preparation of studies on--
                (a) the feasibility of removal and transportation of unitary
            chemical weapons or agents from the eight chemical storage sites
            within the continental United States to Johnston Atoll:
            Provided, That this prohibition shall not apply to General

    [[Page 110 STAT. 3009-97]]

            Accounting Office studies requested by a Member of Congress or a
            Congressional Committee; and
                (b) the potential future uses of the nine chemical disposal
            facilities other than for the destruction of stockpile chemical
            munitions and as limited by section 1412(c)(2), Public Law 99-
            145: Provided, That this prohibition does not apply to future
            use studies for the CAMDS facility at Tooele, Utah.
          Sec. 8039. None of the funds appropriated or made available in
    this Act shall be used to procure carbon, alloy or armor steel plate for
    use in any Government-owned facility or property under the control of
    the Department of Defense which were not melted and rolled in the United
    States or Canada: Provided, That these procurement restrictions shall
    apply to any and all Federal Supply Class 9515, American Society of
    Testing and Materials (ASTM) or American Iron and Steel Institute (AISI)
    specifications of carbon, alloy or armor steel plate: Provided further,
    That the Secretary of the military department responsible for the
    procurement may waive this restriction on a case-by-case basis by
    certifying in writing to the Committees on Appropriations of the House
    of Representatives and the Senate that adequate domestic supplies are
    not available to meet Department of Defense requirements on a timely
    basis and that such an acquisition must be made in order to acquire
    capability for national security purposes: Provided further, That these
    restrictions shall not apply to contracts which are in being as of the
    date of enactment of this Act.
          Sec. 8040. For the purposes of this Act, the term ``congressional
    defense committees'' means the National Security Committee of the House
    of Representatives, the Armed Services Committee of the Senate, the
    subcommittee on Defense of the Committee on Appropriations of the
    Senate, and the subcommittee on National Security of the Committee on
    Appropriations of the House of Representatives.
          Sec. 8041. During the current fiscal year, the Department of
    Defense may acquire the modification, depot maintenance and repair of
    aircraft, vehicles and vessels as well as the production of components
    and other Defense-related articles, through competition between
    Department of Defense depot maintenance activities and private firms:
    Provided, That the Senior Acquisition Executive of the military
    department or defense agency concerned, with power of delegation, shall
    certify that successful bids include comparable estimates of all direct
    and indirect costs for both public and private bids: Provided further,
    That Office of Management and Budget Circular A-76 shall not apply to
    competitions conducted under this section.
           <<NOTE: 41 USC 10b-2.>> Sec. 8042. (a)(1) If the Secretary of
    Defense, after consultation with the United States Trade Representative,
    determines that a foreign country which is party to an agreement
    described in paragraph (2) has violated the terms of the agreement by
    discriminating against certain types of products produced in the United
    States that are covered by the agreement, the Secretary of Defense shall
    rescind the Secretary's blanket waiver of the Buy American Act with
    respect to such types of products produced in that foreign country.
          (2) An agreement referred to in paragraph (1) is any reciprocal
    defense procurement memorandum of understanding, between the United
    States and a foreign country pursuant to which the Secretary

    [[Page 110 STAT. 3009-98]]

    of Defense has prospectively waived the Buy American Act for certain
    products in that country.
          (b) The Secretary of Defense shall submit to Congress a report on
    the amount of Department of Defense purchases from foreign entities in
    fiscal year 1997. Such report shall separately indicate the dollar value
    of items for which the Buy American Act was waived pursuant to any
    agreement described in subsection (a)(2), the Trade Agreement Act of
    1979 (19 U.S.C. 2501 et seq.), or any international agreement to which
    the United States is a party.
          (c) For purposes of this section, the term ``Buy American Act''
    means title III of the Act entitled ``An Act making appropriations for
    the Treasury and Post Office Departments for the fiscal year ending June
    30, 1934, and for other purposes'', approved March 3, 1933 (41 U.S.C.
    10a et seq.).
          Sec. 8043. Appropriations contained in this Act that remain
    available at the end of the current fiscal year as a result of energy
    cost savings realized by the Department of Defense shall remain
    available for obligation for the next fiscal year to the extent, and for
    the purposes, provided in section 2865 of title 10, United States Code.
          Sec. 8044. During the current fiscal year and <<NOTE: 10 USC 1175
    note.>> hereafter, voluntary separation incentives payable under 10
    U.S.C. 1175 may be paid in such amounts as are necessary from the assets
    of the Voluntary Separation Incentive Fund established by section
    1175(h)(1).

                          (including transfer of funds)

          Sec. 8045. Amounts deposited during the current fiscal year to the
    special account established under 40 U.S.C. 485(h)(2) and to the special
    account established under 10 U.S.C. 2667(d)(1) are appropriated and
    shall be available until transferred by the Secretary of Defense to
    current applicable appropriations or funds of the Department of Defense
    under the terms and conditions specified by 40 U.S.C. 485(h)(2) (A) and
    (B) and 10 U.S.C. 2667(d)(1)(B), to be merged with and to be available
    for the same time period and the same purposes as the appropriation to
    which transferred.
          Sec. 8046. During the current fiscal year, appropriations
    available to the Department of Defense may be used to reimburse a member
    of a reserve component of the Armed Forces who is not otherwise entitled
    to travel and transportation allowances and who occupies transient
    government housing while performing active duty for training or inactive
    duty training: Provided, That such members may be provided lodging in
    kind if transient government quarters are unavailable as if the member
    was entitled to such allowances under subsection (a) of section 404 of
    title 37, United States Code: Provided further, That if lodging in kind
    is provided, any authorized service charge or cost of such lodging may
    be paid directly from funds appropriated for operation and maintenance
    of the reserve component of the member concerned.
          Sec. 8047. The President shall include <<NOTE: 10 USC 221 note.>>
    with each budget for a fiscal year submitted to the Congress under
    section 1105 of title 31, United States Code, materials that shall
    identify clearly and separately the amounts requested in the budget for
    appropriation for that fiscal year for salaries and expenses related to
    administrative activities of the Department of Defense, the military
    departments, and the Defense Agencies.

    [[Page 110 STAT. 3009-99]]

          Sec. 8048. Notwithstanding any other provision of law, funds
    available for ``Drug Interdiction and Counter-Drug Activities, Defense''
    may be obligated for the Young Marines program.
          Sec. 8049. During the current fiscal year, amounts contained in
    the Department of Defense Overseas Military Facility Investment Recovery
    Account established by section 2921(c)(1) of the National Defense
    Authorization Act of 1991 (Public Law 101-510; 10 U.S.C. 2687 note)
    shall be available until expended for the payments specified by section
    2921(c)(2) of that Act.
          Sec. <<NOTE: 10 USC 1268 note.>>  8050. During the current fiscal
    year and hereafter, annual payments granted under the provisions of
    section 4416 of the National Defense Authorization Act for Fiscal Year
    1993 (Public Law 102-484; 106 Stat. 2714) shall be made from
    appropriations in this Act which are available for the pay of reserve
    component personnel.
          Sec. 8051. Of the funds appropriated or otherwise made available
    by this Act, not more than $119,200,000 shall be available for payment
    of the operating costs of NATO Headquarters: Provided, That the
    Secretary of Defense may waive this section for Department of Defense
    support provided to NATO forces in and around the former Yugoslavia.
          Sec. 8052. During the current fiscal year, appropriations which
    are available to the Department of Defense for operation and maintenance
    may be used to purchase items having an investment item unit cost of not
    more than $100,000.
          Sec. <<NOTE: 10 USC 1293 note.>>  8053. During the current fiscal
    year and hereafter, appropriations available for the pay and allowances
    of active duty members of the Armed Forces shall be available to pay the
    retired pay which is payable pursuant to section 4403 of Public Law 102-
    484 (10 U.S.C. 1293 note) under the terms and conditions provided in
    section 4403.
          Sec. 8054. (a) During the current fiscal year, none of the
    appropriations or funds available to the Defense Business Operations
    Fund shall be used for the purchase of an investment item for the
    purpose of acquiring a new inventory item for sale or anticipated sale
    during the current fiscal year or a subsequent fiscal year to customers
    of the Defense Business Operations Fund if such an item would not have
    been chargeable to the Defense Business Operations Fund during fiscal
    year 1994 and if the purchase of such an investment item would be
    chargeable during the current fiscal year to appropriations made to the
    Department of Defense for procurement.
          (b) The fiscal year 1998 budget request for the Department of
    Defense as well as all justification material and other documentation
    supporting the fiscal year 1998 Department of Defense budget shall be
    prepared and submitted to the Congress on the basis that any equipment
    which was classified as an end item and funded in a procurement
    appropriation contained in this Act shall be budgeted for in a proposed
    fiscal year 1998 procurement appropriation and not in the supply
    management business area or any other area or category of the Defense
    Business Operations Fund.
          Sec. 8055. None of the funds provided in this Act shall be
    available for use by a Military Department to modify an aircraft,
    weapon, ship or other item of equipment, that the Military Department
    concerned plans to retire or otherwise dispose of within five years
    after completion of the modification: Provided, That this prohibition
    shall not apply to safety modifications: Provided further,

    [[Page 110 STAT. 3009-100]]

    That this prohibition may be waived by the Secretary of a Military
    Department if the Secretary determines it is in the best national
    security interest of the United States to provide such waiver and so
    notifies the congressional defense committees in writing.
          Sec. 8056. None of the funds appropriated by this Act for programs
    of the Central Intelligence Agency shall remain available for obligation
    beyond the current fiscal year, except for funds appropriated for the
    Reserve for Contingencies, which shall remain available until September
    30, 1998.
          Sec. 8057. Notwithstanding any other provision of law, funds made
    available in this Act for the Defense Intelligence Agency may be used
    for the design, development, and deployment of General Defense
    Intelligence Program intelligence communications and intelligence
    information systems for the Services, the Unified and Specified
    Commands, and the component commands.
          Sec. 8058. (a) Notwithstanding any other provision of law, funds
    appropriated in this Act for the High Performance Computing
    Modernization Program shall be made available only for the acquisition,
    modernization and sustainment of supercomputing capability and capacity
    at Department of Defense (DoD) science and technology sites under the
    cognizance of the Director of Defense Research and Engineering and DoD
    test and evaluation facilities under the Director of Test and
    Evaluation, OUSD (A&T): Provided, That these funds shall be awarded
    based on user-defined requirements.
          (b) Of the funds appropriated in this Act under the heading
    ``Procurement, Defense-Wide'', $124,735,000 shall be made available for
    the High Performance Computing Modernization Program. Of the total funds
    made available for the program pursuant to this subsection, $20,000,000
    shall be for the Army High Performance Computing Research Center.
          Sec. 8059. Of the funds appropriated by the Department of Defense
    under the heading ``Operation and Maintenance, Defense-Wide'', not less
    than $8,000,000 shall be made available only for the mitigation of
    environmental impacts, including training and technical assistance to
    tribes, related administrative support, the gathering of information,
    documenting of environmental damage, and developing a system for
    prioritization of mitigation, on Indian lands resulting from Department
    of Defense activities.
          Sec. 8060. Amounts collected for the use of the facilities of the
    National Science Center for Communications and Electronics during the
    current fiscal year pursuant to section 1459(g) of the Department of
    Defense Authorization Act, 1986 and deposited to the special account
    established under subsection 1459(g)(2) of that Act are appropriated and
    shall be available until expended for the operation and maintenance of
    the Center as provided for in subsection 1459(g)(2).
          Sec. 8061. None of the funds appropriated in this Act may be used
    to fill the commander's position at any military medical facility with a
    health care professional unless the prospective candidate can
    demonstrate professional administrative skills.
          Sec. 8062. (a) None of the funds appropriated in this Act may be
    expended by an entity of the Department of Defense unless the entity, in
    expending the funds, complies with Buy American Act. For purposes of
    this subsection, the term ``Buy American Act'' means title III of the
    Act entitled ``An Act making appropriations for the Treasury and Post
    Office Departments for the fiscal year

    [[Page 110 STAT. 3009-101]]

    ending June 30, 1934, and for other purposes'', approved March 3, 1933
    (41 U.S.C. 10a et seq.).
          (b) If the Secretary of Defense determines that a person has been
    convicted of intentionally affixing a label bearing a ``Made in
    America'' inscription to any product sold in or shipped to the United
    States that is not made in America, the Secretary shall determine, in
    accordance with section 2410f of title 10, United States Code, whether
    the person should be debarred from contracting with the Department of
    Defense.
          (c) In the case of any equipment or products purchased with
    appropriations provided under this Act, it is the sense of the Congress
    that any entity of the Department of Defense, in expending the
    appropriation, purchase only American-made equipment and products,
    provided that American-made equipment and products are cost-competitive,
    quality-competitive, and available in a timely fashion.
          Sec. 8063. None of the funds appropriated by this Act shall be
    available for a contract for studies, analyses, or consulting services
    entered into without competition on the basis of an unsolicited proposal
    unless the head of the activity responsible for the procurement
    determines--
                (1) as a result of thorough technical evaluation, only one
            source is found fully qualified to perform the proposed work, or
                (2) the purpose of the contract is to explore an unsolicited
            proposal which offers significant scientific or technological
            promise, represents the product of original thinking, and was
            submitted in confidence by one source, or
                (3) the purpose of the contract is to take advantage of
            unique and significant industrial accomplishment by a specific
            concern, or to insure that a new product or idea of a specific
            concern is given financial support:

    Provided, That this limitation shall not apply to contracts in an amount
    of less than $25,000, contracts related to improvements of equipment
    that is in development or production, or contracts as to which a
    civilian official of the Department of Defense, who has been confirmed
    by the Senate, determines that the award of such contract is in the
    interest of the national defense.
          Sec. 8064. Funds appropriated by this Act for intelligence
    activities are deemed to be specifically authorized by the Congress for
    purposes of section 504 of the National Security Act of 1947 (50 U.S.C.
    414).
          Sec. <<NOTE: 50 USC 1521 note.>>  8065. Notwithstanding section
    142 of H.R. 3230, the National Defense Authorization Act for Fiscal Year
    1997, as passed by the Senate on September 10, 1996, of the funds
    provided in title VI of this Act, under the heading ``Chemical Agents
    and Munitions Destruction, Defense'', $40,000,000 shall only be
    available for the conduct of a pilot program to identify and demonstrate
    not less than two alternatives to the baseline incineration process for
    the demilitarization of assembled chemical munitions: Provided, That the
    Under Secretary of Defense for Acquisition and Technology shall, not
    later than December 1, 1996, designate a program manager who is not, nor
    has been, in direct or immediate control of the baseline reverse
    assembly incineration demilitarization program to carry out the pilot
    program: Provided further, That the Under Secretary of Defense for
    Acquisition and Technology shall evaluate the effectiveness of each
    alternative chemical munitions

    [[Page 110 STAT. 3009-102]]

    demilitarization technology identified and demonstrated under the pilot
    program to demilitarize munitions and assembled chemical munitions while
    meeting all applicable Federal and State environmental and safety
    requirements: Provided further, That the Under Secretary of Defense for
    Acquisition and Technology shall transmit, by December 15 of each year,
    a report to the congressional defense committees on the activities
    carried out under the pilot program during the preceding fiscal year in
    which the report is to be made: Provided further, That section 142(f)(3)
    of H.R. 3230, the <<NOTE: 50 USC 1521 note.>> National Defense
    Authorization Act for Fiscal Year 1997, as passed by the Senate on
    September 10, 1996, is repealed: Provided further, That no funds may be
    obligated for the construction of a baseline incineration facility at
    the Lexington Blue Grass Army Depot or the Pueblo Depot activity until
    180 days after the Secretary of Defense has submitted to the
    congressional defense committees a report detailing the effectiveness of
    each alternative chemical munitions demilitarization technology
    identified and demonstrated under the pilot program and its ability to
    meet the applicable safety and environmental requirements: Provided
    further, That none of the funds in this or any other Act may be
    obligated for the preparation of studies, assessments, or planning of
    the removal and transportation of stockpile assembled unitary chemical
    weapons or neutralized chemical agent to any of the eight chemical
    weapons storage sites within the continental United States.
          Sec. 8066. (a) None of the funds made available by this Act may be
    obligated for design, development, acquisition, or operation of more
    than 47 Titan IV expendable launch vehicles, or for satellite mission-
    model planning for a Titan IV requirement beyond 47 vehicles.
          (b) $59,600,000 made available in this Act for Research,
    Development, Test and Evaluation, Air Force, may only be obligated for
    development of a new family of medium-lift and heavy-lift expendable
    launch vehicles evolved from existing technologies.
          Sec. 8067. None of the funds available to the Department of
    Defense in this Act may be used to establish additional field operating
    agencies of any element of the Department during fiscal year 1997,
    except for field operating agencies funded within the National Foreign
    Intelligence Program: Provided, That the Secretary of Defense may waive
    this section by certifying to the House and Senate Committees on
    Appropriations that the creation of such field operating agencies will
    reduce either the personnel and/or financial requirements of the
    Department of Defense.
          Sec. 8068. Notwithstanding section 303 of Public Law 96-487 or any
    other provision of law, the Secretary of the Navy is authorized to lease
    real and personal property at Naval Air Facility, Adak, Alaska, pursuant
    to 10 U.S.C. 2667(f), for commercial, industrial or other purposes.
          Sec. 8069. Notwithstanding any other provision <<NOTE: 10 USC note
    prec. 2161.>> of law, for resident classes entering the war colleges
    after September 30, 1997, the Department of Defense shall require that
    not less than 20 percent of the total of United States military students
    at each war college shall be from military departments other than the
    hosting military department: Provided, That each military department
    will recognize the attendance at a sister military department war
    college as the equivalent of attendance at its own war college for
    promotion and advancement of personnel.

    [[Page 110 STAT. 3009-103]]

                                  (rescissions)

          Sec. 8070. Of the funds provided in Department of Defense
    Appropriations Acts, the following funds are hereby rescinded from the
    following accounts in the specified amounts:
                ``Procurement of Ammunition, Army, 1995/1997'', $4,500,000;
                ``Aircraft Procurement, Navy, 1995/1997'', $8,000,000;
                ``Procurement of Ammunition, Navy and Marine Corps, 1995/
            1997'', $2,000,000;
                ``Other Procurement, Navy, 1995/1997'', $10,000,000;
                ``Aircraft Procurement, Air Force, 1995/1997'', $3,100,000;
                ``Missile Procurement, Air Force, 1995/1997'', $31,900,000;
                ``Aircraft Procurement, Navy, 1996/1998'', $5,400,000;
                ``Procurement of Ammunition, Navy and Marine Corps, 1996/
            1998'', $12,708,000;
                ``Aircraft Procurement, Air Force, 1996/1998'', $9,000,000;
                ``Missile Procurement, Air Force, 1996/1998'', $20,000,000;
                ``Other Procurement, Air Force, 1996/1998'', $26,000,000;
                ``Research, Development, Test and Evaluation, Navy 1996/
            1997'', $4,500,000.
          Sec. 8071. None of the funds provided in this Act may be obligated
    for payment on new contracts on which allowable costs charged to the
    government include payments for individual compensation at a rate in
    excess of $250,000 per year.
          Sec. 8072. Of the funds appropriated in the Department of Defense
    Appropriations Act, 1996 (Public Law 104-61), under the heading ``Other
    Procurement, Army'', the Department of the Army shall grant $477,000 to
    the Kansas Unified School District 207 for the purpose of integrating
    schools at Fort Leavenworth into the existing fiber optic network on
    post.
          Sec. 8073. None of the funds available in this Act may be used to
    reduce the authorized positions for military (civilian) technicians of
    the Army National Guard, the Air National Guard, Army Reserve and Air
    Force Reserve for the purpose of applying any administratively imposed
    civilian personnel ceiling, freeze, or reduction on military (civilian)
    technicians, unless such reductions are a direct result of a reduction
    in military force structure.
          Sec. 8074. None of the funds appropriated or otherwise made
    available in this Act may be obligated or expended for assistance to the
    Democratic People's Republic of North Korea unless specifically
    appropriated for that purpose.
          Sec. 8075. During the current fiscal year, funds appropriated in
    this Act are available to compensate members of the National Guard for
    duty performed pursuant to a plan submitted by a Governor of a State and
    approved by the Secretary of Defense under section 112 of title 32,
    United States Code: Provided, That during the performance of such duty,
    the members of the National Guard shall be under State command and
    control: Provided further, That such duty shall be treated as full-time
    National Guard duty for purposes of sections 12602 (a)(2) and (b)(2) of
    title 10, United States Code.
          Sec. 8076. Funds appropriated in this Act for operation and
    maintenance of the Military Departments, Unified and Specified Commands
    and Defense Agencies shall be available for reimbursement of pay,
    allowances and other expenses which would otherwise be incurred against
    appropriations for the National Guard and

    [[Page 110 STAT. 3009-104]]

    Reserve when members of the National Guard and Reserve provide
    intelligence support to Unified Commands, Defense Agencies and Joint
    Intelligence Activities, including the activities and programs included
    within the General Defense Intelligence Program and the Consolidated
    Cryptologic Program: Provided, That nothing in this section authorizes
    deviation from established Reserve and National Guard personnel and
    training procedures.
          Sec. 8077. During the current fiscal year, none of the funds
    appropriated in this Act may be used to reduce the civilian medical and
    medical support personnel assigned to military treatment facilities
    below the September 30, 1996 level: Provided, That the Service Surgeons
    General may waive this section by certifying to the congressional
    defense committees that the beneficiary population is declining in some
    catchment areas and civilian strength reductions may be consistent with
    responsible resource stewardship and capitation-based budgeting.
          Sec. 8078. All refunds or other amounts collected in the
    administration of the Civilian Health and Medical Program of the
    Uniformed Services (CHAMPUS) shall be credited to current year
    appropriations.

                          (including transfer of funds)

          Sec. 8079. None of the funds appropriated in this Act may be
    transferred to or obligated from the Pentagon Reservation Maintenance
    Revolving Fund, unless the Secretary of Defense certifies that the total
    cost for the planning, design, construction and installation of
    equipment for the renovation of the Pentagon Reservation will not exceed
    $1,118,000,000.
          Sec. 8080. (a) None of the funds <<NOTE: 10 USC 374
    note.>> available to the Department of Defense for any fiscal year for
    drug interdiction or counter-drug activities may be transferred to any
    other department or agency of the United States except as specifically
    provided in an appropriations law.
          (b) None of the funds available to the Central <<NOTE: 50 USC 403f
    note.>> Intelligence Agency for any fiscal year for drug interdiction
    and counter-drug activities may be transferred to any other department
    or agency of the United States except as specifically provided in an
    appropriations law.

                               (transfer of funds)

          Sec. 8081. Appropriations available in this Act under the heading
    ``Operation and Maintenance, Defense-Wide'' for increasing energy and
    water efficiency in Federal buildings may, during their period of
    availability, be transferred to other appropriations or funds of the
    Department of Defense for projects related to increasing energy and
    water efficiency, to be merged with and to be available for the same
    general purposes, and for the same time period, as the appropriation or
    fund to which transferred.
          Sec. 8082. None of the funds appropriated by this Act may be used
    for the procurement of ball and roller bearings other than those
    produced by a domestic source and of domestic origin: Provided, That the
    Secretary of the military department responsible for such procurement
    may waive this restriction on a case-by-case basis by certifying in
    writing to the Committees on Appropriations of the House of
    Representatives and the Senate, that adequate domestic supplies are not
    available to meet Department of Defense

    [[Page 110 STAT. 3009-105]]

    requirements on a timely basis and that such an acquisition must be made
    in order to acquire capability for national security purposes.
          Sec. 8083. Notwithstanding any other provision of law, funds
    available to the Department of Defense shall be made available to
    provide transportation of medical supplies and equipment, on a
    nonreimbursable basis, to American Samoa: Provided, That notwithstanding
    any other provision of law, funds available to the Department of Defense
    shall be made available to provide transportation of medical supplies
    and equipment, on a nonreimbursable basis, to the Indian Health Service
    when it is in conjunction with a civil-military project.
          Sec. 8084. None of the funds in this Act may be used to purchase
    any supercomputer which is not manufactured in the United States, unless
    the Secretary of Defense certifies to the congressional defense
    committees that such an acquisition must be made in order to acquire
    capability for national security purposes that is not available from
    United States manufacturers.
          Sec. 8085. Notwithstanding any other provision of law, the Naval
    shipyards of the United States shall be eligible to participate in any
    manufacturing extension program financed by funds appropriated in this
    or any other Act.
          Sec. 8086. None of the funds appropriated by this Act shall be
    available to lease or charter a vessel in excess of seventeen months
    (inclusive of any option periods) to transport fuel or oil for the
    Department of Defense if the vessel was constructed after October 1,
    1995 unless the Secretary of Defense requires that the vessel be
    constructed in the United States with a double hull under the long-term
    lease or charter authority provided in section 2401 note of title 10,
    United States Code: Provided, That this limitation shall not apply to
    contracts in force on the date of enactment of this Act: Provided
    further, That by 1997 at least 20 percent of annual leases and charters
    must be for ships of double hull design constructed after October 1,
    1995 if available in numbers sufficient to satisfy this requirement:
    Provided further, That the Military Sealift Command shall plan to
    achieve the goal of eliminating single hull ship leases by the year
    2015.

                               (transfer of funds)

          Sec. 8087. In addition to amounts appropriated or otherwise made
    available by this Act, $300,000,000 is hereby appropriated to the
    Department of Defense and shall be available only for transfer to the
    United States Coast Guard.
          Sec. 8088. Notwithstanding any other provision in this Act, the
    total amount appropriated in this Act is hereby reduced by $150,000,000
    to reflect savings from reduced carryover of activities funded through
    the Defense Business Operations Fund, to be distributed as follows:
    ``Operation and Maintenance, Army'', $60,000,000; and ``Operation and
    Maintenance, Navy'', $90,000,000.
          Sec. 8089. Notwithstanding any other provision of law, each
    contract awarded by the Department of Defense during the current fiscal
    year for construction or service performed in whole or in part in a
    State which is not contiguous with another State and has an unemployment
    rate in excess of the national average rate of unemployment as
    determined by the Secretary of Labor, shall include a provision
    requiring the contractor to employ, for the purpose of performing that
    portion of the contract in such State

    [[Page 110 STAT. 3009-106]]

    that is not contiguous with another State, individuals who are residents
    of such State and who, in the case of any craft or trade, possess or
    would be able to acquire promptly the necessary skills: Provided, That
    the Secretary of Defense may waive the requirements of this section, on
    a case-by-case basis, in the interest of national security.
          Sec. 8090. During the current fiscal year, the Army shall use the
    former George Air Force Base as the airhead for the National Training
    Center at Fort Irwin: Provided, That none of the funds in this Act shall
    be obligated or expended to transport Army personnel into Edwards Air
    Force Base for training rotations at the National Training Center.
          Sec. 8091. (a) The Secretary of Defense shall submit, on a
    quarterly basis, a report to the congressional defense committees, the
    Committee on International Relations of the House of Representatives and
    the Committee on Foreign Relations of the Senate setting forth all costs
    (including incremental costs) incurred by the Department of Defense
    during the preceding quarter in implementing or supporting resolutions
    of the United Nations Security Council, including any such resolution
    calling for international sanctions, international peacekeeping
    operations, and humanitarian missions undertaken by the Department of
    Defense. The quarterly report shall include an aggregate of all such
    Department of Defense costs by operation or mission.
          (b) The Secretary of Defense shall detail in the quarterly reports
    all efforts made to seek credit against past United Nations expenditures
    and all efforts made to seek compensation from the United Nations for
    costs incurred by the Department of Defense in implementing and
    supporting United Nations activities.
          Sec. 8092 (a) Limitation on Transfer of Defense Articles and
    Services.--Notwithstanding any other provision of law, none of the funds
    available to the Department of Defense for the current fiscal year may
    be obligated or expended to transfer to another nation or an
    international organization any defense articles or services (other than
    intelligence services) for use in the activities described in subsection
    (b) unless the congressional defense committees, the Committee on
    International Relations of the House of Representatives, and the
    Committee on Foreign Relations of the Senate are notified 15 days in
    advance of such transfer.
          (b) Covered Activities.--(1) This section applies to--
                (A) any international peacekeeping or peace-enforcement
            operation under the authority of chapter VI or chapter VII of
            the United Nations Charter under the authority of a United
            Nations Security Council resolution; and
                (B) any other international peacekeeping, peace-enforcement,
            or humanitarian assistance operation.
          (c) Required Notice.--A notice under subsection (a) shall include
    the following:
                (1) A description of the equipment, supplies, or services to
            be transferred.
                (2) A statement of the value of the equipment, supplies, or
            services to be transferred.
                (3) In the case of a proposed transfer of equipment or
            supplies--
                        (A) a statement of whether the inventory
                    requirements of all elements of the Armed Forces
                    (including the reserve

    [[Page 110 STAT. 3009-107]]

                    components) for the type of equipment or supplies to be
                    transferred have been met; and
                        (B) a statement of whether the items proposed to be
                    transferred will have to be replaced and, if so, how the
                    President proposes to provide funds for such
                    replacement.
          Sec. 8093. To the extent authorized by subchapter VI of Chapter
    148 of title 10, United States Code, the Secretary of Defense shall
    issue loan guarantees in support of U.S. defense exports not otherwise
    provided for: Provided, That the total contingent liability of the
    United States for guarantees issued under the authority of this section
    may not exceed $15,000,000,000: Provided further, That the exposure fees
    charged and collected by the Secretary for each guarantee, shall be paid
    by the country involved and shall not be financed as part of a loan
    guaranteed by the United States: Provided further, That the Secretary
    shall provide quarterly reports to the Committees on Appropriations,
    Armed Services and Foreign Relations of the Senate and the Committees on
    Appropriations, National Security and International Relations in the
    House of Representatives on the implementation of this program: Provided
    further, That amounts charged for administrative fees and deposited to
    the special account provided for under section 2540c(d) of title 10,
    shall be available for paying the costs of administrative expenses of
    the Department of Defense that are attributable to the loan guarantee
    program under subchapter VI of Chapter 148 of title 10.
          Sec. 8094. None of the funds available to the Department of
    Defense shall be obligated or expended to make a financial contribution
    to the United Nations for the cost of an United Nations peacekeeping
    activity (whether pursuant to assessment or a voluntary contribution) or
    for payment of any United States arrearage to the United Nations.
          Sec. 8095. None of the funds available to the Department of
    Defense under this Act shall be obligated or expended to pay a
    contractor under a contract with the Department of Defense for costs of
    any amount paid by the contractor to an employee when--
                (1) such costs are for a bonus or otherwise in excess of the
            normal salary paid by the contractor to the employee; and
                (2) such bonus is part of restructuring costs associated
            with a business combination.
          Sec. 8096. The amount otherwise provided by this Act for
    ``Operation and Maintenance, Air Force'' is hereby reduced by
    $194,500,000, to reflect a reduction in the pass-through to the Air
    Force business areas of the Defense Business Operations Fund.
          Sec. 8097. (a) None of the funds appropriated or otherwise made
    available in this Act may be used to transport or provide for the
    transportation of chemical munitions or agents to the Johnston Atoll for
    the purpose of storing or demilitarizing such munitions or agents.
          (b) The prohibition in subsection (a) shall not apply to any
    obsolete World War II chemical munition or agent of the United States
    found in the World War II Pacific Theater of Operations.
          (c) The President may suspend the application of subsection (a)
    during a period of war in which the United States is a party.
          Sec. 8098. None of the funds provided in title II of this Act for
    ``Former Soviet Union Threat Reduction'' may be obligated or

    [[Page 110 STAT. 3009-108]]

    expended to finance housing for any individual who was a member of the
    military forces of the Soviet Union or for any individual who is or was
    a member of the military forces of the Russian Federation.
          Sec. 8099. During the current fiscal year, no more than
    $15,000,000 of appropriations made in this Act under the heading
    ``Operation and Maintenance, Defense-Wide'' may be transferred to
    appropriations available for the pay of military personnel, to be merged
    with, and to be available for the same time period as the appropriations
    to which transferred, to be used in support of such personnel in
    connection with support and services for eligible organizations and
    activities outside the Department of Defense pursuant to section 2012 of
    title 10, United States Code.
          Sec. 8100. Beginning <<NOTE: 18 USC 3056 note.>>  in fiscal year
    1997 and thereafter, and notwithstanding any other provision of law,
    fixed and mobile telecommunications support shall be provided by the
    White House Communications Agency (WHCA) to the United States Secret
    Service (USSS), without reimbursement, in connection with the Secret
    Service's duties directly related to the protection of the President or
    the Vice President or other officer immediately next in order of
    succession to the office of the President at the White House Security
    Complex in the Washington, D.C. Metropolitan Area and Camp David,
    Maryland. For these purposes, the White House Security Complex includes
    the White House, the White House grounds, the Old Executive Office
    Building, the New Executive Office Building, the Blair House, the
    Treasury Building, and the Vice President's Residence at the Naval
    Observatory.
          Sec. 8101. None of the funds provided in this Act may be obligated
    or expended for the sale of zinc in the National Defense Stockpile if
    zinc commodity prices decline more than five percent below the London
    Metals Exchange market price reported on the date of enactment of this
    Act.
          Sec. 8102. For purposes of section 1553(b) of title 31, United
    States Code, any subdivision of appropriations made in this Act under
    the heading ``Shipbuilding and Conversion, Navy'' shall be considered to
    be for the same purpose as any subdivision under the heading
    ``Shipbuilding and Conversion, Navy'' appropriations in any prior year,
    and the one percent limitation shall apply to the total amount of the
    appropriation.
          Sec. 8103. During the current fiscal year, and notwithstanding 31
    U.S.C. 1552(a), not more than $107,000,000 appropriated under the
    heading ``Aircraft Procurement, Air Force'' in Public Law 101-511 and
    not more than $15,000,000 appropriated under the heading ``Aircraft
    Procurement, Air Force'' in Public Law 102-172 which were available and
    obligated for the B-2 Aircraft Program shall remain available for
    expenditure and for adjusting obligations for such Program until
    September 30, 2002.
          Sec. 8104. During the current fiscal year, in the case of an
    appropriation account of the Department of Defense for which the period
    of availability for obligation has expired or which has closed under the
    provisions of section 1552 of title 31, United States Code, and which
    has a negative unliquidated or unexpended balance, an obligation or an
    adjustment of an obligation may be charged to any current appropriation
    account for the same purpose as the expired or closed account if--

    [[Page 110 STAT. 3009-109]]

                (1) the obligation would have been properly chargeable
            (except as to amount) to the expired or closed account before
            the end of the period of availability or closing of that
            account;
                (2) the obligation is not otherwise properly chargeable to
            any current appropriation account of the Department of Defense;
            and
                (3) in the case of an expired account, the obligation is not
            chargeable to a current appropriation of the Department of
            Defense under the provisions of section 1405(b)(8) of the
            National Defense Authorization Act for Fiscal Year 1991, Public
            Law 101-510, as amended (31 U.S.C. 1551 note): Provided, That in
            the case of an expired account, if subsequent review or
            investigation discloses that there was not in fact a negative
            unliquidated or unexpended balance in the account, any charge to
            a current account under the authority of this section shall be
            reversed and recorded against the expired account: Provided
            further, That the total amount charged to a current
            appropriation under this section may not exceed an amount equal
            to one percent of the total appropriation for that account.

                               (transfer of funds)

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

    [[Page 110 STAT. 3009-110]]

                        T-AO fleet oiler program, $6,571,000;
          To:
                Under the heading, ``Shipbuilding and Conversion, Navy,
            1989/2000'':
                        SSN-21 attack submarine program, $6,571,000;
          From:
                Under the heading, ``Shipbuilding and Conversion, Navy,
            1991/2001'':
                        DDG-51 destroyer program, $12,687,000;
          To:
                Under the heading, ``Shipbuilding and Conversion, Navy,
            1991/2001'':
                        LHD-1 amphibious assault ship program, $9,387,000;
                        MHC coastal mine hunter program, $3,300,000;
          From:
                Under the heading, ``Shipbuilding and Conversion, Navy,
            1992/1996'':
                        For escalation, $1,600,000;
          To:
                Under the heading, ``Shipbuilding and Conversion, Navy,
            1992/1996'':
                        MHC coastal mine hunter program, $1,600,000;
          From:
                Under the heading, ``Shipbuilding and Conversion, Navy,
            1993/1997'':
                      DDG-51 destroyer program, $5,000,000;
                      LSD-41 cargo variant ship program, $2,700,000;
                      For craft, outfitting, post delivery, and first
                    destination transportation, and inflation adjustments,
                    $1,577,000;
          To:
                Under the heading, ``Shipbuilding and Conversion, Navy,
            1993/1997'':
                        AOE combat support ship program, $9,277,000;
          From:
                Under the heading, ``Shipbuilding and Conversion, Navy,
            1995/1999'':
                        Carrier replacement program, $18,023,000;
          To:
                Under the heading, ``Shipbuilding and Conversion, Navy,
            1993/1997'':
                        MHC coastal mine hunter program, $6,700,000;
                        AOE combat support ship program, $11,323,000;
          From:
                Under the heading, ``Shipbuilding and Conversion, Navy,
            1994/1998'':
                        LHD-1 amphibious assault ship program, $4,100,000;
                        Mine warfare command and control ship, $1,000,000;
                        For craft, outfitting, post delivery, and first
                    destination transportation, $2,000,000;
          From:
                Under the heading, ``Shipbuilding and Conversion, Navy,
            1995/1999'':
                        Carrier replacement program, $9,477,000;
          From:
                Under the heading, ``Shipbuilding and Conversion, Navy,
            1996/2000'':
                        NSSN-1 (AP), $3,791,000;

    [[Page 110 STAT. 3009-111]]

                        DDG-51 destroyer program, $4,075,000;
                        CVN Refuelings, $5,212,000;
                        LHD-1 amphibious ship program, $16,800,000;
                        T-AGS-64 multi-purpose oceanographic survey ship,
                    $375,000;
                        For craft, outfitting, post delivery, conversions
                    and first destination transportation, $11,770,000;
          To:
                Under the heading, ``Shipbuilding and Conversion, Navy,
            1994/1998'':
                        DDG-51 destroyer program, $41,800,000; and
                Under the heading, ``Shipbuilding and Conversion, Navy,
            1995/1999'':
                        For craft, outfitting, post delivery, conversions
                    and first destination transportation, $16,800,000.
          Sec. 8106. <<NOTE: 10 USC 113 note.>>  (a) The Secretary of
    Defense shall require not later than June 30, 1997, each disbursement by
    the Department of Defense in an amount in excess of $3,000,000 be
    matched to a particular obligation before the disbursement is made.
          (b) The Secretary shall ensure that a disbursement in excess of
    the threshold amount applicable under section (a) is not divided into
    multiple disbursements of less than that amount for the purpose of
    avoiding the applicability of such section to that disbursement.
          Sec. 8107. Notwithstanding any other provision of law, the Air
    Force shall not introduce any new supplier for the remaining production
    units for the AN/ALE-47 Countermeasures Dispenser System without
    conducting a full and open competition that will include, but not be
    limited to, small businesses.
          Sec. 8108. The Under Secretary of Defense (Comptroller) shall
    submit to the congressional defense committees a detailed report
    identifying, by amount and by separate budget activity, activity group,
    subactivity group, line item, program element, program, project,
    subproject, and activity, any activity for which the fiscal year 1998
    budget request was reduced because Congress appropriated funds above the
    President's budget request for that specific activity for fiscal year
    1997.
          Sec. 8109. <<NOTE: 10 USC 2241 note.>>  In applying section 9005
    of the Department of Defense Appropriations Act, 1993, Public Law 102-
    396 (10 U.S.C. 2241 note), during the current fiscal year and
    thereafter--
                (1) the term ``synthetic fabric and coated synthetic
            fabric'' shall be deemed to include all textile fibers and yarns
            that are for use in such fabrics; and
                (2) such section shall be treated, notwithstanding section
            34 of Public Law 93-400 (41 U.S.C. 430), as being applicable to
            contracts and subcontracts for the procurement of commercial
            items that are articles or items, specialty metals, or tools
            covered by that section 9005.
          Sec. 8110. Notwithstanding any other provision of law, including
    Section 2304(j) of title 10, United States Code, of the funds
    appropriated under the heading ``Aircraft Procurement, Navy'' in Public
    Law 104-61, $45,000,000 shall be made available only for acquisition of
    T-39N aircraft, associated ground-based training system (GBTS), service
    life extension related components and parts, associated equipment, and
    data that meet the Undergraduate Flight Officer (UNFO) training
    requirements by procurement of the T-

    [[Page 110 STAT. 3009-112]]

    39N aircraft currently being used by the Navy for UNFO training under a
    services contract.
          Sec. 8111. Tradeoff Study of Current and Future Deep-Strike
    Capabilities.--
                (1) The Secretary of Defense shall carry out the deep-strike
            tradeoff study announced by the President to study tradeoffs
            between bombers, land and sea-based tactical aircraft, and
            missiles capable of striking targets in an enemy's rear area.
                (2) The Secretary of Defense shall establish an ad hoc
            review committee under the auspices of the Defense Science Board
            to establish the methodological approach to the tradeoff study,
            to establish a broad range of stressing scenarios of interest,
            and to review assumptions regarding the analyses to be
            conducted.
                (3) The ad hoc review committee to be established under
            paragraph (2) shall include among its members analysts who have
            performed or participated in bomber tradeoff analysis, retired
            military personnel with broad experience in recent conventional
            warfare operations, and experts on the logistics of both initial
            deployment and sustaining support. These members shall be
            selected without regard for current service on the Defense
            Science Board.
                (4) After submitting its recommendations for the conduct of
            the deep-strike tradeoff study to the Secretary of Defense, the
            ad hoc review committee shall continue to meet regularly to
            review preliminary results of the analysis and to recommend
            additional variations in assumptions that may be required to
            illuminate particular force tradeoff issues.
          Sec. 8112. Notwithstanding 31 U.S.C. 1552(a), of the funds
    provided in Department of Defense Appropriations Acts, not more than the
    specified amounts of funds from the following accounts shall remain
    available for the payment of satellite on-orbit incentive fees until the
    fees are paid:
                ``Missile Procurement, Air Force, 1990/1992'', $17,800,000;
                ``Missile Procurement, Air Force, 1991/1993'', $19,330,000;
                ``Missile Procurement, Air Force, 1992/1994'', $23,570,000;
                ``Missile Procurement, Air Force, 1993/1995'', $16,780,000;
                ``Missile Procurement, Air Force, 1994/1996'', $16,780,000.
          Sec. 8113. Tactical Aircraft Requirement Study.--The Secretary of
    Defense and the Chairman of the Joint Chiefs of Staff shall carry out a
    joint study under the direct supervision of the Joint Requirements
    Oversight Council (JROC) assessing future tactical aircraft requirements
    across service jurisdictions. This study shall determine the best and
    most affordable mix of weapon systems to carry out different mission
    areas and shall include recommendations for changes to the planned
    numbers and types of tactical aircraft to be developed and procured over
    the next ten years if appropriate. Such report shall be submitted to the
    congressional defense committees no later than March 30, 1997.
          Sec. 8114. None of the funds available to the Department of the
    Navy may be used to enter into any contract for the overhaul, repair, or
    maintenance of any naval vessel homeported on the West Coast of the
    United States which includes charges for interport differential as an
    evaluation factor for award.
          Sec. 8115. (a) None of the funds available to the Department of
    Defense under this Act may be obligated or expended to reimburse a
    defense contractor for restructuring costs associated

    [[Page 110 STAT. 3009-113]]

    with a business combination of the defense contractor that occurs after
    the date of enactment of this Act unless:
                (1) the auditable savings for the Department of Defense
            resulting from the restructuring will exceed the costs allowed
            by a factor of at least two to one, or
                (2) the savings for the Department of Defense resulting from
            the restructuring will exceed the costs allowed and the
            Secretary of Defense determines that the business combination
            will result in the preservation of a critical capability that
            might otherwise be lost to the Department, and
                (3) the report required by Section 818(e) of Public Law 103-
            337 to be submitted to Congress in 1996 is submitted.
          (b) Not later than April 1, 1997, the Comptroller General shall,
    in consultation with the Inspector General of the Department of Defense,
    the Secretary of Defense, and the Secretary of Labor, submit to Congress
    a report which shall include the following:
                (1) an analysis and breakdown of the restructuring costs
            paid by or submitted to the Department of Defense to companies
            involved in business combinations since 1993;
                (2) an analysis of the specific costs associated with
            workforce reductions;
                (3) an analysis of the services provided to the workers
            affected by business combinations;
                (4) an analysis of the effectiveness of the restructuring
            costs used to assist laid off workers in gaining employment;
                (5) in accordance with section 818 of Public Law 103-337, an
            analysis of the savings reached from the business combination
            relative to the restructuring costs paid by the Department of
            Defense.
          (c) The report should set forth recommendations to make this
    program more effective for workers affected by business combinations and
    more efficient in terms of the use of Federal dollars.
          Sec. 8116. Notwithstanding any other provision of law, none of the
    funds appropriated in this Act may be used to purchase, install,
    replace, or otherwise repair any lock on a safe or security container
    which protects information critical to national security or any other
    classified materials and which has not been certified as passing the
    security lock specifications contained in regulation FF-L-2740 dated
    October 12, 1989, and has not passed all testing criteria and procedures
    established through February 28, 1992: Provided, That the Director of
    Central Intelligence may waive this provision, on a case-by-case basis
    only, upon certification that the above cited locks are not adequate for
    the protection of sensitive intelligence information.
          Sec. 8117. Section 8110 of Public Law 104-61 (109 Stat. 674) is
    hereby repealed.
          Sec. 8118. The Secretary of Defense, in conjunction with the
    Secretary of Labor, shall take such steps as required to ensure that
    those Department of Defense contractors and other entities subject to
    section 4212(d) of title 38, United States Code are aware of, and in
    compliance with, the requirements of that section regarding submission
    of an annual report to the Secretary of Labor concerning employment of
    certain veterans: Provided, That the Secretary of Defense shall ensure
    that those Department of Defense contractors and other entities subject
    to section 4212(d) of title 38, United States Code which have contracts
    with the Department of Defense are notified of the potential penalties
    associated with

    [[Page 110 STAT. 3009-114]]

    failure to comply with these annual reporting requirements (including
    potential suspension or debarment from federal contracting): Provided
    further, That within 180 days of enactment of this Act the Secretary of
    Labor and the Secretary of Defense shall submit a report to Congress
    which--
                (1) using the most recent reporting data, details the number
            of reports received from Department of Defense contractors and
            the estimated number of Department of Defense contractors which
            are not in compliance with these annual reporting requirements;
                (2) describes the steps taken by the Departments of Labor
            and Defense in order to ensure compliance with section 4212(d)
            of title 38, United States Code;
                (3) describes any additional measures taken or planned to be
            taken by the Departments of Labor and Defense to improve
            compliance with section 4212(d) of title 38, United States Code
            pursuant to this section; and
                (4) any further recommendations regarding additional action
            (including changes in existing law) which may be necessary to
            improve compliance with section 4212(d) of title 38, United
            States Code.
          Sec. 8119. Funds appropriated in title II of this Act for
    supervision and administration costs for facilities maintenance and
    repair, minor construction, or design projects may be obligated at the
    time the reimbursable order is accepted by the performing activity:
    Provided, That for the purpose of this section, supervision and
    administration costs includes all in-house Government cost.
          Sec. 8120. (a) Limitation on Advance Billing.--During fiscal year
    1997, advance billing for services provided or work performed by the
    Defense Business Operations Fund activities of the Department of the
    Navy in excess of $1,000,000,000 is prohibited.
          (b) Revised Rates; Additional Surcharges.--In conjunction with the
    Under Secretary of Defense (Comptroller), the Secretary of the Navy
    shall develop a plan to revise fiscal year 1997 customer rates or
    establish additional surcharges so as to increase revenues to the
    Defense Business Operations Fund by at least an additional $500,000,000
    in executing orders accepted during fiscal year 1997.
          (c) Transfer Authority.--To the extent necessary to comply with
    any rate increase or new surcharge on rates in fiscal year 1997
    established under subsection (b), the Secretary of the Navy shall
    transfer at least $500,000,000, from funds made available under
    subsection (d), into customer accounts of the Navy used to reimburse the
    Defense Business Operations Fund so as to provide customers with
    sufficient resources to pay the increased customer rates and additional
    surcharges. The transfer authority provided by this subsection is in
    addition to other transfer authority provided in this Act. The funds
    transferred shall be merged with and available for the same purposes,
    and for the same time period, as the appropriation to which transferred.
          (d) Source of Funds.--To provide funds for transfer under
    subsection (c), the amounts appropriated elsewhere in this Act for the
    following appropriation accounts are reduced by 2.0 percent: Aircraft
    Procurement, Navy; Weapons Procurement, Navy; Procurement of Ammunition,
    Navy and Marine Corps; Shipbuilding and Conversion, Navy; Other
    Procurement, Navy; and Research, Development, Test and Evaluation, Navy.
    These reductions shall be applied on a pro-rata basis to each line item,
    program element,

    [[Page 110 STAT. 3009-115]]

    program, project, subproject, and activity within each appropriation
    account.
          Sec. 8121. The Secretary of Defense may waive reimbursement of the
    cost of conferences, seminars, courses of instruction, or similar
    educational activities of the Asia-Pacific Center for Security Studies
    for military officers and civilian officials of foreign nations if the
    Secretary determines that attendance by such personnel, without
    reimbursement, is in the national security interest of the United
    States: Provided, That costs for which reimbursement is waived pursuant
    to this subsection shall be paid from appropriations available for the
    Asia-Pacific Center.
          Sec. 8122. (a) Of the amounts appropriated or otherwise made
    available by this Act for the Department of the Air Force, $2,000,000
    shall be available only for a facility at Lackland Air Force Base, Texas
    to provide comprehensive care and rehabilitation services to children
    with disabilities who are dependents of members of the Armed Forces.
          (b) Subject to subsection (c), the Secretary of the Air Force
    shall grant the funds made available under subsection (a) to the
    Children's Association for Maximum Potential (CAMP) for use by the
    association to defray the costs of designing and constructing the
    facility referred to in subsection (a).
          (c)(1) The Secretary may not make a grant of funds under
    subsection (b) until the Secretary and the association enter into an
    agreement under which the Secretary leases to the association the
    facility to be constructed using the funds.
          (2) The term of the lease under subsection (c)(1) may not be less
    than 25 years.
          (3) The Secretary may require such additional terms and conditions
    in connection with the lease as the Secretary considers appropriate to
    protect the interests of the United States.
          Sec. 8123. None of the funds appropriated by this Act may be
    obligated or expended--
                (1) to reduce the number of units of special operations
            forces of the Army National Guard during fiscal year 1997;
                (2) to reduce the authorized strength of any such unit below
            the strength authorized for the unit as of September 30, 1996;
            or
                (3) to apply any administratively imposed limitation on the
            assigned strength of any such unit at less than the strength
            authorized for that unit as of September 30, 1996.
          Sec. 8124. (a) The Secretary of the Army shall ensure that
    solicitations for contracts for unrestricted procurement to be entered
    into using funds appropriated for the Army by this Act include, where
    appropriate, specific goals for subcontracts with small businesses,
    small disadvantaged businesses, and women owned small businesses.
          (b) The Secretary shall ensure that any subcontract entered into
    pursuant to a solicitation referred to in subsection (a) that meets a
    specific goal referred to in that subsection is credited toward the
    overall goal of the Army for subcontracts with the businesses referred
    to in that subsection.
          Sec. 8125. (a) The Secretary of the Air Force and the Director of
    the Office of Personnel Management shall submit a joint report
    describing in detail the benefits, allowances, services, and any other
    forms of assistance which may or shall be provided to any civilian
    employee of the Federal Government or to any private citizen,

    [[Page 110 STAT. 3009-116]]

    or to the family of such an individual, who is injured or killed while
    traveling on an aircraft owned, leased, chartered, or operated by the
    Government of the United States.
          (b) The report required by subsection (a) above shall be submitted
    to the congressional defense committees and to the Committee on
    Governmental Affairs of the Senate and the Committee on Government
    Reform and Oversight of the House of Representatives not later than
    December 15, 1996.
          Sec. 8126. (a) Not later than March 1, 1997, the Deputy Secretary
    of Defense shall submit to the congressional defense committees a report
    on Department of Defense procurements of propellant raw materials.
          (b) The report shall include the following:
                (1) The projected future requirements of the Department of
            Defense for propellant raw materials, such as nitrocellulose.
                (2) The capacity, ability, and production cost rates of the
            national technology and industrial base, including Government-
            owned, contractor-operated facilities, contractor-owned and
            operated facilities, and Government-owned, Government-operated
            facilities, for meeting such requirements.
                (3) The national security benefits of preserving in the
            national technology and industrial base contractor-owned and
            operated facilities for producing propellant raw materials,
            including nitrocellulose.
                (4) The extent to which the cost rates for production of
            nitrocellulose in Government-owned, contractor-operated
            facilities is lower because of the relationship of those
            facilities with the Department of Defense than such rates would
            be without that relationship.
                (5) The advantages and disadvantages of permitting
            commercial facilities to compete for award of Department of
            Defense contracts for procurement of propellant raw materials,
            such as nitrocellulose.
          Sec. 8127. Not later than six months after the date of the
    enactment of this Act, the Secretary of the Air Force shall submit to
    Congress a cost-benefit analysis of consolidating the ground station
    infrastructure of the Air Force that supports polar orbiting satellites.

                          (including transfer of funds)

          Sec. 8128. In addition to the amounts appropriated elsewhere in
    this Act, $100,000,000 is appropriated for defense against weapons of
    mass destruction: Provided, That the funds appropriated under this
    section may be transferred to and merged with funds appropriated
    elsewhere in this Act and that this transfer authority shall be in
    addition to any other transfer authority provided under this Act:
    Provided further, That of the funds made available by this section,
    $10,000,000 shall be transferred to and merged with funds appropriated
    in this Act for ``Procurement, Marine Corps'' and shall be available
    only for the procurement of equipment that enhances the capability of
    the Chemical-Biological Incident Response Force to respond to incidents
    of terrorism.
          Sec. 8129. The Secretary of Defense, in consultation with the
    Secretary of Health and Human Services and the Director of the Office of
    Personnel Management, shall submit a report to the congressional defense
    committees by February 1, 1997 containing recommendations regarding the
    establishment of a demonstration

    [[Page 110 STAT. 3009-117]]

    program under which covered beneficiaries under chapter 55 of title 10,
    United States Code, who are entitled to benefits under part A of the
    medicare program and who do not have access to TRICARE, would be
    permitted to enroll in a health benefits program offered through the
    Federal Employee Health Benefits Program under chapter 89 of title 5,
    United States Code.
          Sec. 8130. (a) Section 203 of H.R. 3230, the National Defense
    Authorization Act for Fiscal Year 1997, as passed by the Senate on
    September 10, 1996, is hereby amended by repealing section 203(a),
    section 203(c), and section 203(e).
          (b) The amendments made by subsection (a) shall take effect as of
    the date of the enactment of the National Defense Authorization Act for
    Fiscal Year 1997 as if section 203 of such Act had been enacted as so
    amended.
          Sec. 8131. (a) Section 722(c) of the National Defense
    Authorization Act for Fiscal Year <<NOTE: 10 USC 1073 note.>>  1997 is
    amended--
                (1) by striking out paragraph (2);
                (2) by striking out ``(1)''; and
                (3) by redesignating subparagraphs (A) and (B) as paragraphs
            (1) and (2), respectively.
          (b) <<NOTE: 10 USC 1073 note.>>  The amendments made by subsection
    (a) shall take effect as of the date of the enactment of the National
    Defense Authorization Act for Fiscal Year 1997 as if section 722 of such
    Act had been enacted as so amended.
          Sec. 8132. The Secretary of Defense shall complete a cost/benefit
    analysis on the establishment of a National Missile Defense Joint
    Program Office: Provided, That the Secretary of Defense shall submit a
    report on this analysis to the congressional defense committees no later
    than March 31, 1997: Provided further, That the Department of Defense
    shall take no action to establish any National Missile Defense Joint
    Program Office, to reassign service National Missile Defense roles and
    missions under any National Missile Defense Joint Program Office
    strategy or to relocate people under such a strategy prior to March 31,
    1997.
          Sec. 8133. (a) Notwithstanding any other provision of law, the
    Chief of the National Guard Bureau may permit the use of equipment of
    the National Guard Distance Learning Project by any person or entity on
    a space-available, reimbursable basis. The Chief of the National Guard
    Bureau shall establish the amount of reimbursement for such use on a
    case-by-case basis.
          (b) Amounts collected under subsection (a) shall be credited to
    funds available for the National Guard Distance Learning Project and be
    available to defray the costs associated with the use of equipment of
    the project under that subsection. Such funds shall be available for
    such purposes without fiscal year limitation.
          Sec. 8134. Using funds available by this Act or any other Act, the
    Secretary of the Air Force, pursuant to a determination under section
    2690 of title 10, United States Code, may implement cost-effective
    agreements for required heating facility modernization in the
    Kaiserslautern Military Community in the Federal Republic of Germany:
    Provided, That in the City of Kaiserslautern such agreements will
    include the use of United States anthracite as the base load energy for
    municipal district heat to the United States Defense installations:
    Provided further, That at Landstuhl Army Regional Medical Center and
    Ramstein Air Base, furnished heat may be obtained from private, regional
    or municipal services,

    [[Page 110 STAT. 3009-118]]

    if provisions are included for the consideration of United States coal
    as an energy source.
          Sec. 8135. (a) Section 2867 of the National Defense Authorization
    Act for Fiscal Year 1997 is amended--
                (1) by striking out ``Michael O'Callaghan Military
            Hospital'' both places it appears in the text of such section
            and inserting in lieu thereof ``Mike O'Callaghan Federal
            Hospital''; and
                (2) in the section heading, by striking out ``MICHAEL
            O'CALLAGHAN MILITARY HOSPITAL'' and inserting in lieu thereof
            ``MIKE O'CALLAGHAN FEDERAL HOSPITAL''.
          (b) The amendments made by subsection (a) shall take effect as of
    the date of the enactment of the National Defense Authorization Act for
    Fiscal Year 1997 and shall apply as if such amendments had been included
    in section 2867 of such Act when enacted.
          Sec. 8136. (a) In addition to any other reductions required by
    this Act, the following funds are hereby reduced from the following
    accounts in title IV of this Act in the specified amounts:
                ``Research, Development, Test and Evaluation, Army'',
            $101,257,000;
                ``Research, Development, Test and Evaluation, Navy'',
            $164,179,000;
                ``Research, Development, Test and Evaluation, Air Force'',
            $289,992,000;
                ``Research, Development, Test and Evaluation, Defense-
            Wide'', $119,483,000; and
                ``Developmental Test and Evaluation, Defense'', $5,641,000.
          (b) The reductions taken pursuant to subsection (a) shall be
    applied on a pro-rata basis by subproject within each R-1 program
    element as modified by this Act, except that no reduction may be taken
    against the funds made available to the Department of Defense for
    Ballistic Missile Defense.
          (c) Unless expressly exempted by subsection (b), each program
    element, program, project, subproject, and activity funded by title IV
    of this Act shall be allocated a pro-rata share of any of the reductions
    made by this section.
          (d) Not later than 60 days after enactment of this Act, the
    Secretary of Defense shall submit to the Congressional defense
    committees a report listing the specific funding reductions allocated to
    each category listed in subsection (c) above pursuant to this section.
          Sec. 8137. In addition to amounts appropriated or otherwise made
    available in this Act, $230,680,000 is hereby appropriated to the
    Department of Defense for anti-terrorism, counter-terrorism, and
    security enhancement programs and activities, as follows:
                ``Operation and Maintenance, Army'', $15,249,000;
                ``Operation and Maintenance, Navy'', $23,956,000;
                ``Operation and Maintenance, Marine Corps'', $600,000;
                ``Operation and Maintenance, Air Force'', $10,750,000;
                ``Operation and Maintenance, Defense-Wide'', $29,534,000;
                ``Operation and Maintenance, Navy Reserve'', $517,000;
                ``Other Procurement, Army'', $5,252,000;
                ``Other Procurement, Air Force'', $101,472,000;
                ``Procurement, Defense-Wide'', $35,350,000;
                ``Research, Development, Test and Evaluation, Defense-
            Wide'', $8,000,000:

    Provided, That such amounts in their entirety are designated by Congress
    as an emergency requirement pursuant to section

    [[Page 110 STAT. 3009-119]]

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

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

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

                         DEPARTMENT OF DEFENSE--MILITARY

                               MILITARY PERSONNEL

                            Military Personnel, Army

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

                          Military Personnel, Air Force

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

                            OPERATION AND MAINTENANCE

                         Operation and Maintenance, Army

          For an additional amount for ``Operation and Maintenance, Army'',
    $21,200,000, to remain available until September 30, 1997:

    [[Page 110 STAT. 3009-120]]

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

                      Operation and Maintenance, Air Force

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

                                   PROCUREMENT

                             Other Procurement, Army

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

                          Other Procurement, Air Force

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

                               GENERAL PROVISIONS

                                  (rescissions)

          Sec. 9001. Of the funds provided in Department of Defense
    Appropriations Acts, the following funds are hereby rescinded, as of the
    date of enactment of this Act, from the following accounts in the
    specified amounts:
              ``Procurement of Ammunition, Army, 1994/1996'', $1,000,000;
              ``Other Procurement, Army, 1994/1996'', $6,000,000;
              ``Research, Development, Test and Evaluation, Army, 1995/
            1996'', $2,055,000;
              ``Aircraft Procurement, Navy, 1994/1996'', $10,157,000;
              ``Weapons Procurement, Navy, 1994/1996'', $10,688,000;
              ``Other Procurement, Navy, 1994/1996'', $4,000,000;
              ``Research, Development, Test and Evaluation, Navy, 1995/
            1996'', $6,909,000;
              ``Aircraft Procurement, Air Force, 1994/1996'', $18,771,000;
              ``Missile Procurement, Air Force, 1994/1996'', $10,156,000;
              ``Other Procurement, Air Force, 1994/1996'', $14,395,000;
              ``Research, Development, Test and Evaluation, Air Force, 1995/
            1996'', $4,918,000;
              ``Procurement, Defense-Wide, 1994/1996'', $9,954,000;

    [[Page 110 STAT. 3009-121]]

              ``Research, Development, Test and Evaluation, Defense-Wide,
            1995/1996'', $23,597,000.
          Sec. 9002. Funds appropriated by this title, or made available by
    transfer of such funds, for programs and activities of the Central
    Intelligence Agency shall remain available until September 30, 1997:
    Provided, That funds appropriated by this title, or made available by
    transfer of such funds, to any intelligence agency or intelligence
    activity of the United States Government shall be deemed to be
    specifically authorized by the Congress for purposes of section 504 of
    the National Security Act of 1947 (50 U.S.C. 414).
          (c) For programs, projects or activities in the Foreign
    Operations, Export Financing, and Related Programs Appropriations Act,
    1997, provided as follows, to be effective as if it had been enacted
    into law as the regular appropriations Act:

                                     AN ACT

    Making appropriations for the foreign operations, export financing, and
    related programs for the fiscal year ending September 30, 1997, and for
                                 other purposes.

    TITLE <<NOTE: Foreign Operations, Export Financing, and Related Programs
    Appropriations Act, 1997.3Post, p. 3009-172.>>  I--EXPORT AND INVESTMENT
    ASSISTANCE

                     export-import bank of the united states

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

                              subsidy appropriation

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

    [[Page 110 STAT. 3009-122]]

    2(b)(2) of the Export-Import Bank Act of 1945, in connection with the
    purchase or lease of any product by any East European country, any
    Baltic State, or any agency or national thereof.

                             administrative expenses

          For administrative expenses to carry out the direct and guaranteed
    loan and insurance programs (to be computed on an accrual basis),
    including hire of passenger motor vehicles and services as authorized by
    5 U.S.C. 3109, and not to exceed $20,000 for official reception and
    representation expenses for members of the Board of Directors,
    $46,614,000: Provided, That necessary expenses (including special
    services performed on a contract or fee basis, but not including other
    personal services) in connection with the collection of moneys owed the
    Export-Import Bank, repossession or sale of pledged collateral or other
    assets acquired by the Export-Import Bank in satisfaction of moneys owed
    the Export-Import Bank, or the investigation or appraisal of any
    property, or the evaluation of the legal or technical aspects of any
    transaction for which an application for a loan, guarantee or insurance
    commitment has been made, shall be considered nonadministrative expenses
    for the purposes of this heading: Provided further, That, effective July
    21, 1997, notwithstanding any other provision of law, none of the funds
    made available by this or any other Act may be made available to
    compensate the incumbent Chairman and President of the Export-Import
    Bank Provided further, That, <<NOTE: 12 USC 635a note.>> notwithstanding
    subsection (b) of section 117 of the Export Enhancement Act of 1992,
    subsection (a) thereof shall remain in effect until October 1, 1997.

                     overseas private investment corporation

                                noncredit account

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

                                 program account

          For the cost of direct and guaranteed loans, $72,000,000, as
    authorized by section 234 of the Foreign Assistance Act of 1961:
    Provided, That such costs, including the cost of modifying such loans,
    shall be as defined in section 502 of the Congressional Budget Act of
    1974: Provided further, That such sums shall be available for direct
    loan obligations and loan guaranty commitments incurred or made during
    fiscal years 1997 and 1998: Provided further, That such sums shall
    remain available through fiscal year 2005 for

    [[Page 110 STAT. 3009-123]]

    the disbursement of direct and guaranteed loans obligated in fiscal year
    1997, and through fiscal year 2006 for the disbursement of direct and
    guaranteed loans obligated in fiscal year 1998: Provided further, That
    section 235(a)(3) of the Foreign Assistance Act of 1961 (22 U.S.C.
    2195(a)(3)) is amended by striking out ``1996'' and inserting in lieu
    thereof ``1997'' and, notwithstanding section 235(a)(1) of the Foreign
    Assistance Act of 1961 (22 U.S.C. 2195(a)(1)), the maximum contingent
    liability of issuing authority for insurance and financing shall not in
    the aggregate exceed the amounts provided in section 235(a)(1) and (2)
    of that Act. In addition, such sums as may be necessary for
    administrative expenses to carry out the credit program may be derived
    from amounts available for administrative expenses to carry out the
    credit and insurance programs in the Overseas Private Investment
    Corporation Noncredit Account and merged with said account.

                       Funds Appropriated to the President

                          trade and development agency

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

                     TITLE II--BILATERAL ECONOMIC ASSISTANCE

                       Funds Appropriated to the President

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

                      agency for international development

                    child survival and disease programs fund

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

    [[Page 110 STAT. 3009-124]]

    Fund (UNICEF) pursuant to section 301 of the Foreign Assistance Act of
    1961.

                             development assistance

                          (including transfer of funds)

          For necessary expenses to carry out the provisions of sections 103
    through 106 and chapter 10 of part I of the Foreign Assistance Act of
    1961, title V of the International Security and Development Cooperation
    Act of 1980 (Public Law 96-533) and the provisions of section 401 of the
    Foreign Assistance Act of 1969, $1,181,500,000, to remain available
    until September 30, 1998: Provided, That of the amount appropriated
    under this heading, up to $20,000,000 may be made available for the
    Inter-American Foundation and shall be apportioned directly to that
    agency: Provided further, That of the amount appropriated under this
    heading, up to $11,500,000 may be made available for the African
    Development Foundation and shall be apportioned directly to that agency:
    Provided further, That of the funds appropriated under title II of this
    Act that are administered by the Agency for International Development
    and made available for family planning assistance, not less than 65
    percent shall be made available directly to the agency's central Office
    of Population and shall be programmed by that office for family planning
    activities: Provided further, That of the funds appropriated under this
    heading and under the heading ``Child Survival and Disease Programs
    Fund'' that are made available by the Agency for International
    Development for development assistance activities, the amount made
    available to carry out chapter 10 of part I of the Foreign Assistance
    Act of 1961 (relating to the Development Fund for Africa) and the amount
    made available for activities in the Latin America and Caribbean region
    should be in at least the same proportion as the amount identified in
    the fiscal year 1997 draft congressional presentation document for
    development assistance for each such region is to the total amount
    requested for development assistance for such fiscal year: Provided
    further, That funds appropriated under this heading may be made
    available, notwithstanding any other provision of law except section 515
    of this Act, to assist Vietnam to reform its trade regime (such as
    through reform of its commercial and investment legal codes): Provided
    further, That none of the funds made available in this Act nor any
    unobligated balances from prior appropriations may be made available to
    any organization or program which, as determined by the President of the
    United States, supports or participates in the management of a program
    of coercive abortion or involuntary sterilization: Provided further,
    That none of the funds made available under this heading may be used to
    pay for the performance of abortion as a method of family planning or to
    motivate or coerce any person to practice abortions; and that in order
    to reduce reliance on abortion in developing nations, funds shall be
    available only to voluntary family planning projects which offer, either
    directly or through referral to, or information about access to, a broad
    range of family planning methods and services: Provided further, That in
    awarding grants for natural family planning under section 104 of the
    Foreign Assistance Act of 1961 no applicant shall be discriminated
    against because of such applicant's religious or conscientious
    commitment to offer only natural family planning; and, additionally, all
    such applicants shall comply with

    [[Page 110 STAT. 3009-125]]

    the requirements of the previous proviso: Provided further, That for
    purposes of this or any other Act authorizing or appropriating funds for
    foreign operations, export financing, and related programs, the term
    ``motivate'', as it relates to family planning assistance, shall not be
    construed to prohibit the provision, consistent with local law, of
    information or counseling about all pregnancy options: Provided further,
    That nothing in this paragraph shall be construed to alter any existing
    statutory prohibitions against abortion under section 104 of the Foreign
    Assistance Act of 1961: Provided further, That, notwithstanding section
    109 of the Foreign Assistance Act of 1961, of the funds appropriated
    under this heading in this Act, and of the unobligated balances of funds
    previously appropriated under this heading, up to $17,500,000 may be
    transferred to ``International Organizations and Programs'' for a
    contribution to the International Fund for Agricultural Development
    (IFAD), and that any such transfer of funds shall be subject to the
    regular notification procedures of the Committees on Appropriations:
    Provided further, That of the funds appropriated under this heading that
    are made available for assistance programs for displaced and orphaned
    children and victims of war, not to exceed $25,000, in addition to funds
    otherwise available for such purposes, may be used to monitor and
    provide oversight of such programs: Provided further, That not less than
    $500,000 of the funds made available under this heading shall be
    available only for support of the United States Telecommunications
    Training Institute.

                                     cyprus

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

                                      burma

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

    [[Page 110 STAT. 3009-126]]

                       private and voluntary organizations

          None of the funds <<NOTE: 22 USC 2151u note.>> appropriated or
    otherwise made available by this Act for development assistance may be
    made available to any United States private and voluntary organization,
    except any cooperative development organization, which obtains less than
    20 per centum of its total annual funding for international activities
    from sources other than the United States Government: Provided, That the
    requirements of the provisions of section 123(g) of the Foreign
    Assistance Act of 1961 and the provisions on private and voluntary
    organizations in title II of the ``Foreign Assistance and Related
    Programs Appropriations Act, 1985'' (as enacted in Public Law 98-473)
    shall be superseded by the provisions of this section, except that the
    authority contained in the last sentence of section 123(g) may be
    exercised by the Administrator with regard to the requirements of this
    paragraph.
          Funds appropriated or otherwise made available under title II of
    this Act should be made available to private and voluntary organizations
    at a level which is equivalent to the level provided in fiscal year
    1995. Such private and voluntary organizations shall include those which
    operate on a not-for-profit basis, receive contributions from private
    sources, receive voluntary support from the public and are deemed to be
    among the most cost-effective and successful providers of development
    assistance.

                        international disaster assistance

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

                               debt restructuring

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

             micro and small enterprise development program account

          For the cost of direct loans and loan guarantees, $1,500,000, as
    authorized by section 108 of the Foreign Assistance Act of 1961, as
    amended: Provided, That such costs shall be as defined in section 502 of
    the Congressional Budget Act of 1974: Provided further, That guarantees
    of loans made under this heading in support

    [[Page 110 STAT. 3009-127]]

    of microenterprise activities may guarantee up to 70 percent of the
    principal amount of any such loans notwithstanding section 108 of the
    Foreign Assistance Act of 1961. In addition, for administrative expenses
    to carry out programs under this heading, $500,000, all of which may be
    transferred to and merged with the appropriation for Operating Expenses
    of the Agency for International Development: Provided further, That
    funds made available under this heading shall remain available until
    September 30, 1998.

                        housing guaranty program account

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

          payment to the foreign service retirement and disability fund

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

         operating expenses of the agency for international development

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

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

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

    [[Page 110 STAT. 3009-128]]

                       Other Bilateral Economic Assistance

                              economic support fund

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

                         international fund for ireland

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

               assistance for eastern europe and the baltic states

          (a) For necessary expenses to carry out the provisions of the
    Foreign Assistance Act of 1961 and the Support for East European
    Democracy (SEED) Act of 1989, $475,000,000, to remain available until
    September 30, 1998, which shall be available, notwithstanding any other
    provision of law, for economic assistance and for related programs for
    Eastern Europe and the Baltic States.
          (b) Funds appropriated under this heading or in prior
    appropriations Acts that are or have been made available for an
    Enterprise Fund may be deposited by such Fund in interest-bearing
    accounts prior to the Fund's disbursement of such funds for program
    purposes. The Fund may retain for such program purposes any interest
    earned on such deposits without returning such interest to the Treasury
    of the United States and without further appropriation by the Congress.
    Funds made available for Enterprise Funds

    [[Page 110 STAT. 3009-129]]

    shall be expended at the minimum rate necessary to make timely payment
    for projects and activities.
          (c) Funds appropriated under this heading shall be considered to
    be economic assistance under the Foreign Assistance Act of 1961 for
    purposes of making available the administrative authorities contained in
    that Act for the use of economic assistance.
          (d) None of the funds appropriated under this heading may be made
    available for new housing construction or repair or reconstruction of
    existing housing in Bosnia and Herzegovina unless directly related to
    the efforts of United States troops to promote peace in said country.
          (e) With regard to funds appropriated or otherwise made available
    under this heading for the economic revitalization program in Bosnia and
    Herzegovina, and local currencies generated by such funds (including the
    conversion of funds appropriated under this heading into currency used
    by Bosnia and Herzegovina as local currency and local currency returned
    or repaid under such program)--
                (1) the Administrator of the Agency for International
            Development shall provide written approval for grants and loans
            prior to the obligation and expenditure of funds for such
            purposes, and prior to the use of funds that have been returned
            or repaid to any lending facility or grantee; and
                (2) the provisions of section 531 of this Act shall apply.
          (f) With regard to funds appropriated under this heading that are
    made available for economic revitalization programs in Bosnia and
    Herzegovina, 50 percent of such funds shall not be available for
    obligation unless the President determines and certifies to the
    Committees on Appropriations that the Federation of Bosnia and
    Herzegovina has complied with article III of annex 1-A of the General
    Framework Agreement for Peace in Bosnia and Herzegovina concerning the
    withdrawal of foreign forces, and that intelligence cooperation on
    training, investigations, and related activities between Iranian
    officials and Bosnian officials has been terminated.

      assistance for the new independent states of the former soviet union

          (a) For necessary expenses to carry out the provisions of chapter
    11 of part I of the Foreign Assistance Act of 1961 and the FREEDOM
    Support Act, for assistance for the new independent states of the former
    Soviet Union and for related programs, $625,000,000, to remain available
    until September 30, 1998: Provided, That the provisions of such chapter
    shall apply to funds appropriated by this paragraph.
          (b) None of the funds appropriated under this heading shall be
    transferred to the Government of Russia--
                (1) unless that Government is making progress in
            implementing comprehensive economic reforms based on market
            principles, private ownership, negotiating repayment of
            commercial debt, respect for commercial contracts, and equitable
            treatment of foreign private investment; and
                (2) if that Government applies or transfers United States
            assistance to any entity for the purpose of expropriating or
            seizing ownership or control of assets, investments, or
            ventures.
          (c) Funds may be furnished without regard to subsection (b) if the
    President determines that to do so is in the national interest.

    [[Page 110 STAT. 3009-130]]

          (d) None of <<NOTE: 22 USC 5814 note.>>  the funds appropriated
    under this heading shall be made available to any government of the new
    independent states of the former Soviet Union if that government directs
    any action in violation of the territorial integrity or national
    sovereignty of any other new independent state, such as those violations
    included in the Helsinki Final Act: Provided, That such funds may be
    made available without regard to the restriction in this subsection if
    the President determines that to do so is in the national security
    interest of the United States: Provided further, That the restriction of
    this subsection shall not apply to the use of such funds for the
    provision of assistance for purposes of humanitarian, disaster and
    refugee relief.
          (e) None of the funds appropriated under this heading for the new
    independent states of the former Soviet Union shall be made available
    for any state to enhance its military capability: Provided, That
    restriction does not apply to demilitarization or nonproliferation
    programs.
          (f) Funds appropriated under this heading shall be subject to the
    regular notification procedures of the Committees on Appropriations.
          (g) Funds made available in this Act for assistance to the new
    independent states of the former Soviet Union shall be subject to the
    provisions of section 117 (relating to environment and natural
    resources) of the Foreign Assistance Act of 1961.
          (h)(1) Of the funds appropriated under title II of this Act,
    including funds appropriated under this heading, not less than
    $10,000,000 shall be available only for assistance for Mongolia, of
    which amount not less than $6,000,000 shall be available only for the
    Mongolian energy sector.
          (2) Funds made available for assistance for Mongolia may be made
    available in accordance with the purposes and utilizing the authorities
    provided in chapter 11 of part I of the Foreign Assistance Act of 1961.
          (i) Funds made available in this Act for assistance to the New
    Independent States of the former Soviet Union shall be provided to the
    maximum extent feasible through the private sector, including small- and
    medium-size businesses, entrepreneurs, and others with indigenous
    private enterprises in the region, intermediary development
    organizations committed to private enterprise, and private voluntary
    organizations: Provided, That grantees and contractors should, to the
    maximum extent possible, place in key staff positions specialists with
    prior on the ground expertise in the region of activity and fluency in
    one of the local languages.
          (j) In issuing new task orders, entering into contracts, or making
    grants, with funds appropriated under this heading or in prior
    appropriations Acts, for projects or activities that have as one of
    their primary purposes the fostering of private sector development, the
    Coordinator for United States Assistance to the New Independent States
    and the implementing agency shall encourage the participation of and
    give significant weight to contractors and grantees who propose
    investing a significant amount of their own resources (including
    volunteer services and in-kind contributions) in such projects and
    activities.
          (k) Of the funds made available under this heading, not less than
    $225,000,000 shall be made available for Ukraine, of which funds not
    less than $25,000,000 shall be made available to carry out United States
    decommissioning obligations regarding the

    [[Page 110 STAT. 3009-131]]

    Chornobyl plant made in the Memorandum of Understanding between the
    Government of Ukraine and the G-7 Group: Provided, That not less than
    $35,000,000 shall be made available for agricultural projects, including
    those undertaken through the Food Systems Restructuring Program, which
    leverage private sector resources with United States Government
    assistance: Provided further, That $5,000,000 shall be available for a
    small business incubator project: Provided further, That $5,000,000
    shall be made available for screening and treatment of childhood mental
    and physical illnesses related to Chornobyl radiation: Provided further,
    That $5,000,000 shall be available only for a land and resource
    management institute to identify nuclear contamination at Chornobyl:
    Provided further, That $15,000,000 shall be available for the legal
    restructuring necessary to support a decentralized market-oriented
    economic system, including enactment of necessary substantive commercial
    law, implementation of reforms necessary to establish an independent
    judiciary and bar, legal education for judges, attorneys, and law
    students, and education of the public designed to promote understanding
    of a law-based economy.
          (l) Of the funds made available for Ukraine, under this Act and
    Public Law 104-107, not less than $50,000,000 shall be made available to
    improve safety at nuclear reactors: Provided, That of this amount
    $20,000,000 shall be provided for the purchase and installation of, and
    training for, safety parameter display or control systems at all
    operational nuclear reactors: Provided further, That of this amount,
    $20,000,000 shall be made available for the purchase, construction,
    installation and training for Full Scope and Analytical/Engineering
    simulators: Provided further, That of this amount funds shall be made
    available to conduct Safety Analysis Reports at all operational nuclear
    reactors.
          (m) Of the funds made available by this Act, not less than
    $95,000,000 shall be made available for Armenia.
          (n) Funds appropriated under this heading or in prior
    appropriations Acts that are or have been made available for an
    Enterprise Fund may be deposited by such Fund in interest-bearing
    accounts prior to the disbursement of such funds by the Fund for program
    purposes. The Fund may retain for such program proposes any interest
    earned on such deposits without returning such interest to the Treasury
    of the United States and without further appropriation by the Congress.
    Funds made available for Enterprise Funds shall be expended at the
    minimum rate necessary to make timely payment for projects and
    activities.
          (o)(1) None of the funds appropriated under this heading may be
    made available for Russia unless the President determines and certifies
    in writing to the Committees on Appropriations that the Government of
    Russia has terminated implementation of arrangements to provide Iran
    with technical expertise, training, technology, or equipment necessary
    to develop a nuclear reactor or related nuclear research facilities or
    programs.
          (2) Paragraph (1) shall not apply if the President determines that
    making such funds available is important to the national security
    interest of the United States. Any such determination shall cease to be
    effective six months after being made unless the President determines
    that its continuation is important to the national security interest of
    the United States.

    [[Page 110 STAT. 3009-132]]

          (p) Of the funds made available under this heading, not less than
    $10,000,000 shall be made available for a United States contribution to
    the Trans-Caucasus Enterprise Fund: Provided, That to further the
    development of the private sector in the Trans-Caucasus, such amount and
    amounts appropriated for purposes of subsection (t) under the heading
    ``Assistance for the New Independent States of the Former Soviet Union''
    in Public Law 104-107 may be invested in a Trans-Caucasus Enterprise
    Fund or, notwithstanding the provisions of such subsection, invested in
    other funds established by public or private organizations, or
    transferred to the Overseas Private Investment Corporation to be
    available, subject to the requirements of the Federal Credit Reform Act,
    to subsidize the costs of direct and guaranteed loans.
          (q)(1) Funds appropriated under this heading may not be made
    available for the Government of Ukraine if the President determines and
    reports to the Committees on Appropriations that the Government of
    Ukraine is engaged in military cooperation with the Government of Libya.
          (2) Paragraph (1) shall not apply if the President determines that
    making such funds available is important to the national security
    interest of the United States. Any such determination shall cease to be
    effective six months after being made unless the President determines
    that its continuation is important to the national security interest of
    the United States.
          (r) Of the funds appropriated under this heading, not less than
    $15,000,000 should be available only for a family planning program for
    the New Independent States of the former Soviet Union comparable to the
    family planning program currently administered by the Agency for
    International Development in the Central Asian Republics and focusing on
    population assistance which provides an alternative to abortion.
          (s) Funds made available under this Act or any other Act (other
    than assistance under title V of the FREEDOM Support Act and section
    1424 of the ``National Defense Authorization Act for Fiscal Year 1997'')
    may not be provided for assistance to the Government of Azerbaijan until
    the President determines, and so reports to the Congress, that the
    Government of Azerbaijan is taking demonstrable steps to cease all
    blockades and other offensive uses of force against Armenia and Nagorno-
    Karabakh.
          (t) Of the funds appropriated under this heading, not less than
    $2,500,000 shall be made available for the American-Russian Center.

                               Independent Agency

                                   peace corps

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

    [[Page 110 STAT. 3009-133]]

                               Department of State

                         international narcotics control

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

                        migration and refugee assistance

          For expenses, not otherwise provided for, necessary to enable the
    Secretary of State to provide, as authorized by law, a contribution to
    the International Committee of the Red Cross, assistance to refugees,
    including contributions to the International Organization for Migration
    and the United Nations High Commissioner for Refugees, and other
    activities to meet refugee and migration needs; salaries and expenses of
    personnel and dependents as authorized by the Foreign Service Act of
    1980; allowances as authorized by sections 5921 through 5925 of title 5,
    United States Code; purchase and hire of passenger motor vehicles; and
    services as authorized by section 3109 of title 5, United States Code,
    $650,000,000: Provided, That not more than $12,000,000 shall be
    available for administrative expenses: Provided further, That not less
    than $80,000,000 shall be made available for refugees from the former
    Soviet Union and Eastern Europe and other refugees resettling in Israel.

                         refugee resettlement assistance

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

          united states emergency refugee and migration assistance fund

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

    [[Page 110 STAT. 3009-134]]

    of 1962 which would limit the amount of funds which could be
    appropriated for this purpose.

         nonproliferation, anti-terrorism, demining and related programs

          For necessary expenses for nonproliferation, anti-terrorism and
    related programs and activities, $133,000,000, to carry out the
    provisions of chapter 8 of part II of the Foreign Assistance Act of 1961
    for anti-terrorism assistance, section 504 of the FREEDOM Support Act
    for the Nonproliferation and Disarmament Fund, section 23 of the Arms
    Export Control Act for demining activities, notwithstanding any other
    provision of law, including activities implemented through
    nongovernmental and international organizations, section 301 of the
    Foreign Assistance Act of 1961 for a voluntary contribution to the
    International Atomic Energy Agency (IAEA) and a voluntary contribution
    to the Korean Peninsula Energy Development Organization (KEDO), and for
    the acquisition and provision of goods and services, or for grants to
    Israel necessary to support the eradication of terrorism in and around
    Israel: Provided, That of this amount not to exceed $15,000,000, to
    remain available until expended, may be made available for the
    Nonproliferation and Disarmament Fund, notwithstanding any other
    provision of law, to promote bilateral and multilateral activities
    relating to nonproliferation and disarmament: Provided further, That
    such funds may also be used for such countries other than the new
    independent states of the former Soviet Union and international
    organizations when it is in the national security interest of the United
    States to do so: Provided further, That such funds shall be subject to
    the regular notification procedures of the Committees on Appropriations:
    Provided further, That funds appropriated under this heading may be made
    available for the International Atomic Energy Agency only if the
    Secretary of State determines (and so reports to the Congress) that
    Israel is not being denied its right to participate in the activities of
    that Agency: Provided further, That not to exceed $25,000,000 may be
    made available to the Korean Peninsula Energy Development Organization
    (KEDO) only for the administrative expenses and heavy fuel oil costs
    associated with the Agreed Framework: Provided further, That such funds
    may be obligated to KEDO only if, prior to such obligation of funds, the
    President certifies and so reports to Congress that (1)(A) the United
    States is taking steps to assure that progress is made on the
    implementation of the January 1, 1992, Joint Declaration on the
    Denuclearization of the Korean Peninsula and the implementation of the
    North-South dialogue, and (B) North Korea is complying with the other
    provisions of the Agreed Framework between North Korea and the United
    States and with the Confidential Minute; (2) North Korea is cooperating
    fully in the canning and safe storage of all spent fuel from its
    graphite-moderated nuclear reactors and that such canning and safe
    storage is scheduled to be completed by the end of fiscal year 1997; and
    (3) North Korea has not significantly diverted assistance provided by
    the United States for purposes for which it was not intended: Provided
    further, That the President may waive the certification requirements of
    the preceding proviso if the President determines that it is vital to
    the national security interests of the United States: Provided further,
    That no funds may be obligated for KEDO until 30 calendar days after
    submission to Congress of the waiver

    [[Page 110 STAT. 3009-135]]

    permitted under the preceding proviso: Provided further, That before
    obligating any funds for KEDO, the President shall report to Congress on
    (1) the cooperation of North Korea in the process of returning to the
    United States the remains of United States military personnel who are
    listed as missing in action as a result of the Korean conflict
    (including conducting joint field activities with the United States);
    (2) violations of the military armistice agreement of 1953; (3) the
    actions which the United States is taking to assure that North Korea is
    consistently taking steps to implement the Joint Declaration on
    Denuclearization of the Korean Peninsula and engage in North-South
    dialogue; and (4) all instances of non-compliance with the Agreed
    Framework between North Korea and the United States and the Confidential
    Minute, including diversion of heavy fuel oil: Provided further, That
    the obligation of such funds shall be subject to the regular
    notification procedures of the Committees on Appropriations: Provided
    further, That the Secretary of State shall submit to the appropriate
    congressional committees an annual report (to be submitted with the
    annual presentation for appropriations) providing a full and detailed
    accounting of the fiscal year request for the United States contribution
    to KEDO, the expected operating budget of the Korean Peninsula Energy
    Development Organization, to include proposed annual costs associated
    with heavy fuel oil purchases and other related activities, and the
    amount of funds pledged by other donor nations and organizations to
    support KEDO activities on a per country basis.

                         TITLE III--MILITARY ASSISTANCE

                       Funds Appropriated to the President

                  international military education and training

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

                       foreign military financing program

          For expenses necessary for grants to enable the President to carry
    out the provisions of section 23 of the Arms Export Control Act,
    $3,164,000,000: Provided, That of the funds appropriated by this
    paragraph not less than $1,800,000,000 shall be available for grants
    only for Israel, and not less than $1,300,000,000 shall be available for
    grants only for Egypt: Provided further, That the funds appropriated by
    this paragraph for Israel shall be disbursed within thirty days of
    enactment of this Act or by October 31, 1996, whichever is later:
    Provided further, That to the extent that the Government of Israel
    requests that funds be used for such purposes, grants made available for
    Israel by this paragraph shall, as agreed by Israel and the United
    States, be available for advanced weapons systems, of which not less
    than $475,000,000 shall be available for the procurement in Israel of
    defense articles and

    [[Page 110 STAT. 3009-136]]

    defense services, including research and development: Provided further,
    That of the funds made available under this paragraph, $30,000,000 shall
    be available for assistance on a grant basis for Poland, Hungary, and
    the Czech Republic to carry out title II of Public Law 103-477 and
    section 585 of Public Law 104-107: Provided further, That funds made
    available under this paragraph shall be nonrepayable notwithstanding any
    requirement in section 23 of the Arms Export Control Act: Provided
    further, That, for the purpose only of providing support for NATO
    expansion and the Warsaw Initiative Program, of the funds appropriated
    by this Act under the headings ``Assistance for Eastern Europe and the
    Baltic States'' and ``Assistance for the New Independent States of the
    Former Soviet Union'', up to a total of $7,000,000 may be transferred,
    notwithstanding any other provision of law, to the funds appropriated
    under this paragraph: Provided further, That none of the funds made
    available under this heading shall be available for any non-NATO country
    participating in the Partnership for Peace Program except through the
    regular notification procedures of the Committees on Appropriations.
          For the cost, as defined in section 502 of the Congressional
    Budget Act of 1974, of direct loans authorized by section 23 of the Arms
    Export Control Act as follows: cost of direct loans, $60,000,000:
    Provided, That these funds are available to subsidize gross obligations
    for the principal amount of direct loans of not to exceed $540,000,000:
    Provided further, That the rate of interest charged on such loans shall
    be not less than the current average market yield on outstanding
    marketable obligations of the United States of comparable maturities:
    Provided further, That of the funds appropriated under this paragraph
    $20,000,000 shall be made available to Poland, Hungary, and the Czech
    Republic: Provided further, That funds appropriated under this heading
    shall be made available for Greece and Turkey only on a loan basis, and
    the principal amount of direct loans for each country shall not exceed
    the following: $122,500,000 only for Greece and $175,000,000 only for
    Turkey.
          None of the funds made available under this heading shall be
    available to finance the procurement of defense articles, defense
    services, or design and construction services that are not sold by the
    United States Government under the Arms Export Control Act unless the
    foreign country proposing to make such procurements has first signed an
    agreement with the United States Government specifying the conditions
    under which such procurements may be financed with such funds: Provided,
    That all country and funding level increases in allocations shall be
    submitted through the regular notification procedures of section 515 of
    this Act: Provided further, That funds made available under this heading
    shall be obligated upon apportionment in accordance with paragraph
    (5)(C) of title 31, United States Code, section 1501(a): Provided
    further, That none of the funds appropriated under this heading shall be
    available for Zaire, Sudan, Liberia, and Guatemala: Provided further,
    That funds made available under this heading may be used,
    notwithstanding any other provision of law, for activities related to
    the clearance of landmines and unexploded ordnance, and may include
    activities implemented through nongovernmental and international
    organizations: Provided further, That only those countries for which
    assistance was justified for the ``Foreign Military Sales Financing
    Program'' in the fiscal year 1989 congressional presentation for
    security assistance programs may utilize funds made available

    [[Page 110 STAT. 3009-137]]

    under this heading for procurement of defense articles, defense services
    or design and construction services that are not sold by the United
    States Government under the Arms Export Control Act: Provided further,
    That, subject to the regular notification procedures of the Committees
    on Appropriations, funds made available under this heading for the cost
    of direct loans may also be used to supplement the funds available under
    this heading for grants, and funds made available under this heading for
    grants may also be used to supplement the funds available under this
    heading for the cost of direct loans: Provided further, That funds
    appropriated under this heading shall be expended at the minimum rate
    necessary to make timely payment for defense articles and services:
    Provided further, That not more than $23,250,000 of the funds
    appropriated under this heading may be obligated for necessary expenses,
    including the purchase of passenger motor vehicles for replacement only
    for use outside of the United States, for the general costs of
    administering military assistance and sales: Provided further, That not
    more than $355,000,000 of funds realized pursuant to section 21(e)(1)(A)
    of the Arms Export Control Act may be obligated for expenses incurred by
    the Department of Defense during fiscal year 1997 pursuant to section
    43(b) of the Arms Export Control Act, except that this limitation may be
    exceeded only through the regular notification procedures of the
    Committees on Appropriations.

                   TITLE IV--MULTILATERAL ECONOMIC ASSISTANCE

                       funds appropriated to the president

                      international financial institutions

         contribution to the international bank for reconstruction and
                                   development

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

            contribution to the international development association

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

              contribution to the international finance corporation

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

    [[Page 110 STAT. 3009-138]]

               contribution to the inter-american development bank

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

                  limitation on callable capital subscriptions

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

    contribution to the enterprise for the americas multilateral investment
                                      fund

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

                   contribution to the asian development bank

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

                  limitation on callable capital subscriptions

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

                   contribution to the asian development fund

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

      contribution to the european bank for reconstruction and development

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

                  limitation on callable capital subscriptions

          The United States Governor of the European Bank for Reconstruction
    and Development may subscribe without fiscal year

    [[Page 110 STAT. 3009-139]]

    limitation to the callable capital portion of the United States share of
    such capital stock in an amount not to exceed $27,805,043.

                         North American Development Bank

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

                  limitation on callable capital subscriptions

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

                    international organizations and programs

          For necessary expenses to carry out the provisions of section 301
    of the Foreign Assistance Act of 1961, and of section 2 of the United
    Nations Environment Program Participation Act of 1973, $169,950,000:
    Provided, That none of the funds appropriated under this heading shall
    be made available for the United Nations Fund for Science and
    Technology: Provided further, That none of the funds appropriated under
    this heading that are made available to the United Nations Population
    Fund (UNFPA) shall be made available for activities in the People's
    Republic of China: Provided further, That not more than $25,000,000 of
    the funds appropriated under this heading may be made available to the
    UNFPA: Provided further, That not more than one-half of this amount may
    be provided to UNFPA before March 1, 1997, and that no later than
    February 15, 1997, the Secretary of State shall submit a report to the
    Committees on Appropriations indicating the amount UNFPA is budgeting
    for the People's Republic of China in 1997: Provided further, That any
    amount UNFPA plans to spend in the People's Republic of China in 1997
    shall be deducted from the amount of funds provided to UNFPA after March
    1, 1997, pursuant to the previous provisos: Provided further, That with
    respect to any funds appropriated under this heading that are made
    available to UNFPA, UNFPA shall be required to maintain such funds in a
    separate account and not commingle them with any other funds: Provided
    further, That none of the funds appropriated under this heading may be
    made available to the Korean Peninsula Energy Development Organization
    (KEDO) or the International Atomic Energy Agency (IAEA).

                           TITLE V--GENERAL PROVISIONS

                  obligations during last month of availability

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

    [[Page 110 STAT. 3009-140]]

          prohibition of bilateral funding for international financial
                                  institutions

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

                        limitation on residence expenses

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

                             limitation on expenses

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

                    limitation on representational allowances

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

                     prohibition on financing nuclear goods

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

    [[Page 110 STAT. 3009-141]]

            prohibition against direct funding for certain countries

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

                                 military coups

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

                           transfers between accounts

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

                       deobligation/reobligation authority

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

                              availability of funds

          Sec. 511. No part of any appropriation contained in this Act shall
    remain available for obligation after the expiration of the

    [[Page 110 STAT. 3009-142]]

    current fiscal year unless expressly so provided in this Act: Provided,
    That funds appropriated for the purposes of chapters 1, 8, and 11 of
    part I, section 667, and chapter 4 of part II of the Foreign Assistance
    Act of 1961, as amended, and funds provided under the heading
    ``Assistance for Eastern Europe and the Baltic States'', shall remain
    available until expended if such funds are initially obligated before
    the expiration of their respective periods of availability contained in
    this Act: Provided further, That, notwithstanding any other provision of
    this Act, any funds made available for the purposes of chapter 1 of part
    I and chapter 4 of part II of the Foreign Assistance Act of 1961 which
    are allocated or obligated for cash disbursements in order to address
    balance of payments or economic policy reform objectives, shall remain
    available until expended: Provided further, That the report required by
    section 653(a) of the Foreign Assistance Act of 1961 shall designate for
    each country, to the extent known at the time of submission of such
    report, those funds allocated for cash disbursement for balance of
    payment and economic policy reform purposes.

                limitation on assistance to countries in default

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

                               commerce and trade

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

    [[Page 110 STAT. 3009-143]]

    export which would compete with a similar commodity grown or produced in
    the United States: Provided, That this subsection shall not prohibit--
                (1) activities designed to increase food security in
            developing countries where such activities will not have a
            significant impact in the export of agricultural commodities of
            the United States; or
                (2) research activities intended primarily to benefit
            American producers.

                               surplus commodities

          Sec. 514. The Secretary of the Treasury <<NOTE: 22 USC 262h
    note.>>  shall instruct the United States Executive Directors of the
    International Bank for Reconstruction and Development, the International
    Development Association, the International Finance Corporation, the
    Inter-American Development Bank, the International Monetary Fund, the
    Asian Development Bank, the Inter-American Investment Corporation, the
    North American Development Bank, the European Bank for Reconstruction
    and Development, the African Development Bank, and the African
    Development Fund to use the voice and vote of the United States to
    oppose any assistance by these institutions, using funds appropriated or
    made available pursuant to this Act, for the production or extraction of
    any commodity or mineral for export, if it is in surplus on world
    markets and if the assistance will cause substantial injury to United
    States producers of the same, similar, or competing commodity.

                            notification requirements

          Sec. 515. For the purposes of providing the Executive Branch with
    the necessary administrative flexibility, none of the funds made
    available under this Act for ``Child Survival and Disease Programs
    Fund'', ``Development Assistance'', ``Debt restructuring'',
    ``International organizations and programs'', ``Trade and Development
    Agency'', ``International narcotics control'', ``Assistance for Eastern
    Europe and the Baltic States'', ``Assistance for the New Independent
    States of the Former Soviet Union'', ``Economic Support Fund'',
    ``Peacekeeping operations'', ``Operating expenses of the Agency for
    International Development'', ``Operating expenses of the Agency for
    International Development Office of Inspector General'',
    ``Nonproliferation, anti-terrorism, demining and related programs'',
    ``Foreign Military Financing Program'', ``International military
    education and training'', ``Inter-American Foundation'', ``African
    Development Foundation'', ``Peace Corps'', ``Migration and refugee
    assistance'', shall be available for obligation for activities,
    programs, projects, type of materiel assistance, countries, or other
    operations not justified or in excess of the amount justified to the
    Appropriations Committees for obligation under any of these specific
    headings unless the Appropriations Committees of both Houses of Congress
    are previously notified fifteen days in advance: Provided, That the
    President shall not enter into any commitment of funds appropriated for
    the purposes of section 23 of the Arms Export Control Act for the
    provision of major defense equipment, other than conventional
    ammunition, or other major defense items defined to be aircraft, ships,
    missiles, or combat vehicles, not previously justified to Congress or 20
    per centum in excess of the quantities justified to Congress unless the
    Committees on Appropriations are notified

    [[Page 110 STAT. 3009-144]]

    fifteen days in advance of such commitment: Provided further, That this
    section shall not apply to any reprogramming for an activity, program,
    or project under chapter 1 of part I of the Foreign Assistance Act of
    1961 of less than 10 per centum of the amount previously justified to
    the Congress for obligation for such activity, program, or project for
    the current fiscal year: Provided further, That the requirements of this
    section or any similar provision of this Act or any other Act, including
    any prior Act requiring notification in accordance with the regular
    notification procedures of the Committees on Appropriations, may be
    waived if failure to do so would pose a substantial risk to human health
    or welfare: Provided further, That in case of any such waiver,
    notification to the Congress, or the appropriate congressional
    committees, shall be provided as early as practicable, but in no event
    later than three days after taking the action to which such notification
    requirement was applicable, in the context of the circumstances
    necessitating such waiver: Provided further, That any notification
    provided pursuant to such a waiver shall contain an explanation of the
    emergency circumstances.
          Drawdowns made pursuant to section 506(a)(2) of the Foreign
    Assistance Act of 1961 shall be subject to the regular notification
    procedures of the Committees on Appropriations.

    limitation on availability of funds for international organizations and
                                    programs

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

                   economic support fund assistance for israel

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

    [[Page 110 STAT. 3009-145]]

    debt repayment (interest and principal) from Israel to the United States
    Government in recognition that such a principle serves United States
    interests in the region.

       prohibition on funding for abortions and involuntary sterilization

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

                      authorization for population planning

          Sec. 518A. (a) None of the funds made available in title II of
    this Act for population planning activities or other population
    assistance pursuant to section 104(b) of the Foreign Assistance Act or
    any other provision of law may be obligated or expended prior to July 1,
    1997.
          (b) Not to exceed $385,000,000 of the funds appropriated in title
    II of this Act may be made available for population planning activities
    or other population assistance.
          (c) Such funds may be apportioned only on a monthly basis, and
    such monthly apportionments may not exceed 8 percent of the total
    available for such activities.
          (d) Not later than February 1, 1997, the President shall submit a
    finding to the Congress regarding the impact of the limitation on
    obligations imposed by subsection (a) of this section on the proper
    functioning of the population planning program. If such Presidential
    finding indicates that the limitation is having a negative impact on the
    proper functioning of the population planning program, funds for
    population planning activities and other population assistance referred
    to in subsection (a) may be made available beginning March 1, 1997,
    notwithstanding the July 1, 1997, limitation set forth in subsection
    (a), if the Congress approves such finding by adoption of a joint
    resolution of approval not later than February 28, 1997, in accordance
    with subsection (e).
          (e) Congressional Review Procedure.--
                (1) This subsection is enacted by Congress--
                        (A) as an exercise of the rulemaking power of the
                    House of Representatives and the Senate, respectively,
                    and as such it is deemed a part of the rules of each
                    House,

    [[Page 110 STAT. 3009-146]]

                    respectively, but applicable only with respect to the
                    procedure to be followed in that House in the case of
                    resolutions described by paragraph (2) of this
                    subsection; and it supersedes other rules only to the
                    extent that it is inconsistent therewith; and
                        (B) with full recognition of the constitutional
                    right of either House to change the rules (so far as
                    those rules relate to the procedure of that House) at
                    any time, in the same manner, and to the same extent as
                    in the case of any other rule of such House.
                (2) For purposes of this section, the term ``resolution''
            means a joint resolution, the text of which is as follows:
            ``That the House of Representatives and Senate approve the
            Presidential finding, submitted to the Congress on XXXXX, that
            the limitation on obligations imposed by section 518A(a) of the
            Foreign Operations, Export Financing, and Related Programs
            Appropriations Act, 1997, is having a negative impact on the
            proper functioning of the population planning program.''. The
            blank space therein shall be filled with the date on which the
            President submits his finding to the House of Representatives
            and the Senate.
                (3) On the day on which the President submits a finding
            under this section to the Congress, a joint resolution described
            in paragraph (2) shall be introduced (by request) in the House
            by the majority leader of the House, for himself and the
            minority leader of the House, or by Members of the House
            designated by the majority leader and minority leader of the
            House; and shall be introduced (by request) in the Senate by the
            majority leader of the Senate, for himself and the minority
            leader of the Senate, or by Members of the Senate designated by
            the majority leader and minority leader of the Senate. If either
            House is not in session on the day on which the President
            submits such finding, the resolution shall be introduced in that
            House, as provided in the preceding sentence, on the first day
            thereafter on which that House is in session. A resolution once
            introduced in the House with respect to a Presidential finding
            under this section shall be referred to 1 or more committees
            (and all resolutions with respect to the same Presidential
            finding shall be referred to the same committee or committees)
            by the Speaker of the House of Representatives. A resolution
            once introduced in the Senate with respect to a Presidential
            finding under this section shall be referred to the appropriate
            committee (and all resolutions with respect to the same
            Presidential finding shall be referred to the same committee) by
            the President of the Senate.
                (4) No amendment to a resolution introduced under this
            section shall be in order in either the House of Representatives
            or the Senate; and no motion to suspend the application of this
            subsection shall be in order in either House, nor shall it be in
            order in either House for the presiding officer to entertain a
            request to suspend the application of this subsection by
            unanimous consent.
                (5)(A) If any committee to which a resolution with respect
            to a Presidential finding under this section has been referred
            has not reported it at the end of 5 calendar days after its
            introduction, such committee shall be automatically discharged
            from further consideration of the resolution and it shall be

    [[Page 110 STAT. 3009-147]]

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

                              reporting requirement

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

    [[Page 110 STAT. 3009-148]]

                        special notification requirements

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

                  definition of program, project, and activity

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

                       child survival and aids activities

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

            prohibition against indirect funding to certain countries

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

    [[Page 110 STAT. 3009-149]]

                               reciprocal leasing

          Sec. 524. Section 61(a) of the Arms <<NOTE: 22 USC 2796.>>  Export
    Control Act is amended by striking out ``1996'' and inserting in lieu
    thereof ``1997''.

                    notification on excess defense equipment

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

                            authorization requirement

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

           prohibition on bilateral assistance to terrorist countries

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

                     commercial leasing of defense articles

          Sec. 528. <<NOTE: 22 USC 2763 note.>> Notwithstanding any other
    provision of law, and subject to the regular notification procedures of
    the Committees on Appropriations, the authority of section 23(a) of the
    Arms Export Control Act may be used to provide financing to Israel,
    Egypt and NATO and major non-NATO allies for the procurement by leasing
    (including leasing with an option to purchase) of defense articles from
    United States commercial suppliers, not including Major Defense
    Equipment (other than helicopters and other types of aircraft having
    possible civilian application), if the President determines that there
    are compelling foreign policy or national security reasons for those
    defense articles being provided by

    [[Page 110 STAT. 3009-150]]

    commercial lease rather than by government-to-government sale under such
    Act.

                              competitive insurance

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

                       stingers in the persian gulf region

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

                              debt-for-development

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

                                separate accounts

          Sec. 531. (a) Separate Accounts <<NOTE: 22 USC 2359 note.>>  for
    Local Currencies.--(1) If assistance is furnished to the government of a
    foreign country under chapters 1 and 10 of part I or chapter 4 of part
    II of the Foreign Assistance Act of 1961 under agreements which result
    in the generation of local currencies of that country, the Administrator
    of the Agency for International Development shall--
                (A) require that local currencies be deposited in a separate
            account established by that government;
                (B) enter into an agreement with that government which sets
            forth--
                        (i) the amount of the local currencies to be
                    generated, and
                        (ii) the terms and conditions under which the
                    currencies so deposited may be utilized, consistent with
                    this section; and
                (C) establish by agreement with that government the
            responsibilities of the Agency for International Development and
            that government to monitor and account for deposits into and
            disbursements from the separate account.
          (2) Uses of Local Currencies.--As may be agreed upon with the
    foreign government, local currencies deposited in a separate account
    pursuant to subsection (a), or an equivalent amount of local currencies,
    shall be used only--

    [[Page 110 STAT. 3009-151]]

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

    [[Page 110 STAT. 3009-152]]

          (4) Exemption.--Nonproject sector assistance funds may be exempt
    from the requirements of subsection (b)(1) only through the notification
    procedures of the Committees on Appropriations.

      compensation for united states executive directors to international
                             financing institutions

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

              compliance with united nations sanctions against iraq

          Sec. 533. (a) Denial of Assistance.--None <<NOTE: 50 USC 1701
    note.>> of the funds appropriated or otherwise made available pursuant
    to this Act to carry out the Foreign Assistance Act of 1961 (including
    title IV of chapter 2 of part I, relating to the Overseas Private
    Investment Corporation) or the Arms Export Control Act may be used to
    provide assistance to any country that is not in compliance with the
    United Nations Security Council sanctions against Iraq, Serbia or
    Montenegro unless the President determines and so certifies to the
    Congress that--
                (1) such assistance is in the national interest of the
            United States;
                (2) such assistance will directly benefit the needy people
            in that country; or
                (3) the assistance to be provided will be humanitarian
            assistance for foreign nationals who have fled Iraq and Kuwait.
          (b) Import Sanctions.--If the President considers that the taking
    of such action would promote the effectiveness of the economic sanctions
    of the United Nations and the United States imposed with respect to
    Iraq, Serbia, or Montenegro, as the case may be, and is consistent with
    the national interest, the President may prohibit, for such a period of
    time as he considers appropriate, the importation into the United States
    of any or all products of any foreign country that has not prohibited--
                (1) the importation of products of Iraq, Serbia, or
            Montenegro into its customs territory, and
                (2) the export of its products to Iraq, Serbia, or
            Montenegro, as the case may be.

    [[Page 110 STAT. 3009-153]]

                competitive pricing for sales of defense articles

          Sec. 533A. Direct costs associated with meeting <<NOTE: 22 USC
    2762 note.>>  a foreign customer's additional or unique requirements
    will continue to be allowable under contracts under section 22(d) of the
    Arms Export Control Act. Loadings applicable to such direct costs shall
    be permitted at the same rates applicable to procurement of like items
    purchased by the Department of Defense for its own use.

                            pow/mia military drawdown

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

                      mediterranean excess defense articles

          Sec. 535. <<NOTE: 22 USC 2321j note.>>  For the four-year period
    beginning on October 1, 1996, the President shall ensure that excess
    defense articles will be made available under section 516 and 519 of the
    Foreign Assistance Act of 1961 consistent with the manner in which the
    President made available excess defense articles under those sections
    during the four-year period that began on October 1, 1992, pursuant to
    section 573(e) of the Foreign Operations, Export Financing, Related
    Programs Appropriations Act, 1990.

                               cash flow financing

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

    [[Page 110 STAT. 3009-154]]

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

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

                       impact on jobs in the united states

          Sec. 538. None of the funds appropriated by this Act may be
    obligated or expended to provide--
                (a) any financial incentive to a business enterprise
            currently located in the United States for the purpose of
            inducing such an enterprise to relocate outside the United
            States if such incentive or inducement is likely to reduce the
            number of employees of such business enterprise in the United
            States because United States production is being replaced by
            such enterprise outside the United States;
                (b) assistance for the purpose of establishing or developing
            in a foreign country any export processing zone or designated
            area in which the tax, tariff, labor, environment, and safety
            laws of that country do not apply, in part or in whole, to
            activities carried out within that zone or area, unless the
            President determines and certifies that such assistance is not
            likely to cause a loss of jobs within the United States; or
                (c) assistance for any project or activity that contributes
            to the violation of internationally recognized workers rights,
            as defined in section 502(a)(4) of the Trade Act of 1974, of
            workers in the recipient country, including any designated zone
            or area in that country: Provided, That in recognition that the
            application of this subsection should be commensurate with the
            level of development of the recipient country and sector, the
            provisions of this subsection shall not preclude assistance for
            the informal sector in such country, micro and small-scale
            enterprise, and smallholder agriculture.

                   authority to assist bosnia and herzegovina

          Sec. 539. (a) The President is authorized to direct the transfer,
    subject to prior notification of the Committees on Appropriations, to
    the Government of Bosnia and Herzegovina, without reimbursement, of
    defense articles from the stocks of the Department of Defense and
    defense services of the Department of Defense of an aggregate value of
    not to exceed $100,000,000 in fiscal years 1996 and 1997: Provided, That
    the President certifies in a timely fashion to the Congress that the
    transfer of such articles would assist that nation in self-defense and
    thereby promote the security and stability of the region.
          (b) Within 60 days of any transfer under the authority provided in
    subsection (a), and every 60 days thereafter, the President shall report
    in writing to the Speaker of the House of Representatives

    [[Page 110 STAT. 3009-155]]

    and the President pro tempore of the Senate concerning the articles
    transferred and the disposition thereof.
          (c) There are authorized to be appropriated to the President such
    sums as may be necessary to reimburse the applicable appropriation,
    fund, or account for defense articles provided under this section.

        restrictions on the termination of sanctions against serbia and
                                   montenegro

          Sec. 540. (a) Restrictions.--Notwithstanding <<NOTE: 50 USC 1701
    note.>>  any other provision of law, no sanction, prohibition, or
    requirement described in section 1511 of the National Defense
    Authorization Act for Fiscal Year 1994 (Public Law 103-160), with
    respect to Serbia or Montenegro, may cease to be effective, unless--
                (1) the President first submits to the Congress a
            certification described in subsection (b); and
                (2) the requirements of section 1511 of that Act are met.
          (b) Certification.--A certification described in this subsection
    is a certification that--
                (1) there is substantial progress toward--
                        (A) the realization of a separate identity for
                    Kosova and the right of the people of Kosova to govern
                    themselves; or
                        (B) the creation of an international protectorate
                    for Kosova;
                (2) there is substantial improvement in the human rights
            situation in Kosova;
                (3) international human rights observers are allowed to
            return to Kosova; and
                (4) the elected government of Kosova is permitted to meet
            and carry out its legitimate mandate as elected representatives
            of the people of Kosova.
          (c) Waiver Authority.--The President may waive the application in
    whole or in part, of subsection (a) if the President certifies to the
    Congress that the President has determined that the waiver is necessary
    to meet emergency humanitarian needs or to achieve a negotiated
    settlement of the conflict in Bosnia and Herzegovina that is acceptable
    to the parties.

                               special authorities

          Sec. 541. (a) Funds appropriated in title II of this Act that are
    made available for Afghanistan, Lebanon, and Cambodia, and for victims
    of war, displaced children, displaced Burmese, humanitarian assistance
    for Romania, and humanitarian assistance for the peoples of Bosnia and
    Herzegovina, Croatia, and Kosova, may be made available notwithstanding
    any other provision of law: Provided, That any such funds that are made
    available for Cambodia shall be subject to the provisions of section
    531(e) of the Foreign Assistance Act of 1961 and section 906 of the
    International Security and Development Cooperation Act of 1985: Provided
    further, That none of the funds appropriated by this Act may be made
    available for assistance for any country or organization that the
    Secretary of State determines is cooperating, tactically or
    strategically, with the Khmer Rouge in their military operations, or to
    the military of any country that is not acting vigorously to prevent its
    members from facilitating the export of timber from

    [[Page 110 STAT. 3009-156]]

    Cambodia by the Khmer Rouge: Provided further, That the Secretary of
    State shall submit a report to the Committees on Appropriations by
    February 1, 1997, on whether there are any countries, organizations, or
    militaries for which assistance is prohibited under the previous
    proviso, the basis for such conclusions and, if appropriate, the steps
    being taken to terminate assistance: Provided further, That the
    prohibition on assistance to the military of any country that is not
    acting vigorously to prevent its members from facilitating the export of
    timber from Cambodia by the Khmer Rouge may be waived by the President
    if he determines and reports to the Committees on Appropriations that it
    is important to the national security interest of the United States to
    do so.
          (b) Funds appropriated by this Act to carry out the provisions of
    sections 103 through 106 of the Foreign Assistance Act of 1961 may be
    used, notwithstanding any other provision of law, for the purpose of
    supporting tropical forestry and energy programs aimed at reducing
    emissions of greenhouse gases, and for the purpose of supporting
    biodiversity conservation activities: Provided, That such assistance
    shall be subject to sections 116, 502B, and 620A of the Foreign
    Assistance Act of 1961.
          (c) During fiscal year 1997, the President may use up to
    $40,000,000 under the authority of section 451 of the Foreign Assistance
    Act of 1961, notwithstanding the funding ceiling contained in subsection
    (a) of that section.
          (d) The Agency for International Development may employ personal
    services contractors, notwithstanding any other provision of law, for
    the purpose of administering programs for the West Bank and Gaza.

             policy on terminating the arab league boycott of israel

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

    [[Page 110 STAT. 3009-157]]

                            anti-narcotics activities

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

                           eligibility for assistance

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

    [[Page 110 STAT. 3009-158]]

                                    earmarks

          Sec. 544A. (a) Funds appropriated by this Act which are earmarked
    may be reprogrammed for other programs within the same account
    notwithstanding the earmark if compliance with the earmark is made
    impossible by operation of any provision of this or any other Act or,
    with respect to a country with which the United States has an agreement
    providing the United States with base rights or base access in that
    country, if the President determines that the recipient for which funds
    are earmarked has significantly reduced its military or economic
    cooperation with the United States since enactment of the Foreign
    Operations, Export Financing, and Related Programs Appropriations Act,
    1991; however, before exercising the authority of this subsection with
    regard to a base rights or base access country which has significantly
    reduced its military or economic cooperation with the United States, the
    President shall consult with, and shall provide a written policy
    justification to the Committees on Appropriations: Provided, That any
    such reprogramming shall be subject to the regular notification
    procedures of the Committees on Appropriations: Provided further, That
    assistance that is reprogrammed pursuant to this subsection shall be
    made available under the same terms and conditions as originally
    provided.
          (b) In addition to the authority contained in subsection (a), the
    original period of availability of funds appropriated by this Act and
    administered by the Agency for International Development that are
    earmarked for particular programs or activities by this or any other Act
    shall be extended for an additional fiscal year if the Administrator of
    such agency determines and reports promptly to the Committees on
    Appropriations that the termination of assistance to a country or a
    significant change in circumstances makes it unlikely that such
    earmarked funds can be obligated during the original period of
    availability: Provided, That such earmarked funds that are continued
    available for an additional fiscal year shall be obligated only for the
    purpose of such earmark.

                              ceilings and earmarks

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

                     prohibition on publicity or propaganda

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

                            use of american resources

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

    [[Page 110 STAT. 3009-159]]

                prohibition of payments to united nations members

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

                               consulting services

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

                 private voluntary organizations--documentation

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

      prohibition on assistance to foreign governments that export lethal
       military equipment to countries supporting international terrorism

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

      withholding of assistance for parking fines owed by foreign countries

          Sec. 552. (a) In General.--Of the funds made available for a
    foreign country under part I of the Foreign Assistance Act of 1961, an
    amount equivalent to 110 percent of the total unpaid fully adjudicated
    parking fines and penalties owed to the District of Columbia by such
    country as of the date of enactment of this

    [[Page 110 STAT. 3009-160]]

    Act shall be withheld from obligation for such country until the
    Secretary of State certifies and reports in writing to the appropriate
    congressional committees that such fines and penalties are fully paid to
    the government of the District of Columbia.
          (b) Definition.--For purposes of this section, the term
    ``appropriate congressional committees'' means the Committee on Foreign
    Relations and the Committee on Appropriations of the Senate and the
    Committee on International Relations and the Committee on Appropriations
    of the House of Representatives.

         limitation on assistance for the plo for the west bank and gaza

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

                      export financing transfer authorities

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

                              war crimes tribunals

          Sec. 555. If the President determines that doing so will
    contribute to a just resolution of charges regarding genocide or other
    violations of international humanitarian law, the President may direct a
    drawdown pursuant to section 552(c) of the Foreign Assistance Act of
    1961, as amended, of up to $25,000,000 of commodities and services for
    the United Nations War Crimes Tribunal established with regard to the
    former Yugoslavia by the United Nations Security Council or such other
    tribunals or commissions as the Council may establish to deal with such
    violations, without regard to the ceiling limitation contained in
    paragraph (2) thereof: Provided, That the determination required under
    this section shall be in lieu of any determinations otherwise required
    under section 552(c): Provided further, That 60 days after the
    date <<NOTE: 22 USC 2656 note.>>  of enactment of this Act, and every
    180 days thereafter, the Secretary of State shall submit a report to the
    Committees on Appropriations describing the steps the United States
    Government is taking to collect information regarding allegations of
    genocide or other violations

    [[Page 110 STAT. 3009-161]]

    of international law in the former Yugoslavia and to furnish that
    information to the United Nations War Crimes Tribunal for the former
    Yugoslavia.

                                    landmines

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

                restrictions concerning the palestinian authority

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

                   prohibition of payment of certain expenses

          Sec. 558. None of the funds appropriated or otherwise made
    available by this Act under the heading ``international military
    education and training'' or ``foreign military financing program'' for
    Informational Program activities may be obligated or expended to pay
    for--
                (1) alcoholic beverages;
                (2) food (other than food provided at a military
            installation) not provided in conjunction with Informational
            Program trips where students do not stay at a military
            installation; or
                (3) entertainment expenses for activities that are
            substantially of a recreational character, including entrance
            fees at sporting events and amusement parks.

                             humanitarian corridors

          Sec. 559. The Foreign Assistance Act of 1961 is amended by adding
    immediately after section 620H the following new section:

    [[Page 110 STAT. 3009-162]]

          ``Sec. 620I. <<NOTE: 22 USC 2378-1.>> Prohibition on Assistance to
    Countries That Restrict United States Humanitarian Assistance.--
                ``(a) In general.--No assistance shall be furnished under
            this Act or the Arms Export Control Act to any country when it
            is made known to the President that the government of such
            country prohibits or otherwise restricts, directly or
            indirectly, the transport or delivery of United States
            humanitarian assistance.
                ``(b) Exception.--Assistance may be furnished without regard
            to the restriction in subsection (a) if the President determines
            that to do so is in the national security interest of the United
            States.
                ``(c) Notice.--Prior to making any determination under
            subsection (b), the President shall notify the Committee on
            International Relations, the Committee on Foreign Relations, and
            the Committees on Appropriations of the Senate and House of
            Representatives of his intention to make such a determination,
            the effective date of the determination, and the reasons for
            making the determination.''.

                          equitable allocation of funds

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

                purchase of american-made equipment and products

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

             limitation of funds for north american development bank

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

                      international development association

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

    [[Page 110 STAT. 3009-163]]

                       special debt relief for the poorest

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

                  authority to engage in debt buybacks or sales

          Sec. 565. (a) Loans Eligible for Sale, Reduction, or
    Cancellation.--
                (1) Authority to sell, reduce, or cancel certain loans.--
            Notwithstanding any other provision of law, the President may,
            in accordance with this section, sell to any eligible purchaser
            any concessional loan or portion thereof made before January 1,
            1995, pursuant to the Foreign Assistance Act of 1961, to the
            government of any eligible country as define in section 702(6)
            of that Act or on receipt of payment from an

    [[Page 110 STAT. 3009-164]]

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

                                     liberia

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

    [[Page 110 STAT. 3009-165]]

                                    guatemala

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

               sanctions against countries harboring war criminals

          Sec. 568. (a) Bilateral Assistance.--The President is authorized
    to withhold funds appropriated by this Act under the Foreign Assistance
    Act of 1961 or the Arms Export Control Act for any country described in
    subsection (c).
          (b) Multilateral Assistance.--The Secretary of the Treasury should
    instruct the United States executive directors of the international
    financial institutions to work in opposition to, and vote against, any
    extension by such institutions of financing or financial or technical
    assistance to any country described in subsection (c).
          (c) Sanctioned Countries.--A country described in this subsection
    is a country the government of which knowingly grants sanctuary to
    persons in its territory for the purpose of evading prosecution, where
    such persons--
                (1) have been indicted by the International Criminal
            Tribunal for the former Yugoslavia, the International Criminal
            Tribunal for Rwanda, or any other international tribunal with
            similar standing under international law, or
                (2) have been indicted for war crimes or crimes against
            humanity committed during the period beginning March 23, 1933
            and ending on May 8, 1945 under the direction of, or in
            association with--
                        (A) the Nazi government of Germany;
                        (B) any government in any area occupied by the
                    military forces of the Nazi government of Germany;
                        (C) any government which was established with the
                    assistance or cooperation of the Nazi government; or
          (D) any government which was an ally of the Nazi government of
    Germany.

                       limitation on assistance for haiti

          Sec. 569. (a) Limitation.--None of the funds appropriated or
    otherwise made available by this Act, may be provided to the Government
    of Haiti until the President reports to Congress that--

    [[Page 110 STAT. 3009-166]]

                (1) the Government is conducting thorough investigations of
            extrajudicial and political killings; and
                (2) the Government is cooperating with United States
            authorities in the investigations of political and extrajudicial
            killings.
          (b) Nothing in this section shall be construed to restrict the
    provision of humanitarian, development, or electoral assistance.
          (c) The President may waive the requirements of this section on a
    semiannual basis if he determines and certifies to the appropriate
    committees of Congress that it is in the national interest of the United
    States.

                               policy toward burma

          Sec. 570. (a) Until such time as the President determines and
    certifies to Congress that Burma has made measurable and substantial
    progress in improving human rights practices and implementing democratic
    government, the following sanctions shall be imposed on Burma:
                (1) Bilateral assistance.--There shall be no United States
            assistance to the Government of Burma, other than:
                        (A) humanitarian assistance,
                        (B) subject to the regular notification procedures
                    of the Committees on Appropriations, counter-narcotics
                    assistance under chapter 8 of part I of the Foreign
                    Assistance Act of 1961, or crop substitution assistance,
                    if the Secretary of State certifies to the appropriate
                    congressional committees that--
                              (i) the Government of Burma is fully
                          cooperating with United States counter-narcotics
                          efforts, and
                              (ii) the programs are fully consistent with
                          United States human rights concerns in Burma and
                          serve the United States national interest, and
                        (C) assistance promoting human rights and democratic
                    values.
                (2) Multilateral assistance.--The Secretary of the Treasury
            shall instruct the United States executive director of each
            international financial institution to vote against any loan or
            other utilization of funds of the respective bank to or for
            Burma.
                (3) Visas.--Except as required by treaty obligations or to
            staff the Burmese mission to the United States, the United
            States should not grant entry visas to any Burmese government
            official.
          (b) Conditional Sanctions.--The President is hereby authorized to
    prohibit, and shall prohibit United States persons from new investment
    in Burma, if the President determines and certifies to Congress that,
    after the date of enactment of this Act, the Government of Burma has
    physically harmed, rearrested for political acts, or exiled Daw Aung San
    Suu Kyi or has committed large-scale repression of or violence against
    the Democratic opposition.
          (c) Multilateral Strategy.--The President shall seek to develop,
    in coordination with members of ASEAN and other countries having major
    trading and investment interests in Burma, a comprehensive, multilateral
    strategy to bring democracy to and improve human rights practices and
    the quality of life in Burma, including the development of a dialogue
    between the State Law

    [[Page 110 STAT. 3009-167]]

    and Order Restoration Council (SLORC) and democratic opposition groups
    within Burma.
          (d) Presidential Reports.--Every six months following the
    enactment of this Act, the President shall report to the Chairmen of the
    Committee on Foreign Relations, the Committee on International Relations
    and the House and Senate Appropriations Committees on the following:
                (1) progress toward democratization in Burma;
                (2) progress on improving the quality of life of the Burmese
            people, including progress on market reforms, living standards,
            labor standards, use of forced labor in the tourism industry,
            and environmental quality; and
                (3) progress made in developing the strategy referred to in
            subsection (c).
          (e) Waiver Authority.--The President shall have the authority to
    waive, temporarily or permanently, any sanction referred to in
    subsection (a) or subsection (b) if he determines and certifies to
    Congress that the application of such sanction would be contrary to the
    national security interests of the United States.
          (f) Definitions.--
                (1) The term ``international financial institutions'' shall
            include the International Bank for Reconstruction and
            Development, the International Development Association, the
            International Finance Corporation, the Multilateral Investment
            Guarantee Agency, the Asian Development Bank, and the
            International Monetary Fund.
                (2) The term ``new investment'' shall mean any of the
            following activities if such an activity is undertaken pursuant
            to an agreement, or pursuant to the exercise of rights under
            such an agreement, that is entered into with the Government of
            Burma or a nongovernmental entity in Burma, on or after the date
            of the certification under subsection (b):
                        (A) the entry into a contract that includes the
                    economical development of resources located in Burma, or
                    the entry into a contract providing for the general
                    supervision and guarantee of another person's
                    performance of such a contract;
                        (B) the purchase of a share of ownership, including
                    an equity interest, in that development;
                        (C) the entry into a contract providing for the
                    participation in royalties, earnings, or profits in that
                    development, without regard to the form of the
                    participation:

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

                           report regarding hong kong

          Sec. 571. <<NOTE: 22 USC 5731 note.>>  In light of the
    deficiencies in reports submitted to the Congress pursuant to section
    301 of the United States-Hong Kong Policy Act (22 U.S.C. 5731), the
    Congress directs that the additional report required to be submitted
    during 1997 under such section include detailed information on the
    status of, and other developments affecting, implementation of the Sino-
    British Joint Declaration on the Question of Hong King, including--
                (1) the Basic Law and its consistency with the Joint
            Declaration;

    [[Page 110 STAT. 3009-168]]

                (2) Beijing's plans to replace the elected legislature with
            an appointed body;
                (3) the openness and fairness of the election of the chief
            executive and the executive's accountability to the legislature;
                (4) the treatment of political parties;
                (5) the independence of the Judiciary and its ability to
            exercise the power of final judgment over Hong Kong law; and
                (6) the Bill of Rights.

            use of funds for purchase of products not made in america

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

                              conflict in chechnya

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

                  extension of certain adjudication provisions

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

                             transparency of budgets

          Sec. 576. (a) Limitation.--Beginning <<NOTE: 22 USC 262k-
    1.>> three years after the date of the enactment of this Act, the
    Secretary of the Treasury shall instruct the United States Executive
    Director of each international financial institution to use the voice
    and vote of the United States to oppose any loan or other utilization of
    the funds of their respective institution, other than to address basic
    human needs, for the government of any country which the Secretary of
    the Treasury determines--

    [[Page 110 STAT. 3009-169]]

                (1) does not have in place a functioning system for a
            civilian audit of all receipts and expenditures that fund
            activities of the armed forces and security forces;
                (2) has not provided a summary of a current audit to the
            institution.
          (b) Definition.--For purposes of this section, the term
    ``international financial institution'' shall include the institutions
    identified in section 532(b) of this Act.

                                   guarantees

          Sec. 577. Section 251(b)(2)(G) of the Balanced Budget and
    Emergency Deficit Control Act of <<NOTE: 2 USC 901.>>  1985 is amended
    by striking ``fiscal year 1994 and 1995'' and inserting in lieu thereof
    ``fiscal years 1994, 1995, and 1997'' in both places that this appears.

    information on cooperation with united states anti-terrorism efforts in
                       annual country reports on terrorism

          Sec. 578. Section 140 of the Foreign Relations Authorization Act,
    fiscal years 1988 and 1989 (22 U.S.C. 2656f) is amended--
                (1) in subsection (a)--
                        (A) by striking ``and'' at the end of paragraph (1);
                        (B) by striking the period at the end of paragraph
                    (2) and inserting a semicolon; and
                        (C) by adding at the end the following:
                ``(3) with respect to each foreign country from which the
            United States Government has sought cooperation during the
            previous five years in the investigation or prosecution of an
            act of international terrorism against United States citizens or
            interests, information on--
                        ``(A) the extent to which the government of the
                    foreign country is cooperating with the United States
                    Government in apprehending, convicting, and punishing
                    the individual or individuals responsible for the act;
                    and
                        ``(B) the extent to which the government of the
                    foreign country is cooperating in preventing further
                    acts of terrorism against United States citizens in the
                    foreign country; and
                ``(4) with respect to each foreign country from which the
            United States Government has sought cooperation during the
            previous five years in the prevention of an act of international
            terrorism against such citizens or interests, the information
            described in paragraph (3)(B).''; and
                (2) in subsection (c)--
                        (A) by striking ``The report'' and inserting ``(1)
                    Except as provided in paragraph (2), the report'';
                        (B) by indenting the margin of paragraph (1) as so
                    designated, 2 ems; and
                        (C) by adding at the end the following:
                ``(2) If the Secretary of State determines that the
            transmittal of the information with respect to a foreign country
            under paragraph (3) or (4) of subsection (a) in classified form
            would make more likely the cooperation of the government of the
            foreign country as specified in such paragraph, the Secretary
            may transmit the information under such paragraph in classified
            form.''.

    [[Page 110 STAT. 3009-170]]

                            female genital mutilation

          Sec. 579. <<NOTE: 22 USC 262k-2.>>  (a) Limitation.--Beginning 1
    year after the date of the enactment of this Act, the Secretary of the
    Treasury shall instruct the United States Executive Director of each
    international financial institution to use the voice and vote of the
    United States to oppose any loan or other utilization of the funds of
    their respective institution, other than to address basic human needs,
    for the government of any country which the Secretary of the Treasury
    determines--
                (1) has, as a cultural custom, a known history of the
            practice of female genital mutilation; and
                (2) has not taken steps to implement educational programs
            designed to prevent the practice of female genital mutilation.
          (b) Definition.--For purposes of this section, the term
    ``international financial institution'' shall include the institutions
    identified in section 532(b) of this Act.

      requirement for disclosure of foreign aid in report of secretary of
                                      state

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

       restrictions on voluntary contributions to united nations agencies

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

    [[Page 110 STAT. 3009-171]]

                (2) a corporation, partnership, or other legal entity
            organized under the United States or any State, territory,
            possession, or district of the United States.

                                      haiti

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

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

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

                                   north korea

          Sec. 585. <<NOTE: 22 USC 2656 note.>>  Ninety days after the date
    of enactment of this Act, and every 180 days thereafter, the Secretary
    of State, in consultation with the Secretary of Defense, shall provide a
    report in a classified or unclassified form to the Committee on
    Appropriations including the following information:
                (a) a best estimate on fuel used by the military forces of
            the Democratic People's Republic of Korea (DPRK);
                (b) the deployment position and military training and
            activities of the DPRK forces and best estimate of the
            associated costs of these activities;
                (c) steps taken to reduce the DPRK level of forces; and
                (d) cooperation, training, or exchanges of information,
            technology or personnel between the DPRK and any other nation

    [[Page 110 STAT. 3009-172]]

            supporting the development or deployment of a ballistic missile
            capability.

                       limitation on assistance to mexico

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

                       limitation of assistance to turkey

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

              civil liability for acts of state sponsored terrorism

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

    [[Page 110 STAT. 3009-173]]

    TITLE VI--NATO ENLARGEMENT <<NOTE: NATO Enlargement Facilitation Act of
    1996. 22 USC 1928 note.>> FACILITATION ACT OF 1996

    SEC. 601. SHORT TITLE.

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

    SEC. 602. FINDINGS.

          The Congress makes the following findings:
                (1) Since 1949, the North Atlantic Treaty Organization
            (NATO) has played an essential role in guaranteeing the
            security, freedom, and prosperity of the United States and its
            partners in the Alliance.
                (2) The NATO Alliance is, and has been since its inception,
            purely defensive in character, and it poses no threat to any
            nation. The enlargement of the NATO Alliance to include as full
            and equal members emerging democracies in Central and Eastern
            Europe will serve to reinforce stability and security in Europe
            by fostering their integration into the structures which have
            created and sustained peace in Europe since 1945. Their
            admission into NATO will not threaten any nation. America's
            security, freedom, and prosperity remain linked to the security
            of the countries of Europe.
                (3) The sustained commitment of the member countries of NATO
            to a mutual defense has made possible the democratic
            transformation of Central and Eastern Europe. Members of the
            Alliance can and should play a critical role in addressing the
            security challenges of the post-Cold War era and in creating the
            stable environment needed for those emerging democracies in
            Central and Eastern Europe to successfully complete political
            and economic transformation.
                (4) The United States continues to regard the political
            independence and territorial integrity of all emerging
            democracies in Central and Eastern Europe as vital to European
            peace and security.
                (5) The active involvement by the countries of Central and
            Eastern Europe has made the Partnership for Peace program an
            important forum to foster cooperation between NATO and those
            countries seeking NATO membership.
                (6) NATO has enlarged its membership on 3 different
            occasions since 1949.
                (7) Congress supports the admission of qualified new members
            to NATO and the European Union at an early date and has sought
            to facilitate the admission of qualified new members into NATO.
                (8) Lasting security and stability in Europe requires not
            only the military integration of emerging democracies in Central
            and Eastern Europe into existing European structures, but also
            the eventual economic and political integration of these
            countries into existing European structures.
                (9) As new members of NATO assume the responsibilities of
            Alliance membership, the costs of maintaining stability in
            Europe should be shared more widely. Facilitation of the
            enlargement process will require current members of NATO, and
            the United States in particular, to demonstrate the political
            will needed to build on successful ongoing programs such as the
            Warsaw Initiative and the Partnership for Peace by making

    [[Page 110 STAT. 3009-174]]

            available the resources necessary to supplement efforts
            prospective new members are themselves undertaking.
                (10) New members will be full members of the Alliance,
            enjoying all rights and assuming all the obligations under the
            North Atlantic Treaty, signed at Washington on April 4, 1949
            (hereafter in this Act referred to as the ``Washington
            Treaty'').
                (11) In order to assist emerging democracies in Central and
            Eastern Europe that have expressed interest in joining NATO to
            be prepared to assume the responsibilities of NATO membership,
            the United States should encourage and support efforts by such
            countries to develop force structures and force modernization
            priorities that will enable such countries to contribute to the
            full range of NATO missions, including, most importantly,
            territorial defense of the Alliance.
                (12) Cooperative regional peacekeeping initiatives involving
            emerging democracies in Central and Eastern Europe that have
            expressed interest in joining NATO, such as the Baltic
            Peacekeeping Battalion, the Polish-Lithuanian Joint Peacekeeping
            Force, and the Polish-Ukrainian Peacekeeping Force, can make an
            important contribution to European peace and security and
            international peacekeeping efforts, can assist those countries
            preparing to assume the responsibilities of possible NATO
            membership, and accordingly should receive appropriate support
            from the United States.
                (13) NATO remains the only multilateral security
            organization capable of conducting effective military operations
            and preserving security and stability of the Euro-Atlantic
            region.
                (14) NATO is an important diplomatic forum and has played a
            positive role in defusing tensions between members of the
            Alliance and, as a result, no military action has occurred
            between two Alliance member states since the inception of NATO
            in 1949.
                (15) The admission to NATO of emerging democracies in
            Central and Eastern Europe which are found to be in a position
            to further the principles of the Washington Treaty would
            contribute to international peace and enhance the security of
            the region. Countries which have become democracies and
            established market economies, which practice good neighborly
            relations, and which have established effective democratic
            civilian control over their defense establishments and attained
            a degree of interoperability with NATO, should be evaluated for
            their potential to further the principles of the Washington
            Treaty.
                (16) Democratic civilian control of defense forces is an
            essential element in the process of preparation for those states
            interested in possible NATO membership.
                (17) Protection and promotion of fundamental freedoms and
            human rights is an integral aspect of genuine security, and in
            evaluating requests for membership in NATO, the human rights
            records of the emerging democracies in Central and Eastern
            Europe should be evaluated according to their commitments to
            fulfill in good faith the human rights obligations of the
            Charter of the United Nations, the principles of the Universal
            Declaration on Human Rights, and the Helsinki Final Act.
                (18) A number of Central and Eastern European countries have
            expressed interest in NATO membership, and have taken

    [[Page 110 STAT. 3009-175]]

            concrete steps to demonstrate this commitment, including their
            participation in Partnership for Peace activities.
                (19) The Caucasus region remains important geographically
            and politically to the future security of Central Europe. As
            NATO proceeds with the process of enlargement, the United States
            and NATO should continue to examine means to strengthen the
            sovereignty and enhance the security of United Nations
            recognized countries in that region.
                (20) In recognition that not all countries which have
            requested membership in NATO will necessarily qualify at the
            same pace, the accession date for each new member will vary.
                (21) The provision of additional NATO transition assistance
            should include those emerging democracies most ready for closer
            ties with NATO and should be designed to assist other countries
            meeting specified criteria of eligibility to move forward toward
            eventual NATO membership.
                (22) The Congress of the United States finds in particular
            that Poland, Hungary, and the Czech Republic have made
            significant progress toward achieving the criteria set forth in
            section 203(d)(3) of the NATO Participation Act of 1994 and
            should be eligible for the additional assistance described in
            this Act.
                (23) The evaluation of future membership in NATO for
            emerging democracies in Central and Eastern Europe should be
            based on the progress of those nations in meeting criteria for
            NATO membership, which require enhancement of NATO's security
            and the approval of all NATO members.
                (24) The process of NATO enlargement entails the consensus
            agreement of the governments of all 16 NATO members and
            ratification in accordance with their constitutional procedures.
                (25) Some NATO members, such as Spain and Norway, do not
            allow the deployment of nuclear weapons on their territory
            although they are accorded the full collective security
            guarantees provided by Article 5 of the Washington Treaty. There
            is no a priori requirement for the stationing of nuclear weapons
            on the territory of new NATO members, particularly in the
            current security climate. However, NATO retains the right to
            alter its security posture at any time as circumstances warrant.

    SEC. 603. UNITED STATES POLICY.

          It is the policy of the United States--
                (1) to join with the NATO allies of the United States to
            adapt the role of the NATO Alliance in the post-Cold War world;
                (2) to actively assist the emerging democracies in Central
            and Eastern Europe in their transition so that such countries
            may eventually qualify for NATO membership;
                (3) to support the enlargement of NATO in recognition that
            enlargement will benefit the interests of the United States and
            the Alliance and to consider these benefits in any analysis of
            the costs of NATO enlargement;
                (4) to ensure that all countries in Central and Eastern
            Europe are fully aware of and capable of assuming the costs

    [[Page 110 STAT. 3009-176]]

            and responsibilities of NATO membership, including the
            obligation set forth in Article 10 of the Washington Treaty that
            new members be able to contribute to the security of the North
            Atlantic area; and
                (5) to work to define a constructive and cooperative
            political and security relationship between an enlarged NATO and
            the Russian Federation.

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

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

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

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

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

          (a) In General.--The following countries are designated as
    eligible to receive assistance under the program established under
    section 203(a) of the NATO Participation Act of 1994 and shall be deemed
    to have been so designated pursuant to section 203(d)(1) of such Act:
    Poland, Hungary, and the Czech Republic.
          (b) Designation of Slovenia.--Effective 90 days after the date of
    enactment of this Act, Slovenia is designated as eligible to receive
    assistance under the program established under section 203(a) of the
    NATO Participation Act of 1994, and shall be deemed to have been so
    designated pursuant to section 203(d) of such Act, unless the President
    certifies to Congress prior to such effective date that Slovenia fails
    to meet the criteria under section 203(d)(3) of such Act.

    [[Page 110 STAT. 3009-177]]

          (c) Designation of Other Countries.--The President shall designate
    other emerging democracies in Central and Eastern Europe as eligible to
    receive assistance under the program established under section 203(a) of
    such Act if such countries--
                (1) have expressed a clear desire to join NATO;
                (2) have begun an individualized dialogue with NATO in
            preparation for accession;
                (3) are strategically significant to an effective NATO
            defense; and
                (4) meet the other criteria outlined in section 203(d)(3) of
            the NATO Participation Act of 1994 (title II of Public Law 103-
            447; 22 U.S.C. 1928 note).
          (d) Rule of Construction.--Nothing in this section precludes the
    designation by the President of Estonia, Latvia, Lithuania, Romania,
    Slovakia, Bulgaria, Albania, Moldova, Ukraine, or any other emerging
    democracy in Central and Eastern Europe pursuant to section 203(d) of
    the NATO Participation Act of 1994 as eligible to receive assistance
    under the program established under section 203(a) of such Act.

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

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

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

          (a) In General.--To the extent provided in advance in
    appropriations acts for such purposes, funds described in subsection (b)
    are authorized to be made available to support the implementation of the
    Regional Airspace Initiative and the Partnership for Peace Information
    Management System, including--
                (1) the procurement of items in support of these programs;
            and
                (2) the transfer of such items to countries participating in
            these programs.
          (b) Funds Described.--Funds described in this subsection are funds
    that are available--

    [[Page 110 STAT. 3009-178]]

                (1) during any fiscal year under the NATO Participation Act
            of 1994 with respect to countries eligible for assistance under
            that Act; or
                (2) during fiscal year 1997 under any Act to carry out the
            Warsaw Initiative.

    SEC. 609. EXCESS DEFENSE ARTICLES.

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

    SEC. 610. MODERNIZATION OF DEFENSE CAPABILITY.

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

    SEC. 611. TERMINATION OF ELIGIBILITY.

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

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

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

    [[Page 110 STAT. 3009-179]]

    TITLE VII--MIDDLE <<NOTE: Bank for Economic Cooperation and Development
        in the Middle East and North Africa Act. 22 USC 290o note 22 USC
    290o.>>  EAST DEVELOPMENT BANK

    SEC. 701. SHORT TITLE.

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

    SEC. 702. ACCEPTANCE OF MEMBERSHIP.

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

    SEC. 703. <<NOTE: 22 USC 290o-1.>>  GOVERNOR AND ALTERNATE GOVERNOR.
          (a) Appointment.--At the inaugural meeting of the Board of
    Governors of the Bank, the Governor and the alternate for the Governor
    of the International Bank for Reconstruction and Development, appointed
    pursuant to section 3 of the Bretton Woods Agreements Act, shall serve
    ex-officio as a Governor and the alternate for the Governor,
    respectively, of the Bank. The President, by and with the advice and
    consent of the Senate, shall appoint a Governor of the Bank and an
    alternate for the Governor.
          (b) Compensation.--Any person who serves as a governor of the Bank
    or as an alternate for the Governor may not receive any salary or other
    compensation from the United States by reason of such service.

    SEC. 704. <<NOTE: 22 USC 290o-2.>>  APPLICABILITY OF CERTAIN PROVISIONS
                OF THE BRETTON WOODS AGREEMENTS ACT.
          Section 4 of the Bretton Woods Agreements Act shall apply to the
    Bank in the same manner in which such section applies to the
    International Bank for Reconstruction and Development and the
    International Monetary Fund.

    SEC. 705. <<NOTE: 22 USC 290o-3.>>  FEDERAL RESERVE BANKS AS
                DEPOSITORIES.
          Any Federal Reserve Bank which is requested to do so by the Bank
    may act as its depository, or as its fiscal agent, and the Board of
    Governors of the Federal Reserve System shall exercise general
    supervision over the carrying out of these functions.

    SEC. 706. <<NOTE: 22 USC 290o-4.>>  SUBSCRIPTION OF STOCK.
          (a) Subscription Authority.--
                (1) In general.--The Secretary of the Treasury may subscribe
            on behalf of the United States to not more than 7,011,270 shares
            of the capital stock of the Bank.
                (2) Effectiveness of subscription commitment.--Any
            commitment to make such subscription shall be effective only to
            such extent or in such amounts as are provided for in advance by
            appropriations Acts.
          (b) Limitations on Authorization of Appropriations.--For payment
    by the Secretary of the Treasury of the subscription of the United
    States for shares described in subsection (a), there are authorized to
    be appropriated $1,050,007,800 without fiscal year limitation.
          (c) Limitations on Obligation of Appropriated Amounts for Shares
    of Capital Stock.--
                (1) Paid-in capital stock.--

    [[Page 110 STAT. 3009-180]]

                        (A) In general.--Not more than $105,000,000 of the
                    amounts appropriated pursuant to subsection (b) may be
                    obligated for subscription to shares of paid-in capital
                    stock.
                        (B) Fiscal year 1997.--Not more than $52,500,000 of
                    the amounts appropriated pursuant to subsection (b) for
                    fiscal year 1997 may be obligated for subscription to
                    shares of paid-in capital stock.
                (2) Callable capital stock.--Not more than $787,505,852 of
            the amounts appropriated pursuant
    to subsection (b) may be obligated for subscription to shares of
    callable capital stock.
          (d) Disposition of Net Income Distributions by the Bank.--Any
    payment made to the United States by the Bank as a distribution of net
    income shall be covered into the Treasury as a miscellaneous receipt.

    SEC. 707. JURISDICTION AND VENUE OF CIVIL <<NOTE: 22 USC 290o-5.>>
                ACTIONS BY OR AGAINST THE BANK.
          (a) Jurisdiction.--The United States district courts shall have
    original and exclusive jurisdiction of any civil action brought in the
    United States by or against the Bank.
          (b) Venue.--For purposes of section 1391(b) of title 28, United
    States Code, the Bank shall be deemed to be a resident of the judicial
    district in which the principal office of the Bank in the United States,
    or its agent appointed for the purpose of accepting service or notice of
    service, is located.

    SEC. 708. EFFECTIVENESS OF <<NOTE: 22 USC 290o-6.>>  AGREEMENT.
          The Agreement shall have full force and effect in the United
    States, its territories and possessions, and the Commonwealth of Puerto
    Rico, upon acceptance of membership by the United States in the Bank and
    the entry into force of the Agreement.

    SEC. 709. EXEMPTION FROM SECURITIES LAWS <<NOTE: 22 USC 290o-7.>>  FOR
                CERTAIN SECURITIES ISSUED BY THE BANK; REPORTS REQUIRED.
          (a) Exemption from Securities Laws; Reports to Securities and
    Exchange Commission.--Any securities issued by the Bank (including any
    guaranty by the Bank, whether or not limited in scope) in connection
    with borrowing of funds, or the guarantee of securities as to both
    principal and interest, shall be deemed to be exempted securities within
    the meaning of section 3(a)(2) of the Securities Act of 1933 and section
    3(a)(12) of the Securities Exchange Act of 1934. The Bank shall file
    with the Securities and Exchange Commission such annual and other
    reports with regard to such securities as the Commission shall determine
    to be appropriate in view of the special character of the Bank and its
    operations and necessary in the public interest or for the protection of
    investors.
          (b) Authority of Securities and Exchange Commission to Suspend
    Exemption; Reports to the Congress.--The  Securities  and  Exchange
    Commission, acting in consultation with such agency or officer as the
    President shall designate, may suspend the provisions of subsection (a)
    at any time as to any or all securities issued or guaranteed by the Bank
    during the period of such suspension. The Commission shall include in
    its annual reports to the Congress
    such information as it shall deem advisable with regard to the
    operations and effect of this section.

    [[Page 110 STAT. 3009-181]]

    SEC. 710. TECHNICAL AMENDMENTS.

          (a) Annual Report Required on Participation of the United States
    in the Bank.--Section 1701(c)(2) of the International Financial
    Institutions Act (22 U.S.C. 262r(c)(2)) is amended by inserting ``Bank
    for Economic Cooperation and Development in the Middle East and North
    Africa,'' after ``Inter-American Development Bank''.
          (b) Exemption from Limitations and Restrictions on Power of
    National, Banking Associations To Deal in and Underwrite Investment
    Securities of the Bank.--The seventh sentence of paragraph 7 of section
    5136 of the Revised Statutes of the United States (12 U.S.C. 24) is
    amended by inserting ``Bank for Economic Cooperation and Development in
    the Middle East and North Africa,'' after ``the Inter-American
    Development Bank''.
          (c) Benefits for United States Citizen-Representatives to the
    Bank.--Section 51 of Public Law 91-599 (22 U.S.C. 276c-2) is amended by
    inserting ``the Bank for Economic Cooperation and Development in the
    Middle East and North Africa,'' after ``the Inter-American Development
    Bank,''.

          (d) For programs, projects or activities in the Department of the
    Interior and Related Agencies Appropriations Act, 1997, provided as
    follows, to be effective as if it had been enacted into law as the
    regular appropriations Act:

         AN ACT <<NOTE: Department of the Interior and Related Agencies
    Appropriations Act, 1997.>>

     Making appropriations for the Department of the Interior, and related
     agencies for the fiscal year ending September 30, 1997, and for other
                                    purposes.

                       TITLE I--DEPARTMENT OF THE INTERIOR

                            Bureau of Land Management

                        management of lands and resources

        For expenses necessary for protection, use, improvement,
    development, disposal, cadastral surveying, classification, acquisition
    of easements and other interests in lands, and performance of other
    functions, including maintenance of facilities, as authorized by law, in
    the management of lands and their resources under the jurisdiction of
    the Bureau of Land Management, including the general administration of
    the Bureau, and assessment of mineral potential of public lands pursuant
    to Public Law 96-487 (16 U.S.C. 3150(a)), $572,164,000, to remain
    available until expended, of which $2,010,000 shall be available for
    assessment of the mineral potential of public lands in Alaska pursuant
    to section 1010 of Public Law 96-487 (16 U.S.C. 3150); and of which
    $3,000,000 shall be derived from the special receipt account established
    by the Land and Water Conservation Act of 1965, as amended (16 U.S.C.
    460l-6a(i)); and of which $1,000,000 shall be available in fiscal year
    1997 subject to a match by at least an equal amount by the National Fish
    and Wildlife Foundation, to such Foundation for challenge cost share
    projects supporting fish and wildlife conservation affecting Bureau
    lands; in addition, $27,300,000 for Mining Law Administration program
    operations, to remain available until expended, to be reduced by amounts
    collected by the Bureau and credited to this appropriation from annual
    mining claim fees so as to result

    [[Page 110 STAT. 3009-182]]

    in a final appropriation estimated at not more than $572,164,000; and in
    addition, not to exceed $5,000,000, to remain available until expended,
    from annual mining claim fees; which shall be credited to this account
    for the costs of administering the mining claim fee program, and
    $2,000,000 from communication site rental fees established by the Bureau
    for the cost of administering communication site activities: Provided,
    That appropriations herein made shall not be available for the
    destruction of healthy, unadopted, wild horses and burros in the care of
    the Bureau or its contractors: Provided further, That in fiscal year
    1997 and thereafter, <<NOTE: 43 USC 1734a.>> all fees, excluding mining
    claim fees, in excess of the fiscal year 1996 collections established by
    the Secretary of the Interior under the authority of 43 U.S.C. 1734 for
    processing, recording, or documenting authorizations to use public lands
    or public land natural resources (including cultural, historical, and
    mineral) and for providing specific services to public land users, and
    which are not presently being covered into any Bureau of Land Management
    appropriation accounts, and not otherwise dedicated by law for a
    specific distribution, shall be made immediately available for program
    operations in this account and remain available until expended.

                            wildland fire management

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

                        central hazardous materials fund

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

    [[Page 110 STAT. 3009-183]]

                                  construction

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

                            payments in lieu of taxes

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

                                land acquisition

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

                        oregon and california grant lands

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

                               range improvements

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

                   service charges, deposits, and forfeitures

        For administrative expenses and other costs related to processing
    application documents and other authorizations for use and disposal of
    public lands and resources, for costs of providing copies

    [[Page 110 STAT. 3009-184]]

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

                            miscellaneous trust funds

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

                            administrative provisions

        Appropriations for the Bureau of Land Management shall be available
    for purchase, erection, and dismantlement of temporary structures, and
    alteration and maintenance of necessary buildings and appurtenant
    facilities to which the United States has title; up to $100,000 for
    payments, at the discretion of the Secretary, for information or
    evidence concerning violations of laws administered by the Bureau;
    miscellaneous and emergency expenses of enforcement activities
    authorized or approved by the Secretary and to be accounted for solely
    on his certificate, not to exceed $10,000: Provided, That
    notwithstanding 44 U.S.C. 501, the Bureau may, under cooperative cost-
    sharing and partnership arrangements authorized by law, procure printing
    services from cooperators in connection with jointly-produced
    publications for which the cooperators share the cost of printing either
    in cash or in services, and the Bureau determines the cooperator is
    capable of meeting accepted quality standards.
          The Bureau of Land Management's Visitor Center in Rand, Oregon is
    hereby named the ``William B. Smullin Visitor Center''.

    [[Page 110 STAT. 3009-185]]

                     United States Fish and Wildlife Service

                               resource management

        For expenses necessary for scientific and economic studies,
    conservation, management, investigations, protection, and utilization of
    fishery and wildlife resources, except whales, seals, and sea lions, and
    for the performance of other authorized functions related to such
    resources; for the general administration of the United States Fish and
    Wildlife Service; for maintenance of the herd of long-horned cattle on
    the Wichita Mountains Wildlife Ref- uge; and not less than $1,000,000
    for high priority projects within the scope of the approved budget which
    shall be carried out by the Youth Conservation Corps as authorized by
    the Act of August 13, 1970, as amended, $523,947,000, to remain
    available until September 30, 1998, of which $11,557,000 shall remain
    available until expended for operation and maintenance of fishery
    mitigation facilities constructed by the Corps of Engineers under the
    Lower Snake River Compensation Plan, authorized by the Water Resources
    Development Act of 1976, to compensate for loss of fishery resources
    from water development projects on the Lower Snake River, and of which
    $2,000,000 shall be provided to local governments in southern California
    for planning associated with the Natural Communities Conservation
    Planning (NCCP) program and shall remain available until expended:
    Provided, That hereafter, <<NOTE: 16 USC 742b note.>>  pursuant to 31
    U.S.C. 9701, the Secretary shall charge reasonable fees for the full
    costs of providing training by the National Education and Training
    Center, to be credited to this account, notwithstanding 31 U.S.C. 3302,
    for the direct costs of providing such training.

                                  construction

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

                     natural resource damage assessment fund

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

                                land acquisition

        For expenses necessary to carry out the Land and Water Conservation
    Fund Act of 1965, as amended (16 U.S.C. 460l-4-11), including
    administrative expenses, and for acquisition of land or waters, or
    interest therein, in accordance with statutory authority applicable to
    the United States Fish and Wildlife Service, <<NOTE: 16 USC 668dd
    note.>> $44,479,000, of which $3,000,000 is authorized to be
    appropriated and shall be used to establish the Clarks River National
    Wildlife

    [[Page 110 STAT. 3009-186]]

    Refuge in Kentucky, to be derived from the Land and Water Conservation
    Fund, to remain available until expended.

                cooperative endangered species conservation fund

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

                          national wildlife refuge fund

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

                             rewards and operations

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

                    north american wetlands conservation fund

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

                     rhinoceros and tiger conservation fund

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

                   wildlife conservation and appreciation fund

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

                            administrative provisions

        Appropriations and funds available to the United States Fish and
    Wildlife Service shall be available for purchase of not to exceed 83
    passenger motor vehicles of which 73 are for replacement only (including
    43 for police-type use); not to exceed $400,000 for payment, at the
    discretion of the Secretary, for information, rewards, or evidence
    concerning violations of laws administered by the Service, and
    miscellaneous and emergency expenses of enforcement activities,
    authorized or approved by the Secretary and to be accounted for solely
    on his certificate; repair of damage to public roads within and adjacent
    to reservation areas caused by operations of the Service; options for
    the purchase of land at not to exceed $1 for each option; facilities
    incident to such public recreational uses on conservation areas as are
    consistent with their primary purpose; and the maintenance and
    improvement of aquaria, buildings, and other facilities under the
    jurisdiction of the Service and

    [[Page 110 STAT. 3009-187]]

    to which the United States has title, and which are utilized pursuant to
    law in connection with management and investigation of fish and wildlife
    resources: Provided, That notwithstanding 44 U.S.C. 501, the Service
    may, under cooperative cost sharing and partnership arrangements
    authorized by law, procure printing services from cooperators in
    connection with jointly-produced publications for which the cooperators
    share at least one-half the cost of printing either in cash or services
    and the Service determines the cooperator is capable of meeting accepted
    quality standards: Provided further, That the Service may accept donated
    aircraft as replacements for existing aircraft: Provided further, That
    notwithstanding any other provision of law, the Secretary of the
    Interior may not spend any of the funds appropriated in this Act for the
    purchase of lands or interests in lands to be used in the establishment
    of any new unit of the National Wildlife Refuge System unless the
    purchase is approved in advance by the House and Senate Committees on
    Appropriations in compliance with the reprogramming procedures contained
    in House Report 103-551: Provided further, That section 101(c) of the
    Omnibus Consolidated Rescissions and Appropriations Act of 1996 is
    amended in section 315(c)(1)(E) (110 Stat. 1321-201; 16 U.S.C. 460l-6a
    note) by striking ``distributed in accordance with section 201(c) of the
    Emergency Wetlands Resources Act'' and inserting ``available to the
    Secretary of the Interior until expended to be used in accordance with
    clauses (i), (ii), and (iii) of section 201(c)(A) of the Emergency
    Wetlands Resources Act of 1986 (16 U.S.C. 3911(c)(A))''.

                              National Park Service

                      operation of the national park system

        For expenses necessary for the management, operation, and
    maintenance of areas and facilities administered by the National Park
    Service (including special road maintenance service to trucking
    permittees on a reimbursable basis), and for the general administration
    of the National Park Service, including not to exceed $1,593,000 for the
    Volunteers-in-Parks program, and not less than $1,000,000 for high
    priority projects within the scope of the approved budget which shall be
    carried out by the Youth Conservation Corps as authorized by 16 U.S.C.
    1706, $1,152,311,000, without regard to 16 U.S.C. 451, of which
    $8,000,000 for research, planning and interagency coordination in
    support of land acquisition for Everglades restoration shall remain
    available until expended, and of which not to exceed $72,000,000, to
    remain available until expended, is to be derived from the special fee
    account established pursuant to title V, section 5201, of Public Law
    100-203.

                      national recreation and preservation

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

    [[Page 110 STAT. 3009-188]]

                           historic preservation fund

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

                                  construction

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

                        land and water conservation fund

                                  (rescission)

        The contract <<NOTE: 16 USC 460l-10a note.>>  authority provided for
    fiscal year 1997 by 16 U.S.C. 460l-10a is rescinded.

                      land acquisition and state assistance

        For expenses necessary to carry out the Land and Water Conservation
    Fund Act of 1965, as amended (16 U.S.C. 460l-4-11), including
    administrative expenses, and for acquisition of lands or waters, or
    interest therein, in accordance with statutory authority applicable to
    the National Park Service, $53,915,000, to be derived from the Land and
    Water Conservation Fund, to remain available until expended, of which
    $1,500,000 is to administer the State assistance program: Provided, That
    any funds made available for the purpose of acquisition of the Elwha and
    Glines dams shall be used solely for acquisition, and shall not be
    expended until the full purchase amount has been appropriated by the
    Congress: Provided further, That of the funds provided herein,
    $9,000,000 is available for acquisition of the Sterling Forest, subject
    to authorization.

                            administrative provisions

        Appropriations for the National Park Service shall be available for
    the purchase of not to exceed 404 passenger motor vehicles, of which 287
    shall be for replacement only, including not to exceed 320 for police-
    type use, 13 buses, and 6 ambulances: Provided, That none of the funds
    appropriated to the National Park Service may be used to process any
    grant or contract documents which do not include the text of 18 U.S.C.
    1913: Provided further, That none of the funds appropriated to the
    National Park Service may be used to implement an agreement for the
    redevelopment of the

    [[Page 110 STAT. 3009-189]]

    southern end of Ellis Island until such agreement has been
    submitted to the Congress and shall not be implemented prior to the
    expiration of 30 calendar days (not including any day in which either
    House of Congress is not in session because of adjournment of more than
    three calendar days to a day certain) from the receipt by the Speaker of
    the House of Representatives and the President of the Senate of a full
    and comprehensive report on the development of the southern end of Ellis
    Island, including the facts and circumstances relied upon in support of
    the proposed project.

        None of the funds in this Act may be spent by the National Park
    Service for activities taken in direct response to the United Nations
    Biodiversity Convention.
        The National Park <<NOTE: 16 USC 1g.>>  Service may in fiscal year
    1997 and thereafter enter into cooperative agreements that involve the
    transfer of National Park Service appropriated funds to State, local and
    tribal governments, other public entities, educational institutions, and
    private nonprofit organizations for the public purpose of carrying out
    National Park Service programs pursuant to 31 U.S.C. 6305 to carry out
    public purposes of National Park Service programs.
          Notwithstanding any other provision of law, remaining balances,
    including interest, from funds granted to the National Park Foundation
    pursuant to the National Park System Visitor Facilities Fund Act of 1983
    (Public Law 97-433, 96 Stat. 2277) shall be available to the National
    Park Foundation for expenditure in units of the National Park System for
    the purpose of improving visitor facilities.

                         United States Geological Survey

                      surveys, investigations, and research

        For expenses necessary for the United States Geological Survey to
    perform surveys, investigations, and research covering topography,
    geology, hydrology, and the mineral and water resources of the United
    States, its Territories and possessions, and other areas as authorized
    by 43 U.S.C. 31, 1332 and 1340; classify lands as to their mineral and
    water resources; give engineering supervision to power permittees and
    Federal Energy Regulatory Commission licensees; administer the minerals
    exploration program (30 U.S.C. 641); and publish and disseminate data
    relative to the foregoing activities; and to conduct inquiries into the
    economic conditions affecting mining and materials processing industries
    (30 U.S.C. 3, 21a, and 1603; 50 U.S.C. 98g(1)) and related purposes as
    authorized by law and to publish and disseminate data; $738,913,000 of
    which $64,559,000 shall be available only for cooperation with States or
    municipalities for water resources investigations; and of which
    $16,000,000 shall remain available until expended for conducting
    inquiries into the economic conditions affecting mining and materials
    processing industries; and of which $137,500,000 shall be available
    until September 30, 1998 for the biological research activity and the
    operation of the Cooperative Research Units: Provided, That none of
    these funds provided for the biological research activity shall be used
    to conduct new surveys on private property, unless specifically
    authorized in writing by the property owner: Provided further,
    That <<NOTE: 43 USC 31j.>> beginning in fiscal year 1998 and once every
    five years thereafter, the National Academy

    [[Page 110 STAT. 3009-190]]

    of Sciences shall review and report on the biological research
    activity <<NOTE: 43 USC 50.>> of the Survey: Provided further, That no
    part of this appropriation shall be used to pay more than one-half the
    cost of topographic mapping or water resources data collection and
    investigations carried on in cooperation with States and municipalities.

                            administrative provisions

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

                           Minerals Management Service

                    royalty and offshore minerals management

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

    [[Page 110 STAT. 3009-191]]

                               oil spill research

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

              Office of Surface Mining Reclamation and Enforcement

                            regulation and technology

        For necessary expenses to carry out the provisions of the Surface
    Mining Control and Reclamation Act of 1977, Public Law 95-87, as
    amended, including the purchase of not to exceed 10 passenger motor
    vehicles, for replacement only; $94,172,000, and notwithstanding 31
    U.S.C. 3302, an additional amount shall be credited to this account, to
    remain available until expended, from performance bond forfeitures in
    fiscal year 1997: Provided, That the Secretary of the Interior, pursuant
    to regulations, may utilize directly or through grants to States, moneys
    collected in fiscal year 1997 for civil penalties assessed under section
    518 of the Surface Mining Control and Reclamation Act of 1977 (30 U.S.C.
    1268), to reclaim lands adversely affected by coal mining practices
    after <<NOTE: 30 USC 1211 note.>> August 3, 1977, to remain available
    until expended: Provided further, That appropriations for the Office of
    Surface Mining Reclamation and Enforcement may provide for the travel
    and per diem expenses of State and tribal personnel attending Office of
    Surface Mining Reclamation and Enforcement sponsored training.

                         abandoned mine reclamation fund

        For necessary expenses to carry out title IV of the Surface Mining
    Control and Reclamation Act of 1977, Public Law 95-87, as amended,
    including the purchase of not more than 10 passenger motor vehicles for
    replacement only, $177,085,000, to be derived from receipts of the
    Abandoned Mine Reclamation Fund and to remain available until expended;
    of which up to $4,000,000 shall be for supplemental grants to States for
    the reclamation of abandoned sites with acid mine rock drainage from
    coal mines through the Appalachian Clean Streams Initiative: Provided,
    That grants to minimum program States will be $1,500,000 per State in
    fiscal year 1997: Provided further, That of the funds herein provided up
    to $18,000,000 may be used for the emergency program authorized by
    section 410 of Public Law 95-87, as amended, of which no more than 25
    per centum shall be used for emergency reclamation projects in any one
    State and funds for federally-administered emergency reclamation
    projects under this proviso shall not exceed $11,000,000: Provided
    further, That prior year unobligated funds appropriated for the
    emergency reclamation program shall not be subject to the 25 per centum
    limitation per State and may be used without fiscal year limitation for
    emergency projects: Provided further, That pursuant to Public Law 97-
    365, the Department of the Interior is authorized to use up to 20 per
    centum from the recovery of the delinquent debt owed to the United
    States Government to pay for contracts to collect these debts: Provided
    further, That funds made available to States under title IV of Public
    Law 95-87 may be used, at their discretion, for any required

    [[Page 110 STAT. 3009-192]]

    non-Federal share of the cost of projects funded by the Federal
    Government for the purpose of environmental restoration related to
    treatment or abatement of acid mine drainage from abandoned mines:
    Provided further, That such projects must be consistent with the
    purposes and priorities of the Surface Mining Control and Reclamation
    Act:
    Provided further, That the State of Maryland may set aside the greater
    of $1,000,000 or 10 percent of the total of the grants made available to
    the State under title IV of the Surface Mining Control and Reclamation
    Act of 1977, as amended (30 U.S.C. 1231 et. seq.), if the amount set
    aside is deposited in an acid mine drainage abatement and treatment fund
    established under a State law, pursuant to which law the amount
    (together with all interest earned on the amount) is expended by the
    State to undertake acid mine drainage abatement and treatment projects,
    except that before any amounts greater than 10 percent of its title IV
    grants are deposited in an acid mine drainage abatement and treatment
    fund, the State of Maryland must first complete all Surface Mining
    Control and Reclamation Act priority one projects.

                            Bureau of Indian Affairs

                          operation of indian programs

        For operation of Indian programs by direct expenditure, contracts,
    cooperative agreements, compacts, and grants including expenses
    necessary to provide education and welfare services for Indians, either
    directly or in cooperation with States and other organizations,
    including payment of care, tuition, assistance, and other expenses of
    Indians in boarding homes, or institutions, or schools; grants and other
    assistance to needy Indians; maintenance of law and order; management,
    development, improvement, and protection of resources and appurtenant
    facilities under the jurisdiction of the Bureau, including payment of
    irrigation assessments and charges; acquisition of water rights;
    advances for Indian industrial and business enterprises; operation of
    Indian arts and crafts shops and museums; development of Indian arts and
    crafts, as authorized by law; for the general administration of the
    Bureau, including such expenses in field offices; maintaining of Indian
    reservation roads as defined in 23 U.S.C. 101; and construction, repair,
    and improvement of Indian housing, $1,436,902,000, of which not to
    exceed $86,520,000 shall be for welfare assistance payments and not to
    exceed $90,829,000 shall be for payments to tribes and tribal
    organizations for contract support costs associated with ongoing
    contracts or grants or compacts entered into with the Bureau prior to
    fiscal year 1997, as authorized by the Indian Self-Determination Act of
    1975, as amended, and up to $5,000,000 shall be for the Indian Self-
    Determination Fund, which shall be available for the transitional cost
    of initial or expanded tribal contracts, grants, compacts, or
    cooperative agreements with the Bureau under such Act; and of which not
    to exceed $365,124,000 for school operations costs of Bureau-funded
    schools and other education programs shall become available on July 1,
    1997, and shall remain available until September 30, 1998; and of which
    not to exceed $53,805,000 for higher education scholarships, adult
    vocational training, and assistance to public schools under 25 U.S.C.
    452 et seq., shall remain available until September 30, 1998; and of

    [[Page 110 STAT. 3009-193]]

    which not to exceed $54,973,000 shall remain available until expended
    for housing improvement, road maintenance, attorney fees, litigation
    support, self-governance grants, the Indian Self-Determination Fund, and
    the Navajo-Hopi Settlement Program: Provided, That tribes and tribal
    contractors may use their tribal priority allocations for unmet indirect
    costs of ongoing contracts, grants or compact agreements and for unmet

    welfare assistance costs: Provided further, That funds made available to
    tribes and tribal organizations through contracts or grants obligated
    during fiscal year 1997, as authorized by the Indian Self-Determination
    Act of 1975, or grants authorized by the Indian Education Amendments of
    1988 (25 U.S.C. 2001 and 2008A) shall remain available until expended by
    the contractor or grantee: Provided further, That to provide funding
    uniformity within a Self-Governance Compact, any funds provided in this
    Act with availability for more than one year may be reprogrammed to one
    year availability but shall remain available within the Compact until
    expended: Provided further, That notwithstanding any other provision of
    law, Indian tribal governments may, by appropriate changes in
    eligibility criteria or by other means, change eligibility for general
    assistance or change the amount of general assistance payments for
    individuals within the service area of such tribe who are otherwise
    deemed eligible for general assistance payments so long as such changes
    are applied in a consistent manner to individuals similarly situated:
    Provided further, That any savings realized by such changes shall be
    available for use in meeting other priorities of the tribes: Provided
    further, That any net increase in costs to the Federal Government which
    result solely from tribally increased payment levels for general
    assistance shall be met exclusively from funds available to the tribe
    from within its tribal priority allocation: Provided further, That any
    forestry funds allocated to a tribe which remain unobligated as of
    September 30, 1997, may be transferred during fiscal year 1998 to an
    Indian forest land assistance account established for the benefit of
    such tribe within the tribe's trust fund account: Provided further, That
    any such
    unobligated balances not so transferred shall expire on September 30,
    1998: Provided further, That notwithstanding any other provision of law,
    no funds available to the Bureau, other than the amounts provided herein
    for assistance to public schools under 25 U.S.C. 452 et seq., shall be
    available to support the operation of any elementary or secondary school
    in the State of Alaska in fiscal year 1997: Provided further, That funds
    made available in this or any other Act for expenditure through
    September 30, 1998 for schools funded by the Bureau shall be available
    only to the schools in the Bureau school system as of September 1, 1995:
    Provided further, That no funds available to the Bureau shall be used to
    support expanded grades for any school or dormitory beyond the grade
    structure in place or approved by the Secretary of the Interior at each
    school in the Bureau school system as of October 1, 1995: Provided
    further, That <<NOTE: 25 USC 2012 note.>>  in fiscal year 1997 and
    thereafter, notwithstanding the provisions of 25 U.S.C. 2012(h)(1) (A)
    and (B), upon the recommendation of either (i) a local school board and
    school supervisor for an education position in a Bureau of Indian
    Affairs operated school, or (ii) an Agency school board and education
    line officer for an Agency education position, the Secretary shall
    establish adjustments to the rates of basic compensation or annual
    salary rates established under

    [[Page 110 STAT. 3009-194]]

    25 U.S.C. 2012(h)(1) (A) and (B) for education positions at the school
    or the Agency, at a level not less than that for comparable positions in
    the nearest public school district, and the adjustment shall be deemed
    to be a change to basic pay and shall not be subject to collective
    bargaining: Provided further, That any reduction to rates of basic
    compensation or annual salary rates below the rates established under 25
    U.S.C. 2012(h)(1) (A) and (B) shall apply only to educators appointed
    after June 30, 1997, and shall not affect the right of an individual
    employed on June 30, 1997, in an education position, to receive the
    compensation attached to such position under 25 U.S.C. 2012(h)(1) (A)
    and (B) so long as the individual remains in the same position at the
    same school: Provided further, That notwithstanding 25 U.S.C.
    2012(h)(1)(B), when the rates of basic compensation for teachers and
    counselors at Bureau-operated schools are established at the rates of
    basic compensation applicable to comparable positions in overseas
    schools under the Defense Department Overseas Teachers Pay and Personnel
    Practices Act, such rates shall become effective with the start of the
    next academic year following the issuance of the Department of Defense
    salary schedule and shall not be effected retroactively.

                                  construction

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

    [[Page 110 STAT. 3009-195]]

    between the Secretary and any grantee concerning a grant shall be
    subject to the disputes provision in 25 U.S.C. 2508(e).

     indian land and water claim settlements and miscellaneous payments to
                                     indians

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

                     indian guaranteed loan program account

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

                            administrative provisions

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

                              Departmental Offices

                                 Insular Affairs

                            assistance to territories

        For expenses necessary for assistance to territories under the
    jurisdiction of the Department of the Interior, $65,188,000, of which
    (1) $61,339,000 shall be available until expended for technical
    assistance, including maintenance assistance, disaster assistance,
    insular management controls, and brown tree snake control and

    [[Page 110 STAT. 3009-196]]

    research; grants to the judiciary in American Samoa for compensation and
    expenses, as authorized by law (48 U.S.C. 1661(c)); grants to the
    Government of American Samoa, in addition to current local revenues, for
    construction and support of governmental functions; grants to the
    Government of the Virgin Islands as authorized by law; grants to the
    Government of Guam, as authorized by law; and grants to the Government
    of the Northern Mariana Islands as authorized by law (Public Law 94-241;
    90 Stat. 272); and (2) $3,849,000 shall be available for salaries and
    expenses of the Office of Insular Affairs: Provided, That all <<NOTE: 48
    USC 1469b.>>  financial transactions of the territorial and local
    governments herein provided for, including such transactions of all
    agencies or instrumentalities established or utilized by such
    governments, may be audited by the General Accounting Office, at its
    discretion, in accordance with chapter 35 of title 31, United States
    Code: Provided further, That Northern Mariana Islands Covenant grant
    funding shall be provided according to those terms of the Agreement of
    the Special Representatives on Future United States Financial Assistance
    for the Northern Mariana Islands approved by Public Law 99-396, or any
    subsequent legislation related to Commonwealth of the Northern Mariana
    Islands grant funding: Provided further, That section 703(a) of Public
    Law 94-241, as amended, is <<NOTE: 48 USC 1801 note.>>  hereby amended
    by striking ``of the Government of the Northern Mariana Islands'':
    Provided further, That of the amounts provided for technical assistance,
    sufficient funding shall be made available for a grant to the Close Up
    Foundation: Provided further, That the funds for the program of
    operations and maintenance improvement are appropriated to
    institutionalize routine operations and maintenance improvement of
    capital infrastructure in American Samoa, Guam, the Virgin Islands, the
    Commonwealth of the Northern Mariana Islands, the Republic of Palau, the
    Republic of the Marshall Islands, and the Federated States of Micronesia
    through assessments of long-range operations maintenance needs, improved
    capability of local operations and maintenance institutions and agencies
    (including management and vocational education training), and project-
    specific maintenance (with territorial participation and cost sharing to
    be determined by the Secretary based on the individual territory's
    commitment to timely maintenance of its capital assets): Provided
    further, That any appropriation for disaster assistance under this head
    in this Act or previous appropriations Acts may be used as non-Federal
    matching funds for the purpose of hazard mitigation grants provided
    pursuant to section 404 of the Robert T. Stafford Disaster Relief and
    Emergency Assistance Act (42 U.S.C. 5170c).

                           compact of free association

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

    [[Page 110 STAT. 3009-197]]

                             Departmental Management

                              salaries and expenses

        For necessary expenses for management of the Department of the
    Interior, $58,286,00,\1\ of which not to exceed $7,500 may be for
    official reception and representation expenses, and of which up to
    $2,000,000 shall be available for workers compensation payments and
    unemployment compensation payments associated with the orderly closure
    of the United States Bureau of Mines
    ---------------------------------------------------------------------------
        \1\ Remainder of figure missing, complete figure probably
    should read ``$58,286,000''.
    ---------------------------------------------------------------------------

                             Office of the Solicitor

                              salaries and expenses

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

                           Office of Inspector General

                              salaries and expenses

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

                        National Indian Gaming Commission

                              salaries and expenses

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

                 Office of Special Trustee for American Indians

                             federal trust programs

        For operation of trust programs for Indians by direct expenditure,
    contracts, cooperative agreements, compacts, and grants, $32,126,000, to
    remain available until expended for trust funds management: Provided,
    That funds made available to tribes and tribal organizations through
    contracts or grants obligated during fiscal year 1997, as authorized by
    the Indian Self-Determination Act of 1975 (25 U.S.C. 450 et seq.), shall
    remain available until expended by the contractor or grantee: Provided
    further, That notwithstanding any other provision of law, the statute of
    limitations shall not commence to run on any claim, including any claim
    in litigation pending on the date of this Act, concerning losses to or
    mismanagement of trust funds, until the affected tribe or individual
    Indian has been furnished with an accounting of such funds from which
    the beneficiary can determine whether there

    [[Page 110 STAT. 3009-198]]

    has been a loss: Provided further, That unobligated balances previously
    made available (1) to liquidate obligations owed tribal and individual
    Indian payees of any checks canceled pursuant to section 1003 of the
    Competitive Equality Banking Act of 1987 (Public Law 100-86; 31 U.S.C.
    3334(b)), (2) to restore Individual Indian Monies trust funds, Indian
    Irrigation Systems, and Indian Power Systems accounts amounts invested
    in credit unions or defaulted savings and loan associations and which
    where not Federally insured, including any interest on these amounts
    that may have been earned, but was not because of the default, and (3)
    to reimburse Indian trust fund account holders for losses to their
    respective accounts where the claim for said loss has been reduced to a
    judgement or settlement agreement approved by the Department of Justice,
    under the heading ``Indian Land and Water Claim Settlements and
    Miscellaneous Payments to Indians'', Bureau of Indian Affairs in fiscal
    years 1995 and 1996, are hereby transferred to and merged with this
    appropriation and may only be used for the operation of trust programs,
    in accordance with this appropriation.

                            Administrative Provisions

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

                 GENERAL PROVISIONS, DEPARTMENT OF THE INTERIOR

        Sec. 101. Appropriations made in this title shall be available for
    expenditure or transfer (within each bureau or office), with the
    approval of the Secretary, for the emergency reconstruction,
    replacement, or repair of aircraft, buildings, utilities, or other
    facilities or equipment damaged or destroyed by fire, flood, storm, or
    other unavoidable causes: Provided, That no funds shall be made
    available under this authority until funds specifically made available
    to the Department of the Interior for emergencies shall have been
    exhausted: Provided further, That all funds used pursuant to this
    section are hereby designated by Congress to be ``emergency
    requirements'' pursuant to section 251(b)(2)(D) of the Balanced Budget
    and Emergency Deficit Control Act of 1985, and must be replenished by a
    supplemental appropriation which must be requested as promptly as
    possible.
        Sec. 102. The Secretary may authorize the expenditure or transfer of
    any no year appropriation in this title, in addition to the amounts
    included in the budget programs of the several agencies, for the
    suppression or
    emergency prevention of forest or range fires on or threatening lands
    under the jurisdiction of the Department of the Interior; for the
    emergency rehabilitation of burned-over lands under its jurisdiction;
    for emergency actions related to potential or actual earthquakes,
    floods, volcanoes, storms,

    [[Page 110 STAT. 3009-199]]

    or other unavoidable causes; for contingency planning subsequent to
    actual oilspills; response and natural resource damage assessment
    activities related to actual oilspills; for the prevention, suppression,
    and control of actual or potential grasshopper and Mormon cricket
    outbreaks on lands under the jurisdiction of the Secretary, pursuant to
    the authority in section 1773(b) of Public Law 99-198 (99 Stat. 1658);
    for emergency reclamation projects under section 410 of Public Law 95-
    87; and shall transfer, from any no year funds available to the Office
    of Surface Mining Reclamation and Enforcement, such funds as may be
    necessary to permit assumption of regulatory authority in the event a
    primacy State is not carrying out the regulatory provisions of the
    Surface Mining Act: Provided, That appropriations made in this title for
    fire suppression purposes shall be available for the payment of
    obligations incurred during the preceding fiscal year, and for
    reimbursement to other Federal agencies for destruction of vehicles,
    aircraft, or other equipment in connection with their use for fire
    suppression purposes, such reimbursement to be credited to
    appropriations currently available at the time of receipt thereof:
    Provided further, That for emergency rehabilitation and wildfire
    suppression activities, no funds shall be made available under this
    authority until funds appropriated to ``Wildland Fire Management'' shall
    have been exhausted: Provided further, That all funds used pursuant to
    this section are hereby designated by Congress to be ``emergency
    requirements'' pursuant to section 251(b)(2)(D) of the Balanced Budget
    and Emergency Deficit Control Act of 1985, and must be replenished by a
    supplemental appropriation which must be requested as promptly as
    possible: Provided further, That such replenishment funds shall be used
    to reimburse, on a pro rata basis, accounts from which emergency funds
    were transferred.

        Sec. 103. Appropriations made in this title shall be available for
    operation of warehouses, garages, shops, and similar facilities,
    wherever consolidation of activities will contribute to efficiency or
    economy, and said appropriations shall be reimbursed for services
    rendered to any other activity in the same manner as authorized by
    sections 1535 and 1536 of title 31, United States Code: Provided, That
    reimbursements for costs and supplies, materials, equipment, and for
    services rendered may be credited to the appropriation current at the
    time such reimbursements are received.
        Sec. 104. Appropriations made to the Department of the Interior in
    this title shall be available for services as authorized by 5 U.S.C.
    3109, when authorized by the Secretary, in total amount not to exceed
    $500,000; hire, maintenance, and operation of aircraft; hire of
    passenger motor vehicles; purchase of reprints; payment for telephone
    service in private residences in the field, when authorized under
    regulations approved by the Secretary; and the payment of dues, when
    authorized by the Secretary, for library membership in societies or
    associations which issue publications to members only or at a price to
    members lower than to subscribers who are not members.
        Sec. 105. Appropriations available to the Department of the Interior
    for salaries and expenses shall be available for uniforms or allowances
    therefor, as authorized by law (5 U.S.C. 5901-5902 and D.C. Code 4-204).
        Sec. 106. Appropriations made in this title shall be available for
    obligation in connection with contracts issued for services or

    [[Page 110 STAT. 3009-200]]

    rentals for periods not in excess of twelve months beginning at any time
    during the fiscal year.
        Sec.  107. Prior to the transfer of Presidio properties to the
    Presidio Trust, when authorized, the Secretary may not obligate in any
    calendar month more than \1/12\ of the fiscal year 1997 appropriation
    for operation of the Presidio: Provided, That prior to the transfer of
    any Presidio property to the Presidio Trust, the Secretary shall
    transfer such funds as the Trust deems necessary to initiate leasing and
    other authorized activities of the Trust: Provided further, That this
    section shall expire on December 31, 1996.
        Sec. 108. No final rule or regulation of any agency of the Federal
    Government pertaining to the recognition, management, or validity of a
    right-of-way pursuant to Revised Statute 2477 (43 U.S.C. 932) shall take
    effect unless expressly authorized by an Act of Congress subsequent to
    the date of enactment of this Act.
        Sec. 109. No funds provided in this title may be expended by the
    Department of the Interior for the conduct of offshore leasing and
    related activities placed under restriction in the President's
    moratorium statement of June 26, 1990, in the areas of Northern,
    Central, and Southern California; the North Atlantic; Washington and
    Oregon; and the Eastern Gulf of Mexico south of 26 degrees north
    latitude and east of 86 degrees west longitude.
        Sec. 110. No funds provided in this title may be expended by the
    Department of the Interior for the conduct of leasing, or the approval
    or permitting of any drilling or other exploration activity, on lands
    within the North Aleutian Basin planning area.
        Sec. 111. No funds provided in this title may be expended by the
    Department of the Interior for the conduct of preleasing and leasing
    activities in the Eastern Gulf of Mexico for Outer Continental Shelf
    Lease Sale 151 in the Outer Continental Shelf Natural Gas and Oil
    Resource Management Comprehensive Program, 1992-1997.
        Sec. 112. No funds provided in this title may be expended by the
    Department of the Interior for the conduct of preleasing and leasing
    activities in the Atlantic for Outer Continental Shelf Lease Sale 164 in
    the Outer Continental Shelf Natural Gas and Oil Resource Management
    Comprehensive Program, 1992-1997.
        Sec. 113. There is hereby established in the <<NOTE:  31 USC 501
    note.>> Treasury a franchise fund pilot, as authorized by section 403 of
    Public Law 103-356, to be available as provided in such section for
    costs of capitalizing and operating administrative services as the
    Secretary determines may be performed more advantageously as central
    services: Provided, That any inventories, equipment, and other assets
    pertaining to the services to be provided by such fund, either on hand
    or on order, less the related liabilities or unpaid obligations, and any
    appropriations made prior to the current year for the purpose of
    providing capital shall be used to capitalize such fund: Provided
    further, That such fund shall be paid in advance from funds available to
    the Department and other Federal agencies for which such centralized
    services are performed, at rates which will return in full all expenses
    of operation, including accrued leave, depreciation of fund plant and
    equipment, amortization of automatic data processing (ADP) software and
    systems (either acquired or donated) and an amount necessary to maintain
    a reasonable operating reserve, as determined by the Secretary: Provided
    further, That

    [[Page 110 STAT. 3009-201]]

    such fund shall provide services on a competitive basis: Provided
    further, That an amount not to exceed four percent of the total annual
    income to such fund may be retained in the fund for fiscal year 1997 and
    each fiscal year thereafter, to remain available until expended, to be
    used for the acquisition of capital equipment, and for the improvement
    and implementation of Department financial management, ADP, and other
    support systems: Provided further, That no later than thirty days after
    the end of each fiscal year amounts in excess of this reserve limitation
    shall be transferred to the Treasury: Provided further, That such
    franchise fund pilot shall terminate pursuant to section 403(f) of
    Public Law 103-356.

        Sec. 114. Public Law 102-495 is amended by adding the following new
    section:

    ``SEC. 10. WASHINGTON STATE REMOVAL OPTION.

          ``(a) Upon appropriation of $29,500,000 for the Federal government
    to acquire the projects in the State of Washington pursuant to this Act,
    the State of Washington may, upon the submission to Congress of a
    binding agreement to remove the projects within a reasonable period of
    time, purchase the projects from the Federal government for $2. Such a
    binding agreement shall provide for the full restoration of the Elwha
    River ecosystem and native anadromous fisheries, for protection of the
    existing quality and availability of water from the Elwha River for
    municipal and industrial uses from possible adverse impacts of dam
    removal, and for fulfillment by the State of each of the other
    obligations of the Secretary under this Act.
          ``(b) Upon receipt of the payment pursuant to subsection (a), the
    Federal government shall relinquish ownership and title of the projects
    to the State of Washington.
          ``(c) Upon the purchase of the projects by the State of
    Washington, section 3(a), (c), and (d), and Sections 4, 7, and 9 of this
    Act are hereby repealed, and the remaining sections renumbered
    accordingly.''.

        Sec. 115. Section 7 of Public Law 99-647 (16 U.S.C. 461 note) is
    amended to read as follows:

    ``SEC. 7. TERMINATION OF COMMISSION.

        ``The Commission shall terminate on November 10, 1997.''.
        Sec. 116. The Congress of the United States hereby designates and
    ratifies the assignment to the University of Utah as successor to, and
    beneficiary of, all the existing assets, revenues, funds and rights
    granted to the State of Utah under the Miners Hospital Grant (February
    20, 1929, 45 Stat. 1252) and the School of Mines Grant (July 26, 1894,
    28 Stat. 110). Further, the Secretary of the Interior is authorized and
    directed to accept such relinquishment of all remaining and unconveyed
    entitlement for quantity grants owed the State of Utah for the Miners
    Hospital Grant (February 20, 1929, 45 Stat. 1252) and any unconveyed
    entitlement that may remain for the University of Utah School of Mines
    Grant (July 26, 1894, 28 Stat. 110).
        Sec. 117. Section 402(b)(1) of The Indian Self-Determination and
    Education Assistance Act (25 U.S.C. 458bb) is amended to read as
    follows: ``(1) In addition to those Indian tribes participating in self-
    governance under subsection (a) of this section, the Secretary, acting
    through the Director of the Office of Self-Governance, may select up to
    50 new tribes per year from the applicant pool described in subsection
    (c) of this section to participate in self-governance.''.

    [[Page 110 STAT. 3009-202]]

        Sec. 118. <<NOTE: 25 USC 305a-1.>>  In fiscal year 1997 and
    thereafter, the Indian Arts and Crafts Board may charge admission fees
    at its museums; charge rent and/or franchise fees for shops located in
    its museums; publish and sell publications; sell or rent or license use
    of photographs or other images in hard copy or other forms; license the
    use of designs, in whole or in part, by others; charge for consulting
    services provided to others; and may accept the services of volunteers
    to carry out its mission: Provided, That all revenue derived from such
    activities is covered into the special fund established by section 4 of
    Public Law 74-355 (25 U.S.C. 305c).

        Sec. 119. Transfer of Certain Bureau of Land Management
    Facilities.--
                (a) Battle mountain, nevada.--Not later than 30 days after
            the date of enactment of this Act, the Secretary of the
            Interior, acting through the Director of the Bureau of Land
            Management, shall transfer to Lander County, Nevada, without
            consideration, title to the former Bureau of Land Management
            administrative site and associated buildings in Battle Mountain,
            Nevada.
                (b) Winnemucca, nevada.--
                        (1) Transfer.--Not later than 30 days after the date
                    of enactment of this Act, the Secretary of the Interior,
                    acting through the Director of the Bureau of Land
                    Management, shall transfer to the State of Nevada,
                    without consideration, title to the surplus Bureau of
                    Land Management District Office building in Winnemucca,
                    Nevada.
                        (2) Use.--The transfer under paragraph (1) is made
                    with the intent that the building shall be available to
                    meet the needs of the Department of Conservation and
                    Natural Resources of the State of Nevada.

        Sec. 120. Alaska Aviation Heritage.--
                (a) Findings.--The Congress finds that--
                        (1) the Department of the Interior's Grumman Goose
                    G21-A aircraft number N789 is to be retired from several
                    decades of active service in the State of Alaska in
                    1996; and
                        (2) the aircraft is of significant historic value to
                    the people of the State of Alaska.
                (b) Donation of aircraft.--The Secretary of the Interior
            shall transfer the Grumman Goose G21-A aircraft number N789 to
            the Alaska Aviation Heritage Museum in Anchorage, Alaska, at no
            cost to the museum, for permanent display.

        Sec. 121. The Mesquite Lands Act of 1988 is amended by adding the
    following at the end of section 3:
        ``(d) Fourth Area.--(1) No later than ten years after the date of
    enactment of this Act, the City of Mesquite shall notify the Secretary
    as to which if any of the public lands identified in paragraph (2) of
    this subsection the city wishes to purchase.
        ``(2) For a period of twelve years after the date of enactment of
    this Act, the city shall have exclusive right to purchase the following
    parcels of public lands:
                ``Parcel A--East \1/2\ Sec. 6, T. 13 S., R. 71 E., Mount
            Diablo Meridian; Sec. 5, T. 13 S., R. 71 E., Mount Diablo
            Meridian; West \1/2\ Sec. 4, T. 13 S., R. 71 E, Mount Diablo
            Meridian; East \1/2\, West \1/2\ Sec. 4, T. 13 S., R. 71 E.,
            Mount Diablo Meridian.

    [[Page 110 STAT. 3009-203]]

                ``Parcel B--North \1/2\ Sec. 7, T. 13 S., R. 71 E., Mount
            Diablo Meridian; South East \1/4\ Sec. 12, T. 13 S., R. 70 E.,
            Mount Diablo Meridian; East \1/2\, North East \1/4\ Sec. 12, T.
            13 S., R. 70 E., Mount Diablo Meridian; East \1/2\, West \1/2\
            North East \1/4\ Sec. 12, T. 13 S., R. 70 E., Mount Diablo
            Meridian.
                ``Parcel C--West \1/2\ Sec. 6, T. 13 S., R. 71 E., Mount
            Diablo Meridian; Sec. 1, T. 13 S., R. 70 E., Mount Diablo
            Meridian; West \1/2\, West \1/2\, North East \1/4\ Sec. 12, T.
            13 S., R. 70 E., Mount Diablo Meridian; North West \1/4\ Sec.
            13, S., R. 70 E., Mount Diablo Meridian; West \1/2\ Sec. 12, T.
            13 S., R. 70 E., Mount Diablo Meridian; East \1/2\, South East
            \1/4\, Sec. 11, T. 13 S., R. 70 E., Mount Diablo Meridian; East
            \1/2\ North East \1/4\, Sec. 14, T. 13 S., R. 70 E., Mount
            Diablo Meridian.
                ``Parcel D--South \1/2\ Sec. 14, T. 13 S., R. 70 E., Mount
            Diablo Meridian; South West \1/4\, Sec. 13, T. 13 S., R. 70 E.,
            Mount Diablo Meridian; Portion of section 23, North of
            Interstate 15, T. 13 S., R. 70 E., Mount Diablo Meridian;
            Portion of section 24, North of Interstate 15, T. 13 S., R. 70
            E., Mount Diablo Meridian; Portion of section 26, North of
            Interstate 15, T. 13 S., R. 70 E., Mount Diablo Meridian.''
        Sec. 122. Father <<NOTE: Father Aull Site Transfer Act of 1996.>>
    Aull Site Transfer.

        (a) This section may be cited as the ``Father Aull Site Transfer Act
    of 1996''.
        (b) Findings.--Congress finds that--
                (1) the buildings and grounds developed by Father Roger Aull
            located on public domain land near Silver City, New Mexico, are
            historically significant to the citizens of the community;
                (2) vandalism at the site has become increasingly
            destructive and frequent in recent years;
                (3) because of the isolated location and the distance from
            other significant resources and agency facilities, the Bureau of
            Land Management has been unable to devote sufficient resources
            to restore and protect the site from further damage; and
                (4) St. Vincent DePaul Parish in Silver City, New Mexico,
            has indicated an interest in, and developed a sound proposal for
            the restoration of, the site, such that the site could be
            permanently occupied and used by the community.

        (c) Conveyance of Property.--Subject to valid existing rights, all
    right, title and interest of the United States in and to the land
    (including improvements on the land), consisting of approximately 43.06
    acres, located approximately 10 miles east of Silver City, New Mexico,
    and described as follows: T. 17 S., R. 12 W., Section 30: Lot 13, and
    Section 31: Lot 27 (as generally depicted on the map dated July 1995) is
    hereby conveyed by operation of law to St. Vincent DePaul Parish in
    Silver City, New Mexico, without consideration.
        (d) Release.--Upon the conveyance of any land or interest in land
    identified in this section of St. Vincent DePaul Parish, St. Vincent
    DePaul Parish shall assume any liability for any claim relating to the
    land or interest in the land arising after the date of the conveyance.
        (e) Map.--The map referred to in this section shall be on file and
    available for public inspection in--

    [[Page 110 STAT. 3009-204]]

                (1) the State of New Mexico Office of the Bureau of Land
            Management, Santa Fe, New Mexico; and
                (2) the Las Cruces District Office of the Bureau of Land
            Management, Las Cruces, New Mexico.
          Sec. 123. The second proviso under the heading ``Bureau of Mines,
    Administrative Provisions'' of Public Law 104-134 is amended by
    inserting after the word ``authorized'' the word ``hereafter''.
          Sec. 124. <<NOTE: 16 USC 1011.>>  Watershed Restoration and
    Enhancement Agreements.
          (a) In General.--For fiscal year 1997 and each fiscal year
    thereafter, appropriations made for the Bureau of Land Management may be
    used by the Secretary of the Interior for the purpose of entering into
    cooperative agreements with willing private landowners for restoration
    and enhancement of fish, wildlife, and other biotic resources on public
    or private land or both that benefit these resources on public lands
    within the watershed.
          (b) Direct and Indirect Watershed Agreements.--The Secretary of
    the Interior may enter into a watershed restoration and enhancement
    agreement--
                (1) directly with a willing private landowner; or
                (2) indirectly through an agreement with a state, local, or
            tribal government or other public entity, educational
            institution, or private nonprofit organization.
          (c) Terms and Conditions.--In order for the Secretary to enter
    into a watershed restoration and enhancement agreement--
                (1) the agreement shall--
                        (A) include such terms and conditions mutually
                    agreed to by the Secretary and the landowner;
                        (B) improve the viability of and otherwise benefit
                    the fish, wildlife, and other biotic resources on public
                    land in the watershed;
                        (C) authorize the provision of technical assistance
                    by the Secretary in the planning of management
                    activities that will further the purposes of the
                    agreement;
                        (D) provide for the sharing of costs of implementing
                    the agreement among the Federal government, the
                    landowner, and other entities, as mutually agreed on by
                    the affected interests; and
                        (E) ensure that any expenditure by the Secretary
                    pursuant to the agreement is determined by the Secretary
                    to be in the public interest; and
                (2) the Secretary may require such other terms and
            conditions as are necessary to protect the public investment on
            private lands, provided such terms and conditions are mutually
            agreed to by the Secretary and the landowner.
          Sec. 125. Visitor Center Designation <<NOTE: 16 USC 410ff
    note.>> at Channel Islands National Park.
          (a) The visitor center at Channel Islands National Park,
    California, is hereby designated as the ``Robert J. Lagomarsino Visitor
    Center''.
          (b) Any reference in law, regulation, paper, record, map, or any
    other document in the United States to the visitor center referred to in
    subsection (a) shall be deemed to be a reference to the ``Robert J.
    Lagomarsino Visitor Center''.

    [[Page 110 STAT. 3009-205]]

                           TITLE II--RELATED AGENCIES

                            Department of Agriculture

                                 forest service

                          forest and rangeland research

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

                           state and private forestry

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

                             national forest system

        For necessary expenses of the Forest Service, not otherwise provided
    for, for management, protection, improvement, and utilization of the
    National Forest System, for ecosystem planning, inventory, and
    monitoring, and for administrative expenses associated with the
    management of funds provided under the heads ``Forest and Rangeland
    Research,'' ``State and Private Forestry,'' ``National Forest System,''
    ``Wildland Fire Management,'' ``Reconstruction and Construction,'' and
    ``Land Acquisition,'' $1,274,781,000 to remain available until expended,
    and including 50 per centum of all monies received during the prior
    fiscal year as fees collected under the Land and Water Conservation Fund
    Act of 1965, as amended, in accordance with section 4 of the Act (16
    U.S.C. 460l-6a(i)): Provided, That up to $5,000,000 of the funds
    provided herein for road maintenance shall be available for the planned
    obliteration of roads which are no longer needed.

                            wildland fire management

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

    [[Page 110 STAT. 3009-206]]

                         reconstruction and construction

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

                                land acquisition

        For expenses necessary to carry out the provisions of the Land and
    Water Conservation Fund Act of 1965, as amended (16 U.S.C. 460l-4-11),
    including administrative expenses, and for acquisition of land or
    waters, or interest therein, in accordance with statutory authority
    applicable to the Forest Service, $40,575,000, to be derived from the
    Land and Water Conservation Fund, to remain available until expended.

             acquisition of lands for national forests special acts

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

                 acquisition of lands to complete land exchanges

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

                              range betterment fund

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

    [[Page 110 STAT. 3009-207]]

         gifts, donations and bequests for forest and rangeland research

        For expenses authorized by 16 U.S.C. 1643(b), $92,000, to remain
    available until expended, to be derived from the fund established
    pursuant to the above Act.

                    administrative provisions, forest service

        Appropriations to the Forest Service for the current fiscal year
    shall be available for: (a) purchase of not to exceed 159 passenger
    motor vehicles of which 14 will be used primarily for law enforcement
    purposes and of which 149 shall be for replacement; acquisition of 10
    passenger motor vehicles from excess sources, and hire of such vehicles;
    operation and maintenance of aircraft, the purchase of not to exceed two
    for replacement only, and acquisition of 20 aircraft from excess
    sources; notwithstanding other provisions of law, existing aircraft
    being replaced may be sold, with proceeds derived or trade-in value used
    to offset the purchase price for the replacement aircraft; (b) services
    pursuant to 7 U.S.C. 2225, and not to exceed $100,000 for employment
    under 5 U.S.C. 3109; (c) purchase, erection, and alteration of buildings
    and other public improvements (7 U.S.C. 2250); (d) acquisition of land,
    waters, and interests therein, pursuant to 7 U.S.C. 428a;
    (e) for expenses pursuant to the Volunteers in the National Forest Act
    of 1972 (16 U.S.C 558a, 558d, 558a note); and (f) for debt collection
    contracts in accordance with 31 U.S.C. 3718(c).

        None of the funds made available under this Act shall be obligated
    or expended to change the boundaries of any region, to abolish any
    region, to move or close any regional office for research, State and
    private forestry, or National Forest System administration of the Forest
    Service, Department of Agriculture, or to implement any reorganization,
    ``reinvention'' or other type of organizational restructuring of the
    Forest Service, other than the relocation of the Regional Office for
    Region 5 of the Forest Service from San Francisco to excess military
    property at Mare Island, Vallejo, California, without the consent of the
    House and Senate Committees on Appropriations.
        Any funds available to the Forest Service may be used for
    retrofitting Mare Island facilities to accommodate the relocation:
    Provided, That funds for the move must come from funds otherwise
    available to Region 5: Provided further, That any funds to be provided
    for such purposes shall only be available upon approval of the House and
    Senate Committees on Appropriations.
        Any appropriations or funds available to the Forest Service may be
    advanced to the Wildland Fire Management appropriation and may be used
    for forest firefighting and the emergency rehabilitation of burned-over
    lands under its jurisdiction.
        Funds appropriated to the Forest Service shall be available for
    assistance to or through the Agency for International Development and
    the Foreign Agricultural Service in connection with forest and rangeland
    research, technical information, and assistance in foreign countries,
    and shall be available to support forestry and related natural resource
    activities outside the United States and its territories and
    possessions, including technical assistance, education and training, and
    cooperation with United States and international organizations.

    [[Page 110 STAT. 3009-208]]

        None of the funds made available to the Forest Service under this
    Act shall be subject to transfer under the provisions of section 702(b)
    of the Department of Agriculture Organic Act of 1944 (7 U.S.C. 2257) or
    7 U.S.C. 147b unless the proposed transfer is approved in advance by the
    House and Senate Committees on Appropriations in compliance with the
    reprogramming procedures contained in House Report 103-551.
        None of the funds available to the Forest Service may be
    reprogrammed without the advance approval of the House and Senate
    Committees on Appropriations in accordance with the procedures contained
    in House Report 103-551.
        No funds appropriated to the Forest Service shall be transferred to
    the Working Capital Fund of the Department of Agriculture without the
    approval of the Chief of the Forest Service.
        Notwithstanding any other provision of the law, any appropriations
    or funds available to the Forest Service may be used to disseminate
    program information to private and public individuals and organizations
    through the use of nonmonetary items of nominal value and to provide
    nonmonetary awards of nominal value and to incur necessary expenses for
    the nonmonetary recognition of private individuals and organizations
    that make contributions to Forest Service programs.
        Notwithstanding any other provision of law, money collected, in
    advance or otherwise, by the Forest Service under authority of section
    101 of Public Law 93-153 (30 U.S.C. 185(1)) as reimbursement of
    administrative and other costs incurred in processing pipeline right-of-
    way or permit applications and for costs incurred in monitoring the
    construction, operation, maintenance, and termination of any pipeline
    and related facilities, may be used to reimburse the applicable
    appropriation to which such costs were originally charged.
        Funds available to the Forest Service shall be available to conduct
    a program of not less than $1,000,000 for high priority projects within
    the scope of the approved budget which shall be carried out by the Youth
    Conservation Corps as authorized by the Act of August 13, 1970, as
    amended by Public Law 93-408.
        None of the funds available in this Act shall be used for timber
    sale preparation using clearcutting in hardwood stands in excess of 25
    percent of the fiscal year 1989 harvested volume in the Wayne National
    Forest, Ohio: Provided, That this limitation shall not apply to hardwood
    stands damaged by natural disaster: Provided further, That landscape
    architects shall be used to maintain a visually pleasing forest.
        Any money collected from the States for fire suppression assistance
    rendered by the Forest Service on non-Federal lands not in the vicinity
    of National Forest System lands shall be used to reimburse the
    applicable appropriation and shall remain available until expended as
    the Secretary may direct in conducting activities authorized by 16
    U.S.C. 2101 (note), 2101-2110, 1606, and 2111.
        Of the funds available to the Forest Service, $1,500 is available to
    the Chief of the Forest Service for official reception and
    representation expenses.
        Notwithstanding any other provision of law, the Forest Service is
    authorized to employ or otherwise contract with persons at regular rates
    of pay, as determined by the Service, to perform work occasioned by
    emergencies such as fires, storms, floods, earthquakes

    [[Page 110 STAT. 3009-209]]

    or any other unavoidable cause without regard to Sundays, Federal
    holidays, and the regular workweek.
        To the greatest extent possible, and in accordance with the Final
    Amendment to the Shawnee National Forest Plan, none of the funds
    available in this Act shall be used for preparation of timber sales
    using clearcutting or other forms of even aged management in hardwood
    stands in the Shawnee National Forest, Illinois.
          Pursuant to sections 405(b) and 410(b) of Public Law 101-593,
    funds up to $1,000,000 for matching funds shall be available for the
    National Forest Foundation on a one-for-one basis to match private
    contributions for projects on or benefitting National Forest System
    lands or related to Forest Service programs.

        Pursuant to section 2(b)(2) of Public Law 98-244, up to $1,000,000
    of the funds available to the Forest Service shall be available for
    matching funds, as authorized in 16 U.S.C. 3701-3709, on a one-for-one
    basis to match private contributions for projects on or benefitting
    National Forest System lands or related to Forest Service programs.
        Funds appropriated to the Forest Service shall be available for
    interactions with and providing technical assistance to rural
    communities for sustainable rural development purposes.
        Notwithstanding any other provision of law, 80 percent of the funds
    appropriated to the Forest Service in the National Forest System and
    Construction accounts and planned to be allocated to activities under
    the ``Jobs in the Woods'' program for projects on National Forest land
    in the State of Washington may be granted directly to the Washington
    State Department of Fish and Wildlife for accomplishment of planned
    projects. Twenty percent of said funds shall be retained by the Forest
    Service for planning and administering projects. Project selection and
    prioritization shall be accomplished by the Forest Service with such
    consultation with the State of Washington as the Forest Service deems
    appropriate.
        Funds appropriated to the Forest Service shall be available for
    payments to counties within the Columbia River Gorge National Scenic
    Area, pursuant to sections 14(c)(1) and (2), and section 16(a)(2) of
    Public Law 99-663.
          The Secretary of Agriculture shall by March 31, 1997 report to the
    Committees on Appropriations of the House of Representatives and the
    Senate on the status and disposition of all salvage timber sales started
    under the authority of Section 2001 of Public Law 104-19 and
    subsequently withdrawn or delayed and completed under different
    authorities as a consequence of the July 2, 1996 directive on the
    implementation of Section 2001 issued by the Secretary.
          The Pacific Northwest Research Station Silviculture Laboratory in
    Bend, Oregon is hereby named the ``Robert W. Chandler Building''.
          For purposes of the Southeast Alaska Economic Disaster Fund as set
    forth in section 101(c) of Public Law 104-134, the direct grants
    provided in subsection (c) shall be considered direct payments for
    purposes of all applicable law except that these direct grants may not
    be used for lobbying activities.
          No employee of the Department of Agriculture may be detailed or
    assigned from an agency or office funded by this Act to any other agency
    or office of the Department for more than 30 days unless the
    individual's employing agency or office is fully

    [[Page 110 STAT. 3009-210]]

    reimbursed by the receiving agency or office for the salary and expenses
    of the employee for the period of assignment.

                              DEPARTMENT OF ENERGY

                              clean coal technology

                                  (rescission)

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

                     fossil energy research and development

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

                          alternative fuels production

                  (including transfer and rescission of funds)

        Monies received as investment income on the principal amount in the
    Great Plains Project Trust at the Norwest Bank of North Dakota, in such
    sums as are earned as of October 1, 1996, shall be deposited in this
    account and immediately transferred to the General Fund of the Treasury.
    Monies received as revenue sharing from the operation of the Great
    Plains Gasification Plant shall be immediately transferred to the
    General Fund of the Treasury. Funds are hereby rescinded in the amount
    of $2,500,000 from unobligated balances under this head.

                     naval petroleum and oil shale reserves

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

                               energy conservation

        For necessary expenses in carrying out energy conservation
    activities, $569,762,000, to remain available until expended, including,
    notwithstanding any other provision of law, the excess amount for fiscal
    year 1997 determined under the provisions of section

    [[Page 110 STAT. 3009-211]]

    3003(d) of Public Law 99-509 (15 U.S.C. 4502): Provided, That
    $149,845,000 shall be for use in energy conservation programs as defined
    in section 3008(3) of Public Law 99-509 (15 U.S.C. 4507) and shall not
    be available until excess amounts are determined under the provisions of
    section 3003(d) of Public Law 99-509 (15 U.S.C. 4502): Provided further,
    That notwithstanding section 3003(d)(2) of Public Law 99-509 such sums
    shall be allocated to the eligible programs as follows:$120,845,000 for
    weatherization assistance grants and $29,000,000 for State energy
    conservation grants.

                               economic regulation

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

                           strategic petroleum reserve

                          (including transfer of funds)

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

                              spr petroleum account

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

                        energy information administration

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

                 administrative provisions, department of energy

        Appropriations under this Act for the current fiscal year shall be
    available for hire of passenger motor vehicles; hire, maintenance, and
    operation of aircraft; purchase, repair, and cleaning of uniforms;

    [[Page 110 STAT. 3009-212]]

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

                     DEPARTMENT OF HEALTH AND HUMAN SERVICES

                              Indian Health Service

                             indian health services

        For expenses necessary to carry out the Act of August 5, 1954 (68
    Stat. 674), the Indian Self-Determination Act, the Indian Health Care
    Improvement Act, and titles II and III of the Public Health Service Act
    with respect to the Indian Health Service, $1,806,269,000, together with
    payments received during the fiscal year pursuant to 42 U.S.C. 238(b)
    for services furnished by the Indian Health Service: Provided, That
    funds made available to tribes and tribal organizations through
    contracts, grant agreements, or any other agreements or compacts
    authorized by the Indian Self-Determination and Education Assistance Act
    of 1975 (25 U.S.C.

    [[Page 110 STAT. 3009-213]]

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

                            indian health facilities

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

                administrative provisions, indian health service

        Appropriations in this Act to the Indian Health Service shall be
    available for services as authorized by 5 U.S.C. 3109 but at

    [[Page 110 STAT. 3009-214]]

    rates not to exceed the per diem rate equivalent to the maximum rate
    payable for senior-level positions under 5 U.S.C. 5376; hire of
    passenger motor vehicles and aircraft; purchase of medical equipment;
    purchase of reprints; purchase, renovation and erection of modular
    buildings and renovation of existing facilities; payments for telephone
    service in private residences in the field, when authorized under
    regulations approved by the Secretary; and for uniforms or allowances
    therefore as authorized by 5 U.S.C. 5901-5902; and for expenses of
    attendance at meetings which are concerned with the functions or
    activities for which the appropriation is made or which will contribute
    to improved conduct, supervision, or management of those functions or
    activities: Provided, That in accordance with the provisions of the
    Indian Health Care Improvement Act, non-Indian patients may be extended
    health care at all tribally administered or Indian Health Service
    facilities, subject to charges, and the proceeds along with funds
    recovered under the Federal Medical Care Recovery Act (42 U.S.C. 2651-
    53) shall be credited to the account of the facility providing the
    service and shall be available without fiscal year limitation: Provided
    further, That notwithstanding any other law or regulation, funds
    transferred from the Department of Housing and Urban Development to the
    Indian Health Service shall be administered under Public Law 86-121 (the
    Indian Sanitation Facilities Act) and Public Law 93-638, as amended:
    Provided further, That funds appropriated to the Indian Health Service
    in this Act, except those used for administrative and program direction
    purposes, shall not be subject to limitations directed at curtailing
    Federal travel and transportation: Provided further, That
    notwithstanding any other provision of law, funds previously or herein
    made available to a tribe or tribal organization through a contract,
    grant, or agreement authorized by title I or title III of the Indian
    Self-Determination and Education Assistance Act of 1975 (25 U.S.C. 450),
    may be deobligated and reobligated to a self-determination contract
    under title I, or a self-governance agreement under title III of such
    Act and thereafter shall remain available to the tribe or tribal
    organization without fiscal year limitation: Provided further, That none
    of the funds made available to the Indian Health Service in this Act
    shall be used to implement the final rule published in the Federal
    Register on September 16, 1987, by the Department of Health and Human
    Services, relating to the eligibility for the health care services of
    the Indian Health Service until the Indian Health Service has submitted
    a budget request reflecting the increased costs associated with the
    proposed final rule, and such request has been included in an
    appropriations Act and enacted into law: Provided further, That funds
    made available in this Act are to be apportioned to the Indian Health
    Service as appropriated in this Act, and accounted for in the
    appropriation structure set forth in this Act: Provided further, That
    funds received from any source, including tribal contractors and
    compactors for previously transferred functions which tribal contractors
    and compactors no longer wish to retain, for services, goods, or
    training and technical assistance, shall be retained by the Indian
    Health Service and shall remain available until expended by the Indian
    Health Service: Provided further, That reimbursements for training,
    technical assistance, or services provided by the Indian Health Service
    will contain total costs, including direct, administrative, and overhead

    [[Page 110 STAT. 3009-215]]

    associated with the provision of goods, services, or technical
    assistance: Provided further, That the appropriation structure for the
    Indian Health Service may not be altered without advance approval of the
    House and Senate Committees on Appropriations.

                             DEPARTMENT OF EDUCATION

                  Office of Elementary and Secondary Education

                                indian education

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

                             OTHER RELATED AGENCIES

                   Office of Navajo and Hopi Indian Relocation

                              salaries and expenses

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

        Institute of American Indian and Alaska Native Culture and Arts
                                   Development

                            payment to the institute

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

                             Smithsonian Institution

                              salaries and expenses

        For necessary expenses of the Smithsonian Institution, as authorized
    by law, including research in the fields of art, science,

    [[Page 110 STAT. 3009-216]]

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

             construction and improvements, national zoological park

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

                       repair and restoration of buildings

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

                                  construction

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

                             National Gallery of Art

                              salaries and expenses

        For the upkeep and operations of the National Gallery of Art, the
    protection and care of the works of art therein, and administrative
    expenses incident thereto, as authorized by the Act of March 24, 1937
    (50 Stat. 51), as amended by the public resolution of April 13, 1939
    (Public Resolution 9, Seventy-sixth Congress), including services as
    authorized by 5 U.S.C. 3109; payment in advance when authorized by the
    treasurer of the Gallery for membership

    [[Page 110 STAT. 3009-217]]

    in library, museum, and art associations or societies whose publications
    or services are available to members only, or to members at a price
    lower than to the general public; purchase, repair, and cleaning of
    uniforms for guards, and uniforms, or allowances therefor, for other
    employees as authorized by law (5 U.S.C. 5901-5902); purchase or rental
    of devices and services for protecting buildings and contents thereof,
    and maintenance, alteration, improvement, and repair of buildings,
    approaches, and grounds; and purchase of services for restoration and
    repair of works of art for the National Gallery of Art by contracts
    made, without advertising, with individuals, firms, or organizations at
    such rates or prices and under such terms and conditions as the Gallery
    may deem proper, $53,899,000, of which not to exceed $3,026,000 for the
    special exhibition program shall remain available until expended.

                 repair, restoration and renovation of buildings

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

                 John F. Kennedy Center for the Performing Arts

                           operations and maintenance

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

                                  construction

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

                Woodrow Wilson International Center for Scholars

                              salaries and expenses

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

               National Foundation on the Arts and the Humanities

                         National Endowment for the Arts

                            grants and administration

        For necessary expenses to carry out the National Foundation on the
    Arts and the Humanities Act of 1965, as amended, $82,734,000, shall be
    available to the National Endowment for

    [[Page 110 STAT. 3009-218]]

    the Arts for the support of projects and productions in the arts through
    assistance to organizations and individuals pursuant to section 5(c) of
    the Act, and for administering the functions of the Act, to remain
    available until expended.

                                 matching grants

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

                      National Endowment for the Humanities

                            grants and administration

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

                                 matching grants

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

                          Institute of Museum Services

                            grants and administration

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

                            administrative provisions

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

    [[Page 110 STAT. 3009-219]]

    Foundation on the Arts and the Humanities may be used for official
    reception and representation expenses.

                             Commission of Fine Arts

                              salaries and expenses

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

                   national capital arts and cultural affairs

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

                    Advisory Council on Historic Preservation

                              salaries and expenses

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

                      National Capital Planning Commission

                              salaries and expenses

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

                  Franklin Delano Roosevelt Memorial Commission

                              salaries and expenses

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

                    United States Holocaust Memorial Council

                           holocaust memorial council

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

                          TITLE III--GENERAL PROVISIONS

        Sec. 301. The expenditure of any appropriation under this Act for
    any consulting service through procurement contract, pursuant to 5
    U.S.C. 3109, shall be limited to those contracts where such expenditures
    are a matter of public record and available

    [[Page 110 STAT. 3009-220]]

    for public inspection, except where otherwise provided under existing
    law, or under existing Executive Order issued pursuant to existing law.
        Sec. 302. No part of any appropriation under this Act shall be
    available to the Secretary of the Interior or the Secretary of
    Agriculture for the leasing of oil and natural gas by noncompetitive
    bidding on publicly owned lands within the boundaries of the Shawnee
    National Forest, Illinois: Provided, That nothing herein is intended to
    inhibit or otherwise affect the sale, lease, or right to access to
    minerals owned by private individuals.
        Sec. 303. No part of any appropriation contained in this Act shall
    be available for any activity or the publication or distribution of
    literature that in any way tends to promote public support or opposition
    to any legislative proposal on which congressional action is not
    complete.
        Sec. 304. No part of any appropriation contained in this Act shall
    remain available for obligation beyond the current fiscal year unless
    expressly so provided herein.
        Sec. 305. None of the funds provided in this Act to any department
    or agency shall be obligated or expended to provide a personal cook,
    chauffeur, or other personal servants to any officer or employee of such
    department or agency except as otherwise provided by law.
        Sec. 306. No assessments may be levied against any program, budget
    activity, subactivity, or project funded by this Act unless advance
    notice of such assessments and the basis therefor are presented to the
    Committees on Appropriations and are approved by such Committees.
        Sec. 307. (a) Compliance With Buy American Act.--None of the funds
    made available in this Act may be expended by an entity unless the
    entity agrees that in expending the funds the entity will comply with
    sections 2 through 4 of the Act of March 3, 1933 (41 U.S.C. 10a-10c;
    popularly known as the ``Buy American Act'').
        (b) Sense of Congress; Requirement Regarding Notice.--
                (1) Purchase of american-made equipment and products.--In
            the case of any equipment or product that may be authorized to
            be purchased with financial assistance provided using funds made
            available in this Act, it is the sense of the Congress that
            entities receiving the assistance should, in expending the
            assistance, purchase only American-made equipment and products.
                (2) Notice to recipients of assistance.--In providing
            financial assistance using funds made available in this Act, the
            head of each Federal agency shall provide to each recipient of
            the assistance a notice describing the statement made in
            paragraph (1) by the Congress.

         (c) Prohibition of Contracts With Persons Falsely Labeling Products
    as Made in America.--If it has been finally determined by a court or
    Federal agency that any person intentionally affixed a label bearing a
    ``Made in America'' inscription, or any inscription with the same
    meaning, to any product sold in or shipped to the United States that is
    not made in the United States, the person shall be ineligible to receive
    any contract or subcontract made with funds made available in this Act,
    pursuant to the debarment, suspension, and ineligibility procedures
    described in sections 9.400 through 9.409 of title 48, Code of Federal
    Regulations.

    [[Page 110 STAT. 3009-221]]

        Sec. 308. None of the funds in this Act may be used to plan,
    prepare, or offer for sale timber from trees classified as giant sequoia
    (Sequoiadendron giganteum) which are located on National Forest System
    or Bureau of Land
    Management lands in a manner different than such sales were conducted in
    fiscal year 1995.

        Sec. 309. None of the funds made available by this Act may be
    obligated or expended by the National Park Service to enter into or
    implement a concession contract which permits or requires the removal of
    the underground lunchroom at the Carlsbad Caverns National Park.
        Sec. 310. Where the actual costs of construction projects under
    self-determination contracts, compacts, or grants, pursuant to Public
    Laws 93-638, 103-413, or 100-297, are less than the estimated costs
    thereof, use of the resulting excess funds shall be determined by the
    appropriate Secretary after consultation with the tribes.
        Sec. 311. Notwithstanding Public Law 103-413, quarterly payments of
    funds to tribes and tribal organizations under annual funding agreements
    pursuant to section 108 of Public Law 93-638, as amended, may be made on
    the first business day following the first day of a fiscal quarter.
        Sec. 312. None of the funds appropriated or otherwise made available
    by this Act may be used for the AmeriCorps program, unless the relevant
    agencies of the Department of the Interior and/or Agriculture follow
    appropriate reprogramming guidelines: Provided, That if no funds are
    provided for the AmeriCorps program by the VA-HUD and Independent
    Agencies fiscal year 1997 appropriations bill, then none of the funds
    appropriated or otherwise made available by this Act may be used for the
    AmeriCorps programs.
        Sec. 313. None of the funds made available in this Act may be used
    (1) to demolish the bridge between Jersey City, New Jersey, and Ellis
    Island; or (2) to prevent pedestrian use of such bridge, when it is made
    known to the Federal official having authority to obligate or expend
    such funds that such pedestrian use is consistent with generally
    accepted safety standards.
        Sec. 314. (a) None of the funds appropriated or otherwise made
    available pursuant to this Act shall be obligated or expended to accept
    or process applications for a patent for any mining or mill site claim
    located under the general mining laws.
        (b) The provisions of subsection (a) shall not apply if the
    Secretary of the Interior determines that, for the claim concerned: (1)
    a patent application was filed with the Secretary on or before September
    30, 1994, and (2) all requirements established under sections 2325 and
    2326 of the Revised Statutes (30 U.S.C. 29 and 30) for vein or lode
    claims and sections 2329, 2330, 2331, and 2333 of the Revised Statutes
    (30 U.S.C. 35, 36, and 37) for placer claims, and section 2337 of the
    Revised Statutes (30 U.S.C. 42) for mill site claims, as the case may
    be, were fully complied with by the applicant by that date.
        (c) Processing Schedule.--For those applications for patents
    pursuant to subsection (b) which were filed with the Secretary of the
    Interior, prior to September 30, 1994, the Secretary of the Interior
    shall--
                (1) Within three months of the enactment of this Act, file
            with the House and Senate Committees on Appropriations and the
            Committee on Resources of the House of Representatives and the
            Committee on Energy and Natural Resources

    [[Page 110 STAT. 3009-222]]

            of the United States Senate a plan which details how the
            Department of the Interior will make a final determination as to
            whether or not an applicant is entitled to a patent under the
            general mining laws on at least 90 percent of such applications
            within five years of the enactment of this Act and file reports
            annually thereafter with the same committees detailing actions
            taken by the Department of the Interior to carry out such plan;
            and
                (2) Take such actions as may be necessary to carry out such
            plan.

        (d) Mineral Examinations.--In order to process patent applications
    in a timely and responsible manner, upon the request of a patent
    applicant, the Secretary of the Interior shall allow the applicant to
    fund a qualified third-party contractor to be selected by the Bureau of
    Land Management to conduct a mineral examination of the mining claims or
    mill sites contained in a patent application as set forth in subsection
    (b). The Bureau of Land Management shall have the sole responsibility to
    choose and pay the third-party contractor in accordance with the
    standard procedures employed by the Bureau of Land Management in the
    retention of third-party contractors.
        Sec. 315. None of the funds appropriated or otherwise made available
    by this Act may be used for the purposes of acquiring lands in the
    counties of Gallia, Lawrence, Monroe, or Washington, Ohio, for the Wayne
    National Forest.
        Sec. 316. Of the funds provided to the National Endowment for the
    Arts:
                (a) The Chairperson shall only award a grant to an
            individual if such grant is awarded to such individual for a
            literature fellowship, National Heritage Fellowship, or American
            Jazz Masters Fellowship.
                (b) The Chairperson shall establish procedures to ensure
            that no funding provided through a grant, except a grant made to
            a State or local arts agency, or regional group, may be used to
            make a grant to any other organization or individual to conduct
            activity independent of the direct grant recipient. Nothing in
            this subsection shall prohibit payments made in exchange for
            goods and services.
                (c) No grant shall be used for seasonal support to a group,
            unless the application is specific to the contents of the
            season, including identified programs and/or projects.
          Sec. 317. None of the funds available to the Department of the
    Interior or the Department of Agriculture by this or any other Act may
    be used to prepare, promulgate, implement, or enforce any interim or
    final rule or regulation pursuant to Title VIII of the Alaska National
    Interest Lands Conservation Act to assert jurisdiction, management, or
    control over any waters (other than non-navigable waters on Federal
    lands), non-Federal lands, or lands selected by, but not conveyed to,
    the State of Alaska pursuant to the Submerged Lands Act of 1953 or the
    Alaska Statehood Act, or an Alaska Native Corporation pursuant to the
    Alaska Native Claims Settlement Act.

        Sec. 318. No funds appropriated under this or any other Act shall be
    used to review or modify sourcing areas previously approved under
    section 490(c)(3) of the Forest Resources Conservation and Shortage
    Relief Act of 1990 (Public Law 101-382) or to enforce or implement
    Federal regulations 36 CFR part 223 promulgated

    [[Page 110 STAT. 3009-223]]

    on September 8, 1995. The regulations and interim rules in effect prior
    to September 8, 1995 (36 CFR 223.48, 36 CFR 223.87, 36 CFR 223 subpart
    D, 36 CFR 223 subpart F, and 36 CFR 261.6) shall remain in effect. The
    Secretary of Agriculture or the Secretary of the Interior shall not
    adopt any policies concerning Public Law 101-382 or existing regulations
    that would restrain domestic transportation or processing of timber from
    private lands or impose additional accountability
    requirements <<NOTE: 16 USC 620c note.>>  on any timber. The Secretary
    of Commerce shall extend until September 30, 1997, the order issued
    under section 491(b)(2)(A) of Public Law 101-382 and shall issue an
    order under section 491(b)(2)(B) of such law that will be effective
    October 1, 1997.

        Sec. 319. Section 101(c) of Public <<NOTE: 16 USC 460l-6a note.>>
    Law 104-134 is amended as follows: Under the heading ``Title III--
    General Provisions'' amend section 315(b) by striking ``50, areas,'' and
    inserting in lieu thereof ``100, areas,'' and amend section 315(f) by
    striking ``September 30, 1998'' and inserting in lieu thereof
    ``September 30, 1999'' and by striking ``September 30, 2001'' and
    inserting in lieu thereof ``September 30, 2002''.

        Sec. 320. None of the amounts made available by this Act may be used
    for design, planning, implementation, engineering, construction, or any
    other activity in connection with a scenic shoreline drive in Pictured
    Rocks National Lakeshore.
        Sec. 321. Land Transfer, Bend Silviculture Lab, Deschutes National
    Forest, Oregon.--
                (a) Transfer of real property and all improvements located
            thereon.--Notwithstanding any other provisions of law, there is
            hereby transferred, without consideration and subject to
            existing valid rights, all right, title and interest of the
            United States in and to approximately 5.73 acres of land as
            described by plat dated July 7, 1977, (which is on file and
            available for public inspection in the Office of the Chief, USDA
            Forest Service, Washington, D.C.), as well as all improvements,
            including the Bend Silviculture Lab located thereon, to the
            Central Oregon Community College, Bend, Oregon; this being a
            portion of the same tract acquired by donation from the City of
            Bend on August 10, 1960, through a Bargain and Sale deed to the
            USDA Forest Service for use as a research lab, and recorded in
            volume 125, page 508 of the Deschutes County, Oregon, Deed
            Records.
                (b) Conditions of transfer.--The transfer effected by
            subsection (a) is made subject to no special terms or
            conditions.

        Sec. 322. No part of any appropriation contained in this Act or any
    other Act shall be expended or obligated to fund the activities of the
    Office of Forestry and Economic Assistance, or any successor office
    after December 31, 1996.
        Sec. 323. (a) The Secretary of the Interior is authorized to accept
    title to approximately 84 acres of land located in Prince Georges
    County, Maryland, adjacent to Oxon Cove Park, and bordered generally by
    the Potomac River, Interstate 295 and the Woodrow Wilson Bridge, or any
    interest therein, and in exchange therefor may convey to the Corrections
    Corporation of America approximately 50 acres of land located in Oxon
    Cove Park in the District of Columbia and bordered generally by Oxon
    Cove, Interstate 295 and the District of Columbia Impound Lot, or any
    interest therein.
        (b) Before proceeding with an exchange, the Secretary shall
    determine if the federal property is suitable for exchange under

    [[Page 110 STAT. 3009-224]]

    the criteria normally used by the National Park Service. The exchange
    shall comply with applicable regulations and National Park Service
    policies for land exchanges.
        (c)(1) The Secretary shall not acquire any lands under this section
    if the Secretary determines that the lands or any portion thereof have
    become contaminated with hazardous substances (as defined in the
    Comprehensive Environmental Response, Compensation, and Liability Act
    (42 U.S.C. 960l)).
        (2) Notwithstanding any other provision of law, the United States
    shall have no responsibility or liability with respect to any hazardous
    wastes or other substances placed on any of the lands covered by this
    section after their transfer to the ownership of any party, but nothing
    in this section shall be construed as either diminishing or increasing
    any responsibility or liability of the United States based on the
    condition of such lands on the date of their transfer to the ownership
    of another party: Provided, That the Corrections Corporation of America
    shall indemnify the United States for liabilities arising under the
    Comprehensive Environmental Response, Compensation, and Liability Act
    (42 U.S.C. 960l) and the Resource Conservation Recovery Act (42 U.S.C.
    690l, et seq.).
        (d) The properties so exchanged either shall be approximately equal
    in fair market value or if they are not approximately equal, shall be
    equalized by the payment of cash to the Corporation or to the Secretary
    as required or in the event the value of the Corporation's lands is
    greater, the acreage may be reduced so that the fair market value is
    approximately equal: Provided, That the Secretary shall order appraisals
    made of the fair market value for improvements thereon: Provided
    further, That any such cash payment received by the Secretary shall be
    deposited to ``Miscellaneous Trust Funds, National Park Service'' and
    shall be available without further appropriation until expended for the
    acquisition of land within the National Park System.
        (e) Costs of conducting necessary land surveys, preparing the legal
    descriptions of the lands to be conveyed, performing the appraisals, and
    administrative costs incurred in completing the exchange shall be borne
    by the Corporation.
        (f) Following any exchange authorized by this provision, the
    boundaries of Oxon Cove Park shall be expanded to include the land
    acquired by the United States.
        Sec. 324. Section 1. Land Exchange.--
                (a) Exchange.--Subject to subsection (c), the Secretary of
            Agriculture (referred to in this section as the ``Secretary'')
            shall convey all right, title, and interest of the United States
            in and to the National Forest System lands described in
            subsection (b)(1) to Public Utility District No. 1 of Chelan
            County, Washington (referred to in this section as the ``Public
            Utility District''), in exchange for the conveyance to the
            Department of Agriculture by the Public Utility District of all
            right, title, and interest of the Public Utility District in and
            to the lands described in subsection (b)(2).
                (b) Description of lands.--
                        (1) National Forest System Lands.--The National
                    Forest System lands referred to in subsection (a) are
                    122 acres, more or less, that are partially occupied by
                    a wastewater treatment facility referred to in
                    subsection (c)(4)(A) with the following legal
                    description:

    [[Page 110 STAT. 3009-225]]

                              (A) The NE\1/4\ of SW\1/4\ of section 27 of
                          township 27 north, range 17 east, Willamette
                          Meridian, Chelan County, Washington.
                              (B) The N\1/2\ of SE\1/4\ of SW\1/4\ of such
                          section 27.
                              (C) The W\1/2\ of NW\1/4\ of SE\1/4\ of such
                          section 27.
                              (D) The NW\1/4\ of SW\1/4\ of SE\1/4\ of such
                          section 27.
                              (E) The E\1/2\ of NW\1/4\ of the SE\1/4\ of
                          such section 27.
                              (F) That portion of the S\1/2\ of SE\1/4\ of
                          SW\1/4\ lying north of the northerly edge of
                          Highway 209 right-of-way of such section 27.
                        (2) Public utility district lands.--The lands owned
                    by the Public Utility District are 109.15 acres, more or
                    less, with the following legal description:
                              (A) S\1/2\ of SW\1/4\ of section 35 of
                          township 26 north, range 17 east, Willamette
                          Meridian, Chelan County, Washington.
                              (B) The area specified by Public Utility
                          District No. 1 as Government Lot 5 in such section
                          35.
                (c) Requirements for exchange.--
                        (1) Title acceptance and conveyance.--Upon offer by
                    the Public Utility District of all right, title and
                    interest in and to the lands described in subsection
                    (b)(2), if the title is found acceptable by the
                    Secretary, the Secretary shall accept title to such
                    lands and interests therein and shall convey to the
                    Public Utility District all right, title, and interest
                    of the United States in and to the lands described in
                    subsection (b)(1).
                        (2) Appraisals required.--Before making an exchange
                    pursuant to subsection (a), the Secretary shall conduct
                    appraisals of the lands that are subject to the exchange
                    to determine the fair market value of the lands. Such
                    appraisals shall not include the value of the wastewater
                    treatment facility referred to in paragraph (4)(A).
                        (3) Additional consideration.--If, on the basis of
                    the appraisals made under paragraph (1), the Secretary
                    determines that the fair market value of the lands to be
                    conveyed by one party under subsection (a) is less than
                    the fair market value of the lands to be conveyed by the
                    other party under subsection (a), then, as a condition
                    of making the exchange under subsection (a), the party
                    conveying the lands with the lesser value shall pay the
                    other party the amount by which the fair market value of
                    the lands of greater value exceeds the fair market value
                    of the lands of lesser value.
                        (4) Conveyance of wastewater treatment facility.--
                    (A) As part of an exchange made under subsection (a),
                    the Secretary shall convey to the Public Utility
                    District of Chelan County, Washington, all right, title
                    and interest of the United States in and to the
                    wastewater treatment facility (including the wastewater
                    treatment plant and associated lagoons) located on the
                    lands described in subsection (b)(1) that is in
                    existence on the date of the exchange.

    [[Page 110 STAT. 3009-226]]

                        (B) As a condition for the exchange under subsection
                    (a), the Public Utility District shall provide for a
                    credit equal to the fair market value of the wastewater
                    treatment facility conveyed pursuant to subparagraph (A)
                    (determined as of November 4, 1991), that shall be
                    applied to the United States' share of any new
                    wastewater treatment facility constructed by the Public
                    Utility District after such date.
                (d) Additional terms and conditions.--The Secretary may
            require such additional terms and conditions in connection with
            the exchange under this section as the Secretary determines
            appropriate to protect the interests of the United States.

        Sec. 325. ``Snoqualmie National Forest Boundary Adjustment Act of
    1996.''
                (a) In general.--The Secretary of Agriculture is hereby
            directed to modify the boundary of the Snoqualmie National
            Forest to include and encompass 10,589.47 acres, more or less,
            as generally depicted on a map entitled ``Snoqualmie National
            Forest Proposed 1996 Boundary Modification'' dated July, 1996.
            Such map, together with a legal description of all lands
            included in the boundary adjustment, shall be on file and
            available for public inspection in the Office of the Chief of
            the Forest Service in Washington, District of Columbia.
                (b) Rule for land and water conservation fund.--For the
            purposes of section 7 of the Land and Water Conservation Fund
            Act of 1965 (16 U.S.C. 460l-9), the boundary of the Snoqualmie
            National Forest, as modified pursuant to subsection (a), shall
            be considered to be the boundary of that National Forest as of
            January 1, 1965.

        Sec. 326. Sugarbush Land Exchange Act of 1996.
                (a) Exchange or sale of land.--
                        (1) If Sugarbush Resort Holdings, Inc. conveys to
                    the United States land acceptable to the Secretary of
                    Agriculture that is at least equal in value to the value
                    of the land described in subsection (a)(2), makes a
                    payment of cash at least equal to that value, or conveys
                    land and makes a payment of cash that in combination are
                    at least equal to that value, the Secretary, subject to
                    valid existing rights, shall, under such terms and
                    conditions as the Secretary may prescribe, convey all
                    right, title, and interest of the United States in and
                    to the land described in subsection (a)(2).
                        (2) Federal land to be exchanged.--The Federal land
                    to be exchanged is approximately 57 acres of federally
                    owned land in the Green Mountain National Forest
                    depicted on the map entitled ``Green Mountain National
                    Forest, Sugarbush Exchange,'' dated December 1995.
                        (3) Lands acquired from Sugarbush Resort Holdings,
                    Inc.--Any land conveyed to the United States in an
                    exchange under subsection (a)(1) shall be subject to
                    such valid existing rights of record as may be
                    acceptable to the Secretary, and the title to the parcel
                    shall conform with the title approval standards
                    applicable to federal land acquisitions.
                (b) Administration of land.--
                        (1) Addition to green mountain national forest.--On
                    approval and acceptance of title by the Secretary, the

    [[Page 110 STAT. 3009-227]]

                    land acquired by the United States through an exchange
                    or with proceeds from a sale under subsection (a) shall
                    become part of the Green Mountain National Forest, and
                    the boundaries of the National Forest shall be adjusted
                    to include the land.
                        (2) Administration.--Land acquired under this Act
                    shall be administered by the Secretary in accordance
                    with the laws (including regulations) pertaining to the
                    National Forest System.
                        (3) Authority of the secretary.--This section does
                    not limit the authority of the Secretary to adjust the
                    boundaries of the Green Mountain National Forest
                    pursuant to section 11 of the Act of March 1, 1911 (36
                    Stat. 963, chapter 186; 16 U.S.C. 521) (commonly known
                    as the ``Weeks Law'').
                        (4) For the purposes of section 7 of the Land and
                    Water Conservation Fund Act of 1965 (16 U.S.C. 460l-9),
                    the boundaries of the Green Mountain National Forest, as
                    adjusted under this Act, shall be considered to be the
                    boundaries of the Green Mountain National Forest as of
                    January 1, 1965.
          Sec. 327. Snowbird Wilderness Study Area.
          (a) In General.--Section 6(a)(4) of the North Carolina Wilderness
    Act of 1984 (Public Law 98-324) is amended--
                (1) by striking ``eight thousand four hundred and ninety
            acres'' and inserting ``8,390 acres''; and
                (2) by striking ``July 1983'' and inserting ``July 1996''.
          (b) Management.--The Secretary of Agriculture shall manage the
    area removed from wilderness study status by the amendments made by
    subsection (a) in accordance with the provisions of law applicable to
    adjacent areas outside the wilderness study area.
          Sec. 328 <<NOTE: 16 USC 1132 note.>> . Renaming of Wilderness
    Area.
          (a) The Columbia Wilderness, created by the Oregon Wilderness Act
    of 1984, Public Law 98-328, located in the Mt. Hood National Forest,
    Oregon, shall be known and designated as the ``Mark O. Hatfield
    Wilderness''.
          (b) Any references in a law, map, regulation, document, paper, or
    other record of the United States to the Columbia Wilderness shall be
    deemed to be a reference to the ``Mark O. Hatfield Wilderness''.
          Sec. 329. Notwithstanding any other provision of law, for fiscal
    year 1997 the Secretaries of Agriculture and Interior are authorized to
    limit competition for watershed restoration project contracts as part of
    the ``Jobs in the Woods'' component of the President's Forest Plan for
    the Pacific Northwest to individuals and entities in historically
    timber-dependent areas in the States of Washington, Oregon, and northern
    California that have been affected by reduced timber harvesting on
    Federal lands.
          Sec. 330. Section 9 of the Rhode Island Indian Claims Settlement
    Act (25 U.S.C. 1708) is amended--
                (1) by striking ``Sec. 9. Except as''; and inserting the
            following:
          ``(a) In General.--Except as'';
                (2) by striking the section heading and inserting the
            following:

    [[Page 110 STAT. 3009-228]]

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

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

                       TITLE IV--EMERGENCY APPROPRIATIONS

                           DEPARTMENT OF THE INTERIOR

                            Bureau of Land Management

                        management of lands and resources

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

                            wildland fire management

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

                        oregon and california grant lands

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

    [[Page 110 STAT. 3009-229]]

                     United States Fish and Wildlife Service

                               resource management

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

                                  construction

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

                              National Park Service

                      operation of the national park system

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

                                  construction

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

    [[Page 110 STAT. 3009-230]]

    Budget and Emergency Deficit Control Act of 1985, as amended, is
    transmitted by the President to the Congress.

                         United States Geological Survey

                      surveys, investigations, and research

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

                            Bureau of Indian Affairs

                          operation of indian programs

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

                                  construction

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

                            DEPARTMENT OF AGRICULTURE

                                 Forest Service

                             national forest system

          For an additional amount for the National Forest System,
    $3,395,000, to remain available until expended, to repair damage caused
    by hurricanes: Provided, That Congress hereby designates

    [[Page 110 STAT. 3009-231]]

    this amount as an emergency requirement pursuant to section
    251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit Control Act
    of 1985, as amended: Provided further, That this amount shall be
    available only to the extent that an official budget request for a
    specific dollar amount, that includes designation of the entire amount
    as an emergency requirement as defined in the Balanced Budget and
    Emergency Deficit Control Act of 1985, as amended, is transmitted by the
    President to the Congress.

                            wildland fire management

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

                         reconstruction and construction

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

                             OTHER RELATED AGENCIES

                             Smithsonian Institution

                              salaries and expenses

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

    [[Page 110 STAT. 3009-232]]

    Budget and Emergency Deficit Control Act of 1985, as amended, is
    transmitted by the President to the Congress.

                 John F. Kennedy Center for the Performing Arts

                           operations and maintenance

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

                                  construction

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

                             National Gallery of Art

                              salaries and expenses

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

                    United States Holocaust Memorial Council

                           holocaust memorial council

          For an additional amount for the Holocaust Memorial Council,
    $1,000,000, to remain available until expended, to address anti-
    terrorism requirements: Provided, That Congress hereby designates this
    amount as an emergency requirement pursuant to section 251(b)(2)(D)(i)
    of the Balanced Budget and Emergency Deficit Control Act of 1985, as
    amended: Provided further, That this amount

    [[Page 110 STAT. 3009-233]]

    shall be available only to the extent that an official budget request
    for a specific dollar amount, that includes designation of the entire
    amount as an emergency requirement as defined in the Balanced Budget and
    Emergency Deficit Control Act of 1985, as amended, is transmitted by the
    President to the Congress.
          This Act may be cited as the ``Department of the Interior and
    Related Agencies Appropriations Act, 1997''.
          (e) For programs, projects or activities in the Departments of
    Labor, Health and Human Services, and Education, and Related Agencies
    Appropriations Act, 1997, provided as follows, to be effective as if it
    had been enacted into law as the regular appropriations Act:

                                     AN ACT

      Making appropriations for the Departments of Labor, Health and Human
    Services, and Education, and related agencies for the fiscal year ending
                   September 30, 1997, and for other purposes.

           TITLE I-- <<NOTE: Department of Labor Appropriations Act,
    1997.>> DEPARTMENT OF LABOR

                     Employment and Training Administration

                        training and employment services

          For expenses necessary to carry into effect the Job Training
    Partnership Act, as amended, including the purchase and hire of
    passenger motor vehicles, the construction, alteration, and repair of
    buildings and other facilities, and the purchase of real property for
    training centers as authorized by the Job Training Partnership Act; the
    Women in Apprenticeship and Nontraditional Occupations Act; the National
    Skill Standards Act of 1994; and the School-to-Work Opportunities Act;
    $4,719,703,000 plus reimbursements, of which $3,559,408,000 is available
    for obligation for the period July 1, 1997 through June 30, 1998; of
    which $88,685,000 is available for the period July 1, 1997 through June
    30, 2000 for necessary expenses of construction, rehabilitation, and
    acquisition of Job Corps centers; and of which $200,000,000 shall be
    available from July 1, 1997 through September 30, 1998, for carrying out
    activities of the School-to-Work Opportunities Act: Provided, That
    $52,502,000 shall be for carrying out section 401 of the Job Training
    Partnership Act, $69,285,000 shall be for carrying out section 402 of
    such Act, $7,300,000 shall be for carrying out section 441 of such Act,
    $8,000,000 shall be for all activities conducted by and through the
    National Occupational Information Coordinating Committee under such Act,
    $895,000,000 shall be for carrying out title II, part A of such Act, and
    $126,672,000 shall be for carrying out title II, part C of such Act:
    Provided further, That no funds from any other appropriation shall be
    used to provide meal services at or for Job Corps centers: Provided
    further, That funds provided to carry out title III of the Job Training
    Partnership Act shall not be subject to the limitation contained in
    subsection (b) of section 315 of such Act; that the waiver allowing a
    reduction in the cost limitation relating to retraining services
    described in subsection (a)(2) of such section 315 may be granted with
    respect to funds from this Act if a substate grantee demonstrates to the
    Governor that such waiver is appropriate due to the availability of low-
    cost retraining services, is necessary to facilitate the provision of

    [[Page 110 STAT. 3009-234]]

    needs-related payments to accompany long-term training, or is necessary
    to facilitate the provision of appropriate basic readjustment services;
    and that funds provided to carry out the Secretary's discretionary
    grants under part B of such title III may be used to provide needs-
    related payments to participants who, in lieu of meeting the
    requirements relating to enrollment in training under section 314(e) of
    such Act, are enrolled in training by the end of the sixth week after
    grant funds have been awarded: Provided further, That service delivery
    areas may transfer funding provided herein under authority of titles II-
    B and II-C of the Job Training Partnership Act between the programs
    authorized by those titles of that Act, if such transfer is approved by
    the Governor: Provided further, That service delivery areas and substate
    areas may transfer up to 20 percent of the funding provided herein under
    authority of title II-A and title III of the Job Training Partnership
    Act between the programs authorized by those titles of the Act, if such
    transfer is approved by the Governor: Provided further, That,
    notwithstanding any other provision of law, any proceeds from the sale
    of Job Corps center facilities shall be retained by the Secretary of
    Labor to carry out the Job Corps program: Provided further, That
    notwithstanding any
    other provision of law, the Secretary of Labor may waive any of the
    statutory or regulatory requirements of titles I-III of the Job Training
    Partnership Act (except for requirements relating to wage and labor
    standards, worker rights, participation and protection, grievance
    procedures and judicial review, nondiscrimination, allocation of funds
    to local areas, eligibility, review and approval of plans, the
    establishment and functions of service delivery areas and private
    industry councils, and the basic purposes of the Act), and any of the
    statutory or regulatory requirements of sections 8-10 of the Wagner-
    Peyser Act (except for requirements relating to the provision of
    services to unemployment insurance claimants and veterans, and to
    universal access to basic labor exchange services without cost to job
    seekers), only for funds available for expenditure in program year 1997,
    pursuant to a request submitted by a State which identifies the
    statutory or regulatory requirements that are requested to be waived and
    the goals which the State or local service delivery areas intend to
    achieve, describes the actions that the State or local service delivery
    areas have undertaken to remove State or local statutory or regulatory
    barriers, describes the goals of the waiver and the expected
    programmatic outcomes if the request is granted, describes the
    individuals impacted by the waiver, and describes the process used to
    monitor the progress in implementing a waiver, and for which notice and
    an opportunity to comment on such request has been provided to the
    organizations identified in section 105(a)(1) of the Job Training
    Partnership Act, if and only to the extent that the Secretary determines
    that such requirements impede the ability of the State to implement a
    plan to improve the workforce development system and the State has
    executed a Memorandum of Understanding with the Secretary requiring such
    State to meet agreed upon outcomes and implement other appropriate
    measures to ensure accountability: Provided further, That the Secretary
    of Labor shall establish a workforce <<NOTE: 29 USC 1732
    note.>> flexibility (work-flex) partnership demonstration program under
    which the Secretary shall authorize not more than six States, of which
    at least three States shall each have populations not in excess of
    3,500,000, with a preference given to those States that have been

    [[Page 110 STAT. 3009-235]]

    designated Ed-Flex Partnership States under section 311(e) of Public Law
    103-227, to waive any statutory or regulatory requirement applicable to
    service delivery areas or substate areas within the State under titles
    I-III of the Job Training Partnership Act (except for requirements
    relating to wage and labor standards, grievance procedures and judicial
    review, nondiscrimination, allotment of funds, and eligibility), and any
    of the statutory or regulatory requirements of sections 8-10 of the
    Wagner-Peyser Act (except for requirements relating to the provision of
    services to unemployment insurance claimants and veterans, and to
    universal access to basic labor exchange services without cost to job
    seekers), for a duration not to exceed the waiver period authorized
    under section 311(e) of Public Law 103-227, pursuant to a plan submitted
    by such States and approved by the Secretary for the provision of
    workforce employment and training activities in the States, which
    includes a description of the process by which service delivery areas
    and substate areas may apply for and have waivers approved by the State,
    the requirements of the Wagner-Peyser Act to be waived, the outcomes to
    be achieved and other measures to be taken to ensure appropriate
    accountability for federal funds.

                Community Service Employment for Older Americans

                               (transfer of funds)

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

                  federal unemployment benefits and allowances

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

         state unemployment insurance and employment service operations

          For authorized administrative expenses, $173,452,000, together
    with not to exceed $3,146,826,000 (including not to exceed

    [[Page 110 STAT. 3009-236]]

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

             advances to the unemployment trust fund and other funds

          For repayable advances to the Unemployment Trust Fund as
    authorized by sections 905(d) and 1203 of the Social Security Act, as
    amended, and to the Black Lung Disability Trust Fund as authorized by
    section 9501(c)(1) of the Internal Revenue Code of 1954, as amended; and
    for nonrepayable advances to the Unemployment Trust Fund as authorized
    by section 8509 of title 5, United States Code, section 104(d) of Public
    Law 102-164, and section 5 of Public Law 103-6, and to the ``Federal
    unemployment benefits

    [[Page 110 STAT. 3009-237]]

    and allowances'' account, to remain available until September 30, 1998,
    $373,000,000.
          In addition, for making repayable advances to the Black Lung
    Disability Trust Fund in the current fiscal year after September 15,
    1997, for costs incurred by the Black Lung Disability Trust Fund in the
    current fiscal year, such sums as may be necessary.

                             program administration

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

                   Pension and Welfare Benefits Administration

                              salaries and expenses

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

                      Pension Benefit Guaranty Corporation

                    pension benefit guaranty corporation fund

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

                       Employment Standards Administration

                              salaries and expenses

        For necessary expenses for the Employment Standards Administration,
    including reimbursement to State, Federal, and local agencies and their
    employees for inspection services rendered, $290,422,000, together with
    $983,000 which may be expended from the Special Fund in accordance with
    sections 39(c) and 44(j) of the Longshore and Harbor Workers'
    Compensation Act: Provided, That the Secretary of Labor is authorized to
    accept, retain, and spend, until expended, in the name of the Department
    of Labor, all sums of money ordered to be paid to the Secretary of
    Labor, in accordance with the terms of the Consent Judgment in Civil

    [[Page 110 STAT. 3009-238]]

    Action No. 91-0027 of the United States District Court for the District
    of the Northern Mariana Islands (May 21, 1992): Provided further, That
    the Secretary of Labor is authorized to establish and, in accordance
    with 31 U.S.C. 3302, collect and deposit in the Treasury fees for
    processing applications and issuing certificates under sections 11(d)
    and 14 of the Fair Labor Standards Act of 1938, as amended (29 U.S.C.
    211(d) and 214) and for processing applications and issuing
    registrations under Title I of the Migrant and Seasonal Agricultural
    Worker Protection Act, 29 U.S.C. 1801 et seq.

                                special benefits

                          (including transfer of funds)

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

    [[Page 110 STAT. 3009-239]]

                        black lung disability trust fund

                          (including transfer of funds)

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

                  Occupational Safety and Health Administration

                              salaries and expenses

          For necessary expenses for the Occupational Safety and Health
    Administration, $325,734,000, including not to exceed $77,354,000 which
    shall be the maximum amount available for grants to States under section
    23(g) of the Occupational Safety and Health Act, which grants shall be
    no less than fifty percent of the costs of State occupational safety and
    health programs required to be incurred under plans approved by the
    Secretary under section 18 of the Occupational Safety and Health Act of
    1970; and, in addition, notwithstanding 31 U.S.C. 3302, the <<NOTE: 29
    USC 670 note.>> Occupational Safety and Health Administration may retain
    up to $750,000 per fiscal year of training institute course tuition
    fees, otherwise authorized by law to be collected, and may utilize such
    sums for occupational safety and health training and education grants:
    Provided, That, notwithstanding 31 U.S.C. 3302, the Secretary of Labor
    is authorized, during the fiscal year ending September 30, 1997, to
    collect and retain fees for services provided to Nationally Recognized
    Testing Laboratories, and may utilize such sums, in accordance with the
    provisions of 29 U.S.C. 9a, to administer national and international
    laboratory recognition programs that ensure the safety of equipment and
    products used by workers in the workplace: Provided further, That none
    of the funds appropriated under this paragraph shall be obligated or
    expended to prescribe, issue, administer, or enforce any standard, rule,
    regulation, or order under the Occupational Safety and Health Act of
    1970 which is applicable to any person who is engaged in a farming
    operation which does not maintain a temporary labor camp and employs ten
    or fewer employees: Provided further, That no funds appropriated under

    [[Page 110 STAT. 3009-240]]

    this paragraph shall be obligated or expended to administer or enforce
    any standard, rule, regulation, or
    order under the Occupational Safety and Health Act of 1970 with respect
    to any employer of ten or fewer employees who is included within a
    category having an occupational injury lost workday case rate, at the
    most precise Standard Industrial Classification Code for which such data
    are published, less than the national average rate as such rates are
    most recently published by the Secretary, acting through the Bureau of
    Labor Statistics, in accordance with section 24 of that Act (29 U.S.C.
    673), except--
                (1) to provide, as authorized by such Act, consultation,
            technical assistance, educational and training services, and to
            conduct surveys and studies;
                (2) to conduct an inspection or investigation in response to
            an employee complaint, to issue a citation for violations found
            during such inspection, and to assess a penalty for violations
            which are not corrected within a reasonable abatement period and
            for any willful violations found;
                (3) to take any action authorized by such Act with respect
            to imminent dangers;
                (4) to take any action authorized by such Act with respect
            to health hazards;
                (5) to take any action authorized by such Act with respect
            to a report of an employment accident which is fatal to one or
            more employees or which results in hospitalization of two or
            more employees, and to take any action pursuant to such
            investigation authorized by such Act; and
                (6) to take any action authorized by such Act with respect
            to complaints of discrimination against employees for exercising
            rights under such Act: Provided further, That the foregoing
            proviso shall not apply to any person who is engaged in a
            farming operation which does not maintain a temporary labor camp
            and employs ten or fewer employees.

                      Mine Safety and Health Administration

                              salaries and expenses

          For necessary expenses for the Mine Safety and Health
    Administration, $197,810,000, including purchase and bestowal of
    certificates and trophies in connection with mine rescue and first-aid
    work, and the hire <<NOTE: 30 USC 962.>>  of passenger motor vehicles;
    the Secretary is authorized to accept lands, buildings, equipment, and
    other contributions from public and private sources and to prosecute
    projects in cooperation with other agencies, Federal, State, or private;
    the Mine Safety and Health Administration is authorized to promote
    health and safety education and training in the mining community through
    cooperative programs with States, industry, and safety associations; and
    any funds available to the Department may be used, with the approval of
    the Secretary, to provide for the costs of mine rescue and survival
    operations in the event of a major disaster: Provided, That none of the
    funds appropriated under this paragraph shall be obligated or expended
    to carry out section 115 of the Federal Mine Safety and Health Act of
    1977 or to carry out that portion of section 104(g)(1) of such Act
    relating to the enforcement of any training requirements, with respect
    to shell dredging, or with respect to any sand, gravel, surface stone,
    surface clay, colloidal phosphate, or surface limestone mine.

    [[Page 110 STAT. 3009-241]]

                           Bureau of Labor Statistics

                              salaries and expenses

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

                             Departmental Management

                              salaries and expenses

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

            assistant secretary for veterans employment and training

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

                           office of inspector general

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

    [[Page 110 STAT. 3009-242]]

                               general provisions

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

                               (transfer of funds)

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

     TITLE II--DEPARTMENT OF HEALTH <<NOTE: Department of Health and Human
    Services Appropriations Act, 1997.>>  AND HUMAN SERVICES

                  Health Resources and Services Administration

                          health resources and services

          For carrying out titles II, III, VII, VIII, X, XII, XVI, XIX, and
    XXVI of the Public Health Service Act, section 427(a) of the Federal
    Coal Mine Health and Safety Act, title V of the Social Security Act, the
    Health Care Quality Improvement Act of 1986, as amended, and the Native
    Hawaiian Health Care Act of 1988, as amended, $3,405,019,000, of which
    $297,000 shall remain available until expended for interest subsidies on
    loan guarantees made prior to fiscal year 1981 under part B of title VII
    of the Public Health Service Act: Provided, That the Division of Federal
    Occupational Health may utilize personal services contracting to employ
    professional management/administrative and occupational health
    professionals: Provided further, That of the funds made available under
    this heading, $828,000 shall be available until expended for facilities
    renovations at the Gillis W. Long Hansen's Disease

    [[Page 110 STAT. 3009-243]]

    Center: Provided further, That in addition to fees authorized by section
    427(b) of the Health Care Quality Improvement Act of 1986, fees shall be
    collected for the full disclosure of information under the Act
    sufficient to recover the full costs of operating the National
    Practitioner Data Bank, and shall remain available until expended to
    carry out that Act: Provided further, That no more than $5,000,000 is
    available for carrying out the provisions of Public Law 104-73: Provided
    further, That of the funds made available under this heading,
    $198,452,000 shall be for the program under title X of the Public Health
    Service Act to provide for voluntary family planning projects: Provided
    further, That amounts provided to said projects under such title shall
    not be expended for abortions, that all pregnancy counseling shall be
    nondirective, and that such amounts shall not be expended for any
    activity (including the publication or distribution of literature) that
    in any way tends to promote public support or opposition to any
    legislative proposal or candidate for public office: Provided further,
    That $167,000,000 shall be for State AIDS Drug Assistance Programs
    authorized by section 2616 of the Public Health Service Act and shall be
    distributed to States as authorized by section 2618(b)(2) of such Act:
    Provided further, That notwithstanding any other provision of law, funds
    made available under this heading may be used to continue operating the
    Council on Graduate Medical Education established by section 301 of
    Public Law 102-408: Provided further, That, of the funds made available
    under this
    heading, not more than $8,000,000 shall be made available and shall
    remain available until expended for loan guarantees for loans made by
    non-Federal lenders for the construction, renovation, and modernization
    of medical facilities that are owned and operated by health centers
    funded under part A of title XVI of the Public Health Service Act as
    amended, and, subject to authorization, for loans made to health centers
    for the costs of developing and operating managed care networks or
    plans, and that such funds be available to subsidize guarantees of total
    loan principal in an amount not to exceed $80,000,000: Provided further,
    That notwithstanding section 502(a)(1) of the Social Security Act, not
    to exceed $103,609,000 is available for carrying out special projects of
    regional and national significance pursuant to section 501(a)(2) of such
    Act.

                   medical facilities guarantee and loan fund

                federal interest subsidies for medical facilities

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

                    health education assistance loans program

          For the cost of guaranteed loans, such sums as may be necessary to
    carry out the purpose of the program, as authorized by title VII of the
    Public Health Service Act, as amended: Provided, That such costs,
    including the cost of modifying such loans, shall be as defined in
    section 502 of the Congressional Budget Act of

    [[Page 110 STAT. 3009-244]]

    1974: Provided further, That these funds are available to subsidize
    gross obligations for the total loan principal any part of which is to
    be guaranteed at not to exceed $140,000,000. In addition, for
    administrative expenses to carry out the guaranteed loan program,
    $2,688,000.

                 vaccine injury compensation program trust fund

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

                           vaccine injury compensation

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

                   Centers for Disease Control and Prevention

                     disease control, research, and training

          To carry out titles II, III, VII, XI, XV, XVII, and XIX of the
    Public Health Service Act, sections 101, 102, 103, 201, 202, 203, 301,
    and 501 of the Federal Mine Safety and Health Act of 1977, and sections
    20, 21 and 22 of the Occupational Safety and Health Act of 1970, title
    IV of the Immigration and Nationality Act and section 501 of the Refugee
    Education Assistance Act of 1980; including insurance of official motor
    vehicles in foreign countries; and hire, maintenance, and operation of
    aircraft, $2,262,698,000, of which $30,553,000 shall remain available
    until expended for equipment and construction and renovation of
    facilities, and of which $32,000,000 shall remain
    available until September 30, 1998 for mine safety and health
    activities, and in addition, such sums as may be derived from authorized
    user fees, which shall be credited to this account: Provided, That in
    addition to amounts provided herein, up to $48,400,000 shall be
    available from amounts available under section 241 of the Public Health
    Service Act, to carry out the National Center for Health Statistics
    surveys: Provided further, That none of the funds made available for
    injury prevention and control at the Centers for Disease Control and
    Prevention may be used to advocate or promote gun control: Provided
    further, That the Director may redirect the total amount made available
    under authority of Public Law 101-502, section 3, dated November 3,
    1990, to activities the Director may so designate: Provided further,
    That the Congress is to be notified promptly of any such transfer:
    Provided further, That the functions described in clause <<NOTE: 30 USC
    1 note.>> (1) of the first proviso under the subheading ``mines and
    minerals'' under the heading ``Bureau of Mines'' in the text of title I
    of the Department of the Interior and Related Agencies Appropriations
    Act, 1996, as enacted by section 101 (c) of the Omnibus Consolidated
    Rescissions and Appropriations Act of 1996 (Public Law 104-134), are
    hereby transferred to, and vested in, the Secretary of Health

    [[Page 110 STAT. 3009-245]]

    and Human Services, subject to section 1531 of title 31, United States
    Code: Provided further, That of the amount provided, $23,000,000 is
    designated by Congress as an emergency requirement pursuant to section
    251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit Control Act
    of 1985, as amended.
          In addition, $41,000,000, to be derived from the Violent Crime
    Reduction Trust Fund, for carrying out sections 40151 and 40261 of
    Public Law 103-322.

                          National Institutes of Health

                            national cancer institute

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

                    national heart, lung, and blood institute

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

                      national institute of dental research

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

        national institute of diabetes and digestive and kidney diseases

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

             national institute of neurological disorders and stroke

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

              national institute of allergy and infectious diseases

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

                 national institute of general medical sciences

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

            national institute of child health and human development

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

    [[Page 110 STAT. 3009-246]]

                             national eye institute

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

               national institute of environmental health sciences

          For carrying out sections 301 and 311 and title IV of the Public
    Health Service Act with respect to environmental health sciences,
    $308,819,000.

                           national institute on aging

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

      national institute of arthritis and musculoskeletal and skin diseases

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

        national institute on deafness and other communication disorders

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

                     national institute of nursing research

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

               national institute on alcohol abuse and alcoholism

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

                        national institute on drug abuse

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

                       national institute of mental health

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

                     national center for research resources

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

    [[Page 110 STAT. 3009-247]]

                    national center for human genome research

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

                      john e. fogarty international center

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

                          national library of medicine

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

                             office of the director

                          (including transfer of funds)

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

                            buildings and facilities

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

    [[Page 110 STAT. 3009-248]]

            Substance Abuse and Mental Health Services Administration

                   substance abuse and mental health services

          For carrying out titles V and XIX of the Public Health Service Act
    with respect to substance abuse and mental health services, the
    Protection and Advocacy for Mentally Ill Individuals Act of 1986,
    section 30401 of Public Law 103-322 and section 301 of the Public Health
    Service Act with respect to program management, $2,134,743,000, of which
    $5,000,000 shall be for grants to rural and Native American projects and
    $12,800,000 shall be for activities authorized by section 30401 of
    Public Law 103-322.

          retirement pay and medical benefits for commissioned officers

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

                   Agency for Health Care Policy and Research

                         health care policy and research

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

                      Health Care Financing Administration

                          grants to states for medicaid

          For carrying out, except as otherwise provided, titles XI and XIX
    of the Social Security Act, $75,056,618,000, to remain available until
    expended.
          For making, after May 31, 1997, payments to States under title XIX
    of the Social Security Act for the last quarter of fiscal year 1997 for
    unanticipated costs, incurred for the current fiscal year, such sums as
    may be necessary.
          For making payments to States under title XIX of the Social
    Security Act for the first quarter of fiscal year 1998, $27,988,993,000,
    to remain available until expended.
          Payment under title XIX may be made for any quarter with respect
    to a State plan or plan amendment in effect during such quarter, if
    submitted in or prior to such quarter and approved in that or any
    subsequent quarter.

    [[Page 110 STAT. 3009-249]]

                       payments to health care trust funds

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

                               program management

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

          health maintenance organization loan and loan guarantee fund

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

                    Administration for Children and Families

                        family support payments to states

          For making payments of such sums as necessary to each State for
    carrying out the program of Aid to Families with Dependent Children
    under title IV-A of the Social Security Act in fiscal year 1997 before
    the effective date of the program of Temporary Assistance to Needy
    Families (TANF) with respect to such State: Provided, That the sum of
    the amounts available to a State with respect to expenditures under such
    title IV-A in fiscal year 1997 under this appropriation and under such
    title IV-A as amended by the Personal Responsibility and Work
    Opportunity Reconciliation Act of 1996 shall not exceed the limitations
    under section 116(b) of such Act.
          For making payments to States for carrying out title IV-A (other
    than section 402(g)(6)) of the Social Security Act in calendar quarters
    prior to October 1, 1996, such sums as may be necessary.
          For making payments to States or other non-Federal entities under
    titles I, IV-D, X, XI, XIV, and XVI of the Social Security

    [[Page 110 STAT. 3009-250]]

    Act and the Act of July 5, 1960 (24 U.S.C. ch. 9), $2,158,000,000 to
    remain available until expended.
          For making, after May 31 of the current fiscal year, payments to
    States or other non-Federal entities under titles I, IV-D, X, XI, XIV,
    and XVI of the Social Security Act, for the last three months of the
    current year for unanticipated costs, incurred for the current fiscal
    year, such sums as may be necessary.
          For making payments to States or other non-Federal entities under
    titles I, IV-D, X, XI, XIV, and XVI of the Social Security Act and the
    Act of July 5, 1960 (24 U.S.C. ch. 9) for the first quarter of fiscal
    year 1998, $607,000,000, to remain available until expended.

                       job opportunities and basic skills

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

                        low income home energy assistance

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

                         refugee and entrant assistance

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

                     child care and development block grant

                          (including transfer of funds)

          For carrying out sections 658A through 658R of the Omnibus Budget
    Reconciliation Act of 1981 (The Child Care and Development Block Grant
    Act of 1990), $956,120,000, of which $937,000,000 shall become available
    on October 1, 1997 and shall remain available through September 30,
    1998: Provided, That $19,120,000 shall become available for obligation
    on October 1, 1996 for child care resource and referral and school-aged
    child care activities, of which
    $6,120,000 shall be derived from an amount that shall be transferred
    from the amount appropriated under section 452(j) of the Social Security
    Act (42 U.S.C. 652(j)) for fiscal year 1996 and remaining available for
    expenditure.

                           social services block grant

          For making grants to States pursuant to section 2002 of the Social
    Security Act, $2,500,000,000: Provided, That notwithstanding section
    2003(c) of such Act, as amended, the amount specified

    [[Page 110 STAT. 3009-251]]

    for allocation under such section for fiscal year 1997 shall be
    $2,500,000,000.

                     children and families services programs

                             (including rescissions)

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

                         family preservation and support

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

           payments to states for foster care and adoption assistance

          For making payments to States or other non-Federal entities, under
    title IV-E of the Social Security Act, $4,445,031,000.

    [[Page 110 STAT. 3009-252]]

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

                             Administration on Aging

                             aging services programs

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

                             Office of the Secretary

                         general departmental management

          For necessary expenses, not otherwise provided, for general
    departmental management, including hire of six sedans, and for carrying
    out titles III, XVII, and XX of the Public Health Service Act,
    $174,523,000, together with $5,851,000, to be transferred and expended
    as authorized by section 201(g)(1) of the Social Security Act from the
    Hospital Insurance Trust Fund and the Supplemental Medical Insurance
    Trust Fund: Provided, That of the funds made available under this
    heading for carrying out title XVII of the Public Health Service Act,
    $11,500,000 shall be available until expended for extramural
    construction: Provided further, That notwithstanding section 2010 (b)
    and (c) under title XX of the Public Health Service Act, as amended, of
    the funds made available under this heading, $10,879,000 shall be for
    activities specified under section 2003(b)(2) of title XX of the Public
    Health Service Act, as amended, and of which $9,011,000 shall be for
    prevention grants under section 510(b)(2) of title V of the Social
    Security Act, as amended: Provided further, That of the amount provided,
    $5,775,000 is designated by Congress as an emergency requirement
    pursuant to section 251(b)(2)(D)(i) of the Balanced Budget and Emergency
    Deficit Control Act of 1985, as amended.

                           office of inspector general

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

    [[Page 110 STAT. 3009-253]]

                             office for civil rights

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

                                 policy research

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

                               general provisions

          Sec. 201. Funds appropriated in this title shall be available for
    not to exceed $37,000 for official reception and representation expenses
    when specifically approved by the Secretary.
          Sec. 202. The Secretary shall make available through assignment
    not more than 60 employees of the Public Health Service to assist in
    child survival activities and to work in AIDS programs through and with
    funds provided by the Agency for International Development, the United
    Nations International Children's Emergency Fund or the World Health
    Organization.
          Sec. 203. None of the funds appropriated under this Act may be
    used to implement section 399L(b) of the Public Health Service Act or
    section 1503 of the National Institutes of Health Revitalization Act of
    1993, Public Law 103-43.
          Sec. 204. None of the funds made available by this Act may be used
    to withhold payment to any State under the Child Abuse Prevention and
    Treatment Act by reason of a determination that the State is not in
    compliance with section 1340.2(d)(2)(ii) of title 45 of the Code of
    Federal Regulations. This provision expires upon the date of enactment
    of the reauthorization of the Child Abuse Prevention and Treatment Act.
          Sec. 205. None of the funds appropriated in this Act for the
    National Institutes of Health and the Substance Abuse and Mental Health
    Services Administration shall be used to pay the salary of an
    individual, through a grant or other extramural mechanism, at a rate in
    excess of $125,000 per year.
          Sec. 206. None of the funds appropriated in this Act may be
    expended pursuant to section 241 of the Public Health Service Act,
    except for funds specifically provided for in this Act, or for other
    taps and assessments made by any office located in the Department of
    Health and Human Services, prior to the Secretary's preparation and
    submission of a report to the Committee on Appropriations of the Senate
    and of the House detailing the planned uses of such funds.

                               (transfer of funds)

          Sec. 207. Of the funds appropriated or otherwise made available
    for the Department of Health and Human Services, General Departmental
    Management, for fiscal year 1997, the Secretary of Health and Human
    Services shall transfer to the Office of the Inspector General such sums
    as may be necessary for any expenses

    [[Page 110 STAT. 3009-254]]

    with respect to the provision of security protection for the Secretary
    of Health and Human Services.
          Sec. 208. None of the funds appropriated in this Act may be
    obligated or expended for the Federal Council on Aging under the Older
    Americans Act or the Advisory Board on Child Abuse and Neglect under the
    Child Abuse Prevention and Treatment Act.

                               (transfer of funds)

          Sec. 209. Not to exceed 1 percent of any discretionary funds
    (pursuant to the Balanced Budget and Emergency Deficit Control Act, as
    amended) which are appropriated for the current fiscal year for the
    Department of Health and Human Services in this Act may be transferred
    between appropriations, but no such appropriation shall be increased by
    more than 3 percent by any such transfer: Provided, That the
    Appropriations Committees of both Houses of Congress are notified at
    least fifteen days in advance of any transfer.

                               (transfer of funds)

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

                               (transfer of funds)

          Sec. 211. Of the amounts made available in this Act for the
    National Institutes of Health, the amount for research related to the
    human immunodeficiency virus, as jointly determined by the Director of
    NIH and the Director of the Office of AIDS Research, shall be made
    available to the ``Office of AIDS Research'' account. The Director of
    the Office of AIDS Research shall transfer from such account amounts
    necessary to carry out section 2353(d)(3) of the Public Health Service
    Act.
          Sec. 212. Not later than January 1, 1997, the Administrator of the
    Health Care Financing Administration, with the advice and technical
    assistance of the Agency for Health Care Policy and Research, shall
    transmit to the appropriate committees of the Congress a report
    including--
          (1) a review of all available studies and research data on the
    treatment of end-stage emphysema and chronic obstructive pulmonary
    disease by both unilateral and bilateral lung volume reduction surgery,
    involving both invasive and noninvasive surgery and supplemental
    surgical methods, including laser applications; and
          (2) a recommendation, based on such review, as to the
    appropriateness of Medicare coverage of such procedures and the
    conditions, if necessary, that facilities and physicians should be
    required to meet, to ensure the efficacy of such procedures, as more
    detailed clinical studies are conducted.
          Sec. 213. Section 304(a)(1) of the Family Violence Prevention and
    Services Act (42 U.S.C. 10403(a)(1)) is amended by striking ``$200,000''
    and inserting ``$400,000''.

    [[Page 110 STAT. 3009-255]]

          Sec. 214. The new clinical research center at the National
    Institutes of Health is hereby named the Mark O. Hatfield Clinical
    Research Center.
          Sec. 215. Section 345 of Public Law 104-193 <<NOTE: 42 USC 652,
    653.>> is amended by replacing ``section 457(a)'' wherever it appears
    with ``a plan approved under this part''. Amounts available under
    such <<NOTE: 42 USC 652 note.>> section shall be calculated as though
    such section were effective October 1, 1995.
          This title may be cited as the ``Department of Health and Human
    Services Appropriations Act, 1997''.

        TITLE III-- <<NOTE: Department of Education Appropriations Act,
    1997.>> DEPARTMENT OF EDUCATION

                                education reform

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

                         education for the disadvantaged

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

                                   impact aid

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

                           school improvement programs

          For carrying out school improvement activities authorized by
    titles II, IV-A-1, V-A and B, VI, IX, X and XIII of the Elementary and
    Secondary Education Act of 1965; the Stewart B. McKinney Homeless
    Assistance Act; and the Civil Rights Act of 1964;

    [[Page 110 STAT. 3009-256]]

    $1,425,631,000, of which $1,202,478,000 shall become available on July
    1, 1997, and remain available through September 30, 1998: Provided, That
    of the amount appropriated, $310,000,000 shall be for Eisenhower
    professional development State grants under title II-B and $310,000,000
    shall be for innovative education program strategies State grants under
    title VI-A.

                        bilingual and immigrant education

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

                                special education

          For carrying out parts B, C, D, E, F, G, and H and section
    610(j)(2)(C) of the Individuals with Disabilities Education Act,
    $4,036,000,000, of which $3,783,685,000 shall become available for
    obligation on July 1, 1997, and shall remain available through September
    30, 1998: Provided, That the Republic of the Marshall Islands, the
    Federated States of Micronesia, and the Republic of Palau shall continue
    to be eligible to receive funds under the Individuals with Disabilities
    Education Act consistent with the provisions of Public Law 104-134:
    Provided further, That the entities that received competitive awards for
    direct services to children under section 611 of the Individuals with
    Disabilities Education Act in accordance with the competition required
    in Public Law 104-134 shall continue to be funded, without competition,
    in the same amounts as under Public Law 104-134.

                 rehabilitation services and disability research

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

               Special Institutions for Persons With Disabilities

                      american printing house for the blind

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

                    national technical institute for the deaf

          For the National Technical Institute for the Deaf under titles I
    and II of the Education of the Deaf Act of 1986 (20 U.S.C.

    [[Page 110 STAT. 3009-257]]

    4301 et seq.), $43,041,000: Provided, That from the amount available,
    the Institute may at its discretion use funds for the endowment program
    as authorized under section 207.

                              gallaudet university

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

                         vocational and adult education

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

                          student financial assistance

          For carrying out subparts 1, 3, and 4 of part A, part C and part E
    of title IV of the Higher Education Act of 1965, as amended,
    $7,560,407,000, which shall remain available through September 30, 1998.
          The maximum Pell <<NOTE: 20 USC 1070a note.>>  Grant for which a
    student shall be eligible during award year 1997-1998 shall be $2,700:
    Provided, That notwithstanding section 401(g) of the Act, if the
    Secretary determines, prior to publication of the payment schedule for
    such award year, that the amount included within this appropriation for
    Pell Grant awards in such award year, and any funds available from the
    fiscal year 1996 appropriation for Pell Grant awards, are insufficient
    to satisfy fully all such awards for which students are eligible, as
    calculated under section 401(b) of the Act, the amount paid for each
    such award shall be reduced by either a fixed or variable percentage, or
    by a fixed dollar amount, as determined in accordance with a schedule of
    reductions established by the Secretary for this purpose.

    [[Page 110 STAT. 3009-258]]

                  federal family education loan program account

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

                                higher education

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

                                howard university

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

                        higher education facilities loans

          The Secretary is hereby authorized to make such expenditures,
    within the limits of funds available under this heading and in accord
    with law, and to make such contracts and commitments

    [[Page 110 STAT. 3009-259]]

    without regard to fiscal year limitation, as provided by section 104 of
    the Government Corporation Control Act (31 U.S.C. 9104), as may be
    necessary in carrying out the program for the current fiscal year.

              college housing and academic facilities loans program

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

                              college housing loans

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

      historically black college and university capital financing, program
                                     account

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

                 education research, statistics, and improvement

          For carrying out activities authorized by the Educational
    Research, Development, Dissemination, and Improvement Act of 1994,
    including part E; the National Education Statistics Act of 1994; section
    2102, sections 3132, 3136 and 3141, parts B, C, and D of title III and
    parts A, B, I, and K and section 10601 of title X, and part C of title
    XIII of the Elementary and Secondary Education Act of 1965, as amended,
    and title VI of Public Law 103-227, $598,350,000: Provided, That
    $200,000,000 shall be for section 3132, $56,965,000 shall be for section
    3136 and
    $10,000,000 shall be for section 3141 of the Elementary and Secondary
    Education Act: Provided further, That notwithstanding any other
    provision of law, one-half of one percent of the amount available for
    section 3132 of the Elementary and Secondary Education Act of 1965, as
    amended, shall be set aside for the outlying areas to be distributed
    among the outlying areas on the basis of their relative need as
    determined by the Secretary in accordance with the purposes of the
    program: Provided further, That, notwithstanding section 3131(b) of said
    Act, if any State educational agency does not apply for a grant under
    section 3132, that State's allotment under section 3131 shall be
    reserved by the Secretary for grants to local educational agencies in
    the State that apply directly to

    [[Page 110 STAT. 3009-260]]

    the Secretary according to the terms and conditions announced by the
    Secretary in the Federal Register: Provided further, That, of the amount
    available for title III, part B of the Elementary and Secondary
    Education Act of 1965, as amended, funds shall be awarded to continue
    the Iowa Communication Network statewide fiber optic demonstration and
    $2,000,000 shall be awarded to the Southeastern Pennsylvania Consortium
    for Higher Education for the establishment of local and wide area
    computer networks to provide instructional resources to students and
    faculty: Provided further, That none of the funds appropriated in this
    paragraph may be obligated or expended for the Goals 2000 Community
    Partnerships Program.

                                    libraries

          Notwithstanding title VII of this Act, for carrying out titles I,
    II, III, and IV of the Library Services and Construction Act, and title
    II-B of the Higher Education Act, $136,369,000, of which $16,369,000
    shall be used to carry out the provisions of title II of the Library
    Services and Construction Act and shall remain available until expended;
    and $2,500,000 shall be for section 222 and $5,000,000 shall be for
    section 223 of the Higher Education Act: Provided, That $1,000,000 shall
    be competitively awarded to a nonprofit regional social tolerance
    resource center, operating tolerance tools and prejudice reduction
    programs and multimedia tolerance and genocide exhibits: Provided
    further, That $1,500,000 shall be for the continuation of a
    demonstration project making information available for public use by
    connecting Internet to a multistate consortium and a historical society:
    Provided further, That $1,000,000 shall be for continuation of catalog
    conversion of research and doctoral institutions and networking of local
    libraries under the fiber optics demonstration initiated in Public Law
    102-394 under section 223 of the Higher Education Act: Provided further,
    That each State or local recipient of funds under titles I, II, III, and
    IV of the Library Services and Construction Act may use any such funds
    to plan for any library program or activity authorized under title VII
    of this Act and conduct any other activity reasonably necessary to
    provide for an orderly and effective transition to the operation of
    library programs or activities under title VII of this Act.

                             Departmental Management

                             program administration

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

                             office for civil rights

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

    [[Page 110 STAT. 3009-261]]

                         office of the inspector general

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

                               GENERAL PROVISIONS

          Sec. 301. No funds appropriated in this Act may be used for the
    transportation of students or teachers (or for the purchase of equipment
    for such transportation) in order to overcome racial imbalance in any
    school or school system, or for the transportation of students or
    teachers (or for the purchase of equipment for such transportation) in
    order to carry out a plan of racial desegregation of any school or
    school system.
          Sec. 302. None of the funds contained in this Act shall be used to
    require, directly or indirectly, the transportation of any student to a
    school other than the school which is nearest the student's home, except
    for a student requiring special education, to the school offering such
    special education, in order to comply with title VI of the Civil Rights
    Act of 1964. For the purpose of this section an indirect requirement of
    transportation of students includes the transportation of students to
    carry out a plan involving the reorganization of the grade structure of
    schools, the pairing of schools, or the clustering of schools, or any
    combination of grade restructuring, pairing or clustering. The
    prohibition described in this section does not include the establishment
    of magnet schools.
          Sec. 303. No funds appropriated under this Act may be used to
    prevent the implementation of programs of voluntary prayer and
    meditation in the public schools.
          Sec. 304. Notwithstanding any other provision of law, funds
    available under section 458 of the Higher Education Act shall not exceed
    $491,000,000 for fiscal year 1997. The Department of Education shall use
    $80,000,000 of the amounts provided for payment of administrative cost
    allowances to guaranty agencies for fiscal year 1996. For fiscal year
    1997, the Department of Education shall pay administrative costs to
    guaranty agencies, calculated on the basis of 0.85 percent of the total
    principal amount of loans upon which insurance was issued on or after
    October 1, 1996: Provided, That such administrative costs shall be paid
    only on the first $8,200,000,000 of the principal amount of loans upon
    which insurance was issued on or after October 1, 1996 by such guaranty
    agencies, and shall not exceed a total of $70,000,000. Such payments are
    to be paid quarterly, and receipt of such funds and uses of such funds
    shall be in accordance with section 428(f) of the Higher Education Act.
          Notwithstanding <<NOTE: 20 USC 1087h note.>> section 458 of the
    Higher Education Act, the Secretary may not use funds available under
    that section or any other section for subsequent fiscal years for
    administrative expenses of the William D. Ford Direct Loan Program. The
    Secretary may not require the return of guaranty agency reserve funds
    during fiscal year 1997, except after consultation with both the
    Chairmen and ranking members of the House Economic and Educational
    Opportunities Committee and the Senate Labor and Human Resources
    Committee. Any reserve funds recovered by the Secretary shall be
    returned to the Treasury of the United States for purposes of reducing
    the Federal deficit.

    [[Page 110 STAT. 3009-262]]

          No funds available to the Secretary may be used for (1) the hiring
    of advertising agencies or other third parties to provide advertising
    services for student loan programs prior to January 1, 1997, or (2)
    payment of administrative fees relating to the William D. Ford Direct
    Loan Program to institutions of higher education.
          Sec. 305. None of the funds appropriated in this Act may be
    obligated or expended to carry out
    section 621(b) of Public Law 101-589.

                               (transfer of funds)

          Sec. 306. Not to exceed 1 percent of any discretionary funds
    (pursuant to the Balanced Budget and Emergency Deficit Control Act, as
    amended) which are appropriated for the current fiscal year for the
    Department of Education in this Act may be transferred between
    appropriations, but no such appropriation shall be increased by more
    than 3 percent by any such transfer: Provided, That the Appropriations
    Committees of both Houses of Congress are notified at least fifteen days
    in advance of any transfer.
          Sec. 307. (a) Section 8003(f)(3)(A)(i) of the Elementary and
    Secondary Education Act of 1965 (20 U.S.C. 7703(f)(3)(A)(i)) is
    amended--
                (1) in the matter preceding subclause (I), by striking ``The
            Secretary'' and all that follows through ``greater of--'' and
            inserting the following: ``The Secretary, in conjunction with
            the local educational agency, shall first determine each of the
            following:'';
                (2) in each of subclauses (I) through (III), by striking
            ``the average'' each place it appears the first time in each
            such subclause and inserting ``The average'';
                (3) in subclause (I), by striking the semicolon and
            inserting a period;
                (4) in subclause (II), by striking ``: or'' and inserting a
            period; and
                (5) by adding at the end the following:
          ``The local educational agency shall select one of the amounts
    determined under subclause (I), (II), or (III) for purposes of the
    remaining computations under this subparagraph.''.
          (b) The amendments made by subsection <<NOTE: 20 USC 7703 note.>>
    (a) shall apply with respect to fiscal years beginning with fiscal year
    1995.
          Sec. 308. Section 485(e)(9) of the Higher Education Act of 1965 is
    amended <<NOTE: 20 USC 1092.>> by striking out ``June 30'' in the second
    sentence of such section and inserting ``August 30''.
          This title may be cited as the ``Department of Education
    Appropriations Act, 1997''.

                           TITLE IV--RELATED AGENCIES

                          Armed Forces Retirement Home

          For expenses necessary for the Armed Forces Retirement Home to
    operate and maintain the United States Soldiers' and Airmen's Home and
    the United States Naval Home, to be paid from funds available in the
    Armed Forces Retirement Home Trust Fund, $56,204,000, of which $432,000
    shall remain available until expended for construction and renovation of
    the physical plants at the United States Soldiers' and Airmen's Home and
    the United States Naval Home: Provided, That this appropriation shall
    not

    [[Page 110 STAT. 3009-263]]

    be available for the payment of hospitalization of members of the
    Soldiers' and Airmen's Home in United States Army hospitals at rates in
    excess of those prescribed by the Secretary of the Army upon
    recommendation of the Board of Commissioners and the Surgeon General of
    the Army.

                 Corporation for National and Community Service

             domestic volunteer service programs, operating expenses

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

                       Corporation for Public Broadcasting

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

                   Federal Mediation and Conciliation Service

                              salaries and expenses

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

    [[Page 110 STAT. 3009-264]]

                Federal Mine Safety and Health Review Commission

                              salaries and expenses

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

            National Commission on Libraries and Information Science

                              salaries and expenses

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

                         National Council on Disability

                              salaries and expenses

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

                         National Education Goals Panel

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

                         National Labor Relations Board

                              salaries and expenses

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

    [[Page 110 STAT. 3009-265]]

                            National Mediation Board

                              salaries and expenses

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

                Occupational Safety and Health Review Commission

                              salaries and expenses

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

                       Physician Payment Review Commission

                              salaries and expenses

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

                    Prospective Payment Assessment Commission

                              salaries and expenses

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

                         Social Security Administration

                     payments to social security trust funds

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

                    special benefits for disabled coal miners

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

    [[Page 110 STAT. 3009-266]]

                      supplemental security income program

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

                      limitation on administrative expenses

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

    [[Page 110 STAT. 3009-267]]

    by Public Law 104-193. The term ``continuing disability reviews'' means
    reviews and redetermination as defined under section 201(g)(1)(A) of the
    Social Security Act as amended, and reviews and redeterminations
    authorized under section 211 of Public Law 104-193.
          In addition to funding already available under this heading, and
    subject to the same terms and conditions, $234,895,000, which shall
    remain available until expended, to invest in a state-of-the-art
    computing network, including related equipment and administrative
    expenses associated solely with this network, for the Social Security
    Administration and the State Disability Determination Services, may be
    expended from any or all of the trust funds as authorized by section
    201(g)(1) of the Social Security Act.

                           office of inspector general

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

                            Railroad Retirement Board

                         dual benefits payments account

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

              federal payments to the railroad retirement accounts

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

                          limitation on administration

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

    [[Page 110 STAT. 3009-268]]

                  limitation on the office of inspector general

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

                        United States Institute of Peace

                               operating expenses

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

                           TITLE V--GENERAL PROVISIONS

          Sec. 501. The Secretaries of Labor, Health and Human Services, and
    Education are authorized to transfer unexpended balances of prior
    appropriations to accounts corresponding to current appropriations
    provided in this Act: Provided, That such transferred balances are used
    for the same purpose, and for the same periods of time, for which they
    were originally appropriated.
          Sec. 502. No part of any appropriation contained in this Act shall
    remain available for obligation beyond the current fiscal year unless
    expressly so provided herein.
          Sec. 503. (a) No part of any appropriation contained in this Act
    shall be used, other than for normal and recognized executive-
    legislative relationships, for publicity or propaganda purposes, for the
    preparation, distribution, or use of any kit, pamphlet, booklet,
    publication, radio, television, or video presentation designed to
    support or defeat legislation pending before the Congress, except in
    presentation to the Congress itself or any State legislature, except in
    presentation to the Congress or any State legislative body itself.
          (b) No part of any appropriation contained in this Act shall be
    used to pay the salary or expenses of any grant or contract recipient,
    or agent acting for such recipient, related to any activity designed to
    influence legislation or appropriations pending before the Congress or
    any State legislature.
          Sec. 504. The Secretaries of Labor and Education are each
    authorized to make available not to exceed $15,000 from funds available
    for salaries and expenses under titles I and III, respectively, for
    official reception and representation expenses; the Director of the
    Federal Mediation and Conciliation Service is authorized to make
    available for official reception and representation expenses not to
    exceed $2,500 from the funds available for ``Salaries and expenses,
    Federal Mediation and Conciliation Service''; and the Chairman of the
    National Mediation Board is authorized to make available for official
    reception and representation expenses not to exceed $2,500 from funds
    available for ``Salaries and expenses, National Mediation Board''.

    [[Page 110 STAT. 3009-269]]

          Sec. 505. Notwithstanding any other provision of this Act, no
    funds appropriated under this Act shall be used to carry out any program
    of distributing sterile needles for the hypodermic injection of any
    illegal drug unless the Secretary of Health and Human Services
    determines that such programs are effective in preventing the spread of
    HIV and do not encourage the use of illegal drugs.
          Sec. 506. (a) Purchase of American-Made Equipment and Products.--
    It is the sense of the Congress that, to the greatest extent
    practicable, all equipment and products purchased with funds made
    available in this Act should be American-made.
          (b) Notice Requirement.--In providing financial assistance to, or
    entering into any contract with, any entity using funds made available
    in this Act, the head of each Federal agency, to the greatest extent
    practicable, shall provide to such entity a notice describing the
    statement made in subsection (a) by the Congress.
          (c) Prohibition of Contracts With Persons Falsely Labeling
    Products as Made in America.--If it has been finally determined by a
    court or Federal agency that any person intentionally affixed a label
    bearing a ``Made in America'' inscription, or any inscription with the
    same meaning, to any product sold in or shipped to the United States
    that is not made in the United States, the person shall be ineligible to
    receive any contract or subcontract made with funds made available in
    this Act, pursuant to the debarment, suspension, and ineligibility
    procedures described in sections 9.400 through 9.409 of title 48, Code
    of Federal Regulations.
          Sec. 507. When issuing statements, press releases, requests for
    proposals, bid solicitations and other documents describing projects or
    programs funded in whole or in part with Federal money, all grantees
    receiving Federal funds included in this Act, including but not limited
    to State and local governments and recipients of Federal research
    grants, shall clearly state (1) the percentage of the total costs of the
    program or project which will be financed with Federal money, (2) the
    dollar amount of Federal funds for the project or program, and (3)
    percentage and dollar amount of the total costs of the project or
    program that will be financed by nongovernmental sources.
          Sec. 508. None of the funds appropriated under this Act shall be
    expended for any abortion except when it is made known to the Federal
    entity or official to which funds are appropriated under this Act that
    such procedure is necessary to save the life of the mother or that the
    pregnancy is the result of an act of rape or incest.
          Sec. 509. <<NOTE: 31 USC 1301 note.>>  Notwithstanding any other
    provision of law--
                (1) no amount may be transferred from an appropriation
            account for the Departments of Labor, Health and Human Services,
            and Education except as authorized in this or any subsequent
            appropriation Act, or in the Act establishing the program or
            activity for which funds are contained in this Act;
                (2) no department, agency, or other entity, other than the
            one responsible for administering the program or activity for
            which an appropriation is made in this Act, may exercise
            authority for the timing of the obligation and expenditure of
            such appropriation, or for the purpose for which it is obligated
            and expended, except to the extent and in the manner otherwise
            provided in sections 1512 and 1513 of title 31, United States
            Code; and

    [[Page 110 STAT. 3009-270]]

                (3) no funds provided under this Act shall be available for
            the salary (or any part thereof) of an employee who is
            reassigned on a temporary detail basis to another position in
            the employing agency or department or in any other agency or
            department, unless the detail is independently approved by the
            head of the employing department or agency.
          Sec. 510. None of the funds made available in this Act may be used
    for the expenses of an electronic benefit transfer (EBT) task force.
          Sec. 511. None of the funds made available in this Act may be used
    to enforce the requirements of section 428(b)(1)(U)(iii) of the Higher
    Education Act of 1965 with respect to any lender when it is made known
    to the Federal official having authority to obligate or expend such
    funds
    that the lender has a loan portfolio under part B of title IV of such
    Act that is equal to or less than $5,000,000.
          Sec. 512. (a) None of the funds made available in this Act may be
    used for--
                (1) the creation of a human embryo or embryos for research
            purposes; or
                (2) research in which a human embryo or embryos are
            destroyed, discarded, or knowingly subjected to risk of injury
            or death greater than that allowed for research on fetuses in
            utero under 45 CFR 46.208(a)(2) and section 498(b) of the Public
            Health Service Act (42 U.S.C. 289g(b)).
          (b) For purposes of this section, the term ``human embryo or
    embryos'' include any organism, not protected as a human subject under
    45 CFR 46 as of the date of the enactment of this Act, that is derived
    by fertilization, parthenogenesis, cloning, or any other means from one
    or more human gametes.
          Sec. 513. (a) Limitation on Use of Funds for Promotion of
    Legalization of Controlled Substances.--None of the funds made available
    in this Act may be used for any activity when it is made known to the
    Federal official having authority to obligate or expend such funds that
    the activity promotes the legalization of any drug or other substance
    included in schedule I of the schedules of controlled substances
    established by section 202 of the Controlled Substances Act (21 U.S.C.
    812).
          (b) Exceptions.--The limitation in subsection (a) shall not apply
    when it is made known to the Federal official having authority to
    obligate or expend such funds that there is significant medical evidence
    of a therapeutic advantage to the use of such drug or other substance or
    that Federally-sponsored clinical trials are being conducted to
    determine therapeutic advantage.
          Sec. 514. (a) Denial of <<NOTE: 10 USC 503 note.>>  Funds for
    Preventing ROTC Access to Campus.--None of the funds made available in
    this or any other Departments of Labor, Health and Human Services, and
    Education, and Related Agencies Appropriations Act for any fiscal year
    may be provided by contract or by grant (including a grant of funds to
    be available for student aid) to a covered educational entity if the
    Secretary of Defense determines that the covered educational entity has
    a policy or practice (regardless of when implemented) that either
    prohibits, or in effect prevents--
                (1) the maintaining, establishing, or operation of a unit of
            the Senior Reserve Officer Training Corps (in accordance with
            section 654 of title 10, United States Code, and other
            applicable Federal laws) at the covered educational entity; or

    [[Page 110 STAT. 3009-271]]

                (2) a student at the covered educational entity from
            enrolling in a unit of the Senior Reserve Officer Training Corps
            at another institution of higher education.
          (b) Denial of Funds for Preventing Federal Military Recruiting on
    Campus.--None of the funds made available in this or any other
    Departments of Labor, Health and Human Services, and Education, and
    Related Agencies Appropriations Act for any fiscal year may be provided
    by contract or by grant (including a grant of funds to be available for
    student aid) to a covered educational entity if the Secretary of Defense
    determines that the covered educational entity has a policy or practice
    (regardless of when implemented) that either prohibits, or in effect
    prevents--
                (1) entry to campuses, or access to students (who are 17
            years of age or older) on campuses, for purposes of Federal
            military recruiting; or
                (2) access by military recruiters for purposes of Federal
            military recruiting to the following information pertaining to
            students (who are 17 years of age or older) enrolled at the
            covered educational entity:
                        (A) student names, addresses, and telephone
                    listings; and
                        (B) if known, student ages, levels of education, and
                    majors.
          (c) Exceptions.--The limitation established in subsection (a) or
    (b) shall not apply to a covered educational entity if the Secretary of
    Defense determines that--
                (1) the covered educational entity has ceased the policy or
            practice described in such subsection;
                (2) the institution of higher education involved has a
            longstanding policy of pacifism based on historical religious
            affiliation; or
                (3) the institution of higher education involved is
            prohibited by the law of any State, or by the order of any State
            court, from allowing Senior Reserve Officer Training Corps
            activities or Federal military recruiting on campus, except that
            this paragraph shall apply only during the one-year period
            beginning on the effective date of this section.
          (d) Notice of Determinations.--Whenever the Secretary of Defense
    makes a determination under subsection (a), (b), or (c), the Secretary--
                (1) shall transmit a notice of the determination to the
            Secretary of Education and to the Congress; and
                (2) shall publish in the Federal Register a notice of the
            determination and the effect of the determination on the
            eligibility of the covered educational entity for contracts and
            grants.
          (e) Semiannual Notice in Federal Register.--The Secretary of
    Defense shall publish in the Federal Register once every 6 months a list
    of each covered educational entity that is currently ineligible for
    contracts and grants by reason of a determination of the Secretary under
    subsection (a) or (b).
          (f) Covered Educational Entity.--For purposes of this section, the
    term ``covered educational entity'' means an institution of higher
    education, or a subelement of an institution of higher education.
          (g) Effective Date.--This section shall take effect upon the
    expiration of the 180-day period beginning on the date of the enactment
    of this Act, by which date the Secretary of Defense shall

    [[Page 110 STAT. 3009-272]]

    have published final regulations in consultation with the Secretary of
    Education to carry out this section.
          Sec. 515. (a) Technical Amendment to Other ROTC and Military
    Recruiting Provisions.--Sections 508 and 509 of the Energy and Water
    Development Appropriations Act, 1997, are amended by striking ``when it
    is made known to the Federal official having authority to obligate or
    expend such funds'' each place it appears and inserting ``if the
    Secretary of Defense determines''.
          (b) Effective Date.--Sections 508 and 509 of the Energy and Water
    Development Appropriations Act, 1997, shall not take effect until the
    expiration of the 180-day period beginning on the date of the enactment
    of this Act, by which date the Secretary of Defense shall have published
    final regulations to carry out such sections (as amended by subsection
    (a)).
          Sec. 516. None of the funds made available in this Act may be
    obligated or expended to enter into or renew a contract with an entity
    when it is made known to the Federal official having authority to
    obligate or expend such funds that--
                (1) such entity is otherwise a contractor with the United
            States and is subject to the requirement in section 4212(d) of
            title 38, United States Code, regarding submission of an annual
            report to the Secretary of Labor concerning employment of
            certain veterans; and
                (2) such entity has not submitted a report as required by
            that section for the most recent year for which such requirement
            was applicable to such entity.
          Sec. 517. (a) Notwithstanding any provision of the Carl D. Perkins
    Vocational and Applied Technology Act (as such Act was in effect on
    September 24, 1990), a State shall be deemed to have met the
    requirements of section 503 of such Act with respect to decisions
    appealed by applications filed on April 30, 1993 and October 29, 1993
    under section 452(b) of the General Education Provisions Act.
          (b) Subsection (a) shall take effect on October 1, 1996.
          Sec. 518. None of the funds appropriated in this Act may be made
    available to any entity under title X of the Public Health Service Act
    unless it is made known to the Federal official having authority to
    obligate or expend such funds that the applicant for the award certifies
    to the Secretary that it encourages family participation in the decision
    of the minor to seek family planning services.
          Sec. 519. Of the budgetary resources available to agencies in this
    Act for salaries and expenses during fiscal year 1997, $30,500,000, to
    be allocated by the Office of Management and Budget, are permanently
    canceled: Provided, That the foregoing provision shall not apply to the
    Food and Drug Administration and the Indian Health Service: Provided
    further, That amounts available in this Act for congressional and
    legislative affairs, public affairs, and intergovernmental affairs
    activities are hereby reduced by $2,000,000.
          Sec. <<NOTE: 5 USC 5597 note.>>  520. Voluntary Separation
    Incentives for Employees of Certain Federal Agencies.--(a)
    Definitions.--For the purposes of this section--
                (1) the term ``agency'' means the Railroad Retirement Board
            and the Office of Inspector General of the Railroad Retirement
            Board;

    [[Page 110 STAT. 3009-273]]

                (2) the term ``employee'' means an employee (as defined by
            section 2105 of title 5, United States Code) who is employed by
            an agency, is serving under an appointment without time
            limitation, and has been currently employed for a continuous
            period of at least 3 years, but does not include--
                        (A) a reemployed annuitant under subchapter III of
                    chapter 83 or chapter 84 of title 5, United States Code,
                    or another retirement system for employees of the
                    agency;
                        (B) an employee having a disability on the basis of
                    which such employee is or would be eligible for
                    disability retirement under subchapter III of chapter 83
                    or chapter 84 of title 5, United States Code, or another
                    retirement system for employees of the agency;
                        (C) an employee who is in receipt of a specific
                    notice of involuntary separation for misconduct or
                    unacceptable performance;
                        (D) an employee who, upon completing an additional
                    period of service as referred to in section
                    3(b)(2)(B)(ii) of the Federal Workforce Restructuring
                    Act of 1994 (5 U.S.C. 5597 note), would qualify for a
                    voluntary separation incentive payment under section 3
                    of such Act;
                        (E) an employee who has previously received any
                    voluntary separation incentive payment by the Federal
                    Government under this section or any other authority and
                    has not repaid such payment;
                        (F) an employee covered by statutory reemployment
                    rights who is on transfer to another organization; or
                        (G) any employee who, during the twenty-four-month
                    period preceding the date of separation, has received a
                    recruitment or relocation bonus under section 5753 of
                    title 5, United States Code, or who, within the twelve-
                    month period preceding the date of separation, received
                    a retention allowance under section 5754 of title 5,
                    United States Code.
          (b) Agency Strategic Plan.--
                (1) In general.--The three-member Railroad Retirement Board,
            prior to obligating any resources for voluntary separation
            incentive payments, shall submit to the House and Senate
            Committees on Appropriations and the Committee on Governmental
            Affairs of the Senate and the Committee on Government Reform and
            Oversight of the House of Representatives a strategic plan
            outlining the intended use of such incentive payments and a
            proposed organizational chart for the agency once such incentive
            payments have been completed.
                (2) Contents.--The agency's plan shall include--
                        (A) the positions and functions to be reduced or
                    eliminated, identified by organizational unit,
                    geographic location, occupational category and grade
                    level;
                        (B) the number and amounts of voluntary separation
                    incentive payments to be offered; and
                        (C) a description of how the agency will operate
                    without the eliminated positions and functions.
          (c) Authority To Provide Voluntary Separation Incentive
    Payments.--
                (1) In general.--A voluntary separation incentive payment
            under this section may be paid by an agency to any employee only
            to the extent necessary to eliminate the positions and functions
            identified by the strategic plan.

    [[Page 110 STAT. 3009-274]]

                (2) Amount and treatment of payments.--A voluntary
            separation incentive payment--
                        (A) shall be paid in a lump sum after the employee's
                    separation;
                        (B) shall be paid from appropriations or funds
                    available for the payment of the basic pay of the
                    employees;
                        (C) shall be equal to the lesser of--
                              (i) an amount equal to the amount the employee
                          would be entitled to receive under section 5595(c)
                          of title 5, United States Code; or
                              (ii) an amount determined by the agency head
                          not to exceed $25,000;
                        (D) may not be made except in the case of any
                    qualifying employee who voluntarily separates (whether
                    by retirement or resignation) before September 30, 1997;
                        (E) shall not be a basis for payment, and shall not
                    be included in the computation, of any other type of
                    Government benefit; and
                        (F) shall not be taken into account in determining
                    the amount of any severance pay to which the employee
                    may be entitled under section 5595 of title 5, United
                    States Code, based on any other separation.
          (d) Additional Agency Contributions to the Retirement Fund.--
                (1) In general.--In addition to any other payments which it
            is required to make under subchapter III of chapter 83 of title
            5, United States Code, an agency shall remit to the Office of
            Personnel Management for deposit in the Treasury of the United
            States to the credit of the Civil Service Retirement and
            Disability Fund an amount equal to 15 percent of the final basic
            pay of each employee of the agency who is covered under
            subchapter III of chapter 83 or chapter 84 of title 5, United
            States Code, to whom a voluntary separation incentive has been
            paid under this section.
                2) Definition.--For the purpose of paragraph (1), the term
            ``final basic pay'', with respect to an employee, means the
            total amount of basic pay which would be payable for a year of
            service by such employee, computed using the employee's final
            rate of basic pay, and, if last serving on
    other than a full-time basis, with appropriate adjustment therefor.
          e) Effect of Subsequent Employment With the Government.--An
    individual who has received a voluntary separation incentive payment
    under this section and accepts any employment for compensation with the
    Government of the United States, or who works for any agency of the
    United States Government through a personal services contract, within 5
    years after the date of the separation on which the payment is based
    shall be required to pay, prior to the individual's first day of
    employment, the entire amount of the incentive payment to the agency
    that paid the incentive payment.
          (f) Reduction of Agency Employment Levels.--
                (1) In general.--The total number of funded employee
            positions in the agency shall be reduced by one position for
            each vacancy created by the separation of any employee who

    [[Page 110 STAT. 3009-275]]

            has received, or is due to receive, a voluntary separation
            incentive payment under this section. For the purposes of this
            subsection, positions shall be counted on a full-time-equivalent
            basis.
                (2) Enforcement.--The President, through the Office of
            Management and Budget, shall monitor the agency and take any
            action necessary to ensure that the requirements of this
            subsection are met.
          (g) Effective Date.--This section shall take effect October 1,
    1996.
          Sec. 521. Correction of Effective Date.--Effective on the day
    after the date of enactment of the Health Centers Consolidation Act of
    1996, section 5 of that Act <<NOTE: 42 USC 233 note.>>  is amended by
    striking ``October 1, 1997'' and inserting ``October 1, 1996''.

      TITLE VI--REORGANIZATION <<NOTE: Student Loan Marketing Association
      Reorganization Act of 1996. 20 USC 1001 note.>> AND PRIVATIZATION OF
    SALLIE MAE AND CONNIE LEE

    SEC. 601. SHORT TITLE.

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

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

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

    ``SEC. 440. REORGANIZATION OF <<NOTE: 20 USC 1087-3.>>  THE STUDENT LOAN
                MARKETING ASSOCIATION THROUGH THE FORMATION OF A HOLDING
                COMPANY.

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

        ``(b) Shareholder Approval.--The plan of reorganization adopted by
    the Board of Directors pursuant to subsection (a) shall be submitted to
    common shareholders of the Association for their approval. The
    reorganization shall occur on the reorganization effective date,
    provided that the plan of reorganization has been

    [[Page 110 STAT. 3009-276]]

    approved by the affirmative votes, cast in person or by proxy, of the
    holders of a majority of the issued and outstanding shares of the
    Association common stock.
        ``(c) Transition.--In the event the shareholders of the Association
    approve the plan of reorganization under subsection (b), the following
    provisions shall apply beginning on the reorganization effective date:
                ``(1) In general.--Except as specifically provided in this
            section, until the dissolution date the Association shall
            continue to have all of the rights, privileges and obligations
            set forth in, and shall be subject to all of the limitations and
            restrictions of, section 439, and the Association shall continue
            to carry out the purposes of such section. The Holding Company
            and any subsidiary of the Holding Company (other than the
            Association) shall not be entitled to any of the rights,
            privileges, and obligations, and shall not be subject to the
            limitations and restrictions, applicable to the Association
            under section 439, except as specifically provided in this
            section. The Holding Company and any subsidiary of the Holding
            Company (other than the Association or a subsidiary of the
            Association) shall not purchase loans insured under this Act
            until such time as the Association ceases acquiring such loans,
            except that the Holding Company may purchase such loans if the
            Association is merely continuing to acquire loans as a lender of
            last resort pursuant to section 439(q) or under an agreement
            with the Secretary described in paragraph (6).
                ``(2) Transfer of certain property.--
                        ``(A) In general.--Except as provided in this
                    section, on the reorganization effective date or as soon
                    as practicable thereafter, the Association shall use the
                    Association's best efforts to transfer to the Holding
                    Company or any subsidiary of the Holding Company (or
                    both), as directed by the Holding Company, all real and
                    personal property of the Association (both tangible and
                    intangible) other than the remaining property. Subject
                    to the preceding sentence, such transferred property
                    shall include all right, title, and interest in--
                              ``(i) direct or indirect subsidiaries of the
                          Association (excluding special purpose funding
                          companies in existence on the date of enactment of
                          this section and any interest in any government-
                          sponsored enterprise);
                              ``(ii) contracts, leases, and other agreements
                          of the Association;
                              ``(iii) licenses and other intellectual
                          property of the Association; and
                              ``(iv) any other property of the Association.
                        ``(B) Construction.--Nothing in this paragraph shall
                    be construed to prohibit the Association from
                    transferring remaining property from time to time to the
                    Holding Company or any subsidiary of the Holding
                    Company, subject to the provisions of paragraph (4).
                ``(3) Transfer of personnel.--On the reorganization
            effective date, employees of the Association shall become
            employees of the Holding Company (or any subsidiary of the
            Holding Company), and the Holding Company (or any subsidiary of
            the Holding Company) shall provide all necessary and appropriate
            management and operational support (including loan

    [[Page 110 STAT. 3009-277]]

            servicing) to the Association, as requested by the Association.
            The Association, however, may obtain such management and
            operational support from persons or entities not associated with
            the Holding Company.
                ``(4) Dividends.--The Association may pay dividends in the
            form of cash or noncash distributions so long as at the time of
            the declaration of such dividends, after giving effect to the
            payment of such dividends as of the date of such declaration by
            the Board of Directors of the Association, the Association's
            capital would be in compliance with the capital standards and
            requirements set forth in section 439(r). If, at any time after
            the reorganization effective date, the Association fails to
            comply with such capital standards, the Holding Company shall
            transfer with due diligence to the Association additional
            capital in such amounts as are necessary to ensure that the
            Association again complies with the capital standards.
                ``(5) Certification prior to dividend.--Prior to the payment
            of any dividend under paragraph (4), the Association shall
            certify to the Secretary of the Treasury that the payment of the
            dividend will be made in compliance with paragraph (4) and shall
            provide copies of all calculations needed to make such
            certification.
                ``(6) Restrictions on new business activity or acquisition
            of assets by association.--
                        ``(A) In general.--After the reorganization
                    effective date, the Association shall not engage in any
                    new business activities or acquire any additional
                    program assets described in section 439(d) other than in
                    connection with--
                              ``(i) student loan purchases through September
                          30, 2007;
                              ``(ii) contractual commitments for future
                          warehousing advances, or pursuant to letters of
                          credit or standby bond purchase agreements, which
                          are outstanding as of the reorganization effective
                          date;
                              ``(iii) the Association serving as a lender-
                          of-last-resort pursuant to section 439(q); and
                              ``(iv) the Association's purchase of loans
                          insured under this part, if the Secretary, with
                          the approval of the Secretary of the Treasury,
                          enters into an agreement with the Association for
                          the continuation or resumption of the
                          Association's secondary market purchase program
                          because the Secretary determines there is
                          inadequate liquidity for loans made under this
                          part.
                        ``(B) Agreement.--The Secretary is authorized to
                    enter into an agreement described in clause (iv) of
                    subparagraph (A) with the Association covering such
                    secondary market activities. Any agreement entered into
                    under such clause shall cover a period of 12 months, but
                    may be renewed if the Secretary determines that
                    liquidity remains inadequate. The fee provided under
                    section 439(h)(7) shall not apply to loans acquired
                    under any such agreement with the Secretary.
                ``(7) Issuance of debt obligations during the transition
            period; attributes of debt obligations.--After the
            reorganization effective date, the Association shall not issue
            debt obligations which mature later than September 30, 2008,
            except in connection with serving as a lender-of-last-resort

    [[Page 110 STAT. 3009-278]]

            pursuant to section 439(q) or with purchasing loans under an
            agreement with the Secretary as described in paragraph (6).
            Nothing in this section shall modify the attributes accorded the
            debt obligations of the Association by section 439, regardless
            of whether such debt obligations are incurred prior to, or at
            any time following, the reorganization effective date or are
            transferred to a trust in accordance with subsection (d).
                ``(8) Monitoring of safety and soundness.--
                        ``(A) Obligation to obtain, maintain, and report
                    information.--The Association shall obtain such
                    information and make and keep such records as the
                    Secretary of the Treasury may from time to time
                    prescribe concerning--
                              ``(i) the financial risk to the Association
                          resulting from the activities of any associated
                          person, to the extent such activities are
                          reasonably likely to have a material impact on the
                          financial condition of the Association, including
                          the Association's capital ratio, the Association's
                          liquidity, or the Association's ability to conduct
                          and finance the Association's operations; and
                              ``(ii) the Association's policies, procedures,
                          and systems for monitoring and controlling any
                          such financial risk.
                        ``(B) Summary reports.--The Secretary of the
                    Treasury may require summary reports of the information
                    described in subparagraph (A) to be filed no more
                    frequently than quarterly. If, as a result of adverse
                    market conditions or based on reports provided pursuant
                    to this subparagraph or other available information, the
                    Secretary of the Treasury has concerns regarding the
                    financial or operational condition of the Association,
                    the Secretary of the Treasury may, notwithstanding the
                    preceding sentence and subparagraph (A), require the
                    Association to make reports concerning the activities of
                    any associated person whose business activities are
                    reasonably likely to have a material impact on the
                    financial or operational condition of the Association.
                        ``(C) Separate operation of corporations.--
                              ``(i) In general.--The funds and assets of the
                          Association shall at all times be maintained
                          separately from the funds and assets of the
                          Holding Company or any subsidiary of the Holding
                          Company and may be used by the Association solely
                          to carry out the Association's purposes and to
                          fulfill the Association's obligations.
                              ``(ii) Books and records.--The Association
                          shall maintain books and records that clearly
                          reflect the assets and liabilities of the
                          Association, separate from the assets and
                          liabilities of the Holding Company or any
                          subsidiary of the Holding Company.
                              ``(iii) Corporate office.--The Association
                          shall maintain a corporate office that is
                          physically separate from any office of the Holding
                          Company or any subsidiary of the Holding Company.
                              ``(iv) Director.--No director of the
                          Association who is appointed by the President
                          pursuant to section

    [[Page 110 STAT. 3009-279]]

                          439(c)(1)(A) may serve as a director of the
                          Holding Company.
                              ``(v) One officer requirement.--At least one
                          officer of the Association shall be an officer
                          solely of the Association.
                              ``(vi) Transactions.--Transactions between the
                          Association and the Holding Company or any
                          subsidiary of the Holding Company, including any
                          loan servicing arrangements, shall be on terms no
                          less favorable to the Association than the
                          Association could obtain from an unrelated third
                          party offering comparable services.
                              ``(vii) Credit prohibition.--The Association
                          shall not extend credit to the Holding Company or
                          any subsidiary of the Holding Company nor
                          guarantee or provide any credit enhancement to any
                          debt obligations of the Holding Company or any
                          subsidiary of the Holding Company.
                              ``(viii) Amounts collected.--Any amounts
                          collected on behalf of the Association by the
                          Holding Company or any subsidiary of the Holding
                          Company with respect to the assets of the
                          Association, pursuant to a servicing contract or
                          other arrangement between the Association and the
                          Holding Company or any subsidiary of the Holding
                          Company, shall be collected solely for the benefit
                          of the Association and shall be immediately
                          deposited by the Holding Company or such
                          subsidiary to an account under the sole control of
                          the Association.
                        ``(D) Encumbrance of assets.--Notwithstanding any
                    Federal or State law, rule, or regulation, or legal or
                    equitable principle, doctrine, or theory to the
                    contrary, under no circumstances shall the assets of the
                    Association be available or used to pay claims or debts
                    of or incurred by the Holding Company. Nothing in this
                    subparagraph shall be construed to limit the right of
                    the Association to pay dividends not otherwise
                    prohibited under this subparagraph or to limit any
                    liability of the Holding Company explicitly provided for
                    in this section.
                        ``(E) Holding company activities.--After the
                    reorganization effective date and prior to the
                    dissolution date, all business activities of the Holding
                    Company shall be conducted through subsidiaries of the
                    Holding Company.
                        ``(F) Confidentiality.--Any information provided by
                    the Association pursuant to this section shall be
                    subject to the same confidentiality obligations
                    contained in section 439(r)(12).
                        ``(G) Definition.--For purposes of this paragraph,
                    the term `associated person' means any person, other
                    than a natural person, who is directly or indirectly
                    controlling, controlled by, or under common control
                    with, the Association.
                ``(9) Issuance of stock warrants.--
                        ``(A) In general.--On the reorganization effective
                    date, the Holding Company shall issue to the District of
                    Columbia Financial Responsibility and Management
                    Assistance Authority a number of stock warrants that is
                    equal to

    [[Page 110 STAT. 3009-280]]

                    one percent of the outstanding shares of the
                    Association, determined as of the last day of the fiscal
                    quarter preceding the date of enactment of this section,
                    with each stock warrant entitling the holder of the
                    stock warrant to purchase from the Holding Company one
                    share of the registered common stock of the Holding
                    Company or the Holding Company's successors or assigns,
                    at any time on or before September 30, 2008. The
                    exercise price for such warrants shall be an amount
                    equal to the average closing price of the common stock
                    of the Association for the 20 business days prior to the
                    date of enactment of this section on the exchange or
                    market which is then the primary exchange or market for
                    the common stock of the Association. The number of
                    shares of Holding Company common stock subject to each
                    stock warrant and the exercise price of each stock
                    warrant shall be adjusted as necessary to reflect--
                              ``(i) the conversion of Association common
                          stock into Holding Company common stock as part of
                          the plan of reorganization approved by the
                          Association's shareholders; and
                              ``(ii) any issuance or sale of stock
                          (including issuance or sale of treasury stock),
                          stock split, recapitalization, reorganization, or
                          other corporate event, if agreed to by the
                          Secretary of the Treasury and the Association.
                        ``(B) Authority to sell or exercise stock warrants;
                    deposit of proceeds.--The District of Columbia Financial
                    Responsibility and Management Assistance Authority is
                    authorized to sell or exercise the stock warrants
                    described in subparagraph (A). The District of Columbia
                    Financial Responsibility and Management Assistance
                    Authority shall deposit into the account established
                    under section 3(e) of the Student Loan Marketing
                    Association Reorganization Act of 1996 amounts collected
                    from the sale and proceeds resulting from the exercise
                    of the stock warrants pursuant to this subparagraph.
                ``(10) Restrictions on transfer of association shares and
            bankruptcy of association.--After the reorganization effective
            date, the Holding Company shall not sell, pledge, or otherwise
            transfer the outstanding shares of the Association, or agree to
            or cause the liquidation of the Association or cause the
            Association to file a petition for bankruptcy under title 11,
            United States Code, without prior approval of the Secretary of
            the Treasury and the Secretary of Education.

        ``(d) Termination of the Association.--In the event the shareholders
    of the Association approve a plan of reorganization under subsection
    (b), the Association shall dissolve, and the Association's separate
    existence shall terminate on September 30, 2008, after discharge of all
    outstanding debt obligations and liquidation pursuant to this
    subsection. The Association may dissolve pursuant to this subsection
    prior to such date by notifying the Secretary of Education and the
    Secretary of the Treasury of the Association's intention to dissolve,
    unless within 60 days after receipt of such notice the Secretary of
    Education notifies the Association that the Association continues to be
    needed to serve as a lender of last resort pursuant to section 439(q) or
    continues to be needed to purchase loans under an agreement with the
    Secretary described

    [[Page 110 STAT. 3009-281]]

    in subsection (c)(6). On the dissolution date, the Association shall
    take the following actions:
                ``(1) Establishment of a trust.--The Association shall,
            under the terms of an irrevocable trust agreement that is in
            form and substance satisfactory to the Secretary of the
            Treasury, the Association and the appointed trustee, irrevocably
            transfer all remaining obligations of the Association to the
            trust and irrevocably deposit or cause to be deposited into such
            trust, to be held as trust funds solely for the benefit of
            holders of the remaining obligations, money or direct
            noncallable obligations of the United States or any agency
            thereof for which payment the full faith and credit of the
            United States is pledged, maturing as to principal and interest
            in such amounts and at such times as are determined by the
            Secretary of the Treasury to be sufficient, without
            consideration of any significant reinvestment of such interest,
            to pay the principal of, and interest on, the remaining
            obligations in accordance with their terms. To the extent the
            Association cannot provide money or qualifying obligations in
            the amount required, the Holding Company shall be required to
            transfer money or qualifying obligations to the trust in the
            amount necessary to prevent any deficiency.
                ``(2) Use of trust assets.--All money, obligations, or
            financial assets deposited into the trust pursuant to this
            subsection shall be applied by the trustee to the payment of the
            remaining obligations assumed by the trust.
                ``(3) Obligations not transferred to the trust.--The
            Association shall make proper provision for all other
            obligations of the Association not transferred to the trust,
            including the repurchase or redemption, or the making of proper
            provision for the repurchase or redemption, of any preferred
            stock of the Association outstanding. Any obligations of the
            Association which cannot be fully satisfied shall become
            liabilities of the Holding Company as of the date of
            dissolution.
                ``(4) Transfer of remaining assets.--After compliance with
            paragraphs (1) and (3), any remaining assets of the trust shall
            be transferred to the Holding Company or any subsidiary of the
            Holding Company, as directed by the Holding Company.

        ``(e) Operation of the Holding Company.--In the event the
    shareholders of the Association approve the plan of reorganization under
    subsection (b), the following provisions shall apply beginning on the
    reorganization effective date:
                ``(1) Holding company board of directors.--The number of
            members and composition of the Board of Directors of the Holding
            Company shall be determined as set forth in the Holding
            Company's charter or like instrument (as amended from time to
            time) or bylaws (as amended from time to time) and as permitted
            under the laws of the jurisdiction of the Holding Company's
            incorporation.
                ``(2) Holding company name.--The names of the Holding
            Company and any subsidiary of the Holding Company (other than
            the Association)--
                        ``(A) may not contain the name `Student Loan
                    Marketing Association'; and
                        ``(B) may contain, to the extent permitted by
                    applicable State or District of Columbia law, `Sallie
                    Mae' or variations thereof, or such other names as the
                    Board of Directors

    [[Page 110 STAT. 3009-282]]

                    of the Association or the Holding Company deems
                    appropriate.
                ``(3) Use of sallie mae name.--Subject to paragraph (2), the
            Association may assign to the Holding Company, or any subsidiary
            of the Holding Company, the `Sallie Mae' name as a trademark or
            service mark, except that neither the Holding Company nor any
            subsidiary of the Holding Company (other than the Association or
            any subsidiary of the Association) may use the `Sallie Mae' name
            on, or to identify the issuer of, any debt obligation or other
            security offered or sold by the Holding Company or any
            subsidiary of the Holding Company (other than a debt obligation
            or other security issued to and held by the Holding Company or
            any subsidiary of the Holding Company). The Association shall
            remit to the account established under section 3(e) of the
            Student Loan Marketing Association Reorganization Act of 1996,
            $5,000,000, within 60 days of the reorganization effective date
            as compensation for the right to assign the `Sallie Mae' name as
            a trademark or service mark.
                ``(4) Disclosure required.--Until 3 years after the
            dissolution date, the Holding Company, and any subsidiary of the
            Holding Company (other than the Association), shall prominently
            display--
                        ``(A) in any document offering the Holding Company's
                    securities, a statement that the obligations of the
                    Holding Company and any subsidiary of the Holding
                    Company are not guaranteed by the full faith and credit
                    of the United States; and
                        ``(B) in any advertisement or promotional materials
                    which use the `Sallie Mae' name or mark, a statement
                    that neither the Holding Company nor any subsidiary of
                    the Holding Company is a government-sponsored enterprise
                    or instrumentality of the United States.

        ``(f) Strict Construction.--Except as specifically set forth in this
    section, nothing in this section shall be construed to limit the
    authority of the Association as a federally chartered corporation, or of
    the Holding Company as a State or District of Columbia chartered
    corporation.
        ``(g) Right To Enforce.--The Secretary of Education or the Secretary
    of the Treasury, as appropriate, may request that the Attorney General
    bring an action in the United States District Court for the District of
    Columbia for the enforcement of any provision of this section, or may,
    under the direction or control of the Attorney General, bring such an
    action. Such court shall have jurisdiction and power to order and
    require compliance with this section.
        ``(h) Deadline for Reorganization Effective Date.--This section
    shall be of no further force and effect in the event that the
    reorganization effective date does not occur on or before 18 months
    after the date of enactment of this section.
        ``(i) Definitions.--For purposes of this section:
                ``(1) Association.--The term `Association' means the Student
            Loan Marketing Association.
                ``(2) Dissolution date.--The term `dissolution date' means
            September 30, 2008, or such earlier date as the Secretary of
            Education permits the transfer of remaining obligations in
            accordance with subsection (d).

    [[Page 110 STAT. 3009-283]]

                ``(3) Holding company.--The term `Holding Company' means the
            new business corporation established pursuant to this section by
            the Association under the laws of any State of the United States
            or the District of Columbia for the purposes of the
            reorganization and restructuring described in subsection (a).
                ``(4) Remaining obligations.--The term `remaining
            obligations' means the debt obligations of the Association
            outstanding as of the dissolution date.
                ``(5) Remaining property.--The term `remaining property'
            means the following assets and liabilities of the Association
            which are outstanding as of the reorganization effective date:
                        ``(A) Debt obligations issued by the Association.
                        ``(B) Contracts relating to interest rate, currency,
                    or commodity positions or protections.
                        ``(C) Investment securities owned by the
                    Association.
                        ``(D) Any instruments, assets, or agreements
                    described in section 439(d) (including, without
                    limitation, all student loans and agreements relating to
                    the purchase and sale of student loans, forward purchase
                    and lending commitments, warehousing advances, academic
                    facilities obligations, letters of credit, standby bond
                    purchase agreements, liquidity agreements, and student
                    loan revenue bonds or other loans).
                        ``(E) Except as specifically prohibited by this
                    section or section 439, any other nonmaterial assets or
                    liabilities of the Association which the Association's
                    Board of Directors determines to be necessary or
                    appropriate to the Association's operations.
                ``(6) Reorganization.--The term `reorganization' means the
            restructuring event or events (including any merger event)
            giving effect to the Holding Company structure described in
            subsection (a).
                ``(7) Reorganization effective date.--The term
            `reorganization effective date' means the effective date of the
            reorganization as determined by the Board of Directors of the
            Association, which shall not be earlier than the date that
            shareholder approval is obtained pursuant to subsection (b) and
            shall not be later than the date that is 18 months after the
            date of enactment of this section.
                ``(8) Subsidiary.--The term `subsidiary' means one or more
            direct or indirect subsidiaries.''.

        (b) Technical Amendments.--
                (1) Eligible lender.--
                        (A) Amendments to the higher education act.--
                              (i) Definition of eligible lender.--Section
                          435(d)(1)(F) of the Higher Education Act of 1965
                          (20 U.S.C. 1085(d)(1)(F)) is amended by inserting
                          after ``Student Loan Marketing Association'' the
                          following: ``or the Holding Company of the Student
                          Loan Marketing Association, including any
                          subsidiary of the Holding Company, created
                          pursuant to section 440,''.
                              (ii) Definition of eligible lender and federal
                          consolidation loans.--Sections 435(d)(1)(G) and
                          428C(a)(1)(A) of such Act (20 U.S.C. 1085(d)(1)(G)
                          and 1078-3(a)(1)(A)) are each amended by inserting
                          after ``Student Loan Marketing Association'' the
                          following:

    [[Page 110 STAT. 3009-284]]

                          ``or the Holding Company of the Student Loan
                          Marketing Association, including any subsidiary of
                          the Holding Company, created pursuant to section
                          440''.
                        (B) <<NOTE: 20 USC 1078-3 note.>>  Effective date.--
                    The amendments made by this paragraph shall take effect
                    on the reorganization effective date as defined in
                    section 440(h) of the Higher Education Act of 1965 (as
                    added by subsection (a)).
                (2) Enforcement of safety and soundness requirements.--
            Section 439(r) of the Higher Education Act of 1965 (20 U.S.C.
            1087-2(r)) is amended--
                        (A) in the first sentence of paragraph (12), by
                    inserting ``or the Association's associated persons''
                    after ``by the Association'';
                        (B) by redesignating paragraph (13) as paragraph
                    (15); and
                        (C) by inserting after paragraph (12) the following
                    new paragraph:
                ``(13) Enforcement of safety and soundness requirements.--
            The Secretary of Education or the Secretary of the Treasury, as
            appropriate, may request that the Attorney General bring an
            action in the United States District Court for the District of
            Columbia for the enforcement of any provision of this section,
            or may, under the direction or control of the Attorney General,
            bring such an action. Such court shall have jurisdiction and
            power to order and require compliance with this section.''.
                (3) Financial safety and soundness.--Section 439(r) of the
            Higher Education Act of 1965 (20 U.S.C. 1087-2(r)) is further
            amended--
                        (A) in paragraph (1)--
                              (i) by striking ``and'' at the end of
                          subparagraph (A);
                              (ii) by striking the period at the end of
                          subparagraph (B) and inserting ``; and''; and
                              (iii) by adding at the end the following new
                          subparagraph:
                        ``(C)(i) financial statements of the Association
                    within 45 days of the end of each fiscal quarter; and
                        ``(ii) reports setting forth the calculation of the
                    capital ratio of the Association within 45 days of the
                    end of each fiscal quarter.'';
                        (B) in paragraph (2)--
                              (i) by striking clauses (i) and (ii) of
                          subparagraph (A) and inserting the following:
                        ``(i) appoint auditors or examiners to conduct
                    audits of the Association from time to time to determine
                    the condition of the Association for the purpose of
                    assessing the Association's financial safety and
                    soundness and to determine whether the requirements of
                    this section and section 440 are being met; and
                        ``(ii) obtain the services of such experts as the
                    Secretary of the Treasury determines necessary and
                    appropriate, as authorized by section 3109 of title 5,
                    United States Code, to assist in determining the
                    condition of the Association for the purpose of
                    assessing the Association's financial safety and
                    soundness, and to determine whether the

    [[Page 110 STAT. 3009-285]]

                    requirements of this section and section 440 are being
                    met.''; and
                              (ii) by adding at the end the following new
                          subparagraph:
                ``(D) Annual assessment.--
                        ``(i) In general.--For each fiscal year beginning on
                    or after October 1, 1996, the Secretary of the Treasury
                    may establish and collect from the Association an
                    assessment (or assessments) in amounts sufficient to
                    provide for reasonable costs and expenses of carrying
                    out the duties of the Secretary of the Treasury under
                    this section and section 440 during such fiscal year. In
                    no event may the total amount so assessed exceed, for
                    any fiscal year, $800,000, adjusted for each fiscal year
                    ending after September 30, 1997, by the ratio of the
                    Consumer Price Index for All Urban Consumers (issued by
                    the Bureau of Labor Statistics) for the final month of
                    the fiscal year preceding the fiscal year for which the
                    assessment is made to the Consumer Price Index for All
                    Urban Consumers for September 1997.
                        ``(ii) Deposit.--Amounts collected from assessments
                    under this subparagraph shall be deposited in an account
                    within the Treasury of the United States as designated
                    by the Secretary of the Treasury for that purpose. The
                    Secretary of the Treasury is authorized and directed to
                    pay out of any funds available in such account the
                    reasonable costs and expenses of carrying out the duties
                    of the Secretary of the Treasury under this section and
                    section 440. None of the funds deposited into such
                    account shall be available for any purpose other than
                    making payments for such costs and expenses.''; and
                        (C) by inserting after paragraph (13) (as added by
                    paragraph (2)(C)) the following new paragraph:
                ``(14) Actions by secretary.--
                        ``(A) In general.--For any fiscal quarter ending
                    after January 1, 2000, the Association shall have a
                    capital ratio of at least 2.25 percent. The Secretary of
                    the Treasury may, whenever such capital ratio is not
                    met, take any one or more of the actions described in
                    paragraph (7), except that--
                              ``(i) the capital ratio to be restored
                          pursuant to paragraph (7)(D) shall be 2.25
                          percent; and
                              ``(ii) if the relevant capital ratio is in
                          excess of or equal to 2 percent for such quarter,
                          the Secretary of the Treasury shall defer taking
                          any of the actions set forth in paragraph (7)
                          until the next succeeding quarter and may then
                          proceed with any such action only if the capital
                          ratio of the Association remains below 2.25
                          percent.
                        ``(B) Applicability.--The provisions of paragraphs
                    (4), (5), (6), (8), (9), (10), and (11) shall be of no
                    further application to the Association for any period
                    after January 1, 2000.''.
                (4) Information required; dividends.--Section 439(r) of the
            Higher Education Act of 1965 (20 U.S.C. 1087-2(r)) is further
            amended--

    [[Page 110 STAT. 3009-286]]

                        (A) by adding at the end of paragraph (2) (as
                    amended in paragraph (3)(B)(ii)) the following new
                    subparagraph:
                ``(E) Obligation to obtain, maintain, and report
            information.--
                        ``(i) In general.--The Association shall obtain such
                    information and make and keep such records as the
                    Secretary of the Treasury may from time to time
                    prescribe concerning--
                              ``(I) the financial risk to the Association
                          resulting from the activities of any associated
                          person, to the extent such activities are
                          reasonably likely to have a material impact on the
                          financial condition of the Association, including
                          the Association's capital ratio, the Association's
                          liquidity, or the Association's ability to conduct
                          and finance the Association's operations; and
                              ``(II) the Association's policies, procedures,
                          and systems for monitoring and controlling any
                          such financial risk.
                        ``(ii) Summary reports.--The Secretary of the
                    Treasury may require summary reports of such information
                    to be filed no more frequently than quarterly. If, as a
                    result of adverse market conditions or based on reports
                    provided pursuant to this subparagraph or other
                    available information, the Secretary of the Treasury has
                    concerns regarding the financial or operational
                    condition of the Association, the Secretary of the
                    Treasury may, notwithstanding the preceding sentence and
                    clause (i), require the Association to make reports
                    concerning the activities of any associated person,
                    whose business activities are reasonably likely to have
                    a material impact on the financial or operational
                    condition of the Association.
                        ``(iii) Definition.--For purposes of this
                    subparagraph, the term `associated person' means any
                    person, other than a natural person, directly or
                    indirectly controlling, controlled by, or under common
                    control with the Association.''; and
                        (B) by adding at the end the following new
                    paragraphs:
                ``(16) Dividends.--The Association may pay dividends in the
            form of cash or noncash distributions so long as at the time of
            the declaration of such dividends, after giving effect to the
            payment of such dividends as of the date of such declaration by
            the Board of Directors of the Association, the Association's
            capital would be in compliance with the capital standards set
            forth in this section.
                ``(17) Certification prior to payment of dividend.--Prior to
            the payment of any dividend under paragraph (16), the
            Association shall certify to the Secretary of the Treasury that
            the payment of the dividend will be made in compliance with
            paragraph (16) and shall provide copies of all calculations
            needed to make such certification.''.

        (c) Sunset of the Association's Charter if No Reorganization Plan
    Occurs.--Section 439 of the Higher Education Act of 1965 (20 U.S.C.
    1087-2) is amended by adding at the end the following new subsection:
        ``(s) Charter Sunset.--

    [[Page 110 STAT. 3009-287]]

                ``(1) Application of provisions.--This subsection applies
            beginning 18 months and one day after the date of enactment of
            this subsection if no reorganization of the Association occurs
            in accordance with the provisions of section 440.
                ``(2) Sunset plan.--
                        ``(A) Plan submission by the association.--Not later
                    than July 1, 2007, the Association shall submit to the
                    Secretary of the Treasury and to the Chairman and
                    Ranking Member of the Committee on Labor and Human
                    Resources of the Senate and the Chairman and Ranking
                    Member of the Committee on Economic and Educational
                    Opportunities of the House of Representatives, a
                    detailed plan for the orderly winding up, by July 1,
                    2013, of business activities conducted pursuant to the
                    charter set forth in this section. Such plan shall--
                              ``(i) ensure that the Association will have
                          adequate assets to transfer to a trust, as
                          provided in this subsection, to ensure full
                          payment of remaining obligations of the
                          Association in accordance with the terms of such
                          obligations;
                              ``(ii) provide that all assets not used to pay
                          liabilities shall be distributed to shareholders
                          as provided in this subsection; and
                              ``(iii) provide that the operations of the
                          Association shall remain separate and distinct
                          from that of any entity to which the assets of the
                          Association are transferred.
                        ``(B) Amendment of the plan by the association.--The
                    Association shall from time to time amend such plan to
                    reflect changed circumstances, and submit such
                    amendments to the Secretary of the Treasury and to the
                    Chairman and Ranking Minority Member of the Committee on
                    Labor and Human Resources of the Senate and Chairman and
                    Ranking Minority Member of the Committee on Economic and
                    Educational Opportunities of the House of
                    Representatives. In no case may any amendment extend the
                    date for full implementation of the plan beyond the
                    dissolution date provided in paragraph (3).
                        ``(C) Plan monitoring.--The Secretary of the
                    Treasury shall monitor the Association's compliance with
                    the plan and shall continue to review the plan
                    (including any amendments thereto).
                        ``(D) Amendment of the plan by the secretary of the
                    treasury.--The Secretary of the Treasury may require the
                    Association to amend the plan (including any amendments
                    to the plan), if the Secretary of the Treasury deems
                    such amendments necessary to ensure full payment of all
                    obligations of the Association.
                        ``(E) Implementation by the association.--The
                    Association shall promptly implement the plan (including
                    any amendments to the plan, whether such amendments are
                    made by the Association or are required to be made by
                    the Secretary of the Treasury).
                ``(3) Dissolution of the association.--The Association shall
            dissolve and the Association's separate existence shall
            terminate on July 1, 2013, after discharge of all outstanding
            debt obligations and liquidation pursuant to this subsection.

    [[Page 110 STAT. 3009-288]]

            The Association may dissolve pursuant to this subsection prior
            to such date by notifying the Secretary of Education and the
            Secretary of the Treasury of the Association's intention to
            dissolve, unless within 60 days of receipt of such notice the
            Secretary of Education notifies the Association that the
            Association continues to be needed to serve as a lender of last
            resort pursuant to subsection (q) or continues to be needed to
            purchase loans under an agreement with the Secretary described
            in paragraph (4)(A). On the dissolution date, the Association
            shall take the following actions:
                        ``(A) Establishment of a trust.--The Association
                    shall, under the terms of an irrevocable trust agreement
                    in form and substance satisfactory to the Secretary of
                    the Treasury, the Association, and the appointed
                    trustee, irrevocably transfer all remaining obligations
                    of the Association to a trust and irrevocably deposit or
                    cause to be deposited into such trust, to be held as
                    trust funds solely for the benefit of holders of the
                    remaining obligations, money or direct noncallable
                    obligations of the United States or any agency thereof
                    for which payment the full faith and credit of the
                    United States is pledged, maturing as to principal and
                    interest in such amounts and at such times as are
                    determined by the Secretary of the Treasury to be
                    sufficient, without consideration of any significant
                    reinvestment of such interest, to pay the principal of,
                    and interest on, the remaining obligations in accordance
                    with their terms.
                        ``(B) Use of trust assets.--All money, obligations,
                    or financial assets deposited into the trust pursuant to
                    this subsection shall be applied by the trustee to the
                    payment of the remaining obligations assumed by the
                    trust. Upon the fulfillment of the trustee's duties
                    under the trust, any remaining assets of the trust shall
                    be transferred to the persons who, at the time of the
                    dissolution, were the shareholders of the Association,
                    or to the legal successors or assigns of such persons.
                        ``(C) Obligations not transferred to the trust.--The
                    Association shall make proper provision for all other
                    obligations of the Association, including the repurchase
                    or redemption, or the making of proper provision for the
                    repurchase or redemption, of any preferred stock of the
                    Association outstanding.
                        ``(D) Transfer of remaining assets.--After
                    compliance with subparagraphs (A) and (C), the
                    Association shall transfer to the shareholders of the
                    Association any remaining assets of the Association.
                ``(4) Restrictions relating to winding up.--
                        ``(A) Restrictions on new business activity or
                    acquisition of assets by the association.--
                              ``(i) In general.--Beginning on July 1, 2009,
                          the Association shall not engage in any new
                          business activities or acquire any additional
                          program assets (including acquiring assets
                          pursuant to contractual commitments) described in
                          subsection (d) other than in connection with the
                          Association--
                                        ``(I) serving as a lender of last
                                    resort pursuant to subsection (q); and

    [[Page 110 STAT. 3009-289]]

                                        ``(II) purchasing loans insured
                                    under this part, if the Secretary, with
                                    the approval of the Secretary of the
                                    Treasury, enters into an agreement with
                                    the Association for the continuation or
                                    resumption of the Association's
                                    secondary market purchase program
                                    because the Secretary determines there
                                    is inadequate liquidity for loans made
                                    under this part.
                              ``(ii) Agreement.--The Secretary is authorized
                          to enter into an agreement described in subclause
                          (II) of clause (i) with the Association covering
                          such secondary market activities. Any agreement
                          entered into under such subclause shall cover a
                          period of 12 months, but may be renewed if the
                          Secretary determines that liquidity remains
                          inadequate. The fee provided under subsection
                          (h)(7) shall not apply to loans acquired under any
                          such agreement with the Secretary.
                        ``(B) Issuance of debt obligations during the wind
                    up period; attributes of debt obligations.--The
                    Association shall not issue debt obligations which
                    mature later than July 1, 2013, except in connection
                    with serving as a lender of last resort pursuant to
                    subsection (q) or with purchasing loans under an
                    agreement with the Secretary as described in
                    subparagraph (A). Nothing in this subsection shall
                    modify the attributes accorded the debt obligations of
                    the Association by this section, regardless of whether
                    such debt obligations are transferred to a trust in
                    accordance with paragraph (3).
                        ``(C) Use of association name.--The Association may
                    not transfer or permit the use of the name `Student Loan
                    Marketing Association', `Sallie Mae', or any variation
                    thereof, to or by any entity other than a subsidiary of
                    the Association.''.

        (d) Repeals.--
                (1) In general.--Sections 439 of the Higher Education Act of
            1965 (20 U.S.C. 1087-2) and 440 of such Act (as added by
            subsection (a) of this section) are repealed.
                (2) Effective date.--The repeals <<NOTE: 20 USC 1087-2
            note.>>  made by paragraph (1) shall be effective one year
            after--
                        (A) the date on which all of the obligations of the
                    trust established under section 440(d)(1) of the Higher
                    Education Act of 1965 (as added by subsection (a)) have
                    been extinguished, if a reorganization occurs in
                    accordance with section 440 of such Act; or
                        (B) the date on which all of the obligations of the
                    trust established under subsection 439(s)(3)(A) of such
                    Act (as added by subsection (c)) have been extinguished,
                    if a reorganization does not occur in accordance with
                    section 440 of such Act.

        (e) <<NOTE: 20 USC 1087-2 note.>>  Association Names.--Upon
    dissolution in accordance with section 439(s) of the Higher Education
    Act of 1965 (20 U.S.C. 1087-2), the names ``Student Loan Marketing
    Association'', ``Sallie Mae'', and any variations thereof may not be
    used by any entity engaged in any business similar to the business
    conducted pursuant to section 439 of such Act (as such section was in
    effect on the date of enactment of this Act) without the approval of the
    Secretary of the Treasury.

    [[Page 110 STAT. 3009-290]]

        (f) <<NOTE: 20 USC 1087-2 note.>>  Right to Enforce.--The Secretary
    of Education or the Secretary of the Treasury, as appropriate, may
    request that the Attorney General bring an action in the United States
    District Court for the District of Columbia for the enforcement of any
    provision of subsection (e), or may, under the direction or control of
    the Attorney General, bring such an action. Such court shall have
    jurisdiction and power to order and require compliance with subsection
    (e).

    SEC. 603. CONNIE <<NOTE: 20 USC 1132f-10.>>  LEE PRIVATIZATION.

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

    [[Page 110 STAT. 3009-291]]

                    (c), the Student Loan Marketing Association may provide
                    financial support or guarantees to the Corporation, if
                    such support or guarantees are subject to terms and
                    conditions that are no more advantageous to the
                    Corporation than the terms and conditions the Student
                    Loan Marketing Association provides to other entities,
                    including, where applicable, other monoline financial
                    guaranty corporations in which the Student Loan
                    Marketing Association has no ownership interest.
                (4) No federal guarantee.--
                        (A) Obligations insured by the corporation.--
                              (i) Full faith and credit of the united
                          states.--No obligation that is insured,
                          guaranteed, or otherwise backed by the Corporation
                          shall be deemed to be an obligation that is
                          guaranteed by the full faith and credit of the
                          United States.
                              (ii) Student loan marketing association.--No
                          obligation that is insured, guaranteed, or
                          otherwise backed by the Corporation shall be
                          deemed to be an obligation that is guaranteed by
                          the Student Loan Marketing Association.
                              (iii) Special rule.--This paragraph shall not
                          affect the determination of whether such
                          obligation is guaranteed for purposes of Federal
                          income taxes.
                        (B) Securities offered by the corporation.--No debt
                    or equity securities of the Corporation shall be deemed
                    to be guaranteed by the full faith and credit of the
                    United States.
                (5) Definition.--The term ``Corporation'' as used in this
            section means the College Construction Loan Insurance
            Association as in existence on the day before the date of
            enactment of this Act, and any successor corporation.

        (b) Related Privatization Requirements.--
                (1) Notice requirements.--
                        (A) In general.--During the six-year period
                    following the date of enactment of this Act, the
                    Corporation shall include, in each of the Corporation's
                    contracts for the insurance, guarantee, or reinsurance
                    of obligations, and in each document offering debt or
                    equity securities of the Corporation, a prominent
                    statement providing notice that--
                              (i) such obligations or such securities, as
                          the case may be, are not obligations of the United
                          States, nor are such obligations or such
                          securities, as the case may be, guaranteed in any
                          way by the full faith and credit of the United
                          States; and
                              (ii) the Corporation is not an instrumentality
                          of the United States.
                        (B) Additional notice.--During the five-year period
                    following the sale of stock pursuant to subsection
                    (c)(1), in addition to the notice requirements in
                    subparagraph (A), the Corporation shall include, in each
                    of the contracts and documents referred to in such
                    subparagraph, a prominent statement providing notice
                    that the United States is not an investor in the
                    Corporation.
                (2) Corporate charter.--The Corporation's charter shall be
            amended as necessary and without delay to conform to the
            requirements of this section.

    [[Page 110 STAT. 3009-292]]

                (3) Corporate name.--The name of the Corporation, or of any
            direct or indirect subsidiary thereof, may not contain the term
            ``College Construction Loan Insurance Association'', or any
            substantially similar variation thereof.
                (4) Articles of incorporation.--The Corporation shall amend
            the Corporation's articles of incorporation without delay to
            reflect that one of the purposes of the Corporation shall be to
            guarantee, insure, and reinsure bonds, leases, and other
            evidences of debt of educational institutions, including
            Historically Black Colleges and Universities and other academic
            institutions which are ranked in the lower investment grade
            category using a nationally recognized credit rating system.
                (5) Requirements until stock sale.--Notwithstanding
            subsection (d), the requirements of sections 754 and 760 of the
            Higher Education Act of 1965 (20 U.S.C. 1132f-3 and 1132f-9), as
            such sections were in effect on the day before the date of
            enactment of this Act, shall continue to be effective until the
            day immediately following the date of closing of the purchase of
            the Secretary of Education's stock (or the date of closing of
            the final purchase, in the case of multiple transactions)
            pursuant to subsection (c)(1) of this Act.

        (c) Sale of Federally Owned Stock.--
                (1) Purchase by the corporation.--The Secretary of the
            Treasury shall sell and the Corporation shall purchase, within
            90 days after the date of enactment of this Act, the stock of
            the Corporation held by the Secretary of Education at a price
            determined by the binding, independent appraisal of a nationally
            recognized financial firm, except that the 90-day period may be
            extended by mutual agreement of the Secretary of the Treasury
            and the Corporation to not more than 150 days after the date of
            enactment of this Act. The appraiser shall be jointly selected
            by the Secretary of the Treasury and the Corporation. In the
            event that the Secretary of the Treasury and the Corporation
            cannot agree on the appraiser, then the Secretary of the
            Treasury and the Corporation shall name an independent third
            party to select the appraiser.
                (2) Reimbursement of costs and expenses of sale.--The
            Secretary of the Treasury shall be reimbursed from the proceeds
            of the sale of the stock under this subsection for all
            reasonable costs and expenses related to such sale, except that
            one-half of all reasonable costs and expenses relating to the
            independent appraisal under paragraph (1) shall be borne by the
            Corporation.
                (3) Deposit into account.--Amounts collected from the sale
            of stock pursuant to this subsection that are not used to
            reimburse the Secretary of the Treasury pursuant to paragraph
            (2) shall be deposited into the account established under
            subsection (e).
                (4) Assistance by the corporation.--The Corporation shall
            provide such assistance as the Secretary of the Treasury and the
            Secretary of Education may require to facilitate the sale of the
            stock under this subsection.
                (5) Report to congress.--Not later than 6 months after the
            date of enactment of this Act, the Secretary of the Treasury
            shall report to the appropriate committees of Congress on the
            completion and terms of the sale of stock of the Corporation
            pursuant to this subsection.

    [[Page 110 STAT. 3009-293]]

          (d) Repeal of Statutory Restrictions and Related Provisions.--Part
    D of title VII of the Higher Education Act of 1965 (20 U.S.C. 1132f et
    seq.) is repealed.
          (e) Establishment of Account.--
                (1) In general.--Notwithstanding any other provision of law,
            the District of Columbia Financial Responsibility and Management
            Assistance Authority shall establish an account to receive--
                        (A) amounts collected from the sale and proceeds
                    resulting from the exercise of stock warrants pursuant
                    to section 440(c)(9) of the Higher Education Act of
                    1965;
                        (B) amounts and proceeds remitted as compensation
                    for the right to assign the ``Sallie Mae'' name as a
                    trademark or service mark pursuant to section 440(e)(3)
                    of the Higher Education Act of 1965; and
                        (C) amounts and proceeds collected from the sale of
                    the stock of the Corporation and deposited pursuant to
                    subsection (c)(3).
                (2) Amounts and Proceeds.--
                        (A) Amounts and proceeds relating to sallie mae.--
                    The amounts and proceeds described in subparagraphs (A)
                    and (B) of paragraph (1) shall be used to finance public
                    elementary and secondary school facility construction
                    and repair within the District of Columbia or to carry
                    out the District of Columbia School Reform Act of 1995.
                        (B) Amounts and proceeds relating to connie lee.--
                    The amounts and proceeds described in subparagraph (C)
                    of paragraph (1) shall be used to finance public
                    elementary and secondary school facility construction
                    and repair within the District of Columbia.

    SEC. 604. DISCRIMINATION IN SECONDARY MARKETS PROHIBITED.

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

    ``SEC. 440A. DISCRIMINATION IN <<NOTE: 20 USC 1087-4.>> SECONDARY
                MARKETS PROHIBITED.
          ``The Student Loan Marketing Association (and, if the Association
    is privatized under section 440, any successor entity functioning as a
    secondary market for loans under this part, including the Holding
    Company described in such section) shall not engage directly or
    indirectly in any pattern or practice that results in a denial of a
    borrower's access to loans under this part because of the borrower's
    race, sex, color, religion, national origin, age, disability status,
    income, attendance at a particular eligible institution, length of the
    borrower's educational program, or the borrower's academic year at an
    eligible institution.''.

        TITLE VII--MUSEUM AND <<NOTE: Museum and Library Services Act of
    1996. 20 USC 9101 note.>> LIBRARY SERVICES ACT OF 1996

    SECTION 701. SHORT TITLE.

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

    SEC. 702. MUSEUM AND LIBRARY SERVICES.

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

    [[Page 110 STAT. 3009-294]]

       ``TITLE II--MUSEUM <<NOTE: Museum and Library Services Act.>> AND
    LIBRARY SERVICES

                        ``Subtitle A--General Provisions

    ``SEC. 201. <<NOTE: 20 USC 9101 note.>>  SHORT TITLE.
          ``This title may be cited as the `Museum and Library Services
    Act'.

    ``SEC. 202. <<NOTE: 20 USC 9101.>>  GENERAL DEFINITIONS.
          ``As used in this title:
                ``(1) Commission.--The term `Commission' means the National
            Commission on Libraries and Information Science established
            under section 3 of the National Commission on Libraries and
            Information Sciences Act (20 U.S.C. 1502).
                ``(2) Director.--The term `Director' means the Director of
            the Institute appointed under section 204.
                ``(3) Institute.--The term `Institute' means the Institute
            of Museum and Library Services established under section 203.
                ``(4) Museum board.--The term `Museum Board' means the
            National Museum Services Board established under section 275.

    ``SEC. 203. <<NOTE: 20 USC 9102.>>  INSTITUTE OF MUSEUM AND LIBRARY
                SERVICES.
          ``(a) Establishment.--There is established, within the National
    Foundation on the Arts and the Humanities, an Institute of Museum and
    Library Services.
          ``(b) Offices.--The Institute shall consist of an Office of Museum
    Services and an Office of Library Services. There shall be a National
    Museum Services Board in the Office of Museum Services.

    ``SEC. 204. <<NOTE: 20 USC 9103.>>  DIRECTOR OF THE INSTITUTE.
          ``(a) Appointment.--
                ``(1) In general.--The Institute shall be headed by a
            Director, appointed by the President, by and with the advice and
            consent of the Senate.
                ``(2) Term.--The Director shall serve for a term of 4 years.
                ``(3) Qualifications.--Beginning with the first individual
            appointed to the position of Director after the date of
            enactment of the Museum and Library Services Act of 1996, every
            second individual so appointed shall be appointed from among
            individuals who have special competence with regard to library
            and information services. Beginning with the second individual
            appointed to the position of Director after the date of
            enactment of the Museum and Library Services Act of 1996, every
            second individual so appointed shall be appointed from among
            individuals who have special competence with regard to museum
            services.
          ``(b) Compensation.--The Director may be compensated at the rate
    provided for level III of the Executive Schedule under section 5314 of
    title 5, United States Code.
          ``(c) Duties and Powers.--The Director shall perform such duties
    and exercise such powers as may be prescribed by law, including awarding
    financial assistance for activities described in this title.
          ``(d) Nondelegation.--The Director shall not delegate any of the
    functions of the Director to any person who is not an officer or
    employee of the Institute.

    [[Page 110 STAT. 3009-295]]

          ``(e) Coordination.--The  Director  shall ensure  coordination  of
     the  policies  and activities of  the  Institute  with  the  policies
    and activities of  other  agencies  and  offices  of  the Federal
    Government having interest in and responsibilities for the improvement
    of museums and libraries and information services.

    ``SEC. 205. <<NOTE: 20 USC 9104.>>  DEPUTY DIRECTORS.
          ``The Office of Library Services shall be headed by a Deputy
    Director, who shall be appointed by the Director from among individuals
    who have a graduate degree in library science and expertise in library
    and information services. The Office of Museum Services shall be headed
    by a Deputy Director, who shall be appointed by the Director from among
    individuals who have expertise in museum services.

    ``SEC. 206. <<NOTE: 20 USC 9105.>>  PERSONNEL.
          ``(a) In General.--The Director may, in accordance with applicable
    provisions of title 5, United States Code, appoint and determine the
    compensation of such employees as the Director determines to be
    necessary to carry out the duties of the Institute.
          ``(b) Voluntary Services.--The Director may accept and utilize the
    voluntary services of individuals and reimburse the individuals for
    travel expenses, including per diem in lieu of subsistence, in the same
    amounts and to the same extent as authorized under section 5703 of title
    5, United States Code, for persons employed intermittently in Federal
    Government service.

    ``SEC. 207. <<NOTE: 20 USC 9106.>>  CONTRIBUTIONS.
          ``The Institute is authorized to solicit, accept, receive, and
    invest in the name of the United States, gifts, bequests, or devises of
    money and other property or services and to use such property or
    services in furtherance of the functions of the Institute. Any proceeds
    from such gifts, bequests, or devises, after acceptance by the
    Institute, shall be paid by the donor or the representative of the donor
    to the Director. The Director shall enter the proceeds in a special-
    interest bearing account to the credit of the Institute for the purposes
    specified in each case.

     ``Subtitle B--Library <<NOTE: Library Services and Technology Act. 20
    USC 9101 note.>> Services and Technology

    ``SEC. 211. SHORT TITLE.

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

    ``SEC. 212. <<NOTE: 20 USC 9121.>> PURPOSE.
          ``It is the purpose of this subtitle--
                ``(1) to consolidate Federal library service programs;
                ``(2) to stimulate excellence and promote access to learning
            and information resources in all types of libraries for
            individuals of all ages;
                ``(3) to promote library services that provide all users
            access to information through State, regional, national and
            international electronic networks;
                ``(4) to provide linkages among and between libraries; and
                ``(5) to promote targeted library services to people of
            diverse geographic, cultural, and socioeconomic backgrounds, to
            individuals with disabilities, and to people with limited
            functional literacy or information skills.

    [[Page 110 STAT. 3009-296]]

    ``SEC. 213. <<NOTE: 20 USC 9122.>>  DEFINITIONS.
          ``As used in this subtitle:
                ``(1) Indian tribe.--The term `Indian tribe' means any
            tribe, band, nation, or other organized group or community,
            including any Alaska native village, regional corporation, or
            village corporation, as defined in or established pursuant to
            the Alaska Native Claims Settlement Act (43 U.S.C. 1601 et
            seq.), which is recognized by the Secretary of the Interior as
            eligible for the special programs and services provided by the
            United States to Indians because of their status as Indians.
                ``(2) Library.--The term `library' includes--
                        ``(A) a public library;
                        ``(B) a public elementary school or secondary school
                    library;
                        ``(C) an academic library;
                        ``(D) a research library, which for the purposes of
                    this subtitle means a library that--
                              ``(i) makes publicly available library
                          services and materials suitable for scholarly
                          research and not otherwise available to the
                          public; and
                              ``(ii) is not an integral part of an
                          institution of higher education; and
                        ``(E) a private library, but only if the State in
                    which such private library is located determines that
                    the library should be considered a library for purposes
                    of this subtitle.
                ``(3) Library consortium.--The term `library consortium'
            means any local, statewide, regional, interstate, or
            international cooperative association of library entities which
            provides for the systematic and effective coordination of the
            resources of school, public, academic, and special libraries and
            information centers, for improved services for the clientele of
            such library entities.
                ``(4) State.--The term `State', unless otherwise specified,
            includes each of the 50 States of the United States, the
            District of Columbia, the Commonwealth of Puerto Rico, the
            United States Virgin Islands, Guam, American Samoa, the
            Commonwealth of the Northern Mariana Islands, the Republic of
            the Marshall Islands, the Federated States of Micronesia, and
            the Republic of Palau.
                ``(5) State library administrative agency.--The term `State
            library administrative agency' means the official agency of a
            State charged by the law of the State with the extension and
            development of public library services throughout the State.
                ``(6) State plan.--The term `State plan' means the document
            which gives assurances that the officially designated State
            library administrative agency has the fiscal and legal authority
            and capability to administer all aspects of this subtitle,
            provides assurances for establishing the State's policies,
            priorities, criteria, and procedures necessary to the
            implementation of all programs under this subtitle, submits
            copies for approval as required by regulations promulgated by
            the Director, identifies a State's library needs, and sets forth
            the activities to be taken toward meeting the identified needs
            supported with the assistance of Federal funds made available
            under this subtitle.

    ``SEC. 214. AUTHORIZATION OF <<NOTE: 20 USC 9123.>>  APPROPRIATIONS.
          ``(a) Authorization of Appropriations.--

    [[Page 110 STAT. 3009-297]]

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

                     ``CHAPTER 1--BASIC PROGRAM REQUIREMENTS

    ``SEC. 221. RESERVATIONS AND <<NOTE: 20 USC 9131.>>  ALLOTMENTS.
          ``(a) Reservations.--
                ``(1) In general.--From the amount appropriated under the
            authority of section 214 for any fiscal year, the Director--
                        ``(A) shall reserve 1\1/2\ percent to award grants
                    in accordance with section 261; and
                        ``(B) shall reserve 4 percent to award national
                    leadership grants or contracts in accordance with
                    section 262.
                ``(2) Special rule.--If the funds reserved pursuant to
            paragraph (1)(B) for a fiscal year have not been obligated by
            the end of such fiscal year, then such funds shall be allotted
            in accordance with subsection (b) for the fiscal year succeeding
            the fiscal year for which the funds were so reserved.
          ``(b) Allotments.--
                ``(1) In general.--From the sums appropriated under the
            authority of section 214 and not reserved under subsection (a)
            for any fiscal year, the Director shall award grants from
            minimum allotments, as determined under paragraph (3), to each
            State. Any sums remaining after minimum allotments are made for
            such year shall be allotted in the manner set forth in paragraph
            (2).
                ``(2) Remainder.--From the remainder of any sums
            appropriated under the authority of section 214 that are not
            reserved

    [[Page 110 STAT. 3009-298]]

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

    ``SEC. 222. <<NOTE: 20 USC 9132.>>  ADMINISTRATION.
          ``(a) In General.--Not more than 4 percent of the total amount of
    funds received under this subtitle for any fiscal year by a State may be
    used for administrative costs.

    [[Page 110 STAT. 3009-299]]

          ``(b) Construction.--Nothing in this section shall be construed to
    limit spending for evaluation costs under section 224(c) from sources
    other than this subtitle.

    ``SEC. 223. PAYMENTS; FEDERAL SHARE; <<NOTE: 20 USC 9133.>> AND
                MAINTENANCE OF EFFORT REQUIREMENTS.
          ``(a) Payments.--Subject to appropriations provided pursuant to
    section 214, the Director shall pay to each State library administrative
    agency having a State plan approved under section 224 the Federal share
    of the cost of the activities described in the State plan.
          ``(b) Federal Share.--
                ``(1) In general.--The Federal share shall be 66 percent.
                ``(2) Non-federal share.--The non-Federal share of payments
            shall be provided from non-Federal, State, or local sources.
          ``(c) Maintenance of Effort.--
                ``(1) State expenditures.--
                        ``(A) Requirement.--
                              ``(i) In general.--The amount otherwise
                          payable to a State for a fiscal year pursuant to
                          an allotment under this chapter shall be reduced
                          if the level of State expenditures, as described
                          in paragraph (2), for the previous fiscal year is
                          less than the average of the total of such
                          expenditures for the 3 fiscal years preceding that
                          previous fiscal year. The amount of the reduction
                          in allotment for any fiscal year shall be equal to
                          the amount by which the level of such State
                          expenditures for the fiscal year for which the
                          determination is made is less than the average of
                          the total of such expenditures for the 3 fiscal
                          years preceding the fiscal year for which the
                          determination is made.
                              ``(ii) Calculation.--Any decrease in State
                          expenditures resulting from the application of
                          subparagraph (B) shall be excluded from the
                          calculation of the average level of State
                          expenditures for any 3-year period described in
                          clause (i).
                        ``(B) Decrease in federal support.--If the amount
                    made available under this subtitle for a fiscal year is
                    less than the amount made available under this subtitle
                    for the preceding fiscal year, then the expenditures
                    required by subparagraph (A) for such preceding fiscal
                    year shall be decreased by the same percentage as the
                    percentage decrease in the amount so made available.
                ``(2) Level of state expenditures.--The level of State
            expenditures for the purposes of paragraph (1) shall include all
            State dollars expended by the State library administrative
            agency for library programs that are consistent with the
            purposes of this subtitle. All funds included in the maintenance
            of effort calculation under this subsection shall be expended
            during the fiscal year for which the determination is made, and
            shall not include capital expenditures, special one-time project
            costs, or similar windfalls.
                ``(3) Waiver.--The Director may waive the requirements of
            paragraph (1) if the Director determines that such a waiver

    [[Page 110 STAT. 3009-300]]

            would be equitable due to exceptional or uncontrollable
            circumstances such as a natural disaster or a precipitous and
            unforeseen decline in the financial resources of the State.

    ``SEC. 224. <<NOTE: 20 USC 9134.>>  STATE PLANS.
          ``(a) State Plan Required.--
                ``(1) In general.--In order to be eligible to receive a
            grant under this subtitle, a State library administrative agency
            shall submit a State plan to the Director not later than April
            1, 1997.
                ``(2) Duration.--The State plan shall cover a period of 5
            fiscal years.
                ``(3) Revisions.--If a State library administrative agency
            makes a substantive revision to its State plan, then the State
            library administrative agency shall submit to the Director an
            amendment to the State plan containing such revision not later
            than April 1 of the fiscal year preceding the fiscal year for
            which the amendment will be effective.
          ``(b) Contents.--The State plan shall--
                ``(1) establish goals, and specify priorities, for the State
            consistent with the purposes of this subtitle;
                ``(2) describe activities that are consistent with the goals
            and priorities established under paragraph (1), the purposes of
            this subtitle, and section 231, that the State library
            administrative agency will carry out during such year using such
            grant;
                ``(3) describe the procedures that such agency will use to
            carry out the activities described in paragraph (2);
                ``(4) describe the methodology that such agency will use to
            evaluate the success of the activities established under
            paragraph (2) in achieving the goals and meeting the priorities
            described in paragraph (1);
                ``(5) describe the procedures that such agency will use to
            involve libraries and library users throughout the State in
            policy decisions regarding implementation of this subtitle; and
                ``(6) provide assurances satisfactory to the Director that
            such agency will make such reports, in such form and containing
            such information, as the Director may reasonably require to
            carry out this subtitle and to determine the extent to which
            funds provided under this subtitle have been effective in
            carrying out the purposes of this subtitle.
          ``(c) Evaluation and Report.--Each State library administrative
    agency receiving a grant under this subtitle shall independently
    evaluate, and report to the Director regarding, the activities assisted
    under this subtitle, prior to the end of the 5-year plan.
          ``(d) Information.--Each library receiving assistance under this
    subtitle shall submit to the State library administrative agency such
    information as such agency may require to meet the requirements of
    subsection (c).
          ``(e) Approval.--
                ``(1) In general.--The Director shall approve any State plan
            under this subtitle that meets the requirements of this subtitle
            and provides satisfactory assurances that the provisions of such
            plan will be carried out.

    [[Page 110 STAT. 3009-301]]

                ``(2) Public availability.--Each State library
            administrative agency receiving a grant under this subtitle
            shall make the State plan available to the public.
                ``(3) Administration.--If the Director determines that the
            State plan does not meet the requirements of this section, the
            Director shall--
                        ``(A) immediately notify the State library
                    administrative agency of such determination and the
                    reasons for such determination;
                        ``(B) offer the State library administrative agency
                    the opportunity to revise its State plan;
                        ``(C) provide technical assistance in order to
                    assist the State library administrative agency in
                    meeting the requirements of this section; and
                        ``(D) provide the State library administrative
                    agency the opportunity for a hearing.

                          ``CHAPTER 2--LIBRARY PROGRAMS

    ``SEC. 231. <<NOTE: 20 USC 9141.>>  GRANTS TO STATES.
          ``(a) In General.--Of the funds provided to a State library
    administrative agency under section 214, such agency shall expend,
    either directly or through subgrants or cooperative agreements, at least
    96 percent of such funds for--
                ``(1)(A) establishing or enhancing electronic linkages among
            or between libraries;
                ``(B) electronically linking libraries with educational,
            social, or information services;
                ``(C) assisting libraries in accessing information through
            electronic networks;
                ``(D) encouraging libraries in different areas, and
            encouraging different types of libraries, to establish consortia
            and share resources; or
                ``(E) paying costs for libraries to acquire or share
            computer systems and telecommunications technologies; and
                ``(2) targeting library and information services to persons
            having difficulty using a library and to underserved urban and
            rural communities, including children (from birth through age
            17) from families with incomes below the poverty line (as
            defined by the Office of Management and Budget and revised
            annually in accordance with section 673(2) of the Community
            Services Block Grant Act (42 U.S.C. 9902(2)) applicable to a
            family of the size involved.
          ``(b) Special Rule.--Each State library administrative agency
    receiving funds under this chapter may apportion the funds available for
    the purposes described in subsection (a) between the two purposes
    described in paragraphs (1) and (2) of such subsection, as appropriate,
    to meet the needs of the individual State.

                     ``CHAPTER 3--ADMINISTRATIVE PROVISIONS

                       ``Subchapter A--State Requirements

    ``SEC. 251. <<NOTE: 20 USC 9151.>>  STATE ADVISORY COUNCILS.
          ``Each State desiring assistance under this subtitle may establish
    a State advisory council which is broadly representative of the library
    entities in the State, including public, school, academic,

    [[Page 110 STAT. 3009-302]]

    special, and institutional libraries, and libraries serving individuals
    with disabilities.

                      ``Subchapter B--Federal Requirements

    ``SEC. 261. <<NOTE: 20 USC 9161.>>  SERVICES FOR INDIAN TRIBES.
          ``From amounts reserved under section 221(a)(1)(A) for any fiscal
    year the Director shall award grants to organizations primarily serving
    and representing Indian tribes to enable such organizations to carry out
    the activities described in section 231.

    ``SEC. 262. <<NOTE: 20 USC 9162.>>  NATIONAL LEADERSHIP GRANTS OR
                CONTRACTS.
          ``(a) In General.--From the amounts reserved under section
    221(a)(1)(B) for any fiscal year the Director shall establish and carry
    out a program awarding national leadership grants or contracts to
    enhance the quality of library services nationwide and to provide
    coordination between libraries and museums. Such grants or contracts
    shall be used for activities that may include--
                ``(1) education and training of persons in library and
            information science, particularly in areas of new technology and
            other critical needs, including graduate fellowships,
            traineeships, institutes, or other programs;
                ``(2) research and demonstration projects related to the
            improvement of libraries, education in library and information
            science, enhancement of library services through effective and
            efficient use of new technologies, and dissemination of
            information derived from such projects;
                ``(3) preservation of digitization of library materials and
            resources, giving priority to projects emphasizing coordination,
            avoidance of duplication, and access by researchers beyond the
            institution or library entity undertaking the project; and
                ``(4) model programs demonstrating cooperative efforts
            between libraries and museums.
          ``(b) Grants or Contracts.--
                ``(1) In general.--The Director may carry out the activities
            described in subsection (a) by awarding grants to, or entering
            into contracts with, libraries, agencies, institutions of higher
            education, or museums, where appropriate.
                ``(2) Competitive basis.--Grants and contracts under this
            section shall be awarded on a competitive basis.
            ``(c) Special Rule.--The Director shall make every effort to
    ensure that activities assisted under this section are administered by
    appropriate library and museum professionals or experts.

    ``SEC. 263. <<NOTE: 20 USC 9163.>>  STATE AND LOCAL INITIATIVES.
          ``Nothing in this subtitle shall be construed to interfere with
    State and local initiatives and responsibility in the conduct of library
    services. The administration of libraries, the selection of personnel
    and library books and materials, and insofar as consistent with the
    purposes of this subtitle, the determination of the best uses of the
    funds provided under this subtitle, shall be reserved for the States and
    their local subdivisions.

                          ``Subtitle C--Museum Services

    ``SEC. 271. <<NOTE: 20 USC 9171.>>  PURPOSE.
          ``It is the purpose of this subtitle--

    [[Page 110 STAT. 3009-303]]

                ``(1) to encourage and assist museums in their educational
            role, in conjunction with formal systems of elementary,
            secondary, and postsecondary education and with programs of
            nonformal education for all age groups;
                ``(2) to assist museums in modernizing their methods and
            facilities so that the museums are better able to conserve the
            cultural, historic, and scientific heritage of the United
            States; and
                ``(3) to ease the financial burden borne by museums as a
            result of their increasing use by the public.

    ``SEC. 272. <<NOTE: 20 USC 9172.>>  DEFINITIONS.
          ``As used in this subtitle:
                ``(1) Museum.--The term `museum' means a public or private
            nonprofit agency or institution organized on a permanent basis
            for essentially educational or aesthetic purposes, that utilizes
            a professional staff, owns or utilizes tangible objects, cares
            for the tangible objects, and exhibits the tangible objects to
            the public on a regular basis.
                ``(2) State.--The term `State' means each of the 50 States
            of the United States, the District of Columbia, the Commonwealth
            of Puerto Rico, the United States Virgin Islands, Guam, American
            Samoa, the Commonwealth of the Northern Mariana Islands, the
            Republic of the Marshall Islands, the Federated States of
            Micronesia, and the Republic of Palau.

    ``SEC. 273. MUSEUM <<NOTE: 20 USC 9173.>>  SERVICES ACTIVITIES.
            ``(a) Grants.--The Director, subject to the policy direction of
    the Museum Board, may make grants to museums to pay for the Federal
    share of the cost of increasing and improving museum services, through
    such activities as--
                ``(1) programs that enable museums to construct or install
            displays, interpretations, and exhibitions in order to improve
            museum services provided to the public;
                ``(2) assisting museums in developing and maintaining
            professionally trained or otherwise experienced staff to meet
            the needs of the museums;
                ``(3) assisting museums in meeting the administrative costs
            of preserving and maintaining the collections of the museums,
            exhibiting the collections to the public, and providing
            educational programs to the public through the use of the
            collections;
                ``(4) assisting museums in cooperating with each other in
            developing traveling exhibitions, meeting transportation costs,
            and identifying and locating collections available for loan;
                ``(5) assisting museums in the conservation of their
            collections;
                ``(6) developing and carrying out specialized programs for
            specific segments of the public, such as programs for urban
            neighborhoods, rural areas, Indian reservations, and penal and
            other State institutions; and
                ``(7) model programs demonstrating cooperative efforts
            between libraries and museums.
            ``(b) Contracts and Cooperative Agreements.--
                ``(1) Projects to strengthen museum services.--The Director,
            subject to the policy direction of the Museum Board, is
            authorized to enter into contracts and cooperative agreements
            with appropriate entities, as determined by the Director, to

    [[Page 110 STAT. 3009-304]]

            pay for the Federal share of enabling the entities to undertake
            projects designed to strengthen museum services, except that any
            contracts or cooperative agreements entered into pursuant to
            this subsection shall be effective only to such extent or in
            such amounts as are provided in appropriations Acts.
                ``(2) Limitation on amount.--The aggregate amount of
            financial assistance made available under this subsection for a
            fiscal year shall not exceed 15 percent of the amount
            appropriated under this subtitle for such fiscal year.
                ``(3) Operational expenses.--No financial assistance may be
            provided under this subsection to pay for operational expenses.
                ``(c) Federal Share.--
                ``(1) 50 Percent.--Except as provided in paragraph (2), the
            Federal share described in subsection (a) and (b) shall be not
            more than 50 percent.
                ``(2) Greater than 50 percent.--The Director may use not
            more than 20 percent of the funds made available under this
            subtitle for a fiscal year to make grants under subsection (a),
            or enter into contracts or agreements under subsection (b), for
            which the Federal share may be greater than 50 percent.
                ``(d) Review and Evaluation.--The Director shall establish
            procedures for reviewing and evaluating grants, contracts, and
            cooperative agreements made or entered into under this subtitle.
            Procedures for reviewing grant applications or contracts and
            cooperative agreements for financial assistance under this
            subtitle shall not be subject to any review outside of the
            Institute.

    ``SEC. 274. <<NOTE: 20 USC 9174.>>  AWARD.
          ``The Director, with the advice of the Museum Board, may annually
    award a National Award for Museum Service to outstanding museums that
    have made significant contributions in service to their communities.

    ``SEC. 275. <<NOTE: 20 USC 9175.>>  NATIONAL MUSEUM SERVICES BOARD.
          ``(a) Establishment.--There is established in the Institute a
    National Museum Services Board.
          ``(b) Composition and Qualifications.--
                ``(1) Composition.--The Museum Board shall consist of the
            Director and 14 members appointed by the President, by and with
            the advice and consent of the Senate.
                ``(2) Qualifications.--The appointive members of the Museum
            Board shall be selected from among citizens of the United
            States--
                        ``(A) who are members of the general public;
                        ``(B) who are or have been affiliated with--
                              ``(i) resources that, collectively, are
                          broadly representative of the curatorial,
                          conservation, educational, and cultural resources
                          of the United States; or
                              ``(ii) museums that, collectively, are broadly
                          representative of various types of museums,
                          including museums relating to science, history,
                          technology, art, zoos, and botanical gardens; and
                        ``(C) who are recognized for their broad knowledge,
                    expertise, or experience in museums or commitment to
                    museums.

    [[Page 110 STAT. 3009-305]]

                ``(3) Geographic and other representation.--Members of the
            Museum Board shall be appointed to reflect persons from various
            geographic regions of the United States. The Museum Board may
            not include, at any time, more than 3 members from a single
            State. In making such appointments, the President shall give due
            regard to equitable representation of women, minorities, and
            persons with disabilities who are involved with museums.
          ``(c) Terms.--
                ``(1) In general.--Each appointive member of the Museum
            Board shall serve for a term of 5 years, except that--
                        ``(A) of the members first appointed, 3 shall serve
                    for terms of 5 years, 3 shall serve for terms of 4
                    years, 3 shall serve for terms of 3 years, 3 shall serve
                    for terms of 2 years, and 2 shall serve for terms of 1
                    year, as designated by the President at the time of
                    nomination for appointment; and
                        ``(B) any member appointed to fill a vacancy shall
                    serve for the remainder of the term for which the
                    predecessor of the member was appointed.
                ``(2) Reappointment.--No member of the Museum Board who has
            been a member for more than 7 consecutive years shall be
            eligible for reappointment.
                ``(3) Service until successor takes office.--Notwithstanding
            any other provision of this subsection, a member of the Museum
            Board shall serve after the expiration of the term of the member
            until the successor to the member takes office.
          ``(d) Duties and Powers.--The Museum Board shall have the
    responsibility to advise the Director on general policies with respect
    to the duties, powers, and authority of the Institute relating to museum
    services, including general policies with respect to--
                ``(1) financial assistance awarded under this subtitle for
            museum services; and
                ``(2) projects described in section 262(a)(4).
          ``(e) Chairperson.--The President shall designate 1 of the
    appointive members of the Museum Board as Chairperson of the Museum
    Board.
          ``(f) Meetings.--
                ``(1) In general.--The Museum Board shall meet--
                        ``(A) not less than 3 times each year, including--
                              ``(i) not less than 2 times each year
                          separately; and
                              ``(ii) not less than 1 time each year in a
                          joint meeting with the Commission, convened for
                          purposes of making general policies with respect
                          to financial assistance for projects described in
                          section 262(a)(4); and
                        ``(B) at the call of the Director.
                ``(2) Vote.--All decisions by the Museum Board with respect
            to the exercise of the duties and powers of the Museum Board
            shall be made by a majority vote of the members of the Museum
            Board who are present. All decisions by the Commission and the
            Museum Board with respect to the policies described in paragraph
            (1)(A)(ii) shall be made by a \2/3\ majority vote of the total
            number of the members of the Commission and the Museum Board who
            are present.

    [[Page 110 STAT. 3009-306]]

          ``(g) Quorum.--A majority of the members of the Museum Board shall
    constitute a quorum for the conduct of business at official meetings of
    the Museum Board, but a lesser number of members may hold hearings. A
    majority of the members of the Commission and a majority of the members
    of the Museum Board shall constitute a quorum for the conduct of
    business at official joint meetings of the Commission and the Museum
    Board.
          ``(h) Compensation and Travel Expenses.--
                ``(1) Compensation.--Each member of the Museum Board who is
            not an officer or employee of the Federal Government may be
            compensated at a rate to be fixed by the President, but not to
            exceed the daily equivalent of the maximum rate authorized for a
            position above grade GS-15 of the General Schedule under section
            5108 of title 5, United States Code, for each day (including
            travel time) during which such member is engaged in the
            performance of the duties of the Museum Board. All members of
            the Museum Board who are officers or employees of the Federal
            Government shall serve without compensation in addition to
            compensation received for their services as officers or
            employees of the Federal Government.
                ``(2) Travel expenses.--The members of the Museum Board may
            be allowed travel expenses, including per diem in lieu of
            subsistence, in the same amounts and to the same extent, as
            authorized under section 5703 of title 5, United States Code,
            for persons employed intermittently in Federal Government
            service.
          ``(i) Coordination.--The Museum Board, with the advice of the
    Director, shall take steps to ensure that the policies and activities of
    the Institute are coordinated with other activities of the Federal
    Government.

    ``SEC. 276. <<NOTE: 20 USC 9176.>>  AUTHORIZATION OF APPROPRIATIONS.
          ``(a) Grants.--For the purpose of carrying out this subtitle,
    there are authorized to be appropriated to the Director $28,700,000 for
    the fiscal year 1997, and such sums as may be necessary for each of the
    fiscal years 1998 through 2002.
          ``(b) Administration.--Not more than 10 percent of the funds
    appropriated under this section for a fiscal year may be used to pay for
    the administrative costs of carrying out this subtitle.
          ``(c) Sums Remaining Available.--Sums appropriated pursuant to
    subsection (a) for any fiscal year shall remain available for obligation
    until expended.''.

    SEC. 703. NATIONAL COMMISSION ON LIBRARIES AND INFORMATION SCIENCE.

          (a) Functions.--Section 5 of the National Commission on Libraries
    and Information Science Act (20 U.S.C. 1504) is amended--
                (1) by redesignating subsections (b) through (d) as
            subsections (d) through (f), respectively; and
                (2) by inserting after subsection (a) the following:
          ``(b) The Commission shall have the responsibility to advise the
    Director of the Institute of Museum and Library Services on general
    policies with respect to the duties, powers, and authority of the
    Institute of Museum and Library Services relating to library services,
    including--
                ``(1) general policies with respect to--

    [[Page 110 STAT. 3009-307]]

                        ``(A) financial assistance awarded under the Museum
                    and Library Services Act for library services; and
                        ``(B) projects described in section 262(a)(4) of
                    such Act; and
                ``(2) measures to ensure that the policies and activities of
            the Institute of Museum and Library Services are coordinated
            with other activities of the Federal Government.
          ``(c)(1) The Commission shall meet not less than 1 time each year
    in a joint meeting with the National Museum Services Board, convened for
    purposes of providing advice on general policy with respect to financial
    assistance for projects described in section 262(a)(4) of such Act.
          ``(2) All decisions by the Commission and the National Museum
    Services Board with respect to the advice on general policy described in
    paragraph (1) shall be made by a \2/3\ majority vote of the total number
    of the members of the Commission and the National Museum Services Board
    who are present.
          ``(3) A majority of the members of the Commission and a majority
    of the members of the National Museum Services Board shall constitute a
    quorum for the conduct of business at official joint meetings of the
    Commission and the National Museum Services Board.''.
          (b) Membership.--Section 6 of the National Commission on Libraries
    and Information Science Act (20 U.S.C. 1505) is amended--
                (1) in subsection (a)--
                        (A) in the first sentence, by striking ``Librarian
                    of Congress'' and inserting ``Librarian of Congress, the
                    Director of the Institute of Museum and Library Services
                    (who shall serve as an ex officio, nonvoting member),'';
                        (B) in the second sentence--
                              (i) by striking ``special competence or
                          interest in'' and inserting ``special competence
                          in or knowledge of; and
                              (ii) by inserting before the period the
                          following: ``and at least one other of whom shall
                          be knowledgeable with respect to the library and
                          information service and science needs of the
                          elderly'';
                        (C) in the third sentence, by inserting
                    ``appointive'' before ``members''; and
                        (D) in the last sentence, by striking ``term and at
                    least'' and all that follows and inserting ``term.'';
                    and
                (2) in subsection (b), by striking ``the rate specified''
            and all that follows through ``and while'' and inserting ``the
            daily equivalent of the maximum rate authorized for a position
            above grade GS-15 of the General Schedule under section 5108 of
            title 5, United States Code, for each day (including travel-
            time) during which the members are engaged in the business of
            the Commission. While''.

    SEC. 704. <<NOTE: 20 USC 9102 note.>>  TRANSFER OF FUNCTIONS FROM
                INSTITUTE OF MUSEUM SERVICES.
          (a) Definitions.--For purposes of this section, unless otherwise
    provided or indicated by the context--
                (1) the term ``Federal agency'' has the meaning given to the
            term ``agency'' by section 551(1) of title 5, United States
            Code;

    [[Page 110 STAT. 3009-308]]

                (2) the term ``function'' means any duty, obligation, power,
            authority, responsibility, right, privilege, activity, or
            program; and
                (3) the term ``office'' includes any office, administration,
            agency, institute, unit, organizational entity, or component
            thereof.
          (b) Transfer of Functions From the Institute of Museum Services
    and the Library Program Office.--There are transferred to the Director
    of the Institute of Museum and Library Services established under
    section 203 of the Museum and Library Services Act--
                (1) all functions that the Director of the Institute of
            Museum Services exercised before the date of enactment of this
            section (including all related functions of any officer or
            employee of the Institute of Museum Services); and
                (2) all functions that the Director of Library Programs in
            the Office of Educational Research and Improvement in the
            Department of Education exercised before the date of enactment
            of this section and any related function of any officer or
            employee of the Department of Education.
          (c) Determinations of Certain Functions by the Office of
    Management and Budget.--If necessary, the Office of Management and
    Budget shall make any determination of the functions that are
    transferred under subsection (b).
          (d) Delegation and Assignment.--Except where otherwise expressly
    prohibited by law or otherwise provided by this section, the Director of
    the Institute of Museum and Library Services may delegate any of the
    functions transferred to the Director of the Institute of Museum and
    Library Services by this section and any function transferred or granted
    to such Director of the Institute of Museum and Library Services after
    the effective date of this section to such officers and employees of the
    Institute of Museum and Library Services as the Director of the
    Institute of Museum and Library Services may designate, and may
    authorize successive redelegations of such functions as may be necessary
    or appropriate, except that any delegation of any such functions with
    respect to libraries shall be made to the Deputy Director of the Office
    of Library Services and with respect to museums shall be made to the
    Deputy Director of the Office of Museum
    Services. No delegation of functions by the Director of the Institute of
    Museum and Library Services under this section or under any other
    provision of this section shall relieve such Director of the Institute
    of Museum and Library Services of responsibility for the administration
    of such functions.
          (e) Reorganization.--The Director of the Institute of Museum and
    Library Services may allocate or reallocate any function transferred
    under subsection (b) among the officers of the Institute of Museum and
    Library Services, and may establish, consolidate, alter, or discontinue
    such organizational entities in the Institute of Museum and Library
    Services as may be necessary or appropriate.
          (f) Rules.--The Director of the Institute of Museum and Library
    Services may prescribe, in accordance with chapters 5 and 6 of title 5,
    United States Code, such rules and regulations as the Director of the
    Institute of Museum and Library Services determines to be necessary or
    appropriate to administer and manage the functions of the Institute of
    Museum and Library Services.

    [[Page 110 STAT. 3009-309]]

          (g) Transfer and Allocations of Appropriations and Personnel.--
    Except as otherwise provided in this section, the personnel employed in
    connection with, and the assets, liabilities, contracts, property,
    records, and unexpended balances of appropriations, authorizations,
    allocations, and other funds employed, used, held, arising from,
    available to, or to be made available in connection with the functions
    transferred by this section, subject to section 1531 of title 31, United
    States Code, shall be transferred to the Institute of Museum and Library
    Services. Unexpended funds transferred pursuant to this subsection shall
    be used only for the purposes for which the funds were originally
    authorized and appropriated.
          (h) Incidental Transfers.--The Director of the Office of
    Management and Budget, at such time or times as the Director shall
    provide, may make such determinations as may be necessary with regard to
    the functions transferred by this section, and make such additional
    incidental dispositions of personnel, assets, liabilities, grants,
    contracts, property, records, and unexpended balances of appropriations,
    authorizations, allocations, and other funds held, used, arising from,
    available to, or to be made available in connection with such functions,
    as may be necessary to carry out this section. The Director of the
    Office of Management and Budget shall provide for the termination of the
    affairs of all entities terminated by this section and for such further
    measures and dispositions as may be necessary to effectuate the purposes
    of this section.
          (i) Effect on Personnel.--
                (1) In general.--Except as otherwise provided by this
            section, the transfer pursuant to this section of full-time
            personnel (except special Government employees) and part-time
            personnel holding permanent positions shall not cause any such
            employee to be separated or reduced in grade or compensation for
            1 year after the date of transfer of such employee under this
            section.
                (2) Executive schedule positions.--Except as otherwise
            provided in this section, any person who, on the day preceding
            the effective date of this section, held a position compensated
            in accordance with the Executive Schedule prescribed in chapter
            53 of title 5, United States Code, and who, without a break in
            service, is appointed in the Institute of Museum and Library
            Services to a position having duties comparable to the duties
            performed immediately preceding such appointment shall continue
            to be compensated in such new position at not less than the rate
            provided for such previous position, for the duration of the
            service of such person in such new position.
          (j) Savings Provisions.--
                (1) Continuing effect of legal documents.--All orders,
            determinations, rules, regulations, permits, agreements, grants,
            contracts, certificates, licenses, registrations, privileges,
            and other administrative actions--
                        (A) that have been issued, made, granted, or allowed
                    to become effective by the President, any Federal agency
                    or official of a Federal agency, or by a court of
                    competent jurisdiction, in the performance of functions
                    that are transferred under this section; and
                        (B) that were in effect before the effective date of
                    this section, or were final before the effective date of
                    this

    [[Page 110 STAT. 3009-310]]

                    section and are to become effective on or after the
                    effective date of this section;

    shall continue in effect according to their terms until modified,
    terminated, superseded, set aside, or revoked in accordance with law by
    the President, the Director of the Institute of Museum and Library
    Services or other authorized official, a court of competent
    jurisdiction, or by operation of law.
          (2) Proceedings not affected.--This section shall not affect any
    proceedings, including notices of proposed rulemaking, or any
    application for any license, permit, certificate, or financial
    assistance pending before the Institute of Museum Services on the
    effective date of this section, with respect to functions transferred by
    this section. Such proceedings and applications shall be continued.
    Orders shall be issued in such proceedings, appeals shall be taken from
    the orders, and payments shall be made pursuant to the orders, as if
    this section had not been enacted, and orders issued in any such
    proceedings shall continue in effect until modified, terminated,
    superseded, or revoked by a duly authorized official, by a court of
    competent jurisdiction, or by operation of law. Nothing in this
    paragraph shall be construed to prohibit the discontinuance or
    modification of any such proceeding under the same terms and conditions
    and to the same extent that such proceeding could have been discontinued
    or modified if this section had not been enacted.
                (3) Suits not affected.--This section shall not affect suits
            commenced before the effective date of this section, and in all
            such suits, proceedings shall be had, appeals taken, and
            judgments rendered in the same manner and with the same effect
            as if this section had not been enacted.
                (4) Nonabatement of actions.--No suit, action, or other
            proceeding commenced by or against the Institute of Museum
            Services, or by or against any individual in the official
            capacity of such individual as an officer of the Institute of
            Museum Services, shall abate by reason of the enactment of this
            section.
                (5) Administrative actions relating to promulgation of
            regulations.--Any administrative action relating to the
            preparation or promulgation of a regulation by the Institute of
            Museum Services relating to a function transferred under this
            section may be continued by the Institute of Museum and Library
            Services with the same effect as if this section had not been
            enacted.
          (k) Transition.--The Director of the Institute of Museum and
    Library Services may utilize--
                (1) the services of such officers, employees, and other
            personnel of the Institute of Museum Services with respect to
            functions transferred to the Institute of Museum and Library
            Services by this section; and
                (2) funds appropriated to such functions for such period of
            time as may reasonably be needed to facilitate the orderly
            implementation of this section.
          (l) References.--A reference in any other Federal law, Executive
    order, rule, regulation, or delegation of authority, or any document of
    or relating to--
                (1) the Director of the Institute of Museum Services with
            regard to functions transferred under subsection (b), shall be
            deemed to refer to the Director of the Institute of Museum and
            Library Services; and

    [[Page 110 STAT. 3009-311]]

                (2) the Institute of Museum Services with regard to
            functions transferred under subsection (b), shall be deemed to
            refer to the Institute of Museum and Library Services.
          (m) Additional Conforming Amendments.--
                (1) Recommended legislation.--After consultation with the
            appropriate committees of Congress and the Director of the
            Office of Management and Budget, the Director of the Institute
            of Museum and Library Services shall prepare and submit to the
            appropriate committees of Congress recommended legislation
            containing technical and conforming amendments to reflect the
            changes made by this section.
                (2) Submission to congress.--Not later than 6 months after
            the effective date of this section, the Director of the
            Institute of Museum and Library Services shall submit to the
            appropriate committees of Congress the recommended legislation
            referred to under paragraph (1).

    SEC. 705. <<NOTE: 20 USC 9103 note.>>  SERVICE OF INDIVIDUALS SERVING ON
                DATE OF ENACTMENT.
          Notwithstanding section 204 of the Museum and Library Services
    Act, the individual who was appointed to the position of Director of the
    Institute of Museum Services under section 205 of the Museum Services
    Act (as such section was in effect on the day before the date of
    enactment of this Act) and who is serving in such position on the day
    before the date of enactment of this Act shall serve as the first
    Director of the Institute of Museum and Library Services under section
    204 of the Museum and Library Services Act (as added by section 2 of
    this Act), and shall serve at the pleasure of the President.

    SEC. 706. <<NOTE: 20 USC 9105 note.>>  CONSIDERATION.
          Consistent with title 5, United States Code, in appointing
    employees of the Office of Library Services, the Director of the
    Institute of Museum and Library Services shall give strong consideration
    to individuals with experience in administering State-based and national
    library and information services programs.

    SEC. 707. <<NOTE: 20 USC 9102 note.>>  TRANSITION AND TRANSFER OF FUNDS.
          (a) Transition.--The Director of the Office of Management and
    Budget shall take appropriate measures to ensure an orderly transition
    from the activities previously administered by the Director of Library
    Programs in the Office of Educational Research and Improvement in the
    Department of Education to the activities administered by the Institute
    for Museum and Library Services under this Act. Such measures may
    include the transfer of appropriated funds.
          (b) Transfer.--From any amounts available to the Secretary of
    Education for salaries and expenses at the Department of Education, the
    Secretary of Education shall transfer to the Director the amount of
    funds necessary to ensure the orderly transition from activities
    previously administered by the Director of the Office of Library
    Programs in the Office of Educational Research and Improvement in the
    Department of Education to the activities administered by the Institute
    for Museum and Library Services. In no event shall the amount of funds
    transferred pursuant to the preceding sentence be less than $200,000.

    [[Page 110 STAT. 3009-312]]

    SEC. 708. REPEALS.

          (a) Library Services and Construction Act.--The Library Services
    and Construction Act (20 U.S.C. 351 et seq.) is repealed.
          (b) Title II of the Higher Education Act of 1965.--Title II of the
    Higher Education Act of 1965 (20 U.S.C. 1021 et seq.), relating to
    academic libraries and information services, is repealed.
          (c) Part D of Title XIII of the Higher Education Amendments of
    1986.--Part D of title XIII of the Higher Education Amendments of 1986
    (20 U.S.C. 1029 note), relating to library resources, is repealed.
          (d) Section 519 of the Education Amendments of 1974.--Section 519
    of the Education Amendments of 1974 (20 U.S.C. 1221i) is repealed.
          (e) Part F of the Technology for Education Act of 1994.--Part F of
    the Technology for Education Act of 1994 (20 U.S.C. 7001 et seq.),
    contained in title III of the Elementary and Secondary Education Act of
    1965, is repealed.

    SEC. 709. CONFORMING AMENDMENTS.

          (a) References to Library Services and Construction Act.--
                (1) Technology for education act of 1994.--Section 3113(10)
            of the Technology for Education Act of 1994 (20 U.S.C. 6813(10))
            is amended by striking ``section 3 of the Library Services and
            Construction Act;'' and inserting ``section 213 of the Library
            Services and Technology Act;''.
                (2) Omnibus education reconciliation act of 1981.--Section
            528 of the Omnibus Education Reconciliation Act of 1981 (20
            U.S.C. 3489) is amended--
                        (A) by striking paragraph (12); and
                        (B) by redesignating paragraphs (13) through (15) as
                    paragraphs (12) through (14), respectively.
                (3) Elementary and secondary education act of 1965.--Section
            3113(10) of the Elementary and Secondary Education Act of 1965
            (20 U.S.C. 6813(10)) is amended by striking ``section 3 of the
            Library Services and Construction Act'' and inserting ``section
            213 of the Library Services and Technology Act''.
                (4) Community improvement volunteer act of 1994.--Section
            7305 of the Community Improvement Volunteer Act of 1994 (40
            U.S.C. 276d-3) is amended--
                        (A) by striking paragraph (1); and
                        (B) by redesignating paragraphs (2) through (6) as
                    paragraphs (1) through (5), respectively.
                (5) Appalachian regional development act of 1965.--Section
            214(c) of the Appalachian Regional Development Act of 1965 (40
            U.S.C. App. 214(c)) is amended by striking ``Library Services
            and Construction Act;''.
                (6) Demonstration cities and metropolitan development act of
            1966.--Section 208(2) of the Demonstration Cities and
            Metropolitan Development Act of 1966 (42 U.S.C. 3338(2)) is
            amended by striking ``title II of the Library Services and
            Construction Act;''.
                (7) Public law 87-688.--Subsection (c) of the first section
            of the Act entitled ``An Act to extend the application of
            certain laws to American Samoa'', approved September 25, 1962
            (48 U.S.C. 1666(c)) is amended by striking ``the Library
            Services Act (70 Stat. 293; 20 U.S.C. 351 et seq.),''.

    [[Page 110 STAT. 3009-313]]

                (8) Communications act of 1934.--Paragraph (4) of section
            254(h) of the Communications Act of 1934 (47 U.S.C. 254(h)(4))
            is amended by striking ``library not eligible for participation
            in State-based plans for funds under title III of the Library
            Services and Construction Act (20 U.S.C. 335c et seq.)'' and
            inserting ``library or library consortium not eligible for
            assistance from a State library administrative agency under the
            Library Services and Technology Act''.
          (b) References to Institute of Museum Services.--
                (1) Title 5, united states code.--Section 5315 of title 5,
            United States Code, is amended by striking the following:
                ``Director of the Institute of Museum Services.'' and
            inserting the following:
                ``Director of the Institute of Museum and Library
            Services.''.
                (2) Department of education organization act.--Section 301
            of the Department of Education Organization Act (20 U.S.C. 3441)
            is amended--
                        (A) in subsection (a)--
                              (i) by striking paragraph (5); and
                              (ii) by redesignating paragraphs (6) and (7)
                          as paragraphs (5) and (6), respectively; and
                        (B) in subsection (b)--
                              (i) by striking paragraph (4); and
                              (ii) by redesignating paragraphs (5) through
                          (7) as paragraphs (4) through (6), respectively.
                (3) Elementary and secondary education act of 1965.--
                        (A) Sections 2101(b), 2205(c)(1)(D),
                    2208(d)(1)(H)(v), and 2209(b)(1)(C)(iv), and subsection
                    (d)(6) and (e)(2) of section 10401 of the Elementary and
                    Secondary Education Act of 1965 (20 U.S.C. 6621(b),
                    6645(c)(1)(D), 6648(d)(1)(H)(v), 6649(b)(1)(C)(vi), and
                    8091 (d)(6) and (e)(2)) are amended by striking ``the
                    Institute of Museum Services'' and inserting ``the
                    Institute of Museum and Library Services''.
                        (B) Section 10412(b) of such Act (20 U.S.C. 8102(b))
                    is amended--
                              (i) in paragraph (2), by striking ``the
                          Director of the Institute of Museum Services,''
                          and inserting ``the Director of the Institute of
                          Museum and Library Services,''; and
                              (ii) in paragraph (7), by striking ``the
                          Director of the Institute of Museum Services,''
                          and inserting ``the director of the Institute of
                          Museum and Library Services,''.
                        (C) Section 10414(a)(2)(B) of such Act (20 U.S.C.
                    8104(a)(2)(B)) is amended by striking clause (iii) and
                    inserting the following new clause:
                              ``(iii) the Institute of Museum and Library
                          Services.''.
            (c) References to Office of Libraries and Learning Resources.--
    Section 413(b)(1) of the Department of Education Organization Act (20
    U.S.C. 3473(b)(1)) is amended--
                (1) by striking subparagraph (H); and
                (2) by redesignating subparagraphs (I) through (M) as
            subparagraphs (H) through (L), respectively.

    [[Page 110 STAT. 3009-314]]

            (d) Reference to State Postsecondary Review Entity Programs.--
    Section 356(b)(2) of the Higher Education Act of 1965 (20 U.S.C.
    10696(b)) is amended by striking ``II,''.
          This Act may be cited as the ``Departments of Labor, Health and
    Human Services, and Education, and Related Agencies Appropriations Act,
    1997''.
          (f) For programs, projects or activities in the Treasury, Postal
    Service, and General Appropriations Act, 1997, provided as follows, to
    be effective as if it had been enacted into law as the regular
    appropriations Act:

                                     AN ACT

        Making <<NOTE: Treasury, Postal Service, and General Government
    Appropriations Act, 1997.>> appropriations for the Treasury Department,
    the United States Postal Service, the Executive Office of the President,
     and certain Independent Agencies, for the fiscal year ending September
    30, 1997, and for other purposes.

        TITLE I--DEPARTMENT OF THE TREASURY <<NOTE: Treasury Department
    Appropriations Act, 1997.>>

                              Departmental Offices

                              salaries and expenses

        For necessary expenses of the Departmental Offices including
    operation and maintenance of the Treasury Building and Annex; hire of
    passenger motor vehicles; maintenance, repairs, and improvements of, and
    purchase of commercial insurance policies for, real properties leased or
    owned overseas, when necessary for the performance of official business;
    not to exceed $2,900,000 for official travel expenses; not to exceed
    $150,000 for official reception and representation expenses; not to
    exceed $258,000 for unforeseen emergencies of a confidential nature, to
    be allocated and expended under the direction of the Secretary of the
    Treasury and to be accounted for solely on his certificate;
    $111,760,000.

                             Automation Enhancement

                           including transfer of funds

        For the development and acquisition of automatic data processing
    equipment, software, and services for the Department of the Treasury,
    $27,100,000, of which $15,000,000 shall be available to the United
    States Customs Service for the Automated Commercial Environment project,
    and of which $5,600,000 shall be available to the United States Customs
    Service for the International Trade Data System: Provided, That these
    funds shall remain available until September 30, 1999: Provided further,
    That these funds shall be transferred to accounts and in amounts as
    necessary to satisfy the requirements of the Department's offices,
    bureaus, and other organizations: Provided further, That this transfer
    authority shall be in addition to any other transfer authority provided
    in this Act: Provided further, That none of the funds shall be used to
    support or supplement Internal Revenue Service appropriations for
    Information Systems and Tax Systems Modernization: Provided further,
    That of the funds appropriated for the Automated Commercial Environment,
    $3,475,000 may not be obligated until the Commissioner of Customs
    consults with the Committees on Appropriations regarding deficiencies
    identified by the General Accounting Office.

    [[Page 110 STAT. 3009-315]]

                           Office of Inspector General

                              salaries and expenses

        For necessary expenses of the Office of Inspector General in
    carrying out the provisions of the Inspector General Act of 1978, as
    amended, not to exceed $2,000,000 for official travel expenses;
    including hire of passenger motor vehicles; and not to exceed $100,000
    for unforeseen emergencies of a confidential nature, to be allocated and
    expended under the direction of the Inspector General of the Treasury;
    $29,736,000.

                      Office of Professional Responsibility

                              salaries and expenses

        For necessary expenses of the Office of Professional Responsibility,
    including purchase and hire of passenger motor vehicles, $1,500,000.

               Treasury Buildings and Annex Repair and Restoration

                           including transfer of funds

        For the repair, alteration, and improvement of the Treasury Building
    and Annex, $28,213,000, to remain available until expended: Provided,
    That funds previously made available under this title for the Secret
    Service Headquarter's building shall be transferred to the Secret
    Service Acquisition, Construction, Improvement and Related Expenses
    appropriation.

                      Financial Crimes Enforcement Network

                              salaries and expenses

        For necessary expenses of the Financial Crimes Enforcement Network,
    including hire of passenger motor vehicles; travel expenses of non-
    Federal law enforcement personnel to attend meetings concerned with
    financial intelligence activities, law enforcement, and financial
    regulation; not to exceed $14,000 for official reception and
    representation expenses; and for assistance to Federal law enforcement
    agencies, with or without reimbursement; $22,387,000: Provided, That
    notwithstanding any other provision of law, the Director of the
    Financial Crimes Enforcement Network may procure up to $500,000 in
    specialized, unique, or novel automatic data processing equipment,
    ancillary equipment, software, services, and related resources from
    commercial vendors without regard to otherwise applicable procurement
    laws and regulations and without full and open competition, utilizing
    procedures best suited under the circumstances of the procurement to
    efficiently fulfill the agency's requirements: Provided further, That
    funds appropriated in this account may be used to procure personal
    services contracts.

                   Department of the Treasury Forfeiture Fund

        For necessary expenses of the Treasury Forfeiture Fund, as
    authorized by Public Law 102-393, not to exceed $10,000,000, to be
    derived from deposits in the fund: Provided, That notwithstanding any
    other provision of law, not to exceed $7,500,000 shall

    [[Page 110 STAT. 3009-316]]

    be made available for the development of a Federal wireless
    communication system: Provided further, That the Secretary of the
    Treasury is authorized to receive all unavailable collections
    transferred from the Special Forfeiture Fund established by section 6073
    of the Anti-Drug Abuse Act of 1988 (21
    U.S.C. 1509) by the Director of the Office of Drug Control Policy as a
    deposit into the Treasury Forfeiture Fund (31 U.S.C. 9703(a)).

                        Violent Crime Reduction Programs

                           including transfer of funds

        For activities authorized by Public Law 103-322, to remain available
    until expended, which shall be derived from the Violent Crime Reduction
    Trust Fund, as follows:
        (a) As authorized by section 190001(e), $89,000,000, of which
    $36,595,000 shall be available to the Bureau of Alcohol, Tobacco and
    Firearms, of which $3,000,000 shall be available for administering the
    Gang Resistance Education and Training program, of which $3,662,000
    shall be available for ballistics technologies, including the purchase,
    maintenance and upgrading of equipment and of which $29,133,000 shall be
    available to enhance training and purchase equipment and services, and
    of which $800,000 shall be available for project LEAD; of which
    $18,300,000 shall be available to the Secretary as authorized by section
    732 of Public Law 104-132, as amended by Section 113 of the Fiscal Year
    1997 Department of Commerce, Justice and State, and the Judiciary, and
    Related Agencies Appropriations Act; of which $1,000,000 shall be
    available to the Financial Crimes Enforcement Network; of which
    $20,000,000 shall be available to the United States Secret Service, of
    which no less than $1,400,000 shall be available for a grant for
    activities related to the investigations of missing and exploited
    children; and of which $13,105,000 shall be available to the Federal
    Drug Control Programs, High Intensity Drug Trafficking Areas program
        (b) As authorized by section 32401, $8,000,000, for disbursement
    through grants, cooperative agreements or contracts, to local
    governments for Gang Resistance Education and Training: Provided, That
    notwithstanding sections 32401 and 310001, such funds shall be allocated
    only to the affected State and local law enforcement and prevention
    organizations participating in such projects.

                             Treasury Franchise Fund

        There is hereby established in the Treasury a <<NOTE: 31 USC 501
    note.>>  franchise fund pilot, as authorized by section 403 of Public
    Law 103-356, to be available as provided in such section for expenses
    and equipment necessary for the maintenance and operation of such
    financial and administrative support services as the Secretary
    determines may be performed more advantageously as central services:
    Provided, That any inventories, equipment, and other assets pertaining
    to the services to be provided by such fund, either on hand or on order,
    less the related liabilities or unpaid obligations, and any
    appropriations made for the purpose of providing capital, shall be used
    to capitalize such fund: Provided further, That such fund shall be
    reimbursed or credited with the payments, including advanced payments,
    from applicable appropriations and funds available to the Department and
    other Federal agencies for which such administrative and financial
    services are performed, at rates which

    [[Page 110 STAT. 3009-317]]

    will recover all expenses of operation, including accrued leave,
    depreciation of fund plant and equipment, amortization of Automatic Data
    Processing (ADP) software and systems, and an amount necessary to
    maintain a reasonable operating reserve, as determined by the Secretary:
    Provided further, That such fund shall provide services on a competitive
    basis: Provided further, That an amount not to exceed 4 percent of the
    total annual income to such fund may be retained in the fund for fiscal
    year 1997 and each fiscal year thereafter, to remain available until
    expended, to be used for the acquisition of capital equipment and for
    the improvement and implementation of Treasury financial management,
    ADP, and other support systems: Provided further, That no later than 30
    days after the end of each fiscal year, amounts in excess of this
    reserve limitation shall be deposited as miscellaneous receipts in the
    Treasury: Provided further, That such franchise fund pilot shall
    terminate pursuant to section 403(f) of Public Law 103-356.

                     Federal Law Enforcement Training Center

                              salaries and expenses

        For necessary expenses of the Federal Law Enforcement Training
    Center, as a bureau of the Department of the Treasury, including
    materials and support costs of Federal law enforcement basic training;
    purchase (not to exceed 52 for police-type use, without regard to the
    general purchase price limitation) and hire of passenger motor vehicles;
    for expenses for student athletic and related activities; uniforms
    without regard to the general purchase price limitation for the current
    fiscal year; the conducting of and participating in firearms matches and
    presentation of awards; for public awareness and enhancing community
    support of law enforcement training; not to exceed $9,500 for official
    reception and representation expenses; room and board for student
    interns; and services as authorized by 5 U.S.C. 3109; $54,831,000, of
    which up to $13,034,000 for materials and support costs of Federal law
    enforcement basic training shall remain available until September 30,
    1999: Provided, That <<NOTE: 42 USC 3771 note.>>  the Center is
    authorized to accept and use gifts of property, both real and personal,
    and to accept services, for authorized purposes, including funding of a
    gift of intrinsic value which shall be awarded annually by the Director
    of the Center to the outstanding student who graduated from a basic
    training program at the Center during the previous fiscal year, which
    shall be funded only by gifts received through the Center's gift
    authority: Provided further, That notwithstanding any other provision of
    law, students attending training at any Federal Law Enforcement Training
    Center site shall reside in on-Center or Center-provided housing,
    insofar as available and in accordance with Center policy: Provided
    further, That funds appropriated in this account shall be available, at
    the discretion of the Director, for: training United States Postal
    Service law enforcement personnel and Postal police officers; State and
    local government law enforcement training on a space-available basis;
    training of foreign law enforcement officials on a space-available basis
    with reimbursement of actual costs to this appropriation; training of
    private sector security officials on a space-available basis with
    reimbursement of actual costs to this appropriation; and travel expenses
    of non-

    [[Page 110 STAT. 3009-318]]

    Federal personnel to attend course development meetings and training at
    the Center: Provided further, That the Center is authorized to obligate
    funds in anticipation of reimbursements from agencies receiving training
    at the Federal Law Enforcement Training Center, except that total
    obligations at the end of the fiscal year shall not exceed total
    budgetary resources available at the end of the fiscal year: Provided
    further, That the Federal Law Enforcement Training Center is authorized
    to provide short term medical services for students undergoing training
    at the Center.

          acquisition, construction, improvements, and related expenses

        For expansion of the Federal Law Enforcement Training Center, for
    acquisition of necessary additional real property and facilities, and
    for ongoing maintenance, facility improvements, and related expenses,
    $18,884,000, to remain available until expended.

                          Financial Management Service

                              salaries and expenses

        For necessary expenses of the Financial Management Service,
    $196,069,000, of which not to exceed $14,277,000 shall remain available
    until expended for systems modernization initiatives. In addition,
    $90,000, to be derived from the Oil Spill Liability Trust Fund, to
    reimburse the Service for administrative and personnel expenses for
    financial management of the Fund, as authorized by section 1012 of
    Public Law 101-380: Provided, That none of the funds made available for
    systems modernization initiatives may not be obligated until the
    Commissioner of the Financial Management Service has submitted, and the
    Committees on Appropriations of the House and Senate have approved, a
    report that identifies,
    evaluates, and prioritizes all computer systems investments planned for
    fiscal year 1997, a milestone schedule for the development and
    implementation of all projects included in the systems investment plan,
    and a systems architecture plan.

                     Bureau of Alcohol, Tobacco and Firearms

                              salaries and expenses

        For necessary expenses of the Bureau of Alcohol, Tobacco and
    Firearms, including purchase of not to exceed 650 vehicles for police-
    type use for replacement only and hire of passenger motor vehicles; hire
    of aircraft; and services of expert witnesses at such rates as may be
    determined by the Director; for payment of per diem and/or subsistence
    allowances to employees where an assignment to the National Response
    Team during the investigation of a bombing or arson incident requires an
    employee to work 16 hours or more per day or to remain overnight at his
    or her post of duty; not to exceed $12,500 for official reception and
    representation expenses; for training of State and local law enforcement
    agencies with or without reimbursement, including training in connection
    with the training and acquisition of canines for explosives and fire
    accelerants detection; provision of laboratory assistance to State and
    local agencies, with or without reimbursement; $393,971,000, of which
    $12,011,000, to remain available until

    [[Page 110 STAT. 3009-319]]

    expended, shall be available for arson investigations, with priority
    assigned to any arson, explosion or violence against religious
    institutions; which not to exceed $1,000,000 shall be available for the
    payment of attorneys' fees as provided by 18 U.S.C. 924(d)(2); and of
    which $1,000,000 shall be available for the equipping of any vessel,
    vehicle, equipment, or aircraft available for official use by a State or
    local law enforcement agency if the conveyance will be used in drug-
    related joint law enforcement operations with the Bureau of Alcohol,
    Tobacco and Firearms and for the payment of overtime salaries, travel,
    fuel, training, equipment, and other similar costs of State and local
    law enforcement officers that are incurred in joint operations with the
    Bureau of Alcohol, Tobacco and Firearms: Provided, That no funds made
    available by this or any other Act may be used to transfer the
    functions, missions, or activities of the Bureau of Alcohol, Tobacco and
    Firearms to other agencies or Departments in the fiscal year ending on
    September 30, 1997: Provided further, That no funds appropriated herein
    shall be available for salaries or administrative expenses in connection
    with consolidating or centralizing, within the Department of the
    Treasury, the records, or any portion thereof, of acquisition and
    disposition of firearms maintained by Federal firearms licensees:
    Provided further, That no funds appropriated herein shall be used to pay
    administrative expenses or the compensation of any officer or employee
    of the United States to implement an amendment or amendments to 27 CFR
    178.118 or to change the definition of ``Curios or relics'' in 27 CFR
    178.11 or remove any item from ATF Publication 5300.11 as it existed on
    January 1, 1994: Provided further, That none of the funds appropriated
    herein shall be available to investigate or act upon applications for
    relief from Federal firearms disabilities under 18 U.S.C.
    925(c):Provided further, That such funds shall be available to
    investigate and act upon applications filed by corporations for relief
    from Federal firearms disabilities under 18 U.S.C. 925(c): Provided
    further, That no funds in this Act may be used to provide ballistics
    imaging equipment to any State or local authority who has obtained
    similar equipment through a Federal grant or subsidy unless the State or
    local authority agrees to return that equipment or to repay that grant
    or subsidy to the Federal Government: Provided further, That no funds
    available for separation incentive payments as authorized by section 663
    of this Act may be obligated without the advance approval of the House
    and Senate Committees on Appropriations: Provided further, That no funds
    under this Act may be used to electronically retrieve
    information gathered pursuant to 18 U.S.C. 923(g)(4) by name or any
    personal identification code.

                              laboratory facilities

        For necessary expenses for design of a new facility or facilities,
    to house the Bureau of Alcohol, Tobacco and Firearms National Laboratory
    Center and the Fire Investigation Research and Development Center, not
    to exceed 185,000 occupiable square feet, $6,978,000, to remain
    available until expended: Provided, That these funds shall not be
    available until a prospectus of authorization for the Laboratory
    Facilities is approved by the House Committee on Transportation and
    Infrastructure and the Senate Committee on Environment and Public Works.

    [[Page 110 STAT. 3009-320]]

                          United States Customs Service

                              salaries and expenses

        For necessary expenses of the United States Customs Service,
    including purchase of up to 1,000 motor vehicles of which 960 are for
    replacement only, including 990 for police-type use and commercial
    operations; hire of motor vehicles; contracting with individuals for
    personal services abroad; not to exceed $30,000 for official reception
    and representation expenses; and awards of compensation to informers, as
    authorized by any Act enforced by the United States Customs Service;
    $1,487,250,000; of which $65,000,000 shall be available until expended
    for Operation Hardline; of which $28,000,000 shall remain available
    until expended for acquisition of aircraft and related operations and
    maintenance associated with Operation Gateway; and of which such sums as
    become available in the Customs User Fee Account, except sums subject to
    section 13031(f)(3) of the Consolidated Omnibus Reconciliation Act of
    1985, as amended (19 U.S.C. 58c(f)(3)), shall be derived from that
    Account; of the total, not to exceed $150,000 shall be available for
    payment for rental space in connection with preclearance operations, and
    not to exceed $4,000,000 shall be available until expended for research
    and not to exceed $1,000,000 shall be available until expended for
    conducting special operations pursuant to 19 U.S.C. 2081 and up to
    $6,000,000 shall be available until expended for the procurement of
    automation infrastructure items, including hardware, software, and
    installation: Provided, That uniforms may be purchased without regard to
    the general purchase price limitation for the current fiscal
    year:Provided further, That the United States Custom Service shall
    implement the General Aviation Telephonic Entry program within 30 days
    of enactment of this Act: Provided further, That no funds available for
    separation incentive payments as authorized by section 663 of this Act
    may be obligated without the advance approval of the House and Senate
    Committees on Appropriations:Provided further, That the Spirit of St.
    Louis Airport in St. Louis County, Missouri, shall be designated a port
    of entry: Provided further, That no funds under this Act may be used to
    provide less than 30 days public notice for any change in apparel
    regulations: Provided further, That $750,000 shall be available for
    additional part-time and temporary positions in the Honolulu Customs
    District: Provided further, That of the funds appropriated $2,500,000
    may be made available for the Western Hemisphere Trade Center authorized
    by Public Law 103-182.

         operation and maintenance, air and marine interdiction programs

        For expenses, not otherwise provided for, necessary for the
    operation and maintenance of marine vessels, aircraft, and other related
    equipment of the Air and Marine Programs, including operational training
    and mission-related travel, and rental payments for facilities occupied
    by the air or marine interdiction and demand reduction programs, the
    operations of which include: the interdiction of narcotics and other
    goods; the provision of support to Customs and other Federal, State, and
    local agencies in the enforcement or administration of laws enforced by
    the Customs Service; and, at the discretion of the Commissioner of
    Customs, the provision

    [[Page 110 STAT. 3009-321]]

    of assistance to Federal, State, and local agencies in other law
    enforcement and emergency humanitarian efforts; $83,363,000, which shall
    remain available until expended: Provided, That no aircraft or other
    related equipment, with the exception of aircraft which is one of a kind
    and has been identified as excess to Customs requirements and aircraft
    which has been damaged beyond repair, shall be transferred to any other
    Federal agency, Department, or office outside of the Department of the
    Treasury, during fiscal year 1997 without the prior approval of the
    House and Senate Committees on Appropriations.

                       customs services at small airports

                       (to be derived from fees collected)

        Such sums as may be necessary for expenses for the provision of
    Customs services at certain small airports or other facilities when
    authorized by law and designated by the Secretary of the Treasury,
    including expenditures for the salary and expenses of individuals
    employed to provide such services, to be derived from fees collected by
    the Secretary pursuant to section 236 of Public Law 98-573 for each of
    these airports or other facilities when authorized by law and designated
    by the Secretary, and to remain available until expended.

                        harbor maintenance fee collection

        For administrative expenses related to the collection of the Harbor
    Maintenance Fee, pursuant to Public Law
    103-182, $3,000,000, to be derived from the Harbor Maintenance Trust
    Fund and to be transferred to and merged with the Customs ``Salaries and
    Expenses'' account for such purposes.

                            Bureau of the Public Debt

                          administering the public debt

        For necessary expenses connected with any public-debt issues of the
    United States; $169,735,000: Provided, That the sum appropriated herein
    from the General Fund for fiscal year 1997 shall be reduced by not more
    than $4,400,000 as definitive security issue fees and Treasury Direct
    Investor Account Maintenance fees are collected, so as to result in a
    final fiscal year 1997 appropriation from the General Fund estimated at
    $165,335,000.

                            Internal Revenue Service

                     processing, assistance, and management

        For necessary expenses of the Internal Revenue Service, not
    otherwise provided for; including processing tax returns; revenue
    accounting; providing assistance to taxpayers, management services, and
    inspection; including purchase (not to exceed 150 for replacement only
    for police-type use) and hire of passenger motor vehicles (31 U.S.C.
    1343(b)); and services as authorized by 5 U.S.C. 3109, at such rates as
    may be determined by the Commissioner; $1,779,840,000, of which up to
    $3,700,000 shall be for the Tax

    [[Page 110 STAT. 3009-322]]

    Counseling for the Elderly Program, and of which not to exceed $25,000
    shall be for official reception and representation expenses.

                               tax law enforcement

        For necessary expenses of the Internal Revenue Service for
    determining and establishing tax liabilities; tax and enforcement
    litigation; technical rulings; examining employee plans and exempt
    organizations; investigation and enforcement activities; securing
    unfiled tax returns; collecting unpaid accounts; statistics of income
    and compliance research; the purchase (for police-type use, not to
    exceed 850), and hire of passenger motor vehicles (31 U.S.C. 1343(b));
    and services as authorized by 5 U.S.C. 3109, at such rates as may be
    determined by the Commissioner $4,104,211,000, of which not to exceed
    $1,000,000 shall remain available until September 30, 1999, for
    research.

                               information systems

        For necessary expenses for data processing and telecommunications
    support for Internal Revenue Service activities, including tax systems
    modernization and operational information systems; the hire of passenger
    motor vehicles (31 U.S.C. 1343(b)); and services as authorized by 5
    U.S.C. 3109, at such rates as may be determined by the Commissioner,
    $1,323,075,000, of which no less than $130,075,000 shall be available
    for Tax Systems Modernization (TSM) development and deployment which
    shall be available until September 30, 1999, and of which no less than
    $206,200,000 shall be available for TSM Operational Systems: Provided,
    That none of the funds made available for TSM Operational Systems shall
    be available after July 31, 1997, unless the Department of the Treasury
    has prepared a Request for Proposal which could be used as a base for a
    solicitation of a contract with an alternative or new Prime Contractor
    to manage, integrate, test and implement the TSM program: Provided
    further, That all activities associated with the development of a
    request for proposal, contract solicitation, and contract award for
    private sector assistance on TSM (both operational systems and
    development and deployment systems), beyond private sector assistance
    which is currently under contract, shall be conducted by the Department
    of the Treasury's Modernization Management Board: Provided further, That
    if the Internal Revenue Service determines that it is unable to meet
    deadlines established herein, the Secretary of the Treasury shall notify
    the Committees on Appropriations of the House and the Senate of the
    delay Provided further, That the Internal Revenue Service shall submit,
    by February 1, 1997, a timetable for implementing, by October 1, 1997,
    recommendations made by the General Accounting Office in its July 1995
    report, entitled: ``Tax Systems Modernization: Management and Technical
    Weaknesses Must Be Corrected If Modernization Is To Succeed'': Provided
    further, That the Internal Revenue Service shall submit, by December 1,
    1996, a schedule to transfer, not later than July 31, 1997, a majority
    of Tax Systems Modernization development, deployment, management,
    integration, and testing, from the Internal Revenue Service to the
    private sector.

    [[Page 110 STAT. 3009-323]]

                               information systems

                                  (rescission)

        Of the funds made available under this heading for Information
    Systems in Public Law 104-52, $115,000,000 are rescinded, in Public Law
    103-123, $17,447,000 are rescinded, in Public Law 102-393, $15,000,000
    are rescinded, and in Public Law 102-141, $27,000,000 are rescinded.

               administrative provisions--internal revenue service

        Section 101. Not to exceed 5 percent of any appropriation made
    available in this Act to the Internal Revenue Service may be transferred
    to any other Internal Revenue Service appropriation upon the advance
    approval of the House and Senate Committees on Appropriations.
        Sec. 102. <<NOTE: 26 USC 7803 note.>>  The Internal Revenue Service
    shall maintain a training program to insure that Internal Revenue
    Service employees are trained in taxpayers' rights, in dealing
    courteously with the taxpayers, and in cross-cultural relations.

        Sec. 103. The funds provided in this Act for the Internal Revenue
    Service shall be used to provide as a minimum, the fiscal year 1995
    level of service, staffing, and funding for Taxpayer Services.
        Sec. 104. No funds available in this Act to the Internal Revenue
    Service for separation incentive payments as authorized by section 663
    of this Act may be obligated without the advance approval of the House
    and Senate Committees on Appropriations.
          Sec. 105. The Internal Revenue Service (IRS) may proceed with its
    field support reorganization in fiscal year 1997 after it submits its
    report, no earlier than March 1, 1997, to the Committees on
    Appropriations of the House and Senate only if the IRS maintains, in
    fiscal year 1997, the current level of taxpayer service employees that
    work on cases generated through walk in vists and telephone calls to IRS
    offices.

        Sec. 106. Funds made available by this or any other Act to the
    Internal Revenue Service shall be available for improved facilities and
    increased manpower to provide sufficient and effective 1-800 help line
    for taxpayers. The Commissioner shall make the improvement of the IRS 1-
    800 help line service a priority and allocate resources necessary to
    increase phone lines and staff to improve the IRS 1-800 help line
    service.
        Sec. 107. No funds made available by this Act, or any other Act, to
    the Internal Revenue Service may be used to pay for the design and
    printing of more than two ink colors on the covers of income tax
    packages, and such ink colors must be the same colors as used to print
    the balance of the material in each package.
          Sec. 108. Notwithstanding any other provision of law, no field
    support reorganization of the Internal Revenue Service shall be
    undertaken in Aberdeen, South Dakota until the Internal Revenue Service
    toll-free help phone line assistance program reaches at least an 80
    percent service level. The Commissioner shall submit to Congress a
    report and the GAO shall certify to Congress that the 80 percent service
    level has been met.

    [[Page 110 STAT. 3009-324]]

                          United States Secret Service

                              salaries and expenses

        For necessary expenses of the United States Secret Service,
    including purchase (not to exceed 702 vehicles for police-type use, of
    which 665 shall be for replacement only), and hire of passenger motor
    vehicles; hire of aircraft; training and assistance requested by State
    and local governments, which may be provided without reimbursement;
    services of expert witnesses at such rates as may be determined by the
    Director; rental of buildings in the District of Columbia, and fencing,
    lighting, guard booths, and other facilities on private or other
    property not in Government ownership or control, as may be necessary to
    perform protective functions; for payment of per diem and/or subsistence
    allowances to employees where a protective assignment during the actual
    day or days of the visit of a protectee require an employee to work 16
    hours per day or to remain overnight at his or her post of duty; the
    conducting of and participating in firearms matches; presentation of
    awards; and for travel of Secret Service employees on protective
    missions without regard to the limitations on such expenditures in this
    or any other Act: Provided, That approval is obtained in advance from
    the House and Senate Committees on Appropriations; for repairs,
    alterations, and minor construction at the James J. Rowley Secret
    Service Training Center; for research and development; for making grants
    to conduct behavioral research in support of protective research and
    operations; not to exceed $20,000 for official reception and
    representation expenses; not to exceed $50,000 to provide technical
    assistance and equipment to foreign law enforcement organizations in
    counterfeit investigations; for payment in advance for commercial
    accommodations as may be necessary to perform protective functions; and
    for uniforms without regard to the general purchase price limitation for
    the current fiscal year: Provided further, That 3 U.S.C. 203(a) is
    amended by deleting ``but not exceeding twelve hundred in number'';
    $528,262,000, of which $1,200,000 shall be available as a grant for
    activities related to the investigations of missing and exploited
    children and shall remain available until expended.

                              salaries and expenses

                                  (rescission)

        Of the funds made available under this heading in Public Law 104-52,
    $7,600,000 are rescinded.

          acquisition, construction, improvement, and related expenses

                          (including transfer of funds)

        For necessary expenses of construction, repair, alteration, and
    improvement of facilities, $37,365,000, of which $8,200,000 shall be
    available for the Rowley Secret Service Training Center, to remain
    available until expended: Provided, That funds previously provided under
    the title, ``Treasury Buildings and Annex Repair and Restoration,'' for
    the Secret Service's Headquarters Building, shall be transferred to this
    account: Provided further, That funds for the Rowley Secret Service
    Training Center shall not be available

    [[Page 110 STAT. 3009-325]]

    until a prospectus authorizing such facilities is approved in accordance
    with the Public Buildings Act of 1959, as amended, except that funds may
    be expended for required expenses in connection with the development of
    a proposed prospectus.

                 General Provisions--Department of the Treasury

        Section 111. Any obligation or expenditure by the Secretary in
    connection with law enforcement activities of a Federal agency or a
    Department of the Treasury law enforcement organization in accordance
    with 31 U.S.C. 9703(g)(4)(B) from unobligated balances remaining in the
    Fund on September 30, 1997, shall be made in compliance with the
    reprogramming guidelines contained in the House and Senate reports
    accompanying this Act.
        Sec. 112. Appropriations to the Treasury Department in this Act
    shall be available for uniforms or allowances therefor, as authorized by
    law (5 U.S.C. 5901), including maintenance, repairs, and cleaning;
    purchase of insurance for official motor vehicles operated in foreign
    countries; purchase of motor vehicles without regard to the general
    purchase price limitations for vehicles purchased and used overseas for
    the current fiscal year; entering into contracts with the Department of
    State for the furnishing of health and medical services to employees and
    their dependents serving in foreign countries; and services authorized
    by 5 U.S.C. 3109.
        Sec. 113. None of the funds appropriated by this title shall be used
    in connection with the collection of any underpayment of any tax imposed
    by the Internal Revenue Code of 1986 unless the conduct of officers and
    employees of the Internal Revenue Service in connection with such
    collection, including any private sector employees under contract to the
    Internal Revenue Service, complies with subsection (a) of section 805
    (relating to communications in connection with debt collection), and
    section 806 (relating to harassment or abuse), of the Fair Debt
    Collection Practices Act (15 U.S.C. 1692).
        Sec. 114. <<NOTE: 26 USC 6103 note.>>  The Internal Revenue Service
    shall institute policies and procedures which will safeguard the
    confidentiality of taxpayer information.

        Sec. 115. The funds provided to the Bureau of Alcohol Tobacco and
    Firearms for fiscal year 1997 in this Act for the enforcement of the
    Federal Alcohol Administration Act shall be expended in a manner so as
    not to diminish enforcement efforts with respect to section 105 of the
    Federal Alcohol Administration Act.
        Sec. 116. Paragraph (3)(C) of section 9703(g) of title 31, United
    States Code, is amended--
                (1) by striking in the third sentence ``and at the end of
            each fiscal year thereafter'';
                (2) by inserting in lieu thereof ``1994, 1995, and 1996'';
            and
                (3) by adding at the end the following new sentence: ``At
            the end of fiscal year 1997, and at the end of each fiscal year
            thereafter, the Secretary shall reserve any amounts that are
            required to be retained in the Fund to ensure the availability
            of amounts in the subsequent fiscal year for purposes authorized
            under subsection (a).''

        Sec. 117. Of the funds available to the Internal Revenue Service,
    $13,000,000 shall be made available to continue the private sector debt
    collection program which was initiated in fiscal year

    [[Page 110 STAT. 3009-326]]

    1996 and $13,000,000 shall be transferred to the Departmental Offices
    appropriation to initiate a new private sector debt collection program:
    Provided, That the transfer provided herein shall be in addition to any
    other transfer authority contained in this Act.
        Sec. 118. Section 923(j) of title 18, United States Code, is amended
    by striking the period after the last sentence, and inserting the
    following: ``, including the right of a licensee to conduct `curios or
    relics' firearms transfers and business away from their business
    premises with another licensee without regard as to whether the location
    of where the business is conducted is located in the State specified on
    the license of either licensee.''.
        This title may be cited as the ``Treasury Department Appropriations
    Act, 1997''.

                            TITLE II--POSTAL SERVICE

                         Payments to the Postal Service

                       payment to the postal service fund

        For payment to the Postal Service Fund for revenue forgone on free
    and reduced rate mail, pursuant to subsections (c) and (d) of section
    2401 of title 39, United States Code, $85,080,000: Provided, That mail
    for overseas voting and mail for the blind shall continue to be free:
    Provided further, That 6-day delivery and rural delivery of mail shall
    continue at not less than the 1983 level: Provided further, That none of
    the funds made available to the Postal Service by this Act shall be used
    to implement any rule, regulation, or policy of charging any officer or
    employee of any State or local child support enforcement agency, or any
    individual participating in a State or local program of child support
    enforcement, a fee for information requested or provided concerning an
    address of a postal customer: Provided further, That none of the funds
    provided in this Act shall be used to consolidate or close small rural
    and other small post offices in the fiscal year ending on September 30,
    1997.

          payment to the postal service fund for nonfunded liabilities

        For payment to the Postal Service Fund for meeting the liabilities
    of the former Post Office Department to the Employees' Compensation Fund
    pursuant to 39 United States Code 2004, $35,536,000.

        TITLE  III--EXECUTIVE  OFFICE  OF  THE <<NOTE: Executive Office
      Appropriations Act, 1997.>>  PRESIDENT AND FUNDS APPROPRIATED TO THE
    PRESIDENT

            Compensation of the President and the White House Office

                          compensation of the president

        For compensation of the President, including an expense allowance at
    the rate of $50,000 per annum as authorized by 3 U.S.C. 102, <<NOTE: 3
    USC 102 note.>>  $250,000: Provided, That none of the funds made
    available for official expenses shall be expended for any other purpose
    and any unused amount shall revert to the Treasury pursuant to section
    1552 of title 31, United States Code: Provided further, That none

    [[Page 110 STAT. 3009-327]]

    of the funds made available for official expenses shall be considered as
    taxable to the President.

                              salaries and expenses

        For necessary expenses for the White House as authorized by law,
    including not to exceed $3,850,000 for services as authorized by 5
    U.S.C. 3109 and 3 U.S.C. 105; including subsistence expenses as
    authorized by 3 U.S.C. 105, which shall be expended and accounted for as
    provided in that section; hire of passenger motor vehicles, newspapers,
    periodicals, teletype news service, and travel (not to exceed $100,000
    to be expended and accounted for as provided by 3 U.S.C. 103); not to
    exceed $19,000 for official entertainment expenses, to be available for
    allocation within the Executive Office of the President; $40,193,000:
    Provided, That $420,000 of the funds appropriated may not be obligated
    until the Director of the Office of Administration has submitted, and
    the Committees on Appropriations of the House and Senate have approved,
    a report that identifies, evaluates, and prioritizes all computer
    systems investments planned for fiscal year 1997, a milestone schedule
    for the development and implementation of all projects included in the
    systems investment plan, and a systems architecture plan.

                     Executive Residence at the White House

                               operating expenses

        For the care, maintenance, repair and alteration, refurnishing,
    improvement, heating and lighting, including electric power and
    fixtures, of the Executive Residence at the White House and official
    entertainment expenses of the President, $7,827,000, to be expended and
    accounted for as provided by 3 U.S.C. 105, 109-110, 112-114.

     Special Assistance to the President and the Official Residence of the
                                 Vice President

                              salaries and expenses

        For necessary expenses to enable the Vice President to provide
    assistance to the President in connection with specially assigned
    functions, services as authorized by 5 U.S.C. 3109 and 3 U.S.C. 106,
    including subsistence expenses as authorized by 3 U.S.C. 106, which
    shall be expended and accounted for as provided in that section; and
    hire of passenger motor vehicles; $3,280,000: Provided, That $150,000 of
    the funds appropriated may not be obligated until the Director of the
    Office of Administration has submitted, and the Committees on
    Appropriations of the House and Senate have approved, a report that
    identifies, evaluates, and prioritizes all computer systems investments
    planned for fiscal year 1997, a milestone schedule for the development
    and implementation of all projects included in the systems investment
    plan, and a systems architecture plan.

                               operating expenses

        For the care, operation, refurnishing, improvement, heating and
    lighting, including electric power and fixtures, of the official

    [[Page 110 STAT. 3009-328]]

    residence of the Vice President, the hire of passenger motor vehicles,
    and not to exceed $90,000 for official entertainment expenses of the
    Vice President, to be accounted for solely on his certificate; $324,000:
    Provided, That advances or repayments or transfers from this
    appropriation may be made to any department or agency for expenses of
    carrying out such activities: Provided further, That $8,000 of the funds
    appropriated may not be obligated until the Director of the Office of
    Administration has submitted for approval to the Committees on
    Appropriations of the House and Senate a report that identifies,
    evaluates, and prioritizes all computer systems investments planned for
    fiscal year 1997, a milestone schedule for the development and
    implementation of all projects included in the systems investment plan,
    and a systems architecture plan.

                          Council of Economic Advisers

                              salaries and expenses

        For necessary expenses of the Council in carrying out its functions
    under the Employment Act of 1946 (15 U.S.C. 1021), $3,439,000.

                          Office of Policy Development

                              salaries and expenses

        For necessary expenses of the Office of Policy Development,
    including services as authorized by 5 U.S.C. 3109, and 3 U.S.C. 107;
    $3,867,000: Provided, That $45,000 of the funds appropriated may not be
    obligated until the Director of the Office of Administration has
    submitted, and the Committees on Appropriations of the House and Senate
    have approved, a report that identifies, evaluates, and prioritizes all
    computer systems investments planned for fiscal year 1997, a milestone
    schedule for the development and implementation of all projects included
    in the systems investment plan, and a systems architecture plan.

                            National Security Council

                              salaries and expenses

        For necessary expenses of the National Security Council, including
    services as authorized by 5 U.S.C. 3109, $6,648,000: Provided, That
    $3,000 of the funds appropriated may not be obligated until the Director
    of the Office of Administration has submitted, and the Committees on
    Appropriations of the House and Senate have approved, a report that
    identifies, evaluates, and prioritizes all computer systems investments
    planned for fiscal year 1997, a milestone schedule for the development
    and implementation of all projects included in the systems investment
    plan, and a systems architecture plan.

                            Office of Administration

                              salaries and expenses

        For necessary expenses of the Office of Administration, $26,100,000,
    including services as authorized by 5 U.S.C. 3109

    [[Page 110 STAT. 3009-329]]

    and 3 U.S.C. 107, and hire of passenger motor vehicles: Provided, That
    $340,700 of the funds appropriated may not be obligated until the
    Director of the Office of Administration has submitted, and the
    Committees on Appropriations of the House and Senate have approved, a
    report that identifies, evaluates, and prioritizes all computer systems
    investments planned for fiscal year 1997, a milestone schedule for the
    development and implementation of all projects included in the systems
    investment plan, and a systems architecture plan.

                         Office of Management and Budget

                              salaries and expenses

        For necessary expenses of the Office of Management and Budget,
    including hire of passenger motor vehicles, services as authorized by 5
    U.S.C. 3109, $55,573,000, of which not to exceed $5,000,000 shall be
    available to carry out the provisions of 44 U.S.C. chapter 35: Provided,
    That, as provided in 31 U.S.C. 1301(a), appropriations shall be applied
    only to the objects for which appropriations were made except as
    otherwise provided by law: Provided further, That none of the funds
    appropriated in this Act for the Office of Management and Budget may be
    used for the purpose of reviewing any agricultural marketing orders or
    any activities or regulations under the provisions of the Agricultural
    Marketing Agreement Act of 1937 (7 U.S.C. 601 et seq.): Provided
    further, That none of the funds made available for the Office of
    Management and Budget by this Act may be expended for the altering of
    the transcript of actual testimony of witnesses, except for testimony of
    officials of the Office of Management and Budget, before the House and
    Senate Committees on Appropriations or the House and Senate Committees
    on Veterans' Affairs or their subcommittees: Provided further, That this
    proviso shall not apply to printed hearings released by the House and
    Senate Committees on Appropriations or the House and Senate Committees
    on Veterans' Affairs.

                     Office of National Drug Control Policy

                              salaries and expenses

                          (including transfer of funds)

        For necessary expenses of the Office of National Drug Control
    Policy; for research activities pursuant to title I of Public Law 100-
    690; not to exceed $8,000 for official reception and representation
    expenses; and for participation in joint projects or in the provision of
    services on matters of mutual interest with nonprofit, research, or
    public organizations or agencies, with or without reimbursement;
    $35,838,000, of which $19,000,000 shall remain available until expended,
    consisting of $1,000,000 for policy research and evaluation and
    $18,000,000 for the Counter-Drug Technology Assessment Center for
    counternarcotics research and development projects of which $1,000,000
    shall be obligated for state conferences on model state drug laws:
    Provided, That the $17,000,000 for the Counter-Drug Technology
    Assessment Center shall be available for transfer to other Federal
    departments or agencies: Provided further, That the Office is authorized
    to accept, hold, administer, and utilize gifts, both real and personal,
    for the purpose of aiding

    [[Page 110 STAT. 3009-330]]

    or facilitating the work of the Office: Provided further, That not
    before January 31, 1997, the Director of the Office of National Drug
    Control Policy shall transfer all balances in the Special Forfeiture
    Fund established by section 6073 of the Anti-Drug Abuse Act of 1988 (21
    U.S.C. Sec. 1509) to the Treasury Forfeiture Fund (31 U.S.C. 9703(a)).

                          Federal Drug Control Programs

                  high intensity drug trafficking areas program

                          (including transfer of funds)

        For necessary expenses of the Office of National Drug Control
    Policy's High Intensity Drug Trafficking Areas Program, $127,102,000 for
    drug control activities consistent with the approved strategy for each
    of the designated High Intensity Drug Trafficking Areas, of which
    $3,000,000 shall be used for a newly designated High Intensity Drug
    Trafficking Area in Lake County, Indiana; of which $6,000,000 shall be
    used for a newly designated High Intensity Drug Trafficking Area for the
    Gulf Coast States of Louisiana, Alabama, and Mississippi; of which
    $8,000,000 shall be used for a newly designated High Intensity Drug
    Trafficking Area dedicated to combating methamphetamine use, production
    and trafficking in a five State area including Iowa, Missouri, Nebraska,
    South Dakota, and Kansas; of which $3,000,000 shall be used for a newly
    designated High Intensity Drug Trafficking Area in the State of
    Colorado; of which $3,000,000 shall be used for a newly designated High
    Intensity Drug Trafficking Area in the Pacific Northwest; of the total
    amount appropriated, including transferred funds, no less than
    $71,000,000 shall be transferred to State and local entities for drug
    control activities, and up to $69,207,000 may be transferred to Federal
    agencies and departments at a rate to be determined by the Director:
    Provided, That the funds made available under this head shall be
    obligated within 90 days of the date of enactment of this Act.
        This title may be cited as the ``Executive Office Appropriations
    Act, 1997''.

          TITLE IV--INDEPENDENT AGENCIES <<NOTE: Independent Agencies
    Appropriations Act, 1997.>>

      Committee for Purchase From People Who Are Blind or Severely Disabled

                              salaries and expenses

        For necessary expenses of the Committee for Purchase From People Who
    Are Blind or Severely Disabled established by the Act of June 23, 1971,
    Public Law 92-28; $1,800,000.

                           Federal Election Commission

                              salaries and expenses

        For necessary expenses to carry out the provisions of the Federal
    Election Campaign Act of 1971, as amended, $28,165,000, of which no less
    than $2,500,000 shall be available for internal automated data
    processing systems, and of which not to exceed $5,000 shall be available
    for reception and representation expenses.

    [[Page 110 STAT. 3009-331]]

                        Federal Labor Relations Authority

                              salaries and expenses

        For necessary expenses to carry out functions of the Federal Labor
    Relations Authority, pursuant to Reorganization Plan Numbered 2 of 1978,
    and the Civil Service Reform Act of 1978, including services as
    authorized by 5 U.S.C. 3109, including hire of experts and consultants,
    hire of passenger motor vehicles, rental of conference rooms in the
    District of Columbia and elsewhere; $21,588,000: Provided, That public
    members of the Federal Service Impasses Panel may be paid travel
    expenses and per diem in lieu of subsistence as authorized by law (5
    U.S.C. 5703) for persons employed intermittently in the Government
    service, and compensation as authorized by 5 U.S.C. 3109: Provided
    further, That notwithstanding 31 U.S.C. 3302, funds received from fees
    charged to non-Federal participants at labor-management relations
    conferences shall be credited to and merged with this account, to be
    available without further appropriation for the costs of carrying out
    these conferences.

                         General Services Administration

                             federal buildings fund

                     limitations on availability of revenue

                          (including transfer of funds)

        For additional expenses necessary to carry out the purpose of the
    Fund established pursuant to section
    210(f) of the Federal Property and Administrative Services Act of 1949,
    as amended (40 U.S.C. 490(f)), $400,544,000, to be deposited into said
    Fund. The revenues and collections deposited into the Fund shall be
    available for necessary expenses of real property management and related
    activities not otherwise provided for, including operation, maintenance,
    and protection of federally owned and leased buildings; rental of
    buildings in the District of Columbia; restoration of leased premises;
    moving governmental agencies (including space adjustments and
    telecommunications relocation expenses) in connection with the
    assignment, allocation and transfer of space; contractual services
    incident to cleaning or servicing buildings, and moving; repair and
    alteration of federally owned buildings including grounds, approaches
    and appurtenances; care and safeguarding of sites; maintenance,
    preservation, demolition, and equipment; acquisition of buildings and
    sites by purchase, condemnation, or as otherwise authorized by law;
    acquisition of options to purchase buildings and sites; conversion and
    extension of federally owned buildings; preliminary planning and design
    of projects by contract or otherwise; construction of new buildings
    (including equipment for such buildings); and payment of principal,
    interest, taxes, and any other obligations for public buildings acquired
    by installment purchase and purchase contract, in the aggregate amount
    of$5,555,544,000 of which (1) not to exceed $657,711,000 shall remain
    available until expended for construction of additional projects and at
    maximum construction improvement costs (including funds for sites and
    expenses and associated design and construction services) as follows:

    [[Page 110 STAT. 3009-332]]

        New Construction:
        California:
                Fresno, Federal Building and U.S. Courthouse, $6,595,000

        Colorado:
                Denver, Rogers Federal Building-U.S. Courthouse, $9,545,000

        District of Columbia:
                U.S. Courthouse Annex, $5,703,000

        Florida:
                Miami, U.S. Courthouse, $24,990,000
                Orlando, U.S. Courthouse, $9,514,000

        Kentucky:
                Covington, U.S. Courthouse, $17,134,000
                London, U.S. Courthouse, $13,732,000

        Montana:
                Babb, Piegan Border Station, $333,000
                Sweetgrass, Border Station, $1,059,000

        Nevada:
                Las Vegas, U.S. Courthouse, $83,719,000

        New York:
                Brooklyn, U.S. Courthouse, $169,000,000

        Ohio:
                Cleveland, U.S. Courthouse, $128,559,000
                Youngstown, U.S. Courthouse, $15,813,000

        Oregon:
                Portland, Consolidated Law Federal Office Building,
            $4,750,000

        Pennsylvania:
                Erie, U.S. Courthouse Annex, $3,300,000
                Philadelphia, DVA-Federal Complex, Phase II, $13,765,000

        South Carolina:
                Columbia, U.S. Courthouse Annex, $43,848,000

        Texas:
                Corpus Christi, U.S. Courthouse, $24,161,000

        Utah:
                Salt Lake City, Moss U.S. Courthouse Annex and Alteration,
            $11,474,000

        Washington:
                Blaine, U.S. Border Station, $13,978,000
                Oroville, U.S. Border Station, $1,452,000
                Seattle, U.S. Courthouse, $16,853,000
                Sumas, U.S. Border Station (Claim), $1,177,000

        Nationwide:
                Non-prospectus construction projects, $10,000,000
                Security Enhancements, $27,256,000:

    Provided, That each of the immediately foregoing limits of costs on new
    construction projects may be exceeded to the extent that savings are
    affected in other such projects, but not to exceed 10 percent unless
    advance approval is obtained from the House and Senate Committees on
    Appropriations of a greater amount: Provided further, That the cost of
    future U.S. Courthouse annex projects shall reflect savings through
    improving design efficiencies, curtailing planned interior finishes,
    requiring more efficient use of courtroom and library space, and by
    otherwise limiting space requirements: Providing further, That from
    funds available in the Federal Buildings Fund, $20,000,000 shall be
    available until expended for environmental clean up activities at the
    Southeast Federal Center

    [[Page 110 STAT. 3009-333]]

    in the District of Columbia and $81,000,000 shall be available until
    expended for design and construction activities at the Consolidated Law
    Federal Office Building in Portland, Oregon: Provied further, That from
    funds available for non-prospectus construction projects,
    $250,000 may be available until expended for the acquisition, lease,
    construction, and equipping of flexiplace work telecommuting centers in
    West Virginia: Provided further, That all funds for direct construction
    projects shall expire on September 30, 1999: (2) not to exceed
    $639,000,000 shall remain available until expended, for repairs and
    alterations which includes associated design and construction services:
    Provided further, That funds in the Federal Buildings Fund for Repairs
    and Alterations shall, for prospectus projects, be limited to the amount
    by project as follows, except each project may be increased by an amount
    not to exceed 10 per centum unless advance approval is obtained from the
    Committees on Appropriations of the House and Senate of a greater
    amount:
            Repairs and alterations:
            District of Columbia:
                Ariel Rios Building, $62,740,000
                Justice Department, Phase 1 of 3, $50,000,000
                Lafayette Building, $5,166,000
            Hawaii:
                Honolulu, Prince Jonah Kuhio Kalanianaole Federal Building
            and U.S. Courthouse, $4,140,000
            Illinois:
                Chicago, Everett M. Dirksen Federal Building, $18,844,000
                Chicago, John C. Kluczynski, Jr. Federal Building (IRS),
            $13,414,000
            Louisiana:
                New Orleans, Customhouse, $3,500,000

        Maryland:
                Montgomery County, White Oak environmental clean up
            activities, $10,000,000
            Massachusetts:
                Andover, IRS Regional Service Center, $812,000
            New Hampshire:
                Concord, J.C. Cleveland Federal Building, $8,251,000
            New Jersey:
                Camden, U.S. Post Office-Courthouse $11,096,000
            New York:
                Albany, James T. Foley Post Office-Courthouse, $3,880,000
                Brookhaven, IRS Service Center, $2,272,000
                New York, Jacob K. Javits Federal Building, $13,651,000
            Pennsylvania:
                Scranton, Federal Building-U.S. Courthouse, $10,610,000
            Rhode Island:
                Providence, Federal Building-U.S. Courthouse, $8,209,000
            Texas:
                Fort Worth, Federal Center, $11,259,000
            Nationwide:
                Chlorofluorocarbons Program, $23,456,000
                Elevator Program, $10,000,000
                Energy Program, $20,000,000
                Security Enhancements, various buildings, $2,700,000
                Basic Repairs and Alterations, $345,000,000:

    [[Page 110 STAT. 3009-334]]

    Provided further, That additional projects for which prospectuses have
    been fully approved may be funded under this category only if advance
    approval is obtained from the Committees on Appropriations of the House
    and Senate: Provided further, That the amounts provided in this or any
    prior Act for Repairs and Alterations may be used to fund costs
    associated with implementing security improvements to buildings
    necessary to meet the minimum standards for security in accordance with
    current law and in compliance with the reprogramming guidelines of the
    appropriate Committees of the House and Senate: Provided further, That
    funds in the Federal Buildings Fund for Repairs and Alterations shall,
    for prospectus projects, be limited to the originally authorized amount,
    except each project may be increased by an amount not to exceed 10
    percent when advance approval is obtained from the Committees on
    Appropriations of the House and Senate of a greater amount: Provided
    further, That the difference between the funds appropriated and expended
    on any projects in this or any prior Act, under the heading ``Repairs
    and Alterations'', may be transferred to Basic Repairs and Alterations
    or used to fund authorized increases in prospectus projects: Provided
    further, That from funds made available for Basic Repairs and
    Alterations, $8,000,000 shall be made available for renovation of the
    Agricultural Research Service Laboratory in Ames, Iowa, which is
    currently occupied by the Animal and Plant Health Inspection Service:
    Provided further, That from funds made available for Basic Repairs and
    Alterations, $1,450,000 may be available for the renovation of the
    Pioneer Courthouse located at 520 SW Morrison, in Portland, Oregon:
    Provied further, That from funds made available for Basic Repairs and
    Alterations, $6,000,000 shall be used for necessary expenses associated
    with ongoing construction of the U.S. Courthouse in Montgomery, Alabama:
    Provided further, That from funds made available for Basic Repairs and
    Alterations, $100,000 shall be transferred to the National Park Service
    ``Construction''
    appropriation for restoration and maintenance of the multi-purpose field
    at Wallenberg Place in Washington, DC: Provided further, That all funds
    for repairs and alterations prospectus projects shall expire on
    September 30, 1999, and remain in the Federal Buildings Fund except
    funds for projects as to which funds for design or other funds have been
    obligated in whole or in part prior to such date: Provided further, That
    the amount provided in this or any prior Act for Basic Repairs and
    Alterations may be used to pay claims against the Government arising
    from any projects under the heading ``Repairs and Alterations'' or used
    to fund authorized increases in prospectus projects: Provided further,
    That $5,700,000 of the funds provided under this heading in Public Law
    103-329, for the IRS Service Center, Holtsville, New York, shall be
    available until September 30, 1998; (3) not to exceed $173,075,000 for
    installment acquisition payments including payments on purchase
    contracts which shall remain available until expended: Provided further,
    That up to $1,500,000 shall be available for a design prospectus of the
    Federal Building and U.S. Courthouse located at 811 Grand Avenue in
    Kansas City, Missouri; (4) not to exceed $2,343,795,000 for rental of
    space which shall remain available until expended; and (5) not to exceed
    $1,552,651,000 for building operations which shall remain available
    until expended and of which $8,000,000 shall be transferred to the
    ``Policy and Operations'' appropriation: Provided further, That funds
    available to the General Services

    [[Page 110 STAT. 3009-335]]

    Administration shall not be available for expenses in connection with
    any construction, repair, alteration, and acquisition project for which
    a prospectus, if required by the Public Buildings Act of 1959, as
    amended, has not been approved, except that necessary funds may be
    expended for each project for required expenses in connection with the
    development of a proposed prospectus: Provided further, That the
    Administrator of General Services shall, at the earliest practicable
    date, initiate discussions with the Smithsonian Institution on the
    feasibility of transferring Federal Building 10B located at 600
    Independence Avenue SW., Washington, DC to the Smithsonian Institution
    at such price and under such terms and conditions as determined
    appropriate by the Administrator and subject to the prior approval of
    the appropriate authorizing and appropriations committees of the
    Congress: Provided further, That funds provided in this Act under the
    heading ``Security Enhancements, various buildings'' may be used, by
    project in accordance with an approved prospectus: <<NOTE: 40 USC 872
    note.>>  Provided further, That the Administrator is authorized in
    fiscal year 1997 and thereafter, to enter into and perform such leases,
    contracts, or other transactions with any agency or instrumentality of
    the United States, the several States, or the District of Columbia, or
    with any person, firm, association, or corporation, as may be necessary
    to implement the trade center plan at the Federal Triangle Project and
    is hereby granted all the rights and authorities of the former
    Pennsylvania Avenue Development Corporation (PADC) with regard to
    property transferred from the PADC to the General Services
    Administration in fiscal year 1996: Provided further, That
    notwithstanding any other provision of law, the Administrator of General
    Services is hereby authorized to use all funds transferred from the PADC
    or income earned on PADC properties for activities associated with
    carrying out the responsibilities of the PADC transferred to the
    Administrator of General Services and that any such income earned on or
    after April 1, 1996, shall be deposited to the Pennsylvania Avenue
    Activities account and shall remain available until expended: Provided
    further, That any funds or income as may be deemed by the Administrator
    as excess to the amount needed to fulfill the PADC responsibilities
    transferred to the Administrator of General Services, shall be applied
    to any outstanding debt, with the exception of debt associated with the
    Ronald Reagan Building and International Trade Center, incurred by the
    PADC in the course of acquiring real estate: Provided further, That with
    respect to real property transferred from the PADC to the General
    Services Administration pursuant to section 313 of Public Law 104-134,
    Title III, General Provisions, the Administrator of General Services is
    hereafter authorized and directed to make payments required by section
    10(b) of the PADC Act of 1972, Public Law 92-578 in the same manner as
    previously paid by the PADC: Provided further, That for the purposes of
    this authorization, buildings constructed pursuant to the purchase
    contract authority of the Public Buildings Amendments of 1972 (40 U.S.C.
    602a), buildings occupied pursuant to installment purchase contracts,
    and buildings under the control of another department or agency where
    alterations of such buildings are required in connection with the moving
    of such other department or agency from buildings then, or thereafter to
    be, under the control of the General Services Administration shall be
    considered to be federally owned buildings: Provided further, That funds
    available in the Federal Buildings Fund may

    [[Page 110 STAT. 3009-336]]

    be expended for emergency repairs when advance approval is obtained from
    the Committees on Appropriations of the House and Senate: Provided
    further, That amounts necessary to provide reimbursable special services
    to other agencies under section 210(f)(6) of the Federal Property and
    Administrative Services Act of 1949, as amended (40 U.S.C. 490(f)(6))
    and amounts to provide such reimbursable fencing, lighting, guard
    booths, and other facilities on private or other property not in
    Government ownership or control as may be appropriate to enable the
    United States Secret Service to perform its protective functions
    pursuant to 18 U.S.C. 3056, as amended, shall be available from such
    revenues and collections: Provided further, That revenues and
    collections and any other sums accruing to this Fund during fiscal year
    1997, excluding reimbursements under section 210(f)(6) of the Federal
    Property and Administrative Services Act of 1949 (40 U.S.C. 490(f)(6))
    in excess of $5,555,544,000 shall remain in the Fund and shall not be
    available for expenditure except as authorized in appropriations Acts.

                              policy and operations

        For expenses authorized by law, not otherwise provided for, for
    Government-wide policy and oversight activities associated with asset
    management activities; utilization and donation of surplus personal
    property; transportation management activities; procurement and supply
    management activities; Government-wide and internal responsibilities
    relating to automated data management, telecommunications, information
    resources management, and related technology activities; utilization
    survey, deed compliance inspection, appraisal, environmental and
    cultural analysis, and land use planning functions pertaining to excess
    and surplus real property; agency-wide policy direction; Board of
    Contract Appeals; accounting, records management, and other support
    services incident to adjudication of Indian Tribal Claims by the United
    States Court of Federal Claims; services as authorized by 5 U.S.C. 3109;
    and not to exceed $5,000 for official reception and representation
    expenses; $110,173,000.

                           office of inspector general

        For necessary expenses of the Office of Inspector General and
    services authorized by 5 U.S.C. 3109, $33,863,000: Provided, That not to
    exceed $5,000 shall be available for payment for information and
    detection of fraud against the Government, including payment for
    recovery of stolen Government property: Provided further, That not to
    exceed $2,500 shall be available for awards to employees of other
    Federal agencies and private citizens in recognition of efforts and
    initiatives resulting in enhanced Office of Inspector General
    effectiveness.

                allowances and office staff for former presidents

        For carrying out the provisions of the Act of August 25, 1958, as
    amended (3 U.S.C. 102 note), and Public Law 95-138, $2,180,000:
    Provided, That the Administrator of General Services shall transfer to
    the Secretary of the Treasury such sums as may be necessary to carry out
    the provisions of such Acts.

    [[Page 110 STAT. 3009-337]]

                        expenses, presidential transition

        For expenses necessary to carry out the Presidential Transition Act
    of 1963, as amended (3 U.S.C. 102 note), $5,600,000.

               general provisions--general services administration

        Section 401. The appropriate appropriation or fund available to the
    General Services Administration shall be credited with the cost of
    operation, protection, maintenance, upkeep, repair, and improvement,
    included as part of rentals received from Government corporations
    pursuant to law (40 U.S.C. 129).
        Sec. 402. Funds available to the General Services Administration
    shall be available for the hire of passenger motor vehicles.
        Sec. 403. Funds in the Federal Buildings Fund made available for
    fiscal year 1997 for Federal Buildings Fund activities may be
    transferred between such activities only to the extent necessary to meet
    program requirements: Provided, That any proposed transfers shall be
    approved in advance by the Committees on Appropriations of the House and
    Senate.
        Sec. 404. No funds made available by this Act shall be used to
    transmit a fiscal year 1998 request for United States Courthouse
    construction that does not meet the design guide standards for
    construction as established by the General Services Administration, the
    Judicial Conference of the United States, and the Office of Management
    and Budget and does not reflect the priorities of the Judicial
    Conference of the United States as set out in its approved 5-year
    construction plan: Provided, That the request must be accompanied by a
    standardized courtroom utilization study of each facility to be replaced
    or expanded.
        Sec. 405. None of the funds provided in this Act may be used to
    increase the amount of occupiable square feet, provide cleaning
    services, security enhancements, or any other service usually provided
    through the Federal Buildings Fund, to any agency which does not pay the
    requested rate per square foot assessment for space and services as
    determined by the General Services Administration in compliance with the
    Public Buildings Amendments Act of 1972 (Public Law 92-313).
        Sec. 406. The Administrator of the General Services is directed to
    ensure that the materials used for the fascade on the United States
    Courthouse Annex, Savannah, Georgia project are compatible with the
    existing Savannah Federal Building-U.S. Courthouse fascade, in order to
    ensure compatibility of this new facility with the Savannah historic
    district and to ensure that the Annex will not endanger the National
    Landmark status of the Savannah historic district.
        Sec. 407. (a) Section 210 of the Federal Property and Administrative
    Services Act of 1949 (40 U.S.C. 490) is amended by adding at the end the
    following new subsection:
        ``(l)(1) The Administrator may establish, acquire space for, and
    equip flexiplace work telecommuting centers (in this subsection referred
    to as `telecommuting centers') for use by employees of Federal agencies,
    State and local governments, and the private sector in accordance with
    this subsection.
        ``(2) The Administrator may make any telecommuting center available
    for use by individuals who are not Federal employees to the extent the
    center is not being fully utilized by Federal

    [[Page 110 STAT. 3009-338]]

    employees. The Administrator shall give Federal employees priority in
    using the telecommuting centers.
        ``(3)(A) The Administrator shall charge user fees for the use of any
    telecommuting center. The amount of the user fee shall approximate
    commercial charges for comparable space and services except that in no
    instance shall such fee be less than that necessary to pay the cost of
    establishing and operating the center, including the reasonable cost of
    renovation and replacement of furniture, fixtures, and equipment.

        ``(B) Amounts received by the Administrator after September 30,
    1993, as user fees for use of any telecommuting center may be deposited
    into the Fund established under subsection (f) of this section and may
    be used by the Administrator to pay costs incurred in the establishment
    and operation of the center.
        ``(4) The Administrator may provide guidance, assistance, and
    oversight to any person regarding establishment and operation of
    alternative workplace arrangements, such as telecommuting, hoteling,
    virtual offices, and other distributive work arrangements.
        ``(5) In considering whether to acquire any space, quarters,
    buildings, or other facilities for use by employees of any executive
    agency, the head of that agency shall consider whether the need for the
    facilities can be met using alternative workplace arrangements referred
    to in paragraph (4).''.
        (b) Section 13 of the Public Building Act of 1959, as amended, (107
    Stat. 438; 40 U.S.C. 612) is amended--
                (1) by striking ``(xi)'' and inserting in lieu thereof
            ``(xii)''; and
                (2) by striking ``and (x)'' and inserting in lieu thereof
            ``(x) telecommuting centers and (xi)''.

        Sec. 408. Notwithstanding any other provision of law, the
    Administrator of General Services is authorized and directed to acquire
    the land bounded by S.W. First Avenue, S.W. Second Avenue, S.W. Main
    Street, and S.W. Madison Street, Portland, Oregon, for the purposes of
    constructing the proposed Law Enforcement Center on the site.
        Sec. 409. Section 2815 of Public Law 103-160, relating to the
    conveyance of real property at the Iowa Army Ammunition Plant, is
    amended--
                (1) in subsection (a), by striking ``may convey to'' and
            inserting ``shall convey, without reimbursement and if requested
            by,''; and
                (2) by striking subsection (b) and inserting the following
            new subsection:

        ``(b) Use of Water and Sewer Lines.--As part of the conveyance under
    subsection (a), the Secretary shall permit the City to use existing
    water and sewer lines and sewage system at the Iowa Army Ammunition
    Plant for a three-year period beginning on the date of the
    conveyance.''.
        Sec. 410. (a) Conveyance of Land.--
                (1) Administrator of general services.--Subject to
            subsections (b) and (c), the Administrator of General Services
            (hereinafter in this section referred to as the
            ``Administrator'') shall convey, without compensation, to a
            nonprofit organization known as the ``Beaver County Corporation
            for Economic Development'' all right, title, and interest of the
            United States in and to those pieces or parcels of land in
            Hopewell Township, Pennsylvania, described in subsection (b),
            together with all

    [[Page 110 STAT. 3009-339]]

            improvements thereon and appurtenances thereto. The purpose of
            the conveyance is to provide a site for economic development in
            Hopewell Township.
                (2) Property description.--The land referred to in paragraph
            (1) is the parcel of land in the township of Hopewell, county of
            Beaver, Pennsylvania, bounded and described as follows:
                        (A) Beginning at the southwest corner at a point
                    common to Lot No. 1, same plan, lands now or formerly of
                    Frank and Catherine Wutter, and the easterly right-of-
                    way line of Pennsylvania Legislative Route No. 60
                    (Beaver Valley Expressway); thence proceeding by the
                    easterly right-of-way of Pennsylvania Legislative Route
                    No. 60 by the following three courses and distances:
                              (i) North 17 degrees, 14 minutes, 20 seconds
                          West, 213.10 feet to a point.
                              (ii) North 72 degrees, 45 minutes, 40 seconds
                          East, 30.00 feet to a point.
                              (iii) North 17 degrees, 14 minutes, 20 seconds
                          West, 252.91 feet to a point; on a line dividing
                          Lot No. 1 from the other part of Lot No. 1, said
                          part now called Lot No. 5, same plan; thence by
                          last mentioned dividing line, North 78 degrees, 00
                          minutes, 00 seconds East; 135.58 feet to a point,
                          a cul-de-sac on Industrial Drive; thence by said
                          cul-de-sac and the southerly side of Industrial
                          Drive by the following courses and distances:
                                        (I) By a curve to the right having a
                                    radius of 100.00 feet for an arc
                                    distance of 243.401 feet to a point.
                                        (II) Thence by a curve to the right
                                    having a radius of 100.00 feet for an
                                    arc distance of 86.321 feet to a point.
                                        (III) Thence by 78 degrees, 00
                                    minutes, 00 seconds East, 777.78 feet to
                                    a point.
                                        (IV) Thence, North 12 degrees, 00
                                    minutes, 00 seconds West, 74.71 feet to
                                    a point.
                                        (V) Thence by a curve to the right,
                                    having a radius of 50.00 feet for an arc
                                    distance of 78.54 feet to a point.
                                        (VI) Thence North 78 degrees, 00
                                    minutes, 00 seconds East, 81.24 feet to
                                    a point.
                                        (VII) Thence by a curve to the
                                    right, having a radius of 415.00 feet
                                    for an arc distance of 140.64 feet to a
                                    point.
                                        (VIII) Thence, South 82 degrees, 35
                                    minutes, 01 second East, 125.00 feet to
                                    a point.
                                        (IX) Thence, South 7 degrees, 24
                                    minutes, 59 seconds West, 5.00 feet to a
                                    point.
                                        (X) Thence by a curve to the right,
                                    having a radius of 320.00 feet for an
                                    arc distance of 256.85 feet to a point.
                                        (XI) Thence by a curve to the right
                                    having a radius of 50.00 feet for an arc
                                    distance of 44.18 feet to a point on the
                                    northerly side of Airport Road.

    [[Page 110 STAT. 3009-340]]

                        (B) Thence by the northerly side thereof by the
                    following:
                              (i) South 14 degrees, 01 minutes, 54 seconds,
                          West, 56.94 feet to a point.
                              (ii) Thence by a curve to the right having a
                          radius of 225.00 feet for an arc distance of
                          207.989 feet to a point.
                              (iii) Thence South 66 degrees, 59 minutes, 45
                          seconds West, 192.08 feet to a point on the
                          southern boundary of Lot No. 1, which line is also
                          the line dividing Lot No. 1 from lands now or
                          formerly, of Frank and Catherine Wutter.
                        (C) Thence by the same, South 75 degrees, 01
                    minutes, 00 seconds West, 1,351.23 feet to a point at
                    the place of beginning.
                (3) Date of conveyance.--The date of the conveyance of
            property required under paragraph (1) shall be not later than
            the 90th day following the date of the enactment of this Act.
                (4) Conveyance terms.--
                        (A) Terms and conditions.--The conveyance of
                    property required under paragraph (1) shall be subject
                    to such terms and conditions as may be determined by the
                    Administrator to be necessary to safeguard the interests
                    of the United States. Such terms and conditions shall be
                    consistent with the terms and conditions set forth in
                    this section.
                        (B) Quitclaim deed.--The conveyance of property
                    required under paragraph (1) shall be by quitclaim deed.

        (b) Limitation on Conveyance.--No part of any land conveyed under
    subsection (a) may be used, during the 30-year period beginning on the
    date of conveyance for any purpose other than economic development.
        (c) Reversionary Interest.--
                (1) In general.--The property conveyed under subsection (a)
            shall revert to the United States on any date in the 30-year
            period beginning on the date of such conveyance on which the
            property is used for a purpose other than economic development.
                (2) Enforcing reversion.--The Administrator shall perform
            all acts necessary to enforce any reversion of property to the
            United States under this subsection.
                (3) Inventory of public buildings service.--Property that
            reverts to the United States under this subsection shall be
            under the control of the General Services Administration.

        Sec. 411. Notwithstanding any other provision of law, the land
    contained in block 111 in the Federal District, Denver, Colorado,
    obtained pursuant to paragraphs (6) and (7) of section 12 of Public Law
    94-204 (43 U.S.C. 1611 note) shall not be subject to condemnation by any
    agency or instrumentality of the Federal Government, without the consent
    of the owner of that land.

               John F. Kennedy Assassination Records Review Board

        For necessary expenses to carry out the John F. Kennedy
    Assassination Records Collection Act of 1992, $2,150,000.

    [[Page 110 STAT. 3009-341]]

                         Merit Systems Protection Board

                              salaries and expenses

                          (including transfer of funds)

        For necessary expenses to carry out functions of the Merit Systems
    Protection Board pursuant to Reorganization Plan Numbered 2 of 1978 and
    the Civil Service Reform Act of 1978, including services as authorized
    by 5 U.S.C. 3109, rental of conference rooms in the District of Columbia
    and elsewhere, hire of passenger motor vehicles, and direct procurement
    of survey printing, $23,923,000, together with not to exceed $2,430,000
    for administrative expenses to adjudicate retirement appeals to be
    transferred from the Civil Service Retirement and Disability Fund in
    amounts determined by the Merit Systems Protection Board.

                  National Archives and Records Administration

                               operating expenses

        For necessary expenses in connection with the administration of the
    National Archives (including the Information Security Oversight Office)
    and records and related activities, as provided by law, and for expenses
    necessary for the review and declassification of documents, and for the
    hire of passenger motor vehicles, $196,963,000: Provided, That the
    Archivist of the United States is authorized to use any excess funds
    available from the amount borrowed for construction of the National
    Archives facility, for expenses necessary to move into the facility.

                 archives facilities and presidential libraries

                             repairs and restoration

        For the repair, alteration, and improvement of archives facilities
    and presidential libraries, and to provide
    adequate storage for holdings, $16,229,000 to remain available until
    expended.

             national historical publications and records commission

                                 grants program

        For necessary expenses for allocations and grants for historical
    publications and records as authorized by 44 U.S.C. 2504, as amended,
    $5,000,000 to remain available until expended.

                           Office of Government Ethics

                              salaries and expenses

        For necessary expenses to carry out functions of the Office of
    Government Ethics pursuant to the Ethics in Government Act of 1978, as
    amended by Public Law 100-598, and the Ethics Reform Act of 1989, Public
    Law 101-194, including services as authorized by 5 U.S.C. 3109, rental
    of conference rooms in the District of Columbia and elsewhere, hire of
    passenger motor vehicles, and not to exceed $1,500 for official
    reception and representation expenses; $8,078,000.

    [[Page 110 STAT. 3009-342]]

                         Office of Personnel Management

                              salaries and expenses

                       (including transfer of trust funds)

        For necessary expenses to carry out functions of the Office of
    Personnel Management pursuant to Reorganization Plan Numbered 2 of 1978
    and the Civil Service Reform Act of 1978, including services as
    authorized by 5 U.S.C. 3109; medical examinations performed for veterans
    by private physicians on a fee basis; rental of conference rooms in the
    District of Columbia and elsewhere; hire of passenger motor vehicles;
    not to exceed $2,500 for official reception and representation expenses;
    advances for reimbursements to applicable funds of the Office of
    Personnel Management and the Federal Bureau of Investigation for
    expenses incurred under Executive Order 10422 of January 9, 1953, as
    amended; and payment of per diem and/or subsistence allowances to
    employees where Voting Rights Act activities require an employee to
    remain overnight at his or her post of duty; $87,076,000, of which not
    to exceed $1,000,000 shall be available for the establishment of health
    promotion and disease prevention programs for Federal employees; and in
    addition $94,736,000 for administrative expenses, to be transferred from
    the appropriate trust funds of the Office of Personnel Management
    without regard to other statutes, including direct procurement of
    printing materials for annuitants,  for the retirement and insurance
    programs, of which $3,500,000 shall be transferred at such times as the
    Office of Personnel Management deems appropriate, and shall remain
    available until expended for the costs of automating the retirement
    recordkeeping systems, together with remaining amounts authorized in
    previous Acts for the recordkeeping systems: Provided, That the
    provisions of this appropriation shall not affect the authority to use
    applicable trust funds as provided by section 8348(a)(1)(B) of title 5,
    United States Code: Provided further, That, except as may be consistent
    with 5 U.S.C. 8902a(f)(1) and (i), no payment may be made from the
    Employees Health Benefits Fund to any physician, hospital, or other
    provider of health care services or supplies who is, at the time such
    services or supplies are provided to an individual covered under chapter
    89 of title 5, United States Code, excluded, pursuant to section 1128 or
    1128A of the Social Security Act (42 U.S.C. 1320a-7-1320a-7a), from
    participation in any program under title XVIII of the Social Security
    Act (42 U.S.C. 1395 et seq.): Provided further, That no part of this
    appropriation shall be available for salaries and expenses of the Legal
    Examining Unit of the Office of Personnel Management established
    pursuant to Executive Order 9358 of July 1, 1943, or any successor unit
    of like purpose: Provided further, That the President's Commission on
    White House Fellows, established by Executive Order 11183 of October 3,
    1964, may, during the fiscal year ending September 30, 1997, accept
    donations of money, property, and personal services in connection with
    the development of a publicity brochure to provide information about the
    White House Fellows, except that no such donations shall be accepted for
    travel or reimbursement of travel expenses, or for the salaries of
    employees of such Commission.

    [[Page 110 STAT. 3009-343]]

               general provisions--office of personnel management

        Sec. 421. The first sentence of section 1304(e)(1) of title 5,
    United States Code, is amended by inserting after ``basis'' the
    following ``, including personnel management services performed at the
    request of individual agencies (which would otherwise be the
    responsibility of such agencies), or at the request of nonappropriated
    fund instrumentalities''.
        Sec. 422. Paragraph (1) of section 8906(e) of title 5, United States
    Code, is amended--
                (1) by striking the last sentence of that paragraph and
            redesignating the remainder of that paragraph as (1)(A);
                (2) by adding at the end of paragraph (1)(A) (as so
            designated) the following:
                ``(B) During each pay period in which an enrollment
            continues under subparagraph (A)--
                        ``(i) employee and Government contributions required
                    by this section shall be paid on a current basis; and
                        ``(ii) if necessary, the head of the employing
                    agency shall approve advance payment, recoverable in the
                    same manner as under section 5524a(c), of a portion of
                    basic pay sufficient to pay current employee
                    contributions.
                ``(C) Each agency shall establish procedures for accepting
            direct payments of employee contributions for the purposes of
            this paragraph.''.

                           office of inspector general

                              salaries and expenses

                       (including transfer of trust funds)

        For necessary expenses of the Office of Inspector General in
    carrying out the provisions of the Inspector General Act, as amended,
    including services as authorized by 5 U.S.C. 3109, hire of passenger
    motor vehicles, $960,000; and in addition, not to exceed $8,645,000 for
    administrative expenses to audit the Office of Personnel Management's
    retirement and insurance programs, to be transferred from the
    appropriate trust funds of the Office of Personnel Management, as
    determined by the Inspector General: Provided, That the Inspector
    General is authorized to rent conference rooms in the District of
    Columbia and elsewhere.

          government payment for annuitants, employees health benefits

        For payment of Government contributions with respect to retired
    employees, as authorized by chapter 89 of title 5, United States Code,
    and the Retired Federal Employees Health Benefits Act (74 Stat. 849), as
    amended, such sums as may be necessary.

           government payment for annuitants, employee life insurance

        For payment of Government contributions with respect to employees
    retiring after December 31, 1989, as required by chapter 87 of title 5,
    United States Code, such sums as may be necessary.

    [[Page 110 STAT. 3009-344]]

             payment to civil service retirement and disability fund

        For financing the unfunded liability of new and increased annuity
    benefits becoming effective on or after October 20, 1969, as authorized
    by 5 U.S.C. 8348, and annuities under special Acts to be credited to the
    Civil Service Retirement and Disability Fund, such sums as may be
    necessary: <<NOTE: 33 USC 776.>>  Provided, That annuities authorized by
    the Act of May 29, 1944, as amended, and the Act of August 19, 1950, as
    amended (33 U.S.C. 771-75), may hereafter be paid out of the Civil
    Service Retirement and Disability Fund.

                            Office of Special Counsel

                              salaries and expenses

        For necessary expenses to carry out functions of the Office of
    Special Counsel pursuant to Reorganization Plan Numbered 2 of 1978, the
    Civil Service Reform Act of 1978 (Public Law 95-454), the Whistleblower
    Protection Act of 1989 (Public Law 101-12), Public Law 103-424, and the
    Uniformed Services Employment and Reemployment Act of 1994 (Public Law
    103-353), including services as authorized by 5 U.S.C. 3109, payment of
    fees and expenses for witnesses, rental of conference rooms in the
    District of Columbia and elsewhere, and hire of passenger motor
    vehicles; $8,116,000.

                             United States Tax Court

                              salaries and expenses

        For necessary expenses, including contract reporting and other
    services as authorized by 5 U.S.C. 3109, $33,781,000: Provided,
    That <<NOTE: 26 USC 7443 note.>>  travel expenses of the judges shall be
    paid upon the written certificate of the judge.

        This title may be cited as the ``Independent Agencies Appropriations
    Act, 1997''.

                           TITLE V--GENERAL PROVISIONS

                                    This Act

        Section 501. No part of any appropriation contained in this Act
    shall remain available for obligation beyond the current fiscal year
    unless expressly so provided herein.
        Sec. 502. The expenditure of any appropriation under this Act for
    any consulting service through procurement contract, pursuant to 5
    U.S.C. 3109, shall be limited to those contracts where such expenditures
    are a matter of public record and available for public inspection,
    except where otherwise provided under existing law, or under existing
    Executive order issued pursuant to existing law.
        Sec. 503. Section 5131 of title 31, United States Code, is amended--
                (1) by striking subsection (c); and
                (2) by redesignating subsection (d) as subsection (c).

        Sec. 504. None of the funds made available by this Act shall be
    available for any activity or for paying the salary of any Government
    employee where funding an activity or paying a salary to

    [[Page 110 STAT. 3009-345]]

    a Government employee would result in a decision, determination, rule,
    regulation, or policy that would prohibit the enforcement of section 307
    of the Tariff Act of 1930.
        Sec. 505. None of the funds made available by this Act shall be
    available for the purpose of transferring control over the Federal Law
    Enforcement Training Center
    located at Glynco, Georgia, and Artesia, New Mexico, out of the Treasury
    Department.

        Sec. 506. No part of any appropriation contained in this Act shall
    be used for publicity or propaganda purposes within the United States
    not heretofore authorized by the Congress.
        Sec. 507. No part of any appropriation contained in this Act shall
    be available for the payment of the salary of any officer or employee of
    the United States Postal Service, who--
                (1) prohibits or prevents, or attempts or threatens to
            prohibit or prevent, any officer or employee of the United
            States Postal Service from having any direct oral or written
            communication or contact with any Member or committee of
            Congress in connection with any matter pertaining to the
            employment of such officer or employee or pertaining to the
            United States Postal Service in any way, irrespective of whether
            such communication or contact is at the initiative of such
            officer or employee or in response to the request or inquiry of
            such Member or committee; or
                (2) removes, suspends from duty without pay, demotes,
            reduces in rank, seniority, status, pay, or performance of
            efficiency rating, denies promotion to, relocates, reassigns,
            transfers, disciplines, or discriminates in regard to any
            employment right, entitlement, or benefit, or any term or
            condition of employment of, any officer or employee of the
            United States Postal Service, or attempts or threatens to commit
            any of the foregoing actions with respect to such officer or
            employee, by reason of any communication or contact of such
            officer or employee with any Member or committee of Congress as
            described in paragraph (1).

        Sec. 508. The Office of Personnel Management may, during the fiscal
    year ending September 30, 1997, accept donations of supplies, services,
    land, and equipment for the Federal Executive Institute and Management
    Development Centers to assist in enhancing the quality of Federal
    management.
        Sec. 509. <<NOTE: 18 USC 3056 note.>>  The United States Secret
    Service may, during the fiscal year ending September 30, 1997, and
    hereafter, accept donations of money to off-set costs incurred while
    protecting former Presidents and spouses of former Presidents when the
    former President or spouse travels for the purpose of making an
    appearance or speech for a payment of money or any thing of value.

        Sec. 510. No part of any appropriation contained in this Act shall
    be available to pay the salary for any person filling a position, other
    than a temporary position, formerly held by an employee who has left to
    enter the Armed Forces of the United States and has satisfactorily
    completed his period of active military or naval service and has within
    90 days after his release from such service or from hospitalization
    continuing after discharge for a period of not more than 1 year made
    application for restoration to his former position and has been
    certified by the Office of Personnel Management as still qualified to
    perform the duties of his former position and has not been restored
    thereto.

    [[Page 110 STAT. 3009-346]]

        Sec. 511. None of the funds made available in this Act may be used
    to provide any non-public information such as mailing or telephone lists
    to any person or any organization outside of the Federal Government
    without the approval of the House and Senate Committees on
    Appropriations.
        Sec. 512. No funds appropriated pursuant to this Act may be expended
    by an entity unless the entity agrees that in expending the assistance
    the entity will comply with sections 2 through 4 of the Act of March 3,
    1933 (41 U.S.C. 10a-10c, popularly known as the ``Buy American Act'').
        Sec. 513. (a) Purchase of American-Made Equipment and Products.--In
    the case of any equipment or products that may be authorized to be
    purchased with financial assistance provided under this Act, it is the
    sense of the Congress that entities receiving such assistance should, in
    expending the assistance, purchase only American-made equipment and
    products.
        (b) Notice to Recipients of Assistance.--In providing financial
    assistance under this Act, the Secretary of the Treasury shall provide
    to each recipient of the assistance a notice describing the statement
    made in subsection (a) by the Congress.
        Sec. 514. If it has been finally determined by a court or Federal
    agency that any person intentionally affixed a label bearing a ``Made in
    America'' inscription, or any inscription with the same meaning, to any
    product sold in or shipped to the United States that is not made in the
    United States, such person shall be ineligible to receive any contract
    or subcontract made with funds provided pursuant to this Act, pursuant
    to the debarment, suspension, and ineligibility procedures described in
    sections 9.400 through 9.409 of title 48, Code of Federal Regulations.
        Sec. 515. Except as otherwise specifically provided by law, not to
    exceed 50 percent of unobligated balances remaining available at the end
    of fiscal year 1997 from appropriations made available for salaries and
    expenses for fiscal year 1997 in this Act, shall remain available
    through September 30, 1998, for each such account for the purposes
    authorized: Provided, That a request shall be submitted to the House and
    Senate Committees on Appropriations for approval prior to the
    expenditure of such funds.
        Sec. 516. Where appropriations in this Act are expendable for travel
    expenses of employees and no specific limitation has been placed
    thereon, the expenditures for such travel expenses may not exceed the
    amount set forth in the budget estimates submitted for appropriations
    without the advance approval of the House and Senate Committees on
    Appropriations: Provided, That this section shall not apply to travel
    performed by uncompensated officials of local boards and appeal boards
    in the Selective Service System; to travel performed directly in
    connection with care and treatment of medical beneficiaries of the
    Department of Veterans Affairs; to travel of the Office of Personnel
    Management in carrying out its observation responsibilities of the
    Voting Rights Act; or to payments to interagency motor pools separately
    set forth in the budget schedules: Provided further, That this provision
    does not apply to accounts that do not contain an object identification
    for travel.
        Sec. 517. <<NOTE: 31 USC 5141 note.>>  Notwithstanding any other
    provision of law or regulation during the fiscal year ending September
    30, 1997, and thereafter:

    [[Page 110 STAT. 3009-347]]

                (1) The authority of the special police officers of the
            Bureau of Engraving and Printing, in the Washington, DC
            Metropolitan area, extends to buildings and land under the
            custody and control of the Bureau; to buildings and land
            acquired by or for the Bureau through lease, unless otherwise
            provided by the acquisition agency; to the streets, sidewalks
            and open areas immediately adjacent to the Bureau along
            Wallenberg Place (15th Street) and 14th Street between
            Independence and Maine Avenues and C and D Streets between 12th
            and 14th Streets; to areas which include surrounding parking
            facilities used by Bureau employees, including the lots at 12th
            and C Streets, SW, Maine Avenue and Water Streets, SW, Maiden
            Lane, the Tidal Basin and East Potomac Park; to the protection
            in transit of United States securities, plates and dies used in
            the production of United States securities, or other products or
            implements of the Bureau of Engraving and Printing which the
            Director of that agency so designates.
                (2) The authority of the special police officers of the
            United States Mint extends to the buildings and land under the
            custody and control of the Mint; to the streets, sidewalks and
            open areas in the vicinity to such facilities; to surrounding
            parking facilities used by Mint employees; and to the protection
            in transit of bullion, coins, dies, and other property and
            assets of, or in the custody of, the Mint.
                (3) The exercise of police authority by Bureau or Mint
            officers, with the exception of the exercise of authority upon
            property under the custody and control of the Bureau or the
            Mint, respectively, shall be deemed supplementary to the Federal
            police force with primary jurisdictional responsibility. This
            authority shall be in addition to any other law enforcement
            authority which has been provided to these officers under other
            provisions of law or regulations.

        Sec. 518. No funds appropriated by this Act shall be available to
    pay for an abortion, or the administrative expenses in connection with
    any health plan under the Federal employees health benefit program which
    provides any benefits or coverage for abortions.
        Sec. 519. The provision of section 518 shall not apply where the
    life of the mother would be endangered if the fetus were carried to
    term, or the pregnancy is the result of an act of rape or incest.
        Sec. 520. No part of any appropriation made available in this Act
    shall be used to implement Bureau of Alcohol, Tobacco and Firearms
    Ruling TD ATF-360; Re: Notice Nos. 782, 780, 91F009P.
        Sec. 521. Notwithstanding title 5, United States Code, Personal
    Service Contractors (PSC) employed by the Department of the Treasury
    shall be considered as Federal Government employees for purposes of
    making available Federal employee health and life insurance.
          Sec. 522. Section 5131 of title 31, United States Code, is amended
    by striking subsection (c); and by redesignating subsection (d) as
    subsection (c).

        Sec. 523. Section 5112(i)(4) of title 31, United States Code, is
    amended by adding at the end the following new subparagraph:
        ``(C) The Secretary may continue to mint and issue coins in
    accordance with the specifications contained in paragraphs (7), (8),
    (9), and (10) of subsection (a) and paragraph (1)(A) of this subsection
    at the same time the Secretary in minting and issuing other bullion and
    proof gold coins under this subsection in accordance with such

    [[Page 110 STAT. 3009-348]]

    program procedures and coin specifications, designs, varieties,
    quantities, denominations, and inscriptions as the Secretary, in the
    Secretary's discretion, may prescribe from time to time.'': Provided,
    That profits <<NOTE: 31 USC 5112 note.>>  generated from the sale of
    gold to the United States Mint for this program shall be considered as a
    receipt to be deposited into the General Fund of the Treasury.

        Sec. 524. Section 5112 of title 31, United States Code, is amended
    by adding at the end the following new subsection:
        ``(k) The Secretary may mint and issue bullion and proof platinum
    coins in accordance with such specifications, designs, varieties,
    quantities, denominations, and inscriptions as the Secretary, in the
    Secretary's discretion, may prescribe from time to time.'': Provided,
    That the Secretary <<NOTE: 31 USC 5112 note.>>  is authorized to use
    Government platinum reserves stockpiled at the United States Mint as
    working inventory and shall ensure that reserves utilized are replaced
    by the Mint.

        Sec. 526. (a) Reimbursement of Certain Attorney Fees and Costs.--
                (1) In general.--The Secretary of the Treasury shall pay
            from amounts appropriated in title I of this Act under the
            heading, ``Departmental Offices, Salaries and Expenses'', up to
            $500,000 to reimburse former employees of the White House Travel
            Office whose employment in that Office was terminated on May 19,
            1993, for any attorney fees and costs they incurred with respect
            to that termination.
                (2) Verification required.--The Secretary shall pay an
            individual in full under paragraph (1) upon submission by the
            individual of documentation verifying the attorney fees and
            costs.
                (3) No inference of liability.--Liability of the United
            States shall not be inferred from enactment of or payment under
            this subsection.

        (b) Limitation on Filing of Claims.--The Secretary of the Treasury
    shall not pay any claim filed under this section that is filed later
    than 120 days after the date of the enactment of this Act.
        (c) Limitation.--Payments under subsection (a) shall not include
    attorney fees or costs incurred with respect to any Congressional
    hearing or investigation into the termination of employment of the
    former employees of the White House Travel Office.
        (d) Reduction.--The amount paid pursuant to this section to an
    individual for attorney fees and costs described in subsection (a) shall
    be reduced by any amount received before the date of the enactment of
    this Act, without obligation for repayment by the individual, for
    payment of such attorney fees and costs (including any amount received
    from the funds appropriated for the individual in the matter relating to
    the ``Office of the General Counsel'' under the heading ``Office of the
    Secretary'' in title I of the Department of Transportation and Related
    Agencies Appropriations Act, 1994).
        (e) Payment in Full Settlement of Claims Against the United
    States.--Payment under this section, when accepted by an individual
    described in subsection (a), shall be in full satisfaction of all claims
    of, or on behalf of, the individual against the United States that arose
    out of the termination of the White House Travel Office employment of
    that individual on May 19, 1993.
        Sec. 527. None of the funds made available in this Act may be used
    by the Executive Office of the President to request from

    [[Page 110 STAT. 3009-349]]

    the Federal Bureau of Investigation any official background
    investigation report on any individual, except when it is made known to
    the Federal official having authority to obligate or expend such funds
    that--
                (1) such individual has given his or her express written
            consent for such request not more than 6 months prior to the
            date of such request and during the same presidential
            administration; or
                (2) such request is required due to extraordinary
            circumstances involving national security.

        Sec. 528. (a) Closing of Alley.--The alley bisecting the property on
    which a facility is being constructed for use by the United States
    Government at 930 H Street, N.W., Washington, District of Columbia, is
    closed to the public, without regard to any contingencies.
        (b) Jurisdiction.--The Administrator of General Services shall have
    administrative jurisdiction over, and shall hold title on behalf of the
    United States in, the alley, property, and facility referred to in
    subsection (a).
        Sec. 529. (a) Commemorative Coin Program Restrictions.--Section 5112
    of title 31, United States Code, as amended by sections 524 and 530 of
    this Act, is amended by adding at the end the following new subsection:
        ``(m) Commemorative Coin Program Restrictions.--
                ``(1) Maximum number.--Beginning January 1, 1999, the
            Secretary may mint and issue commemorative coins under this
            section during any calendar year with respect to not more than 2
            commemorative coin programs.
                ``(2) Mintage levels.--
                        ``(A) In general.--Except as provided in
                    subparagraph (B), in carrying out any commemorative coin
                    program, the Secretary shall mint--
                              ``(i) not more than 750,000 clad half-dollar
                          coins;
                              ``(ii) not more than 500,000 silver one-dollar
                          coins; and
                              ``(iii) not more than 100,000 gold five-dollar
                          or ten-dollar coins.
                        ``(B) Exception.--If the Secretary determines, based
                    on independent, market-based research conducted by a
                    designated recipient organization of a commemorative
                    coin program, that the mintage levels described in
                    subparagraph (A) are not adequate to meet public demand
                    for that commemorative coin, the Secretary may waive one
                    or more of the requirements of subparagraph (A) with
                    respect to that commemorative coin program.
                        ``(C) Designated recipient organization defined.--
                    For purposes of this paragraph, the term `designated
                    recipient organization' means any organization
                    designated, under any provision of law, as the recipient
                    of any surcharge imposed on the sale of any numismatic
                    item.''.

        (b) Recovery of Mint Expenses Required Before Payment of Surcharges
    to any Recipient Organization.--
                (1) Clarification of law relating to deposit of surcharges
            in the numismatic public enterprise fund.--Section 5134(c)(2) of
            title 31, United States Code, is amended by inserting ``,
            including amounts attributable to any surcharge

    [[Page 110 STAT. 3009-350]]

            imposed with respect to the sale of any numismatic item'' before
            the period.
                (2) Conditions on payment of surcharges to recipient
            organizations.--Section 5134 of title 31, United States Code, is
            amended by adding at the end the following new subsection:

        ``(f) Conditions on Payment of Surcharges to Recipient
    Organizations.--
                ``(1) Payment of surcharges.--Notwithstanding any other
            provision of law, no amount derived from the proceeds of any
            surcharge imposed on the sale of any numismatic item shall be
            paid from the fund to any designated recipient organization
            unless--
                        ``(A) all numismatic operation and program costs
                    allocable to the program under which such numismatic
                    item is produced and sold have been recovered; and
                        ``(B) the designated recipient organization submits
                    an audited financial statement that demonstrates to the
                    satisfaction of the Secretary of the Treasury that, with
                    respect to all projects or purposes for which the
                    proceeds of such surcharge may be used, the organization
                    has raised funds from private sources for such projects
                    and purposes in an amount that is equal to or greater
                    than the maximum amount the organization may receive
                    from the proceeds of such surcharge.
                ``(2) Annual audits.--
                        ``(A) Annual audits of recipients required.--Each
                    designated recipient organization that receives any
                    payment from the fund of any amount derived from the
                    proceeds of any surcharge imposed on the sale of any
                    numismatic item shall provide, as a condition for
                    receiving any such amount, for an annual audit, in
                    accordance with generally accepted government auditing
                    standards by an independent public accountant selected
                    by the organization, of all such payments to the
                    organization beginning in the first fiscal year of the
                    organization in which any such amount is received and
                    continuing until all amounts received by such
                    organization from the fund with respect to such
                    surcharges are fully expended or placed in trust.
                        ``(B) Minimum requirements for annual audits.--At a
                    minimum, each audit of a designated recipient
                    organization pursuant to subparagraph (A) shall report--
                              ``(i) the amount of payments received by the
                          designated recipient organization from the fund
                          during the fiscal year of the organization for
                          which the audit is conducted that are derived from
                          the proceeds of any surcharge imposed on the sale
                          of any numismatic item;
                              ``(ii) the amount expended by the designated
                          recipient organization from the proceeds of such
                          surcharges during the fiscal year of the
                          organization for which the audit is conducted; and
                              ``(iii) whether all expenditures by the
                          designated recipient organization during the
                          fiscal year of the organization for which the
                          audit is conducted from the proceeds of such
                          surcharges were for authorized purposes.

    [[Page 110 STAT. 3009-351]]

                        ``(C) Responsibility of organization to account for
                    expenditures of surcharges.--Each designated recipient
                    organization that receives any payment from the fund of
                    any amount derived from the proceeds of any surcharge
                    imposed on the sale of any numismatic item shall take
                    appropriate steps, as a condition for receiving any such
                    payment, to ensure that the receipt of the payment and
                    the expenditure of the proceeds of such surcharge by the
                    organization in each fiscal year of the organization can
                    be accounted for separately from all other revenues and
                    expenditures of the organization.
                        ``(D) Submission of audit report.--Not later than 90
                    days after the end of any fiscal year of a designated
                    recipient organization for which an audit is required
                    under subparagraph (A), the organization shall--
                              ``(i) submit a copy of the report to the
                          Secretary of the Treasury; and
                              ``(ii) make a copy of the report available to
                          the public.
                        ``(E) Use of surcharges for audits.--Any designated
                    recipient organization that receives any payment from
                    the fund of any amount derived from the proceeds of any
                    surcharge imposed on the sale of any numismatic item may
                    use the amount received to pay the cost of an audit
                    required under subparagraph (A).
                        ``(F) Waiver of paragraph.--The Secretary of the
                    Treasury may waive the application of any subparagraph
                    of this paragraph to any designated recipient
                    organization for any fiscal year after taking into
                    account the amount of surcharges that such organization
                    received or expended during such year.
                        ``(G) Nonapplicability to federal entities.--This
                    paragraph shall not apply to any Federal agency or
                    department or any independent establishment in the
                    executive branch that receives any payment from the fund
                    of any amount derived from the proceeds of any surcharge
                    imposed on the sale of any numismatic item.
                        ``(H) Availability of books and records.--An
                    organization that receives any payment from the fund of
                    any amount derived from the proceeds of any surcharge
                    imposed on the sale of any numismatic item shall
                    provide, as a condition for receiving any such payment,
                    to the Inspector General of the Department of the
                    Treasury or the Comptroller General of the United
                    States, upon the request of such Inspector General or
                    the Comptroller General, all books, records, and work
                    papers belonging to or used by the organization, or by
                    any independent public accountant who audited the
                    organization in accordance with subparagraph (A), which
                    may relate to the receipt or expenditure of any such
                    amount by the organization.
                ``(3) Use of agents or attorneys to influence commemorative
            coin legislation.--No portion of any payment from the fund to
            any designated recipient organization of any amount derived from
            the proceeds of any surcharge imposed on the sale of any
            numismatic item may be used, directly or indirectly, by the
            organization to compensate any agent or attorney for services
            rendered to support or influence

    [[Page 110 STAT. 3009-352]]

            in any way legislative action of the Congress relating to such
            numismatic item.
                ``(4) Designated recipient organization defined.--For
            purposes of this subsection, the term `designated recipient
            organization' means any organization designated, under any
            provision of law, as the recipient of any surcharge imposed on
            the sale of any numismatic item.''.
                (3) <<NOTE: 31 USC 5134 note.>>  Scope of application.--The
            amendments made by this section shall apply with respect to the
            proceeds of any surcharge imposed on the sale of any numismatic
            item that are deposited in the Numismatic Public Enterprise Fund
            after the date of the enactment of this Act.
                (4) Repeal of existing recipient report requirement.--
            Section 303 of Public Law 103-186 (31 U.S.C. 5112 note) is
            repealed.

        (c) Quarterly Financial Reports.--Section 5134 of title 31, United
    States Code, is amended by adding at the end the following new
    subsection:
        ``(g) Quarterly Financial Reports.--
                ``(1) In general.--Not later than the 30th day of each month
            following each calendar quarter through and including the final
            period of sales with respect to any commemorative coin program
            authorized on or after the date of enactment of the Treasury,
            Postal Service, and General Government Appropriations Act, 1997,
            the Mint shall submit to the Congress a quarterly financial
            report in accordance with this subsection.
                ``(2) Requirements.--Each report submitted under paragraph
            (1) shall include, with respect to the calendar quarter at
            issue--
                        ``(A) a detailed financial statement, prepared in
                    accordance with generally accepted accounting
                    principles, that includes financial information specific
                    to that quarter, as well as cumulative financial
                    information relating to the entire program;
                        ``(B) a detailed accounting of--
                              ``(i) all costs relating to marketing efforts;
                              ``(ii) all funds projected for marketing use;
                              ``(iii) all costs for employee travel relating
                          to the promotion of commemorative coin programs;
                              ``(iv) all numismatic items minted, sold, not
                          sold, and rejected during the production process;
                          and
                              ``(v) the costs of melting down all rejected
                          and unsold products;
                        ``(C) adequate market-based research for all
                    commemorative coin programs; and
                        ``(D) a description of the efforts of the Mint in
                    keeping the sale price of numismatic items as low as
                    practicable.''.

        (d) Citizens Commemorative Coin Advisory Committee.--
                (1) Fixed terms for members.--Section 5135(a)(4) of title
            31, United States Code, is amended to read as follows:
                ``(4) Terms.--Each member appointed under clause (i) or
            (iii) of paragraph (3)(A) shall be appointed for a term of 4
            years.''.
                (2) Chairperson.--Section 5135(a) of title 31, United States
            Code, is amended by adding at the end the following new
            paragraph:
                ``(7) Chairperson.--

    [[Page 110 STAT. 3009-353]]

                        ``(A) In general.--Subject to subparagraph (B), the
                    Chairperson of the Advisory Committee shall be elected
                    by the members of the Advisory Committee from among such
                    members.
                        ``(B) Exception.--The member appointed pursuant to
                    paragraph (3)(A)(ii) (or the alternate to that member)
                    may not serve as the Chairperson of the Advisory
                    Committee, beginning on June 1, 1999.''.

        (e) <<NOTE: 31 USC 5112 note.>>  Effective Date.--This section and
    the amendments made by this section shall take effect on the date of
    enactment of this Act.

                          TITLE VI--GENERAL PROVISIONS

                     Departments, Agencies, and Corporations

        Section  601. Funds appropriated in this or any other Act may be
    used to pay travel to the United States for the immediate family of
    employees serving abroad in cases of death or life threatening illness
    of said employee.
        Sec. 602. No department, agency, or instrumentality of the United
    States receiving appropriated funds under this or any other Act for
    fiscal year 1997 shall obligate or expend any such funds, unless such
    department, agency, or instrumentality has in place, and will continue
    to administer in good faith, a written policy designed to ensure that
    all of its workplaces are free from the illegal use, possession, or
    distribution of controlled substances (as defined in the Controlled
    Substances Act) by the officers and employees of such department,
    agency, or instrumentality.
        Sec. 603. Notwithstanding 31 U.S.C. 1345, any agency, department or
    instrumentality of the United States which provides or proposes to
    provide child care services for Federal employees may reimburse any
    Federal employee or any person employed to provide such services for
    travel, transportation, and subsistence expenses incurred for training
    classes, conferences or other meetings in connection with the provision
    of such services: Provided, That any per diem allowance made pursuant to
    this section shall not exceed the rate specified in regulations
    prescribed pursuant to section 5707 of title 5, United States Code.
        Sec. 604. <<NOTE: 31 USC 1343 note.>>  Unless otherwise specifically
    provided, the maximum amount allowable during the current fiscal year in
    accordance with section 16 of the Act of August 2, 1946 (60 Stat. 810),
    for the purchase of any passenger motor vehicle (exclusive of buses,
    ambulances, law enforcement, and undercover surveillance vehicles), is
    hereby fixed at $8,100 except station wagons for which the maximum shall
    be $9,100: Provided, That these limits may be exceeded by not to exceed
    $3,700 for police-type vehicles, and by not to exceed $4,000 for special
    heavy-duty vehicles: Provided further, That the limits set forth in this
    section may not be exceeded by more than 5 percent for electric or
    hybrid vehicles purchased for demonstration under the provisions of the
    Electric and Hybrid Vehicle Research, Development, and Demonstration Act
    of 1976: Provided further, That the limits set forth in this section may
    be exceeded by the incremental cost of clean alternative fuels vehicles
    acquired pursuant to Public Law 101-549 over the cost of comparable
    conventionally fueled vehicles.

    [[Page 110 STAT. 3009-354]]

        Sec. 605. Appropriations of the executive departments and
    independent establishments for the current fiscal year available for
    expenses of travel or for the expenses of the activity concerned, are
    hereby made available for quarters allowances and cost-of-living
    allowances, in accordance with 5 U.S.C. 5922-24.
        Sec. 606. <<NOTE: 5 USC 3101 note.>>  Unless otherwise specified
    during the current fiscal year, no part of any appropriation contained
    in this or any other Act shall be used to pay the compensation of any
    officer or employee of the Government of the United States (including
    any agency the majority of the stock of which is owned by the Government
    of the United States) whose post of duty is in the continental United
    States unless such person (1) is a citizen of the United States, (2) is
    a person in the service of the United States on the date of enactment of
    this Act who, being eligible for citizenship, has filed a declaration of
    intention to become a citizen of the United States prior to such date
    and is actually residing in the United States, (3) is a person who owes
    allegiance to the United States, (4) is an alien from Cuba, Poland,
    South Vietnam, the countries of the former Soviet Union, or the Baltic
    countries lawfully admitted to the United States for permanent
    residence, (5) is a South Vietnamese, Cambodian, or Laotian refugee
    paroled in the United States after January 1, 1975, or (6) is a national
    of the People's Republic of China who qualifys for adjustment of status
    pursuant to the Chinese Student Protection Act of 1992: Provided, That
    for the purpose of this section, an affidavit signed by any such person
    shall be considered prima facie evidence that the requirements of this
    section with respect to his or her status have been complied with:
    Provided further, That any person making a false affidavit shall be
    guilty of a felony, and, upon conviction, shall be fined no more than
    $4,000 or imprisoned for not more than 1 year, or both: Provided
    further, That the above penal clause shall be in addition to, and not in
    substitution for, any other provisions of existing law: Provided
    further, That any payment made to any officer or employee contrary to
    the provisions of this section shall be recoverable in action by the
    Federal Government. This section shall not apply to citizens of Ireland,
    Israel, or the Republic of the Philippines, or to nationals of those
    countries allied with the United States in the current defense effort,
    or to international broadcasters employed by the United States
    Information Agency, or to temporary employment of translators, or to
    temporary employment in the field service (not to exceed 60 days) as a
    result of emergencies.

        Sec. 607. Appropriations available to any department or agency
    during the current fiscal year for necessary expenses, including
    maintenance or operating expenses, shall also be available for payment
    to the General Services Administration for charges for space and
    services and those expenses of renovation and alteration of buildings
    and facilities which constitute public improvements performed in
    accordance with the Public Buildings Act of 1959 (73 Stat. 749), the
    Public Buildings Amendments of 1972 (87 Stat. 216), or other applicable
    law.
        Sec. 608. In addition to funds provided in this or any other Act,
    all Federal agencies are authorized to receive and use funds resulting
    from the sale of materials, including Federal records disposed of
    pursuant to a records schedule recovered through recycling or waste
    prevention programs. Such funds shall be available until expended for
    the following purposes:

    [[Page 110 STAT. 3009-355]]

                (1) Acquisition, waste reduction and prevention, and
            recycling programs as described in Executive Order 12873
            (October 20, 1993), including any such programs adopted prior to
            the effective date of the Executive Order.
                (2) Other Federal agency environmental management programs,
            including, but not limited to, the development and
            implementation of hazardous waste management and pollution
            prevention programs.
                (3) Other employee programs as authorized by law or as
            deemed appropriate by the head of the Federal agency.

        Sec. 609. Funds made available by this or any other Act for
    administrative expenses in the current fiscal year of the corporations
    and agencies subject to chapter 91 of title 31, United States Code,
    shall be available, in addition to objects for which such funds are
    otherwise available, for rent in the District of Columbia; services in
    accordance with 5 U.S.C. 3109; and the objects specified under this
    head, all the provisions of which shall be applicable to the expenditure
    of such funds unless otherwise specified in the Act by which they are
    made available: Provided, That in the event any functions budgeted as
    administrative expenses are subsequently transferred to or paid from
    other funds, the limitations on administrative expenses shall be
    correspondingly reduced.
        Sec. 610. No part of any appropriation for the current fiscal year
    contained in this or any other Act shall be paid to any person for the
    filling of any position for which he or she has been nominated after the
    Senate has voted not to approve the nomination of said person.
        Sec. 611. <<NOTE: 40 USC 486a.>>  For the fiscal year ending
    September 30, 1997, and thereafter, any department or agency to which
    the Administrator of General Services has delegated the authority to
    operate, maintain or repair any building or facility pursuant to section
    205(d) of the Federal Property and Administrative Services Act of 1949,
    as amended, shall retain that portion of the GSA rental payment
    available for operation, maintenance or repair of the building or
    facility, as determined by the Administrator, and expend such funds
    directly for the operation, maintenance or repair of the building or
    facility. Any funds retained under this section shall remain available
    until expended for such purposes.

        Sec. 612. (a) In General.--Section 1306 of title 31, United States
    Code, is amended to read as follows:

    ``Sec. 1306. Use of foreign credits

        ``(a) In General.--Foreign credits (including currencies) owed to or
    owned by the United States may be used by any agency for any purpose for
    which appropriations are made for the agency for the current fiscal year
    (including the carrying out of Acts requiring or authorizing the use of
    such credits), but only when reimbursement therefor is made to the
    Treasury from applicable appropriations of the agency.
        ``(b) <<NOTE: 31 USC 1306 note.>>  Exception to Reimbursement
    Requirement.--Credits described in subsection (a) that are received as
    exchanged allowances, or as the proceeds of the sale of personal
    property, may be used in whole or partial payment for the acquisition of
    similar items, to the extent and in the manner authorized by law,
    without reimbursement to the Treasury.''.

    [[Page 110 STAT. 3009-356]]

        (b) Applicability.--The amendment made by this section shall take
    effect on the date of the enactment of this Act and shall apply
    thereafter.
        Sec. 613. No part of any appropriation contained in this or any
    other Act shall be available for interagency financing of boards(except
    Federal Executive Boards), commissions, councils, committees, or similar
    groups (whether or not they are interagency entities) which do not have
    a prior and specific statutory approval to receive financial support
    from more than one agency or instrumentality.
        Sec. 614. Funds made available by this or any other Act to the
    ``Postal Service Fund'' (39 U.S.C. 2003) shall be available for
    employment of guards for all buildings and areas owned or occupied by
    the Postal Service and under the charge and control of the Postal
    Service, and such guards shall have, with respect to such property, the
    powers of special policemen provided by the first section of the Act of
    June 1, 1948, as amended (62 Stat. 281; 40 U.S.C. 318), and, as to
    property owned or occupied by the Postal Service, the Postmaster General
    may take the same actions as the Administrator of General Services may
    take under the provisions of sections 2 and 3 of the Act of June 1,
    1948, as amended (62 Stat. 281; 40 U.S.C. 318a, 318b), attaching thereto
    penal consequences under the authority and within the limits provided in
    section 4 of the Act of June 1, 1948, as amended (62 Stat. 281; 40
    U.S.C. 318c).
        Sec. 615. None of the funds made available pursuant to the
    provisions of this Act shall be used to implement, administer, or
    enforce any regulation which has been disapproved pursuant to a
    resolution of disapproval duly adopted in accordance with the applicable
    law of the United States.
        Sec. 616. <<NOTE: 5 USC 5343.>>  (a) Notwithstanding any other
    provision of law, and except as otherwise provided in this section, no
    part of any of the funds appropriated for the fiscal year ending on
    September 30, 1997, by this or any other Act, may be used to pay any
    prevailing rate employee described in section 5342(a)(2)(A) of title 5,
    United States Code--
                (1) during the period from the date of expiration of the
            limitation imposed by section 616 of the Treasury, Postal
            Service and General Government Appropriations Act, 1996, until
            the normal effective date of the applicable wage survey
            adjustment that is to take effect in fiscal year 1997, in an
            amount that exceeds the rate payable for the applicable grade
            and step of the applicable wage schedule in accordance with such
            section 616; and
                (2) during the period consisting of the remainder of fiscal
            year 1997, in an amount that exceeds, as a result of a wage
            survey adjustment, the rate payable under paragraph (1) by more
            than the sum of--
                        (A) the percentage adjustment taking effect in
                    fiscal year 1997 under section 5303 of title 5, United
                    States Code, in the rates of pay under the General
                    Schedule; and
                        (B) the difference between the overall average
                    percentage of the locality-based comparability payments
                    taking effect in fiscal year 1997 under section 5304 of
                    such title

    [[Page 110 STAT. 3009-357]]

                    (whether by adjustment or otherwise), and the overall
                    average percentage of such payments which was effective
                    in fiscal year 1996 under such section.

        (b) Notwithstanding any other provision of law, no prevailing rate
    employee described in subparagraph (B) or (C) of section 5342(a)(2) of
    title 5, United States Code, and no employee covered by section 5348 of
    such title, may be paid during the periods for which subsection (a) is
    in effect at a rate that exceeds the rates that would
    be payable under subsection (a) were subsection (a) applicable to such
    employee.

        (c) For the purposes of this section, the rates payable to an
    employee who is covered by this section and who is paid from a schedule
    not in existence on September 30, 1996, shall be determined under
    regulations prescribed by the Office of Personnel Management.
        (d) Notwithstanding any other provision of law, rates of premium pay
    for employees subject to this section may not be changed from the rates
    in effect on September 30, 1996, except to the extent determined by the
    Office of Personnel Management to be consistent with the purpose of this
    section.
        (e) This section shall apply with respect to pay for service
    performed after September 30, 1996.
        (f) For the purpose of administering any provision of law (including
    section 8431 of title 5, United States Code, and any rule or regulation
    that provides premium pay, retirement, life insurance, or any other
    employee benefit) that requires any deduction or contribution, or that
    imposes any requirement or limitation on the basis of a rate of salary
    or basic pay, the rate of salary or basic pay payable after the
    application of this section shall be treated as the rate of salary or
    basic pay.
        (g) Nothing in this section shall be considered to permit or require
    the payment to any employee covered by this section at a rate in excess
    of the rate that would be payable were this section not in effect.
        (h) The Office of Personnel Management may provide for exceptions to
    the limitations imposed by this section if the Office determines that
    such exceptions are necessary to ensure the recruitment or retention of
    qualified employees.
        Sec. 617. During the period in which the head of any department or
    agency, or any other officer or civilian employee of the Government
    appointed by the President of the United States, holds office, no funds
    may be obligated or expended in excess of $5,000 to furnish or
    redecorate the office of such department head, agency head, officer or
    employee, or to purchase furniture or make improvements for any such
    office, unless advance notice of such furnishing or redecoration is
    expressly approved by the Committees on Appropriations of the House and
    Senate. For the purposes of this section, the word ``office'' shall
    include the entire suite of offices assigned to the individual, as well
    as any other space used primarily by the individual or the use of which
    is directly controlled by the individual.
        Sec. 618. Notwithstanding any other provision of law, no executive
    branch agency shall purchase, construct, and/or lease any additional
    facilities, except within or contiguous to existing locations, to be
    used for the purpose of conducting Federal law enforcement training
    without the advance approval of the House and Senate Committees on
    Appropriations.

    [[Page 110 STAT. 3009-358]]

        Sec. 619. Notwithstanding section 1346 of title 31, United States
    Code, or section 613 of this Act, funds made available for fiscal year
    1997 by this or any other Act shall be available for the interagency
    funding of national security and emergency preparedness
    telecommunications initiatives which benefit multiple Federal
    departments, agencies, or entities, as provided by Executive Order
    Numbered 12472 (April 3, 1984).
        Sec. 620. (a) None of the funds appropriated by this or any other
    Act may be obligated or expended by any Federal department, agency, or
    other instrumentality for the salaries or expenses of any employee
    appointed to a position of a confidential or policy-determining
    character excepted from the competitive service pursuant to section 3302
    of title 5, United States Code, without a certification to the Office of
    Personnel Management from the head of the Federal department, agency, or
    other instrumentality employing the Schedule C appointee that the
    Schedule C position was not created solely or primarily in order to
    detail the employee to the White House.
        (b) The provisions of this section shall not apply to Federal
    employees or members of the armed services detailed to or from--
                (1) the Central Intelligence Agency;
                (2) the National Security Agency;
                (3) the Defense Intelligence Agency;
                (4) the offices within the Department of Defense for the
            collection of specialized national foreign intelligence through
            reconnaissance programs;
                (5) the Bureau of Intelligence and Research of the
            Department of State;
                (6) any agency, office, or unit of the Army, Navy, Air
            Force, and Marine Corps, the Federal Bureau of Investigation and
            the Drug Enforcement Administration of the Department of
            Justice, the Department of Transportation, the Department of the
            Treasury, and the Department of Energy performing intelligence
            functions; and
                (7) the Director of Central Intelligence.

        Sec. 621. No department, agency, or instrumentality of the United
    States receiving appropriated funds under this or any other Act for
    fiscal year 1997 shall obligate or expend any such funds, unless such
    department, agency or instrumentality has in place, and will continue to
    administer in good faith, a written policy designed to ensure that all
    of its workplaces are free from discrimination and sexual harassment and
    that all of its workplaces are not in violation of title VII of the
    Civil Rights Act of 1964, as amended, the Age Discrimination in
    Employment Act of 1967, and the Rehabilitation Act of 1973.
        Sec. 622. No part of any appropriation contained in this Act may be
    used to pay for the expenses of travel of employees, including employees
    of the Executive Office of the President, not directly responsible for
    the discharge of official governmental tasks and duties: Provided, That
    this restriction shall not apply to the family of the President, Members
    of Congress or their spouses, Heads of State of a foreign country or
    their designees, persons providing assistance to the President for
    official purposes, or other individuals so designated by the President.
        Sec. 623. <<NOTE: 5 USC 7301 note.>>  Notwithstanding any provision
    of law, the President, or his designee, must certify to Congress,
    annually, that no person or persons with direct or indirect
    responsibility for administering

    [[Page 110 STAT. 3009-359]]

    the Executive Office of the President's Drug-Free Workplace Plan are
    themselves subject to a program of individual random drug testing.

        Sec. 624. (a) None of the funds made available in this Act or any
    other Act may be obligated or expended
    for any employee training when it is made known to the Federal official
    having authority to obligate or expend such funds that such employee
    training--
                (1) does not meet identified needs for knowledge, skills,
            and abilities bearing directly upon the performance of official
            duties;
                (2) contains elements likely to induce high levels of
            emotional response or psychological stress in some participants;
                (3) does not require prior employee notification of the
            content and methods to be used in the training and written end
            of course evaluation;
                (4) contains any methods or content associated with
            religious or quasi-religious belief systems or ``new age''
            belief systems as defined in Equal Employment Opportunity
            Commission Notice N-915.022, dated September 2, 1988;
                (5) is offensive to, or designed to change, participants'
            personal values or lifestyle outside the workplace; or
                (6) includes content related to human immunodeficiency
            virus/acquired immune deficiency syndrome (HIV/AIDS) other than
            that necessary to make employees more aware of the medical
            ramifications of HIV/AIDS and the workplace rights of HIV-
            positive employees.

         (b) Nothing in this section shall prohibit, restrict, or otherwise
    preclude an agency from conducting training bearing directly upon the
    performance of official duties.
        Sec. 625. No funds appropriated in this or any other Act for fiscal
    year 1997 may be used to implement or enforce the agreements in Standard
    Forms 312 and 4355 of the Government or any other nondisclosure policy,
    form, or agreement if such policy, form, or agreement does not contain
    the following provisions: ``These restrictions are consistent with and
    do not supersede, conflict with, or otherwise alter the employee
    obligations, rights, or liabilities created by Executive Order 12356;
    section 7211 of title 5, United States Code (governing disclosures to
    Congress); section 1034 of title 10, United States Code, as amended by
    the Military Whistleblower Protection Act (governing disclosure to
    Congress by members of the military); section 2302(b)(8) of title 5,
    United States Code, as amended by the Whistleblower Protection Act
    (governing disclosures of illegality, waste, fraud, abuse or public
    health or safety threats); the Intelligence Identities Protection Act of
    1982 (50 U.S.C. 421 et seq.) (governing disclosures that could expose
    confidential Government agents); and the statutes which protect against
    disclosure that may compromise the national security, including sections
    641, 793, 794, 798, and 952 of title 18, United States Code, and section
    4(b) of the Subversive Activities Act of 1950 (50 U.S.C. section
    783(b)). The definitions, requirements, obligations, rights, sanctions,
    and liabilities created by said Executive Order and listed statutes are
    incorporated into this agreement and are controlling.'': Provided, That
    notwithstanding the preceding paragraph, a nondisclosure policy form or
    agreement that is to be executed by a person connected with the conduct
    of an intelligence or intelligence-related activity, other than an
    employee or officer of the United

    [[Page 110 STAT. 3009-360]]

    States Government, may contain provisions appropriate to the particular
    activity for which such document is to be used. Such form or agreement
    shall, at a minimum, require that the person will not disclose any
    classified information received in the course of such activity unless
    specifically authorized to do so by the United States Government. Such
    nondisclosure forms shall also make it clear that they do not bar
    disclosures to Congress or to an authorized official of an executive
    agency or the Department of Justice that are essential to reporting a
    substantial violation of law.
        Sec. 626. (a) None of the funds appropriated by this or any other
    Act may be expended by any Federal Agency to procure any product or
    service subject to section 5124 of Public Law 104-106 and that will be
    available under the procurement by the Administrator of General Services
    known as ``FTS2000'' unless--
                (1) such product or service is procured by the Administrator
            of General Services as part of the procurement known as
            ``FTS2000''; or
                (2) that agency establishes to the satisfaction of the
            Administrator of General Services that--
                        (A) that agency's requirements for such procurement
                    are unique and cannot be satisfied by property and
                    service procured by the Administrator of General
                    Services as part of the procurement known as
                    ``FTS2000''; and
                        (B) the agency procurement, pursuant to such
                    delegation, would be cost-effective and would not
                    adversely affect the cost-effectiveness of the FTS2000
                    procurement.

        (b) After December 31, 1998, subsection (a) shall apply only if the
    Administrator of General Services has reported that the FTS2000
    procurement is producing prices that allow the Government to satisfy its
    requirements for such procurement in the most cost-effective manner.
        Sec. 627. Subsection (f) of section 403 of Public Law 103-356 is
    amended <<NOTE: 31 USC 501 note.>>  by deleting ``October 1, 1999'' and
    inserting ``October 1, 2001''.

        Sec. 628. (a) In General.--Notwithstanding any other provision of
    law, none of the funds made available by this Act for the Department of
    the Treasury shall be available for any activity or for paying the
    salary of any Government employee where funding an activity or paying a
    salary to a Government employee would result in a decision,
    determination, rule, regulation, or policy that would permit the
    Secretary of the Treasury to make any loan or extension of credit under
    section 5302 of title 31, United States Code, with respect to a single
    foreign entity or government of a foreign country (including agencies or
    other entities of that government)--
                (1) with respect to a loan or extension of credit for more
            than 60 days, unless the President certifies to the Committee on
            Banking, Housing, and Urban Affairs of the Senate and the
            Committee on Banking and Financial Services of the House of
            Representatives that--
                        (A) there is no projected cost (as that term is
                    defined in section 502 of the Federal Credit Reform Act
                    of 1990) to the United States from the proposed loan or
                    extension of credit; and
                        (B) any proposed obligation or expenditure of United
                    States funds to or on behalf of the foreign government
                    is adequately backed by an assured source of repayment

    [[Page 110 STAT. 3009-361]]

                    to ensure that all United States funds will be repaid;
                    and
                (2) other than as provided by an Act of Congress, if that
            loan or extension of credit would result in expenditures and
            obligations, including contingent obligations, aggregating more
            than $1,000,000,000 with respect to that foreign country for
            more than 180 days during the 12-month period beginning on the
            date on which the first such action is taken.

        (b) Waiver of Limitations.--The President may exceed the dollar and
    time limitations in subsection (a)(2) if he certifies in writing to the
    Congress that a financial crisis in that foreign country poses a threat
    to vital United States economic interests or to the stability of the
    international financial system.
        (c) Expedited Procedures for a Resolution of Disapproval.--A
    presidential certification pursuant to subsection (b) shall not take
    effect, if the Congress, within 30 calendar days after receiving such
    certification, enacts a joint resolution of disapproval, as described in
    paragraph (5) of this subsection.
                (1) Reference to committees.--All joint resolutions
            introduced in the Senate to disapprove the certification shall
            be referred to the Committee on Banking, Housing, and Urban
            Affairs, and in the House of Representatives, to the appropriate
            committees.
                (2) Discharge of committees.--(A) If the committee of either
            House to which a resolution has been referred has not reported
            it at the end of 15 days after its introduction, it is in order
            to move either to discharge the committee from further
            consideration of the joint resolution or to discharge the
            committee from further consideration of any other resolution
            introduced with respect to the same matter, except no motion to
            discharge shall be in order after the committee has reported a
            joint resolution with respect to the same matter.
                (B) A motion to discharge may be made only by an individual
            favoring the resolution, and is privileged in the Senate; and
            debate thereon shall be limited to not more than 1 hour, the
            time to be divided in the Senate equally between, and controlled
            by, the majority leader and the minority leader or their
            designees.
                (3) Floor consideration in the senate.--(A) A motion in the
            Senate to proceed to the consideration of a resolution shall be
            privileged.
                (B) Debate in the Senate on a resolution, and all debatable
            motions and appeals in connection therewith, shall be limited to
            not more than 4 hours, to be equally divided between, and
            controlled by, the majority leader and the minority leader or
            their designees.
                (C) Debate in the Senate on any debatable motion or appeal
            in connection with a resolution shall be limited to not more
            than 20 minutes, to be equally divided between, and controlled
            by, the mover and the manager of the resolution, except that in
            the event the manager of the resolution is in favor of any such
            motion or appeal, the time in opposition thereto, shall be
            controlled by the minority leader or his designee. Such leaders,
            or either of them, may, from time under their control on the
            passage of a resolution, allot additional time to any Senator
            during the consideration of any debatable motion or appeal.

    [[Page 110 STAT. 3009-362]]

                (D) A motion in the Senate to further limit debate on a
            resolution, debatable motion, or appeal is not debatable. No
            amendment to, or motion to recommit, a resolution is in order in
            the Senate.
                (4) In the case of a resolution, if prior to the passage by
            one House of a resolution of that House, that House receives a
            resolution with respect to the same matter from the other House,
            then--
                        (A) the procedure in that House shall be the same as
                    if no resolution had been received from the other House;
                    but
                        (B) the vote on final passage shall be on the
                    resolution of the other House.
                (5) For purposes of this subsection, the term ``joint
            resolution'' means only a joint resolution of the 2 Houses of
            Congress, the matter after the resolving clause of which is as
            follows: ``That the Congress disapproves the action of the
            President under section 628(c) of the Treasury, Postal Service,
            and General Government Appropriations Act, 1997, notice of which
            was submitted to the Congress on ______________.'', with the
            blank space being filled with the appropriate date.

        (d) Applicability.--This section--
                (1) shall not apply to any action taken as part of the
            program of assistance to Mexico announced by the President on
            January 31, 1995; and
                (2) shall remain in effect through fiscal year 1997.

        Sec. 629. (a) Technical Amendment.--Section 640 of Public Law 104-52
    (109 Stat. 513) <<NOTE: 5 USC 8401 note.>>  is amended by striking
    ``Service performed'' and inserting ``Hereafter, service performed''.

        (b) <<NOTE: 5 USC 8401 note.>>  Effective Date.--The amendment made
    by subsection (a) shall take effect as if included in Public Law 104-52
    on the date of its enactment.

        Sec. 630. Notwithstanding any other provision of law, no part of any
    appropriation contained in this Act for any fiscal year shall be
    available for paying Sunday premium or differential pay to any employee
    unless such employee actually performed work during the time
    corresponding to such premium or differential pay.
        Sec. 631. No part of any funds appropriated in this or any other Act
    shall be used by an agency of the executive branch, other than for
    normal and recognized executive-legislative relationships, for publicity
    or propaganda purposes, and for the preparation, distribution or use of
    any kit, pamphlet, booklet, publication, radio, television or film
    presentation designed to support or defeat legislation pending before
    the Congress, except in presentation to the Congress itself.
        Sec. 632. (a) The United States Courthouse under construction at
    1030 Southwest 3d Avenue in Portland, Oregon, shall be known and
    designated as the ``Mark O. Hatfield United States Courthouse''.
        (b) Any reference in a law, map, regulation, document, paper, or
    other record of the United States to the courthouse referred to in
    section 901 shall be deemed to be a reference to the ``Mark O. Hatfield
    United States Courthouse''.
        (c) This section shall take effect on January 2, 1997.
        Sec. 633. Survivor Annuity Resumption Upon Termination of
    Marriage.--(a) Amendments.--

    [[Page 110 STAT. 3009-363]]

                (1) Civil service retirement system.--Section 8341(e) of
            title 5, United States Code, is amended by adding at the end the
            following:

        ``(4) If the annuity of a child under this subchapter terminates
    under paragraph (3)(E) because of marriage, then, if such marriage ends,
    such annuity shall resume on the first day of the month in which it
    ends, but only if--
                ``(A) any lump sum paid is returned to the Fund; and
                ``(B) that individual is not otherwise ineligible for such
            annuity.''.
                (2) Federal employees' retirement system.--Section 8443(b)
            of such title is amended by adding at the end the following:
            ``If the annuity of a child under this subchapter terminates
            under subparagraph (E) because of marriage, then, if such
            marriage ends, such annuity shall resume on the first day of the
            month in which it ends, but only if any lump sum paid is
            returned to the Fund, and that individual is not otherwise
            ineligible for such annuity.''.
                (3) Federal employees health benefits.--Section 8908 of
            title 5, United States Code, is amended by adding at the end of
            the following new subsection:

        ``(d) A surviving child whose survivor annuity under section 8341(e)
    or 8443(b) was terminated and is later restored under paragraph (4) of
    section 8341(e) or the last sentence of section 8443(b) may, under
    regulations prescribed by the Office, enroll in a health benefits plan
    described by section 8903 or 8903a if such surviving child was covered
    by any such plan immediately before such annuity was terminated.''.
        (b) <<NOTE: 5 USC 8341 note.>>  Applicability.--The amendments made
    by subsection (a) shall apply with respect to any termination of
    marriage taking effect before, on, or after the date of enactment of
    this Act, except that benefits shall be payable only with respect to
    amounts accruing for periods beginning on the first day of the month
    beginning after the later of such termination of marriage or such date
    of enactment.

        Sec. 634. Availability of Annual Leave For Employees Affected by
    Reduction in Force.--Section 6302 of title 5, United States Code, is
    amended by adding at the end of the following new subsection:
        ``(g) An employee who is being involuntarily separated from an
    agency due to a reduction in force or transfer of function under
    subchapter I of chapter 35 may elect to use annual leave to the
    employee's credit to remain on the agency's rolls after the date the
    employee would otherwise have been separated if, and only to the extent
    that, such additional time in a pay status will enable the employee to
    qualify for an immediate annuity under section 8336, 8412, 8414, or to
    qualify to carry health benefits coverage into retirement under section
    8905(b).''.
        Sec. 635. Section 207(e)(6)(B) of title 18, United States Code, is
    amended by striking ``level V of the Executive Schedule'' and inserting
    ``level 5 of the Senior Executive Service''.
        Sec. 636. <<NOTE: 5 USC prec. 5941 note.>>  Reimbursements Relating
    to Professional Liability Insurance.--(a) Authority.--Notwithstanding
    any other provision of law, amounts appropriated by this Act (or any
    other Act for fiscal year 1997 or any fiscal year thereafter) for
    salaries and expenses may be used to reimburse any qualified employee
    for not to exceed one-half the costs incurred by such employee for

    [[Page 110 STAT. 3009-364]]

    professional liability insurance. A payment under this section shall be
    contingent upon the submission of such information or documentation as
    the employing agency may require.

        (b) Qualified Employee.--For purposes of this section, the term
    ``qualified employee'' means an agency employee whose position is that
    of--
                (1) a law enforcement officer; or
                (2) a supervisor or management official.

        (c) Definitions.--For purposes of this section--
                (1) the term ``agency'' means an Executive agency, as
            defined by section 105 of title 5, United States Code, and any
            agency of the Legislative Branch of Government including any
            office or committee of the Senate or the House of
            Representatives;
                (2) the term ``law enforcement officer'' means an employee,
            the duties of whose position are primarily the investigation,
            apprehension, prosecution, or detention of individuals suspected
            or convicted of offenses against the criminal laws of the United
            States, including any law enforcement officer under section
            8331(20) or 8401(17) of such title 5, or under section 4823 of
            title 22, United States Code;
                (3) the terms ``supervisor'' and ``management official''
            have the respective meanings given them by section 7103(a) of
            such title 5, and
                (4) the term ``professional liability insurance'' means
            insurance which provides coverage for--
                        (A) legal liability for damages due to injuries to
                    other persons, damage to their property, or other damage
                    or loss to such other persons (including the expenses of
                    litigation and settlement) resulting from or arising out
                    of any tortious act, error, or omission of the covered
                    individual (whether common law, statutory, or
                    constitutional) while in the performance of such
                    individual's official duties as a qualified employee;
                    and
                        (B) the cost of legal representation for the covered
                    individual in connection with any administrative or
                    judicial proceeding (including any investigation or
                    disciplinary proceeding) relating to any act, error, or
                    omission of the covered individual while in the
                    performance of such individual's official duties as a
                    qualified employee, and other legal costs and fees
                    relating to any such administrative or judicial
                    proceeding.

        (d) Applicability.--The amendments made by this section shall take
    effect on the date of the enactment of this Act and shall apply
    thereafter.
        Sec. 637. <<NOTE: 5 USC 5303 note.>>  For purposes of each provision
    of law amended by section 704(a)(2) of the Ethics Reform Act of 1989 (5
    U.S.C. 5318 note), no adjustment under section 5303 of title 5, United
    States Code, shall be considered to have taken effect in fiscal year
    1997 in the rates of basic pay for the statutory pay systems.
          Sec. 638. For FY 1997, the Secretary of the Treasury is authorized
    to use funds made available to the FSLIC Resolution Fund under P.L. 103-
    327, not to exceed $26.1 million, to reimburse the Department of Justice
    for the reasonable expenses of litigation that are incurred in the
    defense of claims against the U.S. arising from FIRREA and its
    implementation.

    [[Page 110 STAT. 3009-365]]

        Sec. 639. Section 608 of Public Law 104-52 is amended in the first
    sentence by inserting before the period, ``, including Federal records
    disposed of pursuant to a records schedule''.
        Sec. 640. <<NOTE: 40 USC 1411 note.>>  In reviewing and analyzing
    the contracting out, outsourcing or privatization of business and
    administrative functions, and in implementing 40 U.S.C. sections 1413
    and 1423, and other provisions, in title LI of the National Defense
    Authorization Act for fiscal year 1996 (the Information Technology
    Management Reform Act)--
                (1) the Director of the Office of Management and Budget and
            the heads of the executive agencies may have studies, analyses,
            reviews and other management assistance performed by the private
            sector;
                (2) the reviews, analyses, and studies called for by 40
            U.S.C. section 1413(b)(2) (B) and (C) shall be completed and
            reported to the Agency Head within 180 days, or less measured
            from when a study analysis or review is initiated unless the
            Agency Head determines additional time is needed;
                (3) in accordance with principles and rules governing
            organizational conflicts of interest, persons involved in a
            particular study may not compete for any work that is to be or
            is outsourced as a result of that study; and
                (4) this section will apply with respect to studies
            occurring on or after the date of enactment of this subsection
            and completed before September 1, 1999 and the Comptroller
            General of the United States shall review and provide an
            assessment of this program by January 1, 1999.

        Sec. 641. (a) Section 1--Authorization of Appropriations.--Section
    8(a)(1) of the Whistleblower Protection Act of 1989 (5 U.S.C. 5509 note,
    Public Law 101-12, April 10, 1989, 103 Stat. 34, as amended Public Law
    103-424, Section 1, October 29, 1994, 108 Stat. 4361), is amended by
    striking the words: ``1993, 1994, 1995, 1996, and 1997,'' and inserting
    in lieu thereof ``1998, 1999, 2000, 2001, and 2002''.
        (b) <<NOTE: 5 USC 5509 note.>>  Section 2--Effective Date.--This Act
    shall take effect on October 1, 1998.

        Sec. 642. (a) Section 1.--Authorization of Appropriations.--Section
    8(a)(1) of the Whistleblower Protection Act of 1989 (5 U.S.C. 5509 note;
    Public Law 103-424; 103 Stat. 34) is amended by striking out: ``1993,
    1994, 1995, 1996, and 1997,'' and inserting in lieu thereof ``1998,
    1999, 2000, 2001, and 2002''.
        (b) <<NOTE: 5 USC 5509 note.>>  Section 2--Effective Date.--This Act
    shall take effect on October 1, 1998.

        Sec. 643. Modifications of National Commission on Restructuring the
    Internal Revenue Service.--(a) Quorum.--Paragraph (4) of section 637(b)
    of the Treasury, Postal Service, and General Government Appropriations
    Act, 1996 (Public Law 104-52, 109 <<NOTE: 26 USC 7801 note.>>  Stat.
    510) is amended by striking ``Seven'' and inserting ``Nine''.

        (b) Co-Chairs.--
                (1) In general.--Paragraph (3) of section 637(b) of such Act
            is amended--
                        (A) by striking ``a Chairman'' and inserting ``Co-
                    Chairs'', and
                        (B) by striking ``Chairman'' in the heading and
                    inserting ``Co-Chairs''.

    [[Page 110 STAT. 3009-366]]

                (2) Conforming amendments.--(A) Paragraph (5)(B) of section
            637(b) of such Act is amended by striking ``a Chairman'' and
            inserting ``Co-Chairs''.
                (B) Subsections (b)(4), (d)(1)(B), (d)(3), and (e)(1) of
            section 637 of such Act are each amended by striking
            ``Chairman'' each place it appears and inserting ``Co-Chairs''.

        (c) Gifts.--Section 637(d) of such Act is amended by adding at the
    end the following new paragraph:
                ``(6) Gifts.--The Commission may accept, use, and dispose of
            gifts or donations of services or property in carrying out its
            duties under this section.''

        (d) Travel Expenses.--Section 637(f)(2) of such Act is amended by
    striking ``shall'' and inserting ``may''.
        (e) Time for Filing Report.--
        (1) In general.--Paragraph (1) of section 637(g) of such Act is
    amended by striking ``one year'' and inserting ``15 months''.
        (2) Conforming amendment.--Subparagraph (A) of section 637(c)(1) of
    such Act is amended by striking ``one year'' and inserting ``15
    months''.
        (f) <<NOTE: 26 USC 7801 note.>>  Effective Date.--The amendments
    made by this section shall take effect as if included in the provisions
    of the Treasury, Postal Service, and General Government Appropriations
    Act, 1996.

        Sec. 644. (a) In General.--Section 202(a) of title 39, United States
    Code, is amended by striking ``$10,000 a year'' and inserting ``$30,000
    a year''.
        (b) <<NOTE: 39 USC 202 note.>>  Effective Date.--Subsection (a)
    shall take effect at the beginning of the next applicable pay period
    beginning after the date of the enactment of this Act.

        Sec. 645. (a) In General.--No later than September 30, 1997, the
    Director of the Office of Management and Budget shall submit to the
    Congress a report that provides--
                (1) estimates of the total annual costs and benefits of
            Federal regulatory programs, including quantitative and
            nonquantitative measures of regulatory costs and benefits;
                (2) estimates of the costs and benefits (including
            quantitative and nonquantitative measures) of each rule that is
            likely to have a gross annual effect on the economy of
            $100,000,000 or more in increased costs;
                (3) an assessment of the direct and indirect impacts of
            Federal rules on the private sector, State and local government,
            and the Federal Government; and
                (4) recommendations from the Director and a description of
            significant public comments to reform or eliminate any Federal
            regulatory program or program element that is inefficient,
            ineffective, or is not a sound use of the Nation's resources.

        (b) Notice.--The Director shall provide public notice and an
    opportunity to comment on the report under subsection (a) before the
    report is issued in final form.
        Sec. 646. Subsection (b) of section 404 of Public Law 103-356
    is <<NOTE: 31 USC 501 note.>>  amended by deleting ``September 30,
    1997'' and inserting ``December 31, 1999''.

        Sec. 647. (a) Notwithstanding any other provision of law, the
    Secretary shall, on behalf of the United States, transfer to the
    University of Miami, without charge, title to the real property and
    improvements that as of the date of the enactment of this Act constitute
    the Federal facility known as the Perrine Primate

    [[Page 110 STAT. 3009-367]]

    Center, subject to the condition that, during the 10-year period
    beginning on the date of the transfer--
                (1) the University will provide for the continued use of the
            real property and improvements as an animal research facility,
            including primates, and such use will be the exclusive use of
            the property (with such incidental exceptions as the Secretary
            may approve); or
                (2) the real property and improvements will be used for
            research-related purposes other than the purpose specified in
            paragraph (1) (or for both of such purposes), if the Secretary
            and the University enter into an agreement accordingly.

        (b) The conveyance under subsection (a) shall not become effective
    unless the conveyance specifies that, if the University of Miami engages
    in a material breach of the conditions specified in such subsection,
    title to the real property and improvements involved reverts to the
    United States at the election of the Secretary.
        (c) The real property referred to in subsections (a) and (b) is
    located in the county of Dade in the State of Florida, and is a parcel
    consisting of the northernmost 30 acre-parcel of the area. The exact
    acreage and legal description used for purposes of the transfer under
    subsection (a) shall be in accordance with a survey that is satisfactory
    to the Secretary.
        (d) For the purposes of this section--
                (1) the term ``Secretary'' means the Secretary of Health and
            Human Services; and
                (2) the term ``University of Miami'' means the University of
            Miami located in the State of Florida.

        Sec. 648. (a) Increased Penalties for Counterfeiting Violations.--
    Sections 474 and 474A of title 18, United States Code, are amended by
    striking ``class C felony'' each place that term appears and inserting
    ``class B felony''.
        (b) Criminal Penalty for Production, Sale, Transportation,
    Possession of Fictitious Financial Instruments Purporting To Be Those of
    the States, of Political Subdivisions, and of Private Organizations.--
                (1) In general.--Chapter 25 of title 18, United States Code,
            is amended by inserting after section 513, the following new
            section:

    ``Sec. 514. Fictitious obligations

        ``(a) Whoever, with the intent to defraud--
                ``(1) draws, prints, processes, produces, publishes, or
            otherwise makes, or attempts or causes the same, within the
            United States;
                ``(2) passes, utters, presents, offers, brokers, issues,
            sells, or attempts or causes the same, or with like intent
            possesses, within the United States; or
                ``(3) utilizes interstate or foreign commerce, including the
            use of the mails or wire, radio, or other electronic
            communication, to transmit, transport, ship, move, transfer, or
            attempts or causes the same, to, from, or through the United
            States,

    any false or fictitious instrument, document, or other item appearing,
    representing, purporting, or contriving through scheme or artifice, to
    be an actual security or other financial instrument issued under the
    authority of the United States, a foreign government, a State or other
    political subdivision of the United States, or an organization, shall be
    guilty of a class B felony.

    [[Page 110 STAT. 3009-368]]

        ``(b) For purposes of this section, any term used in this section
    that is defined in section 513(c) has the same meaning given such term
    in section 513(c).
        ``(c) The United States Secret Service, in addition to any other
    agency having such authority, shall have authority to investigate
    offenses under this section.''.
                (2) Technical amendment.--The analysis for chapter 25 of
            title 18, United States Code, is amended by inserting after the
            item relating to section 513 the following:

    ``514. Fictitious obligations.''.

        (c) <<NOTE: 18 USC 474 note.>>  Period of Effect.--This section and
    the amendments made by this section shall become effective on the date
    of enactment of this Act and shall remain in effect during each fiscal
    year following that date of enactment.

        Sec. 649. None of the funds appropriated by this Act may be used by
    an agency to provide a Federal employee's home address to any labor
    organization except when it is made known to the Federal official having
    authority to obligate or expend such funds that the employee has
    authorized such disclosure or that such disclosure has been ordered by a
    court of competent jurisdiction.
        Sec. 650. (a) No later than 45 days after the date of the enactment
    of this Act, the Inspector General of each Federal department or agency
    that uses administratively uncontrollable overtime in the pay of any
    employee shall--
                (1) conduct an audit on the use of administratively
            uncontrollable overtime by employees of such department or
            agency, which shall include--
                        (A) an examination of the policies, extent, costs,
                    and other relevant aspects of the use of
                    administratively uncontrollable overtime at the
                    department or agency; and
                        (B) a determination of whether the eligibility
                    criteria of the department or agency and payment of
                    administratively uncontrollable overtime comply with
                    Federal statutory and regulatory requirements; and
                (2) submit a report of the findings and conclusions of such
            audit to--
                        (A) the Office of Personnel Management;
                        (B) the Governmental Affairs Committee of the
                    Senate; and
                        (C) the Government Reform and Oversight Committee of
                    the House of Representatives.

        (b) No later than 30 days after the submission of the report under
    subsection (a), the Office of Personnel Management shall issue revised
    guidelines to all Federal departments and agencies that--
                (1) limit the use of administratively uncontrollable
            overtime to employees meeting the statutory intent of section
            5545(c)(2) of title 5, United States Code; and
                (2) expressly prohibit the use of administratively
            uncontrollable overtime for--
                        (A) customary or routine work duties; and
                        (B) work duties that are primarily administrative in
                    nature, or occur in noncompelling circumstances.

        Sec. 651. <<NOTE: 5 USC 8133 note.>>  Notwithstanding section 8116
    of title 5, United States Code, and in addition to any payment made
    under 5 U.S.C. 8101 et seq., beginning in fiscal year 1997 and
    thereafter, the head

    [[Page 110 STAT. 3009-369]]

    of any department or agency is authorized to pay from appropriations
    made available to the department or agency a death gratuity to the
    personal representative (as that term is defined by applicable law) of a
    civilian employee of that department or agency whose death resulted from
    an injury sustained in the line of duty on or after August 2, 1990:
    Provided, That payments made pursuant to this section, in combination
    with the payments made pursuant to sections 8133(f) and 8134(a) of such
    title 5 and section 312 of Public Law 103-332 (108 Stat. 2537), may not
    exceed a total of $10,000 per employee.

        Sec. 653. <<NOTE: 18 USC 846 note.>>  (a) Authorization.--The
    Secretary of the Treasury is authorized to establish scientific
    certification standards for explosives detection canines, and shall
    provide, on a reimbursable basis, for the certification of explosives
    detection canines employed by Federal agencies, or other agencies
    providing explosives detection services at airports in the United
    States.

        (b) Authorization of Appropriations.--There are authorized to be
    appropriated such sums as may be necessary to carry out the purposes of
    this section.
        Sec. 654. National Repository for Information on Explosives
    Incidents and Arson.
                (a) Section 846 of title 18, United States Code, is amended
            by--
                        (1) designating the existing section as subsection
                    (a); and
                        (2) by adding the following new subsection (b) to
                    read as follows:
                ``(b) The Secretary is authorized to establish a national
            repository of information on incidents involving arson and the
            suspected criminal misuse of explosives. All Federal agencies
            having information concerning such incidents shall report the
            information to the Secretary pursuant to such regulations as
            deemed necessary to carry out the provisions of this subsection.
            The repository shall also contain information on incidents
            voluntarily reported to the Secretary by State and local
            authorities.''.
                (b) <<NOTE: 18 USC 846 note.>>  There is authorized to be
            appropriated such sums as may be necessary to carry out the
            provisions of this subsection.

        Sec. 655. Section 5(c)(1) of Public Law 102-259 (20 U.S.C.
    5603(c)(1)) is amended--
                (1) in subparagraph (A)(iii), by striking ``and'' after the
            semicolon;
                (2) in subparagraph (B), by striking the period and
            inserting ``; and''; and
                (3) by adding after subparagraph (B) the following:
                ``(C) a Trustee may serve after the expiration of the
            Trustee's term until a successor has been chosen.''.

        Sec. 656. Notwithstanding any other provision of law, the Secretary
    of the Interior, through the Bureau of Indian Affairs, may directly
    transfer to Indian tribes in North and South Dakota portable housing
    units at the Grand Forks Air Force base in North Dakota which have been
    declared excess by the Department of Defense and requested for transfer
    by the Department of the Interior.
        Sec. 657. Section 922(q) of title 18, United States Code, is amended
    to read as follows:
        ``(q)(1) The Congress finds and declares that--

    [[Page 110 STAT. 3009-370]]

                ``(A) crime, particularly crime involving drugs and guns, is
            a pervasive, nationwide problem;
                ``(B) crime at the local level is exacerbated by the
            interstate movement of drugs, guns, and criminal gangs;
                ``(C) firearms and ammunition move easily in interstate
            commerce and have been found in increasing numbers in and around
            schools, as documented in numerous hearings in both the
            Committee on the Judiciary the House of Representatives and the
            Committee on the Judiciary of the Senate;
                ``(D) in fact, even before the sale of a firearm, the gun,
            its component parts, ammunition, and the raw materials from
            which they are made have considerably moved in interstate
            commerce;
                ``(E) while criminals freely move from State to State,
            ordinary citizens and foreign visitors may fear to travel to or
            through certain parts of the country due to concern about
            violent crime and gun violence, and parents may decline to send
            their children to school for the same reason;
                ``(F) the occurrence of violent crime in school zones has
            resulted in a decline in the quality of education in our
            country;
                ``(G) this decline in the quality of education has an
            adverse impact on interstate commerce and the foreign commerce
            of the United States;
                ``(H) States, localities, and school systems find it almost
            impossible to handle gun-related crime by themselves--even
            States, localities, and school systems that have made strong
            efforts to prevent, detect, and punish gun-related crime find
            their efforts unavailing due in part to the failure or inability
            of other States or localities to take strong measures; and
                ``(I) the Congress has the power, under the interstate
            commerce clause and other provisions of the Constitution, to
            enact measures to ensure the integrity and safety of the
            Nation's schools by enactment of this subsection.

        ``(2)(A) It shall be unlawful for any individual knowingly to
    possess a firearm that has moved in or that otherwise affects interstate
    or foreign commerce at a place that the individual knows, or has
    reasonable cause to believe, is a school zone.
        ``(B) Subparagraph (A) does not apply to the possession of a
    firearm--
                ``(i) on private property not part of school grounds;
                ``(ii) if the individual possessing the firearm is licensed
            to do so by the State in which the school zone is located or a
            political subdivision of the State, and the law of the State or
            political subdivision requires that, before an individual
            obtains such a license, the law enforcement authorities of the
            State or political subdivision verify that the individual is
            qualified under law to receive the license;
                ``(iii) that is--
                        ``(I) not loaded; and
                        ``(II) in a locked container, or a locked firearms
                    rack that is on a motor vehicle;
                ``(iv) by an individual for use in a program approved by a
            school in the school zone;
                ``(v) by an individual in accordance with a contract entered
            into between a school in the school zone and the individual or
            an employer of the individual;

    [[Page 110 STAT. 3009-371]]

                ``(vi) by a law enforcement officer acting in his or her
            official capacity; or
                ``(vii) that is unloaded and is possessed by an individual
            while traversing school premises for the purpose of gaining
            access to public or private lands open to hunting, if the entry
            on school premises is authorized by school authorities.

        ``(3)(A) Except as provided in subparagraph (B), it shall be
    unlawful for any person, knowingly or with reckless disregard for the
    safety of another, to discharge or attempt to discharge a firearm that
    has moved in or that otherwise affects interstate or foreign commerce at
    a place that the person knows is a school zone.
        ``(B) Subparagraph (A) does not apply to the discharge of a
    firearm--
                ``(i) on private property not part of school grounds;
                ``(ii) as part of a program approved by a school in the
            school zone, by an individual who is participating in the
            program;
                ``(iii) by an individual in accordance with a contract
            entered into between a school in a school zone and the
            individual or an employer of the individual; or
                ``(iv) by a law enforcement officer acting in his or her
            official capacity.

        ``(4) Nothing in this subsection shall be construed as preempting or
    preventing a State or local government from enacting a statute
    establishing gun free school zones as provided in this subsection.''.

    SEC. 658. GUN BAN FOR INDIVIDUALS CONVICTED OF A MISDEMEANOR CRIME OF
                DOMESTIC VIOLENCE.

          (a) Definition.--Section 921(a) of title 18, United States Code,
    is amended by adding at the end the following:
                ``(33)(A) Except as provided in subparagraph (C), the term
            `misdemeanor crime of domestic violence' means an offense that--
                        ``(i) is a misdemeanor under Federal or State law;
                    and
                        ``(ii) has, as an element, the use or attempted use
                    of physical force, or the threatened use of a deadly
                    weapon, committed by a current or former spouse, parent,
                    or guardian of the victim, by a person with whom the
                    victim shares a child in common, by a person who is
                    cohabiting with or has cohabited with the victim as a
                    spouse, parent, or guardian, or by a person similarly
                    situated to a spouse, parent, or guardian of the victim.
                ``(B)(i) A person shall not be considered to have been
            convicted of such an offense for purposes of this chapter,
            unless--
                        ``(I) the person was represented by counsel in the
                    case, or knowingly and intelligently waived the right to
                    counsel in the case; and
                        (II) in the case of a prosecution for an offense
                    described in this paragraph for which a person was
                    entitled to a jury trial in the jurisdiction in which
                    the case was tried, either
                              (aa) the case was tried by a jury, or
                              (bb) the person knowingly and intelligently
                          waived the right to have the case tried by a jury,
                          by guilty plea or otherwise.

    [[Page 110 STAT. 3009-372]]

                ``(ii) A person shall not be considered to have been
            convicted of such an offense for purposes of this chapter if the
            conviction has been expunged or set aside, or is an offense for
            which the person has been pardoned or has had civil rights
            restored (if the law of the applicable jurisdiction provides for
            the loss of civil rights under such an offense) unless the
            pardon, expungement, or restoration of civil rights expressly
            provides that the person may not ship, transport, possess, or
            receive firearms.''.
                (b) Prohibitions.--
                (1) Section 922(d) of such title is amended--
                        (A) by striking ``or'' at the end of paragraph (7);
                        (B) by striking the period at the end of paragraph
                    (8) and inserting ``; or''; and
                        (C) by inserting after paragraph (8) the following:
                ``(9) has been convicted in any court of a misdemeanor crime
            of domestic violence.''.
                (2) Section 922(g) of such title is amended--
                        (A) by striking ``or'' at the end of paragrph (7);
                        (B) by striking the comma at the end of paragraph
                    (8) and inserting ``; or''; and
                        (C) by inserting after paragraph (8) the following:
                ``(9) who has been convicted in any court of a misdemeanor
            crime of domestic violence,''.
                (3) Section 922(s)(3)(B)(i) of such title is amended by
            inserting ``, and has not been convicted in any court of a
            misdemeanor crime of domestic violence'' before this semicolon.
          (c) Government Entities Not Excepted.--Section 925(a)(1) of such
    title is amended by inserting ``sections 922(d)(9) and 922(g)(9) and''
    after ``except for''.

    SEC. 659. THRIFT SAVINGS PLAN.

       Title I--Additional <<NOTE: Thrift Savings Investment Funds Act of
    1996. 5 USC 8401 note.>>  Investment Funds for the Thrift Savings Plan

    SEC. 101. SHORT TITLE

        This title may be cited as the ``Thrift Savings Investment Funds Act
    of 1996''.

        sec. 102. additional investment funds for the thrift savings plan

        Section 8438 of title 5, United States Code, is amended--
                (1) in subsection (a)--
                        (A) by redesignating paragraphs (5) through (8) as
                    paragraphs (6) through (9), respectively;
                        (B) by inserting after paragraph (4) the following
                    new paragraph:
                ``(5) the term `International Stock Index Investment Fund'
            means the International Stock Index Investment Fund established
            under subsection (b)(1)(E);'';
                        (C) in paragraph (8) (as redesignated by
                    subparagraph (A) of this paragraph) by striking out
                    ``and'' at the end thereof;
                        (D) in paragraph (9) (as redesignated by
                    subparagraph (A) of this paragraph)--

    [[Page 110 STAT. 3009-373]]

                              (i) by striking out ``paragraph (7)(D)'' in
                          each place it appears and inserting in each such
                          place ``paragraph (8)(D)''; and
                              (ii) by striking out the period and inserting
                          in lieu thereof a semicolon and ``and''; and
                        (E) by adding at the end thereof the following new
                    paragraph:
                ``(10) the term `Small Capitalization Stock Index Investment
            Fund' means the Small Capitalization Stock Index Investment Fund
            established under subsection (b)(1)(D).''; and
                (2) in subsection (b)--
                        (A) in paragraph (1)--
                              (i) in subparagraph (B) by striking out
                          ``and'' at the end thereof;
                              (ii) in subparagraph (C) by striking out the
                          period and inserting in lieu thereof a semicolon;
                          and
                              (iii) by adding at the end thereof the
                          following new subparagraphs:
                        ``(D) a Small Capitalization Stock Index Investment
                    Fund as provided in paragraph (3); and
                        ``(E) an International Stock Index Investment Fund
                    as provided in paragraph (4).''; and
                        (B) by adding at the end thereof the following new
                    paragraphs:
                ``(3)(A) The Board shall select an index which is a commonly
            recognized index comprised of common stock the aggregate market
            value of which represents the United States equity markets
            excluding the common stocks included in the Common Stock Index
            Investment Fund.
                ``(B) The Small Capitalization Stock Index Investment Fund
            shall be invested in a portfolio designed to replicate the
            performance of the index in subparagraph (A). The portfolio
            shall be designed such that, to the extent practicable, the
            percentage of the Small Capitalization Stock Index Investment
            Fund that is invested in each stock is the same as the
            percentage determined by dividing the aggregate market value of
            all shares of that stock by the aggregate market value of all
            shares of all stocks included in such index.
                ``(4)(A) The Board shall select an index which is a commonly
            recognized index comprised of stock the aggregate market value
            of which is a reasonably complete representation of the
            international equity markets excluding the United States equity
            markets.
                ``(B) The International Stock Index Investment Fund shall be
            invested in a portfolio designed to replicate the performance of
            the index in subparagraph (A). The portfolio shall be designed
            such that, to the extent practicable, the percentage of the
            International Stock Index Investment Fund that is invested in
            each stock is the same as the percentage determined by dividing
            the aggregate market value of all shares of that stock by the
            aggregate market value of all shares of all stocks included in
            such index.''.

    SEC. 103. ACKNOWLEDGEMENT OF INVESTMENT RISK

        Section 8439(d) of title 5, United States Code, is amended by
    striking out ``Each employee, Member, former employee, or former Member
    who elects to invest in the Common Stock Index

    [[Page 110 STAT. 3009-374]]

    Investment Fund or the Fixed Income Investment Fund described in
    paragraphs (1) and (3),'' and inserting in lieu thereof ``Each employee,
    Member, former employee, or former Member who elects to invest in the
    Common Stock Index Investment Fund, the Fixed Income Investment Fund,
    the International Stock Index Investment Fund, or the Small
    Capitalization Stock Index Investment Fund, defined in paragraphs (1),
    (3), (5), and (10),''.

    SEC. 104. <<NOTE: 5 USC 8438 note.>>  EFFECTIVE DATE

        This title shall take effect on the date of enactment of this Act,
    and the Funds established under this title shall be offered for
    investment at the earliest practicable election period (described in
    section 8432(b) of title 5, United States Code) as determined by the
    Executive Director in regulations.

    Title II--Thrift Savings Accounts Liquidity <<NOTE: Thrift Savings Plan
    Act of 1996.>>

    SEC. 201. <<NOTE: 5 USC 8401 note.>>  SHORT TITLE

        This title may be cited as the ``Thrift Savings Plan Act of 1996''.

       sec. 202. notice to spouses for in-service withdrawals; de minimus
             accounts; civil service retirement system participants

        Section 8351(b) of title 5, United States Code, is amended--
                (1) in paragraph (5)--
                        (A) in subparagraph (B)--
                              (i) by striking out ``An election, change of
                          election, or modification (relating to the
                          commencement date of a deferred annuity)'' and
                          inserting in lieu thereof ``An election or change
                          of election'';
                              (ii) by inserting ``or withdrawal'' after
                          ``and a loan'';
                              (iii) by inserting ``and (h)'' after
                          ``8433(g)'';
                              (iv) by striking out ``the election, change of
                          election, or modification'' and inserting in lieu
                          thereof ``the election or change of election'';
                          and
                              (v) by inserting ``or withdrawal'' after ``for
                          such loan''; and
                        (B) in subparagraph (D)--
                              (i) by inserting ``or withdrawals'' after ``of
                          loans''; and
                              (ii) by inserting ``or (h)'' after
                          ``8433(g)''; and
                (2) in paragraph (6)--
                        (A) by striking out ``$3,500 or less'' and inserting
                    in lieu thereof ``less than an amount that the Executive
                    Director prescribes by regulation''; and
                        (B) by striking out ``unless the employee or Member
                    elects, at such time and otherwise in such manner as the
                    Executive Director prescribes, one of the options
                    available under subsection (b)''.

    SEC. 203. IN-SERVICE WITHDRAWALS; WITHDRAWAL ELECTIONS, FEDERAL
                EMPLOYEES RETIREMENT SYSTEM PARTICIPANTS

        (a) In General.--Section 8433 of title 5, United States Code, is
    amended--
                (1) by striking out subsections (b) and (c) and inserting in
            lieu thereof the following:

    [[Page 110 STAT. 3009-375]]

        ``(b) Subject to section 8435 of this title, any employee or Member
    who separates from Government employment is entitled and may elect to
    withdraw from the Thrift Savings Fund the balance of the employee's or
    Member's account as--
                ``(1) an annuity;
                ``(2) a single payment;
                ``(3) 2 or more substantially equal payments to be made not
            less frequently than annually; or
                ``(4) any combination of payments as provided under
            paragraphs (1) through (3) as the Executive Director may
            prescribe by regulation.

        ``(c)(1) In addition to the right provided under subsection (b) to
    withdraw the balance of the account, an employee or Member who separates
    from Government service and who has not made a withdrawal under
    subsection (h)(1)(A) may make one withdrawal of any amount as a single
    payment in accordance with subsection (b)(2) from the employee's or
    Member's account.
        ``(2) An employee or Member may request that the amount withdrawn
    from the Thrift Savings Fund in accordance with subsection (b)(2) be
    transferred to an eligible retirement plan.
        ``(3) The Executive Director shall make each transfer elected under
    paragraph (2) directly to an eligible retirement plan or plans (as
    defined in section 402(c)(8) of the Internal Revenue Code of 1986)
    identified by the employee, Member, former employee, or former Member
    for whom the transfer is made.
        ``(4) A transfer may not be made for an employee, Member, former
    employee, or former Member under paragraph (2) until the Executive
    Director receives from that individual the information required by the
    Executive Director specifically to identify the eligible retirement plan
    or plans to which the transfer is to be made.'';
                (2) in subsection (d)--
                        (A) in paragraph (1) by striking out ``Subject to
                    paragraph (3)(A)'' and inserting in lieu thereof
                    ``Subject to paragraph (3)'';
                        (B) by striking out paragraph (2) and redesignating
                    paragraph (3) as paragraph (2); and
                        (C) in paragraph (2) (as redesignated under
                    subparagraph (B) of this paragraph)--
                              (i) in subparagraph (A) by striking out ``(A)
                          by striking out ``(A)''; and
                              (ii) by striking out subparagraph (B);
                (3) in subsection (f)(1)--
                        (A) by striking out ``$3,500 or less'' and inserting
                    in lieu thereof ``less than an amount that the Executive
                    Director prescribes by regulation; and
                        (B) by striking out ``unless the employee or Member
                    elects, at such time and otherwise in such manner as the
                    Executive Director prescribes, one of the options
                    available under subsection (b), or'' and inserting a
                    comma;
                (4) in subsection (f)(2)--
                        (A) by striking out ``February 1'' and inserting in
                    lieu thereof ``April 1'';
                        (B) in subparagraph (A)--
                              (i) by striking out ``65'' and inserting in
                          lieu thereof ``70\1/2\''; and
                              (ii) by inserting ``or'' after the semicolon;
                        (C) by striking out subparagraph (B); and

    [[Page 110 STAT. 3009-376]]

                        (D) by redesignating subparagraph (C) as
                    subparagraph (B);
                (5) in subsection (g)--
                        (A) in paragraph (1) by striking out ``after
                    December 31, 1987, and'', and by adding at the end of
                    the paragraph the following sentence: ``Before a loan is
                    issued, the Executive Director shall provide in writing
                    the employee or Member with appropriate information
                    concerning the cost of the loan relative to other
                    sources of financing, as well as the lifetime cost of
                    the loan, including the difference in interest rates
                    between the funds offered by the Thrift Savings Fund,
                    and any other effect of such loan on the employee's or
                    Member's final account balance.''; and
                        (B) by striking out paragraph (2) and redesignating
                    paragraphs (3) through (5) as paragraphs (2) through
                    (4), respectively; and
                (6) by adding after subsection (g) the following new
            subsection:
          ``(h)(1) An employee or Member may apply, before separation, to
    the Board for permission to withdraw an amount from the employee's or
    Member's account based upon--
                ``(A) the employee or Member having attained age 59\1/2\; or
                ``(B) financial hardship.
          ``(2) A withdrawal under paragraph (1)(A) shall be available to
    each eligible participant one time only.
          ``(3) A withdrawal under paragraph (1)(B) shall be available only
    for an amount not exceeding the value of that portion of such account
    which is attributable to contributions made by the employee or Member
    under section 8432(a) of this title.
          ``(4) Withdrawals under paragraph (1) shall be subject to such
    other conditions as the Executive Director may prescribe by regulation.
          ``(5) A withdrawal may not be made under this subsection unless
    the requirements of section 8435(e) of this title are satisfied.''.
          (b) <<NOTE: 5 USC 8433 note.>>  Invalidity of Certain Prior
    Elections.--Any election made under section 8433(b)(2) of title 5,
    United States Code (as in effect before the effective date of this
    title), with respect to an annuity which has not commenced before the
    implementation date of this title as provided by regulation by the
    Executive Director in accordance with section 207 of this title, shall
    be invalid.

       sec. 204. survivor annuities for former spouses; notice to federal
         employees retirement system spouses for in-service withdrawals

          Section 8435 of title 5, United States Code, is amended--
                (1) in subsection (a)(1)(A)--
                        (A) by striking out ``may make an election under
                    subsection (b)(3) or (b)(4) or section 8433 of this
                    title or change an election previously made under
                    subsection (b)(1) or (b)(2) of such section'' and
                    inserting in lien thereof ``may withdraw all or part of
                    a Thrift Savings Fund account under subsection (b) (2),
                    (3), or (4) of section 8433 of this title or change a
                    withdrawal election''; and
                        (B) by adding at the end thereof ``A married
                    employee or Member (or former employee or Member) may
                    make a withdrawal from a Thrift Savings Fund account
                    under

    [[Page 110 STAT. 3009-377]]

                    subsection (c)(1) of section 8433 of this title only if
                    the employee or Member (or former employee or Member)
                    satisfies the requirements of subparagraph (B).'';
                (2) in subsection (c)--
                        (A) in paragraph (1)--
                              (i) by striking out ``An election, change of
                          election, or modification of the commencement date
                          of a deferred annuity'' and inserting in lieu
                          thereof ``An election or change of election''; and
                (ii) by striking out ``modification, or transfer'' and
            inserting in lien thereof ``or transfer''; and
                        (B) in paragraph (2) in the matter following
                    subparagraph (B)(ii) by striking out ``modification,'';
                (3) in subsection (e)--
                        (A) in paragraph (1)--
                              (i) in subparagraph (A)--
                                        (I) by inserting ``or withdrawal''
                                    after ``A loan'';
                                        (II) by inserting ``and (h)'' after
                                    ``8433(g)''; and
                                        (III) by inserting ``or withdrawal''
                                    after ``such loan'';
                              (ii) in subparagraph (B) by inserting ``or
                          withdrawal'' after ``loan''; and
                              (iii) in subparagraph (C)--
                                        (I) by inserting ``or withdrawal''
                                    after ``to a loan''; and
                                        (II) by inserting ``or withdrawal''
                                    after ``for such loan''; and
                        (B) in paragraph (2)--
                              (i) by inserting ``or withdrawal'' after
                          ``loan''; and
                              (ii) by inserting ``and (h)'' after
                          ``8344(g)''; and
                (4) in subsection (g)--
                        (A) by inserting ``or withdrawals'' after ``loans'';
                    and
                        (B) by inserting ``and (h)'' after ``8344(g)''.

    SEC. 205. DE MINIMUS ACCOUNTS RELATING TO THE JUDICIARY

          (a) Justices and Judges.--Section 8440a(b)(7) of title 5, United
    States Code, is amended--
                (1) by striking out ``$3,500 or less'' and inserting in lieu
            thereof ``less than an amount that the Executive Director
            prescribes by regulation''; and
                (2) by striking out ``unless the justice or judge elects, at
            such time and otherwise in such manner as the Executive Director
            prescribes, one of the options available under section
            8433(b)''.
          (b) Bankruptcy Judges and Magistrates.--Section 8440b(b) of title
    5, United States Code, is amended--
                (1) in paragraph (7) in the first sentence by inserting ``of
            the distribution'' after ``equal to the amount''; and
                (2) in paragraph (8)--
                        (A) by striking out ``$3,500 or less'' and inserting
                    in lieu thereof ``less than an amount that the Executive
                    Director prescribes by regulation''; and
                        (B) by striking out ``unless the bankruptcy judge or
                    magistrate elects, at such time and otherwise in such
                    manner as the Executive Director prescribes, one of the
                    options available under subsection (b)''.

    [[Page 110 STAT. 3009-378]]

          (c) Federal Claims Judges.--Section 8440c(b) of title 5, United
    States Code, is amended--
                (1) in paragraph (7) in the first sentence by inserting ``of
            the distribution'' after ``equal to the amount''; and
                (2) in paragraph (8)--
                        (A) by striking out ``$3,500 or less'' and inserting
                    in lieu thereof ``less than an amount that the Executive
                    Director prescribes by regulation''; and
                        (B) by striking out ``unless the judge elects, at
                    such time and otherwise in such manner as the Executive
                    Director prescribes, one of the options available under
                    section 8433(b)''.

    SEC. 206. DEFINITION OF BASIC PAY

          (a) In General.--(1) Section 8401(4) of title 5, United States
    Code, is amended by striking out ``except as provided in subchapter III
    of this chapter,''.
          (2) Section 8431 of title 5, United States Code, is repealed.
          (b) Technical and Conforming Amendments.--(1) The table of
    sections for chapter 84 of title 5, United States Code, is amended by
    striking out the item relating to section 8431.
          (2) Section 5545a(h)(2)(A) of title 5, United States Code, is
    amended by striking out ``8431,''.
          (3) Section 615(f) of the Treasury, Postal Service, and General
    Government Appropriations Act, 1996 (Public Law 104-52; 109 Stat. 500; 5
    U.S.C. 5343 note) is amended by striking out ``section 8431 of title 5,
    United States Code,''.

    SEC. 207. <<NOTE: 5 USC 5545a note.>>  EFFECTIVE DATE
          This title shall take effect on the date of the enactment of this
    Act and withdrawals and elections as provided under the amendments made
    by this title shall be made at the earliest practicable date as
    determined by the Executive Director in regulations.
          Sec. 660. Notwithstanding Section 613, interagency financing is
    authorized to carry out the purposes of the National Bioethics Advisory
    Commission.
          Sec. 661. (a) Designation.--The United States courthouse to be
    constructed at 111 South 18th Plaza, Omaha, Nebraska, shall be known and
    designated as the ``Roman L. Hruska United States Courthouse''.
          (b) References.--Any reference in a law, map, regulation,
    document, paper, or other record of the United States to the United
    States courthouse referred to in section 1 shall be deemed to be a
    reference to the ``Roman L. Hruska United States Courthouse''.
          Sec. 662. (a) Provisions Relating to Title 39, United States
    Code.--
                ``(1) Appointment and removal of inspector general.--Section
            202 of title 39, United States Code, is amended by adding at the
            end the following:
          ``(e)(1) The Governors shall appoint and shall have the power to
    remove the Inspector General.
          ``(2) The Inspector General shall be appointed--
                ``(A) for a term of 7 years;
                ``(B) without regard to political affiliation; and
                ``(C) solely on the basis of integrity and demonstrated
            ability in accounting, auditing, financial analysis, law,
            management analysis, public administration, or investigations.

    [[Page 110 STAT. 3009-379]]

          ``(3) The Inspector General may at any time be removed upon the
    written concurrence of at least 7 Governors, but only for cause. Nothing
    in this subsection shall be considered to exempt the Governors from the
    requirements of section 8G(e) of the Inspector General Act of 1978.''.
                (2) Definition.--Section 102 of title 39, United States
            Code, is amended--
                        (A) by striking ``and'' at the end of paragraph (2);
                        (B) by striking the period at the end of paragraph
                    (3) and inserting ``; and''; and
                        (C) by adding at the end the following:
                ``(4) `Inspector General' means the Inspector General
            appointed under section 202(e) of this title.''.
                (3) <<NOTE: 39 USC 2009 note.>>  Separate item in annual
            budget.--For purposes of the fifth sentence of section 2009 of
            title 39, United States Code, the operations of the Office of
            Inspector General of the United States Postal Service shall be
            considered a major type of activity.
          (b) Amendments to the Inspector General Act of 1978.--
                (1) Governors as head of the postal service.--Section
            8G(a)(4) of the Inspector General Act of 1978 (5 U.S.C. App.) is
            amended by striking ``except that'' and all that follows through
            the semicolon and inserting ``except that--
                        ``(A) with respect to the National Science
                    Foundation, such term means the National Science Board;
                    and
                        ``(B) with respect to the United States Postal
                    Service, such term means the Governors (within the
                    meaning of section 102(3) of title 39, United States
                    Code);''.
                (2) Special rules relating to the united states postal
            service.--Subsection (f) of section 8G of such Act is amended to
            read as follows:
          ``(f)(1) For purposes of carrying out subsection (c) with respect
    to the United States Postal Service, the appointment provisions of
    section 202(e) of title 39, United States Code, shall be applied.
          ``(2) In carrying out the duties and responsibilities specified in
    this Act, the Inspector General of the United States Postal Service
    (hereinafter in this subsection referred to as the `Inspector General')
    shall have oversight responsibility for all activities of the Postal
    Inspection Service, including any internal investigation performed by
    the Postal Inspection Service. The Chief Postal Inspector shall promptly
    report the significant activities being carried out by the Postal
    Inspection Service to such Inspector General.
          ``(3)(A)(i) Notwithstanding subsection (d), the Inspector General
    shall be under the authority, direction, and control of the Governors
    with respect to audits or investigations, or the issuance of subpoenas,
    which require access to sensitive information concerning--
                ``(I) ongoing civil or criminal investigations or
            proceedings;
                ``(II) undercover operations;
                ``(III) the identity of confidential sources, including
            protected witnesses;
                ``(IV) intelligence or counterintelligence matters; or
                ``(V) other matters the disclosure of which would constitute
            a serious threat to national security.
          ``(ii) With respect to the information described under clause (i),
    the Governors may prohibit the Inspector General from carrying out or
    completing any audit or investigation, or from issuing any subpoena,
    after such Inspector General has decided to initiate,

    [[Page 110 STAT. 3009-380]]

    carry out, or complete such audit or investigation or to issue such
    subpoena, if the Governors determine that such prohibition is necessary
    to prevent the disclosure of any information described under clause (i)
    or to prevent the significant impairment to the national interests of
    the United States.
          ``(iii) If the Governors exercise any power under clause (i) or
    (ii), the Governors shall notify the Inspector General in writing
    stating the reasons for such exercise. Within 30 days after receipt of
    any such notice, the Inspector General shall transmit a copy of such
    notice to the Committee on Governmental Affairs of the Senate and the
    Committee on Government Reform and Oversight of the House of
    Representatives, and to other appropriate committees or subcommittees of
    the Congress.
          ``(B) In carrying out the duties and responsibilities specified in
    this Act, the Inspector General--
                ``(i) may initiate, conduct and supervise such audits and
            investigations in the United States Postal Service as the
            Inspector General considers appropriate; and
                ``(ii) shall give particular regard to the activities of the
            Postal Inspection Service with a view toward avoiding
            duplication and insuring effective coordination and cooperation.
          ``(C) Any report required to be transmitted by the Governors to
    the appropriate committees or subcommittees of the Congress under
    section 5(d) shall also be transmitted, within the seven-day period
    specified under such section, to the Committee on Governmental Affairs
    of the Senate and the Committee on Government Reform and Oversight of
    the House of Representatives.
          ``(3) Nothing in this Act shall restrict, eliminate, or otherwise
    adversely affect any of the rights, privileges, or
    benefits of either employees of the United States Postal Service, or
    labor organizations representing employees of the United States Postal
    Service, under chapter 12 of title 39, United States Code, the National
    Labor Relations Act, any handbook or manual affecting employee labor
    relations with the United States Postal Service, or any collective
    bargaining agreement.
          ``(4) As used in this subsection, the term `Governors' has the
    meaning given such term by section 102(3) of title 39, United States
    Code.''.
                (3) Technical correction.--The Inspector General Act of 1978
            is amended by <<NOTE: 5 USC app.>>  redesignating the second
            section which is designated as section 8G as section 8H.
          (c) Provisions Relating to Compensation.--
                (1) Inspector general.--Section 5315 of title 5, United
            States Code, is amended by adding at the end the following:
                ``Inspector General, United States Postal Service.''.

    The amendment <<NOTE: 5 USC 5315 note.>>  made by the preceding sentence
    shall apply notwithstanding section 410 or any other provision of title
    39, United States Code.
                (2) Officers and employees of the office of inspector
            general of the united states postal service; postal
            inspectors.--
                        (A) In general.--Section 1003 of title 39, United
                    States Code, is amended--
                              (i) by redesignating subsection (b) as
                          subsection (d); and
                              (ii) by inserting after subsection (a) the
                          following:

    [[Page 110 STAT. 3009-381]]

          ``(b) Compensation and benefits for all officers and employees
    serving in or under the Office of Inspector General of the United States
    Postal Service shall be maintained on a standard of comparability to the
    compensation and benefits paid for comparable levels of work in the
    respective Offices of Inspector General of the various establishments
    named in section 11(2) of the Inspector General Act of 1978.
          ``(c) Compensation and benefits for all Postal Inspectors shall be
    maintained on a standard of comparability to the compensation and
    benefits paid for comparable levels of work in the executive branch of
    the Government outside of the Postal Service. As used in this
    subsection, the term `Postal Inspector' included any agent to whom any
    investigative powers are granted under section 3061 of title 18.''.
                        (B) Conforming amendment.--The first sentence of
                    section 1003(a) of title 39, United States Code, is
                    amended by striking ``chapters 2 and 12 of this title''
                    and inserting ``chapters 2 and 12 of this title, section
                    8G of the Inspector General Act of 1978,''.
          (d) <<NOTE: 39 USC 2802 note.>>  Strategic Plans.--
                (1) Office of inspector general of the united states postal
            service.--
                        (A) In general.--Strategic plans shall be prepared
                    under this paragraph addressing staffing requirements,
                    general goals and objectives for major functions and
                    operations of the Office of Inspector General of the
                    United States Postal Service, and how goals and
                    objectives of the Office are to be achieved, including a
                    description of operational processes, skills and
                    technology, and the human, capital, information, and
                    other resources required to meet those goals and
                    objectives.
                        (B) Specific requirements.--Plans under this
                    paragraph--
                              (i) shall be prepared by the Inspector General
                          of the United States Postal Service;
                              (ii) shall each cover a 5-year period (the
                          beginning and ending dates of which shall be
                          specified in each such plan); and
                              (iii) shall be included, as part of the annual
                          budget required under section 2009 of title 39,
                          United States Code, at least every 3 years.
                        (C) First submission.--The first plan under this
                    paragraph shall be prepared in time to be included with
                    the annual budget under section 2009 of title 39, United
                    States Code, next due to be submitted after the end of
                    the 6-month period beginning on the date of the
                    appointment of the first Inspector General to be
                    appointed pursuant to the amendments made by this
                    section.
                (2) Postal inspection service.--The Chief Postal Inspector
            shall, with respect to the Postal Inspection Service, prepare a
            strategic plan similar in content to that required under
            paragraph (1)(A) with respect to the Office of Inspector General
            of the United States Postal Service. Such plan shall be prepared
            in time to be included with the annual budget under section 2009
            of such title 39 next due to be submitted after the end of the
            30-day period beginning on the date of the enactment of this
            Act.

    [[Page 110 STAT. 3009-382]]

          (e) <<NOTE: 39 USC 201 note.>>  First Appointment; Transfers;
    Transition Provision.--
                (1) First appointment.--The first Inspector General of the
            United States Postal Service appointed pursuant to the
            amendments made by this section shall be appointed before the
            end of the 90-day period beginning on the date of the enactment
            of this Act.
                (2) Transfers.--
                        (A) In general.--All measures described in section
                    8G(b) of the Inspector General Act of 1978 necessary to
                    establish an Office of Inspector General within the
                    United States Postal Service pursuant to this section,
                    including all appropriate transfers, shall occur--
          (i) no earlier than the date the appointment under paragraph (1)
    is made; and
          (ii) no later than 60 days after the date the appointment under
    paragraph (1) is made.
                        (B) Provisions relating to personnel.--
          (i) Consultation.--Decisions concerning which personnel are to be
    transferred pursuant to subparagraph (A) shall be made by the Governors
    (within the meaning of section 102(3) of title 39, United States Code)
    in consultation with the Inspector General appointed under paragraph
    (1).
          (ii) Transferred personnel.--Personnel transferred pursuant to
    subparagraph (A) shall, to the extent not inconsistent with other
    provisions of this subsection, be transferred in accordance with
    applicable laws and regulations relating to the transfer of functions
    within the United States Postal Service, except that, notwithstanding
    any provision of section 1003(b) of title 39, United States Code, as
    amended by this section, the classification and compensation of such
    personnel shall not be reduced, by reason of having been transferred,
    for 1 year after being so transferred.
                (3) Transition provision.--The Chief Postal Inspector may
            continue to serve as Inspector General of the United States
            Postal Service until the date on which an Inspector General is
            appointed under paragraph (1) or, if earlier, the end of the
            period referred to in such paragraph. Compensation for any
            service under this paragraph shall be determined as if this
            section had not been enacted.
          (f) Technical and Conforming Amendments.--
                (1) Section 410(b) of title 39, United States Code, is
            amended--
                        (A) by striking ``and'' at the end of paragraph (9);
                    and
                        (B) by amending paragraph (10) to read as follows:
                    ``(10) the Inspector General Act of 1978; and''
                (2)(A) Section 204 of such title 39 is amended--
          (i) by amending the section heading to read as follows:

    ``Sec. 204. General Counsel; Judicial Officer; Chief Postal Inspector'';

          (ii) in the first sentence by striking ``and a Judicial Officer.''
    and inserting ``a Judicial Officer, and a Chief Postal Inspector.'';
          (iii) in the second sentence by striking ``and the Judicial
    Officer'' and inserting ``the Judicial Officer, and the Chief Postal
    Inspector''; and
          (iv) by adding at the end the following: ``The Chief Postal
    Inspector shall report to, and be under the general supervision

    [[Page 110 STAT. 3009-383]]

    of, the Postmaster General. The Postmaster General shall promptly notify
    the Governors and both Houses of Congress in writing if he or she
    removes the Chief Postal Inspector or transfers the Chief Postal
    Inspector to another position or location within the Postal Service, and
    shall include in any such notification the reasons for the removal or
    transfer.''.
                (B) The table of sections for chapter 2 of such title 39 is
            amended by striking the item relating to section 204 and
            inserting the following:

    ``204. General Counsel; Judicial Officer; Chief Postal
                          Inspector.''.

          Sec. 663. <<NOTE: 5 USC 5597 note.>>  Voluntary Separation
    Incentives for Employees of Certain Federal Agencies.--(a)
    Definitions.--For the purposes of this section--
                (1) the term ``agency'' means any Executive agency (as
            defined in section 105 of title 5, United States Code), other
            than an Executive agency (except an agency receiving such
            authority in the Department of Transportation Appropriations
            Act, 1997) that is authorized by any other provision of this Act
            or any other Act to provide voluntary separation incentive
            payments during all, or any part of, fiscal year 1997; and
                (2) the term ``employee'' means an employee (as defined by
            section 2105 of title 5, United States Code) who is employed by
            an agency, is serving under an appointment without time
            limitation, and has been currently employed for a continuous
            period of at least 3 years, but does not include--
                        (A) a reemployed annuitant under subchapter III of
                    chapter 83 or chapter 84 of title 5, United States Code,
                    or another retirement system for employees of the
                    agency;
                        (B) an employee having a disability on the basis of
                    which such employee is or would be eligible for
                    disability retirement under subchapter III of chapter 83
                    or chapter 84 of title 5, United States Code, or another
                    retirement system for employees of the agency;
                        (C) an employee who is in receipt of a specific
                    notice of involuntary separation for misconduct or
                    unacceptable performance;
                        (D) an employee who, upon completing an additional
                    period of service as referred to in section
                    3(b)(2)(B)(ii) of the Federal Workforce Restructuring
                    Act of 1994 (5 U.S.C. 5597 note), would qualify for a
                    voluntary separation incentive payment under section 3
                    of such Act;
                        (E) an employee who has previously received any
                    voluntary separation incentive payment by the Federal
                    Government under this section or any other authority and
                    has not repaid such payment;
                        (F) an employee covered by statutory reemployment
                    rights who is on transfer to another organization; or
                        (G) any employee who, during the twenty four month
                    period preceding the date of separation, has received a
                    recruitment or relocation bonus under section 5753 of
                    title 5, United States Code, or who, within the twelve
                    month period preceding the date of separation, received
                    a retention allowance under section 5754 of title 5,
                    United States Code.
          (b) Agency Strategic Plan.--
                (1) In general.--The head of each agency, prior to
            obligating any resources for voluntary separation incentive
            payments,

    [[Page 110 STAT. 3009-384]]

            shall submit to the House and Senate Committees on
            Appropriations and the Committee on Governmental Affairs of the
            Senate and the Committee on Government Reform and Oversight of
            the House of Representatives a strategic plan outlining the
            intended use of such incentive payments and a proposed
            organizational chart for the agency once such incentive payments
            have been completed.
                (2) Contents.--The agency's plan shall include--
                        (A) the positions and functions to be reduced or
                    eliminated, identified by organizational unit,
                    geographic location, occupational category and grade
                    level;
                        (B) the number and amounts of voluntary separation
                    incentive payments to be offered; and
                        (C) a description of how the agency will operate
                    without the eliminated positions and functions.
          (c) Authority To Provide Voluntary Separation Incentive
    Payments.--
                (1) In general.--A voluntary separation incentive payment
            under this section may be paid by an agency to any employee only
            to the extent necessary to eliminate the positions and functions
            identified by the strategic plan.
                (2) Amount and treatment of payments.--A voluntary
            separation incentive payment--
                        (A) shall be paid in a lump sum after the employee's
                    separation;
                        (B) shall be paid from appropriations or funds
                    available for the payment of the basic pay of the
                    employees;
                        (C) shall be equal to the lesser of--
                              (i) an amount equal to the amount the employee
                          would be entitled to receive under section 5595(c)
                          of title 5, United States Code; or
                              (ii) an amount determined by the agency head
                          not to exceed $25,000;
                        (D) may not be made except in the case of any
                    qualifying employee who voluntarily separates (whether
                    by retirement or resignation) before December 31, 1997;
                        (E) shall not be a basis for payment, and shall not
                    be included in the computation, of any other type of
                    Government benefit; and
                        (F) shall not be taken into account in determining
                    the amount of any severance pay to which the employee
                    may be entitled under section 5595 of title 5, United
                    States Code, based on any other separation.
          (d) Additional Agency Contributions to the Retirement Fund.--
                (1) In general.--In addition to any other payments which it
            is required to make under subchapter III of chapter 83 of title
            5, United States Code, an agency shall remit to the Office of
            Personnel Management for deposit in the Treasury of the United
            States to the credit of the Civil Service Retirement and
            Disability Fund an amount equal to 15 percent of the final basic
            pay of each employee of the agency who is covered under
            subchapter III of chapter 83 or chapter 84 of title 5, United
            States Code, to whom a voluntary separation incentive has been
            paid under this section.
                (2) Definition.--For the purpose of paragraph (1), the term
            ``final basic pay'', with respect to an employee, means

    [[Page 110 STAT. 3009-385]]

            the total amount of basic pay which would be payable for a year
            of service by such employee, computed using the employee's final
            rate of basic pay, and, if last serving on other than a full-
            time basis, with appropriate adjustment therefor.
          (e) Effect of Subsequent Employment With the Government.--An
    individual who has received a voluntary separation incentive payment
    under this section and accepts any employment for compensation with the
    Government of the United States, or who works for any agency of the
    United States Government through a personal services contract, within 5
    years after the date of the separation on which the payment is based
    shall be required to pay, prior to the individual's first day of
    employment, the entire amount of the incentive payment to the agency
    that paid the incentive payment.
          (f) Reduction of Agency Employment Levels.--
                (1) In general.--The total number of funded employee
            positions in the agency shall be reduced by one position for
            each vacancy created by the separation of any employee who has
            received, or is due to receive, a voluntary separation incentive
            payment under this section. For the purposes of this subsection,
            positions shall be counted on a full-time-equivalent basis.
                (2) Enforcement.--The President, through the Office of
            Management and Budget, shall monitor the agency and take any
            action necessary to ensure that the requirements of this
            subsection are met.
          (g) Effective Date.--This section shall take effect October 1,
    1996.

    SECTION 664. ELECTRONIC BENEFIT TRANSFER PILOT.

          Title 31, United States Code, is amended by inserting after
    section 3335 the following new section:

    ``Sec. 3336. Electronic benefit transfer pilot

          ``(a) The Congress finds that:
                ``(1) Electronic benefit transfer (EBT) is a safe, reliable,
            and economical way to provide benefit payments to individuals
            who do not have an account at a financial institution.
                ``(2) The designation of financial institutions as financial
            agents of the Federal Government for EBT is an appropriate and
            reasonable use of the Secretary's authority to designate
            financial agents.
                ``(3) A joint federal-state EBT system offers convenience
            and economies of scale for those states (and their citizens)
            that wish to deliver state-administered benefits on a single
            card by entering into a partnership with the federal government.
                ``(4) The Secretary's designation of a financial agent to
            deliver EBT is a specialized service not available through
            ordinary business channels and may be offered to the states
            pursuant to section 6501 et seq. of this title.
          ``(b) The Secretary shall continue to carry out the existing EBT
    pilot to disburse benefit payments electronically to recipients who do
    not have an account at a financial institution, which shall include the
    designation of one or more financial institution as a financial agent of
    the Government, and the offering to the participating states of the
    opportunity to contract with the financial agent

    [[Page 110 STAT. 3009-386]]

    selected by the Secretary, as described in the Invitation for
    Expressions of Interest to Acquire EBT Services for the Southern
    Alliance of States dated March 9, 1995, as amended as of June 30, 1995,
    July 7, 1995, and August 1, 1995.
          [``(c) The selection and designation of financial agents, the
    design of the pilot program, and any other matter associated with or
    related to the EBT pilot described in subsection (b) shall not be
    subject to judicial review.'']

    SECTION 2. DESIGNATION OF FINANCIAL AGENTS

          1. 12 U.S.C. 90 is amended by adding at the end thereof the
    following:

    ``Notwithstanding the Federal Property and Administrative Services Act
    of 1949, as amended, the Secretary may select associations as financial
    agents in accordance with any process the Secretary deems appropriate
    and their reasonable duties may include the provision of electronic
    benefit transfer services (including State-administered benefits with
    the consent of the States), as defined by the Secretary.''.
          2. Make conforming amendments to 12 U.S.C. 265, 266, 391, 1452(d),
    1767, 1789a, 2013, 2122 and to 31 U.S.C. 3122 and 3303.

              TITLE VII--COUNTER-TERRORISM AND DRUG LAW ENFORCEMENT

                           DEPARTMENT OF THE TREASURY

                              Departmental Offices

                              salaries and expenses

          For an additional amount for the necessary expenses of the Office
    of Foreign Assets Control, $288,000: Provided, That of the amount
    provided, $288,000 is designated by Congress as an emergency requirement
    pursuant to section 251(b)(2)(D)(i) of the Balanced Budget and Emergency
    Deficit Control Act of 1985, as amended.

                           Office of Inspector General

                              salaries and expenses

          For an additional amount for the necessary expenses of the Office
    of Inspector General, $34,000, to remain available until expended:
    Provided, That of the amount provided, $34,000 is designated by Congress
    as an emergency requirement pursuant to section 251(b)(2)(D)(i) of the
    Balanced Budget and Emergency Deficit Control Act of 1985, as amended.

                              counterterrorism fund

          For necessary expenses, as determined by the Secretary,
    $15,000,000, to remain available until expended, to reimburse any
    Department of the Treasury organization for the costs of providing
    support to counter, investigate, or prosecute terrorism, including
    payment of rewards in connection with these activities: Provided, That
    the entire amount of this appropriation shall be available only to the
    extent that an official budget request for a specific dollar amount,
    that includes designation of the entire amount of

    [[Page 110 STAT. 3009-387]]

    the request as an emergency requirement as defined in the Balanced
    Budget and Emergency Deficit Control Act of 1985, is transmitted by the
    President to Congress: Provided further, That the entire amount is
    designated by Congress as an emergency appropriation pursuant to section
    251(b)(2)(D)(i) of such Act.

                     Federal Law Enforcement Training Center

                              salaries and expenses

          For an additional amount for the necessary expenses of the Federal
    Law Enforcement Training Center, $1,354,000, to remain available until
    expended: Provided, That of the amount provided, $1,354,000 is
    designated by Congress as an emergency requirement pursuant to section
    251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit Control Act
    of 1985, as amended.

          acquisition, construction, improvements, and related expenses

          For an additional amount for the necessary expenses for the
    acquisition, construction, improvement, and related expenses,
    $2,700,000, to remain available until expended: Provided, That of the
    amount provided, $2,700,00 is designated by Congress as an emergency
    requirement pursuant to section 251(b)(2)(D)(i) of the Balanced Budget
    and Emergency Deficit Control Act of 1985, as amended.

                          Financial Management Service

                              salaries and expenses

          For an additional amount for the necessary expenses of the
    Financial Management Service, $449,000, to remain available until
    expended: Provided, That of the amount provided, $449,000 is designated
    by Congress as an emergency requirement pursuant to section
    251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit Control Act
    of 1985, as amended.

                     Bureau of Alcohol, Tobacco and Firearms

                              salaries and expenses

          For an additional amount for the necessary expenses of the Bureau
    of Alcohol, Tobacco and Firearms, $66,423,000; of which $3,500,000 shall
    be available for the construction and expansion of a canine training
    facility, to remain available until expended; of which $3,000,000 shall
    be available for conducting a study of car bomb explosives, to remain
    available until expended; and of which $6,700,000, to remain available
    until expended, for relocation of the Bureau's headquarters building and
    laboratory facilities; Provided, That of the amount provided,
    $66,423,000 is designated by Congress as an emergency requirement
    pursuant to section 251(b)(2)(D)(i) of the Balanced Budget and Emergency
    Deficit Control Act of 1985, as amended.

    [[Page 110 STAT. 3009-388]]

                          United States Customs Service

                              salaries and expenses

          For an additional amount for the necessary expense of the United
    States Customs Service, $62,335,000; of which not to exceed $26,400,000
    shall be available until expended for funding non-competitive
    cooperative agreements with air carriers, airports, or other cargo
    authorities, which provide for the Customs Service to purchase and
    assist in installing advanced air cargo inspection equipment for the
    joint use of such entities and the United States Customs Service:
    Provided, That of the amount provided, $62,335,000 is designated by
    Congress as an emergency requirement pursuant to section 251(b)(2)(D)(i)
    of the Balanced Budget and Emergency Deficit Control Act of 1985, as
    amended.

                            Internal Revenue Service

                      processing, assistance and management

          For an additional amount for the necessary expenses for the
    processing, assistance and management, $10,488,000, to remain available
    until expended: Provided, That of the amount provided, $10,488,000 is
    designated by Congress as an emergency requirement pursuant to section
    251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit Control Act
    of 1985, as amended.

                          United States Secret Service

                              salaries and expenses

          For an additional amount for the necessary expenses of the United
    States Secret Service $3,026,000, to remain available until expended:
    Provided, That of the amount provided, $3,026,000 is designated by
    Congress as an emergency requirement pursuant to section 251(b)(2)(D)(i)
    of the Balanced Budget and Emergency Deficit Control Act of 1985, as
    amended.

                              INDEPENDENT AGENCIES

                         Office of Personnel Management

                              salaries and expenses

          For an additional amount for the necessary expenses of the Office
    of Personnel Management $210,000, to remain available until expended:
    Provided, That of the amount provided, $210,000 is designated by
    Congress as an emergency requirement pursuant to section 251(b)(2)(D)(i)
    of the Balanced Budget and Emergency Deficit Control Act of 1985, as
    amended.

    [[Page 110 STAT. 3009-389]]

                       FUNDS APPROPRIATED TO THE PRESIDENT

                          Federal Drug Control Programs

                             special forfeiture fund

                          (including transfer of funds)

          For activities authorized by Public Law 100-690, as amended,
    $112,900,000, of which $42,000,000 shall be transferred to the United
    States Customs Service for the conversion of one P-3AEW aircraft for the
    air interdiction program; of which $10,000,000 shall be available for
    transfer to other Federal agencies for methamphetamine reduction
    efforts; and of which $60,900,000 shall be available to the Director of
    the Office of National Drug Control Policy for enhancing other drug
    control activities, including transfer to other Federal agencies:
    Provided, That of the amount provided, $112,900,000 is designated by
    Congress as an emergency requirement pursuant to section 251(b)(2)(D)(i)
    of the Balanced Budget and Emergency Deficit Control Act of 1985, as
    amended to become available only upon receipt by the Congress of a
    supplemental request from the President requesting such designation.

       TITLE VIII--FEDERAL FINANCIAL <<NOTE: Federal Financial Management
    Improvement Act of 1996. 31 USC 3512 note.>>  MANAGEMENT IMPROVEMENT

    SEC. 801. SHORT TITLE

          This title may be cited as the ``Federal Financial Management
    Improvement Act of 1996.''

    SEC. 802. <<NOTE: 31 USC 3512 note.>>  FINDINGS AND PURPOSES.
          (a) Findings.--The Congress finds the following:
                (1) Much effort has been devoted to strengthening Federal
            internal accounting controls in the past. Although progress has
            been made in recent years, Federal accounting standards have not
            been uniformly implemented in financial management systems for
            agencies.
                (2) Federal financial management continues to be seriously
            deficient, and Federal financial management and fiscal practices
            have failed to--
                        (A) identify costs fully;
                        (B) reflect the total liabilities of congressional
                    actions; and
                        (C) accurately report the financial condition of the
                    Federal Government.
                (3) Current Federal accounting practices do not accurately
            report financial results of the Federal Government or the full
            costs of programs and activities. The continued use of these
            practices undermines the Government's ability to provide
            credible and reliable financial data and encourages already
            widespread Government waste, and will not assist in achieving a
    balanced budget.
                (4) Waste and inefficiency in the Federal Government
            undermine the confidence of the American people in the
            government and reduce the federal Government's ability to
            address vital public needs adequately.
                (5) To rebuild the accountability and credibility of the
            Federal Government, and restore public confidence in the Federal

    [[Page 110 STAT. 3009-390]]

            Government, agencies must incorporate accounting standards and
            reporting objectives established for the Federal Government into
            their financial management systems so that all the assets and
            liabilities, revenues, and expenditures or expenses, and the
            full costs of programs and activities of the Federal Government
            can be consistently and accurately recorded, monitored, and
            uniformly reported throughout the Federal Government.
                (6) Since its establishment in October 1990, the Federal
            Accounting Standards Advisory Board (hereinafter referred to as
            the ``FASAB'') has made substantial progress toward developing
            and recommending a comprehensive set of accounting concepts and
            standards for the Federal Government. When the accounting
            concepts and standards developed by FASAB are incorporated into
            Federal financial management systems, agencies will be able to
            provide cost and financial information that will assist the
            Congress and financial managers to evaluate the cost and
            performance of Federal programs and activities, and will
            therefore provide important information that has been lacking,
            but is needed for improved decision making by financial managers
            and the Congress.
                (7) The development of financial management systems with the
            capacity to support these standards and concepts will, over the
            long term, improve Federal financial management.
          (b) Purpose--The purposes of this Act are to--
                (1) provide for consistency of accounting by an agency from
            one fiscal year to the next, and uniform accounting standards
            throughout the Federal Government;
                (2) require Federal financial management systems to support
            full disclosure of Federal financial data, including the full
            costs of Federal programs and activities, to the citizens, the
            Congress, the President, and agency management, so that programs
            and activities can be considered based on their full costs and
            merits;
                (3) increase the accountability and credibility of federal
            financial management;
                (4) improve performance, productivity and efficiency of
            Federal Government financial management;
                (5) establish financial management systems to support
            controlling the cost of Federal Government;
                (6) build upon and complement the Chief Financial Officers
            Act of 1990 (Public Law 101-576; 104 Stat 2838), the Government
            Performance and Results Act of 1993 (Public Law 103-62 107 Stat.
            285) and the Government Management Reform Act of 1994 (Public
            Law 103-356; 108 Stat. 3410); and
                (7) increase the capability of agencies to monitor execution
            of the budget by more readily permitting reports that compare
            spending of resources to results of activities.

    SEC. 803. <<NOTE: 31 USC 3512 note.>>  IMPLEMENTATION OF FEDERAL
                FINANCIAL MANAGEMENT IMPROVEMENTS.
          (a) In General.--Each agency shall implement and maintain
    financial management systems that comply substantially with Federal
    financial management systems requirements, applicable Federal accounting
    standards, and the United States Government Standard General Ledger at
    the transaction level.
          (b) Audit Compliance Finding.--

    [[Page 110 STAT. 3009-391]]

                (1) In general.--Each audit required by section 3521(e) of
            title 31, United States Code, shall report whether the agency
            financial management systems comply with the requirements of
            subsection (a).
                (2) Content of Reports.--When the person performing the
            audit required by section 3521(e) of title 31, United States
            Code, reports that the agency financial management systems do
            not comply with the requirements of subsection (a), the person
            performing the audit shall include in the report on the audit--
                        (A) the entity or organization responsible for the
                    financial management systems that have been found not to
                    comply with the requirements of subsection (a);
                        (B) all facts pertaining to the failure to comply
                    with the requirements of subsection (a), including--
                              (i) the nature and extent of the noncompliance
                          including areas in which there is substantial but
                          not full compliance;
                              (ii) the primary reason or cause of the
                          noncompliance;
                              (iii) the entity or organization responsible
                          for the non-compliance; and
                              (iv) any relevant comments from any
                          responsible officer or employee; and
                        (C) a statement with respect to the recommended
                    remedial actions and the time frames to implement such
                    actions.
          (c) Compliance Implementation.--
                (1) Determination.--No later than the date described under
            paragraph (2), the Head of an agency shall determine whether the
            financial management systems of the agency comply with the
            requirements of subsection (a). Such determination shall be
            based on--
                        (A) a review of the report on the applicable agency-
                    wide audited financial statement;
                        (B) any other information the Head of the agency
                    considers relevant and appropriate.
                (2) Date of determination.--The determination under
            paragraph (1) shall be made no later than 120 days after the
            earlier of--
                        (A) the date of the receipt of an agency-wide
                    audited financial statement; or
                        (B) the last day of the fiscal year following the
                    year covered by such statement.
                (3) Remediation plan.--
                        (A) If the Head of an agency determines that the
                    agency's financial management systems do not comply with
                    the requirements of subsection (a), the head of the
                    agency, in consultation with the Director, shall
                    establish a remediation plan that shall include
                    resources, remedies, and intermediate target dates
                    necessary to bring the agency's financial management
                    systems into substantial compliance.
                        (B) If the determination of the head of the agency
                    differs from the audit compliance findings required in
                    subsection (b), the Director shall review such
                    determinations and provide a report on the findings to
                    the appropriate committees of the Congress.

    [[Page 110 STAT. 3009-392]]

                (4) Time period for compliance.--A remediation plan shall
            bring the agency's financial management systems into substantial
            compliance no later than 3 years after the date a determination
            is made under paragraph (1), unless the agency, with concurrence
            of the Director--
                        (A) determines that the agency's financial
                    management systems cannot comply with the requirements
                    of subsection (a) within 3 years;
                        (B) specifies the most feasible date for bringing
                    the agency's financial management systems into
                    compliance with the requirements of subsection (a); and
                        (C) designates an official of the agency who shall
                    be responsible for bringing the agency's financial
                    management systems into compliance with the requirements
                    of subsection (a) by the date specified under
                    subparagraph (B).

    SEC. 804. <<NOTE: 31 USC 3512 note.>>  REPORTING REQUIREMENTS.
          (a) Reports by the Director.--No later than March 31 of each year,
    the Director shall submit a report to the Congress regarding
    implementation of this Act. The Director may include the report in the
    financial management status report and the 5-year financial management
    plan submitted under section 3512(a)(1) of title 31, United States Code.
          (b) Reports by the Inspector General--Each Inspector General who
    prepares a report under section 5(a) of the Inspector General Act of
    1978 (5 U.S.C. App.) shall report to Congress
    instances and reasons when an agency has not met the intermediate target
    dates established in the remediation plan required under section 3(c).
    Specifically the report shall include--
                (1) the entity or organization responsible for the non-
            compliance;
                (2) the facts pertaining to the failure to comply with the
            requirements of subsection (a), including the nature and extent
            of the non-compliance, the primary reason or cause for the
            failure to comply, and any extenuating circumstances; and
                (3) a statement of the remedial actions needed to comply.
          (c) Reports by the Comptroller General.--No later than October 1,
    1997, and October 1, of each year thereafter, the Comptroller General of
    the United States shall report to the appropriate committees of the
    Congress concerning--
                (1) compliance with the requirements of section 3(a) of this
            Act, including whether the financial statements of the Federal
            Government have been prepared in accordance with applicable
            accounting standards; and
                (2) the adequacy of applicable accounting standards for the
            Federal Government.

    SEC. 805. <<NOTE: 31 USC 3512 note.>>  CONFORMING AMENDMENTS.
          (a) Audits by Agencies.--Section 3521(f)(1) of title 31, United
    States Code, is amended in the first sentence by inserting ``and the
    Controller of the Office of Federal Financial Management'' before the
    period.
          (b) Financial Management Status Report.--Section 3512(a)(2) of
    title 31, United States Code, is amended by--
                (1) in subparagraph (D) by striking ``and' after the
            semicolon;
                (2) by redesignating subparagraph (E) as subparagraph (F);
            and

    [[Page 110 STAT. 3009-393]]

                (3) by inserting after subparagraph (D) the following:
                        ``(E) a listing of agencies whose financial
                    management systems do not comply substantially with the
                    requirements of Section 3(a) the Federal Financial
                    Management Improvement Act of 1996, and a summary
                    statement of the efforts underway to remedy the
                    noncompliance; and''
          (c) Inspector General Act of 1978.--Section 5(a) of the
    Inspector <<NOTE: 5 USC app.>>  General Act of 1978 is amended--
                (1) in paragraph (11) by striking ``and'' after the
            semicolon;
                (2) in paragraph (12) by striking the period and inserting
            ``; and''; and
                (3) by adding at the end the following new paragraph:
                ``(13) the information described under section   05(b) of
            the Federal Financial Management Improvement Act of 1996.''

    SEC. 806. <<NOTE: 31 USC 3512 note.>>  DEFINITIONS.
          For purposes of this title:
                (1) Agency.--The term ``agency'' means a department or
            agency of the United States Government as defined in section
            901(b) of title 31, United States Code.
                (2) Director.--The term ``Director'' means the Director of
            the Office of Management and Budget.
                (3) Federal Accounting Standards.--The term ``Federal
            accounting standards'' means applicable accounting principles,
            standards, and requirements consistent with section 902(a)(3)(A)
            of title 31, United States Code.
                (4) Financial management systems.--The term ``financial
            management systems'' includes the financial systems and the
            financial portions of mixed systems necessary to support
            financial management, including automated and manual processes,
            procedures, controls, data, hardware, software, and support
            personnel dedicated to the operation and maintenance of system
            functions.
                (5) Financial system.--The term ``financial system''
            includes an information system, comprised of one or more
            applications, that is used for--
                        (A) collecting, processing, maintaining,
                    transmitting, or reporting data about financial events;
                        (B) supporting financial planning or budgeting
                    activities;
                        (C) accumulating and reporting costs information; or
                        (D) supporting the preparation of financial
                    statements.
                        (6) Mixed system.--The term ``mixed system' means an
                    information system that supports both financial and
                    nonfinancial functions of the Federal Government or
                    components thereof.

    SEC. 807. <<NOTE: 31 USC 3512 note.>>  EFFECTIVE DATE.
          This title shall take effect for the fiscal year ending September
    30, 1997.

    SEC. 808. REVISION OF SHORT TITLES.--

          (a) Section 4001 of Public Law 104-106 (110 Stat. 642; 41 U.S.C.
    251 note) is amended to read as follows:

    ``SEC. 4001. SHORT TITLE.

          ``This division and division E may be cited as the `Clinger-Cohen
    Act of 1996'.''.

    [[Page 110 STAT. 3009-394]]

          (b) Section 5001 of Public Law 104-106 (110 Stat. 679; 40 U.S.C.
    1401 note) is amended to read as follows:

    ``SEC. 5001. SHORT TITLE.

          ``This division and division D may be cited as the `Clinger-Cohen
    Act of 1996'.''.
          (c) Any reference in any law, regulation, document, record, or
    other paper of the United States to the Federal Acquisition Reform Act
    of 1996 or to the Information Technology Management Reform Act of 1996
    shall be considered to be a reference to the Clinger-Cohen Act of 1996.
          This Act may be cited as the ``Treasury, Postal Service, and
    General Government Appropriations Act, 1997''.

      TITLE II--ECONOMIC <<NOTE: Economic Growth and Regulatory Paperwork
        Reduction Act of 1996. 12 USC 226 note.>>  GROWTH AND REGULATORY
    PAPERWORK REDUCTION

    SEC. 2001. SHORT TITLE; TABLE OF CONTENTS; DEFINITIONS

        (a) Short Title.--This title may be cited as the ``Economic Growth
    and Regulatory Paperwork Reduction Act of 1996''.
        (b) Table of Contents.--The table of contents for this title is as
    follows:

          TITLE II--ECONOMIC GROWTH AND REGULATORY PAPERWORK REDUCTION

    Sec. 2001. Short title; table of contents; definitions

           Subtitle A--Streamlining the Home Mortgage Lending Process

    Sec. 2101. Simplification and unification of disclosures required
                          under RESPA and TILA for mortgage
                          transactions.
    Sec. 2102. General exemption authority for loans.
    Sec. 2103. Reductions in Real Estate Settlement Procedures Act of
                          1974 regulatory burdens.
    Sec. 2104. Waiver for certain borrowers.
    Sec. 2105. Alternative disclosures for adjustable rate mortgages.
    Sec. 2106. Restitution for violations of the Truth in Lending Act.
    Sec. 2107. Limitation on liability under the Truth in Lending Act.

                 Subtitle B--Streamlining Government Regulation

          Chapter 1--Eliminating Unnecessary Regulatory Requirements and
                                   Procedures

    Sec. 2201. Elimination of redundant approval requirement for Oakar
                          transactions.
    Sec. 2202. Elimination of duplicative requirements imposed upon
                          bank holding companies.
    Sec. 2203. Elimination of the per branch capital requirement for
                          national banks and State member banks.
    Sec. 2204. Elimination of branch application requirements for
                          automatic teller machines.

    [[Page 110 STAT. 3009-395]]

    Sec. 2205. Elimination of requirement for approval of investments
                          in bank premises for well capitalized and
                          well managed banks.
    Sec. 2206. Elimination of approval requirement for divestitures.
    Sec. 2207. Streamlined nonbanking acquisitions by well capitalized
                          and well managed banking organizations.
    Sec. 2208. Elimination of unnecessary filing for officer and
                          director appointments.
    Sec. 2209. Amendments to the Depository Institution Management
                          Interlocks Act.
    Sec. 2210. Elimination of recordkeeping and reporting requirements
                          for officers.
    Sec. 2211. Repayment of Treasury loan.
    Sec. 2212. Branch closures.
    Sec. 2213. Foreign banks.
    Sec. 2214. Disposition of foreclosed assets.
    Sec. 2215. Exemption authority for antitying provision.
    Sec. 2216. FDIC approval of new State bank powers.

              Chapter 2--Eliminating Unnecessary Regulatory Burdens

    Sec. 2221. Small bank examination cycle.
    Sec. 2222. Required review of regulations.
    Sec. 2223. Repeal of identification of nonbank financial
                          institution customers.
    Sec. 2224. Repeal of certain reporting requirements.
    Sec. 2225. Increase in home mortgage disclosure exemption
                          threshold.
    Sec. 2226. Elimination of stock loan reporting requirement.
    Sec. 2227. Credit availability assessment.

                      Chapter 3--Regulatory Micromanagement

    Sec. 2241. National bank directors.
    Sec. 2242. Paperwork reduction review.
    Sec. 2243. State bank representation on Board of Directors of the
                          FDIC.
    Sec. 2244. Consultation among examiners.

     Subtitle C--Regulatory Impact on Cost of Credit and Credit Availability

    Sec. 2301. Audit costs.
    Sec. 2302. Incentives for self-testing.
    Sec. 2303. Qualified thrift investment amendments.
    Sec. 2304. Limited purpose banks.
    Sec. 2305. Amendment to Fair Debt Collection Practices Act.
    Sec. 2306. Increase in certain credit union loan ceilings.
    Sec. 2307. Bank investments in Edge Act and agreement
                          corporations.

    [[Page 110 STAT. 3009-396]]

                           Subtitle D--Consumer Credit

                       Chapter 1--Credit Reporting Reform

    Sec. 2401. Short title.
    Sec. 2402. Definitions.
    Sec. 2403. Furnishing consumer reports; use for employment
                          purposes.
    Sec. 2404. Use of consumer reports for prescreening and direct
                          marketing; prohibition on unauthorized or
                          uncertified use of information.
    Sec. 2405. Consumer consent required to furnish consumer report
                          containing medical information.
    Sec. 2406. Obsolete information and information contained in
                          consumer reports.
    Sec. 2407. Compliance procedures.
    Sec. 2408. Consumer disclosures.
    Sec. 2409. Procedures in case of the disputed accuracy of any
                          information in a consumer's file.
    Sec. 2410. Charges for certain disclosures.
    Sec. 2411. Duties of users of consumer reports.
    Sec. 2412. Civil liability.
    Sec. 2413. Responsibilities of persons who furnish information to
                          consumer reporting agencies.
    Sec. 2414. Investigative consumer reports.
    Sec. 2415. Increased criminal penalties for obtaining information
                          under false pretenses.
    Sec. 2416. Administrative enforcement.
    Sec. 2417. State enforcement of Fair Credit Reporting Act.
    Sec. 2418. Federal Reserve Board authority.
    Sec. 2419. Preemption of State law.
    Sec. 2420. Effective date.
    Sec. 2421. Relationship to other law.
    Sec. 2422. Federal Reserve Board study.

                     Chapter 2--Credit Repair Organizations

    Sec. 2451. Regulation of credit repair organizations.
    Sec. 2452. Credit worthiness.

    Subtitle E--Asset Conservation, Lender Liability, and Deposit Insurance
                                   Protection

    Sec. 2501. Short title.
    Sec. 2502. CERCLA lender and fiduciary liability limitations
                          amendments.
    Sec. 2503. Conforming amendment.
    Sec. 2504. Lender liability rule.
    Sec. 2505. Effective date.

                            Subtitle F--Miscellaneous

    Sec. 2601. Federal Reserve Board study.

    [[Page 110 STAT. 3009-397]]

    Sec. 2602. Treatment of claims arising from breach of contracts
                          executed by the receiver or conservator.
    Sec. 2603. Criminal sanctions for fictitious financial instruments
                          and counterfeiting.
    Sec. 2604. Amendments to the Truth in Savings Act.
    Sec. 2605. Consumer Leasing Act amendments.
    Sec. 2606. Study of corporate credit unions.
    Sec. 2607. Report on the reconciliation of differences between
                          regulatory accounting principles and
                          generally accepted accounting principles.
    Sec. 2608. State-by-State and metropolitan area-by-metropolitan
                          area study of bank fees.
    Sec. 2609. Prospective application of gold clauses in contracts.
    Sec. 2610. Qualified family partnerships.
    Sec. 2611. Cooperative efforts between depository institutions and
                          farmers and ranchers in drought-stricken
                          areas.
    Sec. 2612. Streamlining process for determining new nonbanking
                          activities.
    Sec. 2613. Authorizing bank service companies to organize as
                          limited liability partnerships.
    Sec. 2614. Retirement certificates of deposits.
    Sec. 2615. Prohibitions on certain depository institution
                          associations with Government-sponsored
                          enterprises.

                       Subtitle G--Deposit Insurance Funds

    Sec. 2701. Short title.
    Sec. 2702. Special assessment to capitalize SAIF.
    Sec. 2703. Financing corporation funding.
    Sec. 2704. Merger of BIF and SAIF.
    Sec. 2705. Creation of SAIF special reserve.
    Sec. 2706. Refund of amounts in deposit insurance fund in excess
                          of designated reserve amount.
    Sec. 2707. Assessment rates for SAIF members may not be less than
                          assessment rates for BIF members.
    Sec. 2708. Assessments authorized only if needed to maintain the
                          reserve ratio of a deposit insurance fund.
    Sec. 2709. Treasury study of common depository institution
                          charter.
    Sec. 2710. Definitions.
    Sec. 2711. Deductions for special assessments.

        (c) Definitions.--Except <<NOTE: 12 USC 252 note.>> as otherwise
    specified in this title, the following definitions shall apply for
    purposes of this title:
                (1) Appraisal subcommittee.--The term ``Appraisal
            Subcommittee'' means the Appraisal Subcommittee established
            under section 1011 of the Federal Financial Institutions
            Examination Council Act of 1978 (as in existence on the day
            before the date of enactment of this Act).
                (2) Appropriate Federal banking agency.--The term
            ``appropriate Federal banking agency'' has the same meaning as
            in section 3 of the Federal Deposit Insurance Act.

    [[Page 110 STAT. 3009-398]]

                (3) Board.--The term ``Board'' means the Board of Governors
            of the Federal Reserve System.
                (4) Corporation.--The term ``Corporation'' means the Federal
            Deposit Insurance Corporation.
                (5) Council.--The term ``Council'' means the Financial
            Institutions Examination Council established under section 1004
            of the Federal Financial Institutions Examination Council Act of
            1978.
                (6) Insured credit union.--The term ``insured credit union''
            has the same meaning as in section 101 of the Federal Credit
            Union Act.
                (7) Insured depository institution.--The term ``insured
            depository institution'' has the same meaning as in section 3 of
            the Federal Deposit Insurance Act.

           Subtitle A--Streamlining the Home Mortgage Lending Process

    SEC. 2101. <<NOTE: 12 USC 2601 note.>> SIMPLIFICATION AND UNIFICATION OF
                DISCLOSURES REQUIRED UNDER RESPA AND TILA FOR MORTGAGE
                TRANSACTIONS.

        (a) In General.--With respect to credit transactions which are
    subject to the Real Estate Settlement Procedures Act of 1974 and the
    Truth in Lending Act, the Board of Governors of the Federal Reserve
    System (hereafter in this section referred to as the ``Board'') and the
    Secretary of Housing and Urban Development (hereafter in this section
    referred to as the ``Secretary'') shall take such action as may be
    necessary before the end of the 6-month period beginning on the date of
    enactment of this Act--
                (1) to simplify and improve the disclosures applicable to
            such transactions under such Acts, including the timing of the
            disclosures; and
                (2) to provide a single format for such disclosures which
            will satisfy the requirements of each such Act with respect to
            such transactions.

        (b) Regulations.--To the extent that it is necessary to prescribe
    any regulation in order to effect any changes required to be made under
    subsection (a), the proposed regulation shall be published in the
    Federal Register before the end of the 6-month period referred to in
    subsection (a).
        (c) Recommendations for Legislation.--If the Board and the Secretary
    find that legislative action may be necessary or appropriate in order to
    simplify and unify the disclosure requirements under the Real Estate
    Settlement Procedures Act of 1974 and the Truth in Lending Act, the
    Board and the Secretary shall submit a report containing recommendations
    to the Congress concerning such action.

    SEC. 2102. GENERAL EXEMPTION AUTHORITY FOR LOANS.

        (a) Regulatory Flexibility.--Section 104 of the Truth in Lending Act
    (15 U.S.C. 1603) is amended--
                (1) by redesignating paragraphs (5) and (6) as paragraphs
            (6) and (7), respectively; and
                (2) by inserting after paragraph (4) the following new
            paragraph:

    [[Page 110 STAT. 3009-399]]

                ``(5) Transactions for which the Board, by rule, determines
            that coverage under this title is not necessary to carry out the
            purposes of this title.''.

        (b) Exemption Authority.--Section 105 of the Truth in Lending Act
    (15 U.S.C. 1604) is amended by adding at the end the following new
    subsection:
        ``(f) Exemption Authority.--
                ``(1) In general.--The Board may exempt, by regulation, from
            all or part of this title any class of transactions, other than
            transactions involving any mortgage described in section
            103(aa), for which, in the determination of the Board, coverage
            under all or part of this title does not provide a meaningful
            benefit to consumers in the form of useful information or
            protection.
                ``(2) Factors for consideration.--In determining which
            classes of transactions to exempt in whole or in part under
            paragraph (1), the Board shall consider the following factors
            and publish its rationale at the time a proposed exemption is
            published for comment:
                        ``(A) The amount of the loan and whether the
                    disclosures, right of rescission, and other provisions
                    provide a benefit to the consumers who are parties to
                    such transactions, as determined by the Board.
                        ``(B) The extent to which the requirements of this
                    title complicate, hinder, or make more expensive the
                    credit process for the class of transactions.
                        ``(C) The status of the borrower, including--
                              ``(i) any related financial arrangements of
                          the borrower, as determined by the Board;
                              ``(ii) the financial sophistication of the
                          borrower relative to the type of transaction; and
                              ``(iii) the importance to the borrower of the
                          credit, related supporting property, and coverage
                          under this title, as determined by the Board;
                        ``(D) whether the loan is secured by the principal
                    residence of the consumer; and
                        ``(E) whether the goal of consumer protection would
                    be undermined by such an exemption.''.

    SEC. 2103. REDUCTIONS IN REAL ESTATE SETTLEMENT PROCEDURES ACT OF 1974
                REGULATORY BURDENS.

        (a) Unnecessary Disclosure.--Section 6(a) of the Real Estate
    Settlement Procedures Act of 1974 (12 U.S.C. 2605(a)) is amended to read
    as follows:
        ``(a) Disclosure to Applicant Relating to Assignment, Sale, or
    Transfer of Loan Servicing.--Each person who makes a federally related
    mortgage loan shall disclose to each person who applies for the loan, at
    the time of application for the loan, whether the servicing of the loan
    may be assigned, sold, or transferred to any other person at any time
    while the loan is outstanding.''.
        (b) Consistency of Real Estate Settlement Procedures Act and Truth
    in Lending Act Exemption of Business Loans.--Section 7 of the Real
    Estate Settlement Procedures Act of 1974 (12 U.S.C. 2606) is amended--
                (1) by striking ``This Act'' and inserting the following:

        ``(a) In General.--This Act''; and
                (2) by adding at the end the following new subsection:

    [[Page 110 STAT. 3009-400]]

        ``(b) Interpretation.--In prescribing regulations under section
    19(a), the Secretary shall ensure that, with respect to subsection (a)
    of this section, the exemption for credit transactions involving
    extensions of credit primarily for business, commercial, or agricultural
    purposes, as provided in section 7(1) of the Real Estate Settlement
    Procedures Act of 1974 shall be the same as the exemption for such
    credit transactions under section 104(1) of the Truth in Lending Act.''.
        (c) Redesignation of Controlled Business Arrangements as Affiliated
    Business Arrangements.--The Real Estate Settlement Procedures Act of
    1974 (12 U.S.C. 2601 et seq.) is amended--
                (1) in <<NOTE: 12 USC 2602.>> section 3(7), by striking
            ``controlled business arrangement'' and inserting ``affiliated
            business arrangement''; and
                (2) in <<NOTE: 12 USC 2607.>> subsections (c)(4) and (d)(6)
            of section 8, by striking ``controlled business arrangements''
            and inserting ``affiliated business arrangements''.

        (d) Disclosures by Telephone or Electronic Media.--Section 8(c)(4)
    of the Real Estate Settlement Procedures Act of 1974 (12 U.S.C.
    2607(c)(4)(A)) is amended by striking subparagraph (A) and inserting the
    following ``(A) a disclosure is made of the existence of such an
    arrangement to the person being referred and, in connection with such
    referral, such person is provided a written estimate of the charge or
    range of charges generally made by the provider to which the person is
    referred (i) in the case of a face-to-face referral or a referral made
    in writing or by electronic media, at or before the time of the referral
    (and compliance with this requirement in such case may be evidenced by a
    notation in a written, electronic, or similar system of records
    maintained in the regular course of business); (ii) in the case of a
    referral made by telephone, within 3 business days after the referral by
    telephone, (and in such case an abbreviated verbal disclosure of the
    existence of the arrangement and the fact that a written disclosure will
    be provided within 3 business days shall be made to the person being
    referred during the telephone referral); or (iii) in the case of a
    referral by a lender (including a referral by a lender to an affiliated
    lender), at the time the estimates required under section 5(c) are
    provided (notwithstanding clause (i) or (ii)); and any required written
    receipt of such disclosure (without regard to the manner of the
    disclosure under clause (i), (ii), or (iii)) may be obtained at the
    closing or settlement (except that a person making a face-to-face
    referral who provides the written disclosure at or before the time of
    the referral shall attempt to obtain any required written receipt of
    such disclosure at such time and if the person being referred chooses
    not to acknowledge the receipt of the disclosure at that time, that fact
    shall be noted in the written, electronic, or similar system of records
    maintained in the regular course of business by the person making the
    referral),''.
        (e) Limitation on Claims Arising From Violations of Requirements for
    Servicing Mortgages and Administering Escrow Accounts.--Section 16 of
    the Real Estate Settlement Procedures Act of 1974 (12 U.S.C. 2614) is
    amended--
                (1) by striking ``section 8 or 9'' and inserting ``section
            6, 8, or 9''; and
                (2) by striking ``within one year'' and inserting ``within 3
            years in the case of a violation of section 6 and 1 year in the
            case of a violation of section 8 or 9''.

    [[Page 110 STAT. 3009-401]]

        (f) Delay of Effectiveness of Recent Final Regulation Relating to
    Payments to Employees.--Section 19 of the Real Estate Settlement
    Procedures Act of 1974 (12 U.S.C. 2617) is amended by adding at the end
    the following new subsection:
        ``(d) Delay of Effectiveness of Recent Final Regulation Relating to
    Payments to Employees.--
                ``(1) In general.--The amendment to part 3500 of title 24 of
            the Code of Federal Regulations contained in the final
            regulation prescribed by the Secretary and published in the
            Federal Register on June 7, 1996, which will, as of the
            effective date of such amendment--
                        ``(A) eliminate the exemption for payments by an
                    employer to employees of such employer for referral
                    activities which is currently codified as section
                    3500.14(g)(1)(vii) of such title 24; and
                        ``(B) replace such exemption with a more limited
                    exemption in new clauses (vii), (viii), and (ix) of
                    section 3500.14 of such title 24,

            shall not take effect before July 31, 1997.
                ``(2) Continuation of prior rule.--The regulation codified
            as section 3500.14(g)(1)(vii) of title 24 of the Code of Federal
            Regulations, relating to employer-employee payments, as in
            effect on May 1, 1996, shall remain in effect until the date the
            amendment referred to in paragraph (1) takes effect in
            accordance with such paragraph.
                ``(3) Public notice of effective date.--The Secretary shall
            provide public notice of the date on which the amendment
            referred to in paragraph (1) will take effect in accordance with
            such paragraph not less than 90 days and not more than 180 days
            before such effective date.''.

        (g) Technical and Conforming Amendments.--
                (1) Section 4(a) of the Real Estate Settlement Procedures
            Act of 1974 (12 U.S.C. 2603(a)) is amended by striking ``Federal
            Home Loan Bank Board'' and inserting ``Director of the Office of
            Thrift Supervision''.
                (2) Section 10(c)(1)(C) of the Real Estate Settlement
            Procedures Act of 1974 (12 U.S.C. 2609(c)(1)(C)) is amended by
            striking ``Not later than the expiration of the 90-day period
            beginning on the date of the enactment of the Cranston-Gonzalez
            National Affordable Housing Act, the'' and inserting ``The''.

        (h) Repeal of Obsolete Provisions.--The Real Estate Settlement
    Procedures Act of 1974 (12 U.S.C. 2601 et seq.) is amended by <<NOTE: 12
    USC 2611-2613.>>  striking sections 13, 14 and 15.

    SEC. 2104. WAIVER FOR CERTAIN BORROWERS.

        Section 105 of the Truth in Lending Act (15 U.S.C. 1604) is amended
    by adding at the end the following new subsection:
        ``(g) Waiver for Certain Borrowers.--
                ``(1) In general.--The Board, by regulation, may exempt from
            the requirements of this title certain credit transactions if--
                        ``(A) the transaction involves a consumer--
                              ``(i) with an annual earned income of more
                          than $200,000; or
                              ``(ii) having net assets in excess of
                          $1,000,000 at the time of the transaction; and

    [[Page 110 STAT. 3009-402]]

                        ``(B) a waiver that is handwritten, signed, and
                    dated by the consumer is first obtained from the
                    consumer.
                ``(2) Adjustments by the board.--The Board, at its
            discretion, may adjust the annual earned income and net asset
            requirements of paragraph (1) for inflation.''.

    SEC. 2105. ALTERNATIVE DISCLOSURES FOR ADJUSTABLE RATE MORTGAGES.

        Section 128(a) of the Truth in Lending Act (15 U.S.C. 1638(a)) is
    amended by adding at the end the following new paragraph:
                ``(14) In the case of any variable interest rate residential
            mortgage transaction, in disclosures provided at application as
            prescribed by the Board for a variable rate transaction secured
            by the consumer's principal dwelling, at the option of the
            creditor, a statement that the periodic payments may increase or
            decrease substantially, and the maximum interest rate and
            payment for a $10,000 loan originated at a recent interest rate,
            as determined by the Board, assuming the maximum periodic
            increases in rates and payments under the program, or a
            historical example illustrating the effects of interest rate
            changes implemented according to the loan program.''.

    SEC. 2106. <<NOTE: 15 USC 1607.>> RESTITUTION FOR VIOLATIONS OF THE
                TRUTH IN LENDING ACT.

        Section 108(e)(3) of the Truth in Lending Act (15 U.S.C. 2602(3)) is
    amended--
                (1) by striking ``ordered (A) if'' and inserting the
            following: ``ordered--
                ``(A) if'';
                (2) by striking ``may require a partial'' and inserting
            ``may--
                        ``(i) require a partial'';
                (3) by striking ``, except that with respect'' and all that
            follows through ``Act, the agency shall require'' and inserting
            ``; or
                        ``(ii) require'';
                (4) by striking ``reasonable, (B) the'' and inserting the
            following: ``reasonable, if (in the case of an agency referred
            to in paragraph (1), (2), or (3) of subsection (a)), the agency
            determines that a partial adjustment or making partial payments
            over an extended period is necessary to avoid causing the
            creditor to become undercapitalized pursuant to section 38 of
            the Federal Deposit Insurance Act;
                ``(B) the''; and
                (5) by striking ``(C) except'' and inserting the following:
                ``(C) except''.

    SEC. 2107. LIMITATION ON LIABILITY UNDER THE TRUTH IN LENDING ACT.

        (a) In General.--Section 139(a) of the Truth in Lending Act (15
    U.S.C. 1649(a)) is amended by striking ``For any consumer credit
    transaction subject to this title'' and inserting ``For any closed end
    consumer credit transaction that is secured by real property or a
    dwelling, that is subject to this title, and''.
          (b) Effective <<NOTE: 15 USC 1649 note.>> Date.--The amendment
    made by subsection (a) shall be effective as of September 30, 1995.

    [[Page 110 STAT. 3009-403]]

                 Subtitle B--Streamlining Government Regulation

         CHAPTER 1--ELIMINATING UNNECESSARY REGULATORY REQUIREMENTS AND
                                   PROCEDURES

    SEC. 2201. ELIMINATION OF REDUNDANT APPROVAL REQUIREMENT FOR OAKAR
                TRANSACTIONS.

        (a) In General.--Section 5(d)(3) of the Federal Deposit Insurance
    Act (12 U.S.C. 1815(d)(3)) is amended--
                (1) in subparagraph (A), by striking ``with the prior
            written approval of'' and inserting ``if the transaction is
            approved by'';
                (2) in subparagraph (E)--
                        (A) by striking clauses (i) and (iv);
                        (B) by redesignating clauses (ii) and (iii) as
                    clauses (i) and (ii), respectively; and
                        (C) by adding at the end the following new clause:
                              ``(iii) Capital requirements.--A transaction
                          described in this paragraph shall not be approved
                          under section 18(c)(2) unless the acquiring,
                          assuming, or resulting depository institution will
                          meet all applicable capital requirements upon
                          consummation of the transaction.'';
                (3) by striking subparagraph (G); and
                (4) by redesignating subparagraphs (H) through (J) as
            subparagraphs (G) through (I), respectively.

        (b) Conforming Amendments.--
                (1) Revised statutes.--Section 5156A(b)(1) of the Revised
            Statutes of the United States (12 U.S.C. 215c(b)(1)) is amended
            by striking ``by section 5(d)(3) of the Federal Deposit
            Insurance Act or any other'' and inserting ``under any''.
                (2) Home owners' loan act.--Section 10(s)(2)(A) of the Home
            Owners' Loan Act (12 U.S.C. 1467a(s)(2)(A)) is amended by
            striking ``under section 5(d)(3) of the Federal Deposit
            Insurance Act or any other'' and inserting ``under any''.

    SEC. 2203. ELIMINATION OF DUPLICATIVE REQUIREMENTS IMPOSED UPON BANK
                HOLDING COMPANIES.

        (a) Exemption for Bank Holding Companies.--Section 10 of the Home
    Owners' Loan Act (12 U.S.C. 1467a) is amended by adding at the end the
    following new subsection:
        ``(t) Exemption for Bank Holding Companies.--This section shall not
    apply to a bank holding company that is subject to the Bank Holding
    Company Act of 1956, or any company controlled by such bank holding
    company.''.
        (b) Definition.--Section 10(a)(1)(D) of the Home Owners' Loan Act
    (12 U.S.C. 1467a(a)(1)(D)) is amended to read as follows:
                        ``(D) Savings and loan holding company.--
                              ``(i) In general.--Except as provided in
                          clause (ii), the term `savings and loan holding
                          company' means any company that directly or
                          indirectly controls a savings association or that
                          controls any other company that is a savings and
                          loan holding company.
                              ``(ii) Exclusion.--The term `savings and loan
                          holding company' does not include a bank holding
                          company that is registered under, and subject to,
                          the Bank

    [[Page 110 STAT. 3009-404]]

                          Holding Company Act of 1956, or to any company
                          directly or indirectly controlled by such company
                          (other than a savings association).''.

        (c) Acquisitions.--Section 10(e)(1) of the Home Owners' Loan Act (12
    U.S.C. 1467a(e)(1)) is amended--
                (1) in subparagraph (A)(iii)(VII), by inserting ``or'' at
            the end;
                (2) in subparagraph (A)(iv), by inserting ``and'' at the
            end; and
                (3) in subparagraph (B)--
                        (A) by striking ``or (ii)'' and inserting ``(ii)'';
                    and
                        (B) by inserting before the first period ``, or
                    (iii) acquired by a bank holding company that is
                    registered under, and subject to, the Bank Holding
                    Company Act of 1956, or any company controlled by such
                    bank holding company''.

        (d) Amendments to the Bank Holding Company Act of 1956.--Section
    4(i) of the Bank Holding Company Act of 1956 (12 U.S.C. 1843(i)) is
    amended by adding at the end the following new paragraphs:
                ``(4) Solicitation of views.--
                        ``(A) Notice to director.--Upon receiving any
                    application or notice by a bank holding company to
                    acquire, directly or indirectly, a savings association
                    under subsection (c)(8), the Board shall solicit
                    comments and recommendations from the Director with
                    respect to such acquisition.
                        ``(B) Comment period.--The comments and
                    recommendations of the Director under subparagraph (A)
                    with respect to any acquisition subject to such
                    subparagraph shall be transmitted to the Board not later
                    than 30 days after the receipt by the Director of the
                    notice relating to such acquisition (or such shorter
                    period as the Board may specify if the Board advises the
                    Director that an emergency exists that requires
                    expeditious action).
                ``(5) Examination.--
                        ``(A) Scope.--The Board shall consult with the
                    Director, as appropriate, in establishing the scope of
                    an examination by the Board of a bank holding company
                    that directly or indirectly controls a savings
                    association.
                        ``(B) Access to inspection reports.--Upon the
                    request of the Director, the Board shall furnish the
                    Director with a copy of any inspection report,
                    additional examination materials, or supervisory
                    information relating to any bank holding company that
                    directly or indirectly controls a savings association.
                ``(6)  Coordination of enforcement efforts.--The Board and
            the Director shall cooperate in any enforcement action against
            any bank holding company that controls a savings association, if
            the relevant conduct involves such association.
                ``(7) Director defined.--For purposes of this section, the
            term `Director' means the Director of the Office of Thrift
            Supervision.''.

    [[Page 110 STAT. 3009-405]]

    SEC. 2204. ELIMINATION OF THE PER BRANCH CAPITAL REQUIREMENT FOR
                NATIONAL BANKS AND STATE MEMBER BANKS.

        Section 5155(h) of the Revised Statutes of the United States (12
    U.S.C. 36(h)) is amended to read as follows:
        ``(h) [Repealed]''.

    SEC. 2205. ELIMINATION OF BRANCH APPLICATION REQUIREMENTS FOR AUTOMATIC
                TELLER MACHINES.

        (a) ``Branch'' Under National Bank Act.--Section 5155(j) of the
    Revised Statutes of the United States (12 U.S.C. 36(j)) is amended by
    adding at the end the following: ``The term `branch', as used in this
    section, does not include an automated teller machine or a remote
    service unit.''.
        (b) ``Domestic Branch'' Under the Federal Deposit Insurance Act.--
    Section 3(o) of the Federal Deposit Insurance Act (12 U.S.C. 1813(o)) is
    amended by striking ``lent; and the'' and inserting ``lent. The term
    `domestic branch' does not include an automated teller machine or a
    remote service unit. The''.

    SEC. 2206. ELIMINATION OF REQUIREMENT FOR APPROVAL OF INVESTMENTS IN
                BANK PREMISES FOR WELL CAPITALIZED AND WELL MANAGED BANKS.

        Section 24A of the Federal Reserve Act (12 U.S.C. 371d) is amended
    to read as follows:

    ``SEC. 24A. INVESTMENT IN BANK PREMISES OR STOCK OF CORPORATION HOLDING
                PREMISES.

        ``(a) Conditions of Investment.--No national bank or State member
    bank shall invest in bank premises, or in the stock, bonds, debentures,
    or other such obligations of any corporation holding the premises of
    such bank, or make loans to or upon the security of any such
    corporation--
                ``(1) unless the bank receives the prior approval of the
            Comptroller of the Currency (with respect to a national bank) or
            the Board (with respect to a State member bank);
                ``(2) unless the aggregate of all such investments and
            loans, together with the amount of any indebtedness incurred by
            any such corporation that is an affiliate of the bank, is less
            than or equal to the amount of the capital stock of such bank;
            or
                ``(3) unless--
                        ``(A) the aggregate of all such investments and
                    loans, together with the amount of any indebtedness
                    incurred by any such corporation that is an affiliate of
                    the bank, is less than or equal to 150 percent of the
                    capital and surplus of the bank; and
                        ``(B) the bank--
                              ``(i) has a CAMEL composite rating of 1 or 2
                          under the Uniform Financial Institutions Rating
                          System (or an equivalent rating under a comparable
                          rating system) as of the most recent examination
                          of such bank;
                              ``(ii) is well capitalized and will continue
                          to be well capitalized after the investment or
                          loan; and
                              ``(iii) provides notification to the
                          Comptroller of the Currency (with respect to a
                          national bank) or to the Board (with respect to a
                          State member bank) not later than 30 days after
                          making the investment or loan.

    [[Page 110 STAT. 3009-406]]

        ``(b) Definitions.--For purposes of this section--
                ``(1) the term `affiliate' has the same meaning as in
            section 2 of the Banking Act of 1933; and
                ``(2) the term `well capitalized' has the same meaning as in
            section 38(b) of the Federal Deposit Insurance Act.''.

    SEC. 2207. ELIMINATION OF APPROVAL REQUIREMENT FOR DIVESTITURES.

        Section 2(g) of the Bank Holding Company Act of 1956 (12 U.S.C.
    1841(g)) is amended--
                (1) in paragraph (1), by adding ``and'' at the end;
                (2) in paragraph (2), by striking ``; and'' and inserting a
            period; and
                (3) by striking paragraph (3).

    SEC. 2208. STREAMLINED NONBANKING ACQUISITIONS BY WELL CAPITALIZED AND
                WELL MANAGED BANKING ORGANIZATIONS.

        (a) Notice Requirements.--Section 4(j) of the Bank Holding Company
    Act of 1956 (12 U.S.C. 1843(j)) is amended--
                (1) in paragraph (1)(A), by striking ``No'' and inserting
            ``Except as provided in paragraph (3), no''; and
                (2) by adding at the end the following new paragraphs:
                ``(3) No notice required for certain transactions.--No
            notice under paragraph (1) of this subsection or under
            subsection (c)(8) or (a)(2)(B) is required for a proposal by a
            bank holding company to engage in any activity or acquire the
            shares or assets of any company, other than an insured
            depository institution, if the proposal qualifies under
            paragraph (4).
                ``(4) Criteria for statutory approval.--A proposal qualifies
            under this paragraph if all of the following criteria are met:
                        ``(A) Financial criteria.--Both before and
                    immediately after the proposed transaction--
                              ``(i) the acquiring bank holding company is
                          well capitalized;
                              ``(ii) the lead insured depository institution
                          of such holding company is well capitalized;
                              ``(iii) well capitalized insured depository
                          institutions control at least 80 percent of the
                          aggregate total risk-weighted assets of insured
                          depository institutions controlled by such holding
                          company; and
                              ``(iv) no insured depository institution
                          controlled by such holding company is
                          undercapitalized.
                        ``(B) Managerial criteria.--
                              ``(i) Well managed.--At the time of the
                          transaction, the acquiring bank holding company,
                          its lead insured depository institution, and
                          insured depository institutions that control at
                          least 90 percent of the aggregate total risk-
                          weighted assets of insured depository institutions
                          controlled by such holding company are well
                          managed.
                              ``(ii) Limitation on poorly managed
                          institutions.--Except as provided in paragraph
                          (6), no insured depository institution controlled
                          by the acquiring bank holding company has received
                          1 of the 2

    [[Page 110 STAT. 3009-407]]

                          lowest composite ratings at the later of the
                          institution's most recent examination or
                          subsequent review.
                        ``(C) Activities permissible.--Following
                    consummation of the proposal, the bank holding company
                    engages directly or through a subsidiary solely in--
                              ``(i) activities that are permissible under
                          subsection (c)(8), as determined by the Board by
                          regulation or order thereunder, subject to all of
                          the restrictions, terms, and conditions of such
                          subsection and such regulation or order; and
                              ``(ii) such other activities as are otherwise
                          permissible under this section, subject to the
                          restrictions, terms and conditions, including any
                          prior notice or approval requirements, provided in
                          this section.
                        ``(D) Size of acquisition.--
                              ``(i) Asset size.--The book value of the total
                          assets to be acquired does not exceed 10 percent
                          of the consolidated total risk-weighted assets of
                          the acquiring bank holding company.
                              ``(ii) Consideration.--The gross consideration
                          to be paid for the securities or assets does not
                          exceed 15 percent of the consolidated Tier 1
                          capital of the acquiring bank holding company.
                        ``(E) Notice not otherwise warranted.--For proposals
                    described in paragraph (5)(B), the Board has not, before
                    the conclusion of the period provided in paragraph
                    (5)(B), advised the bank holding company that a notice
                    under paragraph (1) is required.
                        ``(F) Compliance criterion.--During the 12-month
                    period ending on the date on which the bank holding
                    company proposes to commence an activity or acquisition,
                    no administrative enforcement action has been commenced,
                    and no cease and desist order has been issued pursuant
                    to section 8 of the Federal Deposit Insurance Act,
                    against the bank holding company or any depository
                    institution subsidiary of the holding company, and no
                    such enforcement action, order, or other administrative
                    enforcement proceeding is pending as of such date.
                ``(5) Notification.--
                        ``(A) Commencement of activities approved by rule.--
                    A bank holding company that qualifies under paragraph
                    (4) and that proposes to engage de novo, directly or
                    through a subsidiary, in any activity that is
                    permissible under subsection (c)(8), as determined by
                    the Board by regulation, may commence that activity
                    without prior notice to the Board and must provide
                    written notification to the Board not later than 10
                    business days after commencing the activity.
                        ``(B) Activities permitted by order and
                    acquisitions.--
                              ``(i) In general.--At least 12 business days
                          before commencing any activity pursuant to
                          paragraph (3) (other than an activity described in
                          subparagraph (A) of this paragraph) or acquiring
                          shares or assets of

    [[Page 110 STAT. 3009-408]]

                          any company pursuant to paragraph (3), the bank
                          holding company shall provide written notice of
                          the proposal to the Board, unless the Board
                          determines that no notice or a shorter notice
                          period is appropriate.
                              ``(ii) Description of activities and terms.--A
                          notification under this subparagraph shall include
                          a description of the proposed activities and the
                          terms of any proposed acquisition.
                ``(6) Recently acquired institutions.--Any insured
            depository institution which has been acquired by a bank holding
            company during the 12-month period preceding the date on which
            the company proposes to commence an activity or acquisition
            pursuant to paragraph (3) may be excluded for purposes of
            paragraph (4)(B)(ii) if--
                        ``(A) the bank holding company has developed a plan
                    for the institution to restore the capital and
                    management of the institution which is acceptable to the
                    appropriate Federal banking agency; and
                        ``(B) all such insured depository institutions
                    represent, in the aggregate, less than 10 percent of the
                    aggregate total risk-weighted assets of all insured
                    depository institutions controlled by the bank holding
                    company.
                ``(7) Adjustment of percentages.--The Board may, by
            regulation, adjust the percentages and the manner in which the
            percentages of insured depository institutions are calculated
            under paragraph (4)(B)(i), (4)(D), or (6)(B) if the Board
            determines that any such adjustment is consistent with safety
            and soundness and the purposes of this Act.''.

        (b) Definitions.--Section 2(o) of the Bank Holding Company Act of
    1956 (12 U.S.C. 1841(o)) is amended--
                (1) by striking paragraph (1) and inserting the following
            new paragraph:
                ``(1) Capital terms.--
                        ``(A) Insured depository institutions.--With respect
                    to insured depository institutions, the terms `well
                    capitalized', `adequately capitalized', and
                    `undercapitalized' have the same meanings as in section
                    38(b) of the Federal Deposit Insurance Act.
                        ``(B) Bank holding company.--
                              ``(i) Adequately capitalized.--With respect to
                          a bank holding company, the term `adequately
                          capitalized' means a level of capitalization which
                          meets or exceeds all applicable Federal regulatory
                          capital standards.
                              ``(ii) Well capitalized.--A bank holding
                          company is `well capitalized' if it meets the
                          required capital levels for well capitalized bank
                          holding companies established by the Board.
                        ``(C) Other capital terms.--The terms `Tier 1' and
                    `risk-weighted assets' have the meanings given those
                    terms in the capital guidelines or regulations
                    established by the Board for bank holding companies.'';
                    and
                (2) by adding at the end the following new paragraphs:
                ``(8) Lead insured depository institutions.--
                        ``(A) In general.--The term `lead insured depository
                    institution' means the largest insured depository
                    institution controlled by the subject bank holding
                    company at any

    [[Page 110 STAT. 3009-409]]

                    time, based on a comparison of the average total risk-
                    weighted assets controlled by each insured depository
                    institution during the previous 12-month period.
                        ``(B) Branch or agency.--For purposes of this
                    paragraph and section 4(j)(4), the term `insured
                    depository institution' includes any branch or agency
                    operated in the United States by a foreign bank.
                ``(9) Well managed.--The term `well managed' means--
                        ``(A) in the case of any company or depository
                    institution which receives examinations, the achievement
                    of--
                              ``(i) a CAMEL composite rating of 1 or 2 (or
                          an equivalent rating under an equivalent rating
                          system) in connection with the most recent
                          examination or subsequent review of such company
                          or institution; and
                              ``(ii) at least a satisfactory rating for
                          management, if such rating is given; or
                        ``(B) in the case of a company or depository
                    institution that has not received an examination rating,
                    the existence and use of managerial resources which the
                    Board determines are satisfactory.''.

    SEC. 2209. ELIMINATION OF UNNECESSARY FILING FOR OFFICER AND DIRECTOR
                APPOINTMENTS.

        Section 32 of the Federal Deposit Insurance Act (12 U.S.C. 1831i) is
    amended--
                (1) in subsection (a)--
                        (A) by inserting ``(or such other period, as
                    determined by the appropriate Federal banking agency)''
                    after ``30 days'';
                        (B) by striking ``if the insured depository
                    institution or depository institution holding company''
                    and inserting ``if '';
                        (C) by striking paragraphs (1) and (2);
                        (D) by redesignating paragraph (3) as paragraph (1);
                        (E) in paragraph (1), as redesignated--
                              (i) by inserting ``the insured depository
                          institution or depository institution holding
                          company'' before ``is not in compliance''; and
                              (ii) by striking the period at the end and
                          inserting ``; or''; and
                        (F) by adding at the end the following new
                    paragraph:
                ``(2) the agency determines, in connection with the review
            by the agency of the plan required under section 38 or
            otherwise, that such prior notice is appropriate.''; and
                (2) in subsection (b), by striking ``30-day period'' and
            inserting ``notice period, not to exceed 90 days,''.

    SEC. 2210. AMENDMENTS TO THE DEPOSITORY INSTITUTION MANAGEMENT
                INTERLOCKS ACT.

        (a) Dual Service Among Larger Organizations.--Section 204 of the
    Depository Institution Management Interlocks Act (12 U.S.C. 3203) is
    amended--
                (1) by striking ``$1,000,000,000'' and inserting
            ``$2,500,000,000'';
                (2) by striking ``$500,000,000'' and inserting
            ``$1,500,000,000''; and

    [[Page 110 STAT. 3009-410]]

                (3) by adding at the end the following: ``In order to allow
            for inflation or market changes, the appropriate Federal
            depository institutions regulatory agencies may, by regulation,
            adjust, as necessary, the amount of total assets required for
            depository institutions or depository holding companies under
            this section.''.

        (b) Extension of Grandfather Exemption.--Section 206 of the
    Depository Institution Management Interlocks Act (12 U.S.C. 3205) is
    amended--
                (1) in subsection (a), by striking ``for a period of,
            subject to the requirements of subsection (c), 20 years after
            the date of enactment of this title'';
                (2) in subsection (b), by striking the second sentence; and
                (3) by striking subsection (c).

        (c) Regulations.--Section 209 of the Depository Institution
    Management Interlocks Act (12 U.S.C. 3207) is amended--
                (1) in subsection (a)--
                        (A) by striking ``(a) In General.--Rules and
                    regulations'' and inserting ``Regulations'';
                        (B) by inserting ``, including regulations that
                    permit service by a management official that would
                    otherwise be prohibited by section 203 or section 204,
                    if such service would not result in a monopoly or
                    substantial lessening of competition,'' after ``title'';
                        (C) in paragraph (4)--
                              (i) by striking ``Federal Home Loan Bank
                          Board'' and inserting ``Director of the Office of
                          Thrift Supervision''; and
                              (ii) by striking ``Savings and Loan'' and
                          inserting ``Deposit''; and
                (2) by striking subsections (b) and (c).

    SEC. 2211. ELIMINATION OF RECORDKEEPING AND REPORTING REQUIREMENTS FOR
                OFFICERS.

        (a) Employee Benefit Plans.--Section 22(h)(2) of the Federal Reserve
    Act (12 U.S.C. 375b(2)) is amended--
                (1) by redesignating subparagraphs (A) through (C) as
            clauses (i) through (iii), respectively, and indenting
            appropriately;
                (2)  by  striking  ``(2)  Preferential  terms  prohibited.--
            '' and inserting the following:
                ``(2) Preferential terms prohibited.--
                        ``(A) In general.--''; and
                (3) by adding at the end the following new subparagraph:
                        ``(B) Exception.--Nothing in this paragraph shall
                    prohibit any extension of credit made pursuant to a
                    benefit or compensation program--
                              ``(i) that is widely available to employees of
                          the member bank; and
                              ``(ii) that does not give preference to any
                          officer, director, or principal shareholder of the
                          member bank, or to any related interest of such
                          person, over other employees of the member
                          bank.''.

        (b) Exception for Extensions of Credit to Executive Officers and
    Directors of Affiliates.--Section 22(h)(8)(B) of the Federal Reserve Act
    (12 U.S.C. 375b(8)(B)) is amended to read as follows:

    [[Page 110 STAT. 3009-411]]

                        ``(B) Exception.--The Board may, by regulation, make
                    exceptions to subparagraph (A) for any executive officer
                    or director of a subsidiary of a company that controls
                    the member bank if--
                              ``(i) the executive officer or director does
                          not have authority to participate, and does not
                          participate, in major policymaking functions of
                          the member bank; and
                              ``(ii) the assets of such subsidiary do not
                          exceed 10 percent of the consolidated assets of a
                          company that controls the member bank and such
                          subsidiary (and is not controlled by any other
                          company).''.

    SEC. 2212. REPAYMENT OF TREASURY LOAN.

        Section 1108 of the Federal Financial Institutions Reform, Recovery,
    and Enforcement Act of 1989 (12 U.S.C. 3337) is amended by adding at the
    end the following new subsection.--
        ``(c) Repayment of Treasury Loan.--Not later than September 30,
    1998, the Appraisal Subcommittee shall repay to the Secretary of the
    Treasury the unpaid portion of the $5,000,000 paid to the Appraisal
    Subcommittee pursuant to this section.''.

    SEC. 2213. BRANCH CLOSURES.

        Section 42 of the Federal Deposit Insurance Act (12 U.S.C. 1831r-1)
    is amended by adding at the end the following new subsection:
        ``(e) Scope of Application.--This section shall not apply with
    respect to--
                ``(1) an automated teller machine;
                ``(2) the relocation of a branch or consolidation of one or
            more branches into another branch, if the relocation or
            consolidation--
                        ``(A) occurs within the immediate neighborhood; and
                        ``(B) does not substantially affect the nature of
                    the business or customers served; or
                ``(3) a branch that is closed in connection with--
                        ``(A) an emergency acquisition under--
                              ``(i) section 11(n); or
                              ``(ii) subsection (f) or (k) of section 13; or
                        ``(B) any assistance provided by the Corporation
                    under section 13(c).''.

    SEC. 2214. FOREIGN BANKS.

        (a) Examination of Branches and Agencies by Board.--Section 7(c) of
    the International Banking Act of 1978 (12 U.S.C. 3105(c)) is amended--
                (1) by striking ``(c)'' and inserting the following:

        ``(c) Foreign Bank Examinations and Reporting.--'';
                (2) in paragraph (1)(B), by adding at the end the following
            new clause:
                              ``(iii) Avoidance of duplication.--In
                          exercising its authority under this paragraph, the
                          Board shall take all reasonable measures to reduce
                          burden and avoid unnecessary duplication of
                          examinations.'';
                (3) by striking subparagraph (C) of paragraph (1) and
            inserting the following:
                        ``(C) On-site examination.--Each Federal branch or
                    agency, and each State branch or agency, of a foreign

    [[Page 110 STAT. 3009-412]]

                    bank shall be subject to on-site examination by an
                    appropriate Federal banking agency or State bank
                    supervisor as frequently as would a national bank or a
                    State bank, respectively, by the appropriate Federal
                    banking agency.''; and
                (4) in paragraph (1)(D), by inserting before the period at
            the end the following: ``, only to the same extent that fees are
            collected by the Board for examination of any State member
            bank''.

        (b) Establishment of Foreign Bank Offices in the United States.--
    Section 7(d) of the International Banking Act of 1978 (12 U.S.C.
    3105(d)) is amended--
                (1) in paragraph (2), by striking ``The Board'' and
            inserting ``Except as provided in paragraph (6), the Board'';
                (2) in paragraph (5), by striking ``Consistent with the
            standards for approval in paragraph (2), the''; and inserting
            ``The''; and
                (3) by adding at the end the following new paragraphs:
                ``(6) Exception.--
                        ``(A) In general.--If the Board is unable to find,
                    under paragraph (2), that a foreign bank is subject to
                    comprehensive supervision or regulation on a
                    consolidated basis by the appropriate authorities in its
                    home country, the Board may nevertheless approve an
                    application by such foreign bank under paragraph (1)
                    if--
                              ``(i) the appropriate authorities in the home
                          country of the foreign bank are actively working
                          to establish arrangements for the consolidated
                          supervision of such bank; and
                              ``(ii) all other factors are consistent with
                          approval.
                        ``(B) Other considerations.--In deciding whether to
                    use its discretion under subparagraph (A), the Board
                    shall also consider whether the foreign bank has adopted
                    and implements procedures to combat money laundering.
                    The Board may also take into account whether the home
                    country of the foreign bank is developing a legal regime
                    to address money laundering or is participating in
                    multilateral efforts to combat money laundering.
                        ``(C) Additional conditions.--In approving an
                    application under this paragraph, the Board, after
                    requesting and taking into consideration the views of
                    the appropriate State bank supervisor or the Comptroller
                    of the Currency, as the case may be, may impose such
                    conditions or restrictions relating to the activities or
                    business operations of the proposed branch, agency, or
                    commercial lending company subsidiary, including
                    restrictions on sources of funding, as are considered
                    appropriate. The Board shall coordinate with the
                    appropriate State bank supervisor or the Comptroller of
                    the Currency, as appropriate, in the implementation of
                    such conditions or restrictions.
                        ``(D) Modification of conditions.--Any condition or
                    restriction imposed by the Board in connection with the
                    approval of an application under authority of this
                    paragraph may be modified or withdrawn.
                ``(7) Time period for board action.--
                        ``(A) Final action.--The Board shall take final
                    action on any application under paragraph (1) not later
                    than

    [[Page 110 STAT. 3009-413]]

                    180 days after receipt of the application, except that
                    the Board may extend for an additional 180 days the
                    period within which to take final action on such
                    application after providing notice of, and the reasons
                    for, the extension to the applicant foreign bank and any
                    appropriate State bank supervisor or the Comptroller of
                    the Currency, as appropriate.
                        ``(B) Failure to submit information.--The Board may
                    deny any application if it does not receive information
                    requested from the applicant foreign bank or appropriate
                    authorities in the home country of the foreign bank in
                    sufficient time to permit the Board to evaluate such
                    information adequately within the time periods for final
                    action set forth in subparagraph (A).
                        ``(C) Waiver.--A foreign bank may waive the
                    applicability of this paragraph with respect to any
                    application under paragraph (1).''.

        (c) Termination of Foreign Bank Offices in the United States.--
    Section 7(e)(1)(A) of the International Banking Act of 1978 (12 U.S.C.
    3105(e)(1)(A)) is amended--
                (1) by inserting ``(i)'' after ``(A)'';
                (2) by striking ``or'' at the end and inserting ``and''; and
                (3) by adding at the end the following new clause:
                        ``(ii) the appropriate authorities in the home
                    country of the foreign bank are not making demonstrable
                    progress in establishing arrangements for the
                    comprehensive supervision or regulation of such foreign
                    bank on a consolidated basis; or''.

    SEC. 2215. DISPOSITION OF FORECLOSED ASSETS.

        Section 4(c)(2) of the Bank Holding Company Act of 1956 (12 U.S.C.
    1843(c)(2)) is amended--
                (1) by striking ``for not more than one year at a time'';
            and
                (2) by striking ``but no such extensions shall extend beyond
            a date five years'' and inserting ``and, in the case of a bank
            holding company which has not disposed of such shares within 5
            years after the date on which such shares were acquired, the
            Board may, upon the application of such company, grant
            additional exemptions if, in the judgment of the Board, such
            extension would not be detrimental to the public interest and,
            either the bank holding company has made a good faith attempt to
            dispose of such shares during such 5-year period, or the
            disposal of such shares during such 5-year period would have
            been detrimental to the company, except that the aggregate
            duration of such extensions shall not extend beyond 10 years''.

    SEC. 2216. EXEMPTION AUTHORITY FOR ANTITYING PROVISION.

        (a) Federal Reserve Board Authority.--Section 106(b)(1) of the Bank
    Holding Company Act Amendments of 1970 (12 U.S.C. 1972(1)) is amended in
    the last sentence, by inserting ``and the prohibitions of section
    4(f)(9) and 4(h)(2) of the Bank Holding Company Act of 1956'' after
    ``prohibition''.
        (b) OTS Authority.--Section 5(q) of the Home Owners' Loan Act (12
    U.S.C. 1464(q)) is amended by adding at the end the following new
    paragraph:

    [[Page 110 STAT. 3009-414]]

                ``(6) Exceptions.--The Director may, by regulation or order,
            permit such exceptions to the prohibitions of this subsection as
            the Director considers will not be contrary to the purposes of
            this subsection and which conform to exceptions granted by the
            Board of Governors of the Federal Reserve System pursuant to
            section 106(b) of the Bank Holding Company Act Amendments of
            1970.''.

    SEC. 2217. FDIC APPROVAL OF NEW STATE BANK POWERS.

        Section 24 of the Federal Deposit Insurance Act (12 U.S.C. 1831a) is
    amended--
                (1) in subsection (a)--
                        (A) by redesignating paragraphs (1) and (2) as
                    subparagraphs (A) and (B), respectively, and indenting
                    appropriately;
                        (B) by striking ``In general.--'' and inserting the
                    following: ``Permissible activities.--
                ``(1) In general.--''; and
                        (C) by adding at the end the following new
                    paragraph:
                ``(2) Processing period.--
                        ``(A) In general.--The Corporation shall make a
                    determination under paragraph (1)(A) not later than 60
                    days after receipt of a completed application that may
                    be required under this subsection.
                        ``(B) Extension of time period.--The Corporation may
                    extend the 60-day period referred to in subparagraph (A)
                    for not more than 30 additional days, and shall notify
                    the applicant of any such extension.''; and
                (2) in subsection (d), by adding at the end the following
            new paragraph:
                ``(3) Processing period.--
                        ``(A) In general.--The Corporation shall make a
                    determination under paragraph (1)(A) not later than 60
                    days after receipt of a completed application that may
                    be required under this subsection.
                        ``(B) Extension of time period.--The Corporation may
                    extend the 60-day period referred to in subparagraph (A)
                    for not more than 30 additional days, and shall notify
                    the applicant of any such extension.''.

              CHAPTER 2--ELIMINATING UNNECESSARY REGULATORY BURDENS

    SEC. 2221. SMALL BANK EXAMINATION CYCLE.

        Section 10(d) of the Federal Deposit Insurance Act (12 U.S.C.
    1820(d)) is amended--
                (1) by redesignating the second paragraph designated as
            paragraph (8) as paragraph (10), and by inserting that
            paragraph, as redesignated, immediately after paragraph (9); and
                (2) in paragraph (10), as redesignated, by striking
            ``$175,000,000'' and inserting ``$250,000,000''.

    SEC. 2222. <<NOTE: 12 USC 3311.>> REQUIRED REVIEW OF REGULATIONS.

        (a) In General.--Not less frequently than once every 10 years, the
    Council and each appropriate Federal banking agency represented on the
    Council shall conduct a review of all regulations prescribed by the
    Council or by any such appropriate Federal banking agency, respectively,
    in order to identify outdated or otherwise

    [[Page 110 STAT. 3009-415]]

    unnecessary regulatory requirements imposed on insured depository
    institutions.
        (b) Process.--In conducting the review under subsection (a), the
    Council or the appropriate Federal banking agency shall--
                (1) categorize the regulations described in subsection (a)
            by type (such as consumer regulations, safety and soundness
            regulations, or such other designations as determined by the
            Council, or the appropriate Federal banking agency); and
                (2) at regular intervals, provide notice and solicit public
            comment on a particular category or categories of regulations,
            requesting commentators to identify areas of the regulations
            that are outdated, unnecessary, or unduly burdensome.

        (c) Complete Review.--The Council or the appropriate Federal banking
    agency shall ensure that the notice and comment period described in
    subsection (b)(2) is conducted with respect to all regulations described
    in subsection (a) not less frequently than once every 10 years.
        (d) Regulatory Response.--The Council or the appropriate Federal
    banking agency shall--
                (1) publish in the Federal Register a summary of the
            comments received under this section, identifying significant
            issues raised and providing comment on such issues; and
                (2) eliminate unnecessary regulations to the extent that
            such action is appropriate.

        (e) Report to Congress.--Not later than 30 days after carrying out
    subsection (d)(1), the Council shall submit to the Congress a report,
    which shall include--
                (1) a summary of any significant issues raised by public
            comments received by the Council and the appropriate Federal
            banking agencies under this section and the relative merits of
            such issues; and
                (2) an analysis of whether the appropriate Federal banking
            agency involved is able to address the regulatory burdens
            associated with such issues by regulation, or whether such
            burdens must be addressed by legislative action.

    SEC. 2223. REPEAL OF IDENTIFICATION OF NONBANK FINANCIAL INSTITUTION
                CUSTOMERS.

        Subchapter II of chapter 53 of title 31, United States Code, is
    amended--
                (1) by striking section 5327;
                (2) in the chapter analysis, by striking the item relating
            to section 5327; and
                (3) in section 5321(a), by striking paragraph (7).

    SEC. 2224. REPEAL OF CERTAIN REPORTING REQUIREMENTS.

        (a) FDIA.--Section 477 of the Federal Deposit Insurance Corporation
    Improvement Act of 1991 (12 U.S.C. 251) is repealed.
        (b) FIRREA.--Section 918 of the Financial Institutions Reform,
    Recovery, and Enforcement <<NOTE: 12 USC 1833.>>  Act of 1989 (12 U.S.C.
    1833 note) is repealed.

        (c) ILS.--Section 913 of the International Lending Supervision Act
    of 1983 (12 U.S.C. 3912) is repealed.

    SEC. 2225. INCREASE IN HOME MORTGAGE DISCLOSURE EXEMPTION THRESHOLD.

        (a) In General.--Section 309 of the Home Mortgage Disclosure Act of
    1975 (12 U.S.C. 2808) is amended--

    [[Page 110 STAT. 3009-416]]

                (1) by striking ``This title'' and inserting ``(a) In
            General.--This title'';
                (2) in the 3d sentence, by inserting ``(as determined
            without regard to the adjustment made by subsection (b))''
            before the period; and
                (2) by adding at the end the following new subsection:

        ``(b) CPI Adjustments.--
                ``(1) In general.--Subject to paragraph (2), the dollar
            amount applicable with respect to institutions described in
            section 303(2)(A) under the 2d sentence of subsection (a) shall
            be adjusted annually after December 31, 1996, by the annual
            percentage increase in the Consumer Price Index for Urban Wage
            Earners and Clerical Workers published by the Bureau of Labor
            Statistics.
                ``(2) 1-time adjustment for prior inflation.--The first
            adjustment made under paragraph (1) after the date of the
            enactment of the Economic Growth and Regulatory Paperwork
            Reduction Act of 1996 shall be the percentage by which--
                        ``(A) the Consumer Price Index described in such
                    paragraph for the calendar year 1996, exceeds
                        ``(B) such Consumer Price Index for the calendar
                    year 1975.
                ``(3) Rounding.--The dollar amount applicable under
            paragraph (1) for any calendar year shall be the amount
            determined in accordance with subparagraphs (A) and (B) of
            paragraph (2) and rounded to the nearest multiple of
            $1,000,000.''.

        (b) Opportunity To Reduce Compliance Burden.--Section 304 of the
    Home Mortgage Disclosure Act of 1975 (12 U.S.C. 2803) is amended by
    adding at the end the following new subsection:
        ``(m) Opportunity To Reduce Compliance Burden.--
                ``(1) In general.--
                        ``(A) Satisfaction of public availability
                    requirements.--A depository institution shall be deemed
                    to have satisfied the public availability requirements
                    of subsection (a) if the institution compiles the
                    information required under that subsection at the home
                    office of the institution and provides notice at the
                    branch locations specified in subsection (a) that such
                    information is available from the home office of the
                    institution upon written request.
                        ``(B) Provision of information upon request.--Not
                    later than 15 days after the receipt of a written
                    request for any information required to be compiled
                    under subsection (a), the home office of the depository
                    institution receiving the request shall provide the
                    information pertinent to the location of the branch in
                    question to the person requesting the information.
                ``(2) Form of information.--In complying with paragraph (1),
            a depository institution shall, in the sole discretion of the
            institution, provide the person requesting the information
            with--
                        ``(A) a paper copy of the information requested; or
                        ``(B) if acceptable to the person, the information
                    through a form of electronic medium, such as a computer
                    disk.''.

    [[Page 110 STAT. 3009-417]]

    SEC. 2226. ELIMINATION OF STOCK LOAN REPORTING REQUIREMENT.

        Section 7(j) of the Federal Deposit Insurance Act (12 U.S.C.
    1817(j)) is amended--
                (1) in paragraph (9)(A)--
                        (A) by striking ``financial institution and any
                    affiliate of any financial institution'' and inserting
                    ``foreign bank, or any affiliate thereof,''; and
                        (B) by striking ``by the financial institution and
                    such institution's affiliates'' and inserting ``by the
                    foreign bank or any affiliate thereof'';
                (2) in paragraph (9)(B)--
                        (A) by striking ``paragraph--'' and inserting
                    ``paragraph, the following definitions shall apply:'';
                        (B) by striking clause (i) and inserting the
                    following:
                              ``(i) Foreign bank.--The terms `foreign bank'
                          and `affiliate' have the same meanings as in
                          section 1 of the International Banking Act of
                          1978.''; and
                        (C) in clause (iii), by striking ``financial
                    institution'' and inserting ``foreign bank or any
                    affiliate thereof'';
                (3) in paragraph (9)(C)--
                        (A) by striking ``financial institution or any of
                    its affiliates'' and inserting ``foreign bank or any
                    affiliate thereof''; and
                        (B) by striking ``financial institution or its
                    affiliates'' and inserting ``foreign bank or any
                    affiliate thereof'';
                (4) in paragraph (9)(D)--
                        (A) in clause (i)--
                              (i) by striking ``the financial institution
                          and all affiliates of the institution'' and
                          inserting ``the foreign bank and all affiliates
                          thereof''; and
                              (ii) by striking ``financial institution or
                          any such affiliate'' and inserting ``foreign bank
                          or affiliate thereof'';
                        (B) in clause (ii), by striking ``financial
                    institution and any affiliate of such institution'' and
                    inserting ``foreign bank and any affiliate thereof'';
                    and
                        (C) in clause (iii), by striking ``financial
                    institution'' and inserting ``foreign bank or any
                    affiliate thereof''; and
                (5) in paragraph (9)(E)--
                        (A) in clause (i)--
                              (i) by striking ``a financial institution and
                          the affiliates of such institution'' and inserting
                          ``a foreign bank or any affiliate thereof''; and
                              (ii) by striking ``institution or affiliate''
                          each place such term appears and inserting
                          ``foreign bank or any affiliate thereof''; and
                        (B) in clause (ii), by striking ``financial
                    institution and any affiliate of such institution'' and
                    inserting ``foreign bank and any affiliate thereof''.

    SEC. 2227. <<NOTE: 12 USC 252.>> CREDIT AVAILABILITY ASSESSMENT.

        (a) Study.--
                (1) In general.--Not later than 12 months after the date of
            enactment of this Act, and once every 60 months thereafter, the
            Board, in consultation with the Director of the Office of Thrift
            Supervision, the Comptroller of the Currency, the Board of
            Directors of the Corporation, the Administrator of the

    [[Page 110 STAT. 3009-418]]

            National Credit Union Administration, the Administrator of the
            Small Business Administration, and the Secretary of Commerce,
            shall conduct a study and submit a report to the Congress
            detailing the extent of small business lending by all creditors.
                (2) Contents of study.--The study required under paragraph
            (1) shall identify, to the extent practicable, those factors
            which provide policymakers with insights into the small business
            credit market, including--
                        (A) the demand for small business credit, including
                    consideration of the impact of economic cycles on the
                    levels of such demand;
                        (B) the availability of credit to small businesses;
                        (C) the range of credit options available to small
                    businesses, such as those available from insured
                    depository institutions and other providers of credit;
                        (D) the types of credit products used to finance
                    small business operations, including the use of
                    traditional loans, leases, lines of credit, home equity
                    loans, credit cards, and other sources of financing;
                        (E) the credit needs of small businesses, including,
                    if appropriate, the extent to which such needs differ,
                    based upon product type, size of business, cash flow
                    requirements, characteristics of ownership or investors,
                    or other aspects of such business;
                        (F) the types of risks to creditors in providing
                    credit to small businesses; and
                        (G) such other factors as the Board deems
                    appropriate.

        (b) Use of Existing Data.--The studies required by this section
    shall not increase the regulatory or paperwork burden on regulated
    financial institutions, other sources of small business credit, or small
    businesses.

                  CHAPTER 3--REGULATORY MICROMANAGEMENT RELIEF

    SEC. 2241. NATIONAL BANK DIRECTORS.

        Section 5146 of the Revised Statutes of the United States (12 U.S.C.
    72) is amended in the first sentence, by striking ``except'' and all
    that follows through the end of the sentence and inserting the
    following: ``except that the Comptroller may, in the discretion of the
    Comptroller, waive the requirement of residency.''.

    SEC. 2242. PAPERWORK REDUCTION REVIEW.

        Section 303(a) of the Riegle Community Development and Regulatory
    Improvement Act of 1994 (12 U.S.C. 4803(a)) is amended--
                (1) by redesignating paragraphs (2) and (3) as paragraphs
            (3) and (4), respectively; and
                (2) by inserting after paragraph (1) the following new
            paragraph:
                ``(2) review the extent to which existing regulations
            require insured depository institutions and insured credit
            unions to produce unnecessary internal written policies and
            eliminate such requirements, where appropriate;''.

    [[Page 110 STAT. 3009-419]]

    SEC. 2243. STATE BANK REPRESENTATION ON BOARD OF DIRECTORS OF THE FDIC.

        Section 2(a)(1)(C) of the Federal Deposit Insurance Act (12 U.S.C.
    1812(a)(1)(C)) is amended by inserting before the period ``, 1 of whom
    shall have State bank supervisory experience''.

    SEC. 2244. CONSULTATION AMONG EXAMINERS.

        (a) In General.--Section 10 of the Federal Deposit Insurance Act (12
    U.S.C. 1820) is amended by adding at the end the following new
    subsection:
        ``(j) Consultation Among Examiners.--
                ``(1) In general.--Each appropriate Federal banking agency
            shall take such action as may be necessary to ensure that
            examiners employed by the agency--
                        ``(A) consult on examination activities with respect
                    to any depository institution; and
                        ``(B) achieve an agreement and resolve any
                    inconsistencies in the recommendations to be given to
                    such institution as a consequence of any examinations.
                ``(2) Examiner-in-charge.--Each appropriate Federal banking
            agency shall consider appointing an examiner-in-charge with
            respect to a depository institution to ensure consultation on
            examination activities among all of the examiners of that agency
            involved in examinations of the institution.''.

        (b) Coordinated and Unified Examination Flexibility.--Section
    10(d)(6)(B) of the Federal Deposit Insurance Act (12 U.S.C.
    1820(d)(6)(B)) is amended by inserting ``or State bank supervisors''
    after ``one of the Federal agencies''.

     Subtitle C--Regulatory Impact on Cost of Credit and Credit Availability

    SEC. 2301. AUDIT COSTS.

        (a) Auditor Attestations.--Section 36 of the Federal Deposit
    Insurance Act (12 U.S.C. 1831m) is amended by striking subsection (e)
    and inserting the following:
        ``(e) [Repealed]''.
        (b) Independent Audit Committees.--Section 36(g)(1) of the Federal
    Deposit Insurance Act (12 U.S.C. 1831m(g)(1)) is amended--
                (1) in subparagraph (A), by inserting ``, except as provided
            in subparagraph (D)'' after ``management of the institution'';
            and
                (2) by adding at the end the following new subparagraph:
                        ``(D) Exemption authority.--
                              ``(i) In general.--An appropriate Federal
                          banking agency may, by order or regulation, permit
                          the independent audit committee of an insured
                          depository institution to be made up of less than
                          all, but no fewer than a majority of, outside
                          directors, if the agency determines that the
                          institution has encountered hardships in retaining
                          and recruiting a sufficient number of competent
                          outside directors to serve on the internal audit
                          committee of the institution.

    [[Page 110 STAT. 3009-420]]

                              ``(ii) Factors to be considered.--In
                          determining whether an insured depository
                          institution has encountered hardships referred to
                          in clause (i), the appropriate Federal banking
                          agency shall consider factors such as the size of
                          the institution, and whether the institution has
                          made a good faith effort to elect or name
                          additional competent outside directors to the
                          board of directors of the institution who may
                          serve on the internal audit committee.''.

        (c) Public Availability.--Section 36(a)(3) of the Federal Deposit
    Insurance Act (12 U.S.C. 1831m(a)(3)) is amended by adding at the end
    the following: ``Notwithstanding the preceding sentence, the Corporation
    and the appropriate Federal banking agencies may designate certain
    information as privileged and confidential and not available to the
    public.''.

    SEC. 2302. INCENTIVES FOR SELF-TESTING.

        (a) Equal Credit Opportunity.--
                (1) In general.--The Equal Credit Opportunity Act (15 U.S.C.
            1691 et seq.) is amended by inserting after section 704 the
            following new section:

    ``SEC. 704A. <<NOTE: 15 USC 1691c-l.>> INCENTIVES FOR SELF-TESTING AND
                SELF-CORRECTION.

        ``(a) Privileged Information.--
                ``(1) Conditions for privilege.--A report or result of a
            self-test (as that term is defined by regulations of the Board)
            shall be considered to be privileged under paragraph (2) if a
            creditor--
                        ``(A) conducts, or authorizes an independent third
                    party to conduct, a self-test of any aspect of a credit
                    transaction by a creditor, in order to determine the
                    level or effectiveness of compliance with this title by
                    the creditor; and
                        ``(B) has identified any possible violation of this
                    title by the creditor and has taken, or is taking,
                    appropriate corrective action to address any such
                    possible violation.
                ``(2) Privileged self-test.--If a creditor meets the
            conditions specified in subparagraphs (A) and (B) of paragraph
            (1) with respect to a self-test described in that paragraph, any
            report or results of that self-test--
                        ``(A) shall be privileged; and
                        ``(B) may not be obtained or used by any applicant,
                    department, or agency in any--
                              ``(i) proceeding or civil action in which one
                          or more violations of this title are alleged; or
                              ``(ii) examination or investigation relating
                          to compliance with this title.

        ``(b) Results of Self-Testing.--
                ``(1) In general.--No provision of this section may be
            construed to prevent an applicant, department, or agency from
            obtaining or using a report or results of any self-test in any
            proceeding or civil action in which a violation of this title is
            alleged, or in any examination or investigation of compliance
            with this title if--
                        ``(A) the creditor or any person with lawful access
                    to the report or results--
                              ``(i) voluntarily releases or discloses all,
                          or any part of, the report or results to the
                          applicant, department, or agency, or to the
                          general public; or

    [[Page 110 STAT. 3009-421]]

                              ``(ii) refers to or describes the report or
                          results as a defense to charges of violations of
                          this title against the creditor to whom the self-
                          test relates; or
                        ``(B) the report or results are sought in
                    conjunction with an adjudication or admission of a
                    violation of this title for the sole purpose of
                    determining an appropriate penalty or remedy.
                ``(2) Disclosure for determination of penalty or remedy.--
            Any report or results of a self-test that are disclosed for the
            purpose specified in paragraph (1)(B)--
                        ``(A) shall be used only for the particular
                    proceeding in which the adjudication or admission
                    referred to in paragraph (1)(B) is made; and
                        ``(B) may not be used in any other action or
                    proceeding.

        ``(c) Adjudication.--An applicant, department, or agency that
    challenges a privilege asserted under this section may seek a
    determination of the existence and application of that privilege in--
                ``(1) a court of competent jurisdiction; or
                ``(2) an administrative law proceeding with appropriate
            jurisdiction.''.
                (2) <<NOTE: 15 USC 1691c-l note.>> Regulations.--
                        (A) In general.--Not later than 6 months after the
                    date of enactment of this Act, in consultation with the
                    Secretary of Housing and Urban Development and the
                    agencies referred to in section 704 of the Equal Credit
                    Opportunity Act, and after providing notice and an
                    opportunity for public comment, the Board shall
                    prescribe final regulations to implement section 704A of
                    the Equal Credit Opportunity Act, as added by this
                    section.
                        (B) Self-test.--
                              (i) Definition.--The regulations prescribed
                          under subparagraph (A) shall include a definition
                          of the term ``self-test'' for purposes of section
                          704A of the Equal Credit Opportunity Act, as added
                          by this section.
                              (ii) Requirement for self-test.--The
                          regulations prescribed under subparagraph (A)
                          shall specify that a self-test shall be
                          sufficiently extensive to constitute a
                          determination of the level and effectiveness of
                          compliance by a creditor with the Equal Credit
                          Opportunity Act.
                              (iii) Substantial similarity to certain fair
                          housing act regulations.--The regulations
                          prescribed under subparagraph (A) shall be
                          substantially similar to the regulations
                          prescribed by the Secretary of Housing and Urban
                          Development to carry out section 814A(d) of the
                          Fair Housing Act, as added by this section.
                (3) Clerical amendment.--The table of sections for title VII
            of the Consumer Credit Protection Act is amended by inserting
            after the item relating to section 704 the following new item:

    ``704A. Incentives for self-testing and self-correction.''.

        (b) Fair Housing.--
                (1) In general.--The Fair Housing Act (42 U.S.C. 3601 et
            seq.) is amended by inserting after section 814 the following
            new section:

    [[Page 110 STAT. 3009-422]]

    ``SEC. 814A. <<NOTE: 42 USC 3614-1.>> INCENTIVES FOR SELF-TESTING AND
                SELF-CORRECTION.

        ``(a) Privileged Information.--
                ``(1) Conditions for privilege.--A report or result of a
            self-test (as that term is defined by regulation of the
            Secretary) shall be considered to be privileged under paragraph
            (2) if any person--
                        ``(A) conducts, or authorizes an independent third
                    party to conduct, a self-test of any aspect of a
                    residential real estate related lending transaction of
                    that person, or any part of that transaction, in order
                    to determine the level or effectiveness of compliance
                    with this title by that person; and
                        ``(B) has identified any possible violation of this
                    title by that person and has taken, or is taking,
                    appropriate corrective action to address any such
                    possible violation.
                ``(2) Privileged self-test.--If a person meets the
            conditions specified in subparagraphs (A) and (B) of paragraph
            (1) with respect to a self-test described in that paragraph, any
            report or results of that self-test--
                        ``(A) shall be privileged; and
                        ``(B) may not be obtained or used by any applicant,
                    department, or agency in any--
                              ``(i) proceeding or civil action in which one
                          or more violations of this title are alleged; or
                              ``(ii) examination or investigation relating
                          to compliance with this title.

        ``(b) Results of Self-Testing.--
                ``(1) In general.--No provision of this section may be
            construed to prevent an aggrieved person, complainant,
            department, or agency from obtaining or using a report or
            results of any self-test in any proceeding or civil action in
            which a violation of this title is alleged, or in any
            examination or investigation of compliance with this title if--
                        ``(A) the person to whom the self-test relates or
                    any person with lawful access to the report or the
                    results--
                              ``(i) voluntarily releases or discloses all,
                          or any part of, the report or results to the
                          aggrieved person, complainant, department, or
                          agency, or to the general public; or
                              ``(ii) refers to or describes the report or
                          results as a defense to charges of violations of
                          this title against the person to whom the self-
                          test relates; or
                        ``(B) the report or results are sought in
                    conjunction with an adjudication or admission of a
                    violation of this title for the sole purpose of
                    determining an appropriate penalty or remedy.
                ``(2) Disclosure for determination of penalty or remedy.--
            Any report or results of a self-test that are disclosed for the
            purpose specified in paragraph (1)(B)--
                        ``(A) shall be used only for the particular
                    proceeding in which the adjudication or admission
                    referred to in paragraph (1)(B) is made; and
                        ``(B) may not be used in any other action or
                    proceeding.

        ``(c) Adjudication.--An aggrieved person, complainant, department,
    or agency that challenges a privilege asserted under this section may
    seek a determination of the existence and application of that privilege
    in--

    [[Page 110 STAT. 3009-423]]

                ``(1) a court of competent jurisdiction; or
                ``(2) an administrative law proceeding with appropriate
            jurisdiction.''.
                (2) <<NOTE: 42 USC 3614-1 note.>> Regulations.--
                        (A) In general.--Not later than 6 months after the
                    date of enactment of this Act, in consultation with the
                    Board and after providing notice and an opportunity for
                    public comment, the Secretary of Housing and Urban
                    Development shall prescribe final regulations to
                    implement section 814A of the Fair Housing Act, as added
                    by this section.
                        (B) Self-test.--
                              (i) Definition.--The regulations prescribed by
                          the Secretary under subparagraph (A) shall include
                          a definition of the term ``self-test'' for
                          purposes of section 814A of the Fair Housing Act,
                          as added by this section.
                              (ii) Requirement for self-test.--The
                          regulations prescribed by the Secretary under
                          subparagraph (A) shall specify that a self-test
                          shall be sufficiently extensive to constitute a
                          determination of the level and effectiveness of
                          the compliance by a person engaged in residential
                          real estate related lending activities with the
                          Fair Housing Act.
                              (iii) Substantial similarity to certain equal
                          credit opportunity act regulations.--The
                          regulations prescribed under subparagraph (A)
                          shall be substantially similar to the regulations
                          prescribed by the Board to carry out section 704A
                          of the Equal Credit Opportunity Act, as added by
                          this section.

        (c) <<NOTE: 15 USC 1691c-l note.>> Applicability.--
                (1) In general.--Except as provided in paragraph (2), the
            privilege provided for in section 704A of the Equal Credit
            Opportunity Act or section 814A of the Fair Housing Act (as
            those sections are added by this section) shall apply to a self-
            test (as that term is defined pursuant to the regulations
            prescribed under subsection (a)(2) or (b)(2) of this section, as
            appropriate) conducted before, on, or after the effective date
            of the regulations prescribed under subsection (a)(2) or (b)(2),
            as appropriate.
                (2) Exception.--The privilege referred to in paragraph (1)
            does not apply to such a self-test conducted before the
            effective date of the regulations prescribed under subsection
            (a) or (b), as appropriate, if--
                        (A) before that effective date, a complaint against
                    the creditor or person engaged in residential real
                    estate related lending activities (as the case may be)
                    was--
                              (i) formally filed in any court of competent
                          jurisdiction; or
                              (ii) the subject of an ongoing administrative
                          law proceeding;
                        (B) in the case of section 704A of the Equal Credit
                    Opportunity Act, the creditor has waived the privilege
                    pursuant to subsection (b)(1)(A)(i) of that section; or
                        (C) in the case of section 814A of the Fair Housing
                    Act, the person engaged in residential real estate
                    related lending activities has waived the privilege
                    pursuant to subsection (b)(1)(A)(i) of that section.

    [[Page 110 STAT. 3009-424]]

    SEC. 2303. QUALIFIED THRIFT INVESTMENT AMENDMENTS.

        (a) Credit Cards.--Section 5(b) of the Home Owners' Loan Act (12
    U.S.C. 1464(b)) is amended--
                (1) by striking paragraph (4); and
                (2) by redesignating paragraph (5) as paragraph (4).

        (b) Loans or Investments Without Percentage of Assets Limitation.--
    Section 5(c)(1) of the Home Owners' Loan Act (12 U.S.C. 1464(c)(1)) is
    amended by adding at the end the following new subparagraphs:
                        ``(T) Credit card loans.--Loans made through credit
                    cards or credit card accounts.
                        ``(U) Educational loans.--Loans made for the payment
                    of educational expenses.''.

        (c) Commercial and Other Loans.--Section 5(c)(2)(A) of the Home
    Owners' Loan Act (12 U.S.C. 1464(c)(2)(A)) is amended to read as
    follows:
                        ``(A) Commercial and other loans.--Secured or
                    unsecured loans for commercial, corporate, business, or
                    agricultural purposes. The aggregate amount of loans
                    made under this subparagraph may not exceed 20 percent
                    of the total assets of the Federal savings association,
                    and amounts in excess of 10 percent of such total assets
                    may be used under this subparagraph only for small
                    business loans, as that term is defined by the
                    Director.''.

        (d) Loans or Investments Limited to 5 Percent of Assets.--Section
    5(c)(3) of the Home Owners' Loan Act (12 U.S.C. 1464(c)(3)) is amended--
                (1) by striking subparagraph (A); and
                (2) by redesignating subparagraphs (B), (C), and (D) as
            subparagraphs (A), (B), and (C), respectively.

        (e) Qualified Thrift Lender Test.--Section 10(m)(1) of the Home
    Owners' Loan Act (12 U.S.C. 1467a(m)(1)) is amended--
                (1) by redesignating subparagraph (B) as clause (ii);
                (2) in subparagraph (A), by striking ``(A) the savings'' and
            inserting ``(B)(i) the savings''; and
                (3) by inserting after ``if--'' the following new
            subparagraph:
                        ``(A) the savings association qualifies as a
                    domestic building and loan association, as such term is
                    defined in section 7701(a)(19) of the Internal Revenue
                    Code of 1986; or''.

        (f) Branching.--Section 5(r) of the Home Owners' Loan Act (12 U.S.C.
    1464(r)) is amended--
                (1) in paragraph (1)--
                        (A) in the first sentence--
                              (i) by inserting before the period ``, or
                          qualifies as a qualified thrift lender, as
                          determined under section 10(m) of this Act''; and
                              (ii) by striking ``(c)'' and inserting
                          ``(C)''; and
                        (B) in the second sentence, by inserting before the
                    period ``or as a qualified thrift lender, as determined
                    under section 10(m) of this Act, as applicable''; and
                (2) in paragraph (2), by striking subparagraph (C) and
            inserting the following:
                ``(C) the law of the State where the branch is located, or
            is to be located, would permit establishment of the branch if
            the association was a savings association or savings bank

    [[Page 110 STAT. 3009-425]]

            chartered by the State in which its home office is located;
            or''.

        (g) Definition.--Section 10(m)(4) of the Home Owners' Loan Act (12
    U.S.C. 1467a(m)(4)) is amended--
                (1) by striking ``subsection--'' and inserting ``subsection,
            the following definitions shall apply:'';
                (2) in subparagraph (C)--
                        (A) in clause (ii), by adding at the end the
                    following new subclause:
                                        ``(VII) Loans for educational
                                    purposes, loans to small businesses, and
                                    loans made through credit cards or
                                    credit card accounts.''; and
                        (B) in clause (iii), by striking subclause (VI) and
                    inserting the following:
                                        ``(VI) Loans for personal, family,
                                    or household purposes (other than loans
                                    for personal, family, or household
                                    purposes described in clause
                                    (ii)(VII)).''; and
                (3) by adding at the end the following new subparagraphs:
                        ``(D) Credit card.--The Director shall issue such
                    regulations as may be necessary to define the term
                    `credit card'.
                        ``(E) Small business.--The Director shall issue such
                    regulations as may be necessary to define the term
                    `small business'.''.

    SEC. 2304. LIMITED PURPOSE BANKS.

        (a) Growth Cap Relief.--Section 4(f)(3)(B) of the Bank Holding
    Company Act of 1956 (12 U.S.C. 1843(f)(3)(B)) is amended--
                (1) in clause (ii), by adding ``or'' at the end;
                (2) in clause (iii), by striking ``; or'' at the end and
            inserting a period; and
                (3) by striking clause (iv).

        (b) Limited Purpose Bank Exception.--Section 2(c)(2)(F) of the Bank
    Holding Company Act of 1956 (12 U.S.C. 1841(c)(2)(F)) is amended by
    inserting ``, including an institution that accepts collateral for
    extensions of credit by holding deposits under $100,000, and by other
    means'' after ``An institution''.

    SEC. 2305. AMENDMENT TO FAIR DEBT COLLECTION PRACTICES ACT.

        (a) In General.--Section 807(11) of the Fair Debt Collection
    Practices Act (15 U.S.C. 1692e(11)) is amended to read as follows:
                ``(11) The failure to disclose in the initial written
            communication with the consumer and, in addition, if the initial
            communication with the consumer is oral, in that initial oral
            communication, that the debt collector is attempting to collect
            a debt and that any information obtained will be used for that
            purpose, and the failure to disclose in subsequent
            communications that the communication is from a debt collector,
            except that this paragraph shall not apply to a formal pleading
            made in connection with a legal action.''.

        (b) Effective <<NOTE: 15 USC 1692e note.>> Date.--The amendment made
    by subsection (a) shall take effect 90 days after the date of enactment
    of this Act and shall apply to all communications made after that date
    of enactment.

    [[Page 110 STAT. 3009-426]]

    SEC. 2306. INCREASE IN CERTAIN CREDIT UNION LOAN CEILINGS.

        Section 107(5)(A) of the Federal Credit Union Act (12 U.S.C.
    1757(5)(A)) is amended--
                (1) in clause (iv), by striking ``$10,000'' and inserting
            ``$20,000''; and
                (2) in clause (v), by striking ``$10,000'' and inserting
            ``$20,000''.

    SEC. 2307. BANK INVESTMENTS IN EDGE ACT AND AGREEMENT CORPORATIONS.

        The 10th undesignated paragraph of section 25A of the Federal
    Reserve Act (12 U.S.C. 618) is amended by striking the last sentence and
    inserting the following: ``Any national bank may invest in the stock of
    any corporation organized under this section. The aggregate amount of
    stock held by any national bank in all corporations engaged in business
    of the kind described in this section or section 25 shall not exceed an
    amount equal to 10 percent of the capital and surplus of such bank
    unless the Board determines that the investment of an additional amount
    by the bank would not be unsafe or unsound and, in any case, shall not
    exceed an amount equal to 20 percent of the capital and surplus of such
    bank.''.

                           Subtitle D--Consumer Credit

      CHAPTER <<NOTE: Consumer Credit Reporting Reform Act of 1996. 15 USC
    1601 note.>> 1--CREDIT REPORTING REFORM

    SEC. 2401. SHORT TITLE.

        This chapter may be cited as the ``Consumer Credit Reporting Reform
    Act of 1996''.

    SEC. 2402. DEFINITIONS.

        (a) Adverse Action.--Section 603 of the Fair Credit Reporting Act
    (15 U.S.C. 1681a) is amended by adding at the end the following new
    subsection:
        ``(k) Adverse Action.--
                ``(1) Actions included.--The term `adverse action'--
                        ``(A) has the same meaning as in section 701(d)(6)
                    of the Equal Credit Opportunity Act; and
                        ``(B) means--
                              ``(i) a denial or cancellation of, an increase
                          in any charge for, or a reduction or other adverse
                          or unfavorable change in the terms of coverage or
                          amount of, any insurance, existing or applied for,
                          in connection with the underwriting of insurance;
                              ``(ii) a denial of employment or any other
                          decision for employment purposes that adversely
                          affects any current or prospective employee;
                              ``(iii) a denial or cancellation of, an
                          increase in any charge for, or any other adverse
                          or unfavorable change in the terms of, any license
                          or benefit described in section 604(a)(3)(D); and
                              ``(iv) an action taken or determination that
                          is--
                                        ``(I) made in connection with an
                                    application that was made by, or a
                                    transaction that was initiated by, any
                                    consumer, or in connection with a

    [[Page 110 STAT. 3009-427]]

                                    review of an account under section
                                    604(a)(3)(F)(ii); and
                                        ``(II) adverse to the interests of
                                    the consumer.
                ``(2) Applicable findings, decisions, commentary, and
            orders.--For purposes of any determination of whether an action
            is an adverse action under paragraph (1)(A), all appropriate
            final findings, decisions, commentary, and orders issued under
            section 701(d)(6) of the Equal Credit Opportunity Act by the
            Board of Governors of the Federal Reserve System or any court
            shall apply.''.

        (b) Firm Offer of Credit or Insurance.--Section 603 of the Fair
    Credit Reporting Act (15 U.S.C. 1681a) (as amended by subsection (a) of
    this section) is amended by adding at the end the following new
    subsection:
        ``(l) Firm Offer of Credit or Insurance.--The term `firm offer of
    credit or insurance' means any offer of credit or insurance to a
    consumer that will be honored if the consumer is determined, based on
    information in a consumer report on the consumer, to meet the specific
    criteria used to select the consumer for the offer, except that the
    offer may be further conditioned on one or more of the following:
                ``(1) The consumer being determined, based on information in
            the consumer's application for the credit or insurance, to meet
            specific criteria bearing on credit worthiness or insurability,
            as applicable, that are established--
                        ``(A) before selection of the consumer for the
                    offer; and
                        ``(B) for the purpose of determining whether to
                    extend credit or insurance pursuant to the offer.
                ``(2) Verification--
                        ``(A) that the consumer continues to meet the
                    specific criteria used to select the consumer for the
                    offer, by using information in a consumer report on the
                    consumer, information in the consumer's application for
                    the credit or insurance, or other information bearing on
                    the credit worthiness or insurability of the consumer;
                    or
                        ``(B) of the information in the consumer's
                    application for the credit or insurance, to determine
                    that the consumer meets the specific criteria bearing on
                    credit worthiness or insurability.
                ``(3) The consumer furnishing any collateral that is a
            requirement for the extension of the credit or insurance that
            was--
                        ``(A) established before selection of the consumer
                    for the offer of credit or insurance; and
                        ``(B) disclosed to the consumer in the offer of
                    credit or insurance.''.

        (c) Credit or Insurance Transaction That Is Not Initiated by the
    Consumer.--Section 603 of the Fair Credit Reporting Act (15 U.S.C.
    1681a) (as amended by subsection (b) of this section) is amended by
    adding at the end the following new subsection:
        ``(m) Credit or Insurance Transaction That Is Not Initiated by the
    Consumer.--The term `credit or insurance transaction that is not
    initiated by the consumer' does not include the use of a consumer report
    by a person with which the consumer has an account or insurance policy,
    for purposes of--
                ``(1) reviewing the account or insurance policy; or

    [[Page 110 STAT. 3009-428]]

                ``(2) collecting the account.''.

        (d) State.--Section 603 of the Fair Credit Reporting Act (15 U.S.C.
    1681a) (as amended by subsection (c) of this section) is amended by
    adding at the end the following new subsection:
        ``(n) State.--The term `State' means any State, the Commonwealth of
    Puerto Rico, the District of Columbia, and any territory or possession
    of the United States.''.
        (e) Definition of Consumer Report.--Section 603(d) of the Fair
    Credit Reporting Act (15 U.S.C. 1681a(d)) is amended--
                (1) by striking ``(d) The term'' and inserting the
            following:

        ``(d) Consumer Report.--
                ``(1) In general.--The term'';
                (2) by striking ``for (1) credit'' and inserting the
            following: ``for--
                        ``(A) credit'';
                (3) by striking ``purposes, or (2)'' and all that follows
            through ``section 604.'' and inserting the following:
            ``purposes;
                        ``(B) employment purposes; or
                        ``(C) any other purpose authorized under section
                    604.''; and
                (4) by striking the second sentence and inserting the
            following:
                ``(2) Exclusions.--The term `consumer report' does not
            include--
                        ``(A) any--
                              ``(i) report containing information solely as
                          to transactions or experiences between the
                          consumer and the person making the report;
                              ``(ii) communication of that information among
                          persons related by common ownership or affiliated
                          by corporate control; or
                              ``(iii) any communication of other information
                          among persons related by common ownership or
                          affiliated by corporate control, if it is clearly
                          and conspicuously disclosed to the consumer that
                          the information may be communicated among such
                          persons and the consumer is given the opportunity,
                          before the time that the information is initially
                          communicated, to direct that such information not
                          be communicated among such persons;
                        ``(B) any authorization or approval of a specific
                    extension of credit directly or indirectly by the issuer
                    of a credit card or similar device;
                        ``(C) any report in which a person who has been
                    requested by a third party to make a specific extension
                    of credit directly or indirectly to a consumer conveys
                    his or her decision with respect to such request, if the
                    third party advises the consumer of the name and address
                    of the person to whom the request was made, and such
                    person makes the disclosures to the consumer required
                    under section 615; or
                        ``(D) a communication described in subsection
                    (o).''.

        (f) Exclusion of Certain Communications by Employment Agencies From
    Definition of Consumer Report.--Section 603 of the Fair Credit Reporting
    Act (15 U.S.C. 1681a) is amended by adding at the end the following new
    subsection:

    [[Page 110 STAT. 3009-429]]

        ``(o) Excluded Communications.--A communication is described in this
    subsection if it is a communication--
                ``(1) that, but for subsection (d)(2)(E), would be an
            investigative consumer report;
                ``(2) that is made to a prospective employer for the purpose
            of--
                        ``(A) procuring an employee for the employer; or
                        ``(B) procuring an opportunity for a natural person
                    to work for the employer;
                ``(3) that is made by a person who regularly performs such
            procurement;
                ``(4) that is not used by any person for any purpose other
            than a purpose described in subparagraph (A) or (B) of paragraph
            (2); or
                ``(5) with respect to which--
                        ``(A) the consumer who is the subject of the
                    communication--
                              ``(i) consents orally or in writing to the
                          nature and scope of the communication, before the
                          collection of any information for the purpose of
                          making the communication;
                              ``(ii) consents orally or in writing to the
                          making of the communication to a prospective
                          employer, before the making of the communication;
                          and
                              ``(iii) in the case of consent under clause
                          (i) or (ii) given orally, is provided written
                          confirmation of that consent by the person making
                          the communication, not later than 3 business days
                          after the receipt of the consent by that person;
                        ``(B) the person who makes the communication does
                    not, for the purpose of making the communication, make
                    any inquiry that if made by a prospective employer of
                    the consumer who is the subject of the communication
                    would violate any applicable Federal or State equal
                    employment opportunity law or regulation; and
                        ``(C) the person who makes the communication--
                              ``(i) discloses in writing to the consumer who
                          is the subject of the communication, not later
                          than 5 business days after receiving any request
                          from the consumer for such disclosure, the nature
                          and substance of all information in the consumer's
                          file at the time of the request, except that the
                          sources of any information that is acquired solely
                          for use in making the communication and is
                          actually used for no other purpose, need not be
                          disclosed other than under appropriate discovery
                          procedures in any court of competent jurisdiction
                          in which an action is brought; and
                              ``(ii) notifies the consumer who is the
                          subject of the communication, in writing, of the
                          consumer's right to request the information
                          described in clause (i).''.

        (g) Consumer Reporting Agency That Compiles and Maintains Files on a
    Nationwide Basis.--Section 603 of the Fair Credit Reporting Act (15
    U.S.C. 1681a) (as amended by subsection (f) of this section) is amended
    by adding at the end the following new subsection:
        ``(p) Consumer Reporting Agency That Compiles and Maintains Files on
    Consumers on a Nationwide Basis.--The term

    [[Page 110 STAT. 3009-430]]

    `consumer reporting agency that compiles and maintains files on
    consumers on a nationwide basis' means a consumer reporting agency that
    regularly engages in the practice of assembling or evaluating, and
    maintaining, for the purpose of furnishing consumer reports to third
    parties bearing on a consumer's credit worthiness, credit standing, or
    credit capacity, each of the following regarding consumers residing
    nationwide:
                ``(1) Public record information.
                ``(2) Credit account information from persons who furnish
            that information regularly and in the ordinary course of
            business.''.

    SEC. 2403. FURNISHING CONSUMER REPORTS; USE FOR EMPLOYMENT PURPOSES.

        (a) Furnishing Consumer Reports for Business Transactions.--Section
    604 of the Fair Credit Reporting Act (15 U.S.C. 1681b) is amended--
                (1) by inserting ``(a) In General.--'' before ``A consumer
            reporting agency''; and
                (2) in subsection (a)(3) (as so designated by paragraph (1)
            of this subsection), by striking subparagraph (E) and inserting
            the following:
                        ``(E) intends to use the information, as a potential
                    investor or servicer, or current insurer, in connection
                    with a valuation of, or an assessment of the credit or
                    prepayment risks associated with, an existing credit
                    obligation; or
                        ``(F) otherwise has a legitimate business need for
                    the information--
                              ``(i) in connection with a business
                          transaction that is initiated by the consumer; or
                              ``(ii) to review an account to determine
                          whether the consumer continues to meet the terms
                          of the account.''.

        (b) Furnishing and Using Consumer Reports for Employment Purposes.--
    Section 604 of the Fair Credit Reporting Act (15 U.S.C. 1681b) is
    amended by adding at the end the following new subsection:
        ``(b) Conditions for Furnishing and Using Consumer Reports for
    Employment Purposes.--
                ``(1) Certification from user.--A consumer reporting agency
            may furnish a consumer report for employment purposes only if--
                        ``(A) the person who obtains such report from the
                    agency certifies to the agency that--
                              ``(i) the person has complied with paragraph
                          (2) with respect to the consumer report, and the
                          person will comply with paragraph (3) with respect
                          to the consumer report if paragraph (3) becomes
                          applicable; and
                              ``(ii) information from the consumer report
                          will not be used in violation of any applicable
                          Federal or State equal employment opportunity law
                          or regulation; and
                        ``(B) the consumer reporting agency provides with
                    the report a summary of the consumer's rights under this
                    title, as prescribed by the Federal Trade Commission
                    under section 609(c)(3).

    [[Page 110 STAT. 3009-431]]

                ``(2) Disclosure to consumer.--A person may not procure a
            consumer report, or cause a consumer report to be procured, for
            employment purposes with respect to any consumer, unless--
                        ``(A) a clear and conspicuous disclosure has been
                    made in writing to the consumer at any time before the
                    report is procured or caused to be procured, in a
                    document that consists solely of the disclosure, that a
                    consumer report may be obtained for employment purposes;
                    and
                        ``(B) the consumer has authorized in writing the
                    procurement of the report by that person.
                ``(3) Conditions on use for adverse actions.--In using a
            consumer report for employment purposes, before taking any
            adverse action based in whole or in part on the report, the
            person intending to take such adverse action shall provide to
            the consumer to whom the report relates--
                        ``(A) a copy of the report; and
                        ``(B) a description in writing of the rights of the
                    consumer under this title, as prescribed by the Federal
                    Trade Commission under section 609(c)(3).''.

    SEC. 2404. USE OF CONSUMER REPORTS FOR PRESCREENING; PROHIBITION ON
                UNAUTHORIZED OR UNCERTIFIED USE OF INFORMATION.

        (a) In General.--Section 604 of the Fair Credit Reporting Act (15
    U.S.C. 1681b) (as amended by section 2403 of this chapter) is amended--
                (1) in subsection (a), by striking ``A consumer reporting
            agency'' and inserting ``Subject to subsection (c), any consumer
            reporting agency''; and
                (2) by adding at the end the following new subsections:

        ``(c) Furnishing Reports in Connection With Credit or Insurance
    Transactions That Are Not Initiated by the Consumer.--
                ``(1) In general.--A consumer reporting agency may furnish a
            consumer report relating to any consumer pursuant to
            subparagraph (A) or (C) of subsection (a)(3) in connection with
            any credit or insurance transaction that is not initiated by the
            consumer only if--
                        ``(A) the consumer authorizes the agency to provide
                    such report to such person; or
                        ``(B)(i) the transaction consists of a firm offer of
                    credit or insurance;
                        ``(ii) the consumer reporting agency has complied
                    with subsection (e); and
                        ``(iii) there is not in effect an election by the
                    consumer, made in accordance with subsection (e), to
                    have the consumer's name and address excluded from lists
                    of names provided by the agency pursuant to this
                    paragraph.
                ``(2) Limits on information received under paragraph
            (1)(b).--A person may receive pursuant to paragraph (1)(B)
            only--
                        ``(A) the name and address of a consumer;
                        ``(B) an identifier that is not unique to the
                    consumer and that is used by the person solely for the
                    purpose of verifying the identity of the consumer; and

    [[Page 110 STAT. 3009-432]]

                        ``(C) other information pertaining to a consumer
                    that does not identify the relationship or experience of
                    the consumer with respect to a particular creditor or
                    other entity.
                ``(3) Information regarding inquiries.--Except as provided
            in section 609(a)(5), a consumer reporting agency shall not
            furnish to any person a record of inquiries in connection with a
            credit or insurance transaction that is not initiated by a
            consumer.

        ``(d) Reserved
        ``(e) Election of Consumer To Be Excluded From Lists.--
                ``(1) In general.--A consumer may elect to have the
            consumer's name and address excluded from any list provided by a
            consumer reporting agency under subsection (c)(1)(B) in
            connection with a credit or insurance transaction that is not
            initiated by the consumer, by notifying the agency in accordance
            with paragraph (2) that the consumer does not consent to any use
            of a consumer report relating to the consumer in connection with
            any credit or insurance transaction that is not initiated by the
            consumer.
                ``(2) Manner of notification.--A consumer shall notify a
            consumer reporting agency under paragraph (1)--
                        ``(A) through the notification system maintained by
                    the agency under paragraph (5); or
                        ``(B) by submitting to the agency a signed notice of
                    election form issued by the agency for purposes of this
                    subparagraph.
                ``(3) Response of agency after notification through
            system.--Upon receipt of notification of the election of a
            consumer under paragraph (1) through the notification system
            maintained by the agency under paragraph (5), a consumer
            reporting agency shall--
                        ``(A) inform the consumer that the election is
                    effective only for the 2-year period following the
                    election if the consumer does not submit to the agency a
                    signed notice of election form issued by the agency for
                    purposes of paragraph (2)(B); and
                        ``(B) provide to the consumer a notice of election
                    form, if requested by the consumer, not later than 5
                    business days after receipt of the notification of the
                    election through the system established under paragraph
                    (5), in the case of a request made at the time the
                    consumer provides notification through the system.
                ``(4) Effectiveness of election.--An election of a consumer
            under paragraph (1)--
                        ``(A) shall be effective with respect to a consumer
                    reporting agency beginning 5 business days after the
                    date on which the consumer notifies the agency in
                    accordance with paragraph (2);
                        ``(B) shall be effective with respect to a consumer
                    reporting agency--
                              ``(i) subject to subparagraph (C), during the
                          2-year period beginning 5 business days after the
                          date on which the consumer notifies the agency of
                          the election, in the case of an election for which
                          a consumer notifies the agency only in accordance
                          with paragraph (2)(A); or

    [[Page 110 STAT. 3009-433]]

                              ``(ii) until the consumer notifies the agency
                          under subparagraph (C), in the case of an election
                          for which a consumer notifies the agency in
                          accordance with paragraph (2)(B);
                        ``(C) shall not be effective after the date on which
                    the consumer notifies the agency, through the
                    notification system established by the agency under
                    paragraph (5), that the election is no longer effective;
                    and
                        ``(D) shall be effective with respect to each
                    affiliate of the agency.
                ``(5) Notification system.--
                        ``(A) In general.--Each consumer reporting agency
                    that, under subsection (c)(1)(B), furnishes a consumer
                    report in connection with a credit or insurance
                    transaction that is not initiated by a consumer, shall--
                              ``(i) establish and maintain a notification
                          system, including a toll-free telephone number,
                          which permits any consumer whose consumer report
                          is maintained by the agency to notify the agency,
                          with appropriate identification, of the consumer's
                          election to have the consumer's name and address
                          excluded from any such list of names and addresses
                          provided by the agency for such a transaction; and
                              ``(ii) publish by not later than 365 days
                          after the date of enactment of the Consumer Credit
                          Reporting Reform Act of 1996, and not less than
                          annually thereafter, in a publication of general
                          circulation in the area served by the agency--
                                        ``(I) a notification that
                                    information in consumer files maintained
                                    by the agency may be used in connection
                                    with such transactions; and
                                        ``(II) the address and toll-free
                                    telephone number for consumers to use to
                                    notify the agency of the consumer's
                                    election under clause (i).
                        ``(B) Establishment and maintenance as compliance.--
                    Establishment and maintenance of a notification system
                    (including a toll-free telephone number) and publication
                    by a consumer reporting agency on the agency's own
                    behalf and on behalf of any of its affiliates in
                    accordance with this paragraph is deemed to be
                    compliance with this paragraph by each of those
                    affiliates.
                ``(6) Notification system by agencies that operate
            nationwide.--Each consumer reporting agency that compiles and
            maintains files on consumers on a nationwide basis shall
            establish and maintain a notification system for purposes of
            paragraph (5) jointly with other such consumer reporting
            agencies.''.

        (b) Use of Information Obtained From Reports.--Section 604 of the
    Fair Credit Reporting Act (15 U.S.C. 1681b) (as amended by subsection
    (a) of this section) is amended by adding at the end the following new
    subsection:
        ``(f) Certain Use or Obtaining of Information Prohibited.--A person
    shall not use or obtain a consumer report for any purpose unless--
                ``(1) the consumer report is obtained for a purpose for
            which the consumer report is authorized to be furnished under
            this section; and

    [[Page 110 STAT. 3009-434]]

                ``(2) the purpose is certified in accordance with section
            607 by a prospective user of the report through a general or
            specific certification.''.

        (c) FTC <<NOTE: 15 USC 1681b note.>> Guidelines Regarding
    Prescreening for Insurance Transactions.--The Federal Trade Commission
    may issue such guidelines as it deems necessary with respect to the use
    of consumer reports in connection with insurance transactions that are
    not initiated by the consumer pursuant to section 604(c) of the Fair
    Credit Reporting Act, as added by subsection (a) of this section.

    SEC. 2405. CONSUMER CONSENT REQUIRED TO FURNISH CONSUMER REPORT
                CONTAINING MEDICAL INFORMATION.

        Section 604 of the Fair Credit Reporting Act (15 U.S.C. 1681b) is
    amended by adding at the end the following new subsection:
        ``(g) Furnishing Reports Containing Medical Information.--A consumer
    reporting agency shall not furnish for employment purposes, or in
    connection with a credit or insurance transaction or a direct marketing
    transaction, a consumer report that contains medical information about a
    consumer, unless the consumer consents to the furnishing of the
    report.''.

    SEC. 2406. OBSOLETE INFORMATION AND INFORMATION CONTAINED IN CONSUMER
                REPORTS.

        (a) Amendment to Large-Dollar Exception.--Section 605 of the Fair
    Credit Reporting Act (15 U.S.C. 1681c) is amended--
                (1) by inserting ``Information Excluded From Consumer
            Reports.--'' after ``(a)'';
                (2) in subsection (b)--
                        (A) in paragraph (1), by striking ``$50,000'' and
                    inserting ``$150,000'';
                        (B) in paragraph (2), by striking ``$50,000'' and
                    inserting ``$150,000''; and
                        (C) in paragraph (3), by striking ``$20,000'' and
                    inserting ``$75,000''.

        (b) Clarification of Reporting Period.--Section 605 of the Fair
    Credit Reporting Act (15 U.S.C. 1681c) (as amended by subsection (a) of
    this section) is amended by adding at the end the following new
    subsection:
        ``(c) Running of Reporting Period.--
                ``(1) In general.--The 7-year period referred to in
            paragraphs (4) and (6) of subsection (a) shall begin, with
            respect to any delinquent account that is placed for collection
            (internally or by referral to a third party, whichever is
            earlier), charged to profit and loss, or subjected to any
            similar action, upon the expiration of the 180-day period
            beginning on the date of the commencement of the delinquency
            which immediately preceded the collection activity, charge to
            profit and loss, or similar action.
                ``(2) Effective date.--Paragraph (1) shall apply only to
            items of information added to the file of a consumer on or after
            the date that is 455 days after the date of enactment of the
            Consumer Credit Reporting Reform Act of 1996.''.

        (c) Additional Information on Bankruptcy Filings Required.--Section
    605 of the Fair Credit Reporting Act (15 U.S.C. 1681c) is amended by
    adding at the end the following new subsection:
        ``(d) Information Required To Be Disclosed.--Any consumer reporting
    agency that furnishes a consumer report that contains

    [[Page 110 STAT. 3009-435]]

    information regarding any case involving the consumer that arises under
    title 11, United States Code, shall include in the report an
    identification of the chapter of such title 11 under which such case
    arises if provided by the source of the information. If any case arising
    or filed under title 11, United States Code, is withdrawn by the
    consumer before a final judgment, the consumer reporting agency shall
    include in the report that such case or filing was withdrawn upon
    receipt of documentation certifying such withdrawal.''.
        (d) Indication of Closure of Account; Indication of Dispute by
    Consumer.--Section 605 of the Fair Credit Reporting Act (15 U.S.C.
    1681c) is amended by adding at the end the following new subsections:
        ``(e) Indication of Closure of Account by Consumer.--If a consumer
    reporting agency is notified pursuant to section 623(a)(4) that a credit
    account of a consumer was voluntarily closed by the consumer, the agency
    shall indicate that fact in any consumer report that includes
    information related to the account.
        ``(f) Indication of Dispute by Consumer.--If a consumer reporting
    agency is notified pursuant to section 623(a)(3) that information
    regarding a consumer who was furnished to the agency is disputed by the
    consumer, the agency shall indicate that fact in each consumer report
    that includes the disputed information.''.
        (e) Conforming Amendments.--
                (1) Section 605 of the Fair Credit Reporting Act (15 U.S.C.
            1681c) is amended in the section heading, by striking ``OBSOLETE
            INFORMATION'' and inserting ``REQUIREMENTS RELATING TO
            INFORMATION CONTAINED IN CONSUMER REPORTS''.
                (2) The table of sections for the Fair Credit Reporting Act
            (15 U.S.C. 1681a et seq.) is amended by striking the item
            relating to section 605 and inserting the following:

    ``605. Requirements relating to information contained in consumer
                          reports.''.

    SEC. 2407. COMPLIANCE PROCEDURES.

        (a) Disclosure of Consumer Reports by Users.--Section 607 of the
    Fair Credit Reporting Act (15 U.S.C. 1681e) is amended by adding at the
    end the following new subsection:
        ``(c) Disclosure of Consumer Reports by Users Allowed.--A consumer
    reporting agency may not prohibit a user of a consumer report furnished
    by the agency on a consumer from disclosing the contents of the report
    to the consumer, if adverse action against the consumer has been taken
    by the user based in whole or in part on the report.''.
        (b) Notice to Users and Providers of Information To Ensure
    Compliance.--Section 607 of the Fair Credit Reporting Act (15 U.S.C.
    1681e) is amended by adding after subsection (c) (as added by subsection
    (a) of this section) the following new subsection:
        ``(d) Notice to Users and Furnishers of Information.--
                ``(1) Notice requirement.--A consumer reporting agency shall
            provide to any person--
                        ``(A) who regularly and in the ordinary course of
                    business furnishes information to the agency with
                    respect to any consumer; or

    [[Page 110 STAT. 3009-436]]

                        ``(B) to whom a consumer report is provided by the
                    agency;
            a notice of such person's responsibilities under this title.
                ``(2) Content of notice.--The Federal Trade Commission shall
            prescribe the content of notices under paragraph (1), and a
            consumer reporting agency shall be in compliance with this
            subsection if it provides a notice under paragraph (1) that is
            substantially similar to the Federal Trade Commission
            prescription under this paragraph.''.

        (c) Record of Identity of Users and Purposes Certified by Users of
    Reports.--Section 607 of the Fair Credit Reporting Act (15 U.S.C. 1681e)
    is amended by adding after subsection (d) (as added by subsection (b) of
    this section) the following new subsection:
        ``(e) Procurement of Consumer Report for Resale.--
                ``(1) Disclosure.--A person may not procure a consumer
            report for purposes of reselling the report (or any information
            in the report) unless the person discloses to the consumer
            reporting agency that originally furnishes the report--
                        ``(A) the identity of the end-user of the report (or
                    information); and
                        ``(B) each permissible purpose under section 604 for
                    which the report is furnished to the end-user of the
                    report (or information).
                ``(2) Responsibilities of procurers for resale.--A person
            who procures a consumer report for purposes of reselling the
            report (or any information in the report) shall--
                        ``(A) establish and comply with reasonable
                    procedures designed to ensure that the report (or
                    information) is resold by the person only for a purpose
                    for which the report may be furnished under section 604,
                    including by requiring that each person to which the
                    report (or information) is resold and that resells or
                    provides the report (or information) to any other
                    person--
                              ``(i) identifies each end user of the resold
                          report (or information);
                              ``(ii) certifies each purpose for which the
                          report (or information) will be used; and
                              ``(iii) certifies that the report (or
                          information) will be used for no other purpose;
                          and
                        ``(B) before reselling the report, make reasonable
                    efforts to verify the identifications and certifications
                    made under subparagraph (A).''.

    SEC. 2408. CONSUMER DISCLOSURES.

        (a) All Information in Consumer's File Required To Be Disclosed.--
    Section 609(a)(1) of the Fair Credit Reporting Act (15 U.S.C.
    1681g(a)(1)) is amended to read as follows:
                ``(1) All information in the consumer's file at the time of
            the request, except that nothing in this paragraph shall be
            construed to require a consumer reporting agency to disclose to
            a consumer any information concerning credit scores or any other
            risk scores or predictors relating to the consumer.''.

        (b) More Information Concerning Recipients of Reports Required.--
    Section 609(a)(3) of the Fair Credit Reporting Act (15 U.S.C. 1681g(a))
    is amended to read as follows:

    [[Page 110 STAT. 3009-437]]

                ``(3)(A) Identification of each person (including each end-
            user identified under section 607(e)(1)) that procured a
            consumer report--
                        ``(i) for employment purposes, during the 2-year
                    period preceding the date on which the request is made;
                    or
                        ``(ii) for any other purpose, during the 1-year
                    period preceding the date on which the request is made.
                ``(B) An identification of a person under subparagraph (A)
            shall include--
                        ``(i) the name of the person or, if applicable, the
                    trade name (written in full) under which such person
                    conducts business; and
                        ``(ii) upon request of the consumer, the address and
                    telephone number of the person.''.

        (c) Information Regarding Inquiries.--Section 609(a) of the Fair
    Credit Reporting Act (15 U.S.C. 1681g(a)) is amended by adding at the
    end the following new paragraph:
                ``(5) A record of all inquiries received by the agency
            during the 1-year period preceding the request that identified
            the consumer in connection with a credit or insurance
            transaction that was not initiated by the consumer.''.

        (d) Summary of Rights Required To Be Included With Disclosure.--
                (1) In general.--Section 609 of the Fair Credit Reporting
            Act (15 U.S.C. 1681g) is amended by adding at the end the
            following new subsection:

        ``(c) Summary of Rights Required To Be Included With Disclosure.--
                ``(1) Summary of rights.--A consumer reporting agency shall
            provide to a consumer, with each written disclosure by the
            agency to the consumer under this section--
                        ``(A) a written summary of all of the rights that
                    the consumer has under this title; and
                        ``(B) in the case of a consumer reporting agency
                    that compiles and maintains files on consumers on a
                    nationwide basis, a toll-free telephone number
                    established by the agency, at which personnel are
                    accessible to consumers during normal business hours.
                ``(2) Specific items required to be included.--The summary
            of rights required under paragraph (1) shall include--
                        ``(A) a brief description of this title and all
                    rights of consumers under this title;
                        ``(B) an explanation of how the consumer may
                    exercise the rights of the consumer under this title;
                        ``(C) a list of all Federal agencies responsible for
                    enforcing any provision of this title and the address
                    and any appropriate phone number of each such agency, in
                    a form that will assist the consumer in selecting the
                    appropriate agency;
                        ``(D) a statement that the consumer may have
                    additional rights under State law and that the consumer
                    may wish to contact a State or local consumer protection
                    agency or a State attorney general to learn of those
                    rights; and
                        ``(E) a statement that a consumer reporting agency
                    is not required to remove accurate derogatory
                    information from a consumer's file, unless the
                    information is outdated under section 605 or cannot be
                    verified.

    [[Page 110 STAT. 3009-438]]

                ``(3) Form of summary of rights.--For purposes of this
            subsection and any disclosure by a consumer reporting agency
            required under this title with respect to consumers' rights, the
            Federal Trade Commission (after consultation with each Federal
            agency referred to in section 621(b)) shall prescribe the form
            and content of any such disclosure of the rights of consumers
            required under this title. A consumer reporting agency shall be
            in compliance with this subsection if it provides disclosures
            under paragraph (1) that are substantially similar to the
            Federal Trade Commission prescription under this paragraph.
                ``(4) Effectiveness.--No disclosures shall be required under
            this subsection until the date on which the Federal Trade
            Commission prescribes the form and content of such disclosures
            under paragraph (3).''.
                (2) Technical amendment.--Section 606(a)(1)(B) of the Fair
            Credit Reporting Act (15 U.S.C. 1681d(a)(1)(B)) is amended by
            inserting ``and the written summary of the rights of the
            consumer prepared pursuant to section 609(c)'' before the
            semicolon.

        (e) Form of Disclosures.--
                (1) In general.--Subsections (a) and (b) of section 610 of
            the Fair Credit Reporting Act (15 U.S.C. 1681h) are amended to
            read as follows:

        ``(a) In General.--
                ``(1) Proper identification.--A consumer reporting agency
            shall require, as a condition of making the disclosures required
            under section 609, that the consumer furnish proper
            identification.
                ``(2) Disclosure in writing.--Except as provided in
            subsection (b), the disclosures required to be made under
            section 609 shall be provided under that section in writing.

        ``(b) Other Forms of Disclosure.--
                ``(1) In general.--If authorized by a consumer, a consumer
            reporting agency may make the disclosures required under 609--
                        ``(A) other than in writing; and
                        ``(B) in such form as may be--
                              ``(i) specified by the consumer in accordance
                          with paragraph (2); and
                              ``(ii) available from the agency.
                ``(2) Form.--A consumer may specify pursuant to paragraph
            (1) that disclosures under section 609 shall be made--
                        ``(A) in person, upon the appearance of the consumer
                    at the place of business of the consumer reporting
                    agency where disclosures are regularly provided, during
                    normal business hours, and on reasonable notice;
                        ``(B) by telephone, if the consumer has made a
                    written request for disclosure by telephone;
                        ``(C) by electronic means, if available from the
                    agency; or
                        ``(D) by any other reasonable means that is
                    available from the agency.''.
                (2) Simplified <<NOTE: 15 USC 1681g note.>> disclosure.--Not
            later than 90 days after the date of enactment of this Act, each
            consumer reporting agency shall develop a form on which such
            consumer reporting agency shall make the disclosures required
            under section 609(a)

    [[Page 110 STAT. 3009-439]]

            of the Fair Credit Reporting Act, for the purpose of maximizing
            the comprehensibility and standardization of such disclosures.
                (3) Goals.--The <<NOTE: 15 USC 1681g note.>> Federal Trade
            Commission shall take appropriate action to assure that the
            goals of comprehensibility and standardization are achieved in
            accordance with paragraph (2).
                (4) Defamation.--Section 610(e) of the Fair Credit Reporting
            Act (15 U.S.C. 1681h(e)) is amended by inserting ``or based on
            information disclosed by a user of a consumer report to or for a
            consumer against whom the user has taken adverse action, based
            in whole or in part on the report'' before ``except''.
                (5) Conforming amendments.--The Fair Credit Reporting Act
            (15 U.S.C. 1681 et seq.) is amended--
                        (A) <<NOTE: 15 USC 1681g.>> in section 609(a), in
                    the matter preceding paragraph (1), by striking ``and
                    proper identification of any consumer'' and inserting
                    ``, and subject to section 610(a)(1)'';
                        (B) <<NOTE: 15 USC 1681h.>> in section 610, in the
                    section heading, by inserting ``AND FORM'' after
                    ``CONDITIONS''; and
                        (C) in the table of sections at the beginning of
                    that Act, in the item relating to section 610, by
                    inserting ``and form'' after ``conditions''.

    SEC. 2409. PROCEDURES IN CASE OF THE DISPUTED ACCURACY OF ANY
                INFORMATION IN A CONSUMER'S FILE.

        (a) In General.--Section 611(a) of the Fair Credit Reporting Act (15
    U.S.C. 1681i(a)) is amended to read as follows:
        ``(a) Reinvestigations of Disputed Information.--
                ``(1) Reinvestigation required.--
                        ``(A) In general.--If the completeness or accuracy
                    of any item of information contained in a consumer's
                    file at a consumer reporting agency is disputed by the
                    consumer and the consumer notifies the agency directly
                    of such dispute, the agency shall reinvestigate free of
                    charge and record the current status of the disputed
                    information, or delete the item from the file in
                    accordance with paragraph (5), before the end of the 30-
                    day period beginning on the date on which the agency
                    receives the notice of the dispute from the consumer.
                        ``(B) Extension of period to reinvestigate.--Except
                    as provided in subparagraph (C), the 30-day period
                    described in subparagraph (A) may be extended for not
                    more than 15 additional days if the consumer reporting
                    agency receives information from the consumer during
                    that 30-day period that is relevant to the
                    reinvestigation.
                        ``(C) Limitations on extension of period to
                    reinvestigate.--Subparagraph (B) shall not apply to any
                    reinvestigation in which, during the 30-day period
                    described in subparagraph (A), the information that is
                    the subject of the reinvestigation is found to be
                    inaccurate or incomplete or the consumer reporting
                    agency determines that the information cannot be
                    verified.
                ``(2) Prompt notice of dispute to furnisher of
            information.--
                        ``(A) In general.--Before the expiration of the 5-
                    business-day period beginning on the date on which a
                    consumer reporting agency receives notice of a dispute
                    from any consumer in accordance with paragraph (1), the
                    agency

    [[Page 110 STAT. 3009-440]]

                    shall provide notification of the dispute to any person
                    who provided any item of information in dispute, at the
                    address and in the manner established with the person.
                    The notice shall include all relevant information
                    regarding the dispute that the agency has received from
                    the consumer.
                        ``(B) Provision of other information from
                    consumer.--The consumer reporting agency shall promptly
                    provide to the person who provided the information in
                    dispute all relevant information regarding the dispute
                    that is received by the agency from the consumer after
                    the period referred to in subparagraph (A) and before
                    the end of the period referred to in paragraph (1)(A).
                ``(3) Determination that dispute is frivolous or
            irrelevant.--
                        ``(A) In general.--Notwithstanding paragraph (1), a
                    consumer reporting agency may terminate a
                    reinvestigation of information disputed by a consumer
                    under that paragraph if the agency reasonably determines
                    that the dispute by the consumer is frivolous or
                    irrelevant, including by reason of a failure by a
                    consumer to provide sufficient information to
                    investigate the disputed information.
                        ``(B) Notice of determination.--Upon making any
                    determination in accordance with subparagraph (A) that a
                    dispute is frivolous or irrelevant, a consumer reporting
                    agency shall notify the consumer of such determination
                    not later than 5 business days after making such
                    determination, by mail or, if authorized by the consumer
                    for that purpose, by any other means available to the
                    agency.
                        ``(C) Contents of notice.--A notice under
                    subparagraph (B) shall include--
                              ``(i) the reasons for the determination under
                          subparagraph (A); and
                              ``(ii) identification of any information
                          required to investigate the disputed information,
                          which may consist of a standardized form
                          describing the general nature of such information.
                ``(4) Consideration of consumer information.--In conducting
            any reinvestigation under paragraph (1) with respect to disputed
            information in the file of any consumer, the consumer reporting
            agency shall review and consider all relevant information
            submitted by the consumer in the period described in paragraph
            (1)(A) with respect to such disputed information.
                ``(5) Treatment of inaccurate or unverifiable information.--
                        ``(A) In general.--If, after any reinvestigation
                    under paragraph (1) of any information disputed by a
                    consumer, an item of the information is found to be
                    inaccurate or incomplete or cannot be verified, the
                    consumer reporting agency shall promptly delete that
                    item of information from the consumer's file or modify
                    that item of information, as appropriate, based on the
                    results of the reinvestigation.
                        ``(B) Requirements relating to reinsertion of
                    previously deleted material.--
                              ``(i) Certification of accuracy of
                          information.--If any information is deleted from a
                          consumer's file pursuant to subparagraph (A), the
                          information may

    [[Page 110 STAT. 3009-441]]

                          not be reinserted in the file by the consumer
                          reporting agency unless the person who furnishes
                          the information certifies that the information is
                          complete and accurate.
                              ``(ii) Notice to consumer.--If any information
                          that has been deleted from a consumer's file
                          pursuant to subparagraph (A) is reinserted in the
                          file, the consumer reporting agency shall notify
                          the consumer of the reinsertion in writing not
                          later than 5 business days after the reinsertion
                          or, if authorized by the consumer for that
                          purpose, by any other means available to the
                          agency.
                              ``(iii) Additional information.--As part of,
                          or in addition to, the notice under clause (ii), a
                          consumer reporting agency shall provide to a
                          consumer in writing not later than 5 business days
                          after the date of the reinsertion--
                                        ``(I) a statement that the disputed
                                    information has been reinserted;
                                        ``(II) the business name and address
                                    of any furnisher of information
                                    contacted and the telephone number of
                                    such furnisher, if reasonably available,
                                    or of any furnisher of information that
                                    contacted the consumer reporting agency,
                                    in connection with the reinsertion of
                                    such information; and
                                        ``(III) a notice that the consumer
                                    has the right to add a statement to the
                                    consumer's file disputing the accuracy
                                    or completeness of the disputed
                                    information.
                        ``(C) Procedures to prevent reappearance.--A
                    consumer reporting agency shall maintain reasonable
                    procedures designed to prevent the reappearance in a
                    consumer's file, and in consumer reports on the
                    consumer, of information that is deleted pursuant to
                    this paragraph (other than information that is
                    reinserted in accordance with subparagraph (B)(i)).
                        ``(D) Automated reinvestigation system.--Any
                    consumer reporting agency that compiles and maintains
                    files on consumers on a nationwide basis shall implement
                    an automated system through which furnishers of
                    information to that consumer reporting agency may report
                    the results of a reinvestigation that finds incomplete
                    or inaccurate information in a consumer's file to other
                    such consumer reporting agencies.
                ``(6) Notice of results of reinvestigation.--
                        ``(A) In general.--A consumer reporting agency shall
                    provide written notice to a consumer of the results of a
                    reinvestigation under this subsection not later than 5
                    business days after the completion of the
                    reinvestigation, by mail or, if authorized by the
                    consumer for that purpose, by other means available to
                    the agency.
                        ``(B) Contents.--As part of, or in addition to, the
                    notice under subparagraph (A), a consumer reporting
                    agency shall provide to a consumer in writing before the
                    expiration of the 5-day period referred to in
                    subparagraph (A)--

    [[Page 110 STAT. 3009-442]]

                              ``(i) a statement that the reinvestigation is
                          completed;
                              ``(ii) a consumer report that is based upon
                          the consumer's file as that file is revised as a
                          result of the reinvestigation;
                              ``(iii) a notice that, if requested by the
                          consumer, a description of the procedure used to
                          determine the accuracy and completeness of the
                          information shall be provided to the consumer by
                          the agency, including the business name and
                          address of any furnisher of information contacted
                          in connection with such information and the
                          telephone number of such furnisher, if reasonably
                          available;
                              ``(iv) a notice that the consumer has the
                          right to add a statement to the consumer's file
                          disputing the accuracy or completeness of the
                          information; and
                              ``(v) a notice that the consumer has the right
                          to request under subsection (d) that the consumer
                          reporting agency furnish notifications under that
                          subsection.
                ``(7) Description of reinvestigation procedure.--A consumer
            reporting agency shall provide to a consumer a description
            referred to in paragraph (6)(B)(iv) by not later than 15 days
            after receiving a request from the consumer for that
            description.
                ``(8) Expedited dispute resolution.--If a dispute regarding
            an item of information in a consumer's file at a consumer
            reporting agency is resolved in accordance with paragraph (5)(A)
            by the deletion of the disputed information by not later than 3
            business days after the date on which the agency receives notice
            of the dispute from the consumer in accordance with paragraph
            (1)(A), then the agency shall not be required to comply with
            paragraphs (2), (6), and (7) with respect to that dispute if the
            agency--
                        ``(A) provides prompt notice of the deletion to the
                    consumer by telephone;
                        ``(B) includes in that notice, or in a written
                    notice that accompanies a confirmation and consumer
                    report provided in accordance with subparagraph (C), a
                    statement of the consumer's right to request under
                    subsection (d) that the agency furnish notifications
                    under that subsection; and
                        ``(C) provides written confirmation of the deletion
                    and a copy of a consumer report on the consumer that is
                    based on the consumer's file after the deletion, not
                    later than 5 business days after making the deletion.''.

        (b) Conforming Amendment.--Section 611(d) of the Fair Credit
    Reporting Act (15 U.S.C. 1681i(d)) is amended by striking ``The consumer
    reporting agency shall clearly'' and all that follows through the end of
    the subsection.

    SEC. 2410. CHARGES FOR CERTAIN DISCLOSURES.

        Section 612 of the Fair Credit Reporting Act (15 U.S.C. 1681j) is
    amended to read as follows:

    ``SEC. 612. CHARGES FOR CERTAIN DISCLOSURES.

        ``(a) Reasonable Charges Allowed for Certain Disclosures.--

    [[Page 110 STAT. 3009-443]]

                ``(1) In general.--Except as provided in subsections (b),
            (c), and (d), a consumer reporting agency may impose a
            reasonable charge on a consumer--
                        ``(A) for making a disclosure to the consumer
                    pursuant to section 609, which charge--
                              ``(i) shall not exceed $8; and
                              ``(ii) shall be indicated to the consumer
                          before making the disclosure; and
                        ``(B) for furnishing, pursuant to section 611(d),
                    following a reinvestigation under section 611(a), a
                    statement, codification, or summary to a person
                    designated by the consumer under that section after the
                    30-day period beginning on the date of notification of
                    the consumer under paragraph (6) or (8) of section
                    611(a) with respect to the reinvestigation, which
                    charge--
                              ``(i) shall not exceed the charge that the
                          agency would impose on each designated recipient
                          for a consumer report; and
                              ``(ii) shall be indicated to the consumer
                          before furnishing such information.
                ``(2) Modification of amount.--The Federal Trade Commission
            shall increase the amount referred to in paragraph (1)(A)(i) on
            January 1 of each year, based proportionally on changes in the
            Consumer Price Index, with fractional changes rounded to the
            nearest fifty cents.

        ``(b) Free Disclosure After Adverse Notice to Consumer.--Each
    consumer reporting agency that maintains a file on a consumer shall make
    all disclosures pursuant to section 609 without charge to the consumer
    if, not later than 60 days after receipt by such consumer of a
    notification pursuant to section 615, or of a notification from a debt
    collection agency affiliated with that consumer reporting agency stating
    that the consumer's credit rating may be or has been adversely affected,
    the consumer makes a request under section 609.
        ``(c) Free Disclosure Under Certain Other Circumstances.--Upon the
    request of the consumer, a consumer reporting agency shall make all
    disclosures pursuant to section 609 once during any 12-month period
    without charge to that consumer if the consumer certifies in writing
    that the consumer--
                ``(1) is unemployed and intends to apply for employment in
            the 60-day period beginning on the date on which the
            certification is made;
                ``(2) is a recipient of public welfare assistance; or
                ``(3) has reason to believe that the file on the consumer at
            the agency contains inaccurate information due to fraud.

        ``(d) Other Charges Prohibited.--A consumer reporting agency shall
    not impose any charge on a consumer for providing any notification
    required by this title or making any disclosure required by this title,
    except as authorized by subsection (a).''.

    SEC. 2411. DUTIES OF USERS OF CONSUMER REPORTS.

        (a) Duties of Users Taking Adverse Actions.--Section 615(a) of the
    Fair Credit Reporting Act (15 U.S.C. 1681m(a)) is amended to read as
    follows:
        ``(a) Duties of Users Taking Adverse Actions on the Basis of
    Information Contained in Consumer Reports.--If any person takes any
    adverse action with respect to any consumer that is

    [[Page 110 STAT. 3009-444]]

    based in whole or in part on any information contained in a consumer
    report, the person shall--
                ``(1) provide oral, written, or electronic notice of the
            adverse action to the consumer;
                ``(2) provide to the consumer orally, in writing, or
            electronically--
                        ``(A) the name, address, and telephone number of the
                    consumer reporting agency (including a toll-free
                    telephone number established by the agency if the agency
                    compiles and maintains files on consumers on a
                    nationwide basis) that furnished the report to the
                    person; and
                        ``(B) a statement that the consumer reporting agency
                    did not make the decision to take the adverse action and
                    is unable to provide the consumer the specific reasons
                    why the adverse action was taken; and
                ``(3) provide to the consumer an oral, written, or
            electronic notice of the consumer's right--
                        ``(A) to obtain, under section 612, a free copy of a
                    consumer report on the consumer from the consumer
                    reporting agency referred to in paragraph (2), which
                    notice shall include an indication of the 60-day period
                    under that section for obtaining such a copy; and
                        ``(B) to dispute, under section 611, with a consumer
                    reporting agency the accuracy or completeness of any
                    information in a consumer report furnished by the
                    agency.''.

        (b) Duties of Users Making Certain Credit Solicitations.--Section
    615 of the Fair Credit Reporting Act (15 U.S.C. 1681m) is amended by
    adding at the end the following new subsection:
        ``(d) Duties of Users Making Written Credit or Insurance
    Solicitations on the Basis of Information Contained in Consumer Files.--
                ``(1) In general.--Any person who uses a consumer report on
            any consumer in connection with any credit or insurance
            transaction that is not initiated by the consumer, that is
            provided to that person under section 604(c)(1)(B), shall
            provide with each written solicitation made to the consumer
            regarding the transaction a clear and conspicuous statement
            that--
                        ``(A) information contained in the consumer's
                    consumer report was used in connection with the
                    transaction;
                        ``(B) the consumer received the offer of credit or
                    insurance because the consumer satisfied the criteria
                    for credit worthiness or insurability under which the
                    consumer was selected for the offer;
                        ``(C) if applicable, the credit or insurance may not
                    be extended if, after the consumer responds to the
                    offer, the consumer does not meet the criteria used to
                    select the consumer for the offer or any applicable
                    criteria bearing on credit worthiness or insurability or
                    does not furnish any required collateral;
                        ``(D) the consumer has a right to prohibit
                    information contained in the consumer's file with any
                    consumer reporting agency from being used in connection
                    with any credit or insurance transaction that is not
                    initiated by the consumer; and
                        ``(E) the consumer may exercise the right referred
                    to in subparagraph (D) by notifying a notification
                    system established under section 604(e).

    [[Page 110 STAT. 3009-445]]

                ``(2) Disclosure of address and telephone number.--A
            statement under paragraph (1) shall include the address and
            toll-free telephone number of the appropriate notification
            system established under section 604(e).
                ``(3) Maintaining criteria on file.--A person who makes an
            offer of credit or insurance to a consumer under a credit or
            insurance transaction described in paragraph (1) shall maintain
            on file the criteria used to select the consumer to receive the
            offer, all criteria bearing on credit worthiness or
            insurability, as applicable, that are the basis for determining
            whether or not to extend credit or insurance pursuant to the
            offer, and any requirement for the furnishing of collateral as a
            condition of the extension of credit or insurance, until the
            expiration of the 3-year period beginning on the date on which
            the offer is made to the consumer.
                ``(4) Authority of federal agencies regarding unfair or
            deceptive acts or practices not affected.--This section is not
            intended to affect the authority of any Federal or State agency
            to enforce a prohibition against unfair or deceptive acts or
            practices, including the making of false or misleading
            statements in connection with a credit or insurance transaction
            that is not initiated by the consumer.''.

        (c) Duties of Users Making Other Solicitations.--Section 615 of the
    Fair Credit Reporting Act (15 U.S.C. 1681m) is amended by adding at the
    end the following new subsection:
    ``(e)

        (d) Conforming Amendment.--Section 615(c) of the Fair Credit
    Reporting Act (15 U.S.C. 1681m(c)) is amended by striking ``subsections
    (a) and (b)'' and inserting ``this section''.
        (e) Duties of Person Taking Certain Actions Based on Information
    Provided by Affiliate.--Section 615(b) of the Fair Credit Reporting Act
    (15 U.S.C. 1681m(b)) is amended--
                (1) by striking ``(b) Whenever credit'' and inserting the
            following:

        ``(b) Adverse Action Based on Information Obtained From Third
    Parties Other Than Consumer Reporting Agencies.--
                ``(1) In general.--Whenever credit'';
                (2) by adding at the end the following new paragraph:
                ``(2) Duties of person taking certain actions based on
            information provided by affiliate.--
                        ``(A) Duties, generally.--If a person takes an
                    action described in subparagraph (B) with respect to a
                    consumer, based in whole or in part on information
                    described in subparagraph (C), the person shall--
                              ``(i) notify the consumer of the action,
                          including a statement that the consumer may obtain
                          the information in accordance with clause (ii);
                          and
                              ``(ii) upon a written request from the
                          consumer received within 60 days after transmittal
                          of the notice required by clause (i), disclose to
                          the consumer the nature of the information upon
                          which the action is based by not later than 30
                          days after receipt of the request.
                        ``(B) Action described.--An action referred to in
                    subparagraph (A) is an adverse action described in
                    section

    [[Page 110 STAT. 3009-446]]

                    603(k)(1)(A), taken in connection with a transaction
                    initiated by the consumer, or any adverse action
                    described in clause (i) or (ii) of section 603(k)(1)(B).
                        ``(C) Information described.--Information referred
                    to in subparagraph (A)--
                              ``(i) except as provided in clause (ii), is
                          information that--
                                        ``(I) is furnished to the person
                                    taking the action by a person related by
                                    common ownership or affiliated by common
                                    corporate control to the person taking
                                    the action; and
                                        ``(II) bears on the credit
                                    worthiness, credit standing, credit
                                    capacity, character, general reputation,
                                    personal characteristics, or mode of
                                    living of the consumer; and
                              ``(ii) does not include--
                                        ``(I) information solely as to
                                    transactions or experiences between the
                                    consumer and the person furnishing the
                                    information; or
                                        ``(II) information in a consumer
                                    report.''.

    SEC. 2412. CIVIL LIABILITY.

        (a) Civil Liability for Willful Noncompliance.--Section 616 of the
    Fair Credit Reporting Act (15 U.S.C. 1681n) is amended by striking ``Any
    consumer reporting agency or user of information which'' and inserting
    ``(a) In General.--Any person who''.
        (b) Minimum Civil Liability for Willful Noncompliance.--Section
    616(a)(1) of the Fair Credit Reporting Act (15 U.S.C. 1681n(1)), as so
    designated by subsection (a) of this section, is amended to read as
    follows:
                ``(1)(A) any actual damages sustained by the consumer as a
            result of the failure or damages of not less than $100 and not
            more than $1,000; or
                ``(B) in the case of liability of a natural person for
            obtaining a consumer report under false pretenses or knowingly
            without a permissible purpose, actual damages sustained by the
            consumer as a result of the failure or $1,000, whichever is
            greater;''.

        (c) Civil Liability for Knowing Noncompliance.--Section 616 of the
    Fair Credit Reporting Act (15 U.S.C. 1681n) is amended by adding at the
    end the following new subsection:
        ``(b) Civil Liability for Knowing Noncompliance.--Any person who
    obtains a consumer report from a consumer reporting agency under false
    pretenses or knowingly without a permissible purpose shall be liable to
    the consumer reporting agency for actual damages sustained by the
    consumer reporting agency or $1,000, whichever is greater.''.
        (d) Civil Liability for Negligent Noncompliance.--Section 617 of the
    Fair Credit Reporting Act (15 U.S.C. 1681o) is amended by striking ``Any
    consumer reporting agency or user of information which'' and inserting
    ``(a) In General.--Any person who''.
        (e) Attorney's Fees.--
                (1) Willful noncompliance.--Section 616 of the Fair Credit
            Reporting Act (15 U.S.C. 1681n) is amended by adding at the end
            the following new subsection:

        ``(c) Attorney's Fees.--Upon a finding by the court that an
    unsuccessful pleading, motion, or other paper filed in connection

    [[Page 110 STAT. 3009-447]]

    with an action under this section was filed in bad faith or for purposes
    of harassment, the court shall award to the prevailing party attorney's
    fees reasonable in relation to the work expended in responding to the
    pleading, motion, or other paper.''.
                (2) Negligent noncompliance.--Section 617 of the Fair Credit
            Reporting Act (15 U.S.C. 1681o) is amended by adding at the end
            the following new subsection:

        ``(b) Attorney's Fees.--On a finding by the court that an
    unsuccessful pleading, motion, or other paper filed in connection with
    an action under this section was filed in bad faith or for purposes of
    harassment, the court shall award to the prevailing party attorney's
    fees reasonable in relation to the work expended in responding to the
    pleading, motion, or other paper.''.

    SEC. 2413. RESPONSIBILITIES OF PERSONS WHO FURNISH INFORMATION TO
                CONSUMER REPORTING AGENCIES.

        (a) In General.--The Fair Credit Reporting Act (15 U.S.C. 1681 et
    seq.) is amended--
                (1) <<NOTE: 15 USC 1681t.>> by redesignating section 623 as
            section 624; and
                (2) by inserting after section 622 the following:

    ``SEC. <<NOTE: 15 USC 1681s-2.>> 623. RESPONSIBILITIES OF FURNISHERS OF
                INFORMATION TO CONSUMER REPORTING AGENCIES.

        ``(a) Duty of Furnishers of Information To Provide Accurate
    Information.--
                ``(1) Prohibition.--
                        ``(A) Reporting information with actual knowledge of
                    errors.--A person shall not furnish any information
                    relating to a consumer to any consumer reporting agency
                    if the person knows or consciously avoids knowing that
                    the information is inaccurate.
                        ``(B) Reporting information after notice and
                    confirmation of errors.--A person shall not furnish
                    information relating to a consumer to any consumer
                    reporting agency if--
                              ``(i) the person has been notified by the
                          consumer, at the address specified by the person
                          for such notices, that specific information is
                          inaccurate; and
                              ``(ii) the information is, in fact,
                          inaccurate.
                        ``(C) No address requirement.--A person who clearly
                    and conspicuously specifies to the consumer an address
                    for notices referred to in subparagraph (B) shall not be
                    subject to subparagraph (A); however, nothing in
                    subparagraph (B) shall require a person to specify such
                    an address.
                ``(2) Duty to correct and update information.--A person
            who--
                        ``(A) regularly and in the ordinary course of
                    business furnishes information to one or more consumer
                    reporting agencies about the person's transactions or
                    experiences with any consumer; and
                        ``(B) has furnished to a consumer reporting agency
                    information that the person determines is not complete
                    or accurate,

            shall promptly notify the consumer reporting agency of that
            determination and provide to the agency any corrections to that
            information, or any additional information, that is necessary to
            make the information provided by the person to

    [[Page 110 STAT. 3009-448]]

            the agency complete and accurate, and shall not thereafter
            furnish to the agency any of the information that remains not
            complete or accurate.
                ``(3) Duty to provide notice of dispute.--If the
            completeness or accuracy of any information furnished by any
            person to any consumer reporting agency is disputed to such
            person by a consumer, the person may not furnish the information
            to any consumer reporting agency without notice that such
            information is disputed by the consumer.
                ``(4) Duty to provide notice of closed accounts.--A person
            who regularly and in the ordinary course of business furnishes
            information to a consumer reporting agency regarding a consumer
            who has a credit account with that person shall notify the
            agency of the voluntary closure of the account by the consumer,
            in information regularly furnished for the period in which the
            account is closed.
                ``(5) Duty to provide notice of delinquency of accounts.--A
            person who furnishes information to a consumer reporting agency
            regarding a delinquent account being placed for collection,
            charged to profit or loss, or subjected to any similar action
            shall, not later than 90 days after furnishing the information,
            notify the agency of the month and year of the commencement of
            the delinquency that immediately preceded the action.

        ``(b) Duties of Furnishers of Information Upon Notice of Dispute.--
                ``(1) In general.--After receiving notice pursuant to
            section 611(a)(2) of a dispute with regard to the completeness
            or accuracy of any information provided by a person to a
            consumer reporting agency, the person shall--
                        ``(A) conduct an investigation with respect to the
                    disputed information;
                        ``(B) review all relevant information provided by
                    the consumer reporting agency pursuant to section
                    611(a)(2);
                        ``(C) report the results of the investigation to the
                    consumer reporting agency; and
                        ``(D) if the investigation finds that the
                    information is incomplete or inaccurate, report those
                    results to all other consumer reporting agencies to
                    which the person furnished the information and that
                    compile and maintain files on consumers on a nationwide
                    basis.
                ``(2) Deadline.--A person shall complete all investigations,
            reviews, and reports required under paragraph (1) regarding
            information provided by the person to a consumer reporting
            agency, before the expiration of the period under section
            611(a)(1) within which the consumer reporting agency is required
            to complete actions required by that section regarding that
            information.

        ``(c) Limitation on Liability.--Sections 616 and 617 do not apply to
    any failure to comply with subsection (a), except as provided in section
    621(c)(1)(B).
        ``(d) Limitation on Enforcement.--Subsection (a) shall be enforced
    exclusively under section 621 by the Federal agencies and officials and
    the State officials identified in that section.''.
        (b) Conforming Amendment.--The table of sections at the beginning of
    the Fair Credit Reporting Act (15 U.S.C. 1681a et

    [[Page 110 STAT. 3009-449]]

    seq.) is amended by striking the item relating to section 623 and
    inserting the following:

    ``623. Responsibilities of furnishers of information to consumer
                          reporting agencies.
    ``624. Relation to State laws.''.

    SEC. 2414. INVESTIGATIVE CONSUMER REPORTS.

        Section 606 of the Fair Credit Reporting Act (15 U.S.C. 1681d) is
    amended--
                (1) in subsection (a)(1), by striking ``or'' at the end and
            inserting ``and'';
                (2) by striking subsection (a)(2) and inserting the
            following:
                ``(2) the person certifies or has certified to the consumer
            reporting agency that--
                        ``(A) the person has made the disclosures to the
                    consumer required by paragraph (1); and
                        ``(B) the person will comply with subsection (b).'';
                (3) in subsection (b), by striking ``shall'' the second
            place such term appears; and
                (4) by adding at the end the following new subsection:

        ``(d) Prohibitions.--
                ``(1) Certification.--A consumer reporting agency shall not
            prepare or furnish an investigative consumer report unless the
            agency has received a certification under subsection (a)(2) from
            the person who requested the report.
                ``(2) Inquiries.--A consumer reporting agency shall not make
            an inquiry for the purpose of preparing an investigative
            consumer report on a consumer for employment purposes if the
            making of the inquiry by an employer or prospective employer of
            the consumer would violate any applicable Federal or State equal
            employment opportunity law or regulation.
                ``(3) Certain public record information.--Except as
            otherwise provided in section 613, a consumer reporting agency
            shall not furnish an investigative consumer report that includes
            information that is a matter of public record and that relates
            to an arrest, indictment, conviction, civil judicial action, tax
            lien, or outstanding judgment, unless the agency has verified
            the accuracy of the information during the 30-day period ending
            on the date on which the report is furnished.
                ``(4) Certain adverse information.--A consumer reporting
            agency shall not prepare or furnish an investigative consumer
            report on a consumer that contains information that is adverse
            to the interest of the consumer and that is obtained through a
            personal interview with a neighbor, friend, or associate of the
            consumer or with another person with whom the consumer is
            acquainted or who has knowledge of such item of information,
            unless--
                        ``(A) the agency has followed reasonable procedures
                    to obtain confirmation of the information, from an
                    additional source that has independent and direct
                    knowledge of the information; or
                        ``(B) the person interviewed is the best possible
                    source of the information.''.

    [[Page 110 STAT. 3009-450]]

    SEC. 2415. INCREASED CRIMINAL PENALTIES FOR OBTAINING INFORMATION UNDER
                FALSE PRETENSES.

        (a) Obtaining Information Under False Pretenses.--Section 619 of the
    Fair Credit Reporting Act (15 U.S.C. 1681q) is amended by striking
    ``fined not more than $5,000 or imprisoned not more than one year, or
    both'' and inserting ``fined under title 18, United States Code,
    imprisoned for not more than 2 years, or both''.
        (b) Unauthorized Disclosures by Officers or Employees.--Section 620
    of the Fair Credit Reporting Act (15 U.S.C. 1681r) is amended by
    striking ``fined not more than $5,000 or imprisoned not more than one
    year, or both'' and inserting ``fined under title 18, United States
    Code, imprisoned for not more than 2 years, or both''.

    SEC. 2416. ADMINISTRATIVE ENFORCEMENT.

        (a) Available Enforcement Powers.--Section 621(a) of the Fair Credit
    Reporting Act (15 U.S.C. 1681s(a)) is amended--
                (1) by inserting ``(1)'' after ``(a)'';
                (2) by adding at the end the following new paragraph:

        ``(2)(A) In the event of a knowing violation, which constitutes a
    pattern or practice of violations of this title, the Commission may
    commence a civil action to recover a civil penalty in a district court
    of the United States against any person that violates this title. In
    such action, such person shall be liable for a civil penalty of not more
    than $2,500 per violation.
        ``(B) In determining the amount of a civil penalty under
    subparagraph (A), the court shall take into account the degree of
    culpability, any history of prior such conduct, ability to pay, effect
    on ability to continue to do business, and such other matters as justice
    may require.
        ``(3) Notwithstanding paragraph (2), a court may not impose any
    civil penalty on a person for a violation of section 623(a)(1) unless
    the person has been enjoined from committing the violation, or ordered
    not to commit the violation, in an action or proceeding brought by or on
    behalf of the Federal Trade Commission, and has violated the injunction
    or order, and the court may not impose any civil penalty for any
    violation occurring before the date of the violation of the injunction
    or order.
        ``(4) Neither the Commission nor any other agency referred to in
    subsection (b) may prescribe trade regulation rules or other regulations
    with respect to this title.''.
        (b) Agencies Responsible for Enforcement.--Section 621 of the Fair
    Credit Reporting Act (15 U.S.C. 1681s) is amended--
                (1) in subsection (a), by inserting ``Enforcement by Federal
            Trade Commission.--'' before ``Compliance with the
            requirements'';
                (2) in subsection (b), by striking the matter preceding
            paragraph (1) and inserting the following:

        ``(b) Enforcement by Other Agencies.--Compliance with the
    requirements imposed under this title with respect to consumer reporting
    agencies, persons who use consumer reports from such agencies, persons
    who furnish information to such agencies, and users of information that
    are subject to subsection (d) or (e) of section 615 shall be enforced
    under--''; and

    [[Page 110 STAT. 3009-451]]

                (3) in subsection (c), by adding at the end the following:
            ``Notwithstanding the preceding, no agency referred to in
            subsection (b) may conduct an examination of a bank, savings
            association, or credit union regarding compliance with the
            provisions of this title, except in response to a complaint (or
            if the agency otherwise has knowledge) that the bank, savings
            association, or credit union has violated a provision of this
            title, in which case, the agency may conduct an examination as
            necessary to investigate the complaint. If an agency determines
            during an investigation in response to a complaint that a
            violation of this title has occurred, the agency may, during its
            next 2 regularly scheduled examinations of the bank, savings
            association, or credit union, examine for compliance with this
            title.''.

    SEC. 2417. STATE ENFORCEMENT OF FAIR CREDIT REPORTING ACT.

        Section 621 of the Fair Credit Reporting Act (15 U.S.C. 1681s) is
    amended--
                (1) by redesignating subsection (c) as subsection (d); and
                (2) by inserting after subsection (b) the following new
            subsection:

        ``(c) State Action for Violations.--
                ``(1) Authority of states.--In addition to such other
            remedies as are provided under State law, if the chief law
            enforcement officer of a State, or an official or agency
            designated by a State, has reason to believe that any person has
            violated or is violating this title, the State--
                        ``(A) may bring an action to enjoin such violation
                    in any appropriate United States district court or in
                    any other court of competent jurisdiction;
                        ``(B) subject to paragraph (5), may bring an action
                    on behalf of the residents of the State to recover--
                              ``(i) damages for which the person is liable
                          to such residents under sections 616 and 617 as a
                          result of the violation;
                              ``(ii) in the case of a violation of section
                          623(a), damages for which the person would, but
                          for section 623(c), be liable to such residents as
                          a result of the violation; or
                              ``(iii) damages of not more than $1,000 for
                          each willful or negligent violation; and
                        ``(C) in the case of any successful action under
                    subparagraph (A) or (B), shall be awarded the costs of
                    the action and reasonable attorney fees as determined by
                    the court.
                ``(2) Rights of federal regulators.--The State shall serve
            prior written notice of any action under paragraph (1) upon the
            Federal Trade Commission or the appropriate Federal regulator
            determined under subsection (b) and provide the Commission or
            appropriate Federal regulator with a copy of its complaint,
            except in any case in which such prior notice is not feasible,
            in which case the State shall serve such notice immediately upon
            instituting such action. The Federal Trade Commission or
            appropriate Federal regulator shall have the right--
                        ``(A) to intervene in the action;
                        ``(B) upon so intervening, to be heard on all
                    matters arising therein;

    [[Page 110 STAT. 3009-452]]

                        ``(C) to remove the action to the appropriate United
                    States district court; and
                        ``(D) to file petitions for appeal.
                ``(3) Investigatory powers.--For purposes of bringing any
            action under this subsection, nothing in this subsection shall
            prevent the chief law enforcement officer, or an official or
            agency designated by a State, from exercising the powers
            conferred on the chief law enforcement officer or such official
            by the laws of such State to conduct investigations or to
            administer oaths or affirmations or to compel the attendance of
            witnesses or the production of documentary and other evidence.
                ``(4) Limitation on state action while federal action
            pending.--If the Federal Trade Commission or the appropriate
            Federal regulator has instituted a civil action or an
            administrative action under section 8 of the Federal Deposit
            Insurance Act for a violation of this title, no State may,
            during the pendency of such action, bring an action under this
            section against any defendant named in the complaint of the
            Commission or the appropriate Federal regulator for any
            violation of this title that is alleged in that complaint.
                ``(5) Limitations on state actions for violation of section
            623(a)(1).--
                        ``(A) Violation of injunction required.--A State may
                    not bring an action against a person under paragraph
                    (1)(B) for a violation of section 623(a)(1), unless--
                              ``(i) the person has been enjoined from
                          committing the violation, in an action brought by
                          the State under paragraph (1)(A); and
                              ``(ii) the person has violated the injunction.
                        ``(B) Limitation on damages recoverable.--In an
                    action against a person under paragraph (1)(B) for a
                    violation of section 623(a)(1), a State may not recover
                    any damages incurred before the date of the violation of
                    an injunction on which the action is based.''.

    SEC. 2418. FEDERAL RESERVE BOARD AUTHORITY.

        Section 621 of the Fair Credit Reporting Act (15 U.S.C. 1681s) is
    amended by adding at the end the following new subsection:
        ``(e) Interpretive Authority.--The Board of Governors of the Federal
    Reserve System may issue interpretations of any provision of this title
    as such provision may apply to any persons identified under paragraph
    (1), (2), and (3) of subsection (b), or to the holding companies and
    affiliates of such persons, in consultation with Federal agencies
    identified in paragraphs (1), (2), and (3) of subsection (b).''.

    SEC. 2419. PREEMPTION OF STATE LAW.

        Section 624 of the Fair Credit Reporting Act (as redesignated by
    section 2413(a) of this chapter) is amended--
                (1) by striking ``This title'' and inserting ``(a) In
            General.--Except as provided in subsections (b) and (c), this
            title''; and
                (2) by adding at the end the following new subsection:

        ``(b) General Exceptions.--No requirement or prohibition may be
    imposed under the laws of any State--
                ``(1) with respect to any subject matter regulated under--
                        ``(A) subsection (c) or (e) of section 604, relating
                    to the prescreening of consumer reports;

    [[Page 110 STAT. 3009-453]]

                        ``(B) section 611, relating to the time by which a
                    consumer reporting agency must take any action,
                    including the provision of notification to a consumer or
                    other person, in any procedure related to the disputed
                    accuracy of information in a consumer's file, except
                    that this subparagraph shall not apply to any State law
                    in effect on the date of enactment of the Consumer
                    Credit Reporting Reform Act of 1996;
                        ``(C) subsections (a) and (b) of section 615,
                    relating to the duties of a person who takes any adverse
                    action with respect to a consumer;
                        ``(D) section 615(d), relating to the duties of
                    persons who use a consumer report of a consumer in
                    connection with any credit or insurance transaction that
                    is not initiated by the consumer and that consists of a
                    firm offer of credit or insurance;
                        ``(E) section 605, relating to information contained
                    in consumer reports, except that this subparagraph shall
                    not apply to any State law in effect on the date of
                    enactment of the Consumer Credit Reporting Reform Act of
                    1996; or
                        ``(F) section 623, relating to the responsibilities
                    of persons who furnish information to consumer reporting
                    agencies, except that this paragraph shall not apply--
                              ``(i) with respect to section 54A(a) of
                          chapter 93 of the Massachusetts Annotated Laws (as
                          in effect on the date of enactment of the Consumer
                          Credit Reporting Reform Act of 1996); or
                              ``(ii) with respect to section 1785.25(a) of
                          the California Civil Code (as in effect on the
                          date of enactment of the Consumer Credit Reporting
                          Reform Act of 1996);
                ``(2) with respect to the exchange of information among
            persons affiliated by common ownership or common corporate
            control, except that this paragraph shall not apply with respect
            to subsection (a) or (c)(1) of section 2480e of title 9, Vermont
            Statutes Annotated (as in effect on the date of enactment of the
            Consumer Credit Reporting Reform Act of 1996); or
                ``(3) with respect to the form and content of any disclosure
            required to be made under section 609(c).

        ``(c) Definition of Firm Offer of Credit or Insurance.--
    Notwithstanding any definition of the term `firm offer of credit or
    insurance' (or any equivalent term) under the laws of any State, the
    definition of that term contained in section 603(l) shall be construed
    to apply in the enforcement and interpretation of the laws of any State
    governing consumer reports.
        ``(d) Limitations.--Subsections (b) and (c)--
                ``(1) do not affect any settlement, agreement, or consent
            judgment between any State Attorney General and any consumer
            reporting agency in effect on the date of enactment of the
            Consumer Credit Reporting Reform Act of 1996; and
                ``(2) do not apply to any provision of State law (including
            any provision of a State constitution) that--
                        ``(A) is enacted after January 1, 2004;
                        ``(B) states explicitly that the provision is
                    intended to supplement this title; and

    [[Page 110 STAT. 3009-454]]

                        ``(C) gives greater protection to consumers than is
                    provided under this title.''.

    SEC. 2420. <<NOTE: 15 USC 1681a note.>> EFFECTIVE DATE.

        (a) In General.--Except as otherwise specifically provided in this
    chapter, the amendments made by this chapter shall become effective 365
    days after the date of enactment of this Act.
        (b) Early Compliance.--Any person or other entity that is subject to
    the requirements of this chapter may, at its option, comply with any
    provision of this chapter before the date on which that provision
    becomes effective under this chapter, in which case, each of the
    corresponding provisions of this chapter shall be fully applicable to
    such person or entity.

    SEC. <<NOTE: 15 USC 1681a note.>> 2421. RELATIONSHIP TO OTHER LAW.

        Nothing in this chapter or the amendments made by this chapter shall
    be considered to supersede or otherwise affect section 2721 of title 18,
    United States Code, with respect to motor vehicle records for surveys,
    marketing, or solicitations.

    SEC. 2422. FEDERAL RESERVE BOARD STUDY.

        (a) Study Required.--The Board of Governors of the Federal Reserve
    System, in consultation with the other Federal banking agencies (as
    defined in section 3 of the Federal Deposit Insurance Act) and the
    Federal Trade Commission, shall conduct a study of whether organizations
    which, as of the date of the enactment of this Act, are not subject to
    the Fair Credit Reporting Act as consumer reporting agencies (as defined
    in section 603 of such Act) are engaged in the business of making
    sensitive consumer identification information, including social security
    numbers, mothers' maiden names, prior addresses, and dates of birth,
    available to the general public.
        (b) Determination of Potential for Fraud.--If the Board of Governors
    of the Federal Reserve System determines that organizations referred to
    in subsection (a) are engaged in the business of making sensitive
    consumer identification information available to the general public, the
    Board shall determine--
                (1) whether such activities create undue potential for fraud
            and risk of loss to insured depository institutions (as defined
            in section 3 of the Federal Deposit Insurance Act); and
                (2) if so, whether changes in Federal law are necessary to
            address such risks of fraud and loss.

        (c) Report to Congress.--Before the end of the 6-month period
    beginning on the date of the enactment of this Act, the Board of
    Governors of the Federal Reserve System shall submit a report to the
    Congress containing--
                (1) the findings and conclusion of the Board in connection
            with the study required under subsections (a) and (b); and
                (2) recommendations for such legislative or administrative
            action as the Board determines to be appropriate.

                     CHAPTER 2--CREDIT REPAIR ORGANIZATIONS

    SEC. 2451. REGULATION OF CREDIT REPAIR ORGANIZATIONS.

        Title IV of the Consumer Credit Protection Act (Public Law 90-321,
    82 Stat. 164) is amended to read as follows:

    [[Page 110 STAT. 3009-455]]

      ``TITLE <<NOTE: Credit Repair Organizations Act.>> IV--CREDIT REPAIR
    ORGANIZATIONS
    ``Sec.
    ``401. Short title.
    ``402. Findings and purposes.
    ``403. Definitions.
    ``404. Prohibited practices.
    ``405. Disclosures.
    ``406. Credit repair organizations contracts.
    ``407. Right to cancel contract.
    ``408. Noncompliance with this title.
    ``409. Civil liability.
    ``410. Administrative enforcement.
    ``411. Statute of limitations.
    ``412. Relation to State law.
    ``413. Effective date.

    ``SEC. <<NOTE: 15 USC 1601 note.>> 401. SHORT TITLE.

        ``This title may be cited as the `Credit Repair Organizations Act'.

    ``SEC. <<NOTE: 15 USC 1679.>> 402. FINDINGS AND PURPOSES.

        ``(a) Findings.--The Congress makes the following findings:
                ``(1) Consumers have a vital interest in establishing and
            maintaining their credit worthiness and credit standing in order
            to obtain and use credit. As a result, consumers who have
            experienced credit problems may seek assistance from credit
            repair organizations which offer to improve the credit standing
            of such consumers.
                ``(2) Certain advertising and business practices of some
            companies engaged in the business of credit repair services have
            worked a financial hardship upon consumers, particularly those
            of limited economic means and who are inexperienced in credit
            matters.

        ``(b) Purposes.--The purposes of this title are--
                ``(1) to ensure that prospective buyers of the services of
            credit repair organizations are provided with the information
            necessary to make an informed decision regarding the purchase of
            such services; and
                ``(2) to protect the public from unfair or deceptive
            advertising and business practices by credit repair
            organizations.

    ``SEC. 403. <<NOTE: 15 USC 1679a.>> DEFINITIONS.

        ``For purposes of this title, the following definitions apply:
                ``(1) Consumer.--The term `consumer' means an individual.
                ``(2) Consumer credit transaction.--The term `consumer
            credit transaction' means any transaction in which credit is
            offered or extended to an individual for personal, family, or
            household purposes.
                ``(3) Credit repair organization.--The term `credit repair
            organization'--

    [[Page 110 STAT. 3009-456]]

                        ``(A) means any person who uses any instrumentality
                    of interstate commerce or the mails to sell, provide, or
                    perform (or represent that such person can or will sell,
                    provide, or perform) any service, in return for the
                    payment of money or other valuable consideration, for
                    the express or implied purpose of--
                              ``(i) improving any consumer's credit record,
                          credit history, or credit rating; or
                              ``(ii) providing advice or assistance to any
                          consumer with regard to any activity or service
                          described in clause (i); and
                        ``(B) does not include--
                              ``(i) any nonprofit organization which is
                          exempt from taxation under section 501(c)(3) of
                          the Internal Revenue Code of 1986;
                              ``(ii) any creditor (as defined in section 103
                          of the Truth in Lending Act), with respect to any
                          consumer, to the extent the creditor is assisting
                          the consumer to restructure any debt owed by the
                          consumer to the creditor; or
                              ``(iii) any depository institution (as that
                          term is defined in section 3 of the Federal
                          Deposit Insurance Act) or any Federal or State
                          credit union (as those terms are defined in
                          section 101 of the Federal Credit Union Act), or
                          any affiliate or subsidiary of such a depository
                          institution or credit union.
                ``(4) Credit.--The term `credit' has the meaning given to
            such term in section 103(e) of this Act.

    ``SEC. 404. <<NOTE: 15 USC 1679b.>> PROHIBITED PRACTICES.

        ``(a) In General.--No person may--
                ``(1) make any statement, or counsel or advise any consumer
            to make any statement, which is untrue or misleading (or which,
            upon the exercise of reasonable care, should be known by the
            credit repair organization, officer, employee, agent, or other
            person to be untrue or misleading) with respect to any
            consumer's credit worthiness, credit standing, or credit
            capacity to--
                        ``(A) any consumer reporting agency (as defined in
                    section 603(f) of this Act); or
                        ``(B) any person--
                              ``(i) who has extended credit to the consumer;
                          or
                              ``(ii) to whom the consumer has applied or is
                          applying for an extension of credit;
                ``(2) make any statement, or counsel or advise any consumer
            to make any statement, the intended effect of which is to alter
            the consumer's identification to prevent the display of the
            consumer's credit record, history, or rating for the purpose of
            concealing adverse information that is accurate and not obsolete
            to--
                        ``(A) any consumer reporting agency;
                        ``(B) any person--
                              ``(i) who has extended credit to the consumer;
                          or
                              ``(ii) to whom the consumer has applied or is
                          applying for an extension of credit;
                ``(3) make or use any untrue or misleading representation of
            the services of the credit repair organization; or

    [[Page 110 STAT. 3009-457]]

                ``(4) engage, directly or indirectly, in any act, practice,
            or course of business that constitutes or results in the
            commission of, or an attempt to commit, a fraud or deception on
            any person in connection with the offer or sale of the services
            of the credit repair organization.

        ``(b) Payment in Advance.--No credit repair organization may charge
    or receive any money or other valuable consideration for the performance
    of any service which the credit repair organization has agreed to
    perform for any consumer before such service is fully performed.

    ``SEC. 405. <<NOTE: 15 USC 1679c.>> DISCLOSURES.

        ``(a) Disclosure Required.--Any credit repair organization shall
    provide any consumer with the following written statement before any
    contract or agreement between the consumer and the credit repair
    organization is executed:

           `` `Consumer Credit File Rights Under State and Federal Law

        `` `You have a right to dispute inaccurate information in your
    credit report by contacting the credit bureau directly. However, neither
    you nor any ``credit repair'' company or credit repair organization has
    the right to have accurate, current, and verifiable information removed
    from your credit report. The credit bureau must remove accurate,
    negative information from your report only if it is over 7 years old.
    Bankruptcy information can be reported for 10 years.
        `` `You have a right to obtain a copy of your credit report from a
    credit bureau. You may be charged a reasonable fee. There is no fee,
    however, if you have been turned down for credit, employment, insurance,
    or a rental dwelling because of information in your credit report within
    the preceding 60 days. The credit bureau must provide someone to help
    you interpret the information in your credit file. You are entitled to
    receive a free copy of your credit report if you are unemployed and
    intend to apply for employment in the next 60 days, if you are a
    recipient of public welfare assistance, or if you have reason to believe
    that there is inaccurate information in your credit report due to fraud.
        `` `You have a right to sue a credit repair organization that
    violates the Credit Repair Organization Act. This law prohibits
    deceptive practices by credit repair organizations.
        `` `You have the right to cancel your contract with any credit
    repair organization for any reason within 3 business days from the date
    you signed it.
        `` `Credit bureaus are required to follow reasonable procedures to
    ensure that the information they report is accurate. However, mistakes
    may occur.
        `` `You may, on your own, notify a credit bureau in writing that you
    dispute the accuracy of information in your credit file. The credit
    bureau must then reinvestigate and modify or remove inaccurate or
    incomplete information. The credit bureau may not charge any fee for
    this service. Any pertinent information and copies of all documents you
    have concerning an error should be given to the credit bureau.

    [[Page 110 STAT. 3009-458]]

        `` `If the credit bureau's reinvestigation does not resolve the
    dispute to your satisfaction, you may send a brief statement to the
    credit bureau, to be kept in your file, explaining why you think the
    record is inaccurate. The credit bureau must include a summary of your
    statement about disputed information with any report it issues about
    you.
        `` `The Federal Trade Commission regulates credit bureaus and credit
    repair organizations. For more information contact:

                         `` `The Public Reference Branch

                          `` `Federal Trade Commission

                          `` `Washington, D.C. 20580'.

        ``(b) Separate Statement Requirement.--The written statement
    required under this section shall be provided as a document which is
    separate from any written contract or other agreement between the credit
    repair organization and the consumer or any other written material
    provided to the consumer.
        ``(c) Retention of Compliance Records.--
                ``(1) In general.--The credit repair organization shall
            maintain a copy of the statement signed by the consumer
            acknowledging receipt of the statement.
                ``(2) Maintenance for 2 years.--The copy of any consumer's
            statement shall be maintained in the organization's files for 2
            years after the date on which the statement is signed bythe
            consumer.

    ``SEC. 406. <<NOTE: 15 USC 1679d.>> CREDIT REPAIR ORGANIZATIONS
                CONTRACTS.

        ``(a) Written Contracts Required.--No services may be provided by
    any credit repair organization for any consumer--
                ``(1) unless a written and dated contract (for the purchase
            of such services) which meets the requirements of subsection (b)
            has been signed by the consumer; or
                ``(2) before the end of the 3-business-day period beginning
            on the date the contract is signed.

        ``(b) Terms and Conditions of Contract.--No contract referred to in
    subsection (a) meets the requirements of this subsection unless such
    contract includes (in writing)--
                ``(1) the terms and conditions of payment, including the
            total amount of all payments to be made by the consumer to the
            credit repair organization or to any other person;
                ``(2) a full and detailed description of the services to be
            performed by the credit repair organization for the consumer,
            including--
                        ``(A) all guarantees of performance; and
                        ``(B) an estimate of--
                              ``(i) the date by which the performance of the
                          services (to be performed by the credit repair
                          organization or any other person) will be
                          complete; or
                              ``(ii) the length of the period necessary to
                          perform such services;
                ``(3) the credit repair organization's name and principal
            business address; and
                ``(4) a conspicuous statement in bold face type, in
            immediate proximity to the space reserved for the consumer's
            signature on the contract, which reads as follows: `You may
            cancel this

    [[Page 110 STAT. 3009-459]]

            contract without penalty or obligation at any time before
            midnight of the 3rd business day after the date on which you
            signed the contract. See the attached notice of cancellation
            form for an explanation of this right.'.

    ``SEC. 407. <<NOTE: 15 USC 1679e.>> RIGHT TO CANCEL CONTRACT.

        ``(a) In General.--Any consumer may cancel any contract with any
    credit repair organization without penalty or obligation by notifying
    the credit repair organization of the consumer's intention to do so at
    any time before midnight of the 3rd business day which begins after the
    date on which the contract or agreement between the consumer and the
    credit repair organization is executed or would, but for this
    subsection, become enforceable against the parties.
        ``(b) Cancellation Form and Other Information.--Each contract shall
    be accompanied by a form, in duplicate, which has the heading `Notice of
    Cancellation' and contains in bold face type the following statement:
                `` `You may cancel this contract, without any penalty or
            obligation, at any time before midnight of the 3rd day which
            begins after the date the contract is signed by you.
                `` `To cancel this contract, mail or deliver a signed, dated
            copy of this cancellation notice, or any other written notice to
            [ name of credit repair organization ] at [ address of credit
            repair organization ] before midnight on [ date ]
                `` `I hereby cancel this transaction,
                [ date ]
                [ purchaser's signature ].'.

        ``(c) Consumer Copy of Contract Required.--Any consumer who enters
    into any contract with any credit repair organization shall be given, by
    the organization--
                ``(1) a copy of the completed contract and the disclosure
            statement required under section 405; and
                ``(2) a copy of any other document the credit repair
            organization requires the consumer to sign, at the time the
            contract or the other document is signed.

    ``SEC. 408. <<NOTE: 15 USC 1679f.>> NONCOMPLIANCE WITH THIS TITLE.

        ``(a) Consumer Waivers Invalid.--Any waiver by any consumer of any
    protection provided by or any right of the consumer under this title--
                ``(1) shall be treated as void; and
                ``(2) may not be enforced by any Federal or State court or
            any other person.

        ``(b) Attempt To Obtain Waiver.--Any attempt by any person to obtain
    a waiver from any consumer of any protection provided by or any right of
    the consumer under this title shall be treated as a violation of this
    title.
        ``(c) Contracts Not in Compliance.--Any contract for services which
    does not comply with the applicable provisions of this title--
                ``(1) shall be treated as void; and
                ``(2) may not be enforced by any Federal or State court or
            any other person.

    ``SEC. 409. <<NOTE: 15 USC 1679g.>> CIVIL LIABILITY.

        ``(a) Liability Established.--Any person who fails to comply with
    any provision of this title with respect to any other person

    [[Page 110 STAT. 3009-460]]

    shall be liable to such person in an amount equal to the sum of the
    amounts determined under each of the following paragraphs:
                ``(1) Actual damages.--The greater of--
                        ``(A) the amount of any actual damage sustained by
                    such person as a result of such failure; or
                        ``(B) any amount paid by the person to the credit
                    repair organization.
                ``(2) Punitive damages.--
                        ``(A) Individual actions.--In the case of any action
                    by an individual, such additional amount as the court
                    may allow.
                        ``(B) Class actions.--In the case of a class action,
                    the sum of--
                              ``(i) the aggregate of the amount which the
                          court may allow for each named plaintiff; and
                              ``(ii) the aggregate of the amount which the
                          court may allow for each other class member,
                          without regard to any minimum individual recovery.
                ``(3) Attorneys' fees.--In the case of any successful action
            to enforce any liability under paragraph (1) or (2), the costs
            of the action, together with reasonable attorneys' fees.

        ``(b) Factors To Be Considered in Awarding Punitive Damages.--In
    determining the amount of any liability of any credit repair
    organization under subsection (a)(2), the court shall consider, among
    other relevant factors--
                ``(1) the frequency and persistence of noncompliance by the
            credit repair organization;
                ``(2) the nature of the noncompliance;
                ``(3) the extent to which such noncompliance was
            intentional; and
                ``(4) in the case of any class action, the number of
            consumers adversely affected.

    ``SEC. 410. <<NOTE: 15 USC 1679h.>> ADMINISTRATIVE ENFORCEMENT.

        ``(a) In General.--Compliance with the requirements imposed under
    this title with respect to credit repair organizations shall be enforced
    under the Federal Trade Commission Act by the Federal Trade Commission.
        ``(b) Violations of This Title Treated as Violations of Federal
    Trade Commission Act.--
                ``(1) In general.--For the purpose of the exercise by the
            Federal Trade Commission of the Commission's functions and
            powers under the Federal Trade Commission Act, any violation of
            any requirement or prohibition imposed under this title with
            respect to credit repair organizations shall constitute an
            unfair or deceptive act or practice in commerce in violation of
            section 5(a) of the Federal Trade Commission Act.
                ``(2) Enforcement authority under other law.--All functions
            and powers of the Federal Trade Commission under the Federal
            Trade Commission Act shall be available to the Commission to
            enforce compliance with this title by any person subject to
            enforcement by the Federal Trade Commission pursuant to this
            subsection, including the power to enforce the provisions of
            this title in the same manner as if the violation had been a
            violation of any Federal Trade Commission trade regulation rule,
            without regard to whether the credit repair organization--

    [[Page 110 STAT. 3009-461]]

                        ``(A) is engaged in commerce; or
                        ``(B) meets any other jurisdictional tests in the
                    Federal Trade Commission Act.

        ``(c) State Action for Violations.--
                ``(1) Authority of states.--In addition to such other
            remedies as are provided under State law, whenever the chief law
            enforcement officer of a State, or an official or agency
            designated by a State, has reason to believe that any person has
            violated or is violating this title, the State--
                        ``(A) may bring an action to enjoin such violation;
                        ``(B) may bring an action on behalf of its residents
                    to recover damages for which the person is liable to
                    such residents under section 409 as a result of the
                    violation; and
                        ``(C) in the case of any successful action under
                    subparagraph (A) or (B), shall be awarded the costs of
                    the action and reasonable attorney fees as determined by
                    the court.
                ``(2) Rights of commission.--
                        ``(A) Notice to commission.--The State shall serve
                    prior written notice of any civil action under paragraph
                    (1) upon the Federal Trade Commission and provide the
                    Commission with a copy of its complaint, except in any
                    case where such prior notice is not feasible, in which
                    case the State shall serve such notice immediately upon
                    instituting such action.
                        ``(B) Intervention.--The Commission shall have the
                    right--
                              ``(i) to intervene in any action referred to
                          in subparagraph (A);
                              ``(ii) upon so intervening, to be heard on all
                          matters arising in the action; and
                              ``(iii) to file petitions for appeal.
                ``(3) Investigatory powers.--For purposes of bringing any
            action under this subsection, nothing in this subsection shall
            prevent the chief law enforcement officer, or an official or
            agency designated by a State, from exercising the powers
            conferred on the chief law enforcement officer or such official
            by the laws of such State to conduct investigations or to
            administer oaths or affirmations or to compel the attendance of
            witnesses or the production of documentary and other evidence.
                ``(4) Limitation.--Whenever the Federal Trade Commission has
            instituted a civil action for violation of this title, no State
            may, during the pendency of such action, bring an action under
            this section against any defendant named in the complaint of the
            Commission for any violation of this title that is alleged in
            that complaint.

    ``SEC. 411. <<NOTE: 15 USC 1679i.>> STATUTE OF LIMITATIONS.

        ``Any action to enforce any liability under this title may be
    brought before the later of--
                ``(1) the end of the 5-year period beginning on the date of
            the occurrence of the violation involved; or
                ``(2) in any case in which any credit repair organization
            has materially and willfully misrepresented any information
            which--
                        ``(A) the credit repair organization is required, by
                    any provision of this title, to disclose to any
                    consumer; and

    [[Page 110 STAT. 3009-462]]

                        ``(B) is material to the establishment of the credit
                    repair organization's liability to the consumer under
                    this title,
            the end of the 5-year period beginning on the date of the
            discovery by the consumer of the misrepresentation.

    ``SEC. 412. <<NOTE: 15 USC 1679j.>> RELATION TO STATE LAW.

        ``This title shall not annul, alter, affect, or exempt any person
    subject to the provisions of this title from complying with any law of
    any State except to the extent that such law is inconsistent with any
    provision of this title, and then only to the extent of the
    inconsistency.

    ``SEC. 413. <<NOTE: 15 USC 1679 note.>> EFFECTIVE DATE.

        ``This title shall apply after the end of the 6-month period
    beginning on the date of the enactment of the Credit Repair
    Organizations Act, except with respect to contracts entered into by a
    credit repair organization before the end of such period.''.

    SEC. 2452. CREDIT WORTHINESS.

        It is the sense of the Senate that--
                (1) individuals should generally be judged for credit
            worthiness based on their own credit worthiness and not on the
            zip code or neighborhood in which they live; and
                (2) the Federal Trade Commission, after consultation with
            the appropriate Federal banking agency, should report to the
            Committee on Banking, Housing, and Urban Affairs of the Senate
            as to whether and how the location of the residence of an
            applicant for unsecured credit is considered by many companies
            and financial institutions in deciding whether an applicant
            should be granted credit.

      Subtitle E--Asset <<NOTE: Asset Conservation, Lender Liability, and
             Deposit Insurance Protection Act of 1996. 42 USC 9601
    note.>> Conservation, Lender Liability, and Deposit Insurance Protection

    SEC. 2501. SHORT TITLE.

        This subtitle may be cited as the ``Asset Conservation, Lender
    Liability, and Deposit Insurance Protection Act of 1996''.

    SEC. 2502. CERCLA LENDER AND FIDUCIARY LIABILITY LIMITATIONS AMENDMENTS.

        (a) In General.--Section 107 of the Comprehensive Environmental
    Response, Compensation, and Liability Act of 1980 (42 U.S.C. 9607) is
    amended by adding at the end the following:
        ``(n) Liability of Fiduciaries.--
                ``(1) In general.--The liability of a fiduciary under any
            provision of this Act for the release or threatened release of a
            hazardous substance at, from, or in connection with a vessel or
            facility held in a fiduciary capacity shall not exceed the
            assets held in the fiduciary capacity.
                ``(2) Exclusion.--Paragraph (1) does not apply to the extent
            that a person is liable under this Act independently of the
            person's ownership of a vessel or facility as a fiduciary or
            actions taken in a fiduciary capacity.
                ``(3) Limitation.--Paragraphs (1) and (4) do not limit the
            liability pertaining to a release or threatened release of a

    [[Page 110 STAT. 3009-463]]

            hazardous substance if negligence of a fiduciary causes or
            contributes to the release or threatened release.
                ``(4) Safe harbor.--A fiduciary shall not be liable in its
            personal capacity under this Act for--
                        ``(A) undertaking or directing another person to
                    undertake a response action under subsection (d)(1) or
                    under the direction of an on scene coordinator
                    designated under the National Contingency Plan;
                        ``(B) undertaking or directing another person to
                    undertake any other lawful means of addressing a
                    hazardous substance in connection with the vessel or
                    facility;
                        ``(C) terminating the fiduciary relationship;
                        ``(D) including in the terms of the fiduciary
                    agreement a covenant, warranty, or other term or
                    condition that relates to compliance with an
                    environmental law, or monitoring, modifying or enforcing
                    the term or condition;
                        ``(E) monitoring or undertaking 1 or more
                    inspections of the vessel or facility;
                        ``(F) providing financial or other advice or
                    counseling to other parties to the fiduciary
                    relationship, including the settlor or beneficiary;
                        ``(G) restructuring, renegotiating, or otherwise
                    altering the terms and conditions of the fiduciary
                    relationship;
                        ``(H) administering, as a fiduciary, a vessel or
                    facility that was contaminated before the fiduciary
                    relationship began; or
                        ``(I) declining to take any of the actions described
                    in subparagraphs (B) through (H).
                ``(5) Definitions.--As used in this Act:
                        ``(A) Fiduciary.--The term `fiduciary'--
                              ``(i) means a person acting for the benefit of
                          another party as a bona fide--
                                        ``(I) trustee;
                                        ``(II) executor;
                                        ``(III) administrator;
                                        ``(IV) custodian;
                                        ``(V) guardian of estates or
                                    guardian ad litem;
                                        ``(VI) receiver;
                                        ``(VII) conservator;
                                        ``(VIII) committee of estates of
                                    incapacitated persons;
                                        ``(IX) personal representative;
                                        ``(X) trustee (including a successor
                                    to a trustee) under an indenture
                                    agreement, trust agreement, lease, or
                                    similar financing agreement, for debt
                                    securities, certificates of interest or
                                    certificates of participation in debt
                                    securities, or other forms of
                                    indebtedness as to which the trustee is
                                    not, in the capacity of trustee, the
                                    lender; or
                                        ``(XI) representative in any other
                                    capacity that the Administrator, after
                                    providing public notice, determines to
                                    be similar to the capacities described
                                    in subclauses (I) through (X); and
                              ``(ii) does not include--
                                        ``(I) a person that is acting as a
                                    fiduciary with respect to a trust or
                                    other fiduciary estate that was
                                    organized for the primary purpose of, or
                                    is

    [[Page 110 STAT. 3009-464]]

                                    engaged in, actively carrying on a trade
                                    or business for profit, unless the trust
                                    or other fiduciary estate was created as
                                    part of, or to facilitate, 1 or more
                                    estate plans or because of the
                                    incapacity of a natural person; or
                                        ``(II) a person that acquires
                                    ownership or control of a vessel or
                                    facility with the objective purpose of
                                    avoiding liability of the person or of
                                    any other person.
                        ``(B) Fiduciary capacity.--The term `fiduciary
                    capacity' means the capacity of a person in holding
                    title to a vessel or facility, or otherwise having
                    control of or an interest in the vessel or facility,
                    pursuant to the exercise of the responsibilities of the
                    person as a fiduciary.
                ``(6) Savings clause.--Nothing in this subsection--
                        ``(A) affects the rights or immunities or other
                    defenses that are available under this Act or other law
                    that is applicable to a person subject to this
                    subsection; or
                        ``(B) creates any liability for a person or a
                    private right of action against a fiduciary or any other
                    person.
                ``(7) No effect on certain persons.--Nothing in this
            subsection applies to a person if the person--
                        ``(A)(i) acts in a capacity other than that of a
                    fiduciary or in a beneficiary capacity; and
                        ``(ii) in that capacity, directly or indirectly
                    benefits from a trust or fiduciary relationship; or
                        ``(B)(i) is a beneficiary and a fiduciary with
                    respect to the same fiduciary estate; and
                        ``(ii) as a fiduciary, receives benefits that exceed
                    customary or reasonable compensation, and incidental
                    benefits, permitted under other applicable law.
                ``(8) Limitation.--This subsection does not preclude a claim
            under this Act against--
                        ``(A) the assets of the estate or trust administered
                    by the fiduciary; or
                        ``(B) a nonemployee agent or independent contractor
                    retained by a fiduciary.''.

        (b) Definition of Owner or Operator.--Section 101(20) of the
    Comprehensive Environmental Response, Compensation, and Liability Act of
    1980 (42 U.S.C. 9601(20)) is amended by adding at the end the following:
                        ``(E) Exclusion of lenders not participants in
                    management.--
                              ``(i) Indicia of ownership to protect
                          security.--The term `owner or operator' does not
                          include a person that is a lender that, without
                          participating in the management of a vessel or
                          facility, holds indicia of ownership primarily to
                          protect the security interest of the person in the
                          vessel or facility.
                              ``(ii) Foreclosure.--The term `owner or
                          operator' does not include a person that is a
                          lender that did not participate in management of a
                          vessel or facility prior to foreclosure,
                          notwithstanding that the person--
                                        ``(I) forecloses on the vessel or
                                    facility; and
                                        ``(II) after foreclosure, sells, re-
                                    leases (in the case of a lease finance
                                    transaction), or liquidates the vessel
                                    or facility, maintains business
                                    activities,

    [[Page 110 STAT. 3009-465]]

                                    winds up operations, undertakes a
                                    response action under section 107(d)(1)
                                    or under the direction of an on-scene
                                    coordinator appointed under the National
                                    Contingency Plan, with respect to the
                                    vessel or facility, or takes any other
                                    measure to preserve, protect, or prepare
                                    the vessel or facility prior to sale or
                                    disposition,
                          if the person seeks to sell, re-lease (in the case
                          of a lease finance transaction), or otherwise
                          divest the person of the vessel or facility at the
                          earliest practicable, commercially reasonable
                          time, on commercially reasonable terms, taking
                          into account market conditions and legal and
                          regulatory requirements.
                        ``(F) Participation in management.--For purposes of
                    subparagraph (E)--
                              ``(i) the term `participate in management'--
                                        ``(I) means actually participating
                                    in the management or operational affairs
                                    of a vessel or facility; and
                                        ``(II) does not include merely
                                    having the capacity to influence, or the
                                    unexercised right to control, vessel or
                                    facility operations;
                              ``(ii) a person that is a lender and that
                          holds indicia of ownership primarily to protect a
                          security interest in a vessel or facility shall be
                          considered to participate in management only if,
                          while the borrower is still in possession of the
                          vessel or facility encumbered by the security
                          interest, the person--
                                        ``(I) exercises decisionmaking
                                    control over the environmental
                                    compliance related to the vessel or
                                    facility, such that the person has
                                    undertaken responsibility for the
                                    hazardous substance handling or disposal
                                    practices related to the vessel or
                                    facility; or
                                        ``(II) exercises control at a level
                                    comparable to that of a manager of the
                                    vessel or facility, such that the person
                                    has assumed or manifested
                                    responsibility--
                                                ``(aa) for the overall
                                            management of the vessel or
                                            facility encompassing day-to-day
                                            decisionmaking with respect to
                                            environmental compliance; or
                                                ``(bb) over all or
                                            substantially all of the
                                            operational functions (as
                                            distinguished from financial or
                                            administrative functions) of the
                                            vessel or facility other than
                                            the function of environmental
                                            compliance;
                              ``(iii) the term `participate in management'
                          does not include performing an act or failing to
                          act prior to the time at which a security interest
                          is created in a vessel or facility; and
                              ``(iv) the term `participate in management'
                          does not include--
                                        ``(I) holding a security interest or
                                    abandoning or releasing a security
                                    interest;
                                        ``(II) including in the terms of an
                                    extension of credit, or in a contract or
                                    security agreement

    [[Page 110 STAT. 3009-466]]

                                    relating to the extension, a covenant,
                                    warranty, or other term or condition
                                    that relates to environmental
                                    compliance;
                                        ``(III) monitoring or enforcing the
                                    terms and conditions of the extension of
                                    credit or security interest;
                                        ``(IV) monitoring or undertaking 1
                                    or more inspections of the vessel or
                                    facility;
                                        ``(V) requiring a response action or
                                    other lawful means of addressing the
                                    release or threatened release of a
                                    hazardous substance in connection with
                                    the vessel or facility prior to, during,
                                    or on the expiration of the term of the
                                    extension of credit;
                                        ``(VI) providing financial or other
                                    advice or counseling in an effort to
                                    mitigate, prevent, or cure default or
                                    diminution in the value of the vessel or
                                    facility;
                                        ``(VII) restructuring,
                                    renegotiating, or otherwise agreeing to
                                    alter the terms and conditions of the
                                    extension of credit or security
                                    interest, exercising forbearance;
                                        ``(VIII) exercising other remedies
                                    that may be available under applicable
                                    law for the breach of a term or
                                    condition of the extension of credit or
                                    security agreement; or
                                        ``(IX) conducting a response action
                                    under section 107(d) or under the
                                    direction of an on-scene coordinator
                                    appointed under the National Contingency
                                    Plan,
                          if the actions do not rise to the level of
                          participating in management (within the meaning of
                          clauses (i) and (ii)).
                        ``(G) Other terms.--As used in this Act:
                              ``(i) Extension of credit.--The term
                          `extension of credit' includes a lease finance
                          transaction--
                                        ``(I) in which the lessor does not
                                    initially select the leased vessel or
                                    facility and does not during the lease
                                    term control the daily operations or
                                    maintenance of the vessel or facility;
                                    or
                                        ``(II) that conforms with
                                    regulations issued by the appropriate
                                    Federal banking agency or the
                                    appropriate State bank supervisor (as
                                    those terms are defined in section 3 of
                                    the Federal Deposit Insurance Act (12
                                    U.S.C. 1813) or with regulations issued
                                    by the National Credit Union
                                    Administration Board, as appropriate.
                              ``(ii) Financial or administrative function.--
                          The term `financial or administrative function'
                          includes a function such as that of a credit
                          manager, accounts payable officer, accounts
                          receivable officer, personnel manager,
                          comptroller, or chief financial officer, or a
                          similar function.
                              ``(iii) Foreclosure; foreclose.--The terms
                          `foreclosure' and `foreclose' mean, respectively,
                          acquiring, and to acquire, a vessel or facility
                          through--

    [[Page 110 STAT. 3009-467]]

                                        ``(I)(aa) purchase at sale under a
                                    judgment or decree, power of sale, or
                                    nonjudicial foreclosure sale;
                                        ``(bb) a deed in lieu of
                                    foreclosure, or similar conveyance from
                                    a trustee; or
                                        ``(cc) repossession,
                          if the vessel or facility was security for an
                          extension of credit previously contracted;
                                        ``(II) conveyance pursuant to an
                                    extension of credit previously
                                    contracted, including the termination of
                                    a lease agreement; or
                                        ``(III) any other formal or informal
                                    manner by which the person acquires, for
                                    subsequent disposition, title to or
                                    possession of a vessel or facility in
                                    order to protect the security interest
                                    of the person.
                              ``(iv) Lender.--The term `lender' means--
                                        ``(I) an insured depository
                                    institution (as defined in section 3 of
                                    the Federal Deposit Insurance Act (12
                                    U.S.C. 1813));
                                        ``(II) an insured credit union (as
                                    defined in section 101 of the Federal
                                    Credit Union Act (12 U.S.C. 1752));
                                        ``(III) a bank or association
                                    chartered under the Farm Credit Act of
                                    1971 (12 U.S.C. 2001 et seq.);
                                        ``(IV) a leasing or trust company
                                    that is an affiliate of an insured
                                    depository institution;
                                        ``(V) any person (including a
                                    successor or assignee of any such
                                    person) that makes a bona fide extension
                                    of credit to or takes or acquires a
                                    security interest from a nonaffiliated
                                    person;
                                        ``(VI) the Federal National Mortgage
                                    Association, the Federal Home Loan
                                    Mortgage Corporation, the Federal
                                    Agricultural Mortgage Corporation, or
                                    any other entity that in a bona fide
                                    manner buys or sells loans or interests
                                    in loans;
                                        ``(VII) a person that insures or
                                    guarantees against a default in the
                                    repayment of an extension of credit, or
                                    acts as a surety with respect to an
                                    extension of credit, to a nonaffiliated
                                    person; and
                                        ``(VIII) a person that provides
                                    title insurance and that acquires a
                                    vessel or facility as a result of
                                    assignment or conveyance in the course
                                    of underwriting claims and claims
                                    settlement.
                              ``(v) Operational function.--The term
                          `operational function' includes a function such as
                          that of a facility or plant manager, operations
                          manager, chief operating officer, or chief
                          executive officer.
                              ``(vi) Security interest.--The term `security
                          interest' includes a right under a mortgage, deed
                          of trust, assignment, judgment lien, pledge,
                          security agreement, factoring agreement, or lease
                          and any other right accruing to a person to secure
                          the repayment of money, the performance of a duty,
                          or any other obligation by a nonaffiliated
                          person.''.

    [[Page 110 STAT. 3009-468]]

    SEC. 2503. CONFORMING AMENDMENT.

        Section 9003(h) of the Solid Waste Disposal Act (42 U.S.C. 6991b(h))
    is amended by striking paragraph (9) and inserting the following:
                ``(9) Definition of owner or operator.--
                        ``(A) In general.--As used in this subtitle, the
                    terms `owner' and `operator' do not include a person
                    that, without participating in the management of an
                    underground storage tank and otherwise not engaged in
                    petroleum production, refining, or marketing, holds
                    indicia of ownership primarily to protect the person's
                    security interest.
                        ``(B) Security interest holders.--The provisions
                    regarding holders of security interests in subparagraphs
                    (E) through (G) of section 101(20) and the provisions
                    regarding fiduciaries at section 107(n) of the
                    Comprehensive Environmental Response, Compensation, and
                    Liability Act of 1980 shall apply in determining a
                    person's liability as an owner or operator of an
                    underground storage tank for the purposes of this
                    subtitle.
                        ``(C) Effect on rule.--Nothing in subparagraph (B)
                    shall be construed as modifying or affecting the final
                    rule issued by the Administrator on September 7, 1995
                    (60 Fed. Reg. 46,692), or as limiting the authority of
                    the Administrator to amend the final rule, in accordance
                    with applicable law. The final rule in effect on the
                    date of enactment of this subparagraph shall prevail
                    over any inconsistent provision regarding holders of
                    security interests in subparagraphs (E) through (G) of
                    section 101(20) or any inconsistent provision regarding
                    fiduciaries in section 107(n) of the Comprehensive
                    Environmental Response, Compensation, and Liability Act
                    of 1980. Any amendment to the final rule shall be
                    consistent with the provisions regarding holders of
                    security interests in subparagraphs (E) through (G) of
                    section 101(20) and the provisions regarding fiduciaries
                    in section 107(n) of the Comprehensive Environmental
                    Response, Compensation, and Liability Act of 1980. This
                    subparagraph does not preclude judicial review of any
                    amendment of the final rule made after the date of
                    enactment of this subparagraph.''.

    SEC. 2504. LENDER LIABILITY RULE.

        (a) In General.--Effective on the date of enactment of this Act, the
    portion of the final rule issued by the Administrator of the
    Environmental Protection Agency on April 29, 1992 (57 Fed. Reg. 18,344),
    prescribing section 300.1105 of title 40, Code of Federal Regulations,
    shall be deemed to have been validly issued under authority of the
    Comprehensive Environmental Response, Compensation, and Liability Act of
    1980 (42 U.S.C. 9601 et seq.) and to have been effective according to
    the terms of the final rule. No additional judicial proceedings shall be
    necessary or may be held with respect to such portion of the final rule.
    Any reference in that portion of the final rule to section 300.1100 of
    title 40, Code of Federal Regulations, shall be deemed to be a reference
    to the amendments made by this subtitle.
        (b) Judicial Review.--Notwithstanding section 113(a) of the
    Comprehensive Environmental Response, Compensation, and

    [[Page 110 STAT. 3009-469]]

    Liability Act of 1980 (42 U.S.C. 9613(a)), no court shall have
    jurisdiction to review the portion of the final rule issued by the
    Administrator of the Environmental Protection Agency on April 29, 1992
    (57 Fed. Reg. 18,344) that prescribed section 300.1105 of title 40, Code
    of Federal Regulations.
        (c) Amendment.--No provision of this section shall be construed as
    limiting the authority of the President or a delegee of the President to
    amend the portion of the final rule issued by the Administrator of the
    Environmental Protection Agency on April 29, 1992 (57 Fed. Reg. 18,344),
    prescribing section 300.1105 of title 40, Code of Federal Regulations,
    consistent with the amendments made by this subtitle and other
    applicable law.
        (d) Judicial Review.--No provision of this section shall be
    construed as precluding judicial review of any amendment of section
    300.1105 of title 40, Code of Federal Regulations, made after the date
    of enactment of this Act.

    SEC. 2505. <<NOTE: 42 USC 6991b note.>> EFFECTIVE DATE.

        The amendments made by this subtitle shall be applicable with
    respect to any claim that has not been finally adjudicated as of the
    date of enactment of this Act.

                            Subtitle F--Miscellaneous

    SEC. 2601. FEDERAL RESERVE BOARD STUDY.

        (a) Study of Electronic Stored Value Products.--
                (1) Study.--The Board shall conduct a study of electronic
            stored value products which evaluates whether provisions of the
            Electronic Fund Transfer Act could be applied to such products
            without adversely impacting the cost, development, and operation
            of such products.
                (2) Considerations.--In conducting its study under paragraph
            (1), the Board shall consider whether alternatives to regulation
            under the Electronic Fund Transfer Act, such as allowing
            competitive market forces to shape the development and operation
            of electronic stored value products, could more efficiently
            achieve the objectives embodied in that Act.

        (b) Report.--The Board shall submit a report of its study under
    subsection (a) to the Congress not later than 6 months after the date of
    enactment of this Act.
        (c) Action To Finalize.--The Board shall take no action to finalize
    any amendments to regulations under the Electronic Fund Transfer Act
    that would regulate electronic stored value products until the later
    of--
                (1) 3 months after the date on which the report is submitted
            to the Congress under subsection (b); or
                (2) 9 months after the date of enactment of this Act.

    SEC. 2602. TREATMENT OF CLAIMS ARISING FROM BREACH OF CONTRACTS EXECUTED
                BY THE RECEIVER OR CONSERVATOR.

        Section 11(d) of the Federal Deposit Insurance Act (12 U.S.C.
    1821(d)) is amended by adding at the end the following new paragraph:
                ``(20) Treatment of claims arising from breach of contracts
            executed by the receiver or conservator.--Notwithstanding any
            other provision of this subsection, any final

    [[Page 110 STAT. 3009-470]]

            and unappealable judgment for monetary damages entered against a
            receiver or conservator for an insured depository institution
            for the breach of an agreement executed or approved by such
            receiver or conservator after the date of its appointment shall
            be paid as an administrative expense of the receiver or
            conservator. Nothing in this paragraph shall be construed to
            limit the power of a receiver or conservator to exercise any
            rights under contract or law, including to terminate, breach,
            cancel, or otherwise discontinue such agreement.''.

    SEC. 2603. CRIMINAL SANCTIONS FOR FICTITIOUS FINANCIAL INSTRUMENTS AND
                COUNTERFEITING.

        (a) Increased Penalties for Counterfeiting Violations.--Sections 474
    and 474A of title 18, United States Code, are amended by striking
    ``class C felony'' each place that term appears and inserting ``class B
    felony''.
        (b) Criminal Penalty for Production, Sale, Transportation,
    Possession of Fictitious Financial Instruments Purporting to be Those of
    the States, of Political Subdivisions, and of Private Organizations.--
                (1) In general.--Chapter 25 of title 18, United States Code,
            is amended by inserting after section 513, the following new
            section:

    ``Sec. 514. Fictitious obligations

        ``(a) Whoever, with the intent to defraud--
                ``(1) draws, prints, processes, produces, publishes, or
            otherwise makes, or attempts or causes the same, within the
            United States;
                ``(2) passes, utters, presents, offers, brokers, issues,
            sells, or attempts or causes the same, or with like intent
            possesses, within the United States; or
                ``(3) utilizes interstate or foreign commerce, including the
            use of the mails or wire, radio, or other electronic
            communication, to transmit, transport, ship, move, transfer, or
            attempts or causes the same, to, from, or through the United
            States,

    any false or fictitious instrument, document, or other item appearing,
    representing, purporting, or contriving through scheme or artifice, to
    be an actual security or other financial instrument issued under the
    authority of the United States, a foreign government, a State or other
    political subdivision of the United States, or an organization, shall be
    guilty of a class B felony.
        ``(b) For purposes of this section, any term used in this section
    that is defined in section 513(c) has the same meaning given such term
    in section 513(c).
        ``(c) The United States Secret Service, in addition to any other
    agency having such authority, shall have authority to investigate
    offenses under this section.''.
                (2) Technical amendment.--The analysis for chapter 25 of
            title 18, United States Code, is amended by inserting after the
            item relating to section 513 the following:

    ``514. Fictitious obligations.''.

    SEC. 2604. AMENDMENTS TO THE TRUTH IN SAVINGS ACT.

        (a) Repeal.--Effective as of the end of the 5-year period beginning
    on the date of the enactment of this Act, section 271 of the Truth in
    Savings Act (12 U.S.C. 4310) is repealed.

    [[Page 110 STAT. 3009-471]]

        (b) On-Premises Displays.--Section 263(c) of the Truth in Savings
    Act (12 U.S.C. 4302(c)) is amended--
                (1) by striking paragraph (2);
                (2) by striking ``(1) In general.--''; and
                (3) by redesignating subparagraphs (A) and (B) as paragraphs
            (1) and (2), respectively, and indenting appropriately.

        (c) Depository Institution Definition.--Section 274(6) of the Truth
    in Savings Act (12 U.S.C. 4313(6)) is amended by inserting before the
    period ``, but does not include any nonautomated credit union that was
    not required to comply with the requirements of this title as of the
    date of enactment of the Economic Growth and Regulatory Paperwork
    Reduction Act of 1996, pursuant to the determination of the National
    Credit Union Administration Board''.
        (d) Time Deposits.--Section 266(a)(3) of the Truth in Savings Act
    (12 U.S.C. 4305(a)(3)) is amended by inserting ``has a maturity of more
    than 30 days'' after ``deposit which''.

    SEC. 2605. <<NOTE: 15 USC 1667 note.>> CONSUMER LEASING ACT AMENDMENTS.

        (a) Congressional Findings and Declaration of Purposes.--
                (1) Findings.--The Congress finds that--
                        (A) competition among the various financial
                    institutions and other firms engaged in the business of
                    consumer leasing is greatest when there is informed use
                    of leasing;
                        (B) the informed use of leasing results from an
                    awareness of the cost of leasing by consumers; and
                        (C) there has been a continued trend toward leasing
                    automobiles and other durable goods for consumer use as
                    an alternative to installment credit sales and that
                    leasing product advances have occurred such that lessors
                    have been unable to provide consistent industry-wide
                    disclosures to fully account for the competitive
                    progress that has occurred.
                (2) Purposes.--The purposes of this section are--
                        (A) to assure a simple, meaningful disclosure of
                    leasing terms so that the consumer will be able to
                    compare more readily the various leasing terms available
                    to the consumer and avoid the uninformed use of leasing,
                    and to protect the consumer against inaccurate and
                    unfair leasing practices;
                        (B) to provide for adequate cost disclosures that
                    reflect the marketplace without impairing competition
                    and the development of new leasing products; and
                        (C) to provide the Board with the regulatory
                    authority to assure a simplified, meaningful definition
                    and disclosure of the terms of certain leases of
                    personal property for personal, family, or household
                    purposes so as to--
                              (i) enable the lessee to compare more readily
                          the various lease terms available to the lessee;
                              (ii) enable comparison of lease terms with
                          credit terms, as appropriate; and
                              (iii) assure meaningful and accurate
                          disclosures of lease terms in advertisements.

        (b) Regulations.--

    [[Page 110 STAT. 3009-472]]

                (1) In general.--Chapter 5 of the Truth in Lending Act (15
            U.S.C. 1667 et seq.) is amended by adding at the end the
            following new section:

    ``SEC. 187. <<NOTE: 15 USC 1667f.>> REGULATIONS.

        ``(a) Regulations Authorized.--
                ``(1) In general.--The Board shall prescribe regulations to
            update and clarify the requirements and definitions applicable
            to lease disclosures and contracts, and any other issues
            specifically related to consumer leasing, to the extent that the
            Board determines such action to be necessary--
                        ``(A) to carry out this chapter;
                        ``(B) to prevent any circumvention of this chapter;
                    or
                        ``(C) to facilitate compliance with the requirements
                    of the chapter.
                ``(2) Classifications, adjustments.--Any regulations
            prescribed under paragraph (1) may contain classifications and
            differentiations, and may provide for adjustments and exceptions
            for any class of transactions, as the Board considers
            appropriate.

        ``(b) Model Disclosure.--
                ``(1) Publication.--The Board shall establish and publish
            model disclosure forms to facilitate compliance with the
            disclosure requirements of this chapter and to aid the consumer
            in understanding the transaction to which the subject disclosure
            form relates.
                ``(2) Use of automated equipment.--In establishing model
            forms under this subsection, the Board shall consider the use by
            lessors of data processing or similar automated equipment.
                ``(3) Use optional.--A lessor may utilize a model disclosure
            form established by the Board under this subsection for purposes
            of compliance with this chapter, at the discretion of the
            lessor.
                ``(4) Effect of use.--Any lessor who properly uses the
            material aspects of any model disclosure form established by the
            Board under this subsection shall be deemed to be in compliance
            with the disclosure requirements to which the form relates.''.
                (2) Effective <<NOTE: 15 USC 1667f note.>> date.--
                        (A) In general.--Any regulation of the Board, or any
                    amendment or interpretation of any regulation of the
                    Board issued pursuant to section 187 of the Truth in
                    Lending Act (as added by paragraph (1) of this
                    subsection), shall become effective on the first October
                    1 that follows the date of promulgation of that
                    regulation, amendment, or interpretation by not less
                    than 6 months.
                        (B) Longer period.--The Board may, at the discretion
                    of the Board, extend the time period referred to in
                    subparagraph (A) in accordance with subparagraph (C), to
                    permit lessors to adjust their disclosure forms to
                    accommodate the requirements of section 127 of the Truth
                    in Lending Act (as added by paragraph (1) of this
                    subsection).
                        (C) Shorter period.--The Board may shorten the time
                    period referred to in subparagraph (A), if the Board
                    makes a specific finding that such action is necessary
                    to comply with the findings of a court or to prevent an
                    unfair or deceptive practice.

    [[Page 110 STAT. 3009-473]]

                        (D) Compliance before effective date.--Any lessor
                    may comply with any means of disclosure provided for in
                    section 127 of the Truth in Lending Act (as added by
                    paragraph (1) of this subsection) before the effective
                    date of such requirement.
                        (E) Definitions.--For purposes of this subsection,
                    the term ``lessor'' has the same meaning as in section
                    181 of the Truth in Lending Act.
                (3) Clerical amendment.--The table of sections for chapter 5
            of title I of the Truth in Lending Act (15 U.S.C. 1601 et seq.)
            is amended by inserting after the item relating to section 186
            the following new item:

    ``187. Regulations.''.

        (c) Consumer Lease Advertising.--Section 184 of the Truth in Lending
    Act (15 U.S.C. 1667c) is amended--
                (1) by striking subsections (a) and (c);
                (2) by redesignating subsection (b) as subsection (c); and
                (3) by inserting before subsection (c), as so redesignated,
            the following:

        ``(a) In General.--If an advertisement for a consumer lease includes
    a statement of the amount of any payment or a statement that any or no
    initial payment is required, the advertisement shall clearly and
    conspicuously state, as applicable--
                ``(1) the transaction advertised is a lease;
                ``(2) the total amount of any initial payments required on
            or before consummation of the lease or delivery of the property,
            whichever is later;
                ``(3) that a security deposit is required;
                ``(4) the number, amount, and timing of scheduled payments;
            and
                ``(5) with respect to a lease in which the liability of the
            consumer at the end of the lease term is based on the
            anticipated residual value of the property, that an extra charge
            may be imposed at the end of the lease term.

        ``(b) Advertising Medium Not Liable.--No owner or employee of any
    entity that serves as a medium in which an advertisement appears or
    through which an advertisement is disseminated, shall be liable under
    this section.''.

    SEC. 2606. <<NOTE: 12 USC 1752a note.>> STUDY OF CORPORATE CREDIT
                UNIONS.

        (a) Definitions.--For purposes of this section, the following
    definitions shall apply:
                (1) Administration.--The term ``Administration'' means the
            National Credit Union Administration.
                (2) Board.--The term ``Board'' means the National Credit
            Union Administration Board.
                (3) Corporate credit union.--The term ``corporate credit
            union'' has the meaning given such term by rule or regulation of
            the Board.
                (4) Fund.--The term ``Fund'' means the National Credit Union
            Share Insurance Fund established under section 203 of the
            Federal Credit Union Act.
                (5) Secretary.--The term ``Secretary'' means the Secretary
            of the Treasury.

        (b) Study.--

    [[Page 110 STAT. 3009-474]]

                (1) In general.--The Secretary, in consultation with the
            Board, the Corporation, the Comptroller of the Currency, and the
            Administration, shall conduct a study and evaluation of--
                        (A) the oversight and supervisory practices of the
                    Administration concerning the Fund, including the
                    treatment of amounts deposited in the Fund pursuant to
                    section 202(c) of the Federal Credit Union Act,
                    including analysis of--
                              (i) whether those amounts should be--
                                        (I) refundable; or
                                        (II) treated as expenses; and
                              (ii) the use of those amounts in determining
                          equity capital ratios;
                        (B) the potential for, and potential effects of,
                    administration of the Fund by an entity other than the
                    Administration;
                        (C) the 10 largest corporate credit unions in the
                    United States, conducted in cooperation with appropriate
                    employees of other Federal agencies with expertise in
                    the examination of federally insured financial
                    institutions, including--
                              (i) the investment practices of those credit
                          unions; and
                              (ii) the financial stability, financial
                          operations, and financial controls of those credit
                          unions;
                        (D) the regulations of the Administration; and
                        (E) the supervision of corporate credit unions by
                    the Administration.

        (c) Report.--Not later than 12 months after the date of enactment of
    this Act, the Secretary shall submit to the appropriate committees of
    the Congress, a report that includes the results of the study and
    evaluation conducted under subsection (b), together with any
    recommendations that the Secretary considers to be appropriate.

    SEC. 2607. REPORT ON THE RECONCILIATION OF DIFFERENCES BETWEEN
                REGULATORY ACCOUNTING PRINCIPLES AND GENERALLY ACCEPTED
                ACCOUNTING PRINCIPLES.

        Not later than 180 days after the date of enactment of this Act,
    each appropriate Federal banking agency shall submit to the Committee on
    Banking and Financial Services of the House of Representatives and the
    Committee on Banking, Housing, and Urban Affairs of the Senate, a report
    describing both the actions that have been taken by the agency and the
    actions that will be taken by the agency to eliminate or conform
    inconsistent or duplicative accounting and reporting requirements
    applicable to reports or statements filed with any such agency by
    insured depository institutions, as required by section 121 of the
    Federal Deposit Insurance Corporation Improvement Act of 1991.

    SEC. 2608. STATE-BY-STATE AND METROPOLITAN AREA-BY-METROPOLITAN AREA
                STUDY OF BANK FEES.

        Section 1002(b)(2)(A) of the Financial Institutions Reform,
    Recovery, and Enforcement Act of 1989 (12 U.S.C. 1811 note) is amended
    to read as follows:
                        ``(A) a description of any discernible trend, in the
                    Nation as a whole, in each of the 50 States, and in each
                    consolidated metropolitan statistical area or primary
                    metropolitan statistical area (as defined by the
                    Director of the

    [[Page 110 STAT. 3009-475]]

                    Office of Management and Budget), in the cost and
                    availability of retail banking services (including fees
                    imposed for providing such services), that delineates
                    differences between insured depository institutions on
                    the basis of both the size of the institution and any
                    engagement of the institution in multistate activity;
                    and''.

    SEC. 2609. PROSPECTIVE APPLICATION OF GOLD CLAUSES IN CONTRACTS.

        Section 5118(d)(2) of title 31, United States Code, is amended by
    adding at the end the following: ``This paragraph shall apply to any
    obligation issued on or before October 27, 1977, notwithstanding any
    assignment or novation of such obligation after October 27, 1977, unless
    all parties to the assignment or novation specifically agree to include
    a gold clause in the new agreement. Nothing in the preceding sentence
    shall be construed to affect the enforceability of a Gold Clause
    contained in any obligation issued after October 27, 1977 if the
    enforceability of that Gold Clause has been finally adjudicated before
    the date of enactment of the Economic Growth and Regulatory Paperwork
    Reduction Act of 1996.''.

    SEC. 2610. QUALIFIED FAMILY PARTNERSHIPS.

        Section 2 of the Bank Holding Company Act of 1956 (12 U.S.C. 1841)
    is amended--
                (1) in subsection (b), by inserting ``, and shall not
            include a qualified family partnership'' after ``by any State'';
            and
                (2) in subsection (o), by adding at the end the following:
                ``(10) Qualified family partnership.--The term `qualified
            family partnership' means a general or limited partnership that
            the Board determines--
                        ``(A) does not directly control any bank, except
                    through a registered bank holding company;
                        ``(B) does not control more than 1 registered bank
                    holding company;
                        ``(C) does not engage in any business activity,
                    except indirectly through ownership of other business
                    entities;
                        ``(D) has no investments other than those permitted
                    for a bank holding company pursuant to section 4(c);
                        ``(E) is not obligated on any debt, either directly
                    or as a guarantor;
                        ``(F) has partners, all of whom are either--
                              ``(i) individuals related to each other by
                          blood, marriage (including former marriage), or
                          adoption; or
                              ``(ii) trusts for the primary benefit of
                          individuals related as described in clause (i);
                          and
                        ``(G) has filed with the Board a statement that
                    includes--
                              ``(i) the basis for the eligibility of the
                          partnership under subparagraph (F);
                              ``(ii) a list of the existing activities and
                          investments of the partnership;
                              ``(iii) a commitment to comply with this
                          paragraph;
                              ``(iv) a commitment to comply with section 7
                          of the Federal Deposit Insurance Act with respect
                          to any acquisition of control of an insured
                          depository institution occurring after date of
                          enactment of this paragraph; and

    [[Page 110 STAT. 3009-476]]

                              ``(v) a commitment to be subject, to the same
                          extent as if the qualified family partnership were
                          a bank holding company--
                                        ``(I) to examination by the Board to
                                    assure compliance with this paragraph;
                                    and
                                        ``(II) to section 8 of the Federal
                                    Deposit Insurance Act.''.

    SEC. 2611. COOPERATIVE EFFORTS BETWEEN DEPOSITORY INSTITUTIONS AND
                FARMERS AND RANCHERS IN DROUGHT-STRICKEN AREAS.

        (a) Findings.--The Congress hereby finds the following:
                (1) Severe drought is being experienced in the Plains and
            the Southwest portions of our country.
                (2) Soil erosion is becoming a critical issue as the dry
            season approaches and summer winds may rob these fields of
            nutrient-rich topsoil.
                (3) Without immediate assistance, ranchers and farmers would
            be forced to cull their herds bringing tremendous volatility in
            the beef market.
                (4) The American people will feel the impact of this drought
            in their pocketbooks through higher prices for grain products.
                (5) The communities in drought-stricken areas are suffering
            and borrowers may have difficulty meeting their obligations to
            financial institutions.
                (6) Congress has already passed the Depository Institutions
            Disaster Relief Act of 1992 which allows financial institutions
            to make emergency exceptions to the appraisal requirement in
            times of national disasters.

        (b) Sense of the Congress.--It is the sense of the Congress that
    financial institutions and Federal bank regulators should work
    cooperatively with farmers and ranchers in communities affected by
    drought conditions to allow financial obligations to be met without
    imposing undue burdens.

    SEC. 2612. STREAMLINING PROCESS FOR DETERMINING NEW NONBANKING
                ACTIVITIES.

        Section 4(c)(8) of the Bank Holding Company Act of 1956 (12 U.S.C.
    1843(c)(8)) is amended by striking ``and opportunity for hearing'' and
    inserting the following: ``(and opportunity for hearing in the case of
    an acquisition of a savings association)''.

    SEC. 2613. AUTHORIZING BANK SERVICE COMPANIES TO ORGANIZE AS LIMITED
                LIABILITY COMPANIES.

        (a) Amendment to Short Title.--Section 1 of the Bank Service
    Corporation Act (12 U.S.C. 1861(a)) is amended by striking subsection
    (a) and inserting the following new subsection:
        ``(a) Short Title.--This Act may be cited as the `Bank Service
    Company Act'.'';
        (b) Amendments to Definitions.--Section 1(b) of the Bank Service
    Corporation Act (12 U.S.C. 1861(b)) is amended--
                (1) by striking paragraph (2) and inserting the following
            new paragraph:
                ``(2) the term `bank service company' means--
                        ``(A) any corporation--
                              ``(i) which is organized to perform services
                          authorized by this Act; and

    [[Page 110 STAT. 3009-477]]

                              ``(ii) all of the capital stock of which is
                          owned by 1 or more insured banks; and
                        ``(B) any limited liability company--
                              ``(i) which is organized to perform services
                          authorized by this Act; and
                              ``(ii) all of the members of which are 1 or
                          more insured banks.'';
                (2) in paragraph (6)--
                        (A) by striking ``corporation'' and inserting
                    ``company''; and
                        (B) by striking ``and'' after the semicolon;
                (3) by redesignating paragraph (7) as paragraph (8) and
            inserting after paragraph (6) the following new paragraph:
                ``(7) the term `limited liability company' means any
            company, partnership, trust, or similar business entity
            organized under the law of a State (as defined in section 3 of
            the Federal Deposit Insurance Act) which provides that a member
            or manager of such company is not personally liable for a debt,
            obligation, or liability of the company solely by reason of
            being, or acting as, a member or manager of such company; and'';
            and
                (4) in paragraph (8) (as so redesignated)--
                        (A) by striking ``corporation'' each place such term
                    appears and inserting ``company''; and
                        (B) by striking ``capital stock'' and inserting
                    ``equity''.

        (c) Amendments to Section 2.--Section 2 of the Bank Service
    Corporation Act (12 U.S.C. 1862) is amended--
                (1) by striking ``corporation'' and inserting ``company'';
                (2) by striking ``corporations'' and inserting
            ``companies''; and
                (3) in the heading for such section, by striking
            ``corporation'' and inserting ``company''.

        (d) Amendments to Section 3.--Section 3 of the Bank Service
    Corporation Act (12 U.S.C. 1863) is amended--
                (1) by striking ``corporation'' each place such term appears
            and inserting ``company''; and
                (2) in the heading for such section, by striking
            ``corporation'' and inserting ``company''.

        (e) Amendments to Section 4.--Section 4 of the Bank Service
    Corporation Act (12 U.S.C. 1864) is amended--
                (1) by striking ``corporation'' each place such term appears
            and inserting ``company'';
                (2) in subsection (b), by inserting ``or members'' after
            ``shareholders'' each place such term appears;
                (3) in subsections (c) and (d), by inserting ``or member''
            after ``shareholder'' each place such term appears;
                (4) in subsection (e)--
                        (A) by inserting ``or members'' after ``national
                    bank and State bank shareholders'';
                        (B) by striking ``its national bank shareholder or
                    shareholders'' and inserting ``any shareholder or member
                    of the company which is a national bank'';
                        (C) by striking ``its State bank shareholder or
                    shareholders'' and inserting ``any shareholder or member
                    of the company which is a State bank'';
                        (D) by striking ``such State bank or banks'' and
                    inserting ``any such State bank''; and

    [[Page 110 STAT. 3009-478]]

                        (E) by inserting ``or members'' after ``State bank
                    and national bank shareholders''; and
                (5) in the heading for such section, by striking
            ``corporation'' and inserting ``company''.

        (f) Amendments to Section 5.--Section 5 of the Bank Service
    Corporation Act (12 U.S.C. 1865) is amended--
                (1) by striking ``corporation'' each place such term appears
            and inserting ``company''; and
                (2) in the heading for such section, by striking
            ``corporations'' and inserting ``companies''.

        (g) Amendments to Section 6.--Section 6 of the Bank Service
    Corporation Act (12 U.S.C. 1866) is amended--
                (1) by striking ``corporation'' each place such term appears
            and inserting ``company'';
                (2) by inserting ``or is not a member of'' after ``does not
            own stock in'';
                (3) by striking ``the nonstockholding institution'' and
            inserting ``such depository institution'';
                (4) by inserting ``or is a member of'' after ``that owns
            stock in'';
                (5) in paragraphs (1) and (2), by inserting ``or nonmember''
            after ``nonstockholding''; and
                (6) in the heading for such section by inserting ``or
            nonmembers'' after ``nonstockholders''.

        (h) Amendments to Section 7.--Section 7 of the Bank Service
    Corporation Act (12 U.S.C. 1867) is amended--
                (1) by striking ``corporation'' each place such term appears
            and inserting ``company'';
                (2) in subsection (a)--
                        (A) by inserting ``or principal member'' after
                    ``principal shareholder''; and
                        (B) by inserting ``or member'' after ``other
                    shareholder''; and
                (3) in the heading for such section, by striking
            ``corporations'' and inserting ``companies''.

    SEC. 2614. RETIREMENT CERTIFICATES OF DEPOSITS.

        (a) In General.--Section 3(l)(5) of the Federal Deposit Insurance
    Act (12 U.S.C. 1813(l)(5) is amended--
                (1) in subparagraph (A), by striking ``and'' at the end;
                (2) in subparagraph (B), by striking the period at the end
            and inserting ``; and''; and
                (3) by adding at the end the following new subparagraph:
                        ``(C) any liability of an insured depository
                    institution that arises under an annuity contract, the
                    income of which is tax deferred under section 72 of the
                    Internal Revenue Code of 1986.''.

        (b) Effective <<NOTE: 12 USC 1813 note.>> Date.--The amendments made
    by subsection (a) shall apply to any liability of an insured depository
    that arises under an annuity contract issued on or after the date of
    enactment of this Act.

    SEC. 2615. PROHIBITIONS ON CERTAIN DEPOSITORY INSTITUTION ASSOCIATIONS
                WITH GOVERNMENT-SPONSORED ENTERPRISES.

        (a) Credit Unions.--Section 201 of the Federal Credit Union Act (12
    U.S.C. 1781) is amended by adding at the end the following new
    subsection:

    [[Page 110 STAT. 3009-479]]

        ``(e) Prohibition on Certain Associations.--
                ``(1) In general.--No insured credit union may be sponsored
            by or accept financial support, directly or indirectly, from any
            Government-sponsored enterprise, if the credit union includes
            the customers of the Government-sponsored enterprise in the
            field of membership of the credit union.
                ``(2) Routine business financing.--Paragraph (1) shall not
            apply with respect to advances or other forms of financial
            assistance generally provided by a Government-sponsored
            enterprise in the ordinary course of business of the enterprise.
                ``(3) Government-sponsored enterprise defined.--For purposes
            of this subsection, the term `Government-sponsored enterprise'
            has the meaning given to such term in section 1404(e)(1)(A) of
            the Financial Institutions Reform, Recovery, and Enforcement Act
            of 1989.
                ``(4) Employee credit union.--No provision of this
            subsection shall be construed as prohibiting any employee of a
            Government-sponsored enterprise from becoming a member of a
            credit union whose field of membership is the employees of such
            enterprise.''.

        (b) Banks and Savings Associations.--Section 18 of the Federal
    Deposit Insurance Act (12 U.S.C. 1828) is amended by adding at the end
    the following new subsection:
        ``(s) Prohibition on Certain Affiliations.--
                ``(1) In general.--No depository institution may be an
            affiliate of, be sponsored by, or accept financial support,
            directly or indirectly, from any Government-sponsored
            enterprise.
                ``(2) Exception for members of a federal home loan bank.--
            Paragraph (1) shall not apply with respect to the membership of
            a depository institution in a Federal home loan bank.
                ``(3) Routine business financing.--Paragraph (1) shall not
            apply with respect to advances or other forms of financial
            assistance provided by a Government-sponsored enterprise
            pursuant to the statutes governing such enterprise.
                ``(4) Government-sponsored enterprise defined.--For purposes
            of this subsection, the term `Government-sponsored enterprise'
            has the meaning given to such term in section 1404(e)(1)(A) of
            the Financial Institutions Reform, Recovery, and Enforcement Act
            of 1989.''.

        (c) Effective <<NOTE: 12 USC 1781 note.>> Date.--The amendments made
    by this section shall apply on and after January 1, 1996.

       Subtitle <<NOTE: Deposit Insurance Funds Act of 1996.>> G--Deposit
    Insurance Funds

    SEC. 2701. <<NOTE: 12 USC 1811 note.>> SHORT TITLE.

        This subtitle may be cited as the ``Deposit Insurance Funds Act of
    1996''.

    SEC. 2702. <<NOTE: 12 USC 1817 note.>> SPECIAL ASSESSMENT TO CAPITALIZE
                SAIF.

        (a) In General.--Except as provided in subsection (f), the Board of
    Directors of the Federal Deposit Insurance Corporation shall impose a
    special assessment on the SAIF-assessable deposits of each insured
    depository institution in accordance with assessment regulations of the
    Corporation at a rate applicable to all such

    [[Page 110 STAT. 3009-480]]

    institutions that the Board of Directors, in its sole discretion,
    determines (after taking into account the adjustments described in
    subsections (g), (h), and (j)) will cause the Savings Association
    Insurance Fund to achieve the designated reserve ratio on the first
    business day of the 1st month beginning after the date of the enactment
    of this Act.
        (b) Factors To Be Considered.--In carrying out subsection (a), the
    Board of Directors shall base its determination on--
                (1) the monthly Savings Association Insurance Fund balance
            most recently calculated;
                (2) data on insured deposits reported in the most recent
            reports of condition filed not later than 70 days before the
            date of enactment of this Act by insured depository
            institutions; and
                (3) any other factors that the Board of Directors deems
            appropriate.

        (c) Date of Determination.--For purposes of subsection (a), the
    amount of the SAIF-assessable deposits of an insured depository
    institution shall be determined as of March 31, 1995.
        (d) Date Payment Due.--Except as provided in subsection (g), the
    special assessment imposed under this section shall be--
                (1) due on the first business day of the 1st month beginning
            after the date of the enactment of this Act; and
                (2) paid to the Corporation on the later of--
                        (A) the first business day of the 1st month
                    beginning after such date of enactment; or
                        (B) such other date as the Corporation shall
                    prescribe, but not later than 60 days after the date of
                    enactment of this Act.

        (e) Assessment Deposited in SAIF.--Notwithstanding any other
    provision of law, the proceeds of the special assessment imposed under
    this section shall be deposited in the Savings Association Insurance
    Fund.
        (f) Exemptions for Certain Institutions.--
                (1) Exemption for weak institutions.--The Board of Directors
            may, by order, in its sole discretion, exempt any insured
            depository institution that the Board of Directors determines to
            be weak, from paying the special assessment imposed under this
            section if the Board of Directors determines that the exemption
            would reduce risk to the Savings Association Insurance Fund.
                (2) Guidelines required.--Not later than 30 days after the
            date of enactment of this Act, the Board of Directors shall
            prescribe guidelines setting forth the criteria that the Board
            of Directors will use in exempting institutions under paragraph
            (1). Such guidelines shall be published in the Federal Register.
                (3) Exemption for certain newly chartered and other defined
            institutions.--
                        (A) In general.--In addition to the institutions
                    exempted from paying the special assessment under
                    paragraph (1), the Board of Directors shall exempt any
                    insured depository institution from payment of the
                    special assessment if the institution--
                              (i) was in existence on October 1, 1995, and
                          held no SAIF-assessable deposits before January 1,
                          1993;
                              (ii) is a Federal savings bank which--

    [[Page 110 STAT. 3009-481]]

                                        (I) was established de novo in April
                                    1994 in order to acquire the deposits of
                                    a savings association which was in
                                    default or in danger of default; and
                                        (II) received minority interim
                                    capital assistance from the Resolution
                                    Trust Corporation under section 21A(w)
                                    of the Federal Home Loan Bank Act in
                                    connection with the acquisition of any
                                    such savings association; or
                              (iii) is a savings association, the deposits
                          of which are insured by the Savings Association
                          Insurance Fund, which--
                                        (I) before January 1, 1987, was
                                    chartered as a Federal savings bank
                                    insured by the Federal Savings and Loan
                                    Insurance Corporation for the purpose of
                                    acquiring all or substantially all of
                                    the assets and assuming all or
                                    substantially all of the deposit
                                    liabilities of a national bank in a
                                    transaction consummated after July 1,
                                    1986; and
                                        (II) as of the date of that
                                    transaction, had assets of less than
                                    $150,000,000.
                        (B) Definition.--For purposes of this paragraph, an
                    institution shall be deemed to have held SAIF-assessable
                    deposits before January 1, 1993, if--
                              (i) it directly held SAIF-assessable deposits
                          before that date; or
                              (ii) it succeeded to, acquired, purchased, or
                          otherwise holds any SAIF-assessable deposits as of
                          the date of enactment of this Act that were SAIF-
                          assessable deposits before January 1, 1993.
                (4) Exempt institutions required to pay assessments at
            former rates.--
                        (A) Payments to saif and dif.--Any insured
                    depository institution that the Board of Directors
                    exempts under this subsection from paying the special
                    assessment imposed under this section shall pay
                    semiannual assessments--
                              (i) during calendar years 1996, 1997, and
                          1998, into the Savings Association Insurance Fund,
                          based on SAIF-assessable deposits of that
                          institution, at assessment rates calculated under
                          the schedule in effect for Savings Association
                          Insurance Fund members on June 30, 1995; and
                              (ii) during calendar year 1999--
                                        (I) into the Deposit Insurance Fund,
                                    based on SAIF-assessable deposits of
                                    that institution as of December 31,
                                    1998, at assessment rates calculated
                                    under the schedule in effect for Savings
                                    Association Insurance Fund members on
                                    June 30, 1995; or
                                        (II) in accordance with clause (i),
                                    if the Bank Insurance Fund and the
                                    Savings Association Insurance Fund are
                                    not merged into the Deposit Insurance
                                    Fund.
                        (B) Optional pro rata payment of special
                    assessment.--This paragraph shall not apply with respect
                    to any insured depository institution (or successor
                    insured depository institution) that has paid, during
                    any calendar

    [[Page 110 STAT. 3009-482]]

                    year from 1997 through 1999, upon such terms as the
                    Corporation may announce, an amount equal to the product
                    of--
                              (i) 16.7 percent of the special assessment
                          that the institution would have been required to
                          pay under subsection (a), if the Board of
                          Directors had not exempted the institution; and
                              (ii) the number of full semiannual periods
                          remaining between the date of the payment and
                          December 31, 1999.

        (g) Special Election for Certain Institutions Facing Hardship as a
    Result of the Special Assessment.--
                (1) Election authorized.--If--
                        (A) an insured depository institution, or any
                    depository institution holding company which, directly
                    or indirectly, controls such institution, is subject to
                    terms or covenants in any debt obligation or preferred
                    stock outstanding on September 13, 1995; and
                        (B) the payment of the special assessment under
                    subsection (a) would pose a significant risk of causing
                    such depository institution or holding company to
                    default or violate any such term or covenant,
            the depository institution may elect, with the approval of the
            Corporation, to pay such special assessment in accordance with
            paragraphs (2) and (3) in lieu of paying such assessment in the
            manner required under subsection (a).
                (2) 1st assessment.--An insured depository institution which
            makes an election under paragraph (1) shall pay an assessment in
            an amount equal to 50 percent of the amount of the special
            assessment that would otherwise apply under subsection (a), by
            the date on which such special assessment is payable under
            subsection (d).
                (3) 2d assessment.--An insured depository institution which
            makes an election under paragraph (1) shall pay a 2d assessment,
            by the date established by the Board of Directors in accordance
            with paragraph (4), in an amount equal to the product of 51
            percent of the rate determined by the Board of Directors under
            subsection (a) for determining the amount of the special
            assessment and the SAIF-assessable deposits of the institution
            on March 31, 1996, or such other date in calendar year 1996 as
            the Board of Directors determines to be appropriate.
                (4) Due date of 2d assessment.--The date established by the
            Board of Directors for the payment of the assessment under
            paragraph (3) by a depository institution shall be the earliest
            practicable date which the Board of Directors determines to be
            appropriate, which is at least 15 days after the date used by
            the Board of Directors under paragraph (3).
                (5) Supplemental special assessment.--An insured depository
            institution which makes an election under paragraph (1) shall
            pay a supplemental special assessment, at the same time the
            payment under paragraph (3) is made, in an amount equal to the
            product of--
                        (A) 50 percent of the rate determined by the Board
                    of Directors under subsection (a) for determining the
                    amount of the special assessment; and

    [[Page 110 STAT. 3009-483]]

                        (B) 95 percent of the amount by which the SAIF-
                    assessable deposits used by the Board of Directors for
                    determining the amount of the 1st assessment under
                    paragraph (2) exceeds, if any, the SAIF-assessable
                    deposits used by the Board for determining the amount of
                    the 2d assessment under paragraph (3).

        (h) Adjustment of Special Assessment for Certain Bank Insurance Fund
    Member Banks.--
                (1) In general.--For purposes of computing the special
            assessment imposed under this section with respect to a Bank
            Insurance Fund member bank, the amount of any deposits of any
            insured depository institution which section 5(d)(3) of the
            Federal Deposit Insurance Act treats as insured by the Savings
            Association Insurance Fund shall be reduced by 20 percent--
                        (A) if the adjusted attributable deposit amount of
                    the Bank Insurance Fund member bank is less than 50
                    percent of the total domestic deposits of that member
                    bank as of June 30, 1995; or
                        (B) if, as of June 30, 1995, the Bank Insurance Fund
                    member--
                              (i) had an adjusted attributable deposit
                          amount equal to less than 75 percent of the total
                          assessable deposits of that member bank;
                              (ii) had total assessable deposits greater
                          than $5,000,000,000; and
                              (iii) was owned or controlled by a bank
                          holding company that owned or controlled insured
                          depository institutions having an aggregate amount
                          of deposits insured or treated as insured by the
                          Bank Insurance Fund greater than the aggregate
                          amount of deposits insured or treated as insured
                          by the Savings Association Insurance Fund.
                (2) Adjusted attributable deposit amount.--For purposes of
            this subsection, the ``adjusted attributable deposit amount''
            shall be determined in accordance with section 5(d)(3)(C) of the
            Federal Deposit Insurance Act.

        (i) Adjustment to the Adjusted Attributable Deposit Amount for
    Certain Bank Insurance Fund Member Banks.--Section 5(d)(3) of the
    Federal Deposit Insurance Act (12 U.S.C. 1815(d)(3)) is amended--
                (1) in subparagraph (C), by striking ``The adjusted
            attributable deposit amount'' and inserting ``Except as provided
            in subparagraph (K), the adjusted attributable deposit amount'';
            and
                (2) by adding at the end the following new subparagraph:
                        ``(K) Adjustment of adjusted attributable deposit
                    amount.--The amount determined under subparagraph (C)(i)
                    for deposits acquired by March 31, 1995, shall be
                    reduced by 20 percent for purposes of computing the
                    adjusted attributable deposit amount for the payment of
                    any assessment for any semiannual period that begins
                    after the date of the enactment of the Deposit Insurance
                    Funds Act of 1996 (other than the special assessment
                    imposed under section 2702(a) of such Act), for a Bank
                    Insurance Fund member bank that, as of June 30, 1995--

    [[Page 110 STAT. 3009-484]]

                              ``(i) had an adjusted attributable deposit
                          amount that was less than 50 percent of the total
                          deposits of that member bank; or
                              ``(ii)(I) had an adjusted attributable deposit
                          amount equal to less than 75 percent of the total
                          assessable deposits of that member bank;
                              ``(II) had total assessable deposits greater
                          than $5,000,000,000; and
                              ``(III) was owned or controlled by a bank
                          holding company that owned or controlled insured
                          depository institutions having an aggregate amount
                          of deposits insured or treated as insured by the
                          Bank Insurance Fund greater than the aggregate
                          amount of deposits insured or treated as insured
                          by the Savings Association Insurance Fund.''.

        (j) Adjustment of Special Assessment for Certain Savings
    Associations.--
                (1) Special assessment reduction.--For purposes of computing
            the special assessment imposed under this section, in the case
            of any converted association, the amount of any deposits of such
            association which were insured by the Savings Association
            Insurance Fund as of March 31, 1995, shall be reduced by 20
            percent.
                (2) Converted association.--For purposes of this subsection,
            the term ``converted association'' means--
                        (A) any Federal savings association--
                              (i) that is a member of the Savings
                          Association Insurance Fund and that has deposits
                          subject to assessment by that fund which did not
                          exceed $4,000,000,000, as of March 31, 1995; and
                              (ii) that had been, or is a successor by
                          merger, acquisition, or otherwise to an
                          institution that had been, a State savings bank,
                          the deposits of which were insured by the Federal
                          Deposit Insurance Corporation before August 9,
                          1989, that converted to a Federal savings
                          association pursuant to section 5(i) of the Home
                          Owners' Loan Act before January 1, 1985;
                        (B) a State depository institution that is a member
                    of the Savings Association Insurance Fund that had been
                    a State savings bank before October 15, 1982, and was a
                    Federal savings association on August 9, 1989;
                        (C) an insured bank that--
                              (i) was established de novo in order to
                          acquire the deposits of a savings association in
                          default or in danger of default;
                              (ii) did not open for business before
                          acquiring the deposits of such savings
                          association; and
                              (iii) was a Savings Association Insurance Fund
                          member before the date of enactment of this Act;
                          and
                        (D) an insured bank that--
                              (i) resulted from a savings association before
                          December 19, 1991, in accordance with section
                          5(d)(2)(G) of the Federal Deposit Insurance Act;
                          and
                              (ii) had an increase in its capital in
                          conjunction with the conversion in an amount equal
                          to more than 75 percent of the capital of the
                          institution on the day before the date of the
                          conversion.

    [[Page 110 STAT. 3009-485]]

    SEC. 2703. FINANCING CORPORATION FUNDING.

        (a) In General.--Section 21 of the Federal Home Loan Bank Act (12
    U.S.C. 1441) is amended--
                (1) in subsection (f)(2)--
                        (A) in the matter immediately preceding subparagraph
                    (A)--
                              (i) by striking ``To the extent the amounts
                          available pursuant to paragraph (1) are
                          insufficient to cover the amount of interest
                          payments, issuance costs, and custodial fees,''
                          and inserting ``In addition to the amounts
                          obtained pursuant to paragraph (1),'';
                              (ii) by striking ``Savings Association
                          Insurance Fund member'' and inserting ``insured
                          depository institution''; and
                              (iii) by striking ``members'' and inserting
                          ``institutions''; and
                        (B) by striking ``, except that--'' and all that
                    follows through the end of the paragraph and inserting
                    ``, except that--
                        ``(A) the assessments imposed on insured depository
                    institutions with respect to any BIF-assessable deposit
                    shall be assessed at a rate equal to \1/5\ of the rate
                    of the assessments imposed on insured depository
                    institutions with respect to any SAIF-assessable
                    deposit; and
                        ``(B) no limitation under clause (i) or (iii) of
                    section 7(b)(2)(A) of the Federal Deposit Insurance Act
                    shall apply for purposes of this paragraph.''; and
                (2) in subsection (k)--
                        (A) by striking ``section--'' and inserting
                    ``section, the following definitions shall apply:'';
                        (B) by striking paragraph (1);
                        (C) by redesignating paragraphs (2) and (3) as
                    paragraphs (1) and (2), respectively; and
                        (D) by adding at the end the following new
                    paragraphs:
                ``(3) Insured depository institution.--The term `insured
            depository institution' has the same meaning as in section 3 of
            the Federal Deposit Insurance Act
                ``(4) Deposit terms.--
                        ``(A) BIF-assessable deposits.--The term `BIF-
                    assessable deposit' means a deposit that is subject to
                    assessment for purposes of the Bank Insurance Fund under
                    the Federal Deposit Insurance Act (including a deposit
                    that is treated as a deposit insured by the Bank
                    Insurance Fund under section 5(d)(3) of the Federal
                    Deposit Insurance Act).
                        ``(B) SAIF-assessable deposit.--The term `SAIF-
                    assessable deposit' has the meaning given to such term
                    in section 2710 of the Deposit Insurance Funds Act of
                    1996.''.

        (b) Conforming Amendment.--Section 7(b)(2) of the Federal Deposit
    Insurance Act (12 U.S.C. 1817(b)(2)) is amended by striking subparagraph
    (D).
        (c) Effective <<NOTE: 12 USC 1441 note.>> Date.--
                (1) In general.--Subsections (a) and (c) and the amendments
            made by such subsections shall apply with respect to semiannual
            periods which begin after December 31, 1996.
                (2) Termination of certain assessment rates.--Subparagraph
            (A) of section 21(f)(2) of the Federal Home Loan

    [[Page 110 STAT. 3009-486]]

            Bank Act (as amended by subsection (a)) shall not apply after
            the earlier of--
                        (A) December 31, 1999; or
                        (B) the date as of which the last savings
                    association ceases to exist.

        (d) Prohibition <<NOTE: 12 USC 1441 note.>> on Deposit Shifting.--
                (1) In general.--Effective as of the date of the enactment
            of this Act and ending on the date provided in subsection (c)(2)
            of this section, the Comptroller of the Currency, the Board of
            Directors of the Federal Deposit Insurance Corporation, the
            Board of Governors of the Federal Reserve System, and the
            Director of the Office of Thrift Supervision shall take
            appropriate actions, including enforcement actions, denial of
            applications, or imposition of entrance and exit fees as if such
            transactions qualified as conversion transactions pursuant to
            section 5(d) of the Federal Deposit Insurance Act, to prevent
            insured depository institutions and depository institution
            holding companies from facilitating or encouraging the shifting
            of deposits from SAIF-assessable deposits to BIF-assessable
            deposits (as defined in section 21(k) of the Federal Home Loan
            Bank Act) for the purpose of evading the assessments imposed on
            insured depository institutions with respect to SAIF-assessable
            deposits under section 7(b) of the Federal Deposit Insurance Act
            and section 21(f)(2) of the Federal Home Loan Bank Act.
                (2) Regulations.--The Board of Directors of the Federal
            Deposit Insurance Corporation may issue regulations, including
            regulations defining terms used in paragraph (1), to prevent the
            shifting of deposits described in such paragraph.
                (3) Rule of construction.--No provision of this subsection
            shall be construed as prohibiting conduct or activity of any
            insured depository institution which--
                        (A) is undertaken in the ordinary course of business
                    of such depository institution; and
                        (B) is not directed towards the depositors of an
                    insured depository institution affiliate (as defined in
                    section 2(k) of the Bank Holding Company Act of 1956) of
                    such depository institution.

    SEC. 2704. MERGER OF BIF AND SAIF.

        (a) In <<NOTE: 12 USC 1821 note.>> General.--
                (1) Merger.--The Bank Insurance Fund and the Savings
            Association Insurance Fund shall be merged into the Deposit
            Insurance Fund established by section 11(a)(4) of the Federal
            Deposit Insurance Act, as amended by this section.
                (2) Disposition of assets and liabilities.--All assets and
            liabilities of the Bank Insurance Fund and the Savings
            Association Insurance Fund shall be transferred to the Deposit
            Insurance Fund.
                (3) No separate existence.--The separate existence of the
            Bank Insurance Fund and the Savings Association Insurance Fund
            shall cease.

        (b) Special <<NOTE: 12 USC 1821 note.>> Reserve of the Deposit
    Insurance Fund.--
                (1) In general.--Immediately before the merger of the Bank
            Insurance Fund and the Savings Association Insurance Fund, if
            the reserve ratio of the Savings Association Insurance Fund
            exceeds the designated reserve ratio, the amount by which

    [[Page 110 STAT. 3009-487]]

            that reserve ratio exceeds the designated reserve ratio shall be
            placed in the Special Reserve of the Deposit Insurance Fund,
            established under section 11(a)(5) of the Federal Deposit
            Insurance Act, as amended by this section.
                (2) Definition.--For purposes of this subsection, the term
            ``reserve ratio'' means the ratio of the net worth of the
            Savings Association Insurance Fund to the aggregate estimated
            amount of deposits insured by the Savings Association Insurance
            Fund.

        (c) Effective <<NOTE: 12 USC 1821 note.>> Date.--This section and
    the amendments made by this section shall become effective on January 1,
    1999, if no insured depository institution is a savings association on
    that date.

        (d) Technical and Conforming Amendments.--
                (1) Deposit insurance fund.--Section 11(a)(4) of the Federal
            Deposit Insurance Act (12 U.S.C. 1821(a)(4)) is amended--
                        (A) by redesignating subparagraph (B) as
                    subparagraph (C);
                        (B) by striking subparagraph (A) and inserting the
                    following:
                        ``(A) Establishment.--There is established the
                    Deposit Insurance Fund, which the Corporation shall--
                              ``(i) maintain and administer;
                              ``(ii) use to carry out its insurance purposes
                          in the manner provided by this subsection; and
                              ``(iii) invest in accordance with section
                          13(a).
                        ``(B) Uses.--The Deposit Insurance Fund shall be
                    available to the Corporation for use with respect to
                    Deposit Insurance Fund members.''; and
                        (C) by striking ``(4) General provisions relating to
                    funds.--'' and inserting the following:
                ``(4)  Establishment  of  the  deposit  insurance  fund.--
            ''.
                (2) Other references.--Section 11(a)(4)(C) of the Federal
            Deposit Insurance Act (12 U.S.C. 1821(a)(4)(C), as redesignated
            by paragraph (1) of this subsection) is amended by striking
            ``Bank Insurance Fund and the Savings Association Insurance
            Fund'' and inserting ``Deposit Insurance Fund''.
                (3) Deposits into fund.--Section 11(a)(4) of the Federal
            Deposit Insurance Act (12 U.S.C. 1821(a)(4)) is amended by
            adding at the end the following new subparagraph:
                        ``(D) Deposits.--All amounts assessed against
                    insured depository institutions by the Corporation shall
                    be deposited in the Deposit Insurance Fund.''.
                (4) Special reserve of deposits.--Section 11(a)(5) of the
            Federal Deposit Insurance Act (12 U.S.C. 1821(a)(5)) is amended
            to read as follows:
                ``(5) Special reserve of deposit insurance fund.--
                        ``(A) Establishment.--
                              ``(i) In general.--There is established a
                          Special Reserve of the Deposit Insurance Fund,
                          which shall be administered by the Corporation and
                          shall be invested in accordance with section
                          13(a).
                              ``(ii) Limitation.--The Corporation shall not
                          provide any assessment credit, refund, or other
                          payment from any amount in the Special Reserve.
                        ``(B) Emergency use of special reserve.--
                    Notwithstanding subparagraph (A)(ii), the Corporation
                    may, in its sole discretion, transfer amounts from the
                    Special Reserve

    [[Page 110 STAT. 3009-488]]

                    to the Deposit Insurance Fund, for the purposes set
                    forth in paragraph (4), only if--
                              ``(i) the reserve ratio of the Deposit
                          Insurance Fund is less than 50 percent of the
                          designated reserve ratio; and
                              ``(ii) the Corporation expects the reserve
                          ratio of the Deposit Insurance Fund to remain at
                          less than 50 percent of the designated reserve
                          ratio for each of the next 4 calendar quarters.
                        ``(C) Exclusion of special reserve in calculating
                    reserve ratio.--Notwithstanding any other provision of
                    law, any amounts in the Special Reserve shall be
                    excluded in calculating the reserve ratio of the Deposit
                    Insurance Fund under section 7.''.
                (5) Federal home loan bank act.--Section 21B(f)(2)(C)(ii) of
            the Federal Home Loan Bank Act (12 U.S.C. 1441b(f)(2)(C)(ii)) is
            amended--
                        (A) in subclause (I), by striking ``to Savings
                    Associations Insurance Fund members'' and inserting ``to
                    insured depository institutions, and their successors,
                    which were Savings Association Insurance Fund members on
                    September 1, 1995''; and
                        (B) in subclause (II), by striking ``to Savings
                    Associations Insurance Fund members'' and inserting ``to
                    insured depository institutions, and their successors,
                    which were Savings Association Insurance Fund members on
                    September 1, 1995''.
                (6) Repeals.--
                        (A) Section 3.--Section 3(y) of the Federal Deposit
                    Insurance Act (12 U.S.C. 1813(y)) is amended to read as
                    follows:

        ``(y) Definitions Relating to the Deposit Insurance Fund.--
                ``(1) Deposit insurance fund.--The term `Deposit Insurance
            Fund' means the fund established under section 11(a)(4).
                ``(2) Reserve ratio.--The term `reserve ratio' means the
            ratio of the net worth of the Deposit Insurance Fund to
            aggregate estimated insured deposits held in all insured
            depository institutions.
                ``(3) Designated reserve ratio.--The designated reserve
            ratio of the Deposit Insurance Fund for each year shall be--
                        ``(A) 1.25 percent of estimated insured deposits; or
                        ``(B) a higher percentage of estimated insured
                    deposits that the Board of Directors determines to be
                    justified for that year by circumstances raising a
                    significant risk of substantial future losses to the
                    fund.''
                        (B) Section 7.--Section 7 of the Federal Deposit
                    Insurance Act (12 U.S.C. 1817) is amended--
                              (i) by striking subsection (l);
                              (ii) by redesignating subsections (m) and (n)
                          as subsections (l) and (m), respectively;
                              (iii) in subsection (b)(2), by striking
                          subparagraphs (B) and (F), and by redesignating
                          subparagraphs (C), (E), (G), and (H) as
                          subparagraphs (B) through (E), respectively.
                        (C) Section 11.--Section 11(a) of the Federal
                    Deposit Insurance Act (12 U.S.C. 1821(a)) is amended--
                              (i) by striking paragraphs (6) and (7); and

    [[Page 110 STAT. 3009-489]]

                              (ii) by redesignating paragraph (8) as
                          paragraph (6).
                (7) Section 5136 of the revised statutes.--The paragraph
            designated the ``Eleventh'' of section 5136 of the Revised
            Statutes of the United States (12 U.S.C. 24) is amended in the
            5th sentence, by striking ``affected deposit insurance fund''
            and inserting ``Deposit Insurance Fund''.
                (8) Investments promoting public welfare; limitations on
            aggregate investments.--The 23d undesignated paragraph of
            section 9 of the Federal Reserve Act (12 U.S.C. 338a) is amended
            in the 4th sentence, by striking ``affected deposit insurance
            fund'' and inserting ``Deposit Insurance Fund''.
                (9) Advances to critically undercapitalized depository
            institutions.--Section 10B(b)(3)(A)(ii) of the Federal Reserve
            Act (12 U.S.C. 347b(b)(3)(A)(ii)) is amended by striking ``any
            deposit insurance fund in'' and inserting ``the Deposit
            Insurance Fund of''.
                (10) Amendments to the balanced budget and emergency deficit
            control act of 1985.--Section 255(g)(1)(A) of the Balanced
            Budget and Emergency Deficit Control Act of 1985 (2 U.S.C.
            905(g)(1)(A)) is amended--
                        (A) by striking ``Bank Insurance Fund'' and
                    inserting ``Deposit Insurance Fund''; and
                        (B) by striking ``Federal Deposit Insurance
                    Corporation, Savings Association Insurance Fund;''.
                (11) Further amendments to the federal home loan bank act.--
            The Federal Home Loan Bank Act (12 U.S.C. 1421 et seq.) is
            amended--
                        (A) in section 11(k) (12 U.S.C. 1431(k))--
                              (i) in the subsection heading, by striking
                          ``SAIF'' and inserting ``the Deposit Insurance
                          Fund''; and
                              (ii) by striking ``Savings Association
                          Insurance Fund'' each place such term appears and
                          inserting ``Deposit Insurance Fund'';
                        (B) in section 21A(b)(4)(B) (12 U.S.C.
                    1441a(b)(4)(B)), by striking ``affected deposit
                    insurance fund'' and inserting ``Deposit Insurance
                    Fund'';
                        (C) in section 21A(b)(6)(B) (12 U.S.C.
                    1441a(b)(6)(B))--
                              (i) in the subparagraph heading, by striking
                          ``SAIF-insured banks'' and inserting ``Charter
                          conversions''; and
                              (ii) by striking ``Savings Association
                          Insurance Fund member'' and inserting ``savings
                          association'';
                        (D) in section 21A(b)(10)(A)(iv)(II) (12 U.S.C.
                    1441a(b)(10)(A)(iv)(II)), by striking ``Savings
                    Association Insurance Fund'' and inserting ``Deposit
                    Insurance Fund'';
                        (E) in section 21B(e) (12 U.S.C. 1441b(e))--
                              (i) in paragraph (5), by inserting ``as of the
                          date of funding'' after ``Savings Association
                          Insurance Fund members'' each place such term
                          appears;
                              (ii) by striking paragraph (7); and
                              (iii) by redesignating paragraph (8) as
                          paragraph (7); and
                        (F) in section 21B(k) (12 U.S.C. 1441b(k))--
                              (i) by striking paragraph (8); and
                              (ii) by redesignating paragraphs (9) and (10)
                          as paragraphs (8) and (9), respectively.

    [[Page 110 STAT. 3009-490]]

                (12) Amendments to the home owners' loan act.--The Home
            Owners' Loan Act (12 U.S.C. 1461 et seq.) is amended--
                        (A) <<NOTE: 12 USC 1464.>> in section 5--
                              (i) in subsection (c)(5)(A), by striking
                          ``that is a member of the Bank Insurance Fund'';
                              (ii) in subsection (c)(6), by striking ``As
                          used in this subsection--'' and inserting ``For
                          purposes of this subsection, the following
                          definitions shall apply:'';
                              (iii) in subsection (o)(1), by striking ``that
                          is a Bank Insurance Fund member'';
                              (iv) in subsection (o)(2)(A), by striking ``a
                          Bank Insurance Fund member until such time as it
                          changes its status to a Savings Association
                          Insurance Fund member'' and inserting ``insured by
                          the Deposit Insurance Fund'';
                              (v) in subsection (t)(5)(D)(iii)(II), by
                          striking ``affected deposit insurance fund'' and
                          inserting ``Deposit Insurance Fund'';
                              (vi) in subsection (t)(7)(C)(i)(I), by
                          striking ``affected deposit insurance fund'' and
                          inserting ``Deposit Insurance Fund''; and
                              (vii) in subsection (v)(2)(A)(i), by striking
                          ``, the Savings Association Insurance Fund'' and
                          inserting ``or the Deposit Insurance Fund''; and
                        (B) <<NOTE: 12 USC 1467a.>> in section 10--
                              (i) in subsection (e)(1)(A)(iii)(VII), by
                          adding ``or'' at the end;
                              (ii) in subsection (e)(1)(A)(iv), by adding
                          ``and'' at the end;
                              (iii) in subsection (e)(1)(B), by striking
                          ``Savings Association Insurance Fund or Bank
                          Insurance Fund'' and inserting ``Deposit Insurance
                          Fund'';
                              (iv) in subsection (e)(2), by striking
                          ``Savings Association Insurance Fund or the Bank
                          Insurance Fund'' and inserting ``Deposit Insurance
                          Fund''; and
                              (v) in subsection (m)(3), by striking
                          subparagraph (E), and by redesignating
                          subparagraphs (F), (G), and (H) as subparagraphs
                          (E), (F), and (G), respectively.
                (13) Amendments to the national housing act.--The National
            Housing Act (12 U.S.C. 1701 et seq.) is amended--
                        (A) in section 317(b)(1)(B) (12 U.S.C.
                    1723i(b)(1)(B)), by striking ``Bank Insurance Fund for
                    banks or through the Savings Association Insurance Fund
                    for savings associations'' and inserting ``Deposit
                    Insurance Fund''; and
                        (B) in section 526(b)(1)(B)(ii) (12 U.S.C. 1735f-
                    14(b)(1)(B)(ii)), by striking ``Bank Insurance Fund for
                    banks and through the Savings Association Insurance Fund
                    for savings associations'' and inserting ``Deposit
                    Insurance Fund''.
                (14) Further amendments to the federal deposit insurance
            act.--The Federal Deposit Insurance Act (12 U.S.C. 1811 et seq.)
            is amended--
                        (A) in section 3(a)(1) (12 U.S.C. 1813(a)(1)), by
                    striking subparagraph (B) and inserting the following:
                        ``(B) includes any former savings association.'';

    [[Page 110 STAT. 3009-491]]

                        (B) in section 5(b)(5) (12 U.S.C. 1815(b)(5)), by
                    striking ``the Bank Insurance Fund or the Savings
                    Association Insurance Fund;'' and inserting ``Deposit
                    Insurance Fund,'';
                        (C) in section 5(d) (12 U.S.C. 1815(d)), by striking
                    paragraphs (2) and (3);
                        (D) in section 5(d)(1) (12 U.S.C. 1815(d)(1))--
                              (i) in subparagraph (A), by striking ``reserve
                          ratios in the Bank Insurance Fund and the Savings
                          Association Insurance Fund'' and inserting ``the
                          reserve ratio of the Deposit Insurance Fund'';
                              (ii) by striking subparagraph (B) and
                          inserting the following:
                ``(2) Fee credited to the deposit insurance fund.--The fee
            paid by the depository institution under paragraph (1) shall be
            credited to the Deposit Insurance Fund.'';
                              (iii) by striking ``(1) Uninsured
                          institutions.--''; and
                              (iv) by redesignating subparagraphs (A) and
                          (C) as paragraphs (1) and (3), respectively, and
                          moving the margins 2 ems to the left;
                        (E) in section 5(e) (12 U.S.C. 1815(e))--
                              (i) in paragraph (5)(A), by striking ``Bank
                          Insurance Fund or the Savings Association
                          Insurance Fund'' and inserting ``Deposit Insurance
                          Fund'';
                              (ii) by striking paragraph (6); and
                              (iii) by redesignating paragraphs (7), (8),
                          and (9) as paragraphs (6), (7), and (8),
                          respectively;
                        (F) in section 6(5) (12 U.S.C. 1816(5)), by striking
                    ``Bank Insurance Fund or the Savings Association
                    Insurance Fund'' and inserting ``Deposit Insurance
                    Fund'';
                        (G) in section 7(b) (12 U.S.C. 1817(b))--
                              (i) in paragraph (1)(D), by striking ``each
                          deposit insurance fund'' and inserting ``the
                          Deposit Insurance Fund'';
                              (ii) in clauses (i)(I) and (iv) of paragraph
                          (2)(A), by striking ``each deposit insurance
                          fund'' each place such term appears and inserting
                          ``the Deposit Insurance Fund'';
                              (iii) in paragraph (2)(A)(iii), by striking
                          ``a deposit insurance fund'' and inserting ``the
                          Deposit Insurance Fund'';
                              (iv) by striking clause (iv) of paragraph
                          (2)(A);
                              (v) in paragraph (2)(C) (as redesignated by
                          paragraph (6)(B) of this subsection)--
                                        (I) by striking ``any deposit
                                    insurance fund'' and inserting ``the
                                    Deposit Insurance Fund''; and
                                        (II) by striking ``that fund'' each
                                    place such term appears and inserting
                                    ``the Deposit Insurance Fund'';
                              (vi) in paragraph (2)(D) (as redesignated by
                          paragraph (6)(B) of this subsection)--
                                        (I) in the subparagraph heading, by
                                    striking ``funds achieve'' and inserting
                                    ``fund achieves''; and
                                        (II) by striking ``a deposit
                                    insurance fund'' and inserting ``the
                                    Deposit Insurance Fund'';
                              (vii) in paragraph (3)--

    [[Page 110 STAT. 3009-492]]

                                        (I) in the paragraph heading, by
                                    striking ``funds'' and inserting
                                    ``fund'';
                                        (II) by striking ``members of that
                                    fund'' where such term appears in the
                                    portion of subparagraph (A) which
                                    precedes clause (i) of such subparagraph
                                    and inserting ``insured depository
                                    institutions'';
                                        (III) by striking ``that fund'' each
                                    place such term appears (other than in
                                    connection with term amended in
                                    subclause (II) of this clause) and
                                    inserting ``the Deposit Insurance
                                    Fund'';
                                        (IV) in subparagraph (A), by
                                    striking ``Except as provided in
                                    paragraph (2)(F), if'' and inserting
                                    ``If'';
                                        (V) in subparagraph (A), by striking
                                    ``any deposit insurance fund'' and
                                    inserting ``the Deposit Insurance
                                    Fund''; and
                                        (VI) by striking subparagraphs (C)
                                    and (D) and inserting the following:
                        ``(C) Amending schedule.--The Corporation may, by
                    regulation, amend a schedule prescribed under
                    subparagraph (B).''; and
                              (viii) in paragraph (6)--
                                        (I) by striking ``any such
                                    assessment'' and inserting ``any such
                                    assessment is necessary'';
                                        (II) by striking ``(A) is
                                    necessary--'';
                                        (III) by striking subparagraph (B);
                                        (IV) by redesignating clauses (i),
                                    (ii), and (iii) as subparagraphs (A),
                                    (B), and (C), respectively, and moving
                                    the margins 2 ems to the left; and
                                        (V) in subparagraph (C) (as
                                    redesignated), by striking ``; and'' and
                                    inserting a period;
                        (H) in section 11(f)(1) (12 U.S.C. 1821(f)(1)), by
                    striking ``, except that--'' and all that follows
                    through the end of the paragraph and inserting a period;
                        (I) in section 11(i)(3) (12 U.S.C. 1821(i)(3))--
                              (i) by striking subparagraph (B);
                              (ii) by redesignating subparagraph (C) as
                          subparagraph (B); and
                              (iii) in subparagraph (B) (as redesignated),
                          by striking ``subparagraphs (A) and (B)'' and
                          inserting ``subparagraph (A)'';
                        (J) in section 11A(a) (12 U.S.C. 1821a(a))--
                              (i) in paragraph (2), by striking
                          ``liabilities.--'' and all that follows through
                          ``Except'' and inserting ``liabilities.--Except'';
                              (ii) by striking paragraph (2)(B); and
                              (iii) in paragraph (3), by striking ``the Bank
                          Insurance Fund, the Savings Association Insurance
                          Fund,'' and inserting ``the Deposit Insurance
                          Fund'';
                        (K) in section 11A(b) (12 U.S.C. 1821a(b)), by
                    striking paragraph (4);
                        (L) in section 11A(f) (12 U.S.C. 1821a(f)), by
                    striking ``Savings Association Insurance Fund'' and
                    inserting ``Deposit Insurance Fund'';
                        (M) in section 13 (12 U.S.C. 1823)--
                              (i) in subsection (a)(1), by striking ``Bank
                          Insurance Fund, the Savings Association Insurance
                          Fund,'' and

    [[Page 110 STAT. 3009-493]]

                          inserting ``Deposit Insurance Fund, the Special
                          Reserve of the Deposit Insurance Fund,'';
                              (ii) in subsection (c)(4)(E)--
                                        (I) in the subparagraph heading, by
                                    striking ``funds'' and inserting
                                    ``fund''; and
                                        (II) in clause (i), by striking
                                    ``any insurance fund'' and inserting
                                    ``the Deposit Insurance Fund'';
                              (iii) in subsection (c)(4)(G)(ii)--
                                        (I) by striking ``appropriate
                                    insurance fund'' and inserting ``Deposit
                                    Insurance Fund'';
                                        (II) by striking ``the members of
                                    the insurance fund (of which such
                                    institution is a member)'' and inserting
                                    ``insured depository institutions'';
                                        (III) by striking ``each member's''
                                    and inserting ``each insured depository
                                    institution's''; and
                                        (IV) by striking ``the member's''
                                    each place such term appears and
                                    inserting ``the institution's'';
                              (iv) in subsection (c), by striking paragraph
                          (11);
                              (v) in subsection (h), by striking ``Bank
                          Insurance Fund'' and inserting ``Deposit Insurance
                          Fund'';
                              (vi) in subsection (k)(4)(B)(i), by striking
                          ``Savings Association Insurance Fund'' and
                          inserting ``Deposit Insurance Fund''; and
                              (vii) in subsection (k)(5)(A), by striking
                          ``Savings Association Insurance Fund'' and
                          inserting ``Deposit Insurance Fund'';
                        (N) in section 14(a) (12 U.S.C. 1824(a)) in the 5th
                    sentence--
                              (i) by striking ``Bank Insurance Fund or the
                          Savings Association Insurance Fund'' and inserting
                          ``Deposit Insurance Fund''; and
                              (ii) by striking ``each such fund'' and
                          inserting ``the Deposit Insurance Fund'';
                        (O) in section 14(b) (12 U.S.C. 1824(b)), by
                    striking ``Bank Insurance Fund or Savings Association
                    Insurance Fund'' and inserting ``Deposit Insurance
                    Fund'';
                        (P) in section 14(c) (12 U.S.C. 1824(c)), by
                    striking paragraph (3);
                        (Q) in section 14(d) (12 U.S.C. 1824(d))--
                              (i) by striking ``BIF'' each place such term
                          appears and inserting ``DIF''; and
                              (ii) by striking ``Bank Insurance Fund'' each
                          place such term appears and inserting ``Deposit
                          Insurance Fund'';
                        (R) in section 15(c)(5) (12 U.S.C. 1825(c)(5))--
                              (i) by striking ``the Bank Insurance Fund or
                          Savings Association Insurance Fund, respectively''
                          each place such term appears and inserting ``the
                          Deposit Insurance Fund''; and
                              (ii) in subparagraph (B), by striking ``the
                          Bank Insurance Fund or the Savings Association
                          Insurance Fund, respectively'' and inserting ``the
                          Deposit Insurance Fund'';
                        (S) in section 17(a) (12 U.S.C. 1827(a))--
                              (i) in the subsection heading, by striking
                          ``BIF, SAIF,'' and inserting ``the Deposit
                          Insurance Fund''; and

    [[Page 110 STAT. 3009-494]]

                              (ii) in paragraph (1), by striking ``the Bank
                          Insurance Fund, the Savings Association Insurance
                          Fund,'' each place such term appears and inserting
                          ``the Deposit Insurance Fund'';
                        (T) in section 17(d) (12 U.S.C. 1827(d)), by
                    striking ``the Bank Insurance Fund, the Savings
                    Association Insurance Fund,'' each place such term
                    appears and inserting ``the Deposit Insurance Fund'';
                        (U) in section 18(m)(3) (12 U.S.C. 1828(m)(3))--
                              (i) by striking ``Savings Association
                          Insurance Fund'' each place such term appears and
                          inserting ``Deposit Insurance Fund''; and
                              (ii) in subparagraph (C), by striking ``or the
                          Bank Insurance Fund'';
                        (V) in section 18(p) (12 U.S.C. 1828(p)), by
                    striking ``deposit insurance funds'' and inserting
                    ``Deposit Insurance Fund'';
                        (W) in section 24 (12 U.S.C. 1831a) in subsections
                    (a)(1) and (d)(1)(A), by striking ``appropriate deposit
                    insurance fund'' each place such term appears and
                    inserting ``Deposit Insurance Fund'';
                        (X) in section 28 (12 U.S.C. 1831e), by striking
                    ``affected deposit insurance fund'' each place such term
                    appears and inserting ``Deposit Insurance Fund'';
                        (Y) by striking section 31 (12 U.S.C. 1831h);
                        (Z) in section 36(i)(3) (12 U.S.C. 1831m(i)(3)) by
                    striking ``affected deposit insurance fund'' and
                    inserting ``Deposit Insurance Fund'';
                        (AA) in section 38(a) (12 U.S.C. 1831o(a)) in the
                    subsection heading, by striking ``Funds'' and inserting
                    ``Fund'';
                        (BB) in section 38(k) (12 U.S.C. 1831o(k))--
                              (i) in paragraph (1), by striking ``a deposit
                          insurance fund'' and inserting ``the Deposit
                          Insurance Fund''; and
                              (ii) in paragraph (2)(A)--
                                        (I) by striking ``A deposit
                                    insurance fund'' and inserting ``The
                                    Deposit Insurance Fund''; and
                                        (II) by striking ``the deposit
                                    insurance fund's outlays'' and inserting
                                    ``the outlays of the Deposit Insurance
                                    Fund''; and
                        (CC) in section 38(o) (12 U.S.C. 1831o(o))--
                              (i) by striking ``Associations.--'' and all
                          that follows through ``Subsections (e)(2)'' and
                          inserting ``Associations.--Subsections (e)(2)'';
                              (ii) by redesignating subparagraphs (A), (B),
                          and (C) as paragraphs (1), (2), and (3),
                          respectively, and moving the margins 2 ems to the
                          left; and
                              (iii) in paragraph (1) (as redesignated), by
                          redesignating clauses (i) and (ii) as
                          subparagraphs (A) and (B), respectively, and
                          moving the margins 2 ems to the left.
                (15) Amendments to the financial institutions reform,
            recovery, and enforcement act of 1989.--The Financial
            Institutions Reform, Recovery, and Enforcement Act is amended--
                        (A) in section 951(b)(3)(B) (12 U.S.C.
                    1833a(b)(3)(B)), by striking ``Bank Insurance Fund, the
                    Savings Association

    [[Page 110 STAT. 3009-495]]

                    Insurance Fund,'' and inserting ``Deposit Insurance
                    Fund''; and
                        (B) in section 1112(c)(1)(B) (12 U.S.C.
                    3341(c)(1)(B)), by striking ``Bank Insurance Fund, the
                    Savings Association Insurance Fund,'' and inserting
                    ``Deposit Insurance Fund''.
                (16) Amendment to the bank enterprise act of 1991.--Section
            232(a)(1) of the Bank Enterprise Act of 1991 (12 U.S.C.
            1834(a)(1)) is amended by striking ``section 7(b)(2)(H)'' and
            inserting ``section 7(b)(2)(G)''.
                (17) Amendment to the bank holding company act of 1956.--
            Section 2(j)(2) of the Bank Holding Company Act of 1956 (12
            U.S.C. 1841(j)(2)) is amended by striking ``Savings Association
            Insurance Fund'' and inserting ``Deposit Insurance Fund''.

    SEC. 2705. CREATION OF SAIF SPECIAL RESERVE.

        Section 11(a)(6) of the Federal Deposit Insurance Act (12 U.S.C.
    1821(a)(6)) is amended by adding at the end the following new
    subparagraph:
                ``(L) Establishment of saif special reserve.--
                        ``(i) Establishment.--If, on January 1, 1999, the
                    reserve ratio of the Savings Association Insurance Fund
                    exceeds the designated reserve ratio, there is
                    established a Special Reserve of the Savings Association
                    Insurance Fund, which shall be administered by the
                    Corporation and shall be invested in accordance with
                    section 13(a).
                        ``(ii) Amounts in special reserve.--If, on January
                    1, 1999, the reserve ratio of the Savings Association
                    Insurance Fund exceeds the designated reserve ratio, the
                    amount by which the reserve ratio exceeds the designated
                    reserve ratio shall be placed in the Special Reserve of
                    the Savings Association Insurance Fund established by
                    clause (i).
                        ``(iii) Limitation.--The Corporation shall not
                    provide any assessment credit, refund, or other payment
                    from any amount in the Special Reserve of the Savings
                    Association Insurance Fund.
                        ``(iv) Emergency use of special reserve.--
                    Notwithstanding clause (iii), the Corporation may, in
                    its sole discretion, transfer amounts from the Special
                    Reserve of the Savings Association Insurance Fund to the
                    Savings Association Insurance Fund for the purposes set
                    forth in paragraph (4), only if--
                              ``(I) the reserve ratio of the Savings
                          Association Insurance Fund is less than 50 percent
                          of the designated reserve ratio; and
                              ``(II) the Corporation expects the reserve
                          ratio of the Savings Association Insurance Fund to
                          remain at less than 50 percent of the designated
                          reserve ratio for each of the next 4 calendar
                          quarters.
                        ``(v) Exclusion of special reserve in calculating
                    reserve ratio.--Notwithstanding any other provision of
                    law, any amounts in the Special Reserve of the Savings
                    Association Insurance Fund shall be excluded in
                    calculating the reserve ratio of the Savings Association
                    Insurance Fund.''.

    [[Page 110 STAT. 3009-496]]

    SEC. 2706. REFUND OF AMOUNTS IN DEPOSIT INSURANCE FUND IN EXCESS OF
                DESIGNATED RESERVE AMOUNT.

        Subsection (e) of section 7 of the Federal Deposit Insurance Act (12
    U.S.C. 1817(e)) is amended to read as follows:
        ``(e) Refunds.--
                ``(1) Overpayments.--In the case of any payment of an
            assessment by an insured depository institution in excess of the
            amount due to the Corporation, the Corporation may--
                        ``(A) refund the amount of the excess payment to the
                    insured depository institution; or
                        ``(B) credit such excess amount toward the payment
                    of subsequent semiannual assessments until such credit
                    is exhausted.
                ``(2) Balance in insurance fund in excess of designated
            reserve.--
                        ``(A) In general.--Subject to subparagraphs (B) and
                    (C), if, as of the end of any semiannual assessment
                    period beginning after the date of the enactment of the
                    Deposit Insurance Funds Act of 1996, the amount of the
                    actual reserves in--
                              ``(i) the Bank Insurance Fund (until the
                          merger of such fund into the Deposit Insurance
                          Fund pursuant to section 2704 of the Deposit
                          Insurance Funds Act of 1996); or
                              ``(ii) the Deposit Insurance Fund (after the
                          establishment of such fund),

                    exceeds the balance required to meet the designated
                    reserve ratio applicable with respect to such fund, such
                    excess amount shall be refunded to insured depository
                    institutions by the Corporation on such basis as the
                    Board of Directors determines to be appropriate, taking
                    into account the factors considered under the risk-based
                    assessment system.
                        ``(B) Refund not to exceed previous semiannual
                    assessment.--The amount of any refund under this
                    paragraph to any member of a deposit insurance fund for
                    any semiannual assessment period may not exceed the
                    total amount of assessments paid by such member to the
                    insurance fund with respect to such period.
                        ``(C) Refund limitation for certain institutions.--
                    No refund may be made under this paragraph with respect
                    to the amount of any assessment paid for any semiannual
                    assessment period by any insured depository institution
                    described in clause (v) of subsection (b)(2)(A).''.

    SEC. 2707. ASSESSMENT RATES FOR SAIF MEMBERS MAY NOT BE LESS THAN
                ASSESSMENT RATES FOR BIF MEMBERS.

        Section 7(b)(2)(C) of the Federal Deposit Insurance Act (12 U.S.C.
    1817(b)(2)(E), as redesignated by section 2704(d)(6) of this subtitle)
    is amended--
                (1) by striking ``and'' at the end of clause (i);
                (2) by striking the period at the end of clause (ii) and
            inserting ``; and''; and
                (3) by adding at the end the following new clause:
                              ``(iii) notwithstanding any other provision of
                          this subsection, during the period beginning on
                          the date of enactment of the Deposit Insurance
                          Funds Act of

    [[Page 110 STAT. 3009-497]]

                          1996, and ending on December 31, 1998, the
                          assessment rate for a Savings Association
                          Insurance Fund member may not be less than the
                          assessment rate for a Bank Insurance Fund member
                          that poses a comparable risk to the deposit
                          insurance fund.''.

    SEC. 2708. ASSESSMENTS AUTHORIZED ONLY IF NEEDED TO MAINTAIN THE RESERVE
                RATIO OF A DEPOSIT INSURANCE FUND.

        (a) In General.--Section 7(b)(2)(A)(i) of the Federal Deposit
    Insurance Act (12 U.S.C. 1817(b)(2)(A)(i)) is amended in the matter
    preceding subclause (I) by inserting ``when necessary, and only to the
    extent necessary'' after ``insured depository institutions''.
        (b) Limitation on Assessment.--Section 7(b)(2)(A)(iii) of the
    Federal Deposit Insurance Act (12 U.S.C. 1817(b)(2)(A)(iii)) is amended
    to read as follows:
                              ``(iii) Limitation on assessment.--Except as
                          provided in clause (v), the Board of Directors
                          shall not set semiannual assessments with respect
                          to a deposit insurance fund in excess of the
                          amount needed--
                                        ``(I) to maintain the reserve ratio
                                    of the fund at the designated reserve
                                    ratio; or
                                        ``(II) if the reserve ratio is less
                                    than the designated reserve ratio, to
                                    increase the reserve ratio to the
                                    designated reserve ratio.''.

        (c) Exception to Limitation on Assessments.--Section 7(b)(2)(A) of
    the Federal Deposit Insurance Act (12 U.S.C. 1817(b)(2)(A)) is amended
    by adding at the end the following new clause:
                              ``(v) Exception to limitation on
                          assessments.--The Board of Directors may set
                          semiannual assessments in excess of the amount
                          permitted under clauses (i) and (iii) with respect
                          to insured depository institutions that exhibit
                          financial, operational, or compliance weaknesses
                          ranging from moderately severe to unsatisfactory,
                          or are not well capitalized, as that term is
                          defined in section 38.''.

    SEC. 2709. TREASURY STUDY OF COMMON DEPOSITORY INSTITUTION CHARTER.

        (a) Study Required.--The Secretary of the Treasury shall conduct a
    study of all issues which the Secretary considers to be relevant with
    respect to the development of a common charter for all insured
    depository institutions (as defined in section 3 of the Federal Deposit
    Insurance Act) and the abolition of separate and distinct charters
    between banks and savings associations.
        (b) Report to the Congress.--
                (1) In general.--The Secretary of the Treasury shall submit
            a report to the Congress on or before March 31, 1997, containing
            the findings and conclusions of the Secretary in connection with
            the study conducted pursuant to subsection (a).
                (2) Detailed analysis and recommendations.--The report under
            paragraph (1) shall include--
                        (A) a detailed analysis of each issue the Secretary
                    considered relevant to the subject of the study;

    [[Page 110 STAT. 3009-498]]

                        (B) recommendations of the Secretary with regard to
                    the establishment of a common charter for insured
                    depository institutions (as defined in section 3 of the
                    Federal Deposit Insurance Act); and
                        (C) such recommendations for legislative and
                    administrative action as the Secretary determines to be
                    appropriate to implement the recommendations of the
                    Secretary under subparagraph (B).

    SEC. 2710. <<NOTE: 12 USC 1821 note.>> DEFINITIONS.

        For purposes of this subtitle, the following definitions shall
    apply:
                (1) Bank insurance fund.--The term ``Bank Insurance Fund''
            means the fund established pursuant to section (11)(a)(5)(A) of
            the Federal Deposit Insurance Act, as that section existed on
            the day before the date of enactment of this Act.
                (2) BIF member, saif member.--The terms ``Bank Insurance
            Fund member'' and ``Savings Association Insurance Fund member''
            have the same meanings as in section 7(l) of the Federal Deposit
            Insurance Act.
                (3) Various banking terms.--The terms ``bank'', ``Board of
            Directors'', ``Corporation'', ``deposit'', ``insured depository
            institution'', ``Federal savings association'', ``savings
            association'', ``State savings bank'', and ``State depository
            institution'' have the same meanings as in section 3 of the
            Federal Deposit Insurance Act.
                (4) Deposit insurance fund.--The term ``Deposit Insurance
            Fund'' means the fund established under section 11(a)(4) of the
            Federal Deposit Insurance Act (as amended by section 2704(d) of
            this subtitle).
                (5) Depository institution holding company.--The term
            ``depository institution holding company'' has the same meaning
            as in section 3 of the Federal Deposit Insurance Act.
                (6) Designated reserve ratio.--The term ``designated reserve
            ratio'' has the same meaning as in section 7(b)(2)(A)(iv) of the
            Federal Deposit Insurance Act.
                (7) SAIF.--The term ``Savings Association Insurance Fund''
            means the fund established pursuant to section 11(a)(6)(A) of
            the Federal Deposit Insurance Act, as that section existed on
            the day before the date of enactment of this Act.
                (8) SAIF-assessable deposit.--The term ``SAIF-assessable
            deposit''--
                        (A) means a deposit that is subject to assessment
                    for purposes of the Savings Association Insurance Fund
                    under the Federal Deposit Insurance Act (including a
                    deposit that is treated as insured by the Savings
                    Association Insurance Fund under section 5(d)(3) of the
                    Federal Deposit Insurance Act); and
                        (B) includes any deposit described in subparagraph
                    (A) which is assumed after March 31, 1995, if the
                    insured depository institution, the deposits of which
                    are assumed, is not an insured depository institution
                    when the special assessment is imposed under section
                    2702(a).

    SEC. 2711. <<NOTE: 26 USC 162 note.>> DEDUCTION FOR SPECIAL ASSESSMENTS.

        For purposes of subtitle A of the Internal Revenue Code of 1986--

    [[Page 110 STAT. 3009-499]]

                (1) the amount allowed as a deduction under section 162 of
            such Code for a taxable year shall include any amount paid
            during such year by reason of an assessment under section 2702
            of this subtitle, and
                (2) section 172(f) of such Code shall not apply to any
            deduction described in paragraph (1).

                    TITLE III--SPECTRUM ALLOCATION PROVISIONS

    SEC. 3001. COMPETITIVE BIDDING FOR SPECTRUM.

          (a) Commission Obligation To Make Additional Spectrum Available.--
    The Federal Communications Commission shall--
                (1) reallocate the use of frequencies at 2305-2320 megahertz
            and 2345-2360 megahertz to wireless services that are consistent
            with international agreements concerning spectrum allocations;
            and
                (2) assign the use of such frequencies by competitive
            bidding pursuant to section 309(j) of the Communications Act of
            1934 (47 U.S.C. 309(j)).
          (b) Additional Requirements.--In making the bands of frequencies
    described in subsection (a) available for competitive bidding, the
    Commission shall--
                (1) seek to promote the most efficient use of the spectrum;
            and
                (2) take into account the needs of public safety radio
            services.
          (c) Expedited Procedures.--The Commission shall commence the
    competitive bidding for the assignment of the frequencies described in
    subsection (a)(1) no later than April 15, 1997. The rules governing such
    frequencies shall be effective immediately upon publication in the
    Federal Register notwithstanding section 553(d), 801(a)(3), and 806(a)
    of title 5, United States Code. Chapter 6 of such title, and sections
    3507 and 3512 of title 44, United States Code, shall not apply to the
    rules and competitive bidding procedures governing such frequencies.
    Notwithstanding section 309(b) of the Communications Act of 1934 (47
    U.S.C. 309(b)), no application for an instrument of authorization for
    such frequencies shall be granted by the Commission earlier than 7 days
    following issuance of public notice by the Commission of the acceptance
    for filing of such application or of any substantial amendment thereto.
    Notwithstanding section 309(d)(1) of such Act (47 U.S.C. 309(d)(1)), the
    Commission may specify a period (no less than 5 days following issuance
    of such public notice) for the filing of petitions to deny any
    application for an instrument of authorization for such frequencies.
          (d) Deadline for Collection.--The Commission shall conduct the
    competitive bidding under subsection (a)(2) in a manner that ensures
    that all proceeds of the bidding are deposited in accordance with
    section 309(j)(8) of the Communications Act of 1934 not later September
    30, 1997.

    [[Page 110 STAT. 3009-500]]

                     TITLE IV--ADJUSTMENT OF PAYGO BALANCES

    SEC. 4001. ADJUSTMENT OF PAYGO BALANCES.

          For purposes of section 252 of the Balanced Budget and Emergency
    Deficit Control Act of 1985, on the calendar day after the Director of
    the Office of Management and Budget issues the final sequestration
    report for fiscal year 1997, the Director and the Director of the
    Congressional Budget Office shall change the balances (as computed
    pursuant to section 252(b) of that Act) of direct spending and receipts
    legislation--
                (1) for fiscal year 1997 to zero if such balance for the
            fiscal year is not an increase in the deficit.

                       TITLE V--ADDITIONAL APPROPRIATIONS

                                    CHAPTER 1

          DEPARTMENT OF AGRICULTURE, RURAL DEVELOPMENT, FOOD AND DRUG
                      ADMINISTRATION, AND RELATED AGENCIES

                            Department of Agriculture

          cooperative state research, education, and extension service

                              extension activities

          For an additional amount for payments for cooperative extension
    work by the colleges receiving the benefits of the second Morrill Act (7
    U.S.C. 321-326, 328) and Tuskegee University, $753,000.

                     natural resources conservation service

                    watershed and flood prevention operations

          For an additional amount to repair damages to the waterways and
    watersheds resulting from the effects of Hurricanes Fran and Hortense
    and other natural disasters, $63,000,000, to remain available until
    expended: Provided, That the entire amount is designated by Congress as
    an emergency requirement pursuant to section 251(b)(2)(D)(i) of the
    Balanced Budget and Emergency Deficit Control Act of 1985, as amended.

                               farm service agency

                         emergency conservation program

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

    [[Page 110 STAT. 3009-501]]

                                    CHAPTER 2

                              DISTRICT OF COLUMBIA

          education facilities improvement in the district of columbia

                                  (by transfer)

          Sec. 5201. The District of Columbia Financial Responsibility and
    Management Assistance Authority (referred to in this section as the
    ``Authority'') shall have the authority to contract with a private
    entity (or entities) to carry out a program of school facility repair of
    public schools and public charter schools located in public school
    facilities in the District of Columbia, in consultation with the General
    Services Administration: Provided, That an amount estimated to be
    $40,700,000 is hereby transferred and otherwise made available to the
    Authority until expended for contracting as provided under this section,
    to be derived from transfers and reallocations as follows: (1) funds
    made available under the heading ``PUBLIC EDUCATION SYSTEM'' in Public
    Law 104-194 for school repairs in a restricted line item; (2) all
    capital financing authority made available for public school capital
    improvements in Public Law 104-194; and (3) all capital financing
    authority made available for public school capital improvements which
    are or remain available from Public Law 104-134 or any previous
    appropriations Act for the District of Columbia: Provided further, That
    the General Services Administration, in consultation with the District
    of Columbia Public Schools and the District of Columbia Council and
    subject to the approval of the Authority and the Committees on
    Appropriations of the Senate and the House of Representatives, shall
    provide program management services to assist in the short-term
    management of the repairs and capital improvements: Provided further,
    That contracting authorized under this section shall be conducted in
    accordance with Federal procurement rules and regulations and guidelines
    or such guidelines as prescribed by the Authority.

               special rules regarding general obligation bond act

          Sec. 5202. Waiver of Congressional Review.--Notwithstanding
    section 602(c)(1) of the District of Columbia Self-Government and
    Governmental Reorganization Act (sec. 1-233(c)(1), D.C. Code), the
    General Obligation Bond Act of 1996 (D.C. Bill 11-840), if enacted by
    the Council of the District of Columbia, shall take effect on the date
    of the enactment of such Act or the date of the enactment of this Act,
    whichever is later.

      amendments to financial responsibility and management assistance act

          Sec. 5203. (a) Calculation of 7-Day Review Period for Council
    Acts.--Section 203(a)(5) of the District of Columbia Financial
    Responsibility and Management Assistance Act of 1995 (sec. 47-
    392.3(a)(5), D.C. Code) is amended--
                (1) by inserting ``(excluding Saturdays, Sundays, and legal
            holidays)'' after ``7-day period'' the first place it appears;
            and
                (2) by striking ``the date the Council submits the Act to
            the Authority'' and inserting ``the first day (excluding
            Saturdays, Sundays, and legal holidays) after the Authority
            receives the Act from the Council''.

    [[Page 110 STAT. 3009-502]]

          (b) Specification of Penalty for Prohibited Acts.--Section
    103(i)(1) of such Act (sec. 47-391.3(i)(1), D.C. Code) is amended by
    striking the period at the end and inserting the following: ``, and
    shall be fined not more than $1,000, imprisoned for not more than 1
    year, or both.''.
          (c) Waiver of Privacy Act Requirements for Obtaining Official
    Data.--Section 103(c)(1) of such Act (sec. 47-391.3(c)(1), D.C. Code) is
    amended by striking ``Act) and 552b'' and inserting ``Act), 552a (the
    Privacy Act of 1974), and 552b''.
          (d) Permitting Authority review of Rulemaking.--Section 203(b) of
    such Act (sec. 47-392.3(b), D.C. Code) is amended by adding at the end
    the following new paragraph:
                ``(5) Application to rules and regulations.--The provisions
            of this subsection shall apply with respect to a rule or
            regulation issued or proposed to be issued by the Mayor (or the
            head of any department or agency of the District government) in
            the same manner as such provisions apply to a contract or
            lease.''.
          (e) Deposit of All District Borrowing With Authority.--
                (1) In general.--Section 204 of such Act (sec. 47-392.4,
            D.C. Code) is amended--
                        (A) by redesignating subsections (d) and (e) as
                    subsections (e) and (f); and
                        (B) by inserting after subsection (c) the following
                    new subsection:
          ``(d) Deposit of Borrowed Funds With Authority.--If the District
    government borrows funds during a control year, the funds shall be
    deposited into an escrow account held by the Authority, to be allocated
    by the Authority to the Mayor at such intervals and in accordance with
    such terms and conditions as it considers appropriate, consistent with
    the financial plan and budget for the year and with any other
    withholding of funds by the Authority pursuant to this Act.''.
                (2) Conforming amendments.--(A) Section 204(e) of such Act,
            as redesignated by paragraph (1)(A), is amended by inserting
            after ``(b)(1)'' the following: ``or the escrow account
            described in subsection (d)''.
                (B) Section 206(d)(1) of such Act is amended by striking
            ``204(b)'' and inserting ``204(b), section 204(d),''.
          (f) Granting Authority Power to Issue General Orders.--Section 207
    of such Act (sec. 47-392.7, D.C Code) is amended by adding at the end
    the following new subsection:
          ``(d) Additional Power to Issue Orders, Rules, and Regulations.--
                ``(1) In general.--In addition to the authority described in
            subsection (c), the Authority may at any time issue such orders,
            rules, or regulations as it considers appropriate to carry out
            the purposes of this Act and the amendments made by this Act, to
            the extent that the issuance of such an order, rule, or
            regulation is within the authority of the Mayor or the head of
            any department or agency of the District government, and any
            such order, rule, or regulation shall be legally binding to the
            same extent as if issued by the Mayor or the head of any such
            department or agency.
                ``(2) Notification.--Upon issuing an order, rule, or
            regulation pursuant to this subsection, the Authority shall
            notify the Mayor, the Council, the President, and Congress.

    [[Page 110 STAT. 3009-503]]

                ``(3) No judicial review of decision to issue order.--The
            decision by the Authority to issue an order, rule, or regulation
            pursuant to this subsection shall be final and shall not be
            subject to judicial review.''.

           prohibiting funding for terminated employees or contractors

          Sec. 5204. (a) In General.--Except as provided in subsection (b),
    none of the funds made available to the District of Columbia during any
    fiscal year (beginning with fiscal year 1996) may be used to pay the
    salary or wages of any individual whose employment by the District
    government is no longer required as determined by the District of
    Columbia Financial Responsibility and Management Assistance Authority,
    or to pay any expenses associated with a contractor or consultant of the
    District government whose contract or arrangement with the District
    government is no longer required as determined by the Authority.
          (b) Exception for Payments for Services Already Provided.--Funds
    made available to the District of Columbia may be used to pay an
    individual for employment already performed at the time of the
    Authority's determination, or to pay a contractor or consultant for
    services already provided at the time of the Authority's determination,
    to the extent permitted by the District of Columbia Financial
    Responsibility and Management Assistance Authority.
          (c) District Government Defined.--In this section, the term
    ``District government'' has the meaning given such term in section
    305(5) of the District of Columbia Financial Responsibility and
    Management Assistance Act of 1995.

          amendments to district of columbia school reform act of 1995.

          Sec. 5205. (a) Process for Filing Charter Petitions.--Section 2201
    of the District of Columbia School Reform Act of 1995 (Public Law 104-
    134; 110 Stat. 1321-115) is amended by adding at the end the following:
          ``(d) Limitations on Filing.--
                ``(1) Multiple chartering authorities.--An eligible
            applicant may not file the same petition to establish a public
            charter school with more than 1 eligible chartering authority
            during a calendar year.
                ``(2) Multiple petitions.--An eligible applicant may not
            file more than 1 petition to establish a public charter school
            during a calendar year.''.
          (b) Contents of Petition.--Section 2202(6)(B) of the District of
    Columbia School Reform Act of 1995 (110 Stat. 1321-116) is amended to
    read as follows:
                        ``(B) either--
                              ``(i)(I) an identification of a facility for
                          the school, including a description of the site
                          where the school will be located, any buildings on
                          the site, and any buildings proposed to be
                          constructed on the site, and (II) information
                          demonstrating that the eligible applicant has
                          acquired title to, or otherwise secured the use
                          of, the facility; or

    [[Page 110 STAT. 3009-504]]

                              ``(ii) a timetable by which an identification
                          described in clause (i)(I) will be made, and the
                          information described in clause (i)(II) will be
                          submitted, to the eligible chartering
                          authority;''.
          (c) Process for Approving or Denying Public Charter School
    Petitions.--Section 2203 of the District of Columbia School Reform Act
    of 1995 (110 Stat. 1321-118) is amended--
                (1) by amending subsection (d) to read as follows:
          ``(d) Approval.--
                ``(1) In general.--Subject to subsection (i) and paragraph
            (2), an eligible chartering authority shall approve a petition
            to establish a public charter school, if--
                        ``(A) the eligible chartering authority determines
                    that the petition satisfies the requirements of this
                    subtitle;
                        ``(B) the eligible applicant who filed the petition
                    agrees to satisfy any condition or requirement,
                    consistent with this subtitle and other applicable law,
                    that is set forth in writing by the eligible chartering
                    authority as an amendment to the petition;
                        ``(C) the eligible chartering authority determines
                    that the public charter school has the ability to meet
                    the educational objectives outlined in the petition; and
                        ``(D) the approval will not cause the eligible
                    chartering authority to exceed a limit under subsection
                    (i).
                ``(2) Conditional approval.--
                        ``(A) In general.--In the case of a petition that
                    does not contain the identification and information
                    required under section 2202(6)(B)(i), but does contain
                    the timetable required under section 2202(6)(B)(ii), an
                    eligible chartering authority may only approve the
                    petition on a conditional basis, subject to the eligible
                    applicant's submitting the identification and
                    information described in section 2202(6)(B)(i) in
                    accordance with such timetable, or any other timetable
                    specified in writing by the eligible chartering
                    authority in an amendment to the petition.
                        ``(B) Effect of conditional approval.--For purposes
                    of subsections (e), (h), (i), and (j), a petition
                    conditionally approved under this paragraph shall be
                    treated the same as a petition approved under paragraph
                    (1), except that on the date that such a conditionally
                    approved petition ceases to be conditionally approved
                    because the eligible applicant has not timely submitted
                    the identification and information described in section
                    2202(6)(B)(i), the approval of the petition shall cease
                    to be counted for purposes of subsection (i).'';
                (2) in subsection (h), by striking ``(d)(2),'' each place
            such term appears and inserting ``(d),'';
                (3) by amending subsection (i) to read as follows:
          ``(i) Number of Petitions.--
                ``(1) First year.--During calendar year 1996, not more than
            10 petitions to establish public charter schools may be approved
            under this subtitle.
                ``(2) Subsequent years.--
                        ``(A) In general.--Subject to subparagraph (B),
                    during calendar year 1997, and during each subsequent
                    calendar year, each eligible chartering authority shall
                    not approve more than 10 petitions to establish a public
                    charter school

    [[Page 110 STAT. 3009-505]]

                    under this subtitle. Any such petition shall be approved
                    during the period that begins on January 1 and ends on
                    April 1.
                        ``(B) Exception.--If, by April 1 of any calendar
                    year after 1996, an eligible chartering authority has
                    approved fewer than 10 petitions during such calendar
                    year, any other eligible chartering authority may
                    approve more than 10 petitions during such calendar
                    year, but only if--
                              ``(i) the eligible chartering authority
                          completes the approval of any such additional
                          petition before June 1 of the year; and
                              ``(ii) the approval of any such additional
                          petition will not cause the total number of
                          petitions approved by all eligible chartering
                          authorities during the calendar year to exceed
                          20.''; and
                (4) by amending subsection (j) to read as follows:
          ``(j) Authority of Eligible Chartering Authority.--
                ``(1) In general.--Except as provided in paragraph (2), and
            except for officers or employees of the eligible chartering
            authority with which a petition to establish a public charter
            school is filed, no governmental entity, elected official, or
            employee of the District of Columbia shall make, participate in
            making, or intervene in the making of, the decision to approve
            or deny such a petition.
                ``(2) Availability of review.--A decision by an eligible
            chartering authority to deny a petition to establish a public
            charter school shall be subject to judicial review by an
            appropriate court of the District of Columbia.''.
          (d) District of Columbia Public School Services to Public Charter
    Schools.--Section 2209 of the District of Columbia School Reform Act of
    1995 (110 Stat. 1321-125) is amended--
                (1) by inserting ``(a) In General.--'' before ``The
            Superintendent''; and
                (2) by adding at the end the following:
          ``(b) Preference in Leasing or Purchasing Public School
    Facilities.--
                ``(1) Former public school property.--
                        ``(A) In general.--Notwithstanding any other
                    provision of law relating to the disposition of a
                    facility or property described in subparagraph (B), the
                    Mayor and the District of Columbia Government shall give
                    preference to an eligible applicant whose petition to
                    establish a public charter school has been conditionally
                    approved under section 2203(d)(2), or a Board of
                    Trustees, with respect to the purchase or lease of a
                    facility or property described in subparagraph (B),
                    provided that doing so will not result in a significant
                    loss of revenue that might be obtained from other
                    dispositions or uses of the facility or property.
                        ``(B) Property described.--A facility or property
                    referred to in subparagraph (A) is a facility, or real
                    property--
                              ``(i) that formerly was under the jurisdiction
                          of the Board of Education;
                              ``(ii) that the Board of Education has
                          determined is no longer needed for purposes of
                          operating a District of Columbia public school;
                          and

    [[Page 110 STAT. 3009-506]]

                              ``(iii) with respect to which the Board of
                          Education has transferred jurisdiction to the
                          Mayor.
                ``(2) Current public school property.--
                        ``(A) In general.--Notwithstanding any other
                    provision of law relating to the disposition of a
                    facility or property described in subparagraph (B), the
                    Mayor and the District of Columbia Government shall give
                    preference to an eligible applicant whose petition to
                    establish a public charter school has been conditionally
                    approved under section 2203(d)(2), or a Board of
                    Trustees, in leasing, or otherwise contracting for the
                    use of, a facility or property described in subparagraph
                    (B).
                        ``(B) Property described.--A facility or property
                    referred to in subparagraph (A) is a facility, real
                    property, or a designated area of a facility or real
                    property, that--
                              ``(i) is under the jurisdiction of the Board
                          of Education; and
                              ``(ii) is available for use because the Board
                          of Education is not using, for educational,
                          administrative, or other purposes, the facility,
                          real property, or designated area.''.
          (e) Charter Renewal.--Section 2212 of the District of Columbia
    School Reform Act of 1995 (110 Stat. 1321-129) is amended--
                (1) by amending subsection (a) to read as follows:
          ``(a) Terms.--
                ``(1) Initial term.--A charter granted to a public charter
            school shall remain in force for a 15-year period.
                ``(2) Renewals.--A charter may be renewed for an unlimited
            number of times, each time for a 15-year period.
                ``(3) Review.--An eligible chartering authority that grants
            or renews a charter pursuant to paragraph (1) or (2) shall
            review the charter--
                        ``(A) at least once every 5 years to determine
                    whether the charter should be revoked for the reasons
                    described in subsection (a)(1)(A) or (b) of section 2213
                    in accordance with the procedures for such revocation
                    established under section 2213(c); and
                        ``(B) once every 5 years, beginning on the date that
                    is 5 years after the date on which the charter is
                    granted or renewed, to determine whether the charter
                    should be revoked for the reasons described in section
                    2213(a)(1)(B) in accordance with the procedures for such
                    revocation established under section 2213(c).''; and
                (2) by amending subsection (d)(6) to read as follows:
                ``(6) Judicial review.--A decision by an eligible chartering
            authority to deny an application to renew a charter shall be
            subject to judicial review by an appropriate court of the
            District of Columbia.''.
          (f) Charter Revocation.--Section 2213(a) of the District of
    Columbia School Reform Act of 1995 (110 Stat. 1321-130) is amended to
    read as follows:
          ``(a) Charter or Law Violations; Failure to Meet Goals.--
                ``(1) In general.--Subject to paragraph (2), an eligible
            chartering authority that has granted a charter to a public
            charter school may revoke the charter if the eligible chartering
            authority determines that the school--

    [[Page 110 STAT. 3009-507]]

                        ``(A) committed a violation of applicable laws or a
                    material violation of the conditions, terms, standards,
                    or procedures set forth in the charter, including
                    violations relating to the education of children with
                    disabilities; or
                        ``(B) failed to meet the goals and student academic
                    achievement expectations set forth in the charter.
                ``(2) Special rule.--An eligible chartering authority may
            not revoke a charter under paragraph (1)(B), except pursuant to
            a determination made through a review conducted under section
            2212(a)(3)(B).''.
          (g) Public Charter School Board.--Paragraphs (3) and (4) of
    section 2214(a) of the District of Columbia School Reform Act of 1995
    (110 Stat. 1321-132) are amended to read as follows:
                ``(3) Vacancies.--
                        ``(A) Other than from expiration of term.--Where a
                    vacancy occurs in the membership of the Board for
                    reasons other than the expiration of the term of a
                    member of the Board, the Secretary of Education, not
                    later than 30 days after the vacancy occurs, shall
                    present to the Mayor a list of 3 people the Secretary
                    determines are qualified to serve on the Board. The
                    Mayor, in consultation with the District of Columbia
                    Council, shall appoint 1 person from the list to serve
                    on the Board. The Secretary shall recommend, and the
                    Mayor shall appoint, such member of the Board taking
                    into consideration the criteria described in paragraph
                    (2). Any member appointed to fill a vacancy occurring
                    prior to the expiration of the term of a predecessor
                    shall be appointed only for the remainder of the term.
                        ``(B) Expiration of term.--Not later than the date
                    that is 60 days before the expiration of the term of a
                    member of the Board, the Secretary of Education shall
                    present to the Mayor, with respect to each such
                    impending vacancy, a list of 3 people the Secretary
                    determines are qualified to serve on the Board. The
                    Mayor, in consultation with the District of Columbia
                    Council, shall appoint 1 person from each such list to
                    serve on the Board. The Secretary shall recommend, and
                    the Mayor shall appoint, any member of the Board taking
                    into consideration the criteria described in paragraph
                    (2).
                ``(4) Time limit for appointments.--If, at any time, the
            Mayor does not appoint members to the Board sufficient to bring
            the Board's membership to 7 within 30 days after receiving a
            recommendation from the Secretary of Education under paragraph
            (2) or (3), the Secretary, not later than 10 days after the
            final date for such mayoral appointment, shall make such
            appointments as are necessary to bring the membership of the
            Board to 7.''.
          (h) Technical Amendment.--Section 2561(b) of the District of
    Columbia School Reform Act of 1995 (Public Law 104-134), as amended by
    section 148 of the District of Columbia Appropriations Act, 1997 (Public
    Law 104-194), is amended to read as follows:
          ``(b) Limitation.--A waiver under subsection (a) shall not apply
    to the Davis-Bacon Act (40 U.S.C. 276a et seq.) or Executive Order 11246
    or other civil rights standards.''.

    [[Page 110 STAT. 3009-508]]

               disposition of certain school property by authority

          Sec. 5206. (a) In General.--Subtitle C of title II of the District
    of Columbia Financial Responsibility and Management Assistance Act of
    1995 is amended by adding at the end the following new section:

    ``SEC. 225. DISPOSITION OF CERTAIN SCHOOL PROPERTY.

          ``(a) Power to Dispose.--Notwithstanding any other provision of
    law relating to the disposition of a facility or property described in
    subsection (d), the Authority may dispose (by sale, lease, or otherwise)
    of any facility or property described in subsection (d).
          ``(b) Preference for Public Charter Schools.--In disposing of a
    facility or property under this section, the Authority shall give
    preference to an eligible applicant (as defined in section 2002 of the
    District of Columbia School Reform Act of 1995) whose petition to
    establish a public charter school has been conditionally approved under
    section 2203(d)(2) of such Act, or a Board of Trustees (as defined in
    section 2002 of such Act) of such a public charter school, if doing so
    will not result in a significant loss of revenue that might be obtained
    from other dispositions or uses of the facility or property.
          ``(c) Use of Proceeds From Disposition for School Repair and
    Maintenance.--
                ``(1) In general.--The Authority shall deposit any proceeds
            of the disposition of a facility or property under this section
            in the Board of Education Real Property Maintenance and
            Improvement Fund (as established by the Real Property Disposal
            Act of 1990), to be used for the construction, maintenance,
            improvement, rehabilitation, or repair of buildings and grounds
            which are used for educational purposes for public and public
            charter school students in the District of Columbia.
                ``(2) Consultation.--In disposing of a facility or property
            under this section, the Authority shall consult with the
            Superintendent of Schools of the District of Columbia, the
            Mayor, the Council, the Administrator of General Services, and
            education and community leaders involved in planning for an
            agency or authority that will design and administer a
            comprehensive long-term program for repair and improvement of
            District of Columbia public school facilities (as described in
            section 2552(a) of the District of Columbia School Reform Act of
            1995).
                ``(3) Legal effect of sale.--The Authority may dispose of a
            facility or property under this section by executing a proper
            deed and any other legal instrument for conveyance of title to
            the facility or property, and such deed shall convey good and
            valid title to the purchaser of the facility or property.
          ``(d) Facility or Property Described.--A facility or property
    described in this subsection is a facility or property which is
    described in section 2209(b)(1)(B) of the District of Columbia School
    Reform Act of 1995 and with respect to which the Authority has made the
    following determinations:
                ``(1) The property is no longer needed for purposes of
            operating a District of Columbia public school (as defined in
            section 2002 of the District of Columbia School Reform Act of
            1995).
                ``(2) The disposition of the property is in the best
            interests of education in the District of Columbia.

    [[Page 110 STAT. 3009-509]]

                ``(3) The Mayor (or any other department or agency of the
            District government) has failed to make substantial progress
            toward disposing the property during the 90-day period which
            begins on the date the Board of Education transfers jurisdiction
            over the property to the Mayor (or, in the case of property
            which is described in section 2209(b)(1)(B) of such Act as of
            the date of the enactment of this section, during the 90-day
            period which begins on the date of the enactment of this
            section).''.
          (b) Control Over Board of Education Real Property Maintenance and
    Improvement Fund.--
                (1) In general.--Section 2(b) of the Board of Education Real
            Property Disposal Act of 1990 (sec. 9-402(b), D.C. Code) is
            amended--
                        (A) by amending the second sentence to read as
                    follows: ``Subject to paragraph (6), the District of
                    Columbia Financial Responsibility and Management
                    Assistance Authority shall administer the Fund and
                    receive all payments into the Fund that are required by
                    law.''; and
                        (B) by adding at the end the following new
                    paragraph:
          ``(6) Upon the establishment of an agency or authority within the
    District of Columbia government to administer a public schools
    facilities revitalization plan pursuant to section 2552(a)(2) of the
    District of Columbia School Reform Act of 1995, such agency or authority
    shall administer the Fund and receive all payments into the Fund that
    are required by law.''.
                (2) Conforming amendments.--Section 2(b) of the Board of
            Education Real Property Disposal Act of 1990 (sec. 9-402(b),
            D.C. Code) is amended--
                        (A) in the third sentence of paragraph (1), by
                    striking ``; provided that the Board'' and all that
                    follows and inserting a period; and
                        (B) by striking paragraph (5).
          (c) Clerical Amendment.--The table of contents of subtitle C of
    title II of the District of Columbia Financial Responsibility and
    Management Assistance Act of 1995 is amended by adding at the end the
    following new item:

    ``Sec. 225. Disposition of certain school property.''.

                                    CHAPTER 3

                          ENERGY AND WATER DEVELOPMENT

                          DEPARTMENT OF DEFENSE--CIVIL

                             DEPARTMENT OF THE ARMY

                            Corps of Engineers--Civil

                       operation and maintenance, general

          For an additional amount for ``Operation and Maintenance,
    General'' for emergency expenses resulting from Hurricane Fran and other
    natural disasters of 1996, $19,000,000, to remain available until
    expended: Provided: That such amount is designated by Congress as an
    emergency requirement pursuant to section

    [[Page 110 STAT. 3009-510]]

    251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit Control Act
    of 1985, as amended.

                                GENERAL PROVISION

          Sec. 5301. None of the funds appropriated in the Energy and Water
    Development Appropriations Act, 1997 may be made available to the
    Tennessee Valley Authority if the Tennessee Valley Authority is imposing
    a performance deposit in connection with residential shoreline
    alteration permits.

                                    CHAPTER 4

                               LEGISLATIVE BRANCH

                            HOUSE OF REPRESENTATIVES

                              Salaries and Expenses

                                  (rescission)

          Immediately upon enactment of this Act, of the funds appropriated
    in the Legislative Branch Appropriations Act, 1996, for the House of
    Representatives under the heading ``SALARIES AND EXPENSES'', there is
    rescinded $500,000, specified for the following heading and account:
                (1) ``ALLOWANCES AND EXPENSES'', $500,000, as follows: (A)
            ``Government contributions to employees' life insurance fund,
            retirement funds, Social Security fund, Medicare fund, health
            benefits fund, and worker's and unemployment compensation.''

                                   JOINT ITEMS

                              Capitol Police Board

                                 Capitol Police

                                    salaries

                                  (rescission)

          Immediately upon enactment of this Act, of the funds appropriated
    under this heading in Public Law 104-53, $3,000,000 are rescinded.

                                general expenses

          For an additional amount for the Capitol Police Board for
    necessary expenses for the design and installation of security systems
    for the Capitol buildings and grounds, $3,250,000, which shall remain
    available until expended.

    [[Page 110 STAT. 3009-511]]

                            ARCHITECT OF THE CAPITOL

                          Capitol Buildings and Grounds

                                capitol buildings

          For an additional amount for ``Capitol Buildings and Grounds,
    Capitol Buildings'', $250,000, to remain available until expended, for
    architectural and engineering services related to the design and
    installation of security systems for Capitol buildings and grounds.

                             senate office buildings

          Of the funds appropriated under the heading, ``ARCHITECT OF THE
    CAPITOL, Capitol Buildings and Grounds, Senate office buildings'' in
    Public Law 104-53, $650,000 shall remain available until September 30,
    1997 for furniture, furnishings, and equipment for the Senate employees'
    child care center.

                               GENERAL PROVISIONS

                   congressional award act amendments of 1996

          Sec. 5401. (a) Extension of Requirements Regarding Financial
    Operations of Congressional Award Program; Noncompliance With
    Requirements.--Section 5(c)(2)(A) of the Congressional Award Act (2
    U.S.C. 804(c)(2)(A)) is amended by striking ``and 1994'' and inserting
    ``1994, 1995, 1996, 1997, and 1998''.
          (b) Termination.--Section 9 of the Congressional Award Act (2
    U.S.C. 808) is amended by striking ``October 1, 1995'' and inserting
    ``October 1, 1999''.
          (c) Savings <<NOTE: 2 USC 808 note.>> Provisions.--During the
    period of October 1, 1995, through the date of the enactment of this
    section, all actions and functions of the Congressional Award Board
    under the Congressional Award Act shall have the same effect as though
    no lapse or termination of the Congressional Award Board ever occurred.

          bill emerson hall in the house of representatives page school

          Sec. 5402. <<NOTE: 2 USC 141 note.>> The Founders Hall
    instructional area in the House of Representatives Page School, located
    in the Thomas Jefferson Building of the Library of Congress, shall be
    known and designated as ``Bill Emerson Hall''.

                                    CHAPTER 5

                          DEPARTMENT OF TRANSPORTATION

                         Federal Aviation Administration

                                   operations

                         (airport and airway trust fund)

          For additional operating expenses of the Federal Aviation
    Administration for airport security activities, $57,900,000, to be
    derived from the Airport and Airway Trust Fund and to remain available
    until September 30, 1998: Provided, That of the funds

    [[Page 110 STAT. 3009-512]]

    provided, $8,900,000 shall be for establishment of additional explosive
    detection K-9 teams at airports; $5,500,000 shall be for airport
    vulnerability assessments; $18,000,000 shall be for the hire of
    additional aviation security personnel: and $25,500,000 shall be for the
    hire of additional aviation safety inspectors and contract weather
    observers, air traffic controller training, and implementation of
    recommendations of the Federal Aviation Administration's ``Ninety Day
    Safety Review'', dated September 16, 1996: Provided further, That such
    amount is designated by Congress as an emergency requirement pursuant to
    section 251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit
    Control Act of 1985, as amended.

                            facilities and equipment

                         (airport and airway trust fund)

          For additional necessary expenses for ``Facilities and
    Equipment'', $147,700,000, to be derived from the Airport and Airway
    Trust Fund and to remain available until September 30, 1999: Provided,
    That of the funds provided, $144,200,000 shall only be for non-
    competitive contracts or cooperative agreements with air carriers and
    airport authorities, which provide for the Federal Aviation
    Administration to purchase and assist in installation of advanced
    security equipment for the use of such entities and $3,500,000 shall be
    for accelerated development and deployment of the Online Aviation Safety
    Information System: Provided further, That such amount is designated by
    Congress as an emergency requirement pursuant to section 251(b)(2)(D)(i)
    of the Balanced Budget and Emergency Deficit Control Act of 1985, as
    amended.

                     research, engineering, and development

                         (airport and airway trust fund)

          For an additional amount for ``Research, Engineering, and
    Development'', $21,000,000, to be derived from the Airport and Airway
    Trust Fund and to remain available until September 30, 1999: Provided,
    That the funds provided shall only be for aviation security research and
    operational testing of document trace scanners and explosive detection
    portals for airport passengers: Provided further, That such amount is
    designated by Congress as an emergency requirement pursuant to section
    251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit Control Act
    of 1985, as amended.

                           grants-in-aid for airports

                         (airport and airway trust fund)

                     (rescission of contract authorization)

          Of the available contract authority balances under this heading,
    $50,000,000 are rescinded.

    [[Page 110 STAT. 3009-513]]

                         Federal Highway Administration

                          highway-related safety grants

                              (highway trust fund)

                     (rescission of contract authorization)

          Of the available contract authority balances under this heading,
    $9,100,000 are rescinded.

                              federal-aid highways

                              (highway trust fund)

          For an additional amount for ``Emergency Relief Program'' for
    emergency expenses resulting from Hurricanes Fran and Hortense and for
    other disasters, as authorized by 23 U.S.C. 125, $82,000,000, to be
    derived from the Highway Trust Fund and to remain available until
    expended: Provided, That the entire amount is designated by Congress as
    an emergency requirement pursuant to section 251(b)(2)(D)(i) of the
    Balanced Budget and Emergency Deficit Control Act of 1985, as amended.

                           motor carrier safety grants

                              (highway trust fund)

                     (rescission of contract authorization)

          Of the available contract authority balances under this heading,
    $12,300,000 are rescinded.

                 National Highway Traffic Safety Administration

                          highway traffic safety grants

                              (highway trust fund)

                     (rescission of contract authorization)

          Of the available contract authority balances under this heading,
    $11,800,000 are rescinded.

                         Federal Railroad Administration

                     northeast corridor improvement program

          For additional necessary expenses related to Northeast Corridor
    improvements authorized by title VII of the Railroad Revitalization and
    Regulatory Reform Act of 1976, as amended (45 U.S.C. 851 et seq.) and 49
    U.S.C. 24909, $60,000,000, to remain available until September 30, 1999.

                          direct loan financing program

          Notwithstanding any other provision of law, $58,680,000, for
    direct loans not to exceed $400,000,000 consistent with the purposes of
    section 505 of the Railroad Revitalization and Regulatory Reform Act of
    1976 (45 U.S.C. 825) as in effect on September 30, 1988, to the Alameda
    Corridor Transportation Authority to continue the

    [[Page 110 STAT. 3009-514]]

    Alameda Corridor Project, including replacement of at-grade rail lines
    with a below-grade corridor and widening of the adjacent major highway:
    Provided, That loans not to exceed the following amounts shall be made
    on or after the first day of the fiscal year indicated:

    Fiscal year 1997............................................$140,000,000
    Fiscal year 1998............................................$140,000,000
    Fiscal year 1999............................................$120,000,000

    Provided further, That any loan authorized under this section shall be
    structured with a maximum 30-year repayment after completion of
    construction at an annual interest rate of not to exceed the 30-year
    United States Treasury rate and on such terms and conditions as deemed
    appropriate by the Secretary of Transportation: Provided further, That
    specific provisions of section 505 (a), (b) and (d) through (h) shall
    not apply: Provided further, That the Alameda Corridor Transportation
    Authority shall be deemed to be a financially responsible person for
    purposes of section 505 of the Act.

              grants to the national railroad passenger corporation

          For additional expenses necessary for ``Grants to the National
    Railroad Passenger Corporation'', $22,500,000 for operating losses, to
    remain available until September 30, 1997: Provided, That amounts made
    available shall only be used to continue service on routes the National
    Railroad Passenger Corporation currently plans to terminate.

                  Research and Special Programs Administration

                          research and special programs

          For additional expenses necessary for ``Research and Special
    Programs'' to conduct vulnerability and threat assessments of the
    nation's transportation system, $3,000,000, to remain available until
    September 30, 1999: Provided, That the entire amount is designated by
    Congress as an emergency requirement pursuant to section 251(b)(2)(D)(i)
    of the Balanced Budget and Emergency Deficit Control Act of 1985, as
    amended.

                      National Transportation Safety Board

                              salaries and expenses

          For an additional amount for ``Salaries and Expenses'',
    $6,000,000, to reimburse other federal agencies for previously incurred
    costs of recovering wreckage from TWA flight 800, and for other costs
    related to the TWA 800 accident investigation: Provided, That the entire
    amount is designated by Congress as an emergency requirement pursuant to
    section 251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit
    Control Act of 1985, as amended.

                                 emergency fund

          For necessary expenses of the National Transportation Safety Board
    for accident investigations, including hire of passenger motor vehicles
    and aircraft; services as authorized by 5 U.S.C. 3109,

    [[Page 110 STAT. 3009-515]]

    but at rates for individuals not to exceed the per diem rate equivalent
    to the rate for a GS-18; uniforms, or allowances therefor, as authorized
    by law (5 U.S.C. 5901-5902), $1,000,000: Provided, That the entire
    amount is designated by Congress as an emergency requirement pursuant to
    section 251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit
    Control Act of 1985, as amended.

                               GENERAL PROVISIONS

          Sec. 5501. In fiscal year 1997, the Administrator of the Federal
    Aviation Administration may establish at individual airports such
    consortia of government and aviation industry representatives as the
    Administrator may designate to provide advice on matters related to
    aviation security and safety: Provided, That such consortia shall not be
    considered Federal advisory committees.
          Sec. 5502. In cases where an emergency ocean condition causes
    erosion of a bank protecting a scenic highway or byway, fiscal year 1996
    or fiscal year 1997 Federal Highway Administration Emergency Relief
    funds can be used to halt the erosion and stabilize the bank if such
    action is necessary to protect the highway from imminent failure and is
    less expensive than highway relocation.
          Sec. 5503. Of the funds deducted under 23 U.S.C. subsection 104(a)
    for fiscal year 1997, $30,000,000 shall be available for allocation to
    States authorized by section 1069(y) of Public Law 102-240.
          Sec. 5504. Conveyance of Property in Traverse City, Michigan. (a)
    Authority To Convey.--The Secretary of Transportation (or any other
    official having control over the property described in subsection (b))
    shall expeditiously convey to the Traverse City Area Public School
    District in Traverse City, Michigan, without consideration, all right,
    title, and interest of the United States in and to the property
    identified, described, and determined by the Secretary under subsection
    (b), subject to all easements and other interests in the property held
    by any other person.
          (b) Identification of Property.--The Secretary shall identify,
    describe, and determine the property to be conveyed pursuant to this
    section.
          (c) Reversionary Interest.--In addition to any term or condition
    established pursuant to subsection (a) or (d), any conveyance of
    property described in subsection (b) shall be subject to the condition
    that all right, title, and interest in and to the property so conveyed
    shall immediately revert to the United States if the property, or any
    part thereof, ceases to be used by the Traverse City Area Public School
    District.
          (d) Terms of Conveyance.--The conveyance of property under this
    section shall be subject to such conditions as the Secretary considers
    to be necessary to assure that--
                (1) the pump room located on the property shall continue to
            be operated and maintained by the United States for as long as
            it is needed for this purpose;
                (2) the United States shall have an easement of access to
            the property for the purpose of operating and maintaining the
            pump room; and
                (3) the United States shall have the right, at any time, to
            enter the property without notice for the purpose of operating
            and maintaining the pump room.

    [[Page 110 STAT. 3009-516]]

          Sec. 5505. Authority To Convey Whitefish Point Light Station Land.
          (a) Authority To Convey.--
                (1) In general.--Except as otherwise provided in this
            section, the Secretary of the Interior (in this section referred
            to as the ``Secretary'') may convey, by an appropriate means of
            conveyance, all right, title, and interest of the United States
            in 1 of the 3 parcels comprising the land on which the United
            States Coast Guard Whitefish Point Light Station is situated (in
            this section referred to as the ``Property''), to each of the
            Great Lakes Shipwreck Historical Society, located in Sault Ste.
            Marie, Michigan, the United States Fish and Wildlife Service,
            and the Michigan Audubon Society (each of which is referred to
            in this section as a ``recipient''), subject to all easements,
            conditions, reservations, exceptions, and restrictions contained
            in prior conveyances of record.
                (2) Limitation.--Notwithstanding paragraph (1), the
            Secretary shall retain for the United States all right, title,
            and interest in--
                        (A) any historical artifact, including any lens or
                    lantern, and
                        (B) the light, antennas, sound signal, towers,
                    associated lighthouse equipment, and any electronic
                    navigation equipment, which are active aids to
                    navigation,
            which is located on the Property, or which relates to the
            Property.
                (3) Identification of the property.--The Secretary may
            identify, describe, and determine the parcels to be conveyed
            pursuant to this section.
                (4) Rights of access.--If necessary to ensure access to a
            public roadway for a parcel conveyed under this section, the
            Secretary shall convey with the parcel an appropriate
            appurtenant easement over another parcel conveyed under this
            section.
                (5) Easement for public along shoreline.--In each conveyance
            under this section of property located on the shoreline of Lake
            Superior, the Secretary shall retain for the public, for public
            walkway purposes, a right-of-way along the shoreline that
            extends 30 feet inland from the mean high water line.
          (b) Terms and Conditions.--
                (1) In general.--Any conveyance pursuant to subsection (a)
            shall be made--
                        (A) without payment of consideration; and
                        (B) subject to such terms and conditions as the
                    Secretary considers appropriate.
                (2) Maintenance of navigation functions.--The Secretary
            shall ensure that any conveyance pursuant to this section is
            subject to such conditions as the Secretary considers to be
            necessary to assure that--
                        (A) the light, antennas, sound signal, towers, and
                    associated lighthouse equipment, and any electronic
                    navigation equipment, which are located on the Property
                    and which are active aids to navigation shall continue
                    to be operated and maintained by the United States for
                    as long as they are needed for this purpose;

    [[Page 110 STAT. 3009-517]]

                        (B) the recipients may not interfere or allow
                    interference in any manner with such aids to navigation
                    without express written permission from the United
                    States;
                        (C) there is reserved to the United States the right
                    to relocate, replace, or add any aids to navigation, or
                    make any changes on any portion of the Property as may
                    be necessary for navigation purposes;
                        (D) the United States shall have the right, at any
                    time, to enter the Property without notice for the
                    purpose of maintaining aids to navigation;
                        (E) the United States shall have--
                              (i) an easement of access to and across the
                          Property for the purpose of maintaining the aids
                          to navigation and associated equipment in use on
                          the Property; and
                              (ii) an easement for an arc of visibility; and
                        (F) the United States shall not be responsible for
                    the cost and expense of maintenance, repair, and upkeep
                    of the Property.
                (3) Maintenance obligation.--The recipients shall not have
            any obligation to maintain any active aid to navigation
            equipment on any parcel conveyed pursuant to this section.
          (c) Property To Be Maintained in Accordance With Certain Laws.--
    Each recipient shall maintain the parcel conveyed to the recipient
    pursuant to subsection (a) in accordance with the provisions of the
    National Historic Preservation Act (16 U.S.C. 470 et seq.), and other
    applicable laws.
          (d) Maintenance Standard.--Each recipient shall maintain the
    parcel conveyed to the recipient pursuant to subsection (a), at its own
    cost and expense, in a proper, substantial, and workmanlike manner,
    including the easements of access, the easement for an arc of
    visibility, the nuisance easement, and the underground easement.
          (e) Shared Use and Occupancy Agreement.--The Secretary shall
    require, as a condition of each conveyance of property under this
    section, that all of the recipients have entered into the same agreement
    governing the shared use and occupancy of the existing Whitefish Point
    Light Station facilities. The agreement shall be drafted by the
    recipients and shall include--
                (1) terms governing building occupancy and access of
            recipient staff and public visitors to public restrooms, the
            auditorium, and the parking lot; and
                (2) terms requiring that each recipient shall be responsible
            for paying a pro rata share of the costs of operating and
            maintaining the existing Whitefish Point Light Station
            facilities, that is based on the level of use and occupancy of
            the facilities by the recipient.
          (f) Limitations on Development and Impairing Uses.--It shall be a
    term of each conveyance under this section that--
                (1) no development of new facilities or expansion of
            existing facilities or infrastructure on property conveyed under
            this section may occur, except for purposes of implementing the
            Whitefish Point Comprehensive Plan of October 1992 or for a gift
            shop, unless--
                        (A) each of the recipients consents to the
                    development or expansion in writing;

    [[Page 110 STAT. 3009-518]]

                        (B) there has been a reasonable opportunity for
                    public comment on the development or expansion, and full
                    consideration has been given to such public comment as
                    is provided; and
                        (C) the development or expansion is consistent with
                    preservation of the Property in its predominantly
                    natural, scenic, historic, and forested condition; and
                (2) any use of the Property or any structure located on the
            property which may impair or interfere with the conservation
            values of the Property is expressly prohibited.
          (g) Revisionary Interest.--
                (1) In general.--All right, title, and interests in and to
            property and interests conveyed under this section shall revert
            to the United States and thereafter be administered by the
            Secretary of Interior acting through the Director of the United
            States Fish and Wildlife Service, if--
                        (A) in the case of such property and interests
                    conveyed to the Great Lakes Shipwreck Historical
                    Society, the property or interests cease to be used for
                    the purpose of historical interpretation;
                        (B) in the case of such property and interests
                    conveyed to the Michigan Audubon Society, the property
                    or interests cease to be used for the purpose of
                    environmental protection, research, and interpretation;
                    or
                        (C) in the case any property and interests conveyed
                    to a recipient referred to in subparagraph (A) or (B)--
                              (i) there is any violation of any term or
                          condition of the conveyance to that recipient; or
                              (ii) the recipient has ceased to exist.
                (2) Authority to enforce reversionary interest.--The
            Secretary of the Interior, acting through the Director of the
            United States Fish and Wildlife Service, shall have the
            authority--
                        (A) to determine for the United States Government
                    whether any act or omission of a recipient results in a
                    reversion of property and interests under paragraph (1);
                    and
                        (B) to initiate a civil action to enforce that
                    reversion, after notifying the recipient of the intent
                    of the Secretary of the Interior to initiate that
                    action.
                (3) Maintenance of navigation functions.--In the event of a
            reversion of property under this subsection, the Secretary of
            the Interior shall administer the property subject to any
            conditions the Secretary of Transportation considers to be
            necessary to maintain the navigation functions.
          Sec. 5506. Conveyance of Lighthouses.
          (a) Authority To Convey.--
                (1) In general.--The Secretary of Transportation or the
            Secretary of the Interior, as appropriate, shall convey, by an
            appropriate means of conveyance, all right, title, and interest
            of the United States in and to each of the following properties:
                        (A) Saint Helena Island Light Station, located in
                    MacKinac County, Moran Township, Michigan, to the Great
                    Lakes Lighthouse Keepers Association.
                        (B) Presque Isle Light Station, located in Presque
                    Isle Township, Michigan, to Presque Isle Township,
                    Presque Isle County, Michigan.

    [[Page 110 STAT. 3009-519]]

                (2) Identification of property.--The Secretary may identify,
            describe, and determine the property to be conveyed under this
            subsection.
                (3) Exception.--The Secretary may not convey any historical
            artifact, including any lens or lantern, located on the property
            at or before the time of the conveyance.
          (b) Terms of Conveyance.--
                (1) In general.--The conveyance of property under this
            section shall be made--
                        (A) without payment of consideration; and
                        (B) subject to the conditions required by this
                    section and other terms and conditions the Secretary may
                    consider appropriate.
                (2) Reversionary interest.--In addition to any term or
            condition established under this section, the conveyance of
            property under this subsection shall be subject to the condition
            that all right, title, and interest in the property shall
            immediately revert to the United States if--
                        (A) the property, or any part of the property--
                              (i) ceases to be used as a nonprofit center
                          for the interpretation and preservation of
                          maritime history;
                              (ii) ceases to be maintained in a manner that
                          ensures its present or future use as a Coast Guard
                          aid to navigation; or
                              (iii) ceases to be maintained in a manner
                          consistent with the provisions of the National
                          Historic Preservation Act of 1966 (16 U.S.C. 470
                          et seq.); or
                        (B) at least 30 days before that reversion, the
                    Secretary of Transportation provides written notice to
                    the owner that the property is needed for national
                    security purposes.
                (3) Maintenance of navigation functions.--A conveyance of
            property under this section shall be made subject to the
            conditions that the Secretary of Transportation considers to be
            necessary to assure that--
                        (A) the lights, antennas, sound signal, electronic
                    navigation equipment, and associated lighthouse
                    equipment located on the property conveyed, which are
                    active aids to navigation, shall continue to be operated
                    and maintained by the United States for as long as they
                    are needed for this purpose;
                        (B) the owner of the property may not interfere or
                    allow interference in any manner with aids to navigation
                    without express written permission from the Secretary of
                    Transportation;
                        (C) there is reserved to the United States the right
                    to relocate, replace or add any aid to navigation or
                    make any changes to the property as may be necessary for
                    navigational purposes;
                        (D) the United States shall have the right, at any
                    time, to enter the property without notice for the
                    purpose of maintaining aids to navigation; and
                        (E) the United States shall have an easement of
                    access to and across the property for the purpose of
                    maintaining the aids to navigation in use on the
                    property.

    [[Page 110 STAT. 3009-520]]

                (4) Obligation limitation.--The owner of property conveyed
            under this section is not required to maintain any active aid to
            navigation equipment on the property.
                (5) Property to be maintained in accordance with certain
            laws.--The owner of property conveyed under this section shall
            maintain the property in accordance with the National Historic
            Preservation Act of 1966 (16 U.S.C. 470 et seq.) and other
            applicable laws.
          (c) Maintenance Standard.--The owner of any property conveyed
    under this section, at its own cost and expense, shall maintain the
    property in a proper, substantial, and workmanlike manner.
          (d) Definitions.--For purposes of this section:
                (1) the term ``owner'' means the person identified in
            subsection a(1)(A) and (B), and includes any successor of assign
            of that person.
                (2) The term ``Presque Isle Light Station'' includes the
            light tower, attached dwelling, detached dwelling, 3-car garage,
            and any other improvements on that parcel of land.

                                    CHAPTER 6

                           DEPARTMENT OF THE TREASURY

                  Community Development Financial Institutions

        community development financial institutions fund program account

          For an additional amount for ``Community Development Financial
    Institutions Fund Program Account'' for grants, loans, and technical
    assistance to qualifying community development lenders, $5,000,000, to
    remain available until September 30, 1998, of which $850,000 may be used
    for the cost of direct loans: Provided, That the cost of direct loans,
    including the cost of modifying such loans, shall be as defined in
    section 502 of the Congressional Budget Act of 1974.

                         Environmental Protection Agency

                             science and technology

          For an additional amount for ``Science and Technology'',
    $10,000,000, to remain available until September 30, 1998, to conduct
    health effects research to carry out the purposes of the Safe Drinking
    Water Act Amendments of 1996, Public Law 104-182.

                      environmental programs and management

          For an additional amount for ``Environmental Programs and
    Management'', $42,221,000, to remain available until September 30, 1998,
    of which $30,000,000 is to carry out the purposes of the Safe Drinking
    Water Act Amendments of 1996, Public Law 104-182, and the purposes of
    the Food Quality Protection Act of 1996, Public Law 104-170, and of
    which $10,221,000 is for pesticide residue data collection for use in
    risk assessment activities.

    [[Page 110 STAT. 3009-521]]

                       state and tribal assistance grants

          For an additional amount for ``State and Tribal Assistance
    Grants'', $35,000,000, to remain available until expended, for a grant
    to the City of Boston, Massachusetts, subject to an appropriate cost
    share as determined by the Administrator, for the construction of
    wastewater treatment facilities.

                       Federal Emergency Management Agency

                              salaries and expenses

          For an additional amount for ``Salaries and Expenses'' to increase
    Federal, State, and local preparedness for mitigating and responding to
    the consequences of terrorism, $3,000,000.

                  emergency management planning and assistance

          For an additional amount for ``Emergency Management Planning and
    Assistance'' to increase Federal, State, and local preparedness for
    mitigating and responding to the consequences of terrorism, $12,000,000.

                          national flood insurance fund

          Section 1309(a)(2) of the National Flood Insurance Act (42 U.S.C.
    4016(a)(2)), is amended by striking ``$1,000,000,000'' and inserting in
    lieu thereof ``$1,500,000,000 through September 30, 1997, and
    $1,000,000,000 thereafter''.

                     Department of Health and Human Services

                           office of consumer affairs

          For necessary expenses of the Office of Consumer Affairs,
    including services authorized by 5 U.S.C. 3109, but at rates for
    individuals not to exceed the per diem rate equivalent to the rate for
    GS-18, $1,500,000: Provided, That none of the funds provided under this
    heading may be made available for any other activities within the
    Department of Health and Human Services.

                  National Aeronautics and Space Administration

                       science, aeronautics and technology

          For an additional amount for ``Science, Aeronautics and
    Technology'', $5,000,000, to remain available until September 30, 1998.

                                    CHAPTER 7

                        INTERNATIONAL SECURITY ASSISTANCE

         nonproliferation, anti-terrorism, demining and related programs

          For an additional amount for nonproliferation, anti-terrorism and
    related programs and activities, $18,000,000, to carry out the
    provisions of chapter 8 of part II of the Foreign Assistance Act of 1961
    for anti-terrorism assistance.

    [[Page 110 STAT. 3009-522]]

                       foreign military financing program

          For an additional amount for grants to enable the President to
    carry out the provisions of section 23 of the Arms Export Control Act,
    $60,000,000.

                             peacekeeping operations

          For necessary expenses to carry out the provisions of section 551
    of the Foreign Assistance Act of 1961, $65,000,000: Provided, That none
    of the funds appropriated under this paragraph shall be obligated or
    expended except as provided through the regular notification procedures
    of the Committees on Appropriations.

                                    CHAPTER 8

                               GENERAL PROVISIONS

          Sec. 5801. Of the amounts made available in Title IV of the
    Department of Defense Appropriations Act, 1997, under the heading
    ``Research, Development, Test and Evaluation, Defense-Wide'',
    $56,232,000 shall be made available only for the Corps Surface-to-Air
    Missile (CORPS SAM) program.
          Sec. 5802. <<NOTE: 10 USC 2012 note.>> There is hereby established
    on the books of the Treasury an account, ``Support for International
    Sporting Competitions, Defense'' (hereinafter referred to in this
    section as the ``Account'') to be available until expended for
    logistical and security support for international sporting competitions
    (other than pay and non-travel-related allowances of members of the
    Armed Forces of the United States, except for members of the reserve
    components thereof called or ordered to active duty in connection with
    providing such support): Provided, That there shall be credited to the
    Account: (a) unobligated balances of the funds appropriated in Public
    Laws 103-335 and 104-61 under the headings ``Summer Olympics''; (b) any
    reimbursements received by the Department of Defense in connection with
    support to the 1993 World University Games; the 1994 World Cup Games;
    and the 1996 Games of the XXVI Olympiad held in Atlanta, Georgia; (c)
    any reimbursements received by the Department of Defense after the date
    of enactment of this Act for logistical and security support provided to
    international sporting competitions; and (d) amounts specifically
    appropriated to the Account, all to remain available until expended:
    Provided further, That none of the funds made available to the Account
    may be obligated until 45 days after the congressional defense
    committees have been notified in writing by the Secretary of Defense as
    to the purpose for which these funds will be obligated.
          Sec. 5803. In addition to the amounts made available in Title IV
    of the Department of Defense Appropriations Act, 1997, under the heading
    ``Research, Development, Test and Evaluation, Defense-Wide'',
    $100,000,000 is hereby appropriated and made available only for the
    Dual-Use Applications Program.

    [[Page 110 STAT. 3009-523]]

     DIVISION <<NOTE: Oregon Resource Conservation Act of 1996.>> B--OREGON
    RESOURCE CONSERVATION ACT OF 1996

    SECTION 1. SHORT TITLE.

          This Act may be cited as the ``Oregon Resource Conservation Act of
    1996''.

       TITLE I--OPAL <<NOTE: Opal Creek Wilderness and Opal Creek Scenic
     Recreation Area Act of 1996. 16 USC 545b note.>> CREEK WILDERNESS AND
    SCENIC RECREATION AREA

    SEC. 101. SHORT TITLE.

          This title may be cited as the ``Opal Creek Wilderness and Opal
    Creek Scenic Recreation Area Act of 1996''.

    SEC. 102. DEFINITIONS.

          In this title:
                (1) Bull of the woods wilderness.--The term ``Bull of the
            Woods Wilderness'' means the land designated as wilderness by
            section 3(4) of the Oregon Wilderness Act of 1984 (Public Law
            98-328; 16 U.S.C. 1132 note).
                (2) Opal creek wilderness.--The term ``Opal Creek
            Wilderness'' means certain land in the Willamette National
            Forest in the State of Oregon comprising approximately 12,800
            acres, as generally depicted on the map entitled ``Proposed Opal
            Creek Wilderness and Scenic Recreation Area'', dated July 1996.
                (3) Scenic recreation area.--The term ``Scenic Recreation
            Area'' means the Opal Creek Scenic Recreation Area, comprising
            approximately 13,000 acres, as generally depicted on the map
            entitled ``Proposed Opal Creek Wilderness and Scenic Recreation
            Area'', dated July 1996 and established under section 104(a)(3)
            of this title.
                (4) Secretary.--The term ``Secretary'' means the Secretary
            of Agriculture.

    SEC. 103. PURPOSES.

          The purposes of this title are:
                (1) to establish a wilderness and scenic recreation area to
            protect and provide for the enhancement of the natural, scenic,
            recreational, historic, and cultural resources of the area in
            the vicinity of Opal Creek;
                (2) to protect and support the economy of the communities in
            the Santiam Canyon; and
                (3) to provide increased protection for an important
            drinking water source for communities served by the north
            Santiam River.

    SEC. 104. <<NOTE: 16 USC 1132 note.>> ESTABLISHMENT OF OPAL CREEK
                WILDERNESS AND SCENIC RECREATION AREA.
          (a) Establishment.--On a determination by the Secretary under
    subsection (b)--
                (1) the Opal Creek Wilderness, as depicted on the map
            described in section 102(2), is hereby designated as wilderness,
            subject to the provisions of the Wilderness Act of 1964, shall

    [[Page 110 STAT. 3009-524]]

            become a component of the National Wilderness System, and shall
            be known as the Opal Creek Wilderness;
                (2) the part of the Bull of the Woods Wilderness that is
            located in the Willamette National Forest shall be incorporated
            into the Opal Creek Wildnerness; and
                (3) the Secretary shall establish the Opal Creek Scenic
            Recreation Area in the Willamette National Forest in the State
            of Oregon, comprising approximately 13,000 acres, as generally
            depicted on the map described in section 102(3).
          (b) Conditions.--The designations in subsection (a) shall not take
    effect unless the Secretary makes a determination, not later than 2
    years after the date of enactment of this title, that the following
    conditions have been met:
                (1) the following have been donated to the United States in
            an acceptable condition and without encumbrances--
                        (A) all right, title, and interest in the following
                    patented parcels of land--
                              (i) Santiam number 1, mineral survey number
                          992, as described in patent number 39-92-0002,
                          dated December 11, 1991;
                              (ii) Ruth Quartz Mine number 2, mineral survey
                          number 994, as described in patent number 39-91-
                          0012, dated February 12, 1991;
                              (iii) Morning Star Lode, mineral survey number
                          993, as described in patent number 36-91-0011,
                          dated February 12, 1991;
                        (B) all right, title, and interest held by any
                    entity other than the Times Mirror Land and Timber
                    Company, its successors and assigns, in and to lands
                    located in section 18, township 8 south, range 5 east,
                    Marion County, Oregon, Eureka numbers 6, 7, 8, and 13
                    mining claims; and
                        (C) an easement across the Hewitt, Starvation, and
                    Poor Boy Mill Sites, mineral survey number 990, as
                    described in patent number 36-91-0017, dated May 9,
                    1991. In the sole discretion of the Secretary, such
                    easement may be limited to administrative use if an
                    alternative access route, adequate and appropriate for
                    public use, is provided.
                (2) a binding agreement has been executed by the Secretary
            and the owners of record as of March 29, 1996, of the following
            interests, specifying the terms and conditions for the
            disposition of such interests to the United States Government--
                        (A) the lode mining claims known as Princess Lode,
                    Black Prince Lode, and King number 4 Lode, embracing
                    portions of sections 29 and 32, township 8 south, range
                    5 east, Willamette Meridian, Marion County, Oregon, the
                    claims being more particularly described in the field
                    notes and depicted on the plat of mineral survey number
                    887, Oregon; and
                        (B) Ruth Quartz Mine number 1, mineral survey number
                    994, as described in patent number 39-91-0012, dated
                    February 12, 1991.
          (c) Additions to the Wilderness and Scenic Recreation Areas.--
                (1) Lands or interests in lands conveyed to the United
            States under this section shall be included in and become

    [[Page 110 STAT. 3009-525]]

            part of, as appropriate, Opal Creek Wilderness or the Opal Creek
            Scenic Recreation Area.
                (2) On acquiring all or substantially all of the land
            located in section 36, township 8 south, range 4 east, of the
            Willamette Meridian, Marion County, Oregon, commonly known as
            the Rosboro section, by exchange, purchase from a willing
            seller, or by donation, the Secretary shall expand the boundary
            of the Scenic Recreation Area to include such land.
                (3) On acquiring all or substantially all of the land
            located in section 18, township 8 south, range 5 east, Marion
            County, Oregon, commonly known as the Times Mirror property, by
            exchange, purchase from a willing seller, or by donation, such
            land shall be included in and become a part of the Opal Creek
            Wilderness.

    SEC. 105. ADMINISTRATION OF THE SCENIC RECREATION AREA.

          (a) In General.--The Secretary shall administer the Scenic
    Recreation Area in accordance with this title and the laws (including
    regulations) applicable to the National Forest System.
          (b) Opal Creek Management Plan.--
                (1) In general.--Not later than 2 years after the date of
            establishment of the Scenic Recreation Area, the Secretary, in
            consultation with the advisory committee established under
            section 106(a), shall prepare a comprehensive Opal Creek
            Management Plan (Management Plan) for the Scenic Recreation
            Area.
                (2) Incorporation in land and resource management plan.--
            Upon its completion, the Opal Creek Management Plan shall become
            part of the land and resource management plan for the Willamette
            National Forest and supersede any conflicting provision in such
            land and resource management plan. Nothing in this paragraph
            shall be construed to supersede the requirements of the
            Endangered Species Act or the National Forest Management Act or
            regulations promulgated under those Acts, or any other law.
                (3) Requirements.--The Opal Creek Management Plan shall
            provide for a broad range of land uses, including--
                        (A) recreation;
                        (B) harvesting of nontraditional forest products,
                    such as gathering mushrooms and material to make
                    baskets; and
                        (C) educational and research opportunities.
                (4) Plan amendments.--The Secretary may amend the Opal Creek
            Management Plan as the Secretary may determine to be necessary,
            consistent with the procedures and purposes of this title.
          (c) Recreation.--
                (1) Recognition.--Congress recognizes recreation as an
            appropriate use of the Scenic Recreation Area.
                (2) Minimum levels.--The management plan shall permit
            recreation activities at not less than the levels in existence
            on the date of enactment of this title.
                (3) Higher levels.--The management plan may provide for
            levels of recreation use higher than the levels in existence on
            the date of enactment of this title if such uses are consistent
            with the protection of the resource values of Scenic Recreation
            Area.

    [[Page 110 STAT. 3009-526]]

                (4) The management plan may include public trail access
            through section 28, township 8 south, range 5 east, Willamette
            Meridian, to Battle Axe Creek, Opal Pool and other areas in the
            Opal Creek Wilderness and the Opal Creek Scenic Recreation Area.
          (d) Transportation Planning.--
                (1) In general.--Except as provided in this subparagraph,
            motorized vehicles shall not be permitted in the Scenic
            Recreation Area. To maintain reasonable motorized and other
            access to recreation sites and facilities in existence on the
            date of enactment of this title, the Secretary shall prepare a
            transportation plan for the Scenic Recreation Area that:
                        (A) evaluates the road network within the Scenic
                    Recreation Area to determine which roads should be
                    retained and which roads should be closed;
                        (B) provides guidelines for transportation and
                    access consistent with this title;
                        (C) considers the access needs of persons with
                    disabilities in preparing the transportation plan for
                    the Scenic Recreation Area;
                        (D) allows forest road 2209 beyond the gate to the
                    Scenic Recreation Area, as depicted on the map described
                    in 102(2), to be used by motorized vehicles only for
                    administrative purposes and for access by private
                    inholders, subject to such terms and conditions as the
                    Secretary may determine to be necessary; and
                        (E) restricts construction on or improvements to
                    forest road 2209 beyond the gate to the Scenic
                    Recreation Area to maintaining the character of the road
                    as it existed upon the date of enactment of this title,
                    which shall not include paving or widening. In order to
                    comply with subsection 107(b) of this title, the
                    Secretary may make improvements to forest road 2209 and
                    its bridge structures consistent with the character of
                    the road as it existed on the date of enactment of this
                    title.
          (e) Hunting and Fishing.--
                (1) In general.--Subject to applicable Federal and State
            law, the Secretary shall permit hunting and fishing in the
            Scenic Recreation Area.
                (2) Limitation.--The Secretary may designate zones in which,
            and establish periods when, no hunting or fishing shall be
            permitted for reasons of public safety, administration, or
            public use and enjoyment of the Scenic Recreation Area.
                (3) Consultation.--Except during an emergency, as determined
            by the Secretary, the Secretary shall consult with the Oregon
            State Department of Fish and Wildlife before issuing any
            regulation under this subsection.
          (f) Timber Cutting.--
                (1) In general.--Subject to paragraph (2), the Secretary
            shall prohibit the cutting and/or selling of trees in the Scenic
            Recreation Area.
                (2) Permitted cutting.--
                        (A) In general.--Subject to subparagraph (B), the
                    Secretary may allow the cutting of trees in the Scenic
                    Recreation Area only--
                              (i) for public safety, such as to control the
                          continued spread of a forest fire in the Scenic
                          Recreation

    [[Page 110 STAT. 3009-527]]

                          Area or on land adjacent to the Scenic Recreation
                          Area;
                              (ii) for activities related to administration
                          of the Scenic Recreation Area, consistent with the
                          Opal Creek Management Plan; or
                              (iii) for removal of hazard trees along trails
                          and roadways.
                        (B) Salvage sales.--The Secretary may not allow a
                    salvage sale in the Scenic Recreation Area.
          (g) Withdrawal.--
                (1) Subject to valid existing rights, all lands in the
            Scenic Recreation Area are withdrawn from--
                        (i) any form of entry, appropriation, or disposal
                    under the public land laws;
                        (ii) location, entry, and patent under the mining
                    laws; and
                        (iii) disposition under the mineral and geothermal
                    leasing laws.
          (h) Bornite Project.--
                (1) Nothing in this title shall be construed to interfere
            with or approve any exploration, mining, or mining-related
            activity in the Bornite Project Area, depicted on the map
            described in subsection 102(3), conducted in accordance with
            applicable laws.
                (2) Nothing in this title shall be construed to interfere
            with the ability of the Secretary to approve and issue, or deny,
            special use permits in connection with exploration, mining, and
            mining-related activities in the Bornite Project Area.
                (3) Motorized vehicles, roads, structures, and utilities
            (including but not limited to power lines and water lines) may
            be allowed inside the Scenic Recreation Area to serve the
            activities conducted on land within the Bornite Project.
                (4) After the date of enactment of this title, no patent or
            claim shall be issued for any mining claim under the general
            mining laws located within the Bornite Project Area.
          (i) Water Impoundments.--Notwithstanding the Federal Power Act (16
    U.S.C. 791a et seq.), the Federal Energy Regulatory Commission may not
    license the construction of any dam, water conduit, reservoir,
    powerhouse, transmission line, or other project work in the Scenic
    Recreation Area, except as may be necessary to comply with the
    provisions of subsection 105(h) with regard to the Bornite Project.
          (j) Cultural and Historic Resource Inventory.--
                (1) In general.--Not later than 1 year after the date of
            establishment of the Scenic Recreation Area, the Secretary shall
            review and revise the inventory of the cultural and historic
            resources on the public land in the Scenic Recreation Area
            developed pursuant to the Oregon Wilderness Act of 1984 (Public
            Law 98-328; 16 U.S.C. 1132).
                (2) Interpretation.--Interpretive activities shall be
            developed under the management plan in consultation with State
            and local historic preservation organizations and shall include
            a balanced and factual interpretation of the cultural,
            ecological, and industrial history of forestry and mining in the
            Scenic Recreation Area.
          (k) Participation.--So that the knowledge, expertise, and views of
    all agencies and groups may contribute affirmatively to

    [[Page 110 STAT. 3009-528]]

    the most sensitive present and future use of the Scenic Recreation Area
    and its various subareas for the benefit of the public:
                (1) Advisory council.--The Secretary shall consult on a
            periodic and regular basis with the advisory council established
            under section 106 with respect to matters relating to management
            of the Scenic Recreation Area.
                (2) Public participation.--The Secretary shall seek the
            views of private groups, individuals, and the public concerning
            the Scenic Recreation Area.
                (3) Other agencies.--The Secretary shall seek the views and
            assistance of, and cooperate with, any other Federal, State, or
            local agency with any responsibility for the zoning, planning,
            or natural resources of the Scenic Recreation Area.
                (4) Nonprofit agencies and organizations.--The Secretary
            shall seek the views of any nonprofit agency or organization
            that may contribute information or expertise about the resources
            and the management of the Scenic Recreation Area.

    SEC. 106. ADVISORY COUNCIL.

          (a) Establishment.--Not later than 90 days after the establishment
    of the Scenic Recreation Area, the Secretary shall establish an advisory
    council for the Scenic Recreation Area.
          (b) Membership.--The advisory council shall consist of not more
    than 13 members, of whom--
                (1) 1 member shall represent Marion County, Oregon, and
            shall be designated by the governing body of the county;
                (2) 1 member shall represent the State of Oregon and shall
            be designated by the Governor of Oregon; and
                (3) 1 member shall represent the city of Salem, and shall be
            designated by the mayor of Salem, Oregon;
                (4) 1 member from a city within a 25-mile radius of the Opal
            Creek Scenic Recreation Area, to be designated by the Governor
            of the State of Oregon from a list of candidates provided by the
            mayors of the cities located within a 25-mile radius of the Opal
            Creek Scenic Recreation Area; and
                (5) not more than 9 members shall be appointed by the
            Secretary from among persons who, individually or through
            association with a national or local organization, have an
            interest in the administration of the Scenic Recreation Area,
            including, but not limited to, representatives of the timber
            industry, environmental organizations, the mining industry,
            inholders in the Opal Creek Wilderness and Scenic Recreation
            Area, economic development interests and Indian Tribes.
          (c) Staggered Terms.--Members of the advisory council shall serve
    for staggered terms of three years.
          (d) Chairman.--The Secretary shall designate one member of the
    advisory council as chairman.
          (e) Vacancies.--The Secretary shall fill a vacancy on the advisory
    council in the same manner as the original appointment.
          (f) Compensation.--Members of the advisory council shall receive
    no compensation for service on the advisory council.

    SEC. 107. GENERAL PROVISIONS.

          (a) Land Acquisition.--
                (1) In general.--Subject to the other provisions of this
            title the Secretary may acquire any lands or interests in land
            in the Scenic Recreation Area or the Opal Creek Wilderness

    [[Page 110 STAT. 3009-529]]

            that the Secretary determines are needed to carry out this
            title.
                (2) Public land.--Any lands or interests in land owned by a
            State or a political subdivision of a State may be acquired only
            by donation or exchange.
                (3) Condemnation.--Within the boundaries of the Opal Creek
            Wilderness or the Scenic Recreation Area, the Secretary may not
            acquire any privately owned land or interest in land without the
            consent of the owner unless the Secretary finds that--
                        (A) the nature of land use has changed
                    significantly, or the landowner has demonstrated intent
                    to change the land use significantly, from the use that
                    existed on the date of the enactment of this title; and
                        (B) acquisition by the Secretary of the land or
                    interest in land is essential to ensure use of the land
                    or interest in land in accordance with the purposes of
                    this title or the management plan prepared under section
                    105(b).
                (4) Nothing in this title shall be construed to enhance or
            diminish the condemnation authority available to the Secretary
            outside the boundaries of the Opal Creek Wilderness or the
            Scenic Recreation Area.
          (b) Environmental Response Actions and Cost Recovery.--
                (1) Response actions.--Nothing in this title shall limit the
            authority of the Secretary or a responsible party to conduct an
            environmental response action in the Scenic Recreation Area in
            connection with the release, threatened release, or cleanup of a
            hazardous substance, pollutant, or contaminant, including a
            response action conducted under the Comprehensive Environmental
            Response, Compensation, and Liability Act of 1980 (42 U.S.C.
            9601 et seq.).
                (2) Liability.--Nothing in this title shall limit the
            authority of the Secretary or a responsible party to recover
            costs related to the release, threatened release, or cleanup of
            any hazardous substance or pollutant or contaminant in the
            Scenic Recreation Area.
          (c) Maps and Description.--
                (1) In general.--As soon as practicable after the date of
            enactment of this title, the Secretary shall file a map and a
            boundary description for the Opal Creek Wilderness and for the
            Scenic Recreation Area with the Committee on Resources of the
            House of Representatives and the Committee on Energy and Natural
            Resources of the Senate.
                (2) Force and effect.--The boundary description and map
            shall have the same force and effect as if the description and
            map were included in this title, except that the Secretary may
            correct clerical and typographical errors in the boundary
            description and map.
                (3) Availability.--The map and boundary description shall be
            on file and available for public inspection in the Office of the
            Chief of the Forest Service, Department of Agriculture.
          (d) Nothing in this title shall interfere with any activity for
    which a special use permit has been issued, has not been revoked, and
    has not expired, before the date of enactment of this title, subject to
    the terms of the permit.

    [[Page 110 STAT. 3009-530]]

    SEC. 108. ROSBORO LAND EXCHANGE.

          (a) Authorization.--Notwithstanding any other law, if the Rosboro
    Lumber Company (referred to in this section as ``Rosboro'') offers and
    conveys marketable title to the United States to the land described in
    subsection (b), the Secretary of Agriculture shall convey all right,
    title and interest held by the United States to sufficient lands
    described in subsection (c) to Rosboro, in the order in which they
    appear in subsection (c), as necessary to satisfy the equal value
    requirements of subsection (d).
          (b) Land to be Offered by Rosboro.--The land referred to in
    subsection (a) as the land to be offered by Rosboro shall comprise
    Section 36, Township 8 South, range 4 east, Willamette Meridian.
          (c) Land To Be Conveyed by the United States.--The land referred
    to in subsection (a) as the land to be conveyed by the United States
    shall comprise sufficient land from the following prioritized list to be
    of equal value under subparagraph (d):
                (1) Section 5, Township 17 South, Range 4 East, Lot 7 (37.63
            acres).
                (2) Section 2, Township 17 South, Range 4 East, Lot 3 (29.28
            acres).
                (3) Section 13, Township 17 South, Range 4 East, S\1/2\
            SE\1/4\ (80 acres).
                (4) Section 2, Township 17 South, Range 4 East, SW\1/4\
            SW\1/4\ (40 acres).
                (5) Section 2, Township 17 South, Range 4 East, NW\1/4\
            SE\1/4\ (40 acres).
                (6) Section 8, Township 17 South, Range 4 East, SE\1/4\
            SW\1/4\ (40 acres).
                (7) Section 11, Township 17 South, Range 4 East, W\1/2\
            NW\1/4\ (80 acres).
          (d) Equal Value.--The land and interests in land exchanged under
    this section shall be of equal market value as determined by nationally
    recognized appraisal standards, including, to the extent appropriate,
    the Uniform Standards for Federal Land Acquisition, the Uniform
    Standards of Professional Appraisal Practice, or shall be equalized by
    way of payment of cash pursuant to the provisions of section 206(d) of
    the Federal Land Policy and Management Act of 1976 (43 U.S.C. 1716(d)),
    and other applicable law. The appraisal shall consider access costs for
    the parcels involved.
          (e) Timetable.--
                (1) The exchange directed by this section shall be
            consummated not later than 120 days after the date Rosboro
            offers and conveys the property described in subsection (b) to
            the United States.
                (2) The authority provided by this section shall lapse if
            Rosboro fails to offer the land described in subsection (b)
            within two years after the date of enactment of this title.
          (f) Rosboro shall have the right to challenge in United States
    District Court for the District of Oregon a determination of
    marketability under subsection (a) and a determination of value for the
    lands described in subsections (b) and (c) by the Secretary of
    Agriculture. The Court shall have the authority to order the Secretary
    to complete the transaction contemplated in this Section.
          (g) Authorization of Appropriations.--There are authorized to be
    appropriated such sums as are necessary to carry out this section.

    [[Page 110 STAT. 3009-531]]

    SEC. 109. DESIGNATION OF ELKHORN CREEK AS A WILD AND SCENIC RIVER.

          Section 3(a) of the Wild and Scenic Rivers Act (16 U.S.C. 1274(a))
    is amended by adding at the end the following:
          ``( ) (A) Elkhorn creek.--The 6.4 mile segment traversing
    federally administered lands from that point along the Willamette
    National Forest boundary on the common section line between Sections 12
    and 13, Township 9 South, Range 4 East, Willamette Meridian, to that
    point where the segment leaves federal ownership along the Bureau of
    Land Management boundary in Section 1, Township 9 South, Range 3 East,
    Willamette Meridian, in the following classes:
                ``(i) a 5.8-mile wild river area, extending from that point
            along the Willamette National Forest boundary on the common
            section line between Sections 12 and 13, Township 9 South, Range
            4 East, Willamette Meridian, to its confluence with Buck Creek
            in Section 1, Township 9 South, Range 3 East, Willamette
            Meridian, to be administered as agreed on by the Secretaries of
            Agriculture and the Interior, or as directed by the President;
            and
                ``(ii) a 0.6-mile scenic river area, extending from the
            confluence with Buck Creek in Section 1, Township 9 South, Range
            3 East, Willamette Meridian, to that point where the segment
            leaves federal ownership along the Bureau of Land Management
            boundary in Section 1, Township 9 South, Range 3 East,
            Willamette Meridian, to be administered by the Secretary of
            Interior, or as directed by the President.
                        ``(B) Notwithstanding section 3(b) of this Act, the
                    lateral boundaries of both the wild river area and the
                    scenic river area along Elkhorn Creek shall include an
                    average of not more than 640 acres per mile measured
                    from the ordinary high water mark on both sides of the
                    river.''

    SEC. 110. ECONOMIC DEVELOPMENT.

          (a) Economic Development Plan.--As a condition for receiving
    funding under subsection (b) of this section, the State of Oregon, in
    consultation with Marion County and the Secretary of Agriculture, shall
    develop a plan for economic development projects for which grants under
    this section may be used in a manner consistent with this title and to
    benefit local communities in the vicinity of the Opal Creek area. Such
    plan shall be based on an economic opportunity study and other
    appropriate information.
          (b) Funds Provided to the States for Grants.--Upon completion of
    the Opal Creek Management Plan, and receipt of the plan referred to in
    subsection (a) of this section, the Secretary shall provide, subject to
    appropriations, $15,000,000, to the State of Oregon. Such funds shall be
    used to make grants or loans for economic development projects that
    further the purposes of this title and benefit the local communities in
    the vicinity of Opal Creek.
          (c) Report.--The State of Oregon shall--
                (1) prepare and provide the Secretary and Congress with an
            annual report on the use of the funds made available under this
            section;
                (2) make available to the Secretary and to Congress, upon
            request, all accounts, financial records, and other information

    [[Page 110 STAT. 3009-532]]

            related to grants and loans made available pursuant to this
            section; and
                (3) as loans are repaid, make additional grants and loans
            with the money made available for obligation by such repayments.

                          TITLE II--UPPER KLAMATH BASIN

    SEC. 201. UPPER KLAMATH BASIN ECOLOGICAL RESTORATION PROJECTS.

          (a) Definitions.--In this section:
                (1) Ecosystem restoration office.--The term ``Ecosystem
            Restoration Office'' means the Klamath Basin Ecosystem
            Restoration Office operated cooperatively by the United States
            Fish and Wildlife Service, Bureau of Reclamation, Bureau of Land
            Management, and Forest Service.
                (2) Working group.--The term ``Working Group'' means the
            Upper Klamath Basin Working Group, established before the date
            of enactment of this title, consisting of members nominated by
            their represented groups, including:
                        (A) 3 tribal members;
                        (B) 1 representative of the city of Klamath Falls,
                    Oregon;
                        (C) 1 representative of Klamath County, Oregon;
                        (D) 1 representative of institutions of higher
                    education in the Upper Klamath Basin;
                        (E) 4 representatives of the environmental
                    community, including at least one such representative
                    from the State of California with interests in the
                    Klamath Basin National Wildlife Refuge Complex;
                        (F) 4 representatives of local businesses and
                    industries, including at least one representative of the
                    wood products industry and one representative of the
                    ocean commercial fishing industry and/or the
                    recreational fishing industry based in either Oregon or
                    California;
                        (G) 4 representatives of the ranching and farming
                    community, including representatives of Federal lease-
                    land farmers and ranchers and of private land farmers
                    and ranchers in the Upper Klamath Basin;
                        (H) 2 representatives from State of Oregon agencies
                    with authority and responsibility in the Klamath River
                    Basin, including one from the Oregon Department of Fish
                    and Wildlife and one from the Oregon Water Resources
                    Department;
                        (I) 4 representatives from the local community;
                        (J) 1 representative each from the following Federal
                    resource management agencies in the Upper Klamath Basin:
                    Fish and Wildlife Service, Bureau of Reclamation, Bureau
                    of Land Management, Bureau of Indian Affairs, Forest
                    Service, Natural Resources Conservation Service,
                    National Marine Fisheries Service and Ecosystem
                    Restoration Office; and
                        (K) 1 representative of the Klamath County Soil and
                    Water Conservation District.
                (3) Secretary.--The term ``Secretary'' means the Secretary
            of the Interior.

    [[Page 110 STAT. 3009-533]]

                (4) Task force.--The term ``Task Force'' means the Klamath
            River Basin Fisheries Task Force as established by the Klamath
            River Basin Fishery Resource Restoration Act (Public Law 99-552,
            16 U.S.C. 460ss-3, et. seq.).
                (5) Compact commission.--The term ``Compact Commission''
            means the Klamath River Basin Compact Commission created
            pursuant to the Klamath River Compact Act of 1954.
                (6) Consensus.--The term ``consensus'' means a unanimous
            agreement by the Working Group members present and consisting of
            at least a quorum at a regularly scheduled business meeting.
                (7) Quorum.--The term ``quorum'' means one more than half of
            those qualified Working Group members appointed and eligible to
            serve.
                (8) Trinity task force.--The term ``Trinity Task Force''
            means the Trinity River Restoration Task Force created by Public
            Law 98-541, as amended by Public Law 104-143.
          (b) In General.--
                (1) The Working Group through the Ecosystem Restoration
            Office, with technical assistance from the Secretary, will
            propose ecological restoration projects, economic development
            and stability projects, and projects designed to reduce the
            impacts of drought conditions to be undertaken in the Upper
            Klamath Basin based on a consensus of the Working Group
            membership.
                (2) The Secretary shall pay, to the greatest extent
            feasible, up to 50 percent of the cost of performing any project
            approved by the Secretary or his designee, up to a total amount
            of $1,000,000 during each of fiscal years 1997 through 2001.
                (3) Funds made available under this title through the
            Department of the Interior or the Department of Agriculture
            shall be distributed through the Ecosystem Restoration Office.
                (4) The Ecosystem Restoration Office may utilize not more
            than 15 percent of all Federal funds administered under this
            section for administrative costs relating to the implementation
            of this title.
                (5) All funding recommendations developed by the Working
            Group shall be based on a consensus of Working Group members.
          (c) Coordination.--
                (1) The Secretary shall formulate a cooperative agreement
            among the Working Group, the Task Force, the Trinity Task Force
            and the Compact Commission for the purposes of ensuring that
            projects proposed and funded through the Working Group are
            consistent with other basin-wide fish and wildlife restoration
            and conservation plans, including but not limited to plans
            developed by the Task Force and the Compact Commission.
                (2) To the greatest extent practicable, the Working Group
            shall provide notice to, and accept input from, two members each
            of the Task Force, the Trinity Task Force, and the Compact
            Commission, so appointed by those entities, for the express
            purpose of facilitating better communication and coordination
            regarding additional basin-wide fish and wildlife and ecosystem
            restoration and planning efforts. The roles and relationships of
            the entities involved shall be clarified in the cooperative
            agreement.

    [[Page 110 STAT. 3009-534]]

          (d) Public Meetings.--The Working Group shall conduct all meetings
    subject to applicable open meeting and public participation laws. The
    chartering requirements of 5 U.S.C. App 2 ss 1-15 are hereby deemed to
    have been met by this section.
          (e) Terms and Vacancies.--Working Group members shall serve for 3-
    year terms, beginning on the date of enactment of this title. Vacancies
    which occur for any reason after the date of enactment of this title
    shall be filled by direct appointment of the governor of the State of
    Oregon, in consultation with the Secretary of the Interior and the
    Secretary of Agriculture, in accordance with nominations from the
    appropriate groups, interests, and government agencies outlined in
    subsection (a)(2).
          (f) Rights, Duties and Authorities Unaffected.--The Working Group
    will supplement, rather than replace, existing efforts to manage the
    natural resources of the Klamath Basin. Nothing in this title affects
    any legal right, duty or authority of any person or agency, including
    any member of the working group.
          (g) Authorization of Appropriations.--There are authorized to be
    appropriated to carry out this title $1,000,000 for each of fiscal years
    1997 through 2002.

                           TITLE III--DESCHUTES BASIN

    SEC. 301. DESCHUTES BASIN ECOSYSTEM RESTORATION PROJECTS.

          (a) Definitions.--In this section:
                (1) Working group.--The term ``Working Group'' means the
            Deschutes River Basin Working Group established before the date
            of enactment of this title, consisting of members nominated by
            their represented groups, including:
                        (A) 5 representatives of private interests including
                    one each from hydroelectric production, livestock
                    grazing, timber, land development, and recreation/
                    tourism;
                        (B) 4 representatives of private interests including
                    two each from irrigated agriculture and the
                    environmental community;
                        (C) 2 representatives from the Confederated Tribes
                    of the Warm Springs Reservation of Oregon;
                        (D) 2 representatives from Federal agencies with
                    authority and responsibility in the Deschutes River
                    Basin, including one from the Department of the Interior
                    and one from the Agriculture Department;
                        (E) 2 representatives from the State of Oregon
                    agencies with authority and responsibility in the
                    Deschutes River Basin, including one from the Oregon
                    Department of Fish and Wildlife and one from the Oregon
                    Water Resources Department; and
                        (F) 4 representatives from county or city
                    governments within the Deschutes River Basin county and/
                    or city governments.
                (2) Secretary.--The term ``Secretary'' means the Secretary
            of the Interior.
                (3) Federal agencies.--The term ``Federal agencies'' means
            agencies and departments of the United States, including, but
            not limited to, the Bureau of Reclamation, Bureau of Indian
            Affairs, Bureau of Land Management, Fish and Wildlife Service,
            Forest Service, Natural Resources Conservation

    [[Page 110 STAT. 3009-535]]

            Service, Farm Services Agency, the National Marine Fisheries
            Service, and the Bonneville Power Administration.
                (4) Consensus.--The term ``consensus'' means a unanimous
            agreement by the Working Group members present and constituting
            at least a quorum at a regularly scheduled business meeting.
                (5) Quorum.--The term ``quorum'' means one more than half of
            those qualified Working Group members appointed and eligible to
            serve.
          (b) In General.--
                (1) The Working Group will propose ecological restoration
            projects on both Federal and non-Federal lands and waters to be
            undertaken in the Deschutes River Basin based on a consensus of
            the Working Group, provided that such projects, when involving
            Federal land or funds, shall be proposed to the Bureau of
            Reclamation in the Department of the Interior and any other
            Federal agency with affected land or funds.
                (2) The Working Group will accept donations, grants or other
            funds and place such funds received into a trust fund, to be
            expended on ecological restoration projects which, when
            involving Federal land or funds, are approved by the affected
            Federal agency.
                (3) The Bureau of Reclamation shall pay from funds
            authorized under subsection (h) of this title up to 50 percent
            of the cost of performing any project proposed by the Working
            Group and approved by the Secretary, up to a total amount of
            $1,000,000 during each of the fiscal years 1997 through 2001.
                (4) Non-Federal contributions to project costs for purposes
            of computing the Federal matching share under paragraph (3) of
            this subsection may include in-kind contributions.
                (5) Funds authorized in subsection (h) of this title shall
            be maintained in and distributed by the Bureau of Reclamation in
            the Department of the Interior. The Bureau of Reclamation shall
            not expend more than 5 percent of amounts appropriated pursuant
            to subsection (h) for Federal administration of such
            appropriations pursuant to this title.
                (6) The Bureau of Reclamation is authorized to provide by
            grant to the Working Group not more than 5 percent of funds
            appropriated pursuant to subsection (h) of this title for not
            more than 50 percent of administrative costs relating to the
            implementation of this title.
                (7) The Federal agencies with authority and responsibility
            in the Deschutes River Basin shall provide technical assistance
            to the Working Group and shall designate representatives to
            serve as members of the Working Group.
                (8) All funding recommendations developed by the Working
            Group shall be based on a consensus of the Working Group
            members.
          (c) Public Notice and Participation.--The Working Group shall
    conduct all meetings subject to applicable open meeting and public
    participation laws. The chartering requirements of 5 U.S.C. App 2 ss 1-
    15 are hereby deemed to have been met by this section.
          (d) Priorities.--The Working Group shall give priority to
    voluntary market-based economic incentives for ecosystem restoration
    including, but not limited to, water leases and purchases; land leases
    and purchases; tradable discharge permits; and acquisition

    [[Page 110 STAT. 3009-536]]

    of timber, grazing, and land development rights to implement plans,
    programs, measures, and projects.
          (e) Terms and Vacancies.--Members of the Working Group
    representing governmental agencies or entities shall be named by the
    represented government agency. Members of the Working Group representing
    private interests shall be named in accordance with the articles of
    incorporation and bylaws of the Working Group. Representatives from
    Federal agencies will serve for terms of 3 years. Vacancies which occur
    for any reason after the date of enactment of this title shall be filled
    in accordance with this title.
          (f) Additional Projects.--Where existing authority and
    appropriations permit, Federal agencies may contribute to the
    implementation of projects recommended by the Working Group and approved
    by the Secretary.
          (g) Rights, Duties and Authorities Unaffected.--The Working Group
    will supplement, rather than replace, existing efforts to manage the
    natural resources of the Deschutes Basin. Nothing in this title affects
    any legal right, duty or authority of any person or agency, including
    any member of the working group.
          (h) Authorization of Appropriations.--There are authorized to be
    appropriated to carry out this title $1,000,000 for each of fiscal years
    1997 through 2001.

                          TITLE IV--MOUNT HOOD CORRIDOR

    SEC. 401. LAND EXCHANGE.

          (a) Authorization.--Notwithstanding any other law, if Longview
    Fibre Company (referred to in this section as ``Longview'') offers and
    conveys title that is acceptable to the United States to some or all of
    the land described in subsection (b), the Secretary of the Interior
    (referred to in this section as the ``Secretary'') shall convey to
    Longview title to some or all of the land described in subsection (c),
    as necessary to satisfy the requirements of subsection (d).
          (b) Land To Be Offered by Longview.--The land referred to in
    subsection (a) as the land to be offered by Longview are those lands
    depicted on the map entitled ``Mt. Hood Corridor Land Exchange Map'',
    dated July 18, 1996.
          (c) Land To Be Conveyed by the Secretary.--The land referred to in
    subsection (a) as the land to be conveyed by the Secretary are those
    lands depicted on the map entitled ``Mt. Hood Corridor Land Exchange
    Map'', dated July 18, 1996.
          (d) Equal Value.--The land and interests in land exchanged under
    this section shall be of equal market value as determined by nationally
    recognized appraisal standards, including, to the extent appropriate,
    the Uniform Standards for Federal Land Acquisition, the Uniform
    Standards of Professional Appraisal Practice, or shall be equalized by
    way of payment of cash pursuant to the provisions of section 206(d) of
    the Federal Land Policy and Management Act of 1976 (43 U.S.C. 1716(d)),
    and other applicable law.
          (e) Redesignation of Land To Maintain Revenue Flow.--So as to
    maintain the current flow of revenue from land subject to the Act
    entitled ``An Act relating to the revested Oregon and California
    Railroad and reconveyed Coos Bay Wagon Road grant land situated in the
    State of Oregon'', approved August 28, 1937

    [[Page 110 STAT. 3009-537]]

    (43 U.S.C. 1181a et seq.), the Secretary may redesignate public domain
    land located in and west of Range 9 East, Willamette Meridian, Oregon,
    as land subject to that Act.
          (f) Timetable.--The exchange directed by this section shall be
    consummated not later than 1 year after the date of enactment of this
    title.
          (g) Withdrawal of Lands.--All lands managed by the Department of
    the Interior, Bureau of Land Management, located in Townships 2 and 3
    South, Ranges 6 and 7 East, Willamette Meridian, which can be seen from
    the right-of-way of U.S. Highway 26 (in this section, such lands are
    referred to as the ``Mt. Hood Corridor Lands''), shall be managed
    primarily for the protection or enhancement of scenic qualities.
    Management prescriptions for other resource values associated with these
    lands shall be planned and conducted for purposes other than timber
    harvest, so as not to impair the scenic qualities of the area.
          (h) Timber Cutting.--Timber cutting may be conducted on Mt. Hood
    Corridor Lands following a resource-damaging catastrophic event. Such
    cutting may only be conducted to achieve the following resource
    management objectives, in compliance with the current land use plans--
                (1) to maintain safe conditions for the visiting public;
                (2) to control the continued spread of forest fire;
                (3) for activities related to administration of the Mt. Hood
            Corridor Lands; or
                (4) for removal of hazard trees along trails and roadways.
          (i) Road Closure.--The forest road gate located on Forest Service
    Road 2503, located in T. 2 S., R. 6 E., sec. 14, shall remain closed and
    locked to protect resources and prevent illegal dumping and vandalism.
    Access to this road shall be limited to--
                (1) Federal and State officers and employees acting in an
            official capacity;
                (2) employees and contractors conducting authorized
            activities associated with the telecommunication sites located
            in T. 2 S., R. 6 E., sec. 14; and
                (3) the general public for recreational purposes, except
            that all motorized vehicles will be prohibited.
          (j) NEPA Exemption.--The National Environmental Policy Act of 1969
    (P.L. 91-190) shall not apply to this section for one year after the
    date of enactment of this title.
          (k) Authorization of Appropriations.--There are authorized to be
    appropriated such sums as are necessary to carry out this section.

                         TITLE V--COQUILLE TRIBAL FOREST

    SEC. 501. CREATION OF THE COQUILLE FOREST.

          (a) <<NOTE: 25 USC 715c.>> The Coquille Restoration Act (P.L. 101-
    42) is amended by inserting at the end of section 5 the following:
          ``(d) Creation of the Coquille Forest.--
                ``(1) Definitions.--In this subsection:
                        ``(A) the term `Coquille Forest' means certain lands
                    in Coos County, Oregon, comprising approximately 5,400
                    acres, as generally depicted on the map entitled
                    `Coquille Forest Proposal', dated July 8, 1996.

    [[Page 110 STAT. 3009-538]]

                        ``(B) the term `Secretary' means the Secretary of
                    the Interior.
                        ``(C) the term `the Tribe' means the Coquille Tribe
                    of Coos County, Oregon.
                ``(2) Map.--The map described in subparagraph (d)(1)(A), and
            such additional legal descriptions which are applicable, shall
            be placed on file at the local District Office of the Bureau of
            Land Management, the Agency Office of the Bureau of Indian
            Affairs, and with the Senate Committee on Energy and Natural
            Resources and the House Committee on Resources.
                ``(3) Interim period.--From the date of enactment of this
            subsection until two years after the date of enactment of this
            subsection, the Bureau of Land Management shall:
                        ``(A) retain Federal jurisdiction for the management
                    of lands designated under this subsection as the
                    Coquille Forest and continue to distribute revenues from
                    such lands in a manner consistent with existing law;
                    and,
                        ``(B) prior to advertising, offering or awarding any
                    timber sale contract on lands designated under this
                    subsection as the Coquille Forest, obtain the approval
                    of the Assistant Secretary for Indian Affairs, acting on
                    behalf of and in consultation with the Tribe.
                (4) Transition planning and designation.--
                        ``(A) During the two year interim period provided
                    for in paragraph (3), the Assistant Secretary for Indian
                    Affairs, acting on behalf of and in consultation with
                    the Tribe, is authorized to initiate development of a
                    forest management plan for the Coquille Forest. The
                    Secretary, acting through the Director of the Bureau of
                    Land Management, shall cooperate and assist in the
                    development of such plan and in the transition of
                    forestry management operations for the Coquille Forest
                    to the Assistant Secretary for Indian Affairs.
                        ``(B) Two years after the date of enactment of this
                    subsection, the Secretary shall take the lands
                    identified under subparagraph (d)(1)(A) into trust, and
                    shall hold such lands in trust, in perpetuity, for the
                    Coquille Tribe. Such lands shall be thereafter
                    designated as the Coquille Forest.
                        ``(C) So as to maintain the current flow of revenue
                    from land subject to the Act entitled `An Act relating
                    to the revested Oregon and California Railroad and
                    reconveyed Coos Bay Wagon Road grant land situated in
                    the State of Oregon' (the O&C Act), approved August 28,
                    1937 (43 U.S.C. 1181a et seq.), the Secretary shall
                    redesignate, from public domain lands within the tribe's
                    service area, as defined in this Act, certain lands to
                    be subject to the O&C Act. Lands redesignated under this
                    subparagraph shall not exceed lands sufficient to
                    constitute equivalent timber value as compared to lands
                    constituting the Coquille Forest.
                ``(5) Management.--The Secretary of Interior, acting through
            the Assistant Secretary for Indian Affairs, shall manage the
            Coquille Forest under applicable State and Federal forestry and
            environmental protection laws, and subject to critical habitat
            designations under the Endangered Species Act, and subject to
            the standards and guidelines of Federal forest

    [[Page 110 STAT. 3009-539]]

            plans on adjacent or nearby Federal lands, now and in the
            future. The Secretary shall otherwise manage the Coquille Forest
            in accordance with the laws pertaining to the management of
            Indian Trust lands and shall distribute revenues in accord with
            Public Law 101-630, 25 U.S.C. 3107.
                        ``(A) Unprocessed logs harvested from the Coquille
                    Forest shall be subject to the same Federal statutory
                    restrictions on export to foreign Nations that apply to
                    unprocessed logs harvested from Federal lands.
                        ``(B) Notwithstanding any other provision of law,
                    all sales of timber from land subject to this subsection
                    shall be advertised, offered and awarded according to
                    competitive bidding practices, with sales being awarded
                    to the highest responsible bidder.
                ``(6) Indian self determination act agreement.--No sooner
            than two years after the date of enactment of this subsection,
            the Secretary may, upon a satisfactory showing of management
            competence and pursuant to the Indian Self-Determination Act (25
            U.S.C. 450 et seq.), enter into a binding Indian self-
            determination agreement (agreement) with the Coquille Indian
            Tribe. Such agreement may provide for the tribe to carry out all
            or a portion of the forest management for the Coquille Forest.
                        ``(A) Prior to entering such an agreement, and as a
                    condition of maintaining such an agreement, the
                    Secretary must find that the Coquille Tribe has entered
                    into a binding memorandum of agreement (MOA) with the
                    State of Oregon, as required under paragraph 7.
                        ``(B) The authority of the Secretary to rescind the
                    Indian self-determination agreement shall not be
                    encumbered.
                              ``(i) The Secretary shall rescind the
                          agreement upon a demonstration that the tribe and
                          the State of Oregon are no longer engaged in a
                          memorandum of agreement as required under
                          paragraph 7.
                              ``(ii) The Secretary may rescind the agreement
                          on a showing that the Tribe has managed the
                          Coquille Forest in a manner inconsistent with this
                          subsection, or the Tribe is no longer managing, or
                          capable of managing, the Coquille Forest in a
                          manner consistent with this subsection.
                ``(7) Memorandum of agreement.--The Coquille Tribe shall
            enter into a memorandum of agreement (MOA) with the State of
            Oregon relating to the establishment and management of the
            Coquille Forest. The MOA shall include, but not be limited to,
            the terms and conditions for managing the Coquille Forest in a
            manner consistent with paragraph (5) of this subsection,
            preserving public access, advancing jointly-held resource
            management goals, achieving tribal restoration objectives and
            establishing a coordinated management framework. Further,
            provisions set forth in the MOA shall be consistent with federal
            trust responsibility requirements applicable to Indian trust
            lands and paragraph (5) of this subsection.
                ``(8) Public access.--The Coquille Forest shall remain open
            to public access for purposes of hunting, fishing, recreation
            and transportation, except when closure is required by state or
            federal law, or when the Coquille Indian Tribe and the

    [[Page 110 STAT. 3009-540]]

            State of Oregon agree in writing that restrictions on access are
            necessary or appropriate to prevent harm to natural resources,
            cultural resources or environmental quality; Provided, That the
            State of Oregon's agreement shall not be required when immediate
            action is necessary to protect archaeological resources.
                ``(9) Jurisdiction.--
                        ``(A) The United States District Court for the
                    District of Oregon shall have jurisdiction over actions
                    against the Secretary arising out of claims that this
                    subsection has been violated. Consistent with existing
                    precedents on standing to sue, any affected citizen may
                    bring suit against the Secretary for violations of this
                    subsection, except that suit may not be brought against
                    the Secretary for claims that the MOA has been violated.
                    The Court has the authority to hold unlawful and set
                    aside actions pursuant to this subsection that are
                    arbitrary and capricious, an abuse of discretion, or
                    otherwise an abuse of law.
                        ``(B) The United States District Court for the
                    District of Oregon shall have jurisdiction over actions
                    between the State of Oregon and the Tribe arising out of
                    claims of breach of the MOA.
                        ``(C) Unless otherwise provided for by law, remedies
                    available under this subsection shall be limited to
                    equitable relief and shall not include damages.
                ``(10) State regulatory and civil jurisdiction.--In addition
            to the jurisdiction described in paragraph 7 of this subsection,
            the State of Oregon may exercise exclusive regulatory civil
            jurisdiction, including but not limited to adoption and
            enforcement of administrative rules and orders, over the
            following subjects:
                        ``(A) management, allocation and administration of
                    fish and wildlife resources, including but not limited
                    to establishment and enforcement of hunting and fishing
                    seasons, bag limits, limits on equipment and methods,
                    issuance of permits and licenses, and approval or
                    disapproval of hatcheries, game farms, and other
                    breeding facilities; Provided, That nothing herein shall
                    be construed to permit the State of Oregon to manage
                    fish or wildlife habitat on Coquille Forest lands;
                        ``(B) allocation and administration of water rights,
                    appropriation of water and use of water;
                        ``(C) regulation of boating activities, including
                    equipment and registration requirements, and protection
                    of the public's right to use the waterways for purposes
                    of boating or other navigation;
                        ``(D) fills and removals from waters of the State,
                    as defined in Oregon law;
                        ``(E) protection and management of the State's
                    proprietary interests in the beds and banks of navigable
                    waterways;
                        ``(F) regulation of mining, mine reclamation
                    activities, and exploration and drilling for oil and gas
                    deposits;
                        ``(G) regulation of water quality, air quality
                    (including smoke management), solid and hazardous waste,
                    and remediation of releases of hazardous substances;

    [[Page 110 STAT. 3009-541]]

                        ``(H) regulation of the use of herbicides and
                    pesticides; and
                        ``(I) enforcement of public health and safety
                    standards, including standards for the protection of
                    workers, well construction and codes governing the
                    construction of bridges, buildings, and other
                    structures.
                ``(11) Savings clause, state authority.--
                        ``(A) Nothing in this subsection shall be construed
                    to grant tribal authority over private or State-owned
                    lands.
                        ``(B) To the extend that the State of Oregon is
                    regulating the foregoing areas pursuant to a delegated
                    Federal authority or a Federal program, nothing in this
                    subsection shall be construed to enlarge or diminish the
                    State's authority under such law.
                        ``(C) Where both the State of Oregon and the United
                    States are regulating, nothing herein shall be construed
                    to alter their respective authorities.
                        ``(D) To the extent that Federal law authorizes the
                    Coquille Indian Tribe to assume regulatory authority
                    over an area, nothing herein shall be construed to
                    enlarge or diminish the tribe's authority to do so under
                    such law.
                        ``(E) Unless and except to the extent that the tribe
                    has assumed jurisdiction over the Coquille Forest
                    pursuant to Federal law, or otherwise with the consent
                    of the State, the State of Oregon shall have
                    jurisdiction and authority to enforce its laws
                    addressing the subjects listed in subparagraph 10 of
                    this subsection on the Coquille Forest against the
                    Coquille Indian Tribe, its members and all other persons
                    and entities, in the same manner and with the same
                    remedies and protections and appeal rights as otherwise
                    provided by general Oregon law. Where the State of
                    Oregon and Coquille Indian Tribe agree regarding the
                    exercise of tribal civil regulatory jurisdiction over
                    activities on the Coquille Forest lands, the tribe may
                    exercise such jurisdiction as its agreed upon.
                ``(12) In the event of a conflict between Federal and State
            law under this subsection, Federal law shall control.''

                     TITLE VI--BULL RUN WATERSHED PROTECTION

          Sec. 601. The first sentence of section 2(a) of Public Law 95-200
    is <<NOTE: 16 USC 482b note.>>  amended after ``referred to in this
    subsection (a)'' by striking ``2(b)'' and inserting in lieu thereof
    ``2(c)''.
          Sec. 602. The first sentence of section 2(b) of Public Law 95-200
    is <<NOTE: 16 USC 482b note.>> amended after ``the policy set forth in
    subsection (a)'' by inserting ``and (b)''.
          Sec. 603. <<NOTE: 16 USC 482b note.>> Section 2(b) of Public Law
    95-200 is redesigned as ``2(c)''.
          Sec. 604 <<NOTE: 16 USC 482b note.>> (a) Public Law 95-200 is
    amended by adding a new subsection 2(b) immediately after subsection
    2(a), as follows:
          ``(b) Timber Cutting.--
                (1) In general.--Subject to paragraph (2), the Secretary of
            Agriculture shall prohibit the cutting of trees in that part of
            the unit consisting of the hydrographic boundary of the Bull Run
            River Drainage, including certain lands within the

    [[Page 110 STAT. 3009-542]]

            unit and located below the headworks of the city of Portland,
            Oregon's water storage and delivery project, and as depicted in
            a map dated July 22, 1996 and entitled ``Bull Run River
            Drainage''.
                (2) Permitted cutting.--
                        (A) In general.--Subject to subparagraph (B), the
                    Secretary of Agriculture shall prohibit the cutting of
                    trees in the area described in paragraph (1).
                        (B) Permitted cutting.--Subject to subparagraph (C),
                    the Secretary may only allow the cutting of trees in the
                    area described in paragraph (1)--
                              (i) for the protection or enhancement of water
                          quality in the area described in paragraph (1); or
                              (ii) for the protection, enhancement, or
                          maintenance of water quantity available from the
                          area described in paragraph (1); or
                              (iii) for the construction, expansion,
                          protection or maintenance of municipal water
                          supply facilities; or
                              (iv) for the construction, expansion,
                          protection or maintenance of facilities for the
                          transmission of energy through and over the unit
                          or previously authorized hydroelectric facilities
                          or hydroelectric projects associated with
                          municipal water supply facilities.
                        (C) Salvage sales.--The Secretary of Agriculture may
                    not authorize a salvage sale in the area described in
                    paragraph (1).''
          (b) <<NOTE: 16 USC 482b note.>> Redesignate subsequent subsections
    of Public Law 95-200 accordingly.

    SEC. 605. REPORT TO CONGRESS.

          (a) The Secretary of Agriculture shall, in consultation with the
    city of Portland and other affected parties, undertake a study of that
    part of the Little Sandy Watershed that is within the unit (hereinafter
    referred to as the ``study area''), as depicted on the map described in
    section 604 of this title.
          (b) The study referred to in (a) shall determine--
                (1) the impact of management activities within the study
            area on the quality of drinking water provided to the Portland
            Metropolitan area;
                (2) the identify and location of certain ecological features
            within the study area, including late successional forest
            characteristics, aquatic and terrestrial wildlife habitat,
            significant hydrological values, or other outstanding natural
            features; and
                (3) the location and extent of any significant cultural or
            other values within the study area.
          (c) The study referred to in subsection (a) shall include both
    legislative and regulatory recommendations to Congress on the future
    management of the study area. In formulating such recommendations, the
    Secretary shall consult with the city of Portland and other affected
    parties.
          (d) To the greatest extent possible, the Secretary shall use
    existing data and processes to carry out this study and report.
          (e) The study referred to in subsection (a) shall be submitted to
    the Senate Committees on Energy and Natural Resources and

    [[Page 110 STAT. 3009-543]]

    Agriculture and the House Committees on Resources and Agriculture not
    later than one year from the date of enactment of this section.
          (f) The Secretary is prohibited from advertising, offering or
    awarding any timber sale within the study area for a period of two years
    after the date of enactment of this section.
          (g) Nothing in this section shall in any way affect any State or
    Federal law governing appropriation, use of or Federal right to water on
    or flowing through National Forest System lands. Nothing in this section
    is intended to influence the relative strength of competing claims to
    the waters of the Little Sandy River. Nothing in this section shall be
    construed to expand or diminish Federal, State, or local jurisdiction,
    responsibility, interests, or rights in water resources development or
    control, including rights in and current uses of water resources in the
    unit.
          Sec. 606. Lands within the Bull Run Management Unit, as defined in
    Public Law 95-200, but not contained within the Bull Run River Drainage,
    as defined by this title and as depicted on the map dated July 1996
    described in Section 604 of this title, shall continue to be managed in
    accordance with Public Law 95-200.

       TITLE <<NOTE: 16 USC 1132 note.>> VII--OREGON ISLANDS WILDERNESS,
    ADDITIONS

    SEC. 701. OREGON ISLANDS WILDERNESS, ADDITIONS.

          (a) In furtherance of the purposes of the Wilderness Act of 1964,
    certain lands within the boundaries of the Oregon Islands National
    Wildlife Refuge, Oregon, comprising approximately ninety-five acres and
    as generally depicted on a map entitled ``Oregon Island Wilderness
    Additions--Proposed'' dated August 1996, are hereby designated as
    wilderness. The map shall be on file and available for public inspection
    in the offices of the Fish and Wildlife Service, Department of the
    Interior.
          (b) All other federally owned named, unnamed, surveyed and
    unsurveyed rocks, reefs, islets and islands lying within three
    goegraphic miles off the coast of Oregon and above mean high tide, not
    currently designated as wilderness and also within the Oregon Islands
    National Wildlife Refuge boundaries under the administration of the
    United States Fish and Wildlife Service, Department of the Interior, as
    designated by Executive Order 7035, Proclamation 2416, Public Land
    Orders 4395, 4475 and 6287, and Public Laws 91-504 and 95-450, are
    hereby designated as wilderness.
          (c) All federally owned named, unnamed, surveyed and unsurveyed
    rocks, reefs, islets and islands lying within three geographic miles off
    the coast of Oregon and above mean high tide, and presently under the
    jurisdiction of the Bureau of Land Management, except Chiefs Island, are
    hereby designated as wilderness, shall become part of the Oregon Islands
    National Wildlife Refuge and the Oregon Island Wilderness and shall be
    under the jurisdiction of the United States Fish and Wildlife Service,
    Department of the Interior.
          (d) As soon as practicable after this title takes effect, a map of
    the wilderness area and a description of its boundaries shall be filed
    with the Senate Committee on Energy and Natural

    [[Page 110 STAT. 3009-544]]

    Resources and the House Committee on Resources, and such map shall have
    the same force and effect as if included in this title: Provided,
    however, That correcting clerical and typographical errors in the map
    and land descriptions may be made.
          (e) Public Land Order 6287 of June 16, 1982, which withdrew
    certain rocks, reefs, islets and islands lying within three geographical
    miles off the coast of Oregon and above mean high tide, including the
    ninety-five acres described in subsection (a), as an addition to the
    Oregon Islands National Wildlife Refuge is hereby made permanent.

                  TITLE VIII--UMPQUA RIVER LAND EXCHANGE STUDY

    SEC. 801. UMPQUA RIVER LAND EXCHANGE STUDY: POLICY AND DIRECTION.

          (a) In General.--The Secretaries of the Interior and Agriculture
    (Secretaries) are hereby authorized and directed to consult, coordinate,
    and cooperate with the Umpqua Land Exchange Project (ULEP), affected
    units and agencies of State and local government, and, as appropriate,
    the World Forestry Center and National Fish and Wildlife Foundation, to
    assist ULEP's ongoing efforts in studying and analyzing land exchange
    opportunities in the Umpqua River Basin and to provide scientific,
    technical, research, mapping and other assistance and information to
    such entities. Such consultation, coordination, and cooperation shall at
    a minimum include, but not be limited to:
                (1) working with ULEP to develop or assemble comprehensive
            scientific and other information (including comprehensive and
            integrated mapping) concerning the Umpqua River Basin's
            resources of forest, plants, wildlife, fisheries (anadromous and
            other), recreational opportunities, wetlands, riparian habitat,
            and other physical or natural resources;
                (2) working with ULEP to identify general or specific areas
            within the basin where land exchanges could promote
            consolidation of forestland ownership for long-term, sustained
            timber production; protection and restoration of habitat for
            plants, fish, and wildlife (including any federally listed
            threatened or endangered species); protection of drinking water
            supplies; recovery of threatened and endangered species;
            protection and restoration of wetlands, riparian lands, and
            other environmentally sensitive areas; consolidation of land
            ownership for improved public access and a broad array of
            recreational uses; and consolidation of land ownership to
            achieve management efficiency and reduced costs of
            administration; and
                (3) developing a joint report for submission to the Congress
            which discusses land exchange opportunities in the basin and
            outlines either a specific land exchange proposal or proposals
            which may merit consideration by the Secretaries or the
            Congress, or ideas and recommendations for new authorizations,
            direction, or changes in existing law or policy to expedite and
            facilitate the consummation of beneficial land exchanges in the
            basin via administrative means.
          (b) Matters for Specific Study.--In analyzing land exchange
    opportunities with ULEP, the Secretaries shall give priority to
    assisting ULEP's ongoing efforts in:

    [[Page 110 STAT. 3009-545]]

                (1) studying, identifying, and mapping areas where the
            consolidation of land ownership via land exchanges could promote
            the goals of long term species and watershed protection and
            utilization, including but not limited to the goals of the
            Endangered Species Act of 1973 more effectively than current
            land ownership patterns and whether any changes in law or policy
            applicable to such lands after consummation of an exchange would
            be advisable or necessary to achieve such goals;
                (2) studying, identifying and mapping areas where land
            exchanges might be utilized to better satisfy the goals of
            sustainable timber harvest, including studying whether changes
            in existing law or policy applicable to such lands after
            consummation of an exchange would be advisable or necessary to
            achieve such goals;
                (3) identifying issues and studying options and
            alternatives, including possible changes in existing law or
            policy, to insure that combined post-exchange revenues to units
            of local government from State and local property, severance,
            and other taxes or levies and shared Federal land receipts will
            approximate pre-exchange revenues;
                (4) identifying issues and studying whether possible changes
            in law, special appraisal instruction, or changes in certain
            Federal appraisal procedures might be advisable or necessary to
            facilitate the appraisal of potential exchange lands which may
            have special characteristics or restrictions affecting land
            values;
                (5) identifying issues and studying options and
            alternatives, including changes in existing laws or policy, for
            achieving land exchanges without reducing the net supply of
            timber available to small businesses;
                (6) identifying, mapping, and recommending potential changes
            in land use plans, land classifications, or other actions which
            might be advisable or necessary to expedite, facilitate or
            consummate land exchanges in certain areas;
                (7) analyzing potential sources for new or enhanced Federal,
            State, or other funding to promote improved resource protection,
            species recovery, and management in the basin; and
                (8) identifying and analyzing whether increased efficiency
            and better land and resource management could occur through
            either consolidation of Federal forest management under one
            agency or exchange lands between the Forest Service and the
            Bureau of Land Management.

    SEC. 802. REPORT TO CONGRESS.

          No later than February 1, 1998, ULEP and the Secretaries shall
    submit a joint report to the Committee on Resources of the United States
    House of Representatives and to the Committee on Energy and Natural
    Resources of the United States Senate concerning their studies,
    findings, recommendations, mapping and other activities conducted
    pursuant to this title.

    SEC. 803. AUTHORIZATION OF APPROPRIATIONS.

          In furtherance of the purposes of this title, there is hereby
    authorized to be appropriated the sum of $2 million, to remain available
    until expended.

    [[Page 110 STAT. 3009-546]]

    DIVISION <<NOTE: Illegal Immigration Reform and Immigrant Responsibility
           Act of 1996.>> C--ILLEGAL IMMIGRATION REFORM AND IMMIGRANT
    RESPONSIBILITY ACT OF 1996

    SEC. 1. SHORT TITLE OF DIVISION; AMENDMENTS TO IMMIGRATION AND
                NATIONALITY ACT; APPLICATION OF DEFINITIONS OF SUCH ACT;
                TABLE OF CONTENTS OF DIVISION; SEVERABILITY.

        (a) Short <<NOTE: 8 USC 1101 note.>> Title.--This division may be
    cited as the ``Illegal Immigration Reform and Immigrant Responsibility
    Act of 1996''.

        (b) Amendments <<NOTE: 8 USC 1101 note.>> to Immigration and
    Nationality Act.--Except as otherwise specifically provided--
                (1) whenever in this division an amendment or repeal is
            expressed as the amendment or repeal of a section or other
            provision, the reference shall be considered to be made to that
            section or provision in the Immigration and Nationality Act; and
                (2) amendments to a section or other provision are to such
            section or other provision before any amendment made to such
            section or other provision elsewhere in this division.

        (c) Application <<NOTE: 8 USC 1101 note.>> of Certain Definitions.--
    Except as otherwise specifically provided in this division, for purposes
    of titles I and VI of this division, the terms ``alien'', ``Attorney
    General'', ``border crossing identification card'', ``entry'',
    ``immigrant'', ``immigrant visa'', ``lawfully admitted for permanent
    residence'', ``national'', ``naturalization'', ``refugee'', ``State'',
    and ``United States'' shall have the meaning given such terms in section
    101(a) of the Immigration and Nationality Act.

        (d) Table of Contents of Division.--The table of contents of this
    division is as follows:

    Sec. 1. Short title of division; amendments to Immigration and
                          Nationality Act; application of definitions
                          of such Act; table of contents of division;
                          severability.

     TITLE I--IMPROVEMENTS TO BORDER CONTROL, FACILITATION OF LEGAL ENTRY,
                            AND INTERIOR ENFORCEMENT

                 Subtitle A--Improved Enforcement at the Border

    Sec. 101. Border patrol agents and support personnel.
    Sec. 102. Improvement of barriers at border.
    Sec. 103. Improved border equipment and technology.
    Sec. 104. Improvement in border crossing identification card.
    Sec. 105. Civil penalties for illegal entry.
    Sec. 106. Hiring and training standards.
    Sec. 107. Report on border strategy.
    Sec. 108. Criminal penalties for high speed flights from
                          immigration checkpoints.
    Sec. 109. Joint study of automated data collection.
    Sec. 110. Automated entry-exit control system.
    Sec. 111. Submission of final plan on realignment of border patrol
                          positions

    [[Page 110 STAT. 3009-547]]

                          from interior stations.
    Sec. 112. Nationwide fingerprinting of apprehended aliens.

                     Subtitle B--Facilitation of Legal Entry

    Sec. 121. Land border inspectors.
    Sec. 122. Land border inspection and automated permit pilot
                          projects.
    Sec. 123. Preinspection at foreign airports.
    Sec. 124. Training of airline personnel in detection of fraudulent
                          documents.
    Sec. 125. Preclearance authority.

                        Subtitle C--Interior Enforcement

    Sec. 131. Authorization of appropriations for increase in number
                          of certain investigators.
    Sec. 132. Authorization of appropriations for increase in number
                          of investigators of visa overstayers.
    Sec. 133. Acceptance of State services to carry out immigration
                          enforcement.
    Sec. 134. Minimum State INS presence.

     TITLE II--ENHANCED ENFORCEMENT AND PENALTIES AGAINST ALIEN SMUGGLING;
                                 DOCUMENT FRAUD

     Subtitle A--Enhanced Enforcement and Penalties Against Alien Smuggling

    Sec. 201. Wiretap authority for investigations of alien smuggling
                          or document fraud.
    Sec. 202. Racketeering offenses relating to alien smuggling.
    Sec. 203. Increased criminal penalties for alien smuggling.
    Sec. 204. Increased number of assistant United States Attorneys.
    Sec. 205. Undercover investigation authority.

                    Subtitle B--Deterrence of Document Fraud

    Sec. 211. Increased criminal penalties for fraudulent use of
                          government-issued documents.
    Sec. 212. New document fraud offenses; new civil penalties for
                          document fraud.
    Sec. 213. New criminal penalty for failure to disclose role as
                          preparer of false application for
                          immigration benefits.
    Sec. 214. Criminal penalty for knowingly presenting document which
                          fails to contain reasonable basis in law or
                          fact.
    Sec. 215. Criminal penalty for false claim to citizenship.
    Sec. 216. Criminal penalty for voting by aliens in Federal
                          election.
    Sec. 217. Criminal forfeiture for passport and visa related
                          offenses.
    Sec. 218. Penalties for involuntary servitude.
    Sec. 219. Admissibility of videotaped witness testimony.

    [[Page 110 STAT. 3009-548]]

    Sec. 220. Subpoena authority in document fraud enforcement.

       TITLE III--INSPECTION, APPREHENSION, DETENTION, ADJUDICATION, AND
                  REMOVAL OF INADMISSIBLE AND DEPORTABLE ALIENS

            Subtitle A--Revision of Procedures for Removal of Aliens

    Sec. 301. Treating persons present in the United States without
                          authorization as not admitted.
    Sec. 302. Inspection of aliens; expedited removal of inadmissible
                          arriving aliens; referral for hearing
                          (revised section 235).
    Sec. 303. Apprehension and detention of aliens not lawfully in the
                          United States (revised section 236).
    Sec. 304. Removal proceedings; cancellation of removal and
                          adjustment of status; voluntary departure
                          (revised and new sections 239 to 240C).
    Sec. 305. Detention and removal of aliens ordered removed (new
                          section 241).
    Sec. 306. Appeals from orders of removal (new section 242).
    Sec. 307. Penalties relating to removal (revised section 243).
    Sec. 308. Redesignation and reorganization of other provisions;
                          additional conforming amendments.
    Sec. 309. Effective dates; transition.

                      Subtitle B--Criminal Alien Provisions

    Sec. 321. Amended definition of aggravated felony.
    Sec. 322. Definition of conviction and term of imprisonment.
    Sec. 323. Authorizing registration of aliens on criminal probation
                          or criminal parole.
    Sec. 324. Penalty for reentry of deported aliens.
    Sec. 325. Change in filing requirement.
    Sec. 326. Criminal alien identification system.
    Sec. 327. Appropriations for criminal alien tracking center.
    Sec. 328. Provisions relating to State criminal alien assistance
                          program.
    Sec. 329. Demonstration project for identification of illegal
                          aliens in incarceration facility of Anaheim,
                          California.
    Sec. 330. Prisoner transfer treaties.
    Sec. 331. Prisoner transfer treaties study.
    Sec. 332. Annual report on criminal aliens.
    Sec. 333. Penalties for conspiring with or assisting an alien to
                          commit an offense under the Controlled
                          Substances Import and Export Act.
    Sec. 334. Enhanced penalties for failure to depart, illegal
                          reentry, and passport and visa fraud.

          Subtitle C--Revision of Grounds for Exclusion and Deportation

    Sec. 341. Proof of vaccination requirement for immigrants.

    [[Page 110 STAT. 3009-549]]

    Sec. 342. Incitement of terrorist activity and provision of false
                          documentation to terrorists as a basis for
                          exclusion from the United States.
    Sec. 343. Certification requirements for foreign health-care
                          workers.
    Sec. 344. Removal of aliens falsely claiming United States
                          citizenship.
    Sec. 345. Waiver of exclusion and deportation ground for certain
                          section 274C violators.
    Sec. 346. Inadmissibility of certain student visa abusers.
    Sec. 347. Removal of aliens who have unlawfully voted.
    Sec. 348. Waivers for immigrants convicted of crimes.
    Sec. 349. Waiver of misrepresentation ground of inadmissibility
                          for certain alien.
    Sec. 350. Offenses of domestic violence and stalking as ground for
                          deportation.
    Sec. 351. Clarification of date as of which relationship required
                          for waiver from exclusion or deportation for
                          smuggling.
    Sec. 352. Exclusion of former citizens who renounced citizenship
                          to avoid United States taxation.
    Sec. 353. References to changes elsewhere in division.

          Subtitle D--Changes in Removal of Alien Terrorist Provisions

    Sec. 354. Treatment of classified information.
    Sec. 355. Exclusion of representatives of terrorist organizations.
    Sec. 356. Standard for judicial review of terrorist organization
                          designations.
    Sec. 357. Removal of ancillary relief for voluntary departure.
    Sec. 358. Effective date.

                      Subtitle E--Transportation of Aliens

    Sec. 361. Definition of stowaway.
    Sec. 362. Transportation contracts.

                        Subtitle F--Additional Provisions

    Sec. 371. Immigration judges and compensation.
    Sec. 372. Delegation of immigration enforcement authority.
    Sec. 373. Powers and duties of the Attorney General and the
                          Commissioner.
    Sec. 374. Judicial deportation.
    Sec. 375. Limitation on adjustment of status.
    Sec. 376. Treatment of certain fees.
    Sec. 377. Limitation on legalization litigation.
    Sec. 378. Rescission of lawful permanent resident status.
    Sec. 379. Administrative review of orders.
    Sec. 380. Civil penalties for failure to depart.
    Sec. 381. Clarification of district court jurisdiction.
    Sec. 382. Application of additional civil penalties to
                          enforcement.

    [[Page 110 STAT. 3009-550]]

    Sec. 383. Exclusion of certain aliens from family unity program.
    Sec. 384. Penalties for disclosure of information.
    Sec. 385. Authorization of additional funds for removal of aliens.
    Sec. 386. Increase in INS detention facilities; report on
                          detention space.
    Sec. 387. Pilot program on use of closed military bases for the
                          detention of inadmissible or deportable
                          aliens.
    Sec. 388. Report on interior repatriation program.

            TITLE IV--ENFORCEMENT OF RESTRICTIONS AGAINST EMPLOYMENT

       Subtitle A--Pilot Programs for Employment Eligibility Confirmation

    Sec. 401. Establishment of programs.
    Sec. 402. Voluntary election to participate in a pilot program.
    Sec. 403. Procedures for participants in pilot programs.
    Sec. 404. Employment eligibility confirmation system.
    Sec. 405. Reports.

           Subtitle B--Other Provisions Relating to Employer Sanctions

    Sec. 411. Limiting liability for certain technical violations of
                          paperwork requirements.
    Sec. 412. Paperwork and other changes in the employer sanctions
                          program.
    Sec. 413. Report on additional authority or resources needed for
                          enforcement of employer sanctions
                          provisions.
    Sec. 414. Reports on earnings of aliens not authorized to work.
    Sec. 415. Authorizing maintenance of certain information on
                          aliens.
    Sec. 416. Subpoena authority.

           Subtitle C--Unfair Immigration-Related Employment Practices

    Sec. 421. Treatment of certain documentary practices as unfair
                          immigration-related employment practices.

                  TITLE V--RESTRICTIONS ON BENEFITS FOR ALIENS

      Subtitle A--Eligibility of Aliens for Public Assistance and Benefits

    Sec. 501. Exception to ineligibility for public benefits for
                          certain battered aliens.
    Sec. 502. Pilot programs on limiting issuance of driver's licenses
                          to illegal aliens.
    Sec. 503. Ineligibility of aliens not lawfully present for Social
                          Security benefits.
    Sec. 504. Procedures for requiring proof of citizenship for
                          Federal public benefits.
    Sec. 505. Limitation on eligibility for preferential treatment of
                          aliens not lawfully present on basis of
                          residence for higher education benefits.

    [[Page 110 STAT. 3009-551]]

    Sec. 506. Study and report on alien student eligibility for
                          postsecondary Federal student financial
                          assistance.
    Sec. 507. Verification of immigration status for purposes of
                          Social Security and higher educational
                          assistance.
    Sec. 508. No verification requirement for nonprofit charitable
                          organizations.
    Sec. 509. GAO study of provision of means-tested public benefits
                          to aliens who are not qualified aliens on
                          behalf of eligible individuals.
    Sec. 510. Transition for aliens currently receiving benefits under
                          the Food Stamp program.

                       Subtitle B--Public Charge Exclusion

    Sec. 531. Ground for exclusion.

                        Subtitle C--Affidavits of Support

    Sec. 551. Requirements for sponsor's affidavit of support.
    Sec. 552. Indigence and battered spouse and child exceptions to
                          Federal attribution of income rule.
    Sec. 553. Authority of States and political subdivisions of States
                          to limit assistance to aliens and to
                          distinguish among classes of aliens in
                          providing general cash public assistance.

                      Subtitle D--Miscellaneous Provisions

    Sec. 561. Increased maximum criminal penalties for forging or
                          counterfeiting seal of a Federal department
                          or agency to facilitate benefit fraud by an
                          unlawful alien.
    Sec. 562. Treatment of expenses subject to emergency medical
                          services exception.
    Sec. 563. Reimbursement of States and localities for emergency
                          ambulance services.
    Sec. 564. Pilot programs to require bonding.
    Sec. 565. Reports.

                         Subtitle E--Housing Assistance

    Sec. 571. Short title.
    Sec. 572. Prorating of financial assistance.
    Sec. 573. Actions in cases of termination of financial assistance.
    Sec. 574. Verification of immigration status and eligibility for
                          financial assistance.
    Sec. 575. Prohibition of sanctions against entities making
                          financial assistance eligibility
                          determinations.
    Sec. 576. Eligibility for public and assisted housing.
    Sec. 577. Regulations.

                         Subtitle F--General Provisions

    Sec. 591. Effective dates.
    Sec. 592. Not applicable to foreign assistance.

    [[Page 110 STAT. 3009-552]]

    Sec. 593. Notification.
    Sec. 594. Definitions.

                       TITLE VI--MISCELLANEOUS PROVISIONS

                    Subtitle A--Refugees, Parole, and Asylum

    Sec. 601. Persecution for resistance to coercive population
                          control methods.
    Sec. 602. Limitation on use of parole.
    Sec. 603. Treatment of long-term parolees in applying worldwide
                          numerical limitations.
    Sec. 604. Asylum reform.
    Sec. 605. Increase in asylum officers.
    Sec. 606. Conditional repeal of Cuban Adjustment Act.

    Subtitle B--Miscellaneous Amendments to the Immigration and Nationality
                                       Act

    Sec. 621. Alien witness cooperation.
    Sec. 622. Waiver of foreign country residence requirement with
                          respect to international medical graduates.
    Sec. 623. Use of legalization and special agricultural worker
                          information.
    Sec. 624. Continued validity of labor certifications and
                          classification petitions for professional
                          athletes.
    Sec. 625. Foreign students.
    Sec. 626. Services to family members of certain officers and
                          agents killed in the line of duty.

        Subtitle C--Provisions Relating to Visa Processing and Consular
                                   Efficiency

    Sec. 631. Validity of period of visas.
    Sec. 632. Elimination of consulate shopping for visa overstays.
    Sec. 633. Authority to determine visa processing procedures.
    Sec. 634. Changes regarding visa application process.
    Sec. 635. Visa waiver program.
    Sec. 636. Fee for diversity immigrant lottery.
    Sec. 637. Eligibility for visas for certain Polish applicants for
                          the 1995 diversity immigrant program.

                          Subtitle D--Other Provisions

    Sec. 641. Program to collect information relating to nonimmigrant
                          foreign students.
    Sec. 642. Communication between government agencies and the
                          Immigration and Naturalization Service.
    Sec. 643. Regulations regarding habitual residence.
    Sec. 644. Information regarding female genital mutilation.
    Sec. 645. Criminalization of female genital mutilation.

    [[Page 110 STAT. 3009-553]]

    Sec. 646. Adjustment of status for certain Polish and Hungarian
                          parolees.
    Sec. 647. Support of demonstration projects.
    Sec. 648. Sense of Congress regarding American-made products;
                          requirements regarding notice.
    Sec. 649. Vessel movement controls during immigration emergency.
    Sec. 650. Review of practices of testing entities.
    Sec. 651. Designation of a United States customs administrative
                          building.
    Sec. 652. Mail-order bride business.
    Sec. 653. Review and report on H-2A nonimmigrant workers program.
    Sec. 654. Report on allegations of harassment by Canadian customs
                          agents.
    Sec. 655. Sense of Congress on discriminatory application of New
                          Brunswick provincial sales tax.
    Sec. 656. Improvements in identification-related documents.
    Sec. 657. Development of prototype of counterfeit-resistant Social
                          Security card.
    Sec. 658. Border Patrol Museum.
    Sec. 659. Sense of the Congress regarding the mission of the
                          Immigration and Naturalization Service.
    Sec. 660. Authority for National Guard to assist in transportation
                          of certain aliens.

                        Subtitle E--Technical Corrections

    Sec. 671. Miscellaneous technical corrections.

        (e) Severability.--If <<NOTE: 8 USC 1101 note.>> any provision of
    this division or the application of such provision to any person or
    circumstances is held to be unconstitutional, the remainder of this
    division and the application of the provisions of this division to any
    person or circumstance shall not be affected thereby.

     TITLE I--IMPROVEMENTS TO BORDER CONTROL, FACILITATION OF LEGAL ENTRY,
                            AND INTERIOR ENFORCEMENT

                 Subtitle A--Improved Enforcement at the Border

    SEC. 101. BORDER PATROL AGENTS AND SUPPORT PERSONNEL.

        (a) Increased Number of Border Patrol Agents.--The Attorney General
    in each of fiscal years 1997, 1998, 1999, 2000, and 2001 shall increase
    by not less than 1,000 the number of positions for full-time, active-
    duty border patrol agents within the Immigration and Naturalization
    Service above the number of such positions for which funds were allotted
    for the preceding fiscal year.
        (b) Increase in Border Patrol Support Personnel.--The Attorney
    General, in each of fiscal years 1997, 1998, 1999, 2000,

    [[Page 110 STAT. 3009-554]]

    and 2001, may increase by 300 the number of positions for personnel in
    support of border patrol agents above the number of such positions for
    which funds were allotted for the preceding fiscal year.
        (c) Deployment of Border Patrol Agents.--The Attorney General shall,
    to the maximum extent practicable, ensure that additional border patrol
    agents shall be deployed among Immigration and Naturalization Service
    sectors along the border in proportion to the level of illegal crossing
    of the borders of the United States measured in each sector during the
    preceding fiscal year and reasonably anticipated in the next fiscal
    year.
        (d) Forward Deployment.--
                (1) In general.--The Attorney General shall forward deploy
            existing border patrol agents in those areas of the border
            identified as areas of high illegal entry into the United States
            in order to provide a uniform and visible deterrent to illegal
            entry on a continuing basis. The previous sentence shall not
            apply to border patrol agents located at checkpoints.
                (2) Preservation of law enforcement functions and
            capabilities in interior states.--The Attorney General shall,
            when deploying border patrol personnel from interior stations to
            border stations, coordinate with, and act in conjunction with,
            State and local law enforcement agencies to ensure that such
            deployment does not degrade or compromise the law enforcement
            capabilities and functions currently performed at interior
            border patrol stations.
                (3) Report.--Not later than 6 months after the date of the
            enactment of this Act, the Attorney General shall submit to the
            Committees on the Judiciary of the House of Representatives and
            of the Senate a report on--
                        (A) the progress and effectiveness of the forward
                    deployment under paragraph (1); and
                        (B) the measures taken to comply with paragraph (2).

    SEC. 102. <<NOTE: 8 USC 1103 note.>> IMPROVEMENT OF BARRIERS AT BORDER.

        (a) In General.--The Attorney General, in consultation with the
    Commissioner of Immigration and Naturalization, shall take such actions
    as may be necessary to install additional physical barriers and roads
    (including the removal of obstacles to detection of illegal entrants) in
    the vicinity of the United States border to deter illegal crossings in
    areas of high illegal entry into the United States.
        (b) Construction of Fencing and Road Improvements in the Border Area
    Near San Diego, California.--
                (1) In general.--In carrying out subsection (a), the
            Attorney General shall provide for the construction along the 14
            miles of the international land border of the United States,
            starting at the Pacific Ocean and extending eastward, of second
            and third fences, in addition to the existing reinforced fence,
            and for roads between the fences.
                (2) Prompt acquisition of necessary easements.--The Attorney
            General, acting under the authority conferred in section 103(b)
            of the Immigration and Nationality Act (as inserted by
            subsection (d)), shall promptly acquire such easements as may be
            necessary to carry out this subsection and shall commence
            construction of fences immediately following such acquisition
            (or conclusion of portions thereof).

    [[Page 110 STAT. 3009-555]]

                (3) Safety features.--The Attorney General, while
            constructing the additional fencing under this subsection, shall
            incorporate such safety features into the design of the fence
            system as are necessary to ensure the well-being of border
            patrol agents deployed within or in near proximity to the
            system.
                (4) Authorization of appropriations.--There are authorized
            to be appropriated to carry out this subsection not to exceed
            $12,000,000. Amounts appropriated under this paragraph are
            authorized to remain available until expended.

        (c) Waiver.--The provisions of the Endangered Species Act of 1973
    and the National Environmental Policy Act of 1969 are waived to the
    extent the Attorney General determines necessary to ensure expeditious
    construction of the barriers and roads under this section.
        (d) Land Acquisition Authority.--
                (1) In general.--Section 103 (8 U.S.C. 1103) is amended--
                        (A) by redesignating subsections (b), (c), and (d)
                    as subsections (c), (d), and (e), respectively; and
                        (B) by inserting after subsection (a) the following:

        ``(b)(1) The Attorney General may contract for or buy any interest
    in land, including temporary use rights, adjacent to or in the vicinity
    of an international land border when the Attorney General deems the land
    essential to control and guard the boundaries and borders of the United
    States against any violation of this Act.
        ``(2) The Attorney General may contract for or buy any interest in
    land identified pursuant to paragraph (1) as soon as the lawful owner of
    that interest fixes a price for it and the Attorney General considers
    that price to be reasonable.
        ``(3) When the Attorney General and the lawful owner of an interest
    identified pursuant to paragraph (1) are unable to agree upon a
    reasonable price, the Attorney General may commence condemnation
    proceedings pursuant to the Act of August 1, 1888 (Chapter 728; 25 Stat.
    357).
        ``(4) The Attorney General may accept for the United States a gift
    of any interest in land identified pursuant to paragraph (1).''.
                (2) Conforming amendment.--Section 103(e) (as so
            redesignated by paragraph (1)(A)) is amended by striking
            ``subsection (c)'' and inserting ``subsection (d)''.

    SEC. 103. <<NOTE: 8 USC 1103 note.>> IMPROVED BORDER EQUIPMENT AND
                TECHNOLOGY.

        The Attorney General is authorized to acquire and use, for the
    purpose of detection, interdiction, and reduction of illegal immigration
    into the United States, any Federal equipment (including fixed wing
    aircraft, helicopters, four-wheel drive vehicles, sedans, night vision
    goggles, night vision scopes, and sensor units) determined available for
    transfer by any other agency of the Federal Government upon request of
    the Attorney General.

    SEC. 104. IMPROVEMENT IN BORDER CROSSING IDENTIFICATION CARD.

        (a) In General.--Section 101(a)(6) (8 U.S.C. 1101(a)(6)) is amended
    by adding at the end the following: ``Such regulations shall provide
    that (A) each such document include a biometric identifier (such as the
    fingerprint or handprint of the alien) that is machine readable and (B)
    an alien presenting a border crossing

    [[Page 110 STAT. 3009-556]]

    identification card is not permitted to cross over the border into the
    United States unless the biometric identifier contained on the card
    matches the appropriate biometric characteristic of the alien.''.
        (b) Effective <<NOTE: 8 USC 1101 note.>> Dates.--
                (1) Clause a.--Clause (A) of the sentence added by the
            amendment made by subsection (a) shall apply to documents issued
            on or after 18 months after the date of the enactment of this
            Act.
                (2) Clause b.--Clause (B) of such sentence shall apply to
            cards presented on or after 3 years after the date of the
            enactment of this Act.

    SEC. 105. CIVIL PENALTIES FOR ILLEGAL ENTRY.

        (a) In General.--Section 275 (8 U.S.C. 1325) is amended--
                (1) by redesignating subsections (b) and (c) as subsections
            (c) and (d), respectively; and
                (2) by inserting after subsection (a) the following:

        ``(b) Any alien who is apprehended while entering (or attempting to
    enter) the United States at a time or place other than as designated by
    immigration officers shall be subject to a civil penalty of--
                ``(1) at least $50 and not more than $250 for each such
            entry (or attempted entry); or
                ``(2) twice the amount specified in paragraph (1) in the
            case of an alien who has been previously subject to a civil
            penalty under this subsection.

    Civil penalties under this subsection are in addition to, and not in
    lieu of, any criminal or other civil penalties that may be imposed.''.
        (b) Effective <<NOTE: 8 USC 1325 note.>> Date.--The amendments made
    by subsection (a) shall apply to illegal entries or attempts to enter
    occurring on or after the first day of the sixth month beginning after
    the date of the enactment of this Act.

    SEC. 106. <<NOTE: 8 USC 1103 note.>> HIRING AND TRAINING STANDARDS.

        (a) Review of Hiring Standards.--Not later than 60 days after the
    date of the enactment of this Act, the Attorney General shall complete a
    review of all prescreening and hiring standards used by the Commissioner
    of Immigration and Naturalization, and, where necessary, revise such
    standards to ensure that they are consistent with relevant standards of
    professionalism.
        (b) Certification.--At the conclusion of each of fiscal years 1997,
    1998, 1999, 2000, and 2001, the Attorney General shall certify in
    writing to the Committees on the Judiciary of the House of
    Representatives and of the Senate that all personnel hired by the
    Commissioner of Immigration and Naturalization for such fiscal year were
    hired pursuant to the appropriate standards, as revised under subsection
    (a).
        (c) Review of Training Standards.--
                (1) Review.--Not later than 180 days after the date of the
            enactment of this Act, the Attorney General shall complete a
            review of the sufficiency of all training standards used by the
            Commissioner of Immigration and Naturalization.
                (2) Report.--
                        (A) In general.--Not later than 90 days after the
                    completion of the review under paragraph (1), the
                    Attorney General shall submit a report to the Committees
                    on the

    [[Page 110 STAT. 3009-557]]

                    Judiciary of the House of Representatives and of the
                    Senate on the results of the review, including--
                              (i) a description of the status of efforts to
                          update and improve training throughout the
                          Immigration and Naturalization Service; and
                              (ii) an estimate of when such efforts are
                          expected to be completed.
                        (B) Areas requiring future review.--The report shall
                    disclose those areas of training that the Attorney
                    General determines require further review in the future.

    SEC. 107. <<NOTE: 8 USC 1103 note.>> REPORT ON BORDER STRATEGY.

        (a) Evaluation of Strategy.--The Comptroller General of the United
    States shall track, monitor, and evaluate the Attorney General's
    strategy to deter illegal entry in the United States to determine the
    efficacy of such strategy.
        (b) Cooperation.--The Attorney General, the Secretary of State, and
    the Secretary of Defense shall cooperate with the Comptroller General of
    the United States in carrying out subsection (a).
        (c) Report.--Not later than one year after the date of the enactment
    of this Act, and every year thereafter for the succeeding 5 years, the
    Comptroller General of the United States shall submit a report to the
    Committees on the Judiciary of the House of Representatives and of the
    Senate on the results of the activities undertaken under subsection (a)
    during the previous year. Each such report shall include an analysis of
    the degree to which the Attorney General's strategy has been effective
    in reducing illegal entry. Each such report shall include a collection
    and systematic analysis of data, including workload indicators, related
    to activities to deter illegal entry and recommendations to improve and
    increase border security at the border and ports of entry.

    SEC. 108. CRIMINAL PENALTIES FOR HIGH SPEED FLIGHTS FROM IMMIGRATION
                CHECKPOINTS.

        (a) Findings.--The <<NOTE: 18 USC 758 note.>> Congress finds as
    follows:
                (1) Immigration checkpoints are an important component of
            the national strategy to prevent illegal immigration.
                (2) Individuals fleeing immigration checkpoints and leading
            law enforcement officials on high speed vehicle chases endanger
            law enforcement officers, innocent bystanders, and the fleeing
            individuals themselves.
                (3) The pursuit of suspects fleeing immigration checkpoints
            is complicated by overlapping jurisdiction among Federal, State,
            and local law enforcement officers.

        (b) High Speed Flight from Immigration Checkpoints.--
                (1) In general.--Chapter 35 of title 18, United States Code,
            is amended by adding at the end the following:

    ``Sec. 758. High speed flight from immigration checkpoint

        ``Whoever flees or evades a checkpoint operated by the Immigration
    and Naturalization Service, or any other Federal law enforcement agency,
    in a motor vehicle and flees Federal, State, or local law enforcement
    agents in excess of the legal speed limit shall be fined under this
    title, imprisoned not more than five years, or both.''.

    [[Page 110 STAT. 3009-558]]

                (2) Clerical amendment.--The table of sections at the
            beginning of such chapter is amended by inserting after the item
            relating to section 757 the following:

    ``758. High speed flight from immigration checkpoint.''.

        (c) Grounds for Deportation.--Section 241(a)(2)(A) (8 U.S.C.
    1251(a)(2)(A)) is amended--
                (1) by redesignating clause (iv) as clause (v);
                (2) by inserting after clause (iii) the following:
                              ``(iv) High speed flight.--Any alien who is
                          convicted of a violation of section 758 of title
                          18, United States Code, (relating to high speed
                          flight from an immigration checkpoint) is
                          deportable.''; and
                (3) in clause (v) (as so redesignated by paragraph (1)), by
            striking ``and (iii)'' and inserting ``(iii), and (iv)''.

    SEC. 109. JOINT STUDY OF AUTOMATED DATA COLLECTION.

        (a) Study.--The Attorney General, together with the Secretary of
    State, the Secretary of Agriculture, the Secretary of the Treasury, and
    appropriate representatives of the air transport industry, shall jointly
    undertake a study to develop a plan for making the transition to
    automated data collection at ports of entry.
        (b) Report.--Nine months after the date of the enactment of this
    Act, the Attorney General shall submit a report to the Committees on the
    Judiciary of the Senate and the House of Representatives on the outcome
    of the joint initiative under subsection (a), noting specific areas of
    agreement and disagreement, and recommending further steps to be taken,
    including any suggestions for legislation.

    SEC. 110. <<NOTE: 8 USC 1221 note.>> AUTOMATED ENTRY-EXIT CONTROL
                SYSTEM.

        (a) System.--Not later than 2 years after the date of the enactment
    of this Act, the Attorney General shall develop an automated entry and
    exit control system that will--
                (1) collect a record of departure for every alien departing
            the United States and match the records of departure with the
            record of the alien's arrival in the United States; and
                (2) enable the Attorney General to identify, through on-line
            searching procedures, lawfully admitted nonimmigrants who remain
            in the United States beyond the period authorized by the
            Attorney General.

        (b) Report.--
                (1) Deadline.--Not later than December 31 of each year
            following the development of the system under subsection (a),
            the Attorney General shall submit an annual report to the
            Committees on the Judiciary of the House of Representatives and
            of the Senate on such system.
                (2) Information.--The report shall include the following
            information:
                        (A) The number of departure records collected, with
                    an accounting by country of nationality of the departing
                    alien.
                        (B) The number of departure records that were
                    successfully matched to records of the alien's prior
                    arrival in the United States, with an accounting by the
                    alien's country of nationality and by the alien's
                    classification as an immigrant or nonimmigrant.

    [[Page 110 STAT. 3009-559]]

                        (C) The number of aliens who arrived as
                    nonimmigrants, or as a visitor under the visa waiver
                    program under section 217 of the Immigration and
                    Nationality Act, for whom no matching departure record
                    has been obtained through the system or through other
                    means as of the end of the alien's authorized period of
                    stay, with an accounting by the alien's country of
                    nationality and date of arrival in the United States.

        (c) Use of Information on Overstays.--Information regarding aliens
    who have remained in the United Staty beyond their authorized period of
    stay identified through the system shall be integrated into appropriate
    data bases of the Immigration and Naturalization Service and the
    Department of State, including those used at ports of entry and at
    consular offices.

    SEC. 111. SUBMISSION OF FINAL PLAN ON REALIGNMENT OF BORDER PATROL
                POSITIONS FROM INTERIOR STATIONS.

        Not later than November 30, 1996, the Attorney General shall submit
    to the Committees on the Judiciary of the House of Representatives and
    of the Senate a final plan regarding the redeployment of border patrol
    personnel from interior locations to the front lines of the border. The
    final plan shall be consistent with the following:
                (1) The preliminary plan regarding such redeployment
            submitted by the Attorney General on May 17, 1996, to the
            Committee on Appropriations of the House of Representatives and
            the Committee on Appropriations of the Senate.
                (2) The direction regarding such redeployment provided in
            the joint explanatory statement of the committee of conference
            in the conference report to accompany the Omnibus Consolidated
            Rescissions and Appropriations Act of 1996 (Public Law 104-134).

    SEC. 112. NATIONWIDE FINGERPRINTING OF APPREHENDED ALIENS.

        There are authorized to be appropriated such additional sums as may
    be necessary to ensure that the ``IDENT'' program (operated by the
    Immigration and Naturalization Service) is expanded to apply to illegal
    or criminal aliens apprehended nationwide.

                     Subtitle B--Facilitation of Legal Entry

    SEC. 121. LAND BORDER INSPECTORS.

        In order to eliminate undue delay in the thorough inspection of
    persons and vehicles lawfully attempting to enter the United States, the
    Attorney General and the Secretary of the Treasury each shall increase,
    by approximately equal numbers in each of fiscal years 1997 and 1998,
    the number of full-time land border inspectors assigned to active duty
    by the Immigration and Naturalization Service and the United States
    Customs Service to a level adequate to assure full staffing during peak
    crossing hours of all border crossing lanes currently in use, under
    construction, or whose construction has been authorized by the Congress,
    except such low-use lanes as the Attorney General may designate.

    [[Page 110 STAT. 3009-560]]

    SEC. 122. LAND BORDER INSPECTION AND AUTOMATED PERMIT PILOT PROJECTS.

        (a) Extension of Land Border Inspection Project Authority;
    Establishment of Automated Permit Pilot Projects.--Section 286(q)
    is <<NOTE: 8 USC 1356.>> amended--
                (1) by striking the matter preceding paragraph (2) and
            inserting the following:

        ``(q) Land Border Inspection Fee Account.--(1)(A)(i) Notwithstanding
    any other provision of law, the Attorney General is authorized to
    establish, by regulation, not more than 6 projects under which a fee may
    be charged and collected for inspection services provided at one or more
    land border points of entry. Such projects may include the establishment
    of commuter lanes to be made available to qualified United States
    citizens and aliens, as determined by the Attorney General.
        ``(ii) The program authorized in this subparagraph shall terminate
    on September 30, 2000, unless further authorized by an Act of Congress.
        ``(iii) This subparagraph shall take effect, with respect to any
    project described in clause (1) that was not authorized to be commenced
    before the date of the enactment of the Illegal Immigration Reform and
    Immigrant Responsibility Act of 1996, 30 days after submission of a
    written plan by the Attorney General detailing the proposed
    implementation of such project.
        ``(iv) The Attorney General shall prepare and submit on a quarterly
    basis, until September 30, 2000, a status report on each land border
    inspection project implemented under this subparagraph.
        ``(B) The Attorney General, in consultation with the Secretary of
    the Treasury, may conduct pilot projects to demonstrate the use of
    designated ports of entry after working hours through the use of card
    reading machines or other appropriate technology.''; and
                (2) by striking paragraph (5).

        (b) Conforming amendment.--The Departments of Commerce, Justice, and
    State, the Judiciary, and Related Agencies Appropriation Act, 1994
    (Public Law 103-121, 107 Stat. 1161) <<NOTE: 8 USC 1356 note.>>  is
    amended by striking the fourth proviso under the heading ``Immigration
    and Naturalization Service, Salaries and Expenses''.

    SEC. 123. PREINSPECTION AT FOREIGN AIRPORTS.

        (a) In General.--The Immigration and Nationality Act is amended by
    inserting after section 235 the following:

                       ``preinspection at foreign airports

        ``Sec. 235A. (a) Establishment <<NOTE: 8 USC 1225a.>> of
    Preinspection Stations.--
                ``(1) New stations.--Subject to paragraph (5), not later
            than October 31, 1998, the Attorney General, in consultation
            with the Secretary of State, shall establish and maintain
            preinspection stations in at least 5 of the foreign airports
            that are among the 10 foreign airports which the Attorney
            General identifies as serving as last points of departure for
            the greatest numbers of inadmissible alien passengers who arrive
            from abroad by air at ports of entry within the United States.
            Such preinspection stations shall be in addition to any
            preinspection stations established prior to the date of the
            enactment of such Act.

    [[Page 110 STAT. 3009-561]]

                ``(2) Report.--Not later than October 31, 1998, the Attorney
            General shall report to the Committees on the Judiciary of the
            House of Representatives and of the Senate on the implementation
            of paragraph (1).
                ``(3) Data collection.--Not later than November 1, 1997, and
            each subsequent November 1, the Attorney General shall compile
            data identifying--
                        ``(A) the foreign airports which served as last
                    points of departure for aliens who arrived by air at
                    United States ports of entry without valid documentation
                    during the preceding fiscal years;
                        ``(B) the number and nationality of such aliens
                    arriving from each such foreign airport; and
                        ``(C) the primary routes such aliens followed from
                    their country of origin to the United States.
                ``(4) Additional stations.--Subject to paragraph (5), not
            later than October 31, 2000, the Attorney General, in
            consultation with the Secretary of State, shall establish
            preinspection stations in at least 5 additional foreign airports
            which the Attorney General, in consultation with the Secretary
            of State, determines, based on the data compiled under paragraph
            (3) and such other information as may be available, would most
            effectively reduce the number of aliens who arrive from abroad
            by air at points of entry within the United States who are
            inadmissible to the United States. Such preinspection stations
            shall be in addition to those established prior to the date of
            the enactment of such Act or pursuant to paragraph (1).
                ``(5) Conditions.--Prior to the establishment of a
            preinspection station, the Attorney General, in consultation
            with the Secretary of State, shall ensure that--
                        ``(A) employees of the United States stationed at
                    the preinspection station and their accompanying family
                    members will receive appropriate protection;
                        ``(B) such employees and their families will not be
                    subject to unreasonable risks to their welfare and
                    safety; and
                        ``(C) the country in which the preinspection station
                    is to be established maintains practices and procedures
                    with respect to asylum seekers and refugees in
                    accordance with the Convention Relating to the Status of
                    Refugees (done at Geneva, July 28, 1951), or the
                    Protocol Relating to the Status of Refugees (done at New
                    York, January 31, 1967), or that an alien in the country
                    otherwise has recourse to avenues of protection from
                    return to persecution.

        ``(b) Establishment of Carrier Consultant Program.--The Attorney
    General shall assign additional immigration officers to assist air
    carriers in the detection of fraudulent documents at foreign airports
    which, based on the records maintained pursuant to subsection (a)(3),
    served as a point of departure for a significant number of arrivals at
    United States ports of entry without valid documentation, but where no
    preinspection station exists.''.
        (b) Clerical Amendment.--The table of contents is amended by
    inserting after the item relating to section 235 the following:

    ``Sec. 235A.  Preinspection at foreign airports.''.

    [[Page 110 STAT. 3009-562]]

    SEC. 124. TRAINING OF AIRLINE PERSONNEL IN DETECTION OF FRAUDULENT
                DOCUMENTS.

        (a) Use of Funds.--
                (1) In general.--Section 286(h)(2)(A) (8 U.S.C.
            1356(h)(2)(A)) is amended--
                        (A) in clause (iv), by inserting ``, including
                    training of, and technical assistance to, commercial
                    airline personnel regarding such detection'' after
                    ``United States''; and
                        (B) by adding at the end the following:

    ``The Attorney General shall provide for expenditures for training and
    assistance described in clause (iv) in an amount, for any fiscal year,
    not less than 5 percent of the total of the expenses incurred that are
    described in the previous sentence.''.
                (2) Applicability.--The <<NOTE: 8 USC 1356
            note.>> amendments made by paragraph (1) shall apply to expenses
            incurred during or after fiscal year 1997.

        (b) Compliance With Detection Regulations.--
                (1) In general.--Section 212(f) (8 U.S.C. 1182(f)) is
            amended by adding at the end the following: ``Whenever the
            Attorney General finds that a commercial airline has failed to
            comply with regulations of the Attorney General relating to
            requirements of airlines for the detection of fraudulent
            documents used by passengers traveling to the United States
            (including the training of personnel in such detection), the
            Attorney General may suspend the entry of some or all aliens
            transported to the United States by such airline.''.
                (2) Deadline.--The <<NOTE: 8 USC 1182 note.>> Attorney
            General shall first issue, in proposed form, regulations
            referred to in the second sentence of section 212(f) of the
            Immigration and Nationality Act, as added by the amendment made
            by paragraph (1), not later than 90 days after the date of the
            enactment of this Act.

    SEC. 125. PRECLEARANCE AUTHORITY.

        Section 103(a) of the Immigration and Nationality Act (8 U.S.C.
    1103(a)) is amended by adding at the end the following:
    ``After consultation with the Secretary of State, the Attorney General
    may authorize officers of a foreign country to be stationed at
    preclearance facilities in the United States for the purpose of ensuring
    that persons traveling from or through the United States to that foreign
    country comply with that country's immigration and related laws. Those
    officers may exercise such authority and perform such duties as United
    States immigration officers are authorized to exercise and perform in
    that foreign country under reciprocal agreement, and they shall enjoy
    such reasonable privileges and immunities necessary for the performance
    of their duties as the government of their country extends to United
    States immigration officers.''.

                        Subtitle C--Interior Enforcement

    SEC. 131. AUTHORIZATION OF APPROPRIATIONS FOR INCREASE IN NUMBER OF
                CERTAIN INVESTIGATORS.

        (a) Authorization.--There are authorized to be appropriated such
    funds as may be necessary to enable the Commissioner of Immigration and
    Naturalization to increase the number of investigators and support
    personnel to investigate potential violations

    [[Page 110 STAT. 3009-563]]

    of sections 274 and 274A of the Immigration and Nationality Act by a
    number equivalent to 300 full-time active-duty investigators in each of
    fiscal years 1997, 1998, and 1999.
        (b) Allocation of Investigators.--At least one-half of the
    investigators hired with funds made available under subsection (a) shall
    be assigned to investigate potential violations of section 274A of the
    Immigration and Nationality Act.
        (c) Limitation on Overtime.--None of the funds made available under
    subsection (a) shall be available for administrative expenses to pay any
    employee overtime pay in an amount in excess of $25,000 for any fiscal
    year.

    SEC. 132. AUTHORIZATION OF APPROPRIATIONS FOR INCREASE IN NUMBER OF
                INVESTIGATORS OF VISA OVERSTAYERS.

        There are authorized to be appropriated such funds as may be
    necessary to enable the Commissioner of Immigration and Naturalization
    to increase the number of investigators and support personnel to
    investigate visa overstayers by a number equivalent to 300 full-time
    active-duty investigators in fiscal year 1997.

    SEC. 133. ACCEPTANCE OF STATE SERVICES TO CARRY OUT IMMIGRATION
                ENFORCEMENT.

        Section 287 (8 U.S.C. 1357) is amended by adding at the end the
    following:
        ``(g)(1) Notwithstanding section 1342 of title 31, United States
    Code, the Attorney General may enter into a written agreement with a
    State, or any political subdivision of a State, pursuant to which an
    officer or employee of the State or subdivision, who is determined by
    the Attorney General to be qualified to perform a function of an
    immigration officer in relation to the investigation, apprehension, or
    detention of aliens in the United States (including the transportation
    of such aliens across State lines to detention centers), may carry out
    such function at the expense of the State or political subdivision and
    to the extent consistent with State and local law.
        ``(2) An agreement under this subsection shall require that an
    officer or employee of a State or political subdivision of a State
    performing a function under the agreement shall have knowledge of, and
    adhere to, Federal law relating to the function, and shall contain a
    written certification that the officers or employees performing the
    function under the agreement have received adequate training regarding
    the enforcement of relevant Federal immigration laws.
        ``(3) In performing a function under this subsection, an officer or
    employee of a State or political subdivision of a State shall be subject
    to the direction and supervision of the Attorney General.
        ``(4) In performing a function under this subsection, an officer or
    employee of a State or political subdivision of a State may use Federal
    property or facilities, as provided in a written agreement between the
    Attorney General and the State or subdivision.
        ``(5) With respect to each officer or employee of a State or
    political subdivision who is authorized to perform a function under this
    subsection, the specific powers and duties that may be, or are required
    to be, exercised or performed by the individual, the duration of the
    authority of the individual, and the position of the agency of the
    Attorney General who is required to supervise and direct the individual,
    shall be set forth in a written agreement between the Attorney General
    and the State or political subdivision.

    [[Page 110 STAT. 3009-564]]

        ``(6) The Attorney General may not accept a service under this
    subsection if the service will be used to displace any Federal employee.
        ``(7) Except as provided in paragraph (8), an officer or employee of
    a State or political subdivision of a State performing functions under
    this subsection shall not be treated as a Federal employee for any
    purpose other than for purposes of chapter 81 of title 5, United States
    Code, (relating to compensation for injury) and sections 2671 through
    2680 of title 28, United States Code (relating to tort claims).
        ``(8) An officer or employee of a State or political subdivision of
    a State acting under color of authority under this subsection, or any
    agreement entered into under this subsection, shall be considered to be
    acting under color of Federal authority for purposes of determining the
    liability, and immunity from suit, of the officer or employee in a civil
    action brought under Federal or State law.
        ``(9) Nothing in this subsection shall be construed to require any
    State or political subdivision of a State to enter into an agreement
    with the Attorney General under this subsection.
        ``(10) Nothing in this subsection shall be construed to require an
    agreement under this subsection in order for any officer or employee of
    a State or political subdivision of a State--
                ``(A) to communicate with the Attorney General regarding the
            immigration status of any individual, including reporting
            knowledge that a particular alien is not lawfully present in the
            United States; or
                ``(B) otherwise to cooperate with the Attorney General in
            the identification, apprehension, detention, or removal of
            aliens not lawfully present in the United States.''.

    SEC. 134. MINIMUM STATE INS PRESENCE.

        (a) In General.--Section 103 (8 U.S.C. 1103), as amended by section
    102(e) of this division, is further amended by adding at the end the
    following:
        ``(f) The Attorney General shall allocate to each State not fewer
    than 10 full-time active duty agents of the Immigration and
    Naturalization Service to carry out the functions of the Service, in
    order to ensure the effective enforcement of this Act.''.
        (b) Effective <<NOTE: 8 USC 1103 note.>> Date.--The amendment made
    by subsection (a) shall take effect 90 days after the date of the
    enactment of this Act.

     TITLE II--ENHANCED ENFORCEMENT AND PENALTIES AGAINST ALIEN SMUGGLING;
                                 DOCUMENT FRAUD

     Subtitle A--Enhanced Enforcement and Penalties Against Alien Smuggling

    SEC. 201. WIRETAP AUTHORITY FOR INVESTIGATIONS OF ALIEN SMUGGLING OR
                DOCUMENT FRAUD.

        Section 2516(1) of title 18, United States Code, is amended--
                (1) in paragraph (c), by striking ``or section 1992
            (relating to wrecking trains)'' and inserting ``section 1992
            (relating to

    [[Page 110 STAT. 3009-565]]

            wrecking trains), a felony violation of section 1028 (relating
            to production of false identification documentation), section
            1425 (relating to the procurement of citizenship or
            nationalization unlawfully), section 1426 (relating to the
            reproduction of naturalization or citizenship papers), section
            1427 (relating to the sale of naturalization or citizenship
            papers), section 1541 (relating to passport issuance without
            authority), section 1542 (relating to false statements in
            passport applications), section 1543 (relating to forgery or
            false use of passports), section 1544 (relating to misuse of
            passports), or section 1546 (relating to fraud and misuse of
            visas, permits, and other documents)'';
                (2) by striking ``or'' at the end of paragraph (l);
                (3) by redesignating paragraphs (m), (n), and (o) as
            paragraphs (n), (o), and (p), respectively; and
                (4) by inserting after paragraph (l) the following new
            paragraph:
                ``(m) a violation of section 274, 277, or 278 of the
            Immigration and Nationality Act (8 U.S.C. 1324, 1327, or 1328)
            (relating to the smuggling of aliens);''.

    SEC. 202. RACKETEERING OFFENSES RELATING TO ALIEN SMUGGLING.

        Section 1961(1) of title 18, United States Code, as amended by
    section 433 of Public Law 104-132, is amended--
                (1) by striking ``if the act indictable under section 1028
            was committed for the purpose of financial gain'';
                (2) by inserting ``section 1425 (relating to the procurement
            of citizenship or nationalization unlawfully), section 1426
            (relating to the reproduction of naturalization or citizenship
            papers), section 1427 (relating to the sale of naturalization or
            citizenship papers),'' after ``section 1344 (relating to
            financial institution fraud),'';
                (3) by striking ``if the act indictable under section 1542
            was committed for the purpose of financial gain'';
                (4) by striking ``if the act indictable under section 1543
            was committed for the purpose of financial gain'';
                (5) by striking ``if the act indictable under section 1544
            was committed for the purpose of financial gain''; and
                (6) by striking ``if the act indictable under section 1546
            was committed for the purpose of financial gain''.

    SEC. 203. INCREASED CRIMINAL PENALTIES FOR ALIEN SMUGGLING.

        (a) Commercial Advantage.--Section 274(a)(1)(B)(i) (8 U.S.C.
    1324(a)(1)(B)(i)) is amended by inserting ``or in the case of a
    violation of subparagraph (A)(ii), (iii), or (iv) in which the offense
    was done for the purpose of commercial advantage or private financial
    gain'' after ``subparagraph (A)(i)''.
        (b) Additional Offenses.--Section 274(a) (8 U.S.C. 1324(a)) is
    amended--
                (1) in paragraph (1)(A)--
                        (A) by striking ``or'' at the end of clause (iii);
                        (B) by striking the comma at the end of clause (iv)
                    and inserting ``; or''; and
                        (C) by adding at the end the following new clause:
                ``(v)(I) engages in any conspiracy to commit any of the
            preceding acts, or
                ``(II) aids or abets the commission of any of the preceding
            acts,'';
                (2) in paragraph (1)(B)--

    [[Page 110 STAT. 3009-566]]

                        (A) in clause (i), by inserting ``or (v)(I)'' after
                    ``(A)(i)'';
                        (B) in clause (ii), by striking ``or (iv)'' and
                    inserting ``(iv), or (v)(II)'';
                        (C) in clause (iii), by striking ``or (iv)'' and
                    inserting ``(iv), or (v)''; and
                        (D) in clause (iv), by striking ``or (iv)'' and
                    inserting ``(iv), or (v)'';
                (3) in paragraph (2)(B), by striking ``be fined'' and all
            that follows and inserting the following: ``be fined under title
            18, United States Code, and shall be imprisoned, in the case of
            a first or second violation of subparagraph (B)(iii), not more
            than 10 years, in the case of a first or second violation of
            subparagraph (B)(i) or (B)(ii), not less than 3 nor more than 10
            years, and for any other violation, not less than 5 nor more
            than 15 years.''; and
                (4) by adding at the end the following new paragraph:

        ``(3)(A) Any person who, during any 12-month period, knowingly hires
    for employment at least 10 individuals with actual knowledge that the
    individuals are aliens described in subparagraph (B) shall be fined
    under title 18, United States Code, or imprisoned for not more than 5
    years, or both.
        ``(B) An alien described in this subparagraph is an alien who--
                ``(i) is an unauthorized alien (as defined in section
            274A(h)(3)), and
                ``(ii) has been brought into the United States in violation
            of this subsection.''.

        (c) Smuggling of Aliens Who Will Commit Crimes.--Clause (i) of
    section 274(a)(2)(B) (8 U.S.C. 1324(a)(2)(B)) is amended to read as
    follows:
                        ``(i) an offense committed with the intent or with
                    reason to believe that the alien unlawfully brought into
                    the United States will commit an offense against the
                    United States or any State punishable by imprisonment
                    for more than 1 year,''.

        (d) Applying Certain Penalties on a Per Alien Basis.--Section
    274(a)(2) (8 U.S.C. 1324(a)(2)) is amended by striking ``for each
    transaction constituting a violation of this paragraph, regardless of
    the number of aliens involved'' and inserting ``for each alien in
    respect to whom a violation of this paragraph occurs''.
        (e) Sentencing <<NOTE: 28 USC 994 note.>> Guidelines.--
                (1) In general.--Pursuant to its authority under section
            994(p) of title 28, United States Code, the United States
            Sentencing Commission shall promulgate sentencing guidelines or
            amend existing sentencing guidelines for offenders convicted of
            offenses related to smuggling, transporting, harboring, or
            inducing aliens in violation of section 274(a) (1)(A) or (2) of
            the Immigration and Nationality Act (8 U.S.C. 1324(a)(1)(A),
            (2)(B)) in accordance with this subsection.
                (2) Requirements.--In carrying out this subsection, the
            Commission shall, with respect to the offenses described in
            paragraph (1)--
                        (A) increase the base offense level for such
                    offenses at least 3 offense levels above the applicable
                    level in effect on the date of the enactment of this
                    Act;
                        (B) review the sentencing enhancement for the number
                    of aliens involved (U.S.S.G. 2L1.1(b)(2)), and increase
                    the sentencing enhancement by at least 50 percent above
                    the

    [[Page 110 STAT. 3009-567]]

                    applicable enhancement in effect on the date of the
                    enactment of this Act;
                        (C) impose an appropriate sentencing enhancement
                    upon an offender with 1 prior felony conviction arising
                    out of a separate and prior prosecution for an offense
                    that involved the same or similar underlying conduct as
                    the current offense, to be applied in addition to any
                    sentencing enhancement that would otherwise apply
                    pursuant to the calculation of the defendant's criminal
                    history category;
                        (D) impose an additional appropriate sentencing
                    enhancement upon an offender with 2 or more prior felony
                    convictions arising out of separate and prior
                    prosecutions for offenses that involved the same or
                    similar underling conduct as the current offense, to be
                    applied in addition to any sentencing enhancement that
                    would otherwise apply pursuant to the calculation of the
                    defendant's criminal history category;
                        (E) impose an appropriate sentencing enhancement on
                    a defendant who, in the course of committing an offense
                    described in this subsection--
                              (i) murders or otherwise causes death, bodily
                          injury, or serious bodily injury to an individual;
                              (ii) uses or brandishes a firearm or other
                          dangerous weapon; or
                              (iii) engages in conduct that consciously or
                          recklessly places another in serious danger of
                          death or serious bodily injury;
                        (F) consider whether a downward adjustment is
                    appropriate if the offense is a first offense and
                    involves the smuggling only of the alien's spouse or
                    child; and
                        (G) consider whether any other aggravating or
                    mitigating circumstances warrant upward or downward
                    sentencing adjustments.
                (3) Emergency authority to sentencing commission.--The
            Commission shall promulgate the guidelines or amendments
            provided for under this subsection as soon as practicable in
            accordance with the procedure set forth in section 21(a) of the
            Sentencing Act of 1987, as though the authority under that Act
            had not expired.

        (f) Effective <<NOTE: 8 USC 1324 note.>> Date.--This section and the
    amendments made by this section shall apply with respect to offenses
    occurring on or after the date of the enactment of this Act.

    SEC. 204. INCREASED NUMBER OF ASSISTANT UNITED STATES ATTORNEYS.

        (a) In General.--The number of Assistant United States Attorneys
    employed by the Department of Justice for the fiscal year 1997 shall be
    increased by at least 25 above the number of Assistant United States
    Attorneys that were authorized to be employed as of September 30, 1996.
        (b) Assignment.--Individuals employed to fill the additional
    positions described in subsection (a) shall prosecute persons who bring
    into the United States or harbor illegal aliens or violate other
    criminal statutes involving illegal aliens.

    SEC. 205. UNDERCOVER INVESTIGATION AUTHORITY.

        (a) In General.--Title II is amended by adding at the end the
    following new section:

    [[Page 110 STAT. 3009-568]]

                      ``undercover investigation authority

        ``Sec. 294. <<NOTE: 8 USC 1363a.>> (a) In General.--With respect to
    any undercover investigative operation of the Service which is necessary
    for the detection and prosecution of crimes against the United States--
                ``(1) sums appropriated for the Service may be used for
            leasing space within the United States and the territories and
            possessions of the United States without regard to the following
            provisions of law:
                        ``(A) section 3679(a) of the Revised Statutes (31
                    U.S.C. 1341),
                        ``(B) section 3732(a) of the Revised Statutes (41
                    U.S.C. 11(a)),
                        ``(C) section 305 of the Act of June 30, 1949 (63
                    Stat. 396; 41 U.S.C. 255),
                        ``(D) the third undesignated paragraph under the
                    heading `Miscellaneous' of the Act of March 3, 1877 (19
                    Stat. 370; 40 U.S.C. 34),
                        ``(E) section 3648 of the Revised Statutes (31
                    U.S.C. 3324),
                        ``(F) section 3741 of the Revised Statutes (41
                    U.S.C. 22), and
                        ``(G) subsections (a) and (c) of section 304 of the
                    Federal Property and Administrative Services Act of 1949
                    (63 Stat. 395; 41 U.S.C. 254 (a) and (c));
                ``(2) sums appropriated for the Service may be used to
            establish or to acquire proprietary corporations or business
            entities as part of an undercover operation, and to operate such
            corporations or business entities on a commercial basis, without
            regard to the provisions of section 304 of the Government
            Corporation Control Act (31 U.S.C. 9102);
                ``(3) sums appropriated for the Service, and the proceeds
            from the undercover operation, may be deposited in banks or
            other financial institutions without regard to the provisions of
            section 648 of title 18, United States Code, and of section 3639
            of the Revised Statutes (31 U.S.C. 3302); and
                ``(4) the proceeds from the undercover operation may be used
            to offset necessary and reasonable expenses incurred in such
            operation without regard to the provisions of section 3617 of
            the Revised Statutes (31 U.S.C. 3302).

    The authority set forth in this subsection may be exercised only upon
    written certification of the Commissioner, in consultation with the
    Deputy Attorney General, that any action authorized by paragraph (1),
    (2), (3), or (4) is necessary for the conduct of the undercover
    operation.
        ``(b) Disposition of Proceeds No Longer Required.--As soon as
    practicable after the proceeds from an undercover investigative
    operation, carried out under paragraphs (3) and (4) of subsection (a),
    are no longer necessary for the conduct of the operation, the proceeds
    or the balance of the proceeds remaining at the time shall be deposited
    into the Treasury of the United States as miscellaneous receipts.
        ``(c) Disposition of Certain Corporations and Business Entities.--If
    a corporation or business entity established or acquired as part of an
    undercover operation under paragraph (2) of subsection (a) with a net
    value of over $50,000 is to be liquidated, sold, or otherwise disposed
    of, the Service, as much in advance

    [[Page 110 STAT. 3009-569]]

    as the Commissioner or Commissioner's designee determines practicable,
    shall report the circumstances to the Attorney General, the Director of
    the Office of Management and Budget, and the Comptroller General. The
    proceeds of the liquidation, sale, or other disposition, after
    obligations are met, shall be deposited in the Treasury of the United
    States as miscellaneous receipts.
        ``(d) Financial Audits.--The Service shall conduct detailed
    financial audits of closed undercover operations on a quarterly basis
    and shall report the results of the audits in writing to the Deputy
    Attorney General.''.
        (b) Clerical Amendment.--The table of contents is amended by
    inserting after the item relating to section 293 the following:

    ``Sec. 294. Undercover investigation authority.''.

                    Subtitle B--Deterrence of Document Fraud

    SEC. 211. INCREASED CRIMINAL PENALTIES FOR FRAUDULENT USE OF GOVERNMENT-
                ISSUED DOCUMENTS.

        (a) Fraud and Misuse of Government-Issued Identification
    Documents.--(1) Section 1028(b) of title 18, United States Code, is
    amended--
                (A) in paragraph (1), by inserting ``except as provided in
            paragraphs (3) and (4),'' after ``(1)'' and by striking ``five
            years'' and inserting ``15 years'';
                (B) in paragraph (2), by inserting ``except as provided in
            paragraphs (3) and (4),'' after ``(2)'' and by striking ``and''
            at the end;
                (C) by redesignating paragraph (3) as paragraph (5); and
                (D) by inserting after paragraph (2) the following new
            paragraphs:
                ``(3) a fine under this title or imprisonment for not more
            than 20 years, or both, if the offense is committed to
            facilitate a drug trafficking crime (as defined in section
            929(a)(2) of this title);
                ``(4) a fine under this title or imprisonment for not more
            than 25 years, or both, if the offense is committed to
            facilitate an act of international terrorism (as defined in
            section 2331(1) of this title); and''.

        (2) Sections 1425 through 1427, sections 1541 through 1544, and
    section 1546(a) of title 18, United States Code, are each amended by
    striking ``imprisoned not more'' and all that follows through ``years''
    each place it appears and inserting the following: ``imprisoned not more
    than 25 years (if the offense was committed to facilitate an act of
    international terrorism (as defined in section 2331 of this title)), 20
    years (if the offense was committed to facilitate a drug trafficking
    crime (as defined in section 929(a) of this title)), 10 years (in the
    case of the first or second such offense, if the offense was not
    committed to facility such an act of international terrorism or a drug
    trafficking crime), or 15 years (in the case of any other offense)''.
        (b) Changes <<NOTE: 28 USC 994 note.>> to the Sentencing Levels.--
                (1) In general.--Pursuant to the Commission's authority
            under section 994(p) of title 28, United States Code, the United
            States Sentencing Commission shall promulgate sentencing
            guidelines or amend existing sentencing guidelines for offenders

    [[Page 110 STAT. 3009-570]]

            convicted of violating, or conspiring to violate, sections
            1028(b)(1), 1425 through 1427, 1541 through 1544, and 1546(a) of
            title 18, United States Code, in accordance with this
            subsection.
                (2) Requirements.--In carrying out this subsection, the
            Commission shall, with respect to the offenses referred to in
            paragraph (1)--
                        (A) increase the base offense level for such
                    offenses at least 2 offense levels above the level in
                    effect on the date of the enactment of this Act;
                        (B) review the sentencing enhancement for number of
                    documents or passports involved (U.S.S.G. 2L2.1(b)(2)),
                    and increase the upward adjustment by at least 50
                    percent above the applicable enhancement in effect on
                    the date of the enactment of this Act;
                        (C) impose an appropriate sentencing enhancement
                    upon an offender with 1 prior felony conviction arising
                    out of a separate and prior prosecution for an offense
                    that involved the same or similar underlying conduct as
                    the current offense, to be applied in addition to any
                    sentencing enhancement that would otherwise apply
                    pursuant to the calculation of the defendant's criminal
                    history category;
                        (D) impose an additional appropriate sentencing
                    enhancement upon an offender with 2 or more prior felony
                    convictions arising out of separate and prior
                    prosecutions for offenses that involved the same or
                    similar underlying conduct as the current offense, to be
                    applied in addition to any sentencing enhancement that
                    would otherwise apply pursuant to the calculation of the
                    defendant's criminal history category; and
                        (E) consider whether any other aggravating or
                    mitigating circumstances warrant upward or downward
                    sentencing adjustments.
                (3) Emergency authority to sentencing commission.--The
            Commission shall promulgate the guidelines or amendments
            provided for under this subsection as soon as practicable in
            accordance with the procedure set forth in section 21(a) of the
            Sentencing Act of 1987, as though the authority under that Act
            had not expired.

        (c) Effective <<NOTE: 18 USC 1028 note.>> Date.--This section and
    the amendments made by this section shall apply with respect to offenses
    occurring on or after the date of the enactment of this Act.

    SEC. 212. NEW DOCUMENT FRAUD OFFENSES; NEW CIVIL PENALTIES FOR DOCUMENT
                FRAUD.

        (a) Activities Prohibited.--Section 274C(a) (8 U.S.C. 1324c(a)) is
    amended--
                (1) in paragraph (1), by inserting before the comma at the
            end the following: ``or to obtain a benefit under this Act'';
                (2) in paragraph (2), by inserting before the comma at the
            end the following: ``or to obtain a benefit under this Act'';
                (3) in paragraph (3)--
                        (A) by inserting ``or with respect to'' after
                    ``issued to'';
                        (B) by adding before the comma at the end the
                    following: ``or obtaining a benefit under this Act'';
                    and
                        (C) by striking ``or'' at the end;
                (4) in paragraph (4)--

    [[Page 110 STAT. 3009-571]]

                        (A) by inserting ``or with respect to'' after
                    ``issued to'';
                        (B) by adding before the period at the end the
                    following: ``or obtaining a benefit under this Act'';
                    and
                        (C) by striking the period at the end and inserting
                    ``, or''; and
                (5) by adding at the end the following new paragraphs:
                ``(5) to prepare, file, or assist another in preparing or
            filing, any application for benefits under this Act, or any
            document required under this Act, or any document submitted in
            connection with such application or document, with knowledge or
            in reckless disregard of the fact that such application or
            document was falsely made or, in whole or in part, does not
            relate to the person on whose behalf it was or is being
            submitted, or
                ``(6)(A) to present before boarding a common carrier for the
            purpose of coming to the United States a document which relates
            to the alien's eligibility to enter the United States, and (B)
            to fail to present such document to an immigration officer upon
            arrival at a United States port of entry.''.

        (b) Definition of Falsely Make.--Section 274C (8 U.S.C. 1324c), as
    amended by section 213 of this division, is further amended by adding at
    the end the following new subsection:
        ``(f) Falsely Make.--For purposes of this section, the term `falsely
    make' means to prepare or provide an application or document, with
    knowledge or in reckless disregard of the fact that the application or
    document contains a false, fictitious, or fraudulent statement or
    material representation, or has no basis in law or fact, or otherwise
    fails to state a fact which is material to the purpose for which it was
    submitted.''.
        (c) Conforming Amendment.--Section 274C(d)(3) (8 U.S.C. 1324c(d)(3))
    is amended by striking ``each document used, accepted, or created and
    each instance of use, acceptance, or creation'' each place it appears
    and inserting ``each document that is the subject of a violation under
    subsection (a)''.
        (d) Waiver by Attorney General.--Section 274C(d) (8 U.S.C. 1324c(d))
    is amended by adding at the end the following new paragraph:
                ``(7) Waiver by attorney general.--The Attorney General may
            waive the penalties imposed by this section with respect to an
            alien who knowingly violates subsection (a)(6) if the alien is
            granted asylum under section 208 or withholding of deportation
            under section 243(h).''.

        (e) Effective <<NOTE: 8 USC 1324c note.>> Date.--Section 274C(f) of
    the Immigration and Nationality Act, as added by subsection (b), applies
    to the preparation of applications before, on, or after the date of the
    enactment of this Act.

    SEC. 213. NEW CRIMINAL PENALTIES FOR FAILURE TO DISCLOSE ROLE AS
                PREPARER OF FALSE APPLICATION FOR IMMIGRATION BENEFITS.

        Section 274C (8 U.S.C. 1324c) is amended by adding at the end the
    following new subsection:
        ``(e) Criminal Penalties for Failure To Disclose Role as Document
    Preparer.--(1) Whoever, in any matter within the jurisdiction of the
    Service, knowingly and willfully fails to disclose, conceals, or covers
    up the fact that they have, on behalf of any person and for a fee or
    other remuneration, prepared or assisted

    [[Page 110 STAT. 3009-572]]

    in preparing an application which was falsely made (as defined in
    subsection (f)) for immigration benefits, shall be fined in accordance
    with title 18, United States Code, imprisoned for not more than 5 years,
    or both, and prohibited from preparing or assisting in preparing,
    whether or not for a fee or other remuneration, any other such
    application.
        ``(2) Whoever, having been convicted of a violation of paragraph
    (1), knowingly and willfully prepares or assists in preparing an
    application for immigration benefits pursuant to this Act, or the
    regulations promulgated thereunder, whether or not for a fee or other
    remuneration and regardless of whether in any matter within the
    jurisdiction of the Service, shall be fined in accordance with title 18,
    United States Code, imprisoned for not more than 15 years, or both, and
    prohibited from preparing or assisting in preparing any other such
    application.''.

    SEC. 214. CRIMINAL PENALTY FOR KNOWINGLY PRESENTING DOCUMENT WHICH FAILS
                TO CONTAIN REASONABLE BASIS IN LAW OR FACT.

        The fourth paragraph of section 1546(a) of title 18, United States
    Code, is amended by striking ``containing any such false statement'' and
    inserting ``which contains any such false statement or which fails to
    contain any reasonable basis in law or fact''.

    SEC. 215. CRIMINAL PENALTY FOR FALSE CLAIM TO CITIZENSHIP.

        Section 1015 of title 18, United States Code, is amended--
                (1) by striking the dash at the end of paragraph (d) and
            inserting ``; or'', and
                (2) by inserting after paragraph (d) the following:

        ``(e) Whoever knowingly makes any false statement or claim that he
    is, or at any time has been, a citizen or national of the United States,
    with the intent to obtain on behalf of himself, or any other person, any
    Federal or State benefit or service, or to engage unlawfully in
    employment in the United States; or
        ``(f) Whoever knowingly makes any false statement or claim that he
    is a citizen of the United States in order to register to vote or to
    vote in any Federal, State, or local election (including an initiative,
    recall, or referendum)--''.

    SEC. 216. CRIMINAL PENALTY FOR VOTING BY ALIENS IN FEDERAL ELECTION.

        (a) In General.--Title 18, United States Code, is amended by
    inserting after section 610 the following:

    ``Sec. 611. Voting by aliens

        ``(a) It shall be unlawful for any alien to vote in any election
    held solely or in part for the purpose of electing a candidate for the
    office of President, Vice President, Presidential elector, Member of the
    Senate, Member of the House of Representatives, Delegate from the
    District of Columbia, or Resident Commissioner, unless--
                ``(1) the election is held partly for some other purpose;
                ``(2) aliens are authorized to vote for such other purpose
            under a State constitution or statute or a local ordinance; and
                ``(3) voting for such other purpose is conducted
            independently of voting for a candidate for such Federal
            offices, in such a manner that an alien has the opportunity to
            vote for

    [[Page 110 STAT. 3009-573]]

            such other purpose, but not an opportunity to vote for a
            candidate for any one or more of such Federal offices.

        ``(b) Any person who violates this section shall be fined under this
    title, imprisoned not more than one year, or both.''.
        (b) Clerical Amendment.--The table of sections at the beginning of
    chapter 29 of title 18, United States Code, is amended by inserting
    after the item relating to section 610 the following new item:

    ``611. Voting by aliens.''.

    SEC. 217. CRIMINAL FORFEITURE FOR PASSPORT AND VISA RELATED OFFENSES.

        Section 982(a) of title 18, United States Code, is amended by
    inserting after paragraph (5) the following new paragraph:
        ``(6)(A) The court, in imposing sentence on a person convicted of a
    violation of, or conspiracy to violate, section 1425, 1426, 1427, 1541,
    1542, 1543, 1544, or 1546 of this title, or a violation of, or
    conspiracy to violate, section 1028 of this title if committed in
    connection with passport or visa issuance or use, shall order that the
    person forfeit to the United States, regardless of any provision of
    State law--
                ``(i) any conveyance, including any vessel, vehicle, or
            aircraft used in the commission of a violation of, or a
            conspiracy to violate, subsection (a); and
                ``(ii) any property real or personal--
                        ``(I) that constitutes, or is derived from or is
                    traceable to the proceeds obtained directly or
                    indirectly from the commission of a violation of, or a
                    conspiracy to violate, subsection (a), section
                    274A(a)(1) or 274A(a)(2) of the Immigration and
                    Nationality Act, or section 1028, 1425, 1426, 1427,
                    1541, 1542, 1543, 1544, or 1546 of this title; or
                        ``(II) that is used to facilitate, or is intended to
                    be used to facilitate, the commission of a violation of,
                    or a conspiracy to violate, subsection (a), section
                    274A(a)(1) or 274A(a)(2) of the Immigration and
                    Nationality Act, or section 1028, 1425, 1426, 1427,
                    1541, 1542, 1543, 1544, or 1546 of this title.

    The court, in imposing sentence on such person, shall order that the
    person forfeit to the United States all property described in this
    subparagraph.
        ``(B) The criminal forfeiture of property under subparagraph (A),
    including any seizure and disposition of the property and any related
    administrative or judicial proceeding, shall be governed by the
    provisions of section 413 of the Comprehensive Drug Abuse Prevention and
    Control Act of 1970 (21 U.S.C. 853), other than subsections (a) and (d)
    of such section 413.''.

    SEC. 218. CRIMINAL PENALTIES FOR INVOLUNTARY SERVITUDE.

        (a) Amendments to Title 18.--Sections 1581, 1583, 1584, and 1588 of
    title 18, United States Code, are amended by striking ``five'' each
    place it appears and inserting ``10''.
        (b) Review <<NOTE: 28 USC 994 note.>> of Sentencing Guidelines.--The
    United States Sentencing Commission shall ascertain whether there exists
    an unwarranted disparity--

    [[Page 110 STAT. 3009-574]]

                (1) between the sentences for peonage, involuntary
            servitude, and slave trade offenses, and the sentences for
            kidnapping offenses in effect on the date of the enactment of
            this Act; and
                (2) between the sentences for peonage, involuntary
            servitude, and slave trade offenses, and the sentences for alien
            smuggling offenses in effect on the date of the enactment of
            this Act and after the amendment made by subsection (a).

        (c) Amendment of Sentencing Guidelines.--
                (1) In general.--Pursuant to its authority under section
            994(p) of title 28, United States Code, the United States
            Sentencing Commission shall review its guidelines on sentencing
            for peonage, involuntary servitude, and slave trade offenses
            under sections 1581 through 1588 of title 18, United States
            Code, and shall amend such guidelines as necessary to--
                        (A) reduce or eliminate any unwarranted disparity
                    found under subsection (b) that exists between the
                    sentences for peonage, involuntary servitude, and slave
                    trade offenses, and the sentences for kidnapping
                    offenses and alien smuggling offenses;
                        (B) ensure that the applicable guidelines for
                    defendants convicted of peonage, involuntary servitude,
                    and slave trade offenses are sufficiently stringent to
                    deter such offenses and adequately reflect the heinous
                    nature of such offenses; and
                        (C) ensure that the guidelines reflect the general
                    appropriateness of enhanced sentences for defendants
                    whose peonage, involuntary servitude, or slave trade
                    offenses involve--
                              (i) a large number of victims;
                              (ii) the use or threatened use of a dangerous
                          weapon; or
                              (iii) a prolonged period of peonage or
                          involuntary servitude.
                (2) Emergency authority to sentencing commission.--The
            Commission shall promulgate the guidelines or amendments
            provided for under this subsection as soon as practicable in
            accordance with the procedure set forth in section 21(a) of the
            Sentencing Act of 1987, as though the authority under that Act
            had not expired.

        (d) Effective <<NOTE: 18 USC 1581 note.>> Date.--This section and
    the amendments made by this section shall apply with respect to offenses
    occurring on or after the date of the enactment of this Act.

    SEC. 219. ADMISSIBILITY OF VIDEOTAPED WITNESS TESTIMONY.

        Section 274 (8 U.S.C. 1324) is amended by adding at the end thereof
    the following new subsection:
        ``(d) Notwithstanding any provision of the Federal Rules of
    Evidence, the videotaped (or otherwise audiovisually preserved)
    deposition of a witness to a violation of subsection (a) who has been
    deported or otherwise expelled from the United States, or is otherwise
    unable to testify, may be admitted into evidence in an action brought
    for that violation if the witness was available for cross examination
    and the deposition otherwise complies with the Federal Rules of
    Evidence.''.

    [[Page 110 STAT. 3009-575]]

    SEC. 220. SUBPOENA AUTHORITY IN DOCUMENT FRAUD ENFORCEMENT.

        Section 274C(d)(1) (8 U.S.C. 1324c(d)(1)) is amended--
                (1) by striking ``and'' at the end of subparagraph (A);
                (2) by striking the period at the end of subparagraph (B)
            and inserting ``, and''; and
                (3) by inserting after subparagraph (B) the following:
                        ``(C) immigration officers designated by the
                    Commissioner may compel by subpoena the attendance of
                    witnesses and the production of evidence at any
                    designated place prior to the filing of a complaint in a
                    case under paragraph (2).''.

       TITLE III--INSPECTION, APPREHENSION, DETENTION, ADJUDICATION, AND
                  REMOVAL OF INADMISSIBLE AND DEPORTABLE ALIENS

            Subtitle A--Revision of Procedures for Removal of Aliens

    SEC. 301. TREATING PERSONS PRESENT IN THE UNITED STATES WITHOUT
                AUTHORIZATION AS NOT ADMITTED.

        (a) ``Admission'' Defined.--Paragraph (13) of section 101(a) (8
    U.S.C. 1101(a)) is amended to read as follows:
        ``(13)(A) The terms `admission' and `admitted' mean, with respect to
    an alien, the lawful entry of the alien into the United States after
    inspection and authorization by an immigration officer.
        ``(B) An alien who is paroled under section 212(d)(5) or permitted
    to land temporarily as an alien crewman shall not be considered to have
    been admitted.
        ``(C) An alien lawfully admitted for permanent residence in the
    United States shall not be regarded as seeking an admission into the
    United States for purposes of the immigration laws unless the alien--
                ``(i) has abandoned or relinquished that status,
                ``(ii) has been absent from the United States for a
            continuous period in excess of 180 days,
                ``(iii) has engaged in illegal activity after having
            departed the United States,
                ``(iv) has departed from the United States while under legal
            process seeking removal of the alien from the United States,
            including removal proceedings under this Act and extradition
            proceedings,
                ``(v) has committed an offense identified in section
            212(a)(2), unless since such offense the alien has been granted
            relief under section 212(h) or 240A(a), or
                ``(vi) is attempting to enter at a time or place other than
            as designated by immigration officers or has not been admitted
            to the United States after inspection and authorization by an
            immigration officer.''.

        (b) Inadmissibility of Aliens Previously Removed and Unlawfully
    Present.--

    [[Page 110 STAT. 3009-576]]

                (1) In general.--Section 212(a) (8 U.S.C. 1182(a)) is
            amended by redesignating paragraph (9) as paragraph (10) and by
            inserting after paragraph (8) the following new paragraph:
                ``(9) Aliens previously removed.--
                        ``(A) Certain aliens previously removed.--
                              ``(i) Arriving aliens.--Any alien who has been
                          ordered removed under section 235(b)(1) or at the
                          end of proceedings under section 240 initiated
                          upon the alien's arrival in the United States and
                          who again seeks admission within 5 years of the
                          date of such removal (or within 20 years in the
                          case of a second or subsequent removal or at any
                          time in the case of an alien convicted of an
                          aggravated felony) is inadmissible.
                              ``(ii) Other aliens.--Any alien not described
                          in clause (i) who--
                                        ``(I) has been ordered removed under
                                    section 240 or any other provision of
                                    law, or
                                        ``(II) departed the United States
                                    while an order of removal was
                                    outstanding,
                          and who seeks admission within 10 years of the
                          date of such alien's departure or removal (or
                          within 20 years of such date in the case of a
                          second or subsequent removal or at any time in the
                          case of an alien convicted of an aggravated
                          felony) is inadmissible.
                              ``(iii) Exception.--Clauses (i) and (ii) shall
                          not apply to an alien seeking admission within a
                          period if, prior to the date of the alien's
                          reembarkation at a place outside the United States
                          or attempt to be admitted from foreign contiguous
                          territory, the Attorney General has consented to
                          the alien's reapplying for admission.
                        ``(B) Aliens unlawfully present.--
                              ``(i) In general.--Any alien (other than an
                          alien lawfully admitted for permanent residence)
                          who--
                                        ``(I) was unlawfully present in the
                                    United States for a period of more than
                                    180 days but less than 1 year,
                                    voluntarily departed the United States
                                    (whether or not pursuant to section
                                    244(e)) prior to the commencement of
                                    proceedings under section 235(b)(1) or
                                    section 240, and again seeks admission
                                    within 3 years of the date of such
                                    alien's departure or removal, or
                                        ``(II) has been unlawfully present
                                    in the United States for one year or
                                    more, and who again seeks admission
                                    within 10 years of the date of such
                                    alien's departure or removal from the
                                    United States,
                          is inadmissible.
                              ``(ii) Construction of unlawful presence.--For
                          purposes of this paragraph, an alien is deemed to
                          be unlawfully present in the United States if the
                          alien is present in the United States after the
                          expiration of the period of stay authorized by the
                          Attorney General or is present in the United
                          States without being admitted or paroled.

    [[Page 110 STAT. 3009-577]]

                              ``(iii) Exceptions.--
                                        ``(I) Minors.--No period of time in
                                    which an alien is under 18 years of age
                                    shall be taken into account in
                                    determining the period of unlawful
                                    presence in the United States under
                                    clause (i).
                                        ``(II) Asylees.--No period of time
                                    in which an alien has a bona fide
                                    application for asylum pending under
                                    section 208 shall be taken into account
                                    in determining the period of unlawful
                                    presence in the United States under
                                    clause (i) unless the alien during such
                                    period was employed without
                                    authorization in the United States.
                                        ``(III) Family unity.--No period of
                                    time in which the alien is a beneficiary
                                    of family unity protection pursuant to
                                    section 301 of the Immigration Act of
                                    1990 shall be taken into account in
                                    determining the period of unlawful
                                    presence in the United States under
                                    clause (i).
                                        ``(IV) Battered women and
                                    children.--Clause (i) shall not apply to
                                    an alien who would be described in
                                    paragraph (6)(A)(ii) if `violation of
                                    the terms of the alien's nonimmigrant
                                    visa' were substituted for `unlawful
                                    entry into the United States' in
                                    subclause (III) of that paragraph.
                              ``(iv) Tolling for good cause.--In the case of
                          an alien who--
                                        ``(I) has been lawfully admitted or
                                    paroled into the United States,
                                        ``(II) has filed a nonfrivolous
                                    application for a change or extension of
                                    status before the date of expiration of
                                    the period of stay authorized by the
                                    Attorney General, and
                                        ``(III) has not been employed
                                    without authorization in the United
                                    States before or during the pendency of
                                    such application,
                          the calculation of the period of time specified in
                          clause (i)(I) shall be tolled during the pendency
                          of such application, but not to exceed 120 days.
                              ``(v) Waiver.--The Attorney General has sole
                          discretion to waive clause (i) in the case of an
                          immigrant who is the spouse or son or daughter of
                          a United States citizen or of an alien lawfully
                          admitted for permanent residence, if it is
                          established to the satisfaction of the Attorney
                          General that the refusal of admission to such
                          immigrant alien would result in extreme hardship
                          to the citizen or lawfully resident spouse or
                          parent of such alien. No court shall have
                          jurisdiction to review a decision or action by the
                          Attorney General regarding a waiver under this
                          clause.
                        ``(C) Aliens unlawfully present after previous
                    immigration violations.--
                              ``(i) In general.--Any alien who--
                                        ``(I) has been unlawfully present in
                                    the United States for an aggregate
                                    period of more than 1 year, or

    [[Page 110 STAT. 3009-578]]

                                        ``(II) has been ordered removed
                                    under section 235(b)(1), section 240, or
                                    any other provision of law,
                          and who enters or attempts to reenter the United
                          States without being admitted is inadmissible.
                              ``(ii) Exception.--Clause (i) shall not apply
                          to an alien seeking admission more than 10 years
                          after the date of the alien's last departure from
                          the United States if, prior to the alien's
                          reembarkation at a place outside the United States
                          or attempt to be readmitted from a foreign
                          contiguous territory, the Attorney General has
                          consented to the alien's reapplying for
                          admission.''.
                (2) Limitation on change of status.--Section 248 (8 U.S.C.
            1258) is amended by inserting ``and who is not inadmissible
            under section 212(a)(9)(B)(i) (or whose inadmissibility under
            such section is waived under section 212(a)(9)(B)(v))'' after
            ``maintain that status''.
                (3) Treatment <<NOTE: 8 USC 1182 note.>> of unlawful
            presence before effective date.--In applying section
            212(a)(9)(B) of the Immigration and Nationality Act, as inserted
            by paragraph (1), no period before the title III-A effective
            date shall be included in a period of unlawful presence in the
            United States.

        (c) Revision to Ground of Inadmissibility for Illegal Entrants and
    Immigration Violators.--
                (1) In general.--Subparagraphs (A) and (B) of section
            212(a)(6) (8 U.S.C. 1182(a)(6)) are amended to read as follows:
                        ``(A) Aliens present without admission or parole.--
                              ``(i) In general.--An alien present in the
                          United States without being admitted or paroled,
                          or who arrives in the United States at any time or
                          place other than as designated by the Attorney
                          General, is inadmissible.
                              ``(ii) Exception for certain battered women
                          and children.--Clause (i) shall not apply to an
                          alien who demonstrates that--
                                        ``(I) the alien qualifies for
                                    immigrant status under subparagraph
                                    (A)(iii), (A)(iv), (B)(ii), or (B)(iii)
                                    of section 204(a)(1),
                                        ``(II)(a) the alien has been
                                    battered or subjected to extreme cruelty
                                    by a spouse or parent, or by a member of
                                    the spouse's or parent's family residing
                                    in the same household as the alien and
                                    the spouse or parent consented or
                                    acquiesced to such battery or cruelty,
                                    or (b) the alien's child has been
                                    battered or subjected to extreme cruelty
                                    by a spouse or parent of the alien
                                    (without the active participation of the
                                    alien in the battery or cruelty) or by a
                                    member of the spouse's or parent's
                                    family residing in the same household as
                                    the alien when the spouse or parent
                                    consented to or acquiesced in such
                                    battery or cruelty and the alien did not
                                    actively participate in such battery or
                                    cruelty, and

    [[Page 110 STAT. 3009-579]]

                                        ``(III) there was a substantial
                                    connection between the battery or
                                    cruelty described in subclause (I) or
                                    (II) and the alien's unlawful entry into
                                    the United States.
                        ``(B) Failure to attend removal proceeding.--Any
                    alien who without reasonable cause fails or refuses to
                    attend or remain in attendance at a proceeding to
                    determine the alien's inadmissibility or deportability
                    and who seeks admission to the United States within 5
                    years of such alien's subsequent departure or removal is
                    inadmissible. ''.
                (2) Transition <<NOTE: 8 USC 1182 note.>> for battered
            spouse or child provision.--The requirements of subclauses (II)
            and (III) of section 212(a)(6)(A)(ii) of the Immigration and
            Nationality Act, as inserted by paragraph (1), shall not apply
            to an alien who demonstrates that the alien first arrived in the
            United States before the title III-A effective date (described
            in section 309(a) of this division).

        (d) Adjustment in Grounds for Deportation.--Section 241 (8 U.S.C.
    1251), before redesignation as section 237 by section 305(a)(2) of this
    division, is amended--
                (1) in the matter before paragraph (1) of subsection (a), by
            striking ``in the United States'' and inserting ``in and
            admitted to the United States'';
                (2) in subsection (a)(1), by striking ``Excludable'' each
            place it appears and inserting ``Inadmissible'';
                (3) in subsection (a)(1)(A), by striking ``excludable'' and
            inserting ``inadmissible''; and
                (4) by amending subparagraph (B) of subsection (a)(1) to
            read as follows:
                        ``(B) Present in violation of law.--Any alien who is
                    present in the United States in violation of this Act or
                    any other law of the United States is deportable.

    SEC. 302. INSPECTION OF ALIENS; EXPEDITED REMOVAL OF INADMISSIBLE
                ARRIVING ALIENS; REFERRAL FOR HEARING (REVISED SECTION 235).

        (a) In General.--Section 235 (8 U.S.C. 1225) is amended to read as
    follows:

    ``inspection by immigration officers; expedited removal of inadmissible
                      arriving aliens; referral for hearing

        ``Sec. 235. (a) Inspection.--
                ``(1) Aliens treated as applicants for admission.--An alien
            present in the United States who has not been admitted or who
            arrives in the United States (whether or not at a designated
            port of arrival and including an alien who is brought to the
            United States after having been interdicted in international or
            United States waters) shall be deemed for purposes of this Act
            an applicant for admission.
                ``(2) Stowaways.--An arriving alien who is a stowaway is not
            eligible to apply for admission or to be admitted and shall be
            ordered removed upon inspection by an immigration officer. Upon
            such inspection if the alien indicates an intention to apply for
            asylum under section 208 or a fear of persecution, the officer
            shall refer the alien for an interview under subsection
            (b)(1)(B). A stowaway may apply for asylum only if

    [[Page 110 STAT. 3009-580]]

            the stowaway is found to have a credible fear of persecution
            under subsection (b)(1)(B). In no case may a stowaway be
            considered an applicant for admission or eligible for a hearing
            under section 240.
                ``(3) Inspection.--All aliens (including alien crewmen) who
            are applicants for admission or otherwise seeking admission or
            readmission to or transit through the United States shall be
            inspected by immigration officers.
                ``(4) Withdrawal of application for admission.--An alien
            applying for admission may, in the discretion of the Attorney
            General and at any time, be permitted to withdraw the
            application for admission and depart immediately from the United
            States.
                ``(5) Statements.--An applicant for admission may be
            required to state under oath any information sought by an
            immigration officer regarding the purposes and intentions of the
            applicant in seeking admission to the United States, including
            the applicant's intended length of stay and whether the
            applicant intends to remain permanently or become a United
            States citizen, and whether the applicant is inadmissible.

        ``(b) Inspection of Applicants for Admission.--
                ``(1) Inspection of aliens arriving in the united states and
            certain other aliens who have not been admitted or paroled.--
                        ``(A) Screening.--
                              ``(i) In general.--If an immigration officer
                          determines that an alien (other than an alien
                          described in subparagraph (F)) who is arriving in
                          the United States or is described in clause (iii)
                          is inadmissible under section 212(a)(6)(C) or
                          212(a)(7), the officer shall order the alien
                          removed from the United States without further
                          hearing or review unless the alien indicates
                          either an intention to apply for asylum under
                          section 208 or a fear of persecution.
                              ``(ii) Claims for asylum.--If an immigration
                          officer determines that an alien (other than an
                          alien described in subparagraph (F)) who is
                          arriving in the United States or is described in
                          clause (iii) is inadmissible under section
                          212(a)(6)(C) or 212(a)(7) and the alien indicates
                          either an intention to apply for asylum under
                          section 208 or a fear of persecution, the officer
                          shall refer the alien for an interview by an
                          asylum officer under subparagraph (B).
                              ``(iii) Application to certain other aliens.--
                                        ``(I) In general.--The Attorney
                                    General may apply clauses (i) and (ii)
                                    of this subparagraph to any or all
                                    aliens described in subclause (II) as
                                    designated by the Attorney General. Such
                                    designation shall be in the sole and
                                    unreviewable discretion of the Attorney
                                    General and may be modified at any time.
                                        ``(II) Aliens described.--An alien
                                    described in this clause is an alien who
                                    is not described in subparagraph (F),
                                    who has not been admitted or paroled
                                    into the United States, and who has not
                                    affirmatively shown, to the satisfaction
                                    of an

    [[Page 110 STAT. 3009-581]]

                                    immigration officer, that the alien has
                                    been physically present in the United
                                    States continuously for the 2-year
                                    period immediately prior to the date of
                                    the determination of inadmissibility
                                    under this subparagraph.
                        ``(B) Asylum interviews.--
                              ``(i) Conduct by asylum officers.--An asylum
                          officer shall conduct interviews of aliens
                          referred under subparagraph (A)(ii), either at a
                          port of entry or at such other place designated by
                          the Attorney General.
                              ``(ii) Referral of certain aliens.--If the
                          officer determines at the time of the interview
                          that an alien has a credible fear of persecution
                          (within the meaning of clause (v)), the alien
                          shall be detained for further consideration of the
                          application for asylum.
                              ``(iii) Removal without further review if no
                          credible fear of persecution.--
                                        ``(I) In general.--Subject to
                                    subclause (III), if the officer
                                    determines that an alien does not have a
                                    credible fear of persecution, the
                                    officer shall order the alien removed
                                    from the United States without further
                                    hearing or review.
                                        ``(II) Record of determination.--The
                                    officer shall prepare a written record
                                    of a determination under subclause (I).
                                    Such record shall include a summary of
                                    the material facts as stated by the
                                    applicant, such additional facts (if
                                    any) relied upon by the officer, and the
                                    officer's analysis of why, in the light
                                    of such facts, the alien has not
                                    established a credible fear of
                                    persecution. A copy of the officer's
                                    interview notes shall be attached to the
                                    written summary.
                                        ``(III) Review of determination.--
                                    The Attorney General shall provide by
                                    regulation and upon the alien's request
                                    for prompt review by an immigration
                                    judge of a determination under subclause
                                    (I) that the alien does not have a
                                    credible fear of persecution. Such
                                    review shall include an opportunity for
                                    the alien to be heard and questioned by
                                    the immigration judge, either in person
                                    or by telephonic or video connection.
                                    Review shall be concluded as
                                    expeditiously as possible, to the
                                    maximum extent practicable within 24
                                    hours, but in no case later than 7 days
                                    after the date of the determination
                                    under subclause (I).
                                        ``(IV) Mandatory detention.--Any
                                    alien subject to the procedures under
                                    this clause shall be detained pending a
                                    final determination of credible fear of
                                    persecution and, if found not to have
                                    such a fear, until removed.
                              ``(iv) Information about interviews.--The
                          Attorney General shall provide information
                          concerning the asylum interview described in this
                          subparagraph to aliens who may be eligible. An
                          alien who is eligible for such interview may
                          consult with a person or persons of the alien's
                          choosing prior to the interview or any review
                          thereof, according to regulations prescribed

    [[Page 110 STAT. 3009-582]]

                          by the Attorney General. Such consultation shall
                          be at no expense to the Government and shall not
                          unreasonably delay the process.
                              ``(v) Credible fear of persecution defined.--
                          For purposes of this subparagraph, the term
                          `credible fear of persecution' means that there is
                          a significant possibility, taking into account the
                          credibility of the statements made by the alien in
                          support of the alien's claim and such other facts
                          as are known to the officer, that the alien could
                          establish eligibility for asylum under section
                          208.
                        ``(C) Limitation on administrative review.--Except
                    as provided in subparagraph (B)(iii)(III), a removal
                    order entered in accordance with subparagraph (A)(i) or
                    (B)(iii)(I) is not subject to administrative appeal,
                    except that the Attorney General shall provide by
                    regulation for prompt review of such an order under
                    subparagraph (A)(i) against an alien who claims under
                    oath, or as permitted under penalty of perjury under
                    section 1746 of title 28, United States Code, after
                    having been warned of the penalties for falsely making
                    such claim under such conditions, to have been lawfully
                    admitted for permanent residence, to have been admitted
                    as a refugee under section 207, or to have been granted
                    asylum under section 208.
                        ``(D) Limit on collateral attacks.--In any action
                    brought against an alien under section 275(a) or section
                    276, the court shall not have jurisdiction to hear any
                    claim attacking the validity of an order of removal
                    entered under subparagraph (A)(i) or (B)(iii).
                        ``(E) Asylum officer defined.--As used in this
                    paragraph, the term `asylum officer' means an
                    immigration officer who--
                              ``(i) has had professional training in country
                          conditions, asylum law, and interview techniques
                          comparable to that provided to full-time
                          adjudicators of applications under section 208,
                          and
                              ``(ii) is supervised by an officer who meets
                          the condition described in clause (i) and has had
                          substantial experience adjudicating asylum
                          applications.
                        ``(F) Exception.--Subparagraph (A) shall not apply
                    to an alien who is a native or citizen of a country in
                    the Western Hemisphere with whose government the United
                    States does not have full diplomatic relations and who
                    arrives by aircraft at a port of entry.
                ``(2) Inspection of other aliens.--
                        ``(A) In general.--Subject to subparagraphs (B) and
                    (C), in the case of an alien who is an applicant for
                    admission, if the examining immigration officer
                    determines that an alien seeking admission is not
                    clearly and beyond a doubt entitled to be admitted, the
                    alien shall be detained for a proceeding under section
                    240.
                        ``(B) Exception.--Subparagraph (A) shall not apply
                    to an alien--
                              ``(i) who is a crewman,
                              ``(ii) to whom paragraph (1) applies, or
                              ``(iii) who is a stowaway.

    [[Page 110 STAT. 3009-583]]

                        ``(C) Treatment of aliens arriving from contiguous
                    territory.--In the case of an alien described in
                    subparagraph (A) who is arriving on land (whether or not
                    at a designated port of arrival) from a foreign
                    territory contiguous to the United States, the Attorney
                    General may return the alien to that territory pending a
                    proceeding under section 240.
                ``(3) Challenge of decision.--The decision of the examining
            immigration officer, if favorable to the admission of any alien,
            shall be subject to challenge by any other immigration officer
            and such challenge shall operate to take the alien whose
            privilege to be admitted is so challenged, before an immigration
            judge for a proceeding under section 240.

        ``(c) Removal of Aliens Inadmissible on Security and Related
    Grounds.--
                ``(1) Removal without further hearing.--If an immigration
            officer or an immigration judge suspects that an arriving alien
            may be inadmissible under subparagraph (A) (other than clause
            (ii)), (B), or (C) of section 212(a)(3), the officer or judge
            shall--
                        ``(A) order the alien removed, subject to review
                    under paragraph (2);
                        ``(B) report the order of removal to the Attorney
                    General; and
                        ``(C) not conduct any further inquiry or hearing
                    until ordered by the Attorney General.
                ``(2) Review of order.--(A) The Attorney General shall
            review orders issued under paragraph (1).
                ``(B) If the Attorney General--
                        ``(i) is satisfied on the basis of confidential
                    information that the alien is inadmissible under
                    subparagraph (A) (other than clause (ii)), (B), or (C)
                    of section 212(a)(3), and
                        ``(ii) after consulting with appropriate security
                    agencies of the United States Government, concludes that
                    disclosure of the information would be prejudicial to
                    the public interest, safety, or security,
            the Attorney General may order the alien removed without further
            inquiry or hearing by an immigration judge.
                ``(C) If the Attorney General does not order the removal of
            the alien under subparagraph (B), the Attorney General shall
            specify the further inquiry or hearing that shall be conducted
            in the case.
                ``(3) Submission of statement and information.--The alien or
            the alien's representative may submit a written statement and
            additional information for consideration by the Attorney
            General.

        ``(d) Authority Relating to Inspections.--
                ``(1) Authority to search conveyances.--Immigration officers
            are authorized to board and search any vessel, aircraft, railway
            car, or other conveyance or vehicle in which they believe aliens
            are being brought into the United States.
                ``(2) Authority to order detention and delivery of arriving
            aliens.--Immigration officers are authorized to order an owner,
            agent, master, commanding officer, person in charge, purser, or
            consignee of a vessel or aircraft bringing an alien (except an
            alien crewmember) to the United States--

    [[Page 110 STAT. 3009-584]]

                        ``(A) to detain the alien on the vessel or at the
                    airport of arrival, and
                        ``(B) to deliver the alien to an immigration officer
                    for inspection or to a medical officer for examination.
                ``(3) Administration of oath and consideration of
            evidence.--The Attorney General and any immigration officer
            shall have power to administer oaths and to take and consider
            evidence of or from any person touching the privilege of any
            alien or person he believes or suspects to be an alien to enter,
            reenter, transit through, or reside in the United States or
            concerning any matter which is material and relevant to the
            enforcement of this Act and the administration of the Service.
                ``(4) Subpoena authority.--(A) The Attorney General and any
            immigration officer shall have power to require by subpoena the
            attendance and testimony of witnesses before immigration
            officers and the production of books, papers, and documents
            relating to the privilege of any person to enter, reenter,
            reside in, or pass through the United States or concerning any
            matter which is material and relevant to the enforcement of this
            Act and the administration of the Service, and to that end may
            invoke the aid of any court of the United States.
                ``(B) Any United States district court within the
            jurisdiction of which investigations or inquiries are being
            conducted by an immigration officer may, in the event of neglect
            or refusal to respond to a subpoena issued under this paragraph
            or refusal to testify before an immigration officer, issue an
            order requiring such persons to appear before an immigration
            officer, produce books, papers, and documents if demanded, and
            testify, and any failure to obey such order of the court may be
            punished by the court as a contempt thereof.''.

        (b) GAO <<NOTE: 8 USC 1225 note.>> Study on Operation of Expedited
    Removal Procedures.--
                (1) Study.--The Comptroller General shall conduct a study on
            the implementation of the expedited removal procedures under
            section 235(b)(1) of the Immigration and Nationality Act, as
            amended by subsection (a). The study shall examine--
                        (A) the effectiveness of such procedures in
                    deterring illegal entry,
                        (B) the detention and adjudication resources saved
                    as a result of the procedures,
                        (C) the administrative and other costs expended to
                    comply with the provision,
                        (D) the effectiveness of such procedures in
                    processing asylum claims by undocumented aliens who
                    assert a fear of persecution, including the accuracy of
                    credible fear determinations, and
                        (E) the cooperation of other countries and air
                    carriers in accepting and returning aliens removed under
                    such procedures.
                (2) Report.--By not later than 18 months after the date of
            the enactment of this Act, the Comptroller General shall submit
            to the Committees on the Judiciary of the House of
            Representatives and the Senate a report on the study conducted
            under paragraph (1).

    [[Page 110 STAT. 3009-585]]

    SEC. 303. APPREHENSION AND DETENTION OF ALIENS (REVISED SECTION 236).

        (a) In General.--Section 236 (8 U.S.C. 1226) is amended to read as
    follows:

                     ``apprehension and detention of aliens

        ``Sec. 236. (a) Arrest, Detention, and Release.--On a warrant issued
    by the Attorney General, an alien may be arrested and detained pending a
    decision on whether the alien is to be removed from the United States.
    Except as provided in subsection (c) and pending such decision, the
    Attorney General--
                ``(1) may continue to detain the arrested alien; and
                ``(2) may release the alien on--
                        ``(A) bond of at least $1,500 with security approved
                    by, and containing conditions prescribed by, the
                    Attorney General; or
                        ``(B) conditional parole; but
                ``(3) may not provide the alien with work authorization
            (including an `employment authorized' endorsement or other
            appropriate work permit), unless the alien is lawfully admitted
            for permanent residence or otherwise would (without regard to
            removal proceedings) be provided such authorization.

        ``(b) Revocation of Bond or Parole.--The Attorney General at any
    time may revoke a bond or parole authorized under subsection (a),
    rearrest the alien under the original warrant, and detain the alien.
        ``(c) Detention of Criminal Aliens.--
                ``(1) Custody.--The Attorney General shall take into custody
            any alien who--
                        ``(A) is inadmissible by reason of having committed
                    any offense covered in section 212(a)(2),
                        ``(B) is deportable by reason of having committed
                    any offense covered in section 237(a)(2)(A)(ii),
                    (A)(iii), (B), (C), or (D),
                        ``(C) is deportable under section 237(a)(2)(A)(i) on
                    the basis of an offense for which the alien has been
                    sentence to a term of imprisonment of at least 1 year,
                    or
                        ``(D) is inadmissible under section 212(a)(3)(B) or
                    deportable under section 237(a)(4)(B),
            when the alien is released, without regard to whether the alien
            is released on parole, supervised release, or probation, and
            without regard to whether the alien may be arrested or
            imprisoned again for the same offense.
                ``(2) Release.--The Attorney General may release an alien
            described in paragraph (1) only if the Attorney General decides
            pursuant to section 3521 of title 18, United States Code, that
            release of the alien from custody is necessary to provide
            protection to a witness, a potential witness, a person
            cooperating with an investigation into major criminal activity,
            or an immediate family member or close associate of a witness,
            potential witness, or person cooperating with such an
            investigation, and the alien satisfies the Attorney General that
            the alien will not pose a danger to the safety of other persons
            or of property and is likely to appear for any scheduled
            proceeding. A decision relating to such release shall take place
            in accordance with

    [[Page 110 STAT. 3009-586]]

            a procedure that considers the severity of the offense committed
            by the alien.

        ``(d) Identification of Criminal Aliens.--(1) The Attorney General
    shall devise and implement a system--
                ``(A) to make available, daily (on a 24-hour basis), to
            Federal, State, and local authorities the investigative
            resources of the Service to determine whether individuals
            arrested by such authorities for aggravated felonies are aliens;
                ``(B) to designate and train officers and employees of the
            Service to serve as a liaison to Federal, State, and local law
            enforcement and correctional agencies and courts with respect to
            the arrest, conviction, and release of any alien charged with an
            aggravated felony; and
                ``(C) which uses computer resources to maintain a current
            record of aliens who have been convicted of an aggravated
            felony, and indicates those who have been removed.

        ``(2) The record under paragraph (1)(C) shall be made available--
                ``(A) to inspectors at ports of entry and to border patrol
            agents at sector headquarters for purposes of immediate
            identification of any alien who was previously ordered removed
            and is seeking to reenter the United States, and
                ``(B) to officials of the Department of State for use in its
            automated visa lookout system.

        ``(3) Upon the request of the governor or chief executive officer of
    any State, the Service shall provide assistance to State courts in the
    identification of aliens unlawfully present in the United States pending
    criminal prosecution.
        ``(e) Judicial Review.--The Attorney General's discretionary
    judgment regarding the application of this section shall not be subject
    to review. No court may set aside any action or decision by the Attorney
    General under this section regarding the detention or release of any
    alien or the grant, revocation, or denial of bond or parole.''.
        (b) Effective <<NOTE: 8 USC 1226 note.>> Date.--
                (1) In general.--The amendment made by subsection (a) shall
            become effective on the title III-A effective date.
                (2) Notification regarding custody.--If the Attorney
            General, not later than 10 days after the date of the enactment
            of this Act, notifies in writing the Committees on the Judiciary
            of the House of Representatives and the Senate that there is
            insufficient detention space and Immigration and Naturalization
            Service personnel available to carry out section 236(c) of the
            Immigration and Nationality Act, as amended by subsection (a),
            or the amendments made by section 440(c) of Public Law 104-132,
            the provisions in paragraph (3) shall be in effect for a 1-year
            period beginning on the date of such notification, instead of
            such section or such amendments. The Attorney General may extend
            such 1-year period for an additional year if the Attorney
            General provides the same notice not later than 10 days before
            the end of the first 1-year period. After the end of such 1-year
            or 2-year periods, the provisions of such section 236(c) shall
            apply to individuals released after such periods.
                (3) Transition period custody rules.--

    [[Page 110 STAT. 3009-587]]

                        (A) In general.--During the period in which this
                    paragraph is in effect pursuant to paragraph (2), the
                    Attorney General shall take into custody any alien who--
                              (i) has been convicted of an aggravated felony
                          (as defined under section 101(a)(43) of the
                          Immigration and Nationality Act, as amended by
                          section 321 of this division),
                              (ii) is inadmissible by reason of having
                          committed any offense covered in section 212(a)(2)
                          of such Act,
                              (iii) is deportable by reason of having
                          committed any offense covered in section
                          241(a)(2)(A)(ii), (A)(iii), (B), (C), or (D) of
                          such Act (before redesignation under this
                          subtitle), or
                              (iv) is inadmissible under section
                          212(a)(3)(B) of such Act or deportable under
                          section 241(a)(4)(B) of such Act (before
                          redesignation under this subtitle),
                    when the alien is released, without regard to whether
                    the alien is released on parole, supervised release, or
                    probation, and without regard to whether the alien may
                    be arrested or imprisoned again for the same offense.
                        (B) Release.--The Attorney General may release the
                    alien only if the alien is an alien described in
                    subparagraph (A)(ii) or (A)(iii) and--
                              (i) the alien was lawfully admitted to the
                          United States and satisfies the Attorney General
                          that the alien will not pose a danger to the
                          safety of other persons or of property and is
                          likely to appear for any scheduled proceeding, or
                              (ii) the alien was not lawfully admitted to
                          the United States, cannot be removed because the
                          designated country of removal will not accept the
                          alien, and satisfies the Attorney General that the
                          alien will not pose a danger to the safety of
                          other persons or of property and is likely to
                          appear for any scheduled proceeding.

    SEC. 304. REMOVAL PROCEEDINGS; CANCELLATION OF REMOVAL AND ADJUSTMENT OF
                STATUS; VOLUNTARY DEPARTURE (REVISED AND NEW SECTIONS 239 TO
                240C).

        (a) In General.--Chapter 4 of title II is amended--
                (1) <<NOTE: 8 USC 1224.>> by redesignating section 239 (8
            U.S.C. 1229) as section 234 and by moving such section to
            immediately follow section 233;
                (2) by redesignating section 240 (8 U.S.C. 1230) as section
            240C; and
                (3) by inserting after section 238 the following new
            sections:

                       ``initiation of removal proceedings

        ``Sec. <<NOTE: 8 USC 1229.>> 239. (a) Notice to Appear.--
                ``(1) In general.--In removal proceedings under section 240,
            written notice (in this section referred to as a `notice to
            appear') shall be given in person to the alien (or, if personal
            service is not practicable, through service by mail to the alien
            or to the alien's counsel of record, if any) specifying the
            following:
                        ``(A) The nature of the proceedings against the
                    alien.

    [[Page 110 STAT. 3009-588]]

                        ``(B) The legal authority under which the
                    proceedings are conducted.
                        ``(C) The acts or conduct alleged to be in violation
                    of law.
                        ``(D) The charges against the alien and the
                    statutory provisions alleged to have been violated.
                        ``(E) The alien may be represented by counsel and
                    the alien will be provided (i) a period of time to
                    secure counsel under subsection (b)(1) and (ii) a
                    current list of counsel prepared under subsection
                    (b)(2).
                        ``(F)(i) The requirement that the alien must
                    immediately provide (or have provided) the Attorney
                    General with a written record of an address and
                    telephone number (if any) at which the alien may be
                    contacted respecting proceedings under section 240.
                        ``(ii) The requirement that the alien must provide
                    the Attorney General immediately with a written record
                    of any change of the alien's address or telephone
                    number.
                        ``(iii) The consequences under section 240(b)(5) of
                    failure to provide address and telephone information
                    pursuant to this subparagraph.
                        ``(G)(i) The time and place at which the proceedings
                    will be held.
                        ``(ii) The consequences under section 240(b)(5) of
                    the failure, except under exceptional circumstances, to
                    appear at such proceedings.
                ``(2) Notice of change in time or place of proceedings.--
                        ``(A) In general.--In removal proceedings under
                    section 240, in the case of any change or postponement
                    in the time and place of such proceedings, subject to
                    subparagraph (B) a written notice shall be given in
                    person to the alien (or, if personal service is not
                    practicable, through service by mail to the alien or to
                    the alien's counsel of record, if any) specifying--
                              ``(i) the new time or place of the
                          proceedings, and
                              ``(ii) the consequences under section
                          240(b)(5) of failing, except under exceptional
                          circumstances, to attend such proceedings.
                        ``(B) Exception.--In the case of an alien not in
                    detention, a written notice shall not be required under
                    this paragraph if the alien has failed to provide the
                    address required under paragraph (1)(F).
                ``(3) Central address files.--The Attorney General shall
            create a system to record and preserve on a timely basis notices
            of addresses and telephone numbers (and changes) provided under
            paragraph (1)(F).

        ``(b) Securing of Counsel.--
                ``(1) In general.--In order that an alien be permitted the
            opportunity to secure counsel before the first hearing date in
            proceedings under section 240, the hearing date shall not be
            scheduled earlier than 10 days after the service of the notice
            to appear, unless the alien requests in writing an earlier
            hearing date.
                ``(2) Current lists of counsel.--The Attorney General shall
            provide for lists (updated not less often than quarterly) of
            persons who have indicated their availability to represent

    [[Page 110 STAT. 3009-589]]

            pro bono aliens in proceedings under section 240. Such lists
            shall be provided under subsection (a)(1)(E) and otherwise made
            generally available.
                ``(3) Rule of construction.--Nothing in this subsection may
            be construed to prevent the Attorney General from proceeding
            against an alien pursuant to section 240 if the time period
            described in paragraph (1) has elapsed and the alien has failed
            to secure counsel.

        ``(c) Service by Mail.--Service by mail under this section shall be
    sufficient if there is proof of attempted delivery to the last address
    provided by the alien in accordance with subsection (a)(1)(F).
        ``(d) Prompt Initiation of Removal.--(1) In the case of an alien who
    is convicted of an offense which makes the alien deportable, the
    Attorney General shall begin any removal proceeding as expeditiously as
    possible after the date of the conviction.
        ``(2) Nothing in this subsection shall be construed to create any
    substantive or procedural right or benefit that is legally enforceable
    by any party against the United States or its agencies or officers or
    any other person.

                              ``removal proceedings

        ``Sec. 240. <<NOTE: 8 USC 1229a.>> (a) Proceeding.--
                ``(1) In general.--An immigration judge shall conduct
            proceedings for deciding the inadmissibility or deportability of
            an alien.
                ``(2) Charges.--An alien placed in proceedings under this
            section may be charged with any applicable ground of
            inadmissibility under section 212(a) or any applicable ground of
            deportability under section 237(a).
                ``(3) Exclusive procedures.--Unless otherwise specified in
            this Act, a proceeding under this section shall be the sole and
            exclusive procedure for determining whether an alien may be
            admitted to the United States or, if the alien has been so
            admitted, removed from the United States. Nothing in this
            section shall affect proceedings conducted pursuant to section
            238.

        ``(b) Conduct of Proceeding.--
                ``(1) Authority of immigration judge.--The immigration judge
            shall administer oaths, receive evidence, and interrogate,
            examine, and cross-examine the alien and any witnesses. The
            immigration judge may issue subpoenas for the attendance of
            witnesses and presentation of evidence. The immigration judge
            shall have authority (under regulations prescribed by the
            Attorney General) to sanction by civil money penalty any action
            (or inaction) in contempt of the judge's proper exercise of
            authority under this Act.
                ``(2) Form of proceeding.--
                        ``(A) In general.--The proceeding may take place--
                              ``(i) in person,
                              ``(ii) where agreed to by the parties, in the
                          absence of the alien,
                              ``(iii) through video conference, or
                              ``(iv) subject to subparagraph (B), through
                          telephone conference.
                        ``(B) Consent required in certain cases.--An
                    evidentiary hearing on the merits may only be conducted

    [[Page 110 STAT. 3009-590]]

                    through a telephone conference with the consent of the
                    alien involved after the alien has been advised of the
                    right to proceed in person or through video conference.
                ``(3) Presence of alien.--If it is impracticable by reason
            of an alien's mental incompetency for the alien to be present at
            the proceeding, the Attorney General shall prescribe safeguards
            to protect the rights and privileges of the alien.
                ``(4) Aliens rights in proceeding.--In proceedings under
            this section, under regulations of the Attorney General--
                        ``(A) the alien shall have the privilege of being
                    represented, at no expense to the Government, by counsel
                    of the alien's choosing who is authorized to practice in
                    such proceedings,
                        ``(B) the alien shall have a reasonable opportunity
                    to examine the evidence against the alien, to present
                    evidence on the alien's own behalf, and to cross-examine
                    witnesses presented by the Government but these rights
                    shall not entitle the alien to examine such national
                    security information as the Government may proffer in
                    opposition to the alien's admission to the United States
                    or to an application by the alien for discretionary
                    relief under this Act, and
                        ``(C) a complete record shall be kept of all
                    testimony and evidence produced at the proceeding.
                ``(5) Consequences of failure to appear.--
                        ``(A) In general.--Any alien who, after written
                    notice required under paragraph (1) or (2) of section
                    239(a) has been provided to the alien or the alien's
                    counsel of record, does not attend a proceeding under
                    this section, shall be ordered removed in absentia if
                    the Service establishes by clear, unequivocal, and
                    convincing evidence that the written notice was so
                    provided and that the alien is removable (as defined in
                    subsection (e)(2)). The written notice by the Attorney
                    General shall be considered sufficient for purposes of
                    this subparagraph if provided at the most recent address
                    provided under section 239(a)(1)(F).
                        ``(B) No notice if failure to provide address
                    information.--No written notice shall be required under
                    subparagraph (A) if the alien has failed to provide the
                    address required under section 239(a)(1)(F).
                        ``(C) Rescission of order.--Such an order may be
                    rescinded only--
                              ``(i) upon a motion to reopen filed within 180
                          days after the date of the order of removal if the
                          alien demonstrates that the failure to appear was
                          because of exceptional circumstances (as defined
                          in subsection (e)(1)), or
                              ``(ii) upon a motion to reopen filed at any
                          time if the alien demonstrates that the alien did
                          not receive notice in accordance with paragraph
                          (1) or (2) of section 239(a) or the alien
                          demonstrates that the alien was in Federal or
                          State custody and the failure to appear was
                          through no fault of the alien.
                    The filing of the motion to reopen described in clause
                    (i) or (ii) shall stay the removal of the alien pending
                    disposition of the motion by the immigration judge.
                        ``(D) Effect on judicial review.--Any petition for
                    review under section 242 of an order entered in absentia

    [[Page 110 STAT. 3009-591]]

                    under this paragraph shall (except in cases described in
                    section 242(b)(5)) be confined to (i) the validity of
                    the notice provided to the alien, (ii) the reasons for
                    the alien's not attending the proceeding, and (iii)
                    whether or not the alien is removable.
                        ``(E) Additional application to certain aliens in
                    contiguous territory.--The preceding provisions of this
                    paragraph shall apply to all aliens placed in
                    proceedings under this section, including any alien who
                    remains in a contiguous foreign territory pursuant to
                    section 235(b)(2)(C).
                ``(6) Treatment of frivolous behavior.--The Attorney General
            shall, by regulation--
                        ``(A) define in a proceeding before an immigration
                    judge or before an appellate administrative body under
                    this title, frivolous behavior for which attorneys may
                    be sanctioned,
                        ``(B) specify the circumstances under which an
                    administrative appeal of a decision or ruling will be
                    considered frivolous and will be summarily dismissed,
                    and
                        ``(C) impose appropriate sanctions (which may
                    include suspension and disbarment) in the case of
                    frivolous behavior.

    Nothing in this paragraph shall be construed as limiting the authority
    of the Attorney General to take actions with respect to inappropriate
    behavior.
                ``(7) Limitation on discretionary relief for failure to
            appear.--Any alien against whom a final order of removal is
            entered in absentia under this subsection and who, at the time
            of the notice described in paragraph (1) or (2) of section
            239(a), was provided oral notice, either in the alien's native
            language or in another language the alien understands, of the
            time and place of the proceedings and of the consequences under
            this paragraph of failing, other than because of exceptional
            circumstances (as defined in subsection (e)(1)) to attend a
            proceeding under this section, shall not be eligible for relief
            under section 240A, 240B, 245, 248, or 249 for a period of 10
            years after the date of the entry of the final order of removal.

        ``(c) Decision and Burden of Proof.--
                ``(1) Decision.--
                        ``(A) In general.--At the conclusion of the
                    proceeding the immigration judge shall decide whether an
                    alien is removable from the United States. The
                    determination of the immigration judge shall be based
                    only on the evidence produced at the hearing.
                        ``(B) Certain medical decisions.--If a medical
                    officer or civil surgeon or board of medical officers
                    has certified under section 232(b) that an alien has a
                    disease, illness, or addiction which would make the
                    alien inadmissible under paragraph (1) of section
                    212(a), the decision of the immigration judge shall be
                    based solely upon such certification.
                ``(2) Burden on alien.--In the proceeding the alien has the
            burden of establishing--
                        ``(A) if the alien is an applicant for admission,
                    that the alien is clearly and beyond doubt entitled to
                    be admitted and is not inadmissible under section 212;
                    or

    [[Page 110 STAT. 3009-592]]

                        ``(B) by clear and convincing evidence, that the
                    alien is lawfully present in the United States pursuant
                    to a prior admission.
            In meeting the burden of proof under subparagraph (B), the alien
            shall have access to the alien's visa or other entry document,
            if any, and any other records and documents, not considered by
            the Attorney General to be confidential, pertaining to the
            alien's admission or presence in the United States.
                ``(3) Burden on service in cases of deportable aliens.--
                        ``(A) In general.--In the proceeding the Service has
                    the burden of establishing by clear and convincing
                    evidence that, in the case of an alien who has been
                    admitted to the United States, the alien is deportable.
                    No decision on deportability shall be valid unless it is
                    based upon reasonable, substantial, and probative
                    evidence.
                        ``(B) Proof of convictions.--In any proceeding under
                    this Act, any of the following documents or records (or
                    a certified copy of such an official document or record)
                    shall constitute proof of a criminal conviction:
                              ``(i) An official record of judgment and
                          conviction.
                              ``(ii) An official record of plea, verdict,
                          and sentence.
                              ``(iii) A docket entry from court records that
                          indicates the existence of the conviction.
                              ``(iv) Official minutes of a court proceeding
                          or a transcript of a court hearing in which the
                          court takes notice of the existence of the
                          conviction.
                              ``(v) An abstract of a record of conviction
                          prepared by the court in which the conviction was
                          entered, or by a State official associated with
                          the State's repository of criminal justice
                          records, that indicates the charge or section of
                          law violated, the disposition of the case, the
                          existence and date of conviction, and the
                          sentence.
                              ``(vi) Any document or record prepared by, or
                          under the direction of, the court in which the
                          conviction was entered that indicates the
                          existence of a conviction.
                              ``(vii) Any document or record attesting to
                          the conviction that is maintained by an official
                          of a State or Federal penal institution, which is
                          the basis for that institution's authority to
                          assume custody of the individual named in the
                          record.
                        ``(C) Electronic records.--In any proceeding under
                    this Act, any record of conviction or abstract that has
                    been submitted by electronic means to the Service from a
                    State or court shall be admissible as evidence to prove
                    a criminal conviction if it is--
                              ``(i) certified by a State official associated
                          with the State's repository of criminal justice
                          records as an official record from its repository
                          or by a court official from the court in which the
                          conviction was entered as an official record from
                          its repository, and
                              ``(ii) certified in writing by a Service
                          official as having been received electronically
                          from the State's record repository or the court's
                          record repository.
                    A certification under clause (i) may be by means of a
                    computer-generated signature and statement of
                    authenticity.

    [[Page 110 STAT. 3009-593]]

                ``(4) Notice.--If the immigration judge decides that the
            alien is removable and orders the alien to be removed, the judge
            shall inform the alien of the right to appeal that decision and
            of the consequences for failure to depart under the order of
            removal, including civil and criminal penalties.
                ``(5) Motions to reconsider.--
                        ``(A) In general.--The alien may file one motion to
                    reconsider a decision that the alien is removable from
                    the United States.
                        ``(B) Deadline.--The motion must be filed within 30
                    days of the date of entry of a final administrative
                    order of removal.
                        ``(C) Contents.--The motion shall specify the errors
                    of law or fact in the previous order and shall be
                    supported by pertinent authority.
                ``(6) Motions to reopen.--
                        ``(A) In general.--An alien may file one motion to
                    reopen proceedings under this section.
                        ``(B) Contents.--The motion to reopen shall state
                    the new facts that will be proven at a hearing to be
                    held if the motion is granted, and shall be supported by
                    affidavits or other evidentiary material.
                        ``(C) Deadline.--
                              ``(i) In general.--Except as provided in this
                          subparagraph, the motion to reopen shall be filed
                          within 90 days of the date of entry of a final
                          administrative order of removal.
                              ``(ii) Asylum.--There is no time limit on the
                          filing of a motion to reopen if the basis of the
                          motion is to apply for relief under sections 208
                          or 241(b)(3) and is based on changed country
                          conditions arising in the country of nationality
                          or the country to which removal has been ordered,
                          if such evidence is material and was not available
                          and would not have been discovered or presented at
                          the previous proceeding.
                              ``(iii) Failure to appear.--The filing of a
                          motion to reopen an order entered pursuant to
                          subsection (b)(5) is subject to the deadline
                          specified in subparagraph (C) of such subsection.

        ``(d) Stipulated Removal.--The Attorney General shall provide by
    regulation for the entry by an immigration judge of an order of removal
    stipulated to by the alien (or the alien's representative) and the
    Service. A stipulated order shall constitute a conclusive determination
    of the alien's removability from the United States.
        ``(e) Definitions.--In this section and section 240A:
                ``(1) Exceptional circumstances.--The term `exceptional
            circumstances' refers to exceptional circumstances (such as
            serious illness of the alien or serious illness or death of the
            spouse, child, or parent of the alien, but not including less
            compelling circumstances) beyond the control of the alien.
                ``(2) Removable.--The term `removable' means--
                        ``(A) in the case of an alien not admitted to the
                    United States, that the alien is inadmissible under
                    section 212, or
                        ``(B) in the case of an alien admitted to the United
                    States, that the alien is deportable under section 237.

    [[Page 110 STAT. 3009-594]]

                 ``cancellation of removal; adjustment of status

        ``Sec. 240A. <<NOTE: 8 USC 1229b.>> (a) Cancellation of Removal for
    Certain Permanent Residents.--The Attorney General may cancel removal in
    the case of an alien who is inadmissible or deportable from the United
    States if the alien--
                ``(1) has been an alien lawfully admitted for permanent
            residence for not less than 5 years,
                ``(2) has resided in the United States continuously for 7
            years after having been admitted in any status, and
                ``(3) has not been convicted of any aggravated felony.

        ``(b) Cancellation of Removal and Adjustment of Status for Certain
    Nonpermanent Residents.--
                ``(1) In general.--The Attorney General may cancel removal
            in the case of an alien who is inadmissible or deportable from
            the United States if the alien--
                        ``(A) has been physically present in the United
                    States for a continuous period of not less than 10 years
                    immediately preceding the date of such application;
                        ``(B) has been a person of good moral character
                    during such period;
                        ``(C) has not been convicted of an offense under
                    section 212(a)(2), 237(a)(2), or 237(a)(3); and
                        ``(D) establishes that removal would result in
                    exceptional and extremely unusual hardship to the
                    alien's spouse, parent, or child, who is a citizen of
                    the United States or an alien lawfully admitted for
                    permanent residence.
                ``(2) Special rule for battered spouse or child.--The
            Attorney General may cancel removal in the case of an alien who
            is inadmissible or deportable from the United States if the
            alien demonstrates that--
                        ``(A) the alien has been battered or subjected to
                    extreme cruelty in the United States by a spouse or
                    parent who is a United States citizen or lawful
                    permanent resident (or is the parent of a child of a
                    United States citizen or lawful permanent resident and
                    the child has been battered or subjected to extreme
                    cruelty in the United States by such citizen or
                    permanent resident parent);
                        ``(B) the alien has been physically present in the
                    United States for a continuous period of not less than 3
                    years immediately preceding the date of such
                    application;
                        ``(C) the alien has been a person of good moral
                    character during such period;
                        ``(D) the alien is not inadmissible under paragraph
                    (2) or (3) of section 212(a), is not deportable under
                    paragraph (1)(G) or (2) through (4) of section 237(a),
                    and has not been convicted of an aggravated felony; and
                        ``(E) the removal would result in extreme hardship
                    to the alien, the alien's child, or (in the case of an
                    alien who is a child) to the alien's parent.
            In acting on applications under this paragraph, the Attorney
            General shall consider any credible evidence relevant to the
            application. The determination of what evidence is credible and
            the weight to be given that evidence shall be within the sole
            discretion of the Attorney General.

    [[Page 110 STAT. 3009-595]]

                ``(3) Adjustment of status.--The Attorney General may adjust
            to the status of an alien lawfully admitted for permanent
            residence any alien who the Attorney General determines meets
            the requirements of paragraph (1) or (2). The number of
            adjustments under this paragraph shall not exceed 4,000 for any
            fiscal year. The Attorney General shall record the alien's
            lawful admission for permanent residence as of the date the
            Attorney General's cancellation of removal under paragraph (1)
            or (2) or determination under this paragraph.

        ``(c) Aliens Ineligible for Relief.--The provisions of subsections
    (a) and (b)(1) shall not apply to any of the following aliens:
                ``(1) An alien who entered the United States as a crewman
            subsequent to June 30, 1964.
                ``(2) An alien who was admitted to the United States as a
            nonimmigrant exchange alien as defined in section 101(a)(15)(J),
            or has acquired the status of such a nonimmigrant exchange alien
            after admission, in order to receive graduate medical education
            or training, regardless of whether or not the alien is subject
            to or has fulfilled the two-year foreign residence requirement
            of section 212(e).
                ``(3) An alien who--
                        ``(A) was admitted to the United States as a
                    nonimmigrant exchange alien as defined in section
                    101(a)(15)(J) or has acquired the status of such a
                    nonimmigrant exchange alien after admission other than
                    to receive graduate medical education or training,
                        ``(B) is subject to the two-year foreign residence
                    requirement of section 212(e), and
                        ``(C) has not fulfilled that requirement or received
                    a waiver thereof.
                ``(4) An alien who is inadmissible under section 212(a)(3)
            or deportable under section 237(a)(4).
                ``(5) An alien who is described in section 241(b)(3)(B)(i).
                ``(6) An alien whose removal has previously been cancelled
            under this section or whose deportation was suspended under
            section 244(a) or who has been granted relief under section
            212(c), as such sections were in effect before the date of the
            enactment of the Illegal Immigration Reform and Immigrant
            Responsibility Act of 1996.

        ``(d) Special Rules Relating to Continuous Residence or Physical
    Presence.--
                ``(1) Termination of continuous period.--For purposes of
            this section, any period of continuous residence or continuous
            physical presence in the United States shall be deemed to end
            when the alien is served a notice to appear under section 239(a)
            or when the alien has committed an offense referred to in
            section 212(a)(2) that renders the alien inadmissible to the
            United States under section 212(a)(2) or removable from the
            United States under section 237(a)(2) or 237(a)(4), whichever is
            earliest.
                ``(2) Treatment of certain breaks in presence.--An alien
            shall be considered to have failed to maintain continuous
            physical presence in the United States under subsections (b)(1)
            and (b)(2) if the alien has departed from the United States for
            any period in excess of 90 days or for any periods in the
            aggregate exceeding 180 days.

    [[Page 110 STAT. 3009-596]]

                ``(3) Continuity not required because of honorable service
            in armed forces and presence upon entry into service.--The
            requirements of continuous residence or continuous physical
            presence in the United States under subsections (a) and (b)
            shall not apply to an alien who--
                        ``(A) has served for a minimum period of 24 months
                    in an active-duty status in the Armed Forces of the
                    United States and, if separated from such service, was
                    separated under honorable conditions, and
                        ``(B) at the time of the alien's enlistment or
                    induction was in the United States.

        ``(e) Annual Limitation.--The Attorney General may not cancel the
    removal and adjust the status under this section, nor suspend the
    deportation and adjust the status under section 244(a) (as in effect
    before the enactment of the Illegal Immigration Reform and Immigrant
    Responsibility Act of 1996), of a total of more than 4,000 aliens in any
    fiscal year. The previous sentence shall apply regardless of when an
    alien applied for such cancellation and adjustment and whether such an
    alien had previously applied for suspension of deportation under such
    section 244(a).

                              ``voluntary departure

        ``Sec. 240B. <<NOTE: 8 USC 1229c.>> (a) Certain Conditions.--
                ``(1) In general.--The Attorney General may permit an alien
            voluntarily to depart the United States at the alien's own
            expense under this subsection, in lieu of being subject to
            proceedings under section 240 or prior to the completion of such
            proceedings, if the alien is not deportable under section
            237(a)(2)(A)(iii) or section 237(a)(4)(B).
                ``(2) Period.--Permission to depart voluntarily under this
            subsection shall not be valid for a period exceeding 120 days.
                ``(3) Bond.--The Attorney General may require an alien
            permitted to depart voluntarily under this subsection to post a
            voluntary departure bond, to be surrendered upon proof that the
            alien has departed the United States within the time specified.
                ``(4) Treatment of aliens arriving in the united states.--In
            the case of an alien who is arriving in the United States and
            with respect to whom proceedings under section 240 are (or would
            otherwise be) initiated at the time of such alien's arrival,
            paragraph (1) shall not apply. Nothing in this paragraph shall
            be construed as preventing such an alien from withdrawing the
            application for admission in accordance with section 235(a)(4).

        ``(b) At Conclusion of Proceedings.--
                ``(1) In general.--The Attorney General may permit an alien
            voluntarily to depart the United States at the alien's own
            expense if, at the conclusion of a proceeding under section 240,
            the immigration judge enters an order granting voluntary
            departure in lieu of removal and finds that--
                        ``(A) the alien has been physically present in the
                    United States for a period of at least one year
                    immediately preceding the date the notice to appear was
                    served under section 239(a);
                        ``(B) the alien is, and has been, a person of good
                    moral character for at least 5 years immediately
                    preceding the alien's application for voluntary
                    departure;

    [[Page 110 STAT. 3009-597]]

                        ``(C) the alien is not deportable under section
                    237(a)(2)(A)(iii) or section 237(a)(4); and
                        ``(D) the alien has established by clear and
                    convincing evidence that the alien has the means to
                    depart the United States and intends to do so.
                ``(2) Period.--Permission to depart voluntarily under this
            subsection shall not be valid for a period exceeding 60 days.
                ``(3) Bond.--An alien permitted to depart voluntarily under
            this subsection shall be required to post a voluntary departure
            bond, in an amount necessary to ensure that the alien will
            depart, to be surrendered upon proof that the alien has departed
            the United States within the time specified.

        ``(c) Aliens Not Eligible.--The Attorney General shall not permit an
    alien to depart voluntarily under this section if the alien was
    previously permitted to so depart after having been found inadmissible
    under section 212(a)(6)(A).
        ``(d) Civil Penalty for Failure to Depart.--If an alien is permitted
    to depart voluntarily under this section and fails voluntarily to depart
    the United States within the time period specified, the alien shall be
    subject to a civil penalty of not less than $1,000 and not more than
    $5,000, and be ineligible for a period of 10 years for any further
    relief under this section and sections 240A, 245, 248, and 249. The
    order permitting the alien to depart voluntarily shall inform the alien
    of the penalties under this subsection.
        ``(e) Additional Conditions.--The Attorney General may by regulation
    limit eligibility for voluntary departure under this section for any
    class or classes of aliens. No court may review any regulation issued
    under this subsection.
        ``(f) Judicial Review.--No court shall have jurisdiction over an
    appeal from denial of a request for an order of voluntary departure
    under subsection (b), nor shall any court order a stay of an alien's
    removal pending consideration of any claim with respect to voluntary
    departure.''.
        (b) Repeal of Section 212(c).--Section 212(c) (8 U.S.C. 1182(c)) is
    repealed.
        (c) Streamlining Removal of Criminal Aliens.--
                (1) In general.--Section 242A(b)(4) (8 U.S.C. 1252a(b)(4)),
            as amended by section 442(a) of Public Law 104-132 and before
            redesignation by section 308(b)(5) of this division, is
            amended--
                        (A) by striking subparagraph (D);
                        (B) by amending subparagraph (E) to read as follows:
                        ``(D) a determination is made for the record that
                    the individual upon whom the notice for the proceeding
                    under this section is served (either in person or by
                    mail) is, in fact, the alien named in such notice;'';
                    and
                        (C) by redesignating subparagraphs (F) and (G) as
                    subparagraph (E) and (F), respectively.
                (2) Effective <<NOTE: 8 USC 1252a note.>> date.--The
            amendments made by paragraph (1) shall be effective as if
            included in the enactment of section 442(a) of Public Law 104-
            132.

    SEC. 305. DETENTION AND REMOVAL OF ALIENS ORDERED REMOVED (NEW SECTION
                241).

        (a) In General.--Title II is further amended--
                (1) by striking section 237 (8 U.S.C. 1227),

    [[Page 110 STAT. 3009-598]]

                (2) by redesignating section 241 (8 U.S.C. 1251) as section
            237 and <<NOTE: 8 USC 1227.>> by moving such section to
            immediately follow section 236, and
                (3) by inserting after section 240C (as redesignated by
            section 304(a)(2)) of this division the following new section:

                ``detention and removal of aliens ordered removed

        ``Sec. 241. <<NOTE: 8 USC 1231.>> (a) Detention, Release, and
    Removal of Aliens Ordered Removed.--
                ``(1) Removal period.--
                        ``(A) In general.--Except as otherwise provided in
                    this section, when an alien is ordered removed, the
                    Attorney General shall remove the alien from the United
                    States within a period of 90 days (in this section
                    referred to as the `removal period').
                        ``(B) Beginning of period.--The removal period
                    begins on the latest of the following:
                              ``(i) The date the order of removal becomes
                          administratively final.
                              ``(ii) If the removal order is judicially
                          reviewed and if a court orders a stay of the
                          removal of the alien, the date of the court's
                          final order.
                              ``(iii) If the alien is detained or confined
                          (except under an immigration process), the date
                          the alien is released from detention or
                          confinement.
                        ``(C) Suspension of period.--The removal period
                    shall be extended beyond a period of 90 days and the
                    alien may remain in detention during such extended
                    period if the alien fails or refuses to make timely
                    application in good faith for travel or other documents
                    necessary to the alien's departure or conspires or acts
                    to prevent the alien's removal subject to an order of
                    removal.
                ``(2) Detention.--During the removal period, the Attorney
            General shall detain the alien. Under no circumstance during the
            removal period shall the Attorney General release an alien who
            has been found inadmissible under section 212(a)(2) or
            212(a)(3)(B) or deportable under section 237(a)(2) or
            237(a)(4)(B).
                ``(3) Supervision after 90-day period.--If the alien does
            not leave or is not removed within the removal period, the
            alien, pending removal, shall be subject to supervision under
            regulations prescribed by the Attorney General. The regulations
            shall include provisions requiring the alien--
                        ``(A) to appear before an immigration officer
                    periodically for identification;
                        ``(B) to submit, if necessary, to a medical and
                    psychiatric examination at the expense of the United
                    States Government;
                        ``(C) to give information under oath about the
                    alien's nationality, circumstances, habits,
                    associations, and activities, and other information the
                    Attorney General considers appropriate; and
                        ``(D) to obey reasonable written restrictions on the
                    alien's conduct or activities that the Attorney General
                    prescribes for the alien.
                ``(4) Aliens imprisoned, arrested, or on parole, supervised
            release, or probation.--

    [[Page 110 STAT. 3009-599]]

                        ``(A) In general.--Except as provided in section
                    343(a) of the Public Health Service Act (42 U.S.C.
                    259(a)) and paragraph (2), the Attorney General may not
                    remove an alien who is sentenced to imprisonment until
                    the alien is released from imprisonment. Parole,
                    supervised release, probation, or possibility of arrest
                    or further imprisonment is not a reason to defer
                    removal.
                        ``(B) Exception for removal of nonviolent offenders
                    prior to completion of sentence of imprisonment.--The
                    Attorney General is authorized to remove an alien in
                    accordance with applicable procedures under this Act
                    before the alien has completed a sentence of
                    imprisonment--
                              ``(i) in the case of an alien in the custody
                          of the Attorney General, if the Attorney General
                          determines that (I) the alien is confined pursuant
                          to a final conviction for a nonviolent offense
                          (other than an offense related to smuggling or
                          harboring of aliens or an offense described in
                          section 101(a)(43)(B), (C), (E), (I), or (L) and
                          (II) the removal of the alien is appropriate and
                          in the best interest of the United States; or
                              ``(ii) in the case of an alien in the custody
                          of a State (or a political subdivision of a
                          State), if the chief State official exercising
                          authority with respect to the incarceration of the
                          alien determines that (I) the alien is confined
                          pursuant to a final conviction for a nonviolent
                          offense (other than an offense described in
                          section 101(a)(43)(C) or (E)), (II) the removal is
                          appropriate and in the best interest of the State,
                          and (III) submits a written request to the
                          Attorney General that such alien be so removed.
                        ``(C) Notice.--Any alien removed pursuant to this
                    paragraph shall be notified of the penalties under the
                    laws of the United States relating to the reentry of
                    deported aliens, particularly the expanded penalties for
                    aliens removed under subparagraph (B).
                        ``(D) No private right.--No cause or claim may be
                    asserted under this paragraph against any official of
                    the United States or of any State to compel the release,
                    removal, or consideration for release or removal of any
                    alien.
                ``(5) Reinstatement of removal orders against aliens
            illegally reentering.--If the Attorney General finds that an
            alien has reentered the United States illegally after having
            been removed or having departed voluntarily, under an order of
            removal, the prior order of removal is reinstated from its
            original date and is not subject to being reopened or reviewed,
            the alien is not eligible and may not apply for any relief under
            this Act, and the alien shall be removed under the prior order
            at any time after the reentry.
                ``(6) Inadmissible or criminal aliens.--An alien ordered
            removed who is inadmissible under section 212, removable under
            section 237(a)(1)(C), 237(a)(2), or 237(a)(4) or who has been
            determined by the Attorney General to be a risk to the community
            or unlikely to comply with the order of removal, may be detained
            beyond the removal period and, if released, shall be subject to
            the terms of supervision in paragraph (3).

    [[Page 110 STAT. 3009-600]]

                ``(7) Employment authorization.--No alien ordered removed
            shall be eligible to receive authorization to be employed in the
            United States unless the Attorney General makes a specific
            finding that--
                        ``(A) the alien cannot be removed due to the refusal
                    of all countries designated by the alien or under this
                    section to receive the alien, or
                        ``(B) the removal of the alien is otherwise
                    impracticable or contrary to the public interest.

        ``(b) Countries to Which Aliens May Be Removed.--
                ``(1) Aliens arriving at the united states.--Subject to
            paragraph (3)--
                        ``(A) In general.--Except as provided by
                    subparagraphs (B) and (C), an alien who arrives at the
                    United States and with respect to whom proceedings under
                    section 240 were initiated at the time of such alien's
                    arrival shall be removed to the country in which the
                    alien boarded the vessel or aircraft on which the alien
                    arrived in the United States.
                        ``(B) Travel from contiguous territory.--If the
                    alien boarded the vessel or aircraft on which the alien
                    arrived in the United States in a foreign territory
                    contiguous to the United States, an island adjacent to
                    the United States, or an island adjacent to a foreign
                    territory contiguous to the United States, and the alien
                    is not a native, citizen, subject, or national of, or
                    does not reside in, the territory or island, removal
                    shall be to the country in which the alien boarded the
                    vessel that transported the alien to the territory or
                    island.
                        ``(C) Alternative countries.--If the government of
                    the country designated in subparagraph (A) or (B) is
                    unwilling to accept the alien into that country's
                    territory, removal shall be to any of the following
                    countries, as directed by the Attorney General:
                              ``(i) The country of which the alien is a
                          citizen, subject, or national.
                              ``(ii) The country in which the alien was
                          born.
                              ``(iii) The country in which the alien has a
                          residence.
                              ``(iv) A country with a government that will
                          accept the alien into the country's territory if
                          removal to each country described in a previous
                          clause of this subparagraph is impracticable,
                          inadvisable, or impossible.
                ``(2) Other aliens.--Subject to paragraph (3)--
                        ``(A) Selection of country by alien.--Except as
                    otherwise provided in this paragraph--
                              ``(i) any alien not described in paragraph (1)
                          who has been ordered removed may designate one
                          country to which the alien wants to be removed,
                          and
                              ``(ii) the Attorney General shall remove the
                          alien to the country the alien so designates.
                        ``(B) Limitation on designation.--An alien may
                    designate under subparagraph (A)(i) a foreign territory
                    contiguous to the United States, an adjacent island, or
                    an island adjacent to a foreign territory contiguous to
                    the United States as the place to which the alien is to
                    be removed

    [[Page 110 STAT. 3009-601]]

                    only if the alien is a native, citizen, subject, or
                    national of, or has resided in, that designated
                    territory or island.
                        ``(C) Disregarding designation.--The Attorney
                    General may disregard a designation under subparagraph
                    (A)(i) if--
                              ``(i) the alien fails to designate a country
                          promptly;
                              ``(ii) the government of the country does not
                          inform the Attorney General finally, within 30
                          days after the date the Attorney General first
                          inquires, whether the government will accept the
                          alien into the country;
                              ``(iii) the government of the country is not
                          willing to accept the alien into the country; or
                              ``(iv) the Attorney General decides that
                          removing the alien to the country is prejudicial
                          to the United States.
                        ``(D) Alternative country.--If an alien is not
                    removed to a country designated under subparagraph
                    (A)(i), the Attorney General shall remove the alien to a
                    country of which the alien is a subject, national, or
                    citizen unless the government of the country--
                              ``(i) does not inform the Attorney General or
                          the alien finally, within 30 days after the date
                          the Attorney General first inquires or within
                          another period of time the Attorney General
                          decides is reasonable, whether the government will
                          accept the alien into the country; or
                              ``(ii) is not willing to accept the alien into
                          the country.
                        ``(E) Additional removal countries.--If an alien is
                    not removed to a country under the previous
                    subparagraphs of this paragraph, the Attorney General
                    shall remove the alien to any of the following
                    countries:
                              ``(i) The country from which the alien was
                          admitted to the United States.
                              ``(ii) The country in which is located the
                          foreign port from which the alien left for the
                          United States or for a foreign territory
                          contiguous to the United States.
                              ``(iii) A country in which the alien resided
                          before the alien entered the country from which
                          the alien entered the United States.
                              ``(iv) The country in which the alien was
                          born.
                              ``(v) The country that had sovereignty over
                          the alien's birthplace when the alien was born.
                              ``(vi) The country in which the alien's
                          birthplace is located when the alien is ordered
                          removed.
                              ``(vii) If impracticable, inadvisable, or
                          impossible to remove the alien to each country
                          described in a previous clause of this
                          subparagraph, another country whose government
                          will accept the alien into that country.
                        ``(F) Removal country when united states is at
                    war.--When the United States is at war and the Attorney
                    General decides that it is impracticable, inadvisable,
                    inconvenient, or impossible to remove an alien under
                    this subsection because of the war, the Attorney General
                    may remove the alien--

    [[Page 110 STAT. 3009-602]]

                              ``(i) to the country that is host to a
                          government in exile of the country of which the
                          alien is a citizen or subject if the government of
                          the host country will permit the alien's entry; or
                              ``(ii) if the recognized government of the
                          country of which the alien is a citizen or subject
                          is not in exile, to a country, or a political or
                          territorial subdivision of a country, that is very
                          near the country of which the alien is a citizen
                          or subject, or, with the consent of the government
                          of the country of which the alien is a citizen or
                          subject, to another country.
                ``(3) Restriction on removal to a country where alien's life
            or freedom would be threatened.--
                        ``(A) In general.--Notwithstanding paragraphs (1)
                    and (2), the Attorney General may not remove an alien to
                    a country if the Attorney General decides that the
                    alien's life or freedom would be threatened in that
                    country because of the alien's race, religion,
                    nationality, membership in a particular social group, or
                    political opinion.
                        ``(B) Exception.--Subparagraph (A) does not apply to
                    an alien deportable under section 237(a)(4)(D) or if the
                    Attorney General decides that--
                              ``(i) the alien ordered, incited, assisted, or
                          otherwise participated in the persecution of an
                          individual because of the individual's race,
                          religion, nationality, membership in a particular
                          social group, or political opinion;
                              ``(ii) the alien, having been convicted by a
                          final judgment of a particularly serious crime is
                          a danger to the community of the United States;
                              ``(iii) there are serious reasons to believe
                          that the alien committed a serious nonpolitical
                          crime outside the United States before the alien
                          arrived in the United States; or
                              ``(iv) there are reasonable grounds to believe
                          that the alien is a danger to the security of the
                          United States.
                    For purposes of clause (ii), an alien who has been
                    convicted of an aggravated felony (or felonies) for
                    which the alien has been sentenced to an aggregate term
                    of imprisonment of at least 5 years shall be considered
                    to have committed a particularly serious crime. The
                    previous sentence shall not preclude the Attorney
                    General from determining that, notwithstanding the
                    length of sentence imposed, an alien has been convicted
                    of a particularly serious crime. For purposes of clause
                    (iv), an alien who is described in section 237(a)(4)(B)
                    shall be considered to be an alien with respect to whom
                    there are reasonable grounds for regarding as a danger
                    to the security of the United States.

        ``(c) Removal of Aliens Arriving at Port of Entry.--
                ``(1) Vessels and aircraft.--An alien arriving at a port of
            entry of the United States who is ordered removed either without
            a hearing under section 235(b)(1) or 235(c) or pursuant to
            proceedings under section 240 initiated at the time of such
            alien's arrival shall be removed immediately on a vessel or
            aircraft owned by the owner of the vessel or aircraft on which
            the alien arrived in the United States, unless--

    [[Page 110 STAT. 3009-603]]

                        ``(A) it is impracticable to remove the alien on one
                    of those vessels or aircraft within a reasonable time,
                    or
                        ``(B) the alien is a stowaway--
                              ``(i) who has been ordered removed in
                          accordance with section 235(a)(1),
                              ``(ii) who has requested asylum, and
                              ``(iii) whose application has not been
                          adjudicated or whose asylum application has been
                          denied but who has not exhausted all appeal
                          rights.
                ``(2) Stay of removal.--
                        ``(A) In general.--The Attorney General may stay the
                    removal of an alien under this subsection if the
                    Attorney General decides that--
                              ``(i) immediate removal is not practicable or
                          proper; or
                              ``(ii) the alien is needed to testify in the
                          prosecution of a person for a violation of a law
                          of the United States or of any State.
                        ``(B) Payment of detention costs.--During the period
                    an alien is detained because of a stay of removal under
                    subparagraph (A)(ii), the Attorney General may pay from
                    the appropriation `Immigration and Naturalization
                    Service--Salaries and Expenses'--
                              ``(i) the cost of maintenance of the alien;
                          and
                              ``(ii) a witness fee of $1 a day.
                        ``(C) Release during stay.--The Attorney General may
                    release an alien whose removal is stayed under
                    subparagraph (A)(ii) on--
                              ``(i) the alien's filing a bond of at least
                          $500 with security approved by the Attorney
                          General;
                              ``(ii) condition that the alien appear when
                          required as a witness and for removal; and
                              ``(iii) other conditions the Attorney General
                          may prescribe.
                ``(3) Costs of detention and maintenance pending removal.--
                        ``(A) In general.--Except as provided in
                    subparagraph (B) and subsection (d), an owner of a
                    vessel or aircraft bringing an alien to the United
                    States shall pay the costs of detaining and maintaining
                    the alien--
                              ``(i) while the alien is detained under
                          subsection (d)(1), and
                              ``(ii) in the case of an alien who is a
                          stowaway, while the alien is being detained
                          pursuant to--
                                        ``(I) subsection (d)(2)(A) or
                                    (d)(2)(B)(i),
                                        ``(II) subsection (d)(2)(B)(ii) or
                                    (iii) for the period of time reasonably
                                    necessary for the owner to arrange for
                                    repatriation or removal of the stowaway,
                                    including obtaining necessary travel
                                    documents, but not to extend beyond the
                                    date on which it is ascertained that
                                    such travel documents cannot be obtained
                                    from the country to which the stowaway
                                    is to be returned, or
                                        ``(III) section 235(b)(1)(B)(ii),
                                    for a period not to exceed 15 days
                                    (excluding Saturdays, Sundays, and
                                    holidays) commencing on the first such
                                    day which begins on the earlier of 72
                                    hours after the

    [[Page 110 STAT. 3009-604]]

                                    time of the initial presentation of the
                                    stowaway for inspection or at the time
                                    the stowaway is determined to have a
                                    credible fear of persecution.
                        ``(B) Nonapplication.--Subparagraph (A) shall not
                    apply if--
                              ``(i) the alien is a crewmember;
                              ``(ii) the alien has an immigrant visa;
                              ``(iii) the alien has a nonimmigrant visa or
                          other documentation authorizing the alien to apply
                          for temporary admission to the United States and
                          applies for admission not later than 120 days
                          after the date the visa or documentation was
                          issued;
                              ``(iv) the alien has a reentry permit and
                          applies for admission not later than 120 days
                          after the date of the alien's last inspection and
                          admission;
                              ``(v)(I) the alien has a nonimmigrant visa or
                          other documentation authorizing the alien to apply
                          for temporary admission to the United States or a
                          reentry permit;
                              ``(II) the alien applies for admission more
                          than 120 days after the date the visa or
                          documentation was issued or after the date of the
                          last inspection and admission under the reentry
                          permit; and
                              ``(III) the owner of the vessel or aircraft
                          satisfies the Attorney General that the existence
                          of the condition relating to inadmissibility could
                          not have been discovered by exercising reasonable
                          care before the alien boarded the vessel or
                          aircraft; or
                              ``(vi) the individual claims to be a national
                          of the United States and has a United States
                          passport.

         ``(d) Requirements of Persons Providing Transportation.--
                ``(1) Removal at time of arrival.--An owner, agent, master,
            commanding officer, person in charge, purser, or consignee of a
            vessel or aircraft bringing an alien (except an alien
            crewmember) to the United States shall--
                        ``(A) receive an alien back on the vessel or
                    aircraft or another vessel or aircraft owned or operated
                    by the same interests if the alien is ordered removed
                    under this part; and
                        ``(B) take the alien to the foreign country to which
                    the alien is ordered removed.
                ``(2) Alien stowaways.--An owner, agent, master, commanding
            officer, charterer, or consignee of a vessel or aircraft
            arriving in the United States with an alien stowaway--
                        ``(A) shall detain the alien on board the vessel or
                    aircraft, or at such place as the Attorney General shall
                    designate, until completion of the inspection of the
                    alien by an immigration officer;
                        ``(B) may not permit the stowaway to land in the
                    United States, except pursuant to regulations of the
                    Attorney General temporarily--
                              ``(i) for medical treatment,
                              ``(ii) for detention of the stowaway by the
                          Attorney General, or
                              ``(iii) for departure or removal of the
                          stowaway; and

    [[Page 110 STAT. 3009-605]]

                        ``(C) if ordered by an immigration officer, shall
                    remove the stowaway on the vessel or aircraft or on
                    another vessel or aircraft.
            The Attorney General shall grant a timely request to remove the
            stowaway under subparagraph (C) on a vessel or aircraft other
            than that on which the stowaway arrived if the requester has
            obtained any travel documents necessary for departure or
            repatriation of the stowaway and removal of the stowaway will
            not be unreasonably delayed.
                ``(3) Removal upon order.--An owner, agent, master,
            commanding officer, person in charge, purser, or consignee of a
            vessel, aircraft, or other transportation line shall comply with
            an order of the Attorney General to take on board, guard safely,
            and transport to the destination specified any alien ordered to
            be removed under this Act.

        ``(e) Payment of Expenses of Removal.--
                ``(1) Costs of removal at time of arrival.--In the case of
            an alien who is a stowaway or who is ordered removed either
            without a hearing under section 235(a)(1) or 235(c) or pursuant
            to proceedings under section 240 initiated at the time of such
            alien's arrival, the owner of the vessel or aircraft (if any) on
            which the alien arrived in the United States shall pay the
            transportation cost of removing the alien. If removal is on a
            vessel or aircraft not owned by the owner of the vessel or
            aircraft on which the alien arrived in the United States, the
            Attorney General may--
                        ``(A) pay the cost from the appropriation
                    `Immigration and Naturalization Service--Salaries and
                    Expenses'; and
                        ``(B) recover the amount of the cost in a civil
                    action from the owner, agent, or consignee of the vessel
                    or aircraft (if any) on which the alien arrived in the
                    United States.
                ``(2) Costs of removal to port of removal for aliens
            admitted or permitted to land.-- In the case of an alien who has
            been admitted or permitted to land and is ordered removed, the
            cost (if any) of removal of the alien to the port of removal
            shall be at the expense of the appropriation for the enforcement
            of this Act.
                ``(3) Costs of removal from port of removal for aliens
            admitted or permitted to land.--
                        ``(A) Through appropriation.--Except as provided in
                    subparagraph (B), in the case of an alien who has been
                    admitted or permitted to land and is ordered removed,
                    the cost (if any) of removal of the alien from the port
                    of removal shall be at the expense of the appropriation
                    for the enforcement of this Act.
                        ``(B) Through owner.--
                              ``(i) In general.--In the case of an alien
                          described in clause (ii), the cost of removal of
                          the alien from the port of removal may be charged
                          to any owner of the vessel, aircraft, or other
                          transportation line by which the alien came to the
                          United States.
                              ``(ii) Aliens described.--An alien described
                          in this clause is an alien who--
                                        ``(I) is admitted to the United
                                    States (other than lawfully admitted for
                                    permanent residence) and is ordered
                                    removed within 5 years of the date

    [[Page 110 STAT. 3009-606]]

                                    of admission based on a ground that
                                    existed before or at the time of
                                    admission, or
                                        ``(II) is an alien crewman permitted
                                    to land temporarily under section 252
                                    and is ordered removed within 5 years of
                                    the date of landing.
                        ``(C) Costs of removal of certain aliens granted
                    voluntary departure.--In the case of an alien who has
                    been granted voluntary departure under section 240B and
                    who is financially unable to depart at the alien's own
                    expense and whose removal the Attorney General deems to
                    be in the best interest of the United States, the
                    expense of such removal may be paid from the
                    appropriation for the enforcement of this Act.

        ``(f) Aliens Requiring Personal Care During Removal.--
                ``(1) In general.--If the Attorney General believes that an
            alien being removed requires personal care because of the
            alien's mental or physical condition, the Attorney General may
            employ a suitable person for that purpose who shall accompany
            and care for the alien until the alien arrives at the final
            destination.
                ``(2) Costs.--The costs of providing the service described
            in paragraph (1) shall be defrayed in the same manner as the
            expense of removing the accompanied alien is defrayed under this
            section.

        ``(g) Places of Detention.--
                ``(1) In general.--The Attorney General shall arrange for
            appropriate places of detention for aliens detained pending
            removal or a decision on removal. When United States Government
            facilities are unavailable or facilities adapted or suitably
            located for detention are unavailable for rental, the Attorney
            General may expend from the appropriation `Immigration and
            Naturalization Service--Salaries and Expenses', without regard
            to section 3709 of the Revised Statutes (41 U.S.C. 5), amounts
            necessary to acquire land and to acquire, build, remodel,
            repair, and operate facilities (including living quarters for
            immigration officers if not otherwise available) necessary for
            detention.
                ``(2) Detention facilities of the immigration and
            naturalization service.--Prior to initiating any project for the
            construction of any new detention facility for the Service, the
            Commissioner shall consider the availability for purchase or
            lease of any existing prison, jail, detention center, or other
            comparable facility suitable for such use.

        ``(h) Statutory Construction.--Nothing in this section shall be
    construed to create any substantive or procedural right or benefit that
    is legally enforceable by any party against the United States or its
    agencies or officers or any other person.''.
        (b) Reentry of Alien Removed Prior to Completion of Term of
    Imprisonment.--Section 276(b) (8 U.S.C. 1326(b)), as amended by section
    321(b) of this division, is amended--
                (1) by striking ``or'' at the end of paragraph (2),
                (2) by adding ``or'' at the end of paragraph (3), and
                (3) by inserting after paragraph (3) the following new
            paragraph:
                ``(4) who was removed from the United States pursuant to
            section 241(a)(4)(B) who thereafter, without the permission of
            the Attorney General, enters, attempts to enter, or is at any
            time found in, the United States (unless the Attorney

    [[Page 110 STAT. 3009-607]]

            General has expressly consented to such alien's reentry) shall
            be fined under title 18, United States Code, imprisoned for not
            more than 10 years, or both.

        (c) Miscellaneous Conforming Amendment.--Section 212(a)(4) (8 U.S.C.
    1182(a)(4)), as amended by section 621(a) of this division, is amended
    by striking ``241(a)(5)(B)'' each place it appears and inserting
    ``237(a)(5)(B)''.

    SEC. 306. APPEALS FROM ORDERS OF REMOVAL (NEW SECTION 242).

        (a) In General.--Section 242 (8 U.S.C. 1252) is amended--
                (1) by redesignating subsection (j) as subsection (i) and by
            moving such subsection and adding it at the end of section 241,
            as inserted by <<NOTE: 8 USC 1231.>> section 305(a)(3) of this
            division; and
                (2) by amending the remainder of section 242 to read as
            follows:

                     ``judicial review of orders of removal

        ``Sec. 242. (a) Applicable Provisions.--
                ``(1) General orders of removal.--Judicial review of a final
            order of removal (other than an order of removal without a
            hearing pursuant to section 235(b)(1)) is governed only by
            chapter 158 of title 28 of the United States Code, except as
            provided in subsection (b) and except that the court may not
            order the taking of additional evidence under section 2347(c) of
            such title.
                ``(2) Matters not subject to judicial review.--
                        ``(A) Review relating to section 235(b)(1).--
                    Notwithstanding any other provision of law, no court
                    shall have jurisdiction to review--
                              ``(i) except as provided in subsection (e),
                          any individual determination or to entertain any
                          other cause or claim arising from or relating to
                          the implementation or operation of an order of
                          removal pursuant to section 235(b)(1),
                              ``(ii) except as provided in subsection (e), a
                          decision by the Attorney General to invoke the
                          provisions of such section,
                              ``(iii) the application of such section to
                          individual aliens, including the determination
                          made under section 235(b)(1)(B), or
                              ``(iv) except as provided in subsection (e),
                          procedures and policies adopted by the Attorney
                          General to implement the provisions of section
                          235(b)(1).
                        ``(B) Denials of discretionary relief.--
                    Notwithstanding any other provision of law, no court
                    shall have jurisdiction to review--
                              ``(i) any judgment regarding the granting of
                          relief under section 212(h), 212(i), 240A, 240B,
                          or 245, or
                              ``(ii) any other decision or action of the
                          Attorney General the authority for which is
                          specified under this title to be in the discretion
                          of the Attorney General, other than the granting
                          of relief under section 208(a).
                        ``(C) Orders against criminal aliens.--
                    Notwithstanding any other provision of law, no court
                    shall have jurisdiction to review any final order of
                    removal against an alien who is removable by reason of
                    having committed a criminal offense covered in section
                    212(a)(2) or

    [[Page 110 STAT. 3009-608]]

                    237(a)(2)(A)(iii), (B), (C), or (D), or any offense
                    covered by section 237(a)(2)(A)(ii) for which both
                    predicate offenses are, without regard to their date of
                    commission, otherwise covered by section
                    237(a)(2)(A)(i).
                ``(3) Treatment of certain decisions.--No alien shall have a
            right to appeal from a decision of an immigration judge which is
            based solely on a certification described in section
            240(c)(1)(B).

        ``(b) Requirements for Review of Orders of Removal.--With respect to
    review of an order of removal under subsection (a)(1), the following
    requirements apply:
                ``(1) Deadline.--The petition for review must be filed not
            later than 30 days after the date of the final order of removal.
                ``(2) Venue and forms.--The petition for review shall be
            filed with the court of appeals for the judicial circuit in
            which the immigration judge completed the proceedings. The
            record and briefs do not have to be printed. The court of
            appeals shall review the proceeding on a typewritten record and
            on typewritten briefs.
                ``(3) Service.--
                        ``(A) In general.--The respondent is the Attorney
                    General. The petition shall be served on the Attorney
                    General and on the officer or employee of the Service in
                    charge of the Service district in which the final order
                    of removal under section 240 was entered.
                        ``(B) Stay of order.--Service of the petition on the
                    officer or employee does not stay the removal of an
                    alien pending the court's decision on the petition,
                    unless the court orders otherwise.
                        ``(C) Alien's brief.--The alien shall serve and file
                    a brief in connection with a petition for judicial
                    review not later than 40 days after the date on which
                    the administrative record is available, and may serve
                    and file a reply brief not later than 14 days after
                    service of the brief of the Attorney General, and the
                    court may not extend these deadlines except upon motion
                    for good cause shown. If an alien fails to file a brief
                    within the time provided in this paragraph, the court
                    shall dismiss the appeal unless a manifest injustice
                    would result.
                ``(4) Scope and standard for review.--Except as provided in
            paragraph (5)(B)--
                        ``(A) the court of appeals shall decide the petition
                    only on the administrative record on which the order of
                    removal is based,
                        ``(B) the administrative findings of fact are
                    conclusive unless any reasonable adjudicator would be
                    compelled to conclude to the contrary,
                        ``(C) a decision that an alien is not eligible for
                    admission to the United States is conclusive unless
                    manifestly contrary to law, and
                        ``(D) the Attorney General's discretionary judgment
                    whether to grant relief under section 208(a) shall be
                    conclusive unless manifestly contrary to the law and an
                    abuse of discretion.
                ``(5) Treatment of nationality claims.--
                        ``(A) Court determination if no issue of fact.--If
                    the petitioner claims to be a national of the United

    [[Page 110 STAT. 3009-609]]

                    States and the court of appeals finds from the pleadings
                    and affidavits that no genuine issue of material fact
                    about the petitioner's nationality is presented, the
                    court shall decide the nationality claim.
                        ``(B) Transfer if issue of fact.--If the petitioner
                    claims to be a national of the United States and the
                    court of appeals finds that a genuine issue of material
                    fact about the petitioner's nationality is presented,
                    the court shall transfer the proceeding to the district
                    court of the United States for the judicial district in
                    which the petitioner resides for a new hearing on the
                    nationality claim and a decision on that claim as if an
                    action had been brought in the district court under
                    section 2201 of title 28, United States Code.
                        ``(C) Limitation on determination.--The petitioner
                    may have such nationality claim decided only as provided
                    in this paragraph.
                ``(6) Consolidation with review of motions to reopen or
            reconsider.--When a petitioner seeks review of an order under
            this section, any review sought of a motion to reopen or
            reconsider the order shall be consolidated with the review of
            the order.
                ``(7) Challenge to validity of orders in certain criminal
            proceedings.--
                        ``(A) In general.--If the validity of an order of
                    removal has not been judicially decided, a defendant in
                    a criminal proceeding charged with violating section
                    243(a) may challenge the validity of the order in the
                    criminal proceeding only by filing a separate motion
                    before trial. The district court, without a jury, shall
                    decide the motion before trial.
                        ``(B) Claims of united states nationality.--If the
                    defendant claims in the motion to be a national of the
                    United States and the district court finds that--
                              ``(i) no genuine issue of material fact about
                          the defendant's nationality is presented, the
                          court shall decide the motion only on the
                          administrative record on which the removal order
                          is based and the administrative findings of fact
                          are conclusive if supported by reasonable,
                          substantial, and probative evidence on the record
                          considered as a whole; or
                              ``(ii) a genuine issue of material fact about
                          the defendant's nationality is presented, the
                          court shall hold a new hearing on the nationality
                          claim and decide that claim as if an action had
                          been brought under section 2201 of title 28,
                          United States Code.

                    The defendant may have such nationality claim decided
                    only as provided in this subparagraph.
                        ``(C) Consequence of invalidation.--If the district
                    court rules that the removal order is invalid, the court
                    shall dismiss the indictment for violation of section
                    243(a). The United States Government may appeal the
                    dismissal to the court of appeals for the appropriate
                    circuit within 30 days after the date of the dismissal.
                        ``(D) Limitation on filing petitions for review.--
                    The defendant in a criminal proceeding under section
                    243(a) may not file a petition for review under
                    subsection (a) during the criminal proceeding.

    [[Page 110 STAT. 3009-610]]

                ``(8) Construction.--This subsection--
                        ``(A) does not prevent the Attorney General, after a
                    final order of removal has been issued, from detaining
                    the alien under section 241(a);
                        ``(B) does not relieve the alien from complying with
                    section 241(a)(4) and section 243(g); and
                        ``(C) does not require the Attorney General to defer
                    removal of the alien.
                ``(9) Consolidation of questions for judicial review.--
            Judicial review of all questions of law and fact, including
            interpretation and application of constitutional and statutory
            provisions, arising from any action taken or proceeding brought
            to remove an alien from the United States under this title shall
            be available only in judicial review of a final order under this
            section.

        ``(c) Requirements for Petition.--A petition for review or for
    habeas corpus of an order of removal--
                ``(1) shall attach a copy of such order, and
                ``(2) shall state whether a court has upheld the validity of
            the order, and, if so, shall state the name of the court, the
            date of the court's ruling, and the kind of proceeding.

        ``(d) Review of Final Orders.--A court may review a final order of
    removal only if--
                ``(1) the alien has exhausted all administrative remedies
            available to the alien as of right, and
                ``(2) another court has not decided the validity of the
            order, unless the reviewing court finds that the petition
            presents grounds that could not have been presented in the prior
            judicial proceeding or that the remedy provided by the prior
            proceeding was inadequate or ineffective to test the validity of
            the order.

        ``(e) Judicial Review of Orders Under Section 235(b)(1).--
                ``(1) Limitations on relief.--Without regard to the nature
            of the action or claim and without regard to the identity of the
            party or parties bringing the action, no court may--
                        ``(A) enter declaratory, injunctive, or other
                    equitable relief in any action pertaining to an order to
                    exclude an alien in accordance with section 235(b)(1)
                    except as specifically authorized in a subsequent
                    paragraph of this subsection, or
                        ``(B) certify a class under Rule 23 of the Federal
                    Rules of Civil Procedure in any action for which
                    judicial review is authorized under a subsequent
                    paragraph of this subsection.
                ``(2) Habeas corpus proceedings.--Judicial review of any
            determination made under section 235(b)(1) is available in
            habeas corpus proceedings, but shall be limited to
            determinations of--
                        ``(A) whether the petitioner is an alien,
                        ``(B) whether the petitioner was ordered removed
                    under such section, and
                        ``(C) whether the petitioner can prove by a
                    preponderance of the evidence that the petitioner is an
                    alien lawfully admitted for permanent residence, has
                    been admitted as a refugee under section 207, or has
                    been granted asylum under section 208, such status not
                    having been terminated, and is entitled to such further
                    inquiry as prescribed by the Attorney General pursuant
                    to section 235(b)(1)(C).

    [[Page 110 STAT. 3009-611]]

                ``(3) Challenges on validity of the system.--
                        ``(A) In general.--Judicial review of determinations
                    under section 235(b) and its implementation is available
                    in an action instituted in the United States District
                    Court for the District of Columbia, but shall be limited
                    to determinations of--
                              ``(i) whether such section, or any regulation
                          issued to implement such section, is
                          constitutional; or
                              ``(ii) whether such a regulation, or a written
                          policy directive, written policy guideline, or
                          written procedure issued by or under the authority
                          of the Attorney General to implement such section,
                          is not consistent with applicable provisions of
                          this title or is otherwise in violation of law.
                        ``(B) Deadlines for bringing actions.--Any action
                    instituted under this paragraph must be filed no later
                    than 60 days after the date the challenged section,
                    regulation, directive, guideline, or procedure described
                    in clause (i) or (ii) of subparagraph (A) is first
                    implemented.
                        ``(C) Notice of appeal.--A notice of appeal of an
                    order issued by the District Court under this paragraph
                    may be filed not later than 30 days after the date of
                    issuance of such order.
                        ``(D) Expeditious consideration of cases.--It shall
                    be the duty of the District Court, the Court of Appeals,
                    and the Supreme Court of the United States to advance on
                    the docket and to expedite to the greatest possible
                    extent the disposition of any case considered under this
                    paragraph.
                ``(4) Decision.--In any case where the court determines that
            the petitioner--
                        ``(A) is an alien who was not ordered removed under
                    section 235(b)(1), or
                        ``(B) has demonstrated by a preponderance of the
                    evidence that the alien is an alien lawfully admitted
                    for permanent residence, has been admitted as a refugee
                    under section 207, or has been granted asylum under
                    section 208, the court may order no remedy or relief
                    other than to require that the petitioner be provided a
                    hearing in accordance with section 240. Any alien who is
                    provided a hearing under section 240 pursuant to this
                    paragraph may thereafter obtain judicial review of any
                    resulting final order of removal pursuant to subsection
                    (a)(1).
                ``(5) Scope of inquiry.--In determining whether an alien has
            been ordered removed under section 235(b)(1), the court's
            inquiry shall be limited to whether such an order in fact was
            issued and whether it relates to the petitioner. There shall be
            no review of whether the alien is actually inadmissible or
            entitled to any relief from removal.

        ``(f) Limit on Injunctive Relief.--
                ``(1) In general.--Regardless of the nature of the action or
            claim or of the identity of the party or parties bringing the
            action, no court (other than the Supreme Court) shall have
            jurisdiction or authority to enjoin or restrain the operation of
            the provisions of chapter 4 of title II, as amended by the
            Illegal Immigration Reform and Immigrant Responsibility Act of
            1996, other than with respect to the application of such

    [[Page 110 STAT. 3009-612]]

            provisions to an individual alien against whom proceedings under
            such chapter have been initiated.
                ``(2) Particular cases.--Notwithstanding any other provision
            of law, no court shall enjoin the removal of any alien pursuant
            to a final order under this section unless the alien shows by
            clear and convincing evidence that the entry or execution of
            such order is prohibited as a matter of law.

        ``(g) Exclusive Jurisdiction.--Except as provided in this section
    and notwithstanding any other provision of law, no court shall have
    jurisdiction to hear any cause or claim by or on behalf of any alien
    arising from the decision or action by the Attorney General to commence
    proceedings, adjudicate cases, or execute removal orders against any
    alien under this Act.''.
        (b) Repeal of Section 106.--Section 106 (8 U.S.C. 1105a) is
    repealed.
        (c) Effective <<NOTE: 8 USC 1252 note.>> Date.--
                (1) In general.--Subject to paragraph (2), the amendments
            made by subsections (a) and (b) shall apply to all final orders
            of deportation or removal and motions to reopen filed on or
            after the date of the enactment of this Act and subsection (g)
            of section 242 of the Immigration and Nationality Act (as added
            by subsection (a)), shall apply without limitation to claims
            arising from all past, pending, or future exclusion,
            deportation, or removal proceedings under such Act.
                (2) Limitation.--Paragraph (1) shall not be considered to
            invalidate or to require the reconsideration of any judgment or
            order entered under section 106 of the Immigration and
            Nationality Act, as amended by section 440 of Public Law 104-
            132.

        (d) Technical Amendment.--Effective as if included in the enactment
    of the Antiterrorism and Effective Death Penalty Act of 1996 (Public Law
    104-132), subsections (a), (c), (d), (g), and (h) of section <<NOTE: 8
    USC 1105a, 1182, 1252, 1252a.>>  440 of such Act are amended by striking
    ``any offense covered by section 241(a)(2)(A)(ii) for which both
    predicate offenses are covered by section 241(a)(2)(A)(i)'' and
    inserting ``any offense covered by section 241(a)(2)(A)(ii) for which
    both predicate offenses are, without regard to the date of their
    commission, otherwise covered by section 241(a)(2)(A)(i)''.

    SEC. 307. PENALTIES RELATING TO REMOVAL (REVISED SECTION 243).

        (a) In General.--Section 243 (8 U.S.C. 1253) is amended to read as
    follows:

                         ``penalties related to removal

        ``Sec. 243. (a) Penalty for Failure To Depart.--
                ``(1) In general.--Any alien against whom a final order of
            removal is outstanding by reason of being a member of any of the
            classes described in section 237(a), who--
                        ``(A) willfully fails or refuses to depart from the
                    United States within a period of 90 days from the date
                    of the final order of removal under administrative
                    processes, or if judicial review is had, then from the
                    date of the final order of the court,
                        ``(B) willfully fails or refuses to make timely
                    application in good faith for travel or other documents
                    necessary to the alien's departure,

    [[Page 110 STAT. 3009-613]]

                        ``(C) connives or conspires, or takes any other
                    action, designed to prevent or hamper or with the
                    purpose of preventing or hampering the alien's departure
                    pursuant to such, or
                        ``(D) willfully fails or refuses to present himself
                    or herself for removal at the time and place required by
                    the Attorney General pursuant to such order,
            shall be fined under title 18, United States Code, or imprisoned
            not more than four years (or 10 years if the alien is a member
            of any of the classes described in paragraph (1)(E), (2), (3),
            or (4) of section 237(a)), or both.
                ``(2) Exception.--It is not a violation of paragraph (1) to
            take any proper steps for the purpose of securing cancellation
            of or exemption from such order of removal or for the purpose of
            securing the alien's release from incarceration or custody.
                ``(3) Suspension.--The court may for good cause suspend the
            sentence of an alien under this subsection and order the alien's
            release under such conditions as the court may prescribe. In
            determining whether good cause has been shown to justify
            releasing the alien, the court shall take into account such
            factors as--
                        ``(A) the age, health, and period of detention of
                    the alien;
                        ``(B) the effect of the alien's release upon the
                    national security and public peace or safety;
                        ``(C) the likelihood of the alien's resuming or
                    following a course of conduct which made or would make
                    the alien deportable;
                        ``(D) the character of the efforts made by such
                    alien himself and by representatives of the country or
                    countries to which the alien's removal is directed to
                    expedite the alien's departure from the United States;
                        ``(E) the reason for the inability of the Government
                    of the United States to secure passports, other travel
                    documents, or removal facilities from the country or
                    countries to which the alien has been ordered removed;
                    and
                        ``(F) the eligibility of the alien for discretionary
                    relief under the immigration laws.

        ``(b) Willful Failure To Comply with Terms of Release Under
    Supervision.--An alien who shall willfully fail to comply with
    regulations or requirements issued pursuant to section 241(a)(3) or
    knowingly give false information in response to an inquiry under such
    section shall be fined not more than $1,000 or imprisoned for not more
    than one year, or both.
        ``(c) Penalties Relating To Vessels and Aircraft.--
                ``(1) Civil penalties.--
                        ``(A) Failure to carry out certain orders.--If the
                    Attorney General is satisfied that a person has violated
                    subsection (d) or (e) of section 241, the person shall
                    pay to the Commissioner the sum of $2,000 for each
                    violation.
                        ``(B) Failure to remove alien stowaways.--If the
                    Attorney General is satisfied that a person has failed
                    to remove an alien stowaway as required under section
                    241(d)(2), the person shall pay to the Commissioner the
                    sum of $5,000 for each alien stowaway not removed.

    [[Page 110 STAT. 3009-614]]

                        ``(C) No compromise.--The Attorney General may not
                    compromise the amount of such penalty under this
                    paragraph.
                ``(2) Clearing vessels and aircraft.--
                        ``(A) Clearance before decision on liability.--A
                    vessel or aircraft may be granted clearance before a
                    decision on liability is made under paragraph (1) only
                    if a bond approved by the Attorney General or an amount
                    sufficient to pay the civil penalty is deposited with
                    the Commissioner.
                        ``(B) Prohibition on clearance while penalty
                    unpaid.--A vessel or aircraft may not be granted
                    clearance if a civil penalty imposed under paragraph (1)
                    is not paid.

        ``(d) Discontinuing Granting Visas to Nationals of Country Denying
    or Delaying Accepting Alien.--On being notified by the Attorney General
    that the government of a foreign country denies or unreasonably delays
    accepting an alien who is a citizen, subject, national, or resident of
    that country after the Attorney General asks whether the government will
    accept the alien under this section, the Secretary of State shall order
    consular officers in that foreign country to discontinue granting
    immigrant visas or nonimmigrant visas, or both, to citizens, subjects,
    nationals, and residents of that country until the Attorney General
    notifies the Secretary that the country has accepted the alien.''.

    SEC. 308. REDESIGNATION AND REORGANIZATION OF OTHER PROVISIONS;
                ADDITIONAL CONFORMING AMENDMENTS.

        (a) Conforming Amendment to Table of Contents; Overview of
    Reorganized Chapters.--The table of contents, as amended by sections
    123(b) and 671(e)(1) of this division, is amended--
                (1) by striking the item relating to section 106, and
                (2) by striking the item relating to chapter 4 of title II
            and all that follows through the item relating to section 244A
            and inserting the following:

       ``chapter 4--inspection, apprehension, examination, exclusion, and
                                     removal

    ``Sec. 231. Lists of alien and citizen passengers arriving or
                          departing; record of resident aliens and
                          citizens leaving permanently for foreign
                          country.
    ``Sec. 232. Detention of aliens for physical and mental
                          examination.
    ``Sec. 233. Entry through or from foreign territory and adjacent
                          islands; landing stations.
    ``Sec. 234. Designation of ports of entry for aliens arriving by
                          civil aircraft.
    ``Sec. 235. Inspection by immigration officers; expedited removal
                          of inadmissible arriving aliens; referral
                          for hearing.
    ``Sec. 235A. Preinspection at foreign airports.
    ``Sec. 236. Apprehension and detention of aliens not lawfully in
                          the United States.
    ``Sec. 237. General classes of deportable aliens.
    ``Sec. 238. Expedited removal of aliens convicted of committing
                          aggravated felonies.
    ``Sec. 239. Initiation of removal proceedings.
    ``Sec. 240. Removal proceedings.

    [[Page 110 STAT. 3009-615]]

    ``Sec. 240A. Cancellation of removal; adjustment of status.
    ``Sec. 240B. Voluntary departure.
    ``Sec. 240C. Records of admission.
    ``Sec. 241. Detention and removal of aliens ordered removed.
    ``Sec. 242. Judicial review of orders of removal.
    ``Sec. 243. Penalties relating to removal.
    ``Sec. 244. Temporary protected status.

                 ``chapter 5--adjustment and change of status''.

        (b) Reorganization of Other Provisions.--Chapters 4 and 5 of title
    II are amended as follows:
                (1) Amending chapter heading.--Amend the heading for chapter
            4 of title II to read as follows:

       ``Chapter 4--Inspection, Apprehension, Examination, Exclusion, and
                                   Removal''.

                (2) Redesignating section 232 as section 232(a).--Amend
            section 232 (8 U.S.C. 1222)--
                        (A) by inserting ``(a) Detention of Aliens.--''
                    after ``Sec. 232.'', and
                        (B) by amending the section heading to read as
                    follows:

          ``detention of aliens for physical and mental examination''.

                (3) Redesignating section 234 as section 232(b).--Amend
            section 234 (8 U.S.C. 1224)--
                        (A) by striking the heading,
                        (B) by striking ``Sec. 234.'' and inserting the
                    following: ``(b) Physical and Mental Examination.--'',
                    and
                        (C) by moving such provision to the end of section
                    232. <<NOTE: 8 USC 1222.>>
                (4) Redesignating section 238 as section 233.--Redesignate
            section 238 <<NOTE: 8 USC 1223.>> (8 U.S.C. 1228) as section 233
            and move the section to immediately follow section 232.
                (5) Redesignating section 242a as section 238.--Redesignate
            section <<NOTE: 8 USC 1228.>> 242A as section 238, strike
            ``deportation'' in its heading and insert ``removal'', and move
            the section to immediately follow section 237 (as redesignated
            by section 305(a)(2)).
                (6) Striking section 242b.--Strike section 242B (8 U.S.C.
            1252b).
                (7) Striking section 244 and redesignating section 244a as
            section 244.--Strike section 244 (8 U.S.C. 1254) and redesignate
            section <<NOTE: 8 USC 1254a.>> 244A as section 244.
                (8) Amending chapter heading.--Amend the heading for chapter
            5 of title II to read as follows:

                 ``Chapter 5--Adjustment and Change of Status''.

        (c) Additional Conforming Amendments.--
                (1) Expedited procedures for aggravated felons (former
            section 242a).--Section 238 (which, previous to redesignation
            under section 308(b)(5) of this division, was section 242A) is
            amended--
                        (A) in subsection (a)(1), by striking ``section
                    242'' and inserting ``section 240'';

    [[Page 110 STAT. 3009-616]]

                        (B) in subsection (a)(2), by striking ``section
                    242(a)(2)'' and inserting ``section 236(c)''; and
                        (C) in subsection (b)(1), by striking ``section
                    241(a)(2)(A)(iii)'' and inserting ``section
                    237(a)(2)(A)(iii)''.
                (2) Treatment of certain helpless aliens.--
                        (A) Certification of helpless aliens.--Section 232
                    (8 U.S.C. 1222), as amended by section 308(b)(2) of this
                    division, is further amended by adding at the end the
                    following new subsection:

        ``(c) Certification of Certain Helpless Aliens.--If an examining
    medical officer determines that an alien arriving in the United States
    is inadmissible, is helpless from sickness, mental or physical
    disability, or infancy, and is accompanied by another alien whose
    protection or guardianship may be required, the officer may certify such
    fact for purposes of applying section 212(a)(10)(B) with respect to the
    other alien.''.
                        (B) Ground of inadmissibility for protection and
                    guardianship of aliens denied admission for health or
                    infancy.--Subparagraph (B) of section 212(a)(10) (8
                    U.S.C. 1182(a)(10)), as redesignated by section
                    301(a)(1) of this division, is amended to read as
                    follows:
                        ``(B) Guardian required to accompany helpless
                    alien.--Any alien--
                              ``(i) who is accompanying another alien who is
                          inadmissible and who is certified to be helpless
                          from sickness, mental or physical disability, or
                          infancy pursuant to section 232(c), and
                              ``(ii) whose protection or guardianship is
                          determined to be required by the alien described
                          in clause (i),
                    is inadmissible.''.
                (3) Contingent consideration in relation to removal of
            aliens.--Section 273(a) (8 U.S.C. 1323(a)) is amended--
                        (A) by inserting ``(1)'' after ``(a)'', and
                        (B) by adding at the end the following new
                    paragraph:

        ``(2) It is unlawful for an owner, agent, master, commanding
    officer, person in charge, purser, or consignee of a vessel or aircraft
    who is bringing an alien (except an alien crewmember) to the United
    States to take any consideration to be kept or returned contingent on
    whether an alien is admitted to, or ordered removed from, the United
    States.''.
                (4) Clarification.--(A) Section 238(a)(1), which, previous
            to redesignation under section 308(b)(5) of this division, was
            section 242A(a)(1), is amended <<NOTE: 8 USC 1228.>>  by adding
            at the end the following: ``Nothing in this section shall be
            construed to create any substantive or procedural right or
            benefit that is legally enforceable by any party against the
            United States or its agencies or officers or any other
            person.''.
                (B) Section 225 of the Immigration and Nationality Technical
            Corrections Act of 1994 (Public Law 103-416) <<NOTE: 8 USC 1101
            note.>> is amended by striking ``and nothing in'' and all that
            follows up to ``shall''.

        (d) Additional Conforming Amendments Relating to Exclusion and
    Inadmissibility.--
                (1) Section 212.--Section 212 (8 U.S.C. 1182(a)) is
            amended--
                        (A) in the heading, by striking ``excluded from''
                    and inserting ``ineligible for'';

    [[Page 110 STAT. 3009-617]]

                        (B) in the matter in subsection (a) before paragraph
                    (1), by striking all that follows ``(a)'' and inserting
                    the following: ``Classes of Aliens Ineligible for Visas
                    or Admission.--Except as otherwise provided in this Act,
                    aliens who are inadmissible under the following
                    paragraphs are ineligible to receive visas and
                    ineligible to be admitted to the United States:'';
                        (C) in subsection (a), by striking ``is excludable''
                    and inserting ``is inadmissible'' each place it appears;
                        (D) in subsections (a)(5)(C) (before redesignation
                    by section 343(c)(1) of this division), (d)(1), and (k),
                    by striking ``exclusion'' and inserting
                    ``inadmissibility'';
                        (E) in subsections (b), (d)(3), (h)(1)(A)(i), and
                    (k), by striking ``excludable'' each place it appears
                    and inserting ``inadmissible'';
                        (F) in subsection (b)(2), by striking ``or
                    ineligible for entry'';
                        (G) in subsection (d)(7), by striking ``excluded
                    from'' and inserting ``denied''; and
                        (H) in subsection (h)(1)(B), by striking
                    ``exclusion'' and inserting ``denial of admission''.
                (2) Section 241.--Section 241 (8 U.S.C. 1251), before
            redesignation as section 237 by section 305(a)(2) of this
            division, is amended--
                        (A) in subsection (a)(1)(H), by striking
                    ``excludable'' and inserting ``inadmissible'';
                        (B) in subsection (a)(4)(C)(ii), by striking
                    ``excludability'' and inserting ``inadmissibility'';
                        (C) in subsection (c), by striking ``exclusion'' and
                    inserting ``inadmissibility''; and
                        (D) effective upon enactment of this Act, by
                    striking subsection (d), as added by section 414(a) of
                    the Antiterrorism and Effective Death Penalty Act of
                    1996 (P.L. 104-132).
                (3) Other general references.--The following provisions are
            amended by striking ``excludability'' and ``excludable'' each
            place each appears and inserting ``inadmissibility'' and
            ``inadmissible'', respectively:
                        (A) <<NOTE: 8 USC 1101, 1183, 1224, 1251, 1322,
                    1327, 1356.>> Sections 101(f)(3), 213, 234 (before
                    redesignation by section 308(b) of this division),
                    241(a)(1) (before redesignation by section 305(a)(2) of
                    this division), 272(a), 277, 286(h)(2)(A)(v), and
                    286(h)(2)(A)(vi).
                        (B) <<NOTE: 8 USC 1182 note.>> Section 601(c) of the
                    Immigration Act of 1990.
                        (C) <<NOTE: 8 USC 1182 note.>> Section 128 of the
                    Foreign Relations Authorization Act, Fiscal Years 1992
                    and 1993 (Public Law 102-138).
                        (D) Section 1073 of the National Defense
                    Authorization Act for Fiscal Year 1995 (Public Law 103-
                    337).
                        (E) <<NOTE: 8 USC 1101 note.>> Section 221 of the
                    Immigration and Nationality Technical Corrections Act of
                    1994 (Public Law 103-416).
                (4) Related terms.--
                        (A) Section 101(a)(17) (8 U.S.C. 1101(a)(17)) is
                    amended by striking ``or expulsion'' and inserting
                    ``expulsion, or removal''.
                        (B) Section 102 (8 U.S.C. 1102) is amended by
                    striking ``exclusion or deportation'' and inserting
                    ``removal''.

    [[Page 110 STAT. 3009-618]]

                        (C) Section 103(c)(2) (8 U.S.C. 1103(c)(2)) is
                    amended by striking ``been excluded or deported'' and
                    inserting ``not been admitted or have been removed''.
                        (D) Section 206 (8 U.S.C. 1156) is amended by
                    striking ``excluded from admission to the United States
                    and deported'' and inserting ``denied admission to the
                    United States and removed''.
                        (E) Section 216(f) (8 U.S.C. 1186a) is amended by
                    striking ``exclusion'' and inserting
                    ``inadmissibility''.
                        (F) Section 217 (8 U.S.C. 1187) is amended by
                    striking ``excluded from admission'' and inserting
                    ``denied admission at the time of arrival'' each place
                    it appears.
                        (G) Section 221(f) (8 U.S.C. 1201) is amended by
                    striking ``exclude'' and inserting ``deny admission
                    to''.
                        (H) Section 232(a) (8 U.S.C. 1222(a)), as
                    redesignated by subsection (b)(2), is amended by
                    striking ``excluded by'' and ``the excluded classes''
                    and inserting ``inadmissible under'' and ``inadmissible
                    classes'', respectively.
                        (I)(i) Section 272 (8 U.S.C. 1322) is amended--
                              (I) by striking ``exclusion'' in the heading
                          and inserting ``denial of admission'',
                              (II) in subsection (a), by striking
                          ``excluding condition'' and inserting ``condition
                          causing inadmissibility'', and
                              (III) in subsection (c), by striking
                          ``excluding''.
                        (ii) The item in the table of contents relating to
                    such section is amended by striking ``exclusion'' and
                    inserting ``denial of admission''.
                        (J) Section 276(a) (8 U.S.C. 1326(a)) is amended--
                              (i) in paragraph (1), as amended by section
                          324(a) of this division--
                                        (I) by striking ``arrested and
                                    deported, has been excluded and
                                    deported,'' and inserting ``denied
                                    admission, excluded, deported, or
                                    removed'', and
                                        (II) by striking ``exclusion or
                                    deportation'' and inserting ``exclusion,
                                    deportation, or removal''; and
                              (ii) in paragraph (2)(B), by striking
                          ``excluded and deported'' and inserting ``denied
                          admission and removed''.
                        (K) Section 286(h)(2)(A)(vi) (8 U.S.C.
                    1356(h)(2)(A)(vi)) is amended by striking ``exclusion''
                    each place it appears and inserting ``removal''.
                        (L) Section 287 (8 U.S.C. 1357) is amended--
                              (i) in subsection (a), by striking ``or
                          expulsion'' each place it appears and inserting
                          ``expulsion, or removal'', and
                              (ii) in subsection (c), by striking
                          ``exclusion from'' and inserting ``denial of
                          admission to''.
                        (M) Section 290(a) (8 U.S.C. 1360(a)) is amended by
                    striking ``admitted to the United States, or excluded
                    therefrom'' each place it appears and inserting
                    ``admitted or denied admission to the United States''.
                        (N) Section 291 (8 U.S.C. 1361) is amended by
                    striking ``subject to exclusion'' and inserting
                    ``inadmissible'' each place it appears.

    [[Page 110 STAT. 3009-619]]

                        (O) Section 292 (8 U.S.C. 1362) is amended by
                    striking ``exclusion or deportation'' each place it
                    appears and inserting ``removal''.
                        (P) Section 360 (8 U.S.C. 1503) is amended--
                              (i) in subsection (a), by striking
                          ``exclusion'' each place it appears and inserting
                          ``removal'', and
                              (ii) in subsection (c), by striking ``excluded
                          from'' and inserting ``denied''.
                        (Q) Section 507(b)(2)(D) (8 U.S.C. 1537(b)(2)(D)) is
                    amended by striking ``exclusion because such alien is
                    excludable'' and inserting ``removal because such alien
                    is inadmissible''.
                        (R) Section 301(a)(1) of <<NOTE: 8 USC 1255a
                    note.>>  the Immigration Act of 1990 is amended by
                    striking ``exclusion'' and inserting
                    ``inadmissibility''.
                        (S) Section <<NOTE: 8 USC 1522 note.>>  401(c) of
                    the Refugee Act of 1980 is amended by striking
                    ``deportation or exclusion'' and inserting ``removal''.
                        (T) Section 501(e)(2) of the Refugee Education
                    Assistance Act of <<NOTE: 8 USC 1522 note.>> 1980
                    (Public Law 96-422) is amended--
                              (i) by striking ``exclusion or deportation''
                          each place it appears and inserting ``removal'',
                          and
                              (ii) by striking ``deportation or exclusion''
                          each place it appears and inserting ``removal''.
                        (U) Section 4113(c) of title 18, United States Code,
                    is amended by striking ``exclusion and deportation'' and
                    inserting ``removal''.
                (5) Repeal of superseded provision.--Effective as of the
            date of the enactment of the Antiterrorism and Effective Death
            Penalty Act <<NOTE: 8 USC 1225, 1225 note, 1227.>>  of 1996,
            section 422 of such Act is repealed and the Immigration and
            Nationality Act shall be applied as if such section had not been
            enacted.

        (e) Revision of Terminology Relating to Deportation.--
                (1) Each of the following is amended by striking
            ``deportation'' each place it appears and inserting ``removal'':
                        (A) Subparagraphs (A)(iii)(II), (A)(iv)(II), and
                    (B)(iii)(II) of section 204(a)(1) (8 U.S.C. 1154(a)(1)).
                        (B) Section 212(d)(1) (8 U.S.C. 1182(d)(1)).
                        (C) Section 212(d)(11) (8 U.S.C. 1182(d)(11)).
                        (D) Section 214(k)(4)(C) (8 U.S.C. 1184(k)(4)(C)),
                    as redesignated by section 671(a)(3)(A) of this
                    division.
                        (E) Section 241(a)(1)(H) (8 U.S.C. 1251(a)(1)(H)),
                    before redesignation as section 237 by section 305(a)(2)
                    of this division.
                        (F) Section 242A (8 U.S.C. 1252a), before
                    redesignation as section 238 by subsection (b)(5).
                        (G) Subsections (a)(3) and (b)(5)(B) of section 244A
                    (8 U.S.C. 1254a), before redesignation as section 244 by
                    subsection (b)(7).
                        (H) Section 246(a) (8 U.S.C. 1256(a)).
                        (I) Section 254 (8 U.S.C. 1284).
                        (J) Section 263(a)(4) (8 U.S.C. 1303(a)(4)).
                        (K) Section 276(b) (8 U.S.C. 1326(b)).
                        (L) Section 286(h)(2)(A)(v) (8 U.S.C.
                    1356(h)(2)(A)(v)).
                        (M) Section 287(g) (8 U.S.C. 1357(g)) (as added by
                    section 122 of this division).
                        (N) Section 291 (8 U.S.C. 1361).

    [[Page 110 STAT. 3009-620]]

                        (O) Section 318 (8 U.S.C. 1429).
                        (P) Section 130005(a) of the Violent Crime Control
                    and Law <<NOTE: 8 USC 1158 note.>> Enforcement Act of
                    1994 (Public Law 103-322).
                        (Q) Section 4113(b) of title 18, United States Code.
                (2) Each of the following is amended by striking
            ``deported'' each place it appears and inserting ``removed'':
                        (A) Section 212(d)(7) (8 U.S.C. 1182(d)(7)).
                        (B) Section 214(d) (8 U.S.C. 1184(d)).
                        (C) Section 241(a) (8 U.S.C. 1251(a)), before
                    redesignation as section 237 by section 305(a)(2) of
                    this division.
                        (D) Section 242A(c)(2)(D)(iv) (8 U.S.C.
                    1252a(c)(2)(D)(iv)), as amended by section 671(b)(13) of
                    this division but before redesignation as section 238 by
                    subsection (b)(5).
                        (E) Section 252(b) (8 U.S.C. 1282(b)).
                        (F) Section 254 (8 U.S.C. 1284).
                        (G) Subsections (b) and (c) of section 266 (8 U.S.C.
                    1306).
                        (H) <<NOTE: 8 USC 1225a note.>> Section 301(a)(1) of
                    the Immigration Act of 1990.
                        (I) Section 4113 of title 18, United States Code.
                (3) Section 101(g) (8 U.S.C. 1101(g)) is amended by
            inserting ``or removed'' after ``deported'' each place it
            appears.
                (4) Section 103(c)(2) (8 U.S.C. 1103(c)(2)) is amended by
            striking ``suspension of deportation'' and inserting
            ``cancellation of removal''.
                (5) Section 201(b)(1)(D) (8 U.S.C. 1151(b)(1)(D)) is amended
            by striking ``deportation is suspended'' and inserting ``removal
            is canceled''.
                (6) Section 212(l)(2)(B) (8 U.S.C. 1182(l)(2)(B)) is amended
            by striking ``deportation against'' and inserting ``removal
            of''.
                (7) Subsections (b)(2), (c)(2)(B), (c)(3)(D), (c)(4)(A), and
            (d)(2)(C) of section 216 (8 U.S.C. 1186a) are each amended by
            striking ``deportation'', ``deportation'', ``deport'', and
            ``deported'' each place each appears and inserting ``removal'',
            ``removal'', ``remove'', and ``removed'', respectively.
                (8) Subsections (b)(2), (c)(2)(B), (c)(3)(D), and (d)(2)(C)
            of section 216A (8 U.S.C. 1186b) are each amended by striking
            ``deportation'', ``deportation'', ``deport'', and ``deported''
            and inserting ``removal'', ``removal'', ``remove'', and
            ``removed'', respectively.
                (9) Section 217(b)(2) (8 U.S.C. 1187(b)(2)) is amended by
            striking ``deportation against'' and inserting ``removal of''.
                (10) Section 242A (8 U.S.C. 1252a), before redesignation as
            section 238 by subsection (b)(6), is amended, in the headings to
            various subdivisions, by striking ``Deportation'' and
            ``deportation'' and inserting ``Removal'' and ``removal'',
            respectively.
                (11) Section 244A(a)(1)(A) (8 U.S.C. 1254a(a)(1)(A)), before
            redesignation as section 244 by subsection (b)(8), is amended--
                        (A) in subsection (a)(1)(A), by striking ``deport''
                    and inserting ``remove'', and
                        (B) in subsection (e), by striking ``Suspension of
                    Deportation'' and inserting ``Cancellation of Removal''.
                (12) Section 254 (8 U.S.C. 1284) is amended by striking
            ``deport'' each place it appears and inserting ``remove''.
                (13) Section 273(d) (8 U.S.C. 1323(d)) is repealed.
                (14)(A) Section 276 (8 U.S.C. 1326) is amended by striking
            ``deported'' and inserting ``removed''.

    [[Page 110 STAT. 3009-621]]

                (B) The item in the table of contents relating to such
            section is amended by striking ``deported'' and inserting
            ``removed''.
                (15) Section 318 (8 U.S.C. 1429) is amended by striking
            ``suspending'' and inserting ``canceling''.
                (16) Section 301(a) of <<NOTE: 8 USC 1255a note.>>  the
            Immigration Act of 1990 is amended by striking ``Deportation''
            and inserting ``Removal''.
                (17) The heading of section 130005 of the Violent Crime
            Control and Law Enforcement Act of 1994 (Public Law 103-
            322) <<NOTE: 8 USC 1158 note.>> is amended by striking
            ``DEPORTATION'' and inserting ``REMOVAL''.
                (18) Section 9 of the Peace Corps Act (22 U.S.C. 2508) is
            amended by striking ``deported'' and all that follows through
            ``Deportation'' and inserting ``removed pursuant to chapter 4 of
            title II of the Immigration and Nationality Act''.
                (19) Section 8(c) of the Foreign Agents Registration Act (22
            U.S.C. 618(c)) is amended by striking ``deportation'' and all
            that follows and inserting ``removal pursuant to chapter 4 of
            title II of the Immigration and Nationality Act.''.

        (f) Revision of References to Entry.--
                (1) The following provisions are amended by striking
            ``entry'' and inserting ``admission'' each place it appears:
                        (A) Section 101(a)(15)(K) (8 U.S.C. 1101(a)(15)(K)).
                        (B) Section 101(a)(30) (8 U.S.C. 1101(a)(30)).
                        (C) Section 212(a)(2)(D) (8 U.S.C. 1182(a)(2)(D)).
                        (D) Section 212(a)(6)(C)(i) (8 U.S.C.
                    1182(a)(6)(C)(i)).
                        (E) Section 212(h)(1)(A)(i) (8 U.S.C.
                    1182(h)(1)(A)(i)).
                        (F) Section 212(j)(1)(D) (8 U.S.C. 1182(j)(1)(D)).
                        (G) Section 214(c)(2)(A) (8 U.S.C. 1184(c)(2)(A)).
                        (H) Section 214(d) (8 U.S.C. 1184(d)).
                        (I) Section 216(b)(1)(A)(i) (8 U.S.C.
                    1186a(b)(1)(A)(i)).
                        (J) Section 216(d)(1)(A)(i)(III) (8 U.S.C.
                    1186a(d)(1)(A)(i)(III)).
                        (K) Subsection (b) of section 240 (8 U.S.C. 1230),
                    before redesignation as section 240C by section
                    304(a)(2) of this division.
                        (L) Subsection (a)(1)(G) of section 241 (8 U.S.C.
                    1251), before redesignation as section 237 by section
                    305(a)(2) of this division.
                        (M) Subsection (a)(1)(H) of section 241 (8 U.S.C.
                    1251), before redesignation as section 237 by section
                    305(a)(2) of this division, other than the last time it
                    appears.
                        (N) Paragraphs (2) and (4) of subsection (a) of
                    section 241 (8 U.S.C. 1251), before redesignation as
                    section 237 by section 305(a)(2) of this division.
                        (O) Section 245(e)(3) (8 U.S.C. 1255(e)(3)).
                        (P) Section 247(a) (8 U.S.C. 1257(a)).
                        (Q) <<NOTE: 8 USC 1182 note.>> Section 601(c)(2) of
                    the Immigration Act of 1990.
                (2) The following provisions are amended by striking
            ``enter'' and inserting ``be admitted'':
                        (A) Section 204(e) (8 U.S.C. 1154(e)).
                        (B) Section 221(h) (8 U.S.C. 1201(h)).
                        (C) Section 245(e)(2) (8 U.S.C. 1255(e)(2)).
                (3) The following provisions are amended by striking
            ``enters'' and inserting ``is admitted to'':
                        (A) <<NOTE: 8 USC 1182.>> Section 212(j)(1)(D)(ii)
                    (8 U.S.C. 1154(e)).
                        (B) Section 214(c)(5)(B) (8 U.S.C. 1184(c)(5)(B)).

    [[Page 110 STAT. 3009-622]]

                (4) Subsection (a) of section 238 (8 U.S.C. 1228), before
            redesignation as section 233 by section 308(b)(4) of this
            division, is amended by striking ``entry and inspection'' and
            inserting ``inspection and admission''.
                (5) Subsection (a)(1)(H)(ii) of section 241 (8 U.S.C. 1251),
            before redesignation as section 237 by section 305(a)(2) of this
            division, is amended by striking ``at entry''.
                (6) Section 7 of the Central Intelligence Agency Act of 1949
            (50 U.S.C. 403h) is amended by striking ``that the entry'',
            ``given entry into'', and ``entering'' and inserting ``that the
            admission'', ``admitted to'', and ``admitted to''.
                (7) Section 4 of the Atomic Weapons and Special Nuclear
            Materials Rewards Act (50 U.S.C. 47c) is amended by striking
            ``entry'' and inserting ``admission''.

        (g) Conforming References to Reorganized Sections.--
                (1) References <<NOTE: 8 USC 1182, 1221, 1224 note, 1252a,
            1254a note, 1255a note, 1321, 1356, 1364, 1531; 42 USC 402.>> to
            sections 232, 234, 238, 239, 240, 241, 242a, and 244a.--Any
            reference in law in effect on the day before the date of the
            enactment of this Act to section 232, 234, 238, 239, 240, 241,
            242A, or 244A of the Immigration and Nationality Act (or a
            subdivision of such section) is deemed, as of the title III-A
            effective date, to refer to section 232(a), 232(b), 233, 234,
            234A, 237, 238, or 244 of such Act (or the corresponding
            subdivision of such section), as redesignated by this subtitle.
            Any reference in law to section 241 (or a subdivision of such
            section) of the Immigration and Nationality Act in an amendment
            made by a subsequent subtitle of this title is deemed a
            reference (as of the title III-A effective date) to section 237
            (or the corresponding subdivision of such section), as
            redesignated by this subtitle.
                (2) References to section 106.--
                        (A) Sections 242A(b)(3) and 242A(c)(3)(A)(ii) (8
                    U.S.C. 1252a(b)(3), 1252a(c)(3)(A)(ii)), as amended by
                    section 671(b)(13) of this division but before
                    redesignation as section 238 by subsection (b)(5), are
                    each amended by striking ``106'' and inserting ``242''.
                        (B) Sections 210(e)(3)(A) and 245A(f)(4)(A) (8
                    U.S.C. 1160(e)(3)(A), 1255a(f)(4)(A)) are amended by
                    inserting ``(as in effect before October 1, 1996)''
                    after ``106''.
                        (C) Section 242A(c)(3)(A)(iii) (8 U.S.C.
                    1252a(c)(3)(A)(iii)), as amended by section 671(b)(13)
                    of this division but before redesignation as section 238
                    by subsection (b)(5), is amended by striking
                    ``106(a)(1)'' and inserting ``242(b)(1)''.
                (3) References to section 236.--
                        (A) Sections 205 and 209(a)(1) (8 U.S.C. 1155,
                    1159(a)(1)) are each amended by striking ``236'' and
                    inserting ``240''.
                        (B) Section 4113(c) of title 18, United States Code,
                    is amended by striking ``1226 of title 8, United States
                    Code'' and inserting ``240 of the Immigration and
                    Nationality Act''.
                (4) References to section 237.--
                        (A) Section 209(a)(1) (8 U.S.C. 1159(a)(1)) is
                    amended by striking ``237'' and inserting ``241''.
                        (B) Section 212(d)(7) (8 U.S.C. 1182(d)(7)) is
                    amended by striking ``237(a)'' and inserting ``241(c)''.

    [[Page 110 STAT. 3009-623]]

                        (C) Section 280(a) (8 U.S.C. 1330(a)) is amended by
                    striking ``237, 239, 243'' and inserting ``234,
                    243(c)(2)''.
                (5) References to section 242.--
                        (A)(i) Sections 214(d), 252(b), and 287(f)(1) (8
                    U.S.C. 1184(d), 1282(b), 1357(f)(1)) are each amended by
                    striking ``242'' and inserting ``240''.
                        (ii) Subsection (c)(4) of section 242A (8 U.S.C.
                    1252a), as amended by section 671(b)(13) of this
                    division but before redesignation as section 238 by
                    subsection (b)(5), are each amended by striking ``242''
                    and inserting ``240''.
                        (iii) Section 245A(a)(1)(B) (8 U.S.C.
                    1255a(a)(1)(B)) is amended by inserting ``(as in effect
                    before October 1, 1996)'' after ``242''.
                        (iv) Section 4113 of title 18, United States Code,
                    is amended--
                              (I) in subsection (a), by striking ``section
                          1252(b) or section 1254(e) of title 8, United
                          States Code,'' and inserting ``section 240B of the
                          Immigration and Nationality Act''; and
                              (II) in subsection (b), by striking ``section
                          1252 of title 8, United States Code,'' and
                          inserting ``section 240 of the Immigration and
                          Nationality Act''.
                        (B) Section 130002(a) of Public Law 103-322, as
                    amended by <<NOTE: 8 USC 1252 note.>> section 345 of
                    this division, is amended by striking ``242(a)(3)(A)''
                    and inserting ``236(d)''.
                        (C) Section 242A(b)(1) (8 U.S.C. 1252a(b)(1)),
                    before redesignation as section 238 by section 308(b)(5)
                    of this division, is amended by striking ``242(b)'' and
                    inserting ``240''.
                        (D) Section 242A(c)(2)(D)(ii) (8 U.S.C.
                    1252a(c)(2)(D)(ii)), as amended by section 671(b)(13) of
                    this division but before redesignation as section 238 by
                    subsection (b)(5), is amended by striking ``242(b)'' and
                    inserting ``240''.
                        (E) Section 1821(e) of title 28, United States Code,
                    is amended by striking ``242(b)'' and inserting ``240''.
                        (F) Section 130007(a) <<NOTE: 8 USC 1252 note.>>  of
                    Public Law 103-322 is amended by striking ``242(i)'' and
                    inserting ``239(d)''.
                        (G) Section 20301(c) <<NOTE: 8 USC 1252 note.>>  of
                    Public Law 103-322 is amended by striking ``242(j)(5)''
                    and ``242(j)'' and inserting ``241(h)(5)'' and
                    ``241(h)'', respectively.
                (6) References to section 242b.--
                        (A) Section 303(d)(2) <<NOTE: 8 USC 1254a note.>>
                    of the Immigration Act of 1990 is amended by striking
                    ``242B'' and inserting ``240(b)(5)''.
                        (B) Section 545(g)(1)(B) <<NOTE: 8 USC 1254b
                    note.>>  of the Immigration Act of 1990 is amended by
                    striking ``242B(a)(4)'' and inserting ``239(a)(4)''.
                (7) References to section 243.--
                        (A) Section 214(d) (8 U.S.C. 1184(d)) is amended by
                    striking ``243'' and inserting ``241''.
                        (B) Section 504(k)(2) (8 U.S.C. 1534(k)(2)) is
                    amended by striking ``withholding of deportation under
                    section 243(h)'' and inserting ``by withholding of
                    removal under section 241(b)(3)''.
                        (C)(i) Section 315(c) of the Immigration Reform and
                    Control Act <<NOTE: 8 USC 1253 note.>>  of 1986 is
                    amended by striking ``243(g)'' and ``1253(g)''and
                    inserting ``243(d)'' and ``1253(d)'' respectively.

    [[Page 110 STAT. 3009-624]]

                        (ii) Section 702(b) of the Departments of Commerce,
                    Justice, and State, the Judiciary, and Related Agencies
                    Appropriations <<NOTE: 8 USC 1201 note.>> Act, 1988 is
                    amended by striking ``243(g)'' and inserting ``243(d)''.
                        (iii) Section <<NOTE: 8 USC 1201 note.>>  903(b) of
                    Public Law 100-204 is amended by striking ``243(g)'' and
                    inserting ``243(d)''.
                        (D)(i) Section 6(f)(2)(F) of the Food Stamp Act of
                    1977 (7 U.S.C. 2015(f)(2)(F)) is amended by striking
                    ``243(h)'' and inserting ``241(b)(3)''.
                        (ii) Section 214(a)(5) of the Housing and Community
                    Development Act of 1980 (42 U.S.C. 1436a(a)(5)) is
                    amended by striking ``243(h)'' and inserting
                    ``241(b)(3)''.
                        (E)(i) Subsection (c)(2)(B)(ii) of section 244A (8
                    U.S.C. 1254a), before redesignated as section 244 by
                    section 308(b)(7), is amended by striking ``243(h)(2)''
                    and inserting ``208(b)(2)(A)''.
                        (ii) Section <<NOTE: 8 USC 1255a note.>>  301(e)(2)
                    of the Immigration Act of 1990 is amended by striking
                    ``243(h)(2)'' and inserting ``208(b)(2)(A)''.
                        (F) Section 316(f) (8 U.S.C. 1427(f)) is amended by
                    striking ``subparagraphs (A) through (D) of paragraph
                    243(h)(2)'' and inserting ``clauses (i) through (v) of
                    section 208(b)(2)(A)''.
                (8) References to section 244.--
                        (A)(i) Section 201(b)(1)(D) (8 U.S.C. 1151(b)(1)(D))
                    and subsection (e) of section 244A (8 U.S.C. 1254a),
                    before redesignation as section 244 by section 308(b)(7)
                    of this division, are each amended by striking
                    ``244(a)'' and inserting ``240A(a)''.
                        (ii) Section 304(c)(1)(B) of the Miscellaneous and
                    Technical Immigration and Naturalization Amendments of
                    1991 (Public Law 102-232) is amended by <<NOTE: 8 USC
                    1254a note.>> striking ``244(a)'' and inserting
                    ``240A(a)''.
                        (B) Section 504(k)(3) (8 U.S.C. 1534(k)(3)) is
                    amended by striking ``suspension of deportation under
                    subsection (a) or (e) of section 244'' and inserting
                    ``cancellation of removal under section 240A''.
                        (C) Section 304(c)(1)(B) of the Miscellaneous and
                    Technical Immigration and Naturalization Amendments of
                    1991 (Public Law 102-232) is <<NOTE: 8 USC 1254a
                    note.>> amended by striking ``244(b)(2)'' and inserting
                    ``240A(b)(2)''.
                        (D) Section 364(a)(2) <<NOTE: 8 USC 1367.>>  of this
                    division is amended by striking ``244(a)(3)'' and
                    inserting ``240A(a)(3)''.
                        (E) Section 431(c)(1)(B)(iii) of the Personal
                    Responsibility and Work Opportunity Reconciliation Act
                    of 1996, as added by section <<NOTE: 8 USC 1641.>>  501
                    of this division, is amended by striking ``suspension of
                    deportation and adjustment of status pursuant to section
                    244(a)(3) of such Act'' and inserting ``cancellation of
                    removal under section 240A of such Act''.
                (9) References to chapter 5.--
                        (A) Sections 266(b), 266(c), and 291 (8 U.S.C.
                    1306(b), 1306(c), 1361) are each amended by striking
                    ``chapter 5'' and inserting ``chapter 4''.
                        (B) Section 6(b) of the Act of August 1, 1956 (50
                    U.S.C. 855(b)) is amended by striking ``chapter 5, title
                    II, of the

    [[Page 110 STAT. 3009-625]]

                    Immigration and Nationality Act (66 Stat. 163)'' and
                    inserting ``chapter 4 of title II of the Immigration and
                    Nationality Act''.
                (10) Miscellaneous cross-reference corrections for newly
            added provisions.--
                        (A) Section 212(h), as amended by section 301(h) of
                    this division, is <<NOTE: 8 USC 1182.>> amended by
                    striking ``section 212(c)'' and inserting ``paragraphs
                    (1) and (2) of section 240A(a)''.
                        (B) Section 245(c)(6), as amended by section 332(d)
                    of this <<NOTE: 8 USC 1255.>> division, is amended by
                    striking ``241(a)(4)(B)'' and inserting
                    ``237(a)(4)(B)''.
                        (C) Section 249(d), as amended by section 332(e) of
                    this division, is <<NOTE: 8 USC 1259.>> amended by
                    striking ``241(a)(4)(B)'' and inserting
                    ``237(a)(4)(B)''.
                        (D) Section 274C(d)(7), as added by section 212(d)
                    of this division, is <<NOTE: 8 USC 1324c.>> amended by
                    striking ``withholding of deportation under section
                    243(h)'' and inserting ``withholding of removal under
                    section 241(b)(3)''.
                        (E) Section 3563(b)(21) of title 18, United States
                    Code, as inserted by section 374(b) of this division, is
                    amended by striking ``242A(d)(5)'' and inserting
                    ``238(d)(5)''.
                        (F) Section 130007(a) of the Violent Crime Control
                    and Law Enforcement Act of 1994 (Public Law 103-322), as
                    amended by <<NOTE: 8 USC 1252 note.>>  section 671(a)(6)
                    of this division, is amended by striking ``242A(a)(3)''
                    and inserting ``238(a)(3)''.
                        (G) <<NOTE: 8 USC 1368.>> Section 386(b) of this
                    division is amended by striking ``excludable'' and
                    ``excludable'' and inserting ``inadmissible'' and
                    ``inadmissible'', respectively, each place each appears.
                        (H) Subsections (a), (c), (d), (g), and (h) of
                    section 440 of the Antiterrorism and Effective Death
                    Penalty Act of 1996 (Public Law 104-132), as amended by
                    section 306(d) of this <<NOTE: 8 USC 1105a, 1182, 1252,
                    1252a.>>  division, are amended by striking
                    ``241(a)(2)(A)(ii)'' and ``241(a)(2)(A)(i)'' and
                    inserting ``237(a)(2)(A)(ii)'' and ``237(a)(2)(A)(i)'',
                    respectively.

    SEC. 309. EFFECTIVE DATES; TRANSITION.

        (a) In <<NOTE: 8 USC 1101 note.>> General.--Except as provided in
    this section and sections 303(b)(2), 306(c), 308(d)(2)(D), or 308(d)(5)
    of this division, this subtitle and the amendments made by this subtitle
    shall take effect on the first day of the first month beginning more
    than 180 days after the date of the enactment of this Act (in this title
    referred to as the ``title III-A effective date'').

        (b) Promulgation of Regulations.--The Attorney General shall first
    promulgate regulations to carry out this subtitle by not later than 30
    days before the title III-A effective date.
        (c) Transition for Aliens in Proceedings.--
                (1) General rule that new rules do not apply.--Subject to
            the succeeding provisions of this subsection, in the case of an
            alien who is in exclusion or deportation proceedings as of the
            title III-A effective date--
                        (A) the amendments made by this subtitle shall not
                    apply, and
                        (B) the proceedings (including judicial review
                    thereof) shall continue to be conducted without regard
                    to such amendments.

    [[Page 110 STAT. 3009-626]]

                (2) Attorney general option to elect to apply new
            procedures.--In a case described in paragraph (1) in which an
            evidentiary hearing under section 236 or 242 and 242B of the
            Immigration and Nationality Act has not commenced as of the
            title III-A effective date, the Attorney General may elect to
            proceed under chapter 4 of title II of such Act (as amended by
            this subtitle). The Attorney General shall provide notice of
            such election to the alien involved not later than 30 days
            before the date any evidentiary hearing is commenced. If the
            Attorney General makes such election, the notice of hearing
            provided to the alien under section 235 or 242(a) of such Act
            shall be valid as if provided under section 239 of such Act (as
            amended by this subtitle) to confer jurisdiction on the
            immigration judge.
                (3) Attorney general option to terminate and reinitiate
            proceedings.--In the case described in paragraph (1), the
            Attorney General may elect to terminate proceedings in which
            there has not been a final administrative decision and to
            reinitiate proceedings under chapter 4 of title II the
            Immigration and Nationality Act (as amended by this subtitle).
            Any determination in the terminated proceeding shall not be
            binding in the reinitiated proceeding.
                (4) Transitional changes in judicial review.--In the case
            described in paragraph (1) in which a final order of exclusion
            or deportation is entered more than 30 days after the date of
            the enactment of this Act, notwithstanding any provision of
            section 106 of the Immigration and Nationality Act (as in effect
            as of the date of the enactment of this Act) to the contrary--
                        (A) in the case of judicial review of a final order
                    of exclusion, subsection (b) of such section shall not
                    apply and the action for judicial review shall be
                    governed by the provisions of subsections (a) and (c) of
                    such in the same manner as they apply to judicial review
                    of orders of deportation;
                        (B) a court may not order the taking of additional
                    evidence under section 2347(c) of title 28, United
                    States Code;
                        (C) the petition for judicial review must be filed
                    not later than 30 days after the date of the final order
                    of exclusion or deportation;
                        (D) the petition for review shall be filed with the
                    court of appeals for the judicial circuit in which the
                    administrative proceedings before the special inquiry
                    officer or immigration judge were completed;
                        (E) there shall be no appeal of any discretionary
                    decision under section 212(c), 212(h), 212(i), 244, or
                    245 of the Immigration and Nationality Act (as in effect
                    as of the date of the enactment of this Act);
                        (F) service of the petition for review shall not
                    stay the deportation of an alien pending the court's
                    decision on the petition, unless the court orders
                    otherwise; and
                        (G) there shall be no appeal permitted in the case
                    of an alien who is inadmissible or deportable by reason
                    of having committed a criminal offense covered in
                    section 212(a)(2) or section 241(a)(2)(A)(iii), (B),
                    (C), or (D) of the Immigration and Nationality Act (as
                    in effect as of the

    [[Page 110 STAT. 3009-627]]

                    date of the enactment of this Act), or any offense
                    covered by section 241(a)(2)(A)(ii) of such Act (as in
                    effect on such date) for which both predicate offenses
                    are, without regard to their date of commission,
                    otherwise covered by section 241(a)(2)(A)(i) of such Act
                    (as so in effect).
                (5) Transitional rule with regard to suspension of
            deportation.--Paragraphs (1) and (2) of section 240A(d) of the
            Immigration and Nationality Act (relating to continuous
            residence or physical presence) shall apply to notices to appear
            issued before, on, or after the date of the enactment of this
            Act.
                (6) Transition for certain family unity aliens.--The
            Attorney General may waive the application of section 212(a)(9)
            of the Immigration and Nationality Act, as inserted by section
            301(b)(1) of this division, in the case of an alien who is
            provided benefits under the provisions of section 301 of the
            Immigration Act of 1990 (relating to family unity).
                (7) Limitation on suspension of deportation.--The Attorney
            General may not suspend the deportation and adjust the status
            under section 244 of the Immigration and Nationality Act of more
            than 4,000 aliens in any fiscal year (beginning after the date
            of the enactment of this Act). The previous sentence shall apply
            regardless of when an alien applied for such suspension and
            adjustment.

        (d) Transitional References.--For purposes of carrying out the
    Immigration and Nationality Act, as amended by this subtitle--
                (1) any reference in section 212(a)(1)(A) of such Act to the
            term ``inadmissible'' is deemed to include a reference to the
            term ``excludable'', and
                (2) any reference in law to an order of removal shall be
            deemed to include a reference to an order of exclusion and
            deportation or an order of deportation.

        (e) Transition.--No period of time before the date of the enactment
    of this Act shall be included in the period of 1 year described in
    section 212(a)(6)(B)(i) of the Immigration and Nationality Act (as
    amended by section 301(c) of this division).

                      Subtitle B--Criminal Alien Provisions

    SEC. 321. AMENDED DEFINITION OF AGGRAVATED FELONY.

        (a) In General.--Section 101(a)(43) (8 U.S.C. 1101(a)(43)), as
    amended by section 441(e) of the Antiterrorism and Effective Death
    Penalty Act of 1996 (P.L. 104-132), is amended--
                (1) in subparagraph (A), by inserting ``, rape, or sexual
            abuse of a minor'' after ``murder'';
                (2) in subparagraph (D), by striking ``$100,000'' and
            inserting ``$10,000'';
                (3) in subparagraphs (F), (G), (N), and (P), by striking
            ``is at least 5 years'' each place it appears and inserting ``at
            least one year'';
                (4) in subparagraph (J), by striking ``sentence of 5 years'
            imprisonment'' and inserting ``sentence of one year
            imprisonment'';
                (5) in subparagraph (K)(ii), by inserting ``if committed''
            before ``for commercial advantage'';
                (6) in subparagraph (L)--

    [[Page 110 STAT. 3009-628]]

                        (A) by striking ``or'' at the end of clause (i),
                        (B) by inserting ``or'' at the end of clause (ii),
                    and
                        (C) by adding at the end the following new clause:
                              ``(iii) section 601 of the National Security
                          Act of 1947 (relating to protecting the identity
                          of undercover agents);'';
                (7) in subparagraph (M), by striking ``$200,000'' each place
            it appears and inserting ``$10,000'';
                (8) in subparagraph (N), by striking ``for which the term''
            and all that follows and inserting the following: ``, except in
            the case of a first offense for which the alien has
            affirmatively shown that the alien committed the offense for the
            purpose of assisting, abetting, or aiding only the alien's
            spouse, child, or parent (and no other individual) to violate a
            provision of this Act'';
                (9) in subparagraph (P), by striking ``18 months'' and
            inserting ``12 months, except in the case of a first offense for
            which the alien has affirmatively shown that the alien committed
            the offense for the purpose of assisting, abetting, or aiding
            only the alien's spouse, child, or parent (and no other
            individual) to violate a provision of this Act'';
                (10) in subparagraph (R), by striking ``for which a sentence
            of 5 years' imprisonment or more may be imposed'' and inserting
            ``for which the term of imprisonment is at least one year''; and
                (11) in subparagraph (S), by striking ``for which a sentence
            of 5 years' imprisonment or more may be imposed'' and inserting
            ``for which the term of imprisonment is at least one year''.

        (b) Effective Date of Definition.--Section 101(a)(43) (8 U.S.C.
    1101(a)(43)) is amended by adding at the end the following new sentence:
    ``Notwithstanding any other provision of law (including any effective
    date), the term applies regardless of whether the conviction was entered
    before, on, or after the date of enactment of this paragraph.''.
        (c) <<NOTE: 8 USC 1101 note.>>  Effective Date.--The amendments made
    by this section shall apply to actions taken on or after the date of the
    enactment of this Act, regardless of when the conviction occurred, and
    shall apply under section 276(b) of the Immigration and Nationality Act
    only to violations of section 276(a) of such Act occurring on or after
    such date.

    SEC. 322. DEFINITION OF CONVICTION AND TERM OF IMPRISONMENT.

        (a) Definition.--
                (1) In general.--Section 101(a) (8 U.S.C. 1101(a)) is
            amended by adding at the end the following new paragraph:

        ``(48)(A) The term `conviction' means, with respect to an alien, a
    formal judgment of guilt of the alien entered by a court or, if
    adjudication of guilt has been withheld, where--
                ``(i) a judge or jury has found the alien guilty or the
            alien has entered a plea of guilty or nolo contendere or has
            admitted sufficient facts to warrant a finding of guilt, and
                ``(ii) the judge has ordered some form of punishment,
            penalty, or restraint on the alien's liberty to be imposed.

        ``(B) Any reference to a term of imprisonment or a sentence with
    respect to an offense is deemed to include the period of incarceration
    or confinement ordered by a court of law regardless of

    [[Page 110 STAT. 3009-629]]

    any suspension of the imposition or execution of that imprisonment or
    sentence in whole or in part.''.
                (2) Conforming amendments.--
                        (A) Section 101(a)(43) (8 U.S.C. 1101(a)(43)) is
                    amended by striking ``imposed (regardless of any
                    suspension of imprisonment)'' each place it appears in
                    subparagraphs (F), (G), (N), and (P).
                        (B) Section 212(a)(2)(B) (8 U.S.C. 1182(a)(2)(B)) is
                    amended by striking ``actually imposed''.

        (b) Reference to Proof Provisions.--For provisions relating to proof
    of convictions, see subparagraphs (B) and (C) of section 240(c)(3) of
    the Immigration and Nationality Act, as inserted by section 304(a)(3) of
    this division.
        (c) <<NOTE: 8 USC 1101 note.>>  Effective Date.--The amendments made
    by subsection (a) shall apply to convictions and sentences entered
    before, on, or after the date of the enactment of this Act.
    Subparagraphs (B) and (C) of section 240(c)(3) of the Immigration and
    Nationality Act, as inserted by section 304(a)(3) of this division,
    shall apply to proving such convictions.

    SEC. 323. AUTHORIZING REGISTRATION OF ALIENS ON CRIMINAL PROBATION OR
                CRIMINAL PAROLE.

        Section 263(a) (8 U.S.C. 1303(a)) is amended by striking ``and (5)''
    and inserting ``(5) aliens who are or have been on criminal probation or
    criminal parole within the United States, and (6)''.

    SEC. 324. PENALTY FOR REENTRY OF DEPORTED ALIENS.

        (a) In General.--Section 276(a)(1) (8 U.S.C. 1326(a)(1)) is amended
    to read as follows:
                ``(1) has been arrested and deported, has been excluded and
            deported, or has departed the United States while an order of
            exclusion or deportation is outstanding, and thereafter''.

        (b) Treatment of Stipulations.--The last sentence of section 276(b)
    (8 U.S.C. 1326(b)) is amended by inserting ``(or not during)'' after
    ``during''.
        (c) <<NOTE: 8 USC 1326 note.>>  Effective Date.--The amendment made
    by subsection (a) shall apply to departures that occurred before, on, or
    after the date of the enactment of this Act, but only with respect to
    entries (and attempted entries) occurring on or after such date.

    SEC. 325. CHANGE IN FILING REQUIREMENT.

        Section 2424 of title 18, United States Code, is amended--
                (1) in the first undesignated paragraph of subsection (a)--
                        (A) by striking ``alien'' each place it appears;
                        (B) by inserting after ``individual'' the first
                    place it appears the following: ``, knowing or in
                    reckless disregard of the fact that the individual is an
                    alien''; and
                        (C) by striking ``within three years after that
                    individual has entered the United States from any
                    country, party to the arrangement adopted July 25, 1902,
                    for the suppression of the white-slave traffic'';
                (2) in the second undesignated paragraph of subsection (a)--
                        (A) by striking ``thirty'' and inserting ``five
                    business''; and
                        (B) by striking ``within three years after that
                    individual has entered the United States from any
                    country, party

    [[Page 110 STAT. 3009-630]]

                    to the said arrangement for the suppression of the
                    white-slave traffic,''; and
                (3) in the text following the third undesignated paragraph
            of subsection (a), by striking ``two'' and inserting ``10''.

    SEC. 326. CRIMINAL ALIEN IDENTIFICATION SYSTEM.

        Subsection (a) of section 130002 of the Violent Crime Control and
    Law Enforcement Act of <<NOTE: 8 USC 1252 note.>>  1994 (Public Law 103-
    322), as amended by section 432 of Public Law 104-132, is amended to
    read as follows:

        ``(a) Operation and Purpose.--The Commissioner of Immigration and
    Naturalization shall, under the authority of section 242(a)(3)(A) of the
    Immigration and Nationality Act operate a criminal alien identification
    system. The criminal alien identification system shall be used to assist
    Federal, State, and local law enforcement agencies in identifying and
    locating aliens who may be subject to removal by reason of their
    conviction of aggravated felonies, subject to prosecution under section
    275 of such Act, not lawfully present in the United States, or otherwise
    removable. Such system shall include providing for recording of
    fingerprint records of aliens who have been previously arrested and
    removed into appropriate automated fingerprint identification
    systems.''.

    SEC. 327. APPROPRIATIONS FOR CRIMINAL ALIEN TRACKING CENTER.

        Section 130002(b) of the Violent Crime Control and Law Enforcement
    Act of 1994 (8 U.S.C. 1252 note) is amended--
                (1) by inserting ``and'' after ``1996;'', and
                (2) by striking paragraph (2) and all that follows through
            the period at the end and inserting the following:
                ``(2) $5,000,000 for each of fiscal years 1997 through
            2001.''.

    SEC. 328. PROVISIONS RELATING TO STATE CRIMINAL ALIEN ASSISTANCE
                PROGRAM.

        (a) Modification of Authority.--
                (1) In general.--Section 241(i), as redesignated by section
            306(a)(1) <<NOTE: 8 USC 1231.>> of this division, is amended--
                        (A) in paragraph (3)(A), by striking ``felony and
                    sentenced to a term of imprisonment'' and inserting
                    ``felony or two or more misdemeanors'', and
                        (B) by adding at the end the following new
                    paragraph:
                ``(6) To the extent of available appropriations, funds
            otherwise made available under this section with respect to a
            State (or political subdivision, including a municipality) for
            incarceration of an undocumented criminal alien may, at the
            discretion of the recipient of the funds, be used for the costs
            of imprisonment of such alien in a State, local, or municipal
            prison or jail.''.
                (2) <<NOTE: 8 USC 1231 note.>>  Effective date.--The
            amendment made by paragraph (1) shall apply beginning with
            fiscal year 1997.

        (b) Sense of the Congress With Respect to Program.--
                (1) Findings.--The Congress finds as follows:
                        (A) Of the $130,000,000 appropriated in fiscal year
                    1995 for the State Criminal Alien Assistance Program,
                    the Department of Justice disbursed the first
                    $43,000,000 to States on October 6, 1994, 32 days before
                    the 1994 general election, and then failed to disburse
                    the remaining $87,000,000 until January 31, 1996, 123
                    days after the end of fiscal year 1995.

    [[Page 110 STAT. 3009-631]]

                        (B) While H.R. 2880, the continuing appropriation
                    measure funding certain operations of the Federal
                    Government from January 26, 1996 to March 15, 1996,
                    included $66,000,000 to reimburse States for the cost of
                    incarcerating documented illegal immigrant felons, the
                    Department of Justice failed to disburse any of the
                    funds to the States during the period of the continuing
                    appropriation.
                (2) Sense of the congress.--It is the sense of the Congress
            that--
                        (A) the Department of Justice was disturbingly slow
                    in disbursing fiscal year 1995 funds under the State
                    Criminal Alien Assistance Program to States after the
                    initial grants were released just prior to the 1994
                    election; and
                        (B) the Attorney General should make it a high
                    priority to expedite the disbursement of Federal funds
                    intended to reimburse States for the cost of
                    incarcerating illegal immigrants, aiming for all State
                    Criminal Alien Assistance Program funds to be disbursed
                    during the fiscal year for which they are appropriated.

    SEC. 329. DEMONSTRATION PROJECT FOR IDENTIFICATION OF ILLEGAL ALIENS IN
                INCARCERATION FACILITY OF ANAHEIM, CALIFORNIA.

        (a) Authority.--The Attorney General shall conduct a project
    demonstrating the feasibility of identifying, from among the individuals
    who are incarcerated in local governmental prison facilities prior to
    arraignment on criminal charges, those individuals who are aliens
    unlawfully present in the United States.
        (b) Description of Project.--The project authorized by subsection
    (a) shall include--
                (1) the detail to incarceration facilities within the city
            of Anaheim, California and the county of Ventura, California, of
            an employee of the Immigration and Naturalization Service who
            has expertise in the identification of aliens unlawfully in the
            United States, and
                (2) provision of funds sufficient to provide for--
                        (A) access for such employee to records of the
                    Service necessary to identify such aliens, and
                        (B) in the case of an individual identified as such
                    an alien, pre-arraignment reporting to the court
                    regarding the Service's intention to remove the alien
                    from the United States.

        (c) Termination.--The authority under this section shall cease to be
    effective 6 months after the date of the enactment of this Act.

    SEC. 330. <<NOTE: 18 USC 4100 note.>>  PRISONER TRANSFER TREATIES.

        (a) Negotiations With Other Countries.--(1) Congress advises the
    President to begin to negotiate and renegotiate, not later than 90 days
    after the date of enactment of this Act, bilateral prisoner transfer
    treaties, providing for the incarceration, in the country of the alien's
    nationality, of any alien who--
                (A) is a national of a country that is party to such a
            treaty; and
                (B) has been convicted of a criminal offense under Federal
            or State law and who--
                        (i) is not in lawful immigration status in the
                    United States, or

    [[Page 110 STAT. 3009-632]]

                        (ii) on the basis of conviction for a criminal
                    offense under Federal or State law, or on any other
                    basis, is subject to deportation or removal under the
                    Immigration and Nationality Act,

    for the duration of the prison term to which the alien was sentenced for
    the offense referred to in subparagraph (B). Any such agreement may
    provide for the release of such alien pursuant to parole procedures of
    that country.
        (2) In entering into negotiations under paragraph (1), the President
    may consider providing for appropriate compensation, subject to the
    availability of appropriations, in cases where the United States is able
    to independently verify the adequacy of the sites where aliens will be
    imprisoned and the length of time the alien is actually incarcerated in
    the foreign country under such a treaty.
        (b) Sense of Congress.--It is the sense of the Congress that--
                (1) the focus of negotiations for such agreements should
            be--
                        (A) to expedite the transfer of aliens unlawfully in
                    the United States who are (or are about to be)
                    incarcerated in United States prisons,
                        (B) to ensure that a transferred prisoner serves the
                    balance of the sentence imposed by the United States
                    courts,
                        (C) to eliminate any requirement of prisoner consent
                    to such a transfer, and
                        (D) to allow the Federal Government or the States to
                    keep their original prison sentences in force so that
                    transferred prisoners who return to the United States
                    prior to the completion of their original United States
                    sentences can be returned to custody for the balance of
                    their prisons sentences;
                (2) the Secretary of State should give priority to
            concluding an agreement with any country for which the President
            determines that the number of aliens described in subsection (a)
            who are nationals of that country in the United States
            represents a significant percentage of all such aliens in the
            United States; and
                (3) no new treaty providing for the transfer of aliens from
            Federal, State, or local incarceration facilities to a foreign
            incarceration facility should permit the alien to refuse the
            transfer.

        (c) Prisoner Consent.--Notwithstanding any other provision of law,
    except as required by treaty, the transfer of an alien from a Federal,
    State, or local incarceration facility under an agreement of the type
    referred to in subsection (a) shall not require consent of the alien.
        (d) Annual Report.--Not later than 90 days after the date of the
    enactment of this Act, and annually thereafter, the Attorney General
    shall submit a report to the Committees on the Judiciary of the House of
    Representatives and of the Senate stating whether each prisoner transfer
    treaty to which the United States is a party has been effective in the
    preceding 12 months in bringing about the return of deportable
    incarcerated aliens to the country of which they are nationals and in
    ensuring that they serve the balance of their sentences.
        (e) Training Foreign Law Enforcement Personnel.--(1) Subject to
    paragraph (2), the President shall direct the Border Patrol Academy and
    the Customs Service Academy to enroll for

    [[Page 110 STAT. 3009-633]]

    training an appropriate number of foreign law enforcement personnel, and
    shall make appointments of foreign law enforcement personnel to such
    academies, as necessary to further the following United States law
    enforcement goals:
                (A) Preventing of drug smuggling and other cross-border
            criminal activity.
                (B) Preventing illegal immigration.
                (C) Preventing the illegal entry of goods into the United
            States (including goods the sale of which is illegal in the
            United States, the entry of which would cause a quota to be
            exceeded, or the appropriate duty or tariff for which has not
            been paid).

        (2) The appointments described in paragraph (1) shall be made only
    to the extent there is capacity in such academies beyond what is
    required to train United States citizens needed in the Border Patrol and
    Customs Service, and only of personnel from a country with which the
    prisoner transfer treaty has been stated to be effective in the most
    recent report referred to in subsection (d).
        (f) Authorization of Appropriations.--There are authorized to be
    appropriated such sums as may be necessary to carry out this section.

    SEC. 331. PRISONER TRANSFER TREATIES STUDY.

        (a) Report to Congress.--Not later than 180 days after the date of
    the enactment of this Act, the Secretary of State and the Attorney
    General shall submit to the Committees on the Judiciary of the House of
    Representatives and of the Senate a report that describes the use and
    effectiveness of the prisoner transfer treaties with the three countries
    with the greatest number of their nationals incarcerated in the United
    States in removing from the United States such incarcerated nationals.
        (b) Use of Treaty.--The report under subsection (a) shall include--
                (1) the number of aliens convicted of a criminal offense in
            the United States since November 30, 1977, who would have been
            or are eligible for transfer pursuant to the treaties;
                (2) the number of aliens described in paragraph (1) who have
            been transferred pursuant to the treaties;
                (3) the number of aliens described in paragraph (2) who have
            been incarcerated in full compliance with the treaties;
                (4) the number of aliens who are incarcerated in a penal
            institution in the United States who are eligible for transfer
            pursuant to the treaties; and
                (5) the number of aliens described in paragraph (4) who are
            incarcerated in Federal, State, and local penal institutions in
            the United States.

        (c) Recommendations.--The report under subsection (a) shall include
    the recommendations of the Secretary of State and the Attorney General
    to increase the effectiveness and use of, and full compliance with, the
    treaties. In considering the recommendations under this subsection, the
    Secretary and the Attorney General shall consult with such State and
    local officials in areas disproportionately impacted by aliens convicted
    of criminal offenses as the Secretary and the Attorney General consider
    appropriate. Such recommendations shall address--

    [[Page 110 STAT. 3009-634]]

                (1) changes in Federal laws, regulations, and policies
            affecting the identification, prosecution, and deportation of
            aliens who have committed criminal offenses in the United
            States;
                (2) changes in State and local laws, regulations, and
            policies affecting the identification, prosecution, and
            deportation of aliens who have committed a criminal offense in
            the United States;
                (3) changes in the treaties that may be necessary to
            increase the number of aliens convicted of criminal offenses who
            may be transferred pursuant to the treaties;
                (4) methods for preventing the unlawful reentry into the
            United States of aliens who have been convicted of criminal
            offenses in the United States and transferred pursuant to the
            treaties;
                (5) any recommendations by appropriate officials of the
            appropriate government agencies of such countries regarding
            programs to achieve the goals of, and ensure full compliance
            with, the treaties;
                (6) whether the recommendations under this subsection
            require the renegotiation of the treaties; and
                (7) the additional funds required to implement each
            recommendation under this subsection.

    SEC. 332. <<NOTE: 8 USC 1366.>>  ANNUAL REPORT ON CRIMINAL ALIENS.

        Not later than 12 months after the date of the enactment of this
    Act, and annually thereafter, the Attorney General shall submit to the
    Committees on the Judiciary of the House of Representatives and of the
    Senate a report detailing--
                (1) the number of illegal aliens incarcerated in Federal and
            State prisons for having committed felonies, stating the number
            incarcerated for each type of offense;
                (2) the number of illegal aliens convicted of felonies in
            any Federal or State court, but not sentenced to incarceration,
            in the year before the report was submitted, stating the number
            convicted for each type of offense;
                (3) programs and plans underway in the Department of Justice
            to ensure the prompt removal from the United States of criminal
            aliens subject to removal; and
                (4) methods for identifying and preventing the unlawful
            reentry of aliens who have been convicted of criminal offenses
            in the United States and removed from the United States.

    SEC. 333. <<NOTE: 28 USC 994 note.>>  PENALTIES FOR CONSPIRING WITH OR
                ASSISTING AN ALIEN TO COMMIT AN OFFENSE UNDER THE CONTROLLED
                SUBSTANCES IMPORT AND EXPORT ACT.

        (a) Review of Guidelines.--Not later than 6 months after the date of
    the enactment of this Act, the United States Sentencing Commission shall
    conduct a review of the guidelines applicable to an offender who
    conspires with, or aids or abets, a person who is not a citizen or
    national of the United States in committing any offense under section
    1010 of the Controlled Substance Import and Export Act (21 U.S.C. 960).
        (b) Revision of Guidelines.--Following such review, pursuant to
    section 994(p) of title 28, United States Code, the Commission shall
    promulgate sentencing guidelines or amend existing sentencing guidelines
    to ensure an appropriately stringent sentence for such offenders.

    [[Page 110 STAT. 3009-635]]

    SEC. 334. <<NOTE: 28 USC 994 note.>>  ENHANCED PENALTIES FOR FAILURE TO
                DEPART, ILLEGAL REENTRY, AND PASSPORT AND VISA FRAUD.

        (a) Failing to Depart.--The United States Sentencing Commission
    shall promptly promulgate, pursuant to section 994 of title 28, United
    States Code, amendments to the sentencing guidelines to make appropriate
    increases in the base offense level for offenses under section 242(e)
    and 276(b) of the Immigration and Nationality Act (8 U.S.C. 1252(e) and
    1326(b)) to reflect the amendments made by section 130001 of the Violent
    Crime Control and Law Enforcement Act of 1994.
        (b) Passport and Visa Offenses.--The United States Sentencing
    Commission shall promptly promulgate, pursuant to section 994 of title
    28, United States Code, amendments to the sentencing guidelines to make
    appropriate increases in the base offense level for offenses under
    chapter 75 of title 18, United States Code to reflect the amendments
    made by section 130009 of the Violent Crime Control and Law Enforcement
    Act of 1994.

          Subtitle C--Revision of Grounds for Exclusion and Deportation

    SEC. 341. PROOF OF VACCINATION REQUIREMENT FOR IMMIGRANTS.

        (a) In General.--Section 212(a)(1)(A) (8 U.S.C. 1182(a)(1)(A)) is
    amended--
                (1) by redesignating clauses (ii) and (iii) as clauses (iii)
            and (iv), respectively, and
                (2) by inserting after clause (i) the following new clause:
                              ``(ii) who seeks admission as an immigrant, or
                          who seeks adjustment of status to the status of an
                          alien lawfully admitted for permanent residence,
                          and who has failed to present documentation of
                          having received vaccination against vaccine-
                          preventable diseases, which shall include at least
                          the following diseases: mumps, measles, rubella,
                          polio, tetanus and diphtheria toxoids, pertussis,
                          influenza type B and hepatitis B, and any other
                          vaccinations against vaccine-preventable diseases
                          recommended by the Advisory Committee for
                          Immunization Practices,''.

        (b) Waiver.--Section 212(g) (8 U.S.C. 1182(g)) is amended by
    striking ``, or'' at the end of paragraph (1) and all that follows and
    inserting a semicolon and the following:
            ``in accordance with such terms, conditions, and controls, if
            any, including the giving of bond, as the Attorney General, in
            the discretion of the Attorney General after consultation with
            the Secretary of Health and Human Services, may by regulation
            prescribe;
                ``(2) subsection (a)(1)(A)(ii) in the case of any alien--
                        ``(A) who receives vaccination against the vaccine-
                    preventable disease or diseases for which the alien has
                    failed to present documentation of previous vaccination,
                        ``(B) for whom a civil surgeon, medical officer, or
                    panel physician (as those terms are defined by section
                    34.2 of title 42 of the Code of Federal Regulations)
                    certifies, according to such regulations as the
                    Secretary of Health and

    [[Page 110 STAT. 3009-636]]

                    Human Services may prescribe, that such vaccination
                    would not be medically appropriate, or
                        ``(C) under such circumstances as the Attorney
                    General provides by regulation, with respect to whom the
                    requirement of such a vaccination would be contrary to
                    the alien's religious beliefs or moral convictions; or
                ``(3) subsection (a)(1)(A)(iii) in the case of any alien, in
            accordance with such terms, conditions, and controls, if any,
            including the giving of bond, as the Attorney General, in the
            discretion of the Attorney General after consultation with the
            Secretary of Health and Human Services, may by regulation
            prescribe.''.

        (c) <<NOTE: 8 USC 1182 note.>>  Effective Date.--The amendments made
    by this section shall apply with respect to applications for immigrant
    visas or for adjustment of status filed after September 30, 1996.

    SEC. 342. INCITEMENT OF TERRORIST ACTIVITY AND PROVISION OF FALSE
                DOCUMENTATION TO TERRORISTS AS A BASIS FOR EXCLUSION FROM
                THE UNITED STATES.

        (a) In General.--Section 212(a)(3)(B) (8 U.S.C. 1182(a)(3)(B)) is
    amended--
                (1) by redesignating subclauses (III) and (IV) of clause (i)
            as subclauses (IV) and (V), respectively;
                (2) by inserting after subclause (II) of clause (i) the
            following new subclause:
                                        ``(III) has, under circumstances
                                    indicating an intention to cause death
                                    or serious bodily harm, incited
                                    terrorist activity,''; and
                (3) in clause (iii)(III), by inserting ``documentation or''
            before ``identification'';

        (b) <<NOTE: 8 USC 1182 note.>>  Effective Date.--The amendments made
    by subsection (a) shall take effect on the date of the enactment of this
    Act and shall apply to incitement regardless of when it occurs.

    SEC. 343. CERTIFICATION REQUIREMENTS FOR FOREIGN HEALTH-CARE WORKERS.

        Section 212(a)(5) (8 U.S.C. 1182(a)(5)) is amended--
                (1) by redesignating subparagraph (C) as subparagraph (D),
            and
                (2) by inserting after subparagraph (B) the following new
            subparagraph:
                        ``(C) Uncertified foreign health-care workers.--Any
                    alien who seeks to enter the United States for the
                    purpose of performing labor as a health-care worker,
                    other than a physician, is excludable unless the alien
                    presents to the consular officer, or, in the case of an
                    adjustment of status, the Attorney General, a
                    certificate from the Commission on Graduates of Foreign
                    Nursing Schools, or a certificate from an equivalent
                    independent credentialing organization approved by the
                    Attorney General in consultation with the Secretary of
                    Health and Human Services, verifying that--
                              ``(i) the alien's education, training,
                          license, and experience--
                                        ``(I) meet all applicable statutory
                                    and regulatory requirements for entry
                                    into the United States under the
                                    classification specified in the
                                    application;

    [[Page 110 STAT. 3009-637]]

                                        ``(II) are comparable with that
                                    required for an American health-care
                                    worker of the same type; and
                                        ``(III) are authentic and, in the
                                    case of a license, unencumbered;
                              ``(ii) the alien has the level of competence
                          in oral and written English considered by the
                          Secretary of Health and Human Services, in
                          consultation with the Secretary of Education, to
                          be appropriate for health care work of the kind in
                          which the alien will be engaged, as shown by an
                          appropriate score on one or more nationally
                          recognized, commercially available, standardized
                          assessments of the applicant's ability to speak
                          and write; and
                              ``(iii) if a majority of States licensing the
                          profession in which the alien intends to work
                          recognize a test predicting the success on the
                          profession's licensing or certification
                          examination, the alien has passed such a test or
                          has passed such an examination.
                    For purposes of clause (ii), determination of the
                    standardized tests required and of the minimum scores
                    that are appropriate are within the sole discretion of
                    the Secretary of Health and Human Services and are not
                    subject to further administrative or judicial review.''.

    SEC. 344. REMOVAL OF ALIENS FALSELY CLAIMING UNITED STATES CITIZENSHIP.

        (a) Exclusion of Aliens Who Have Falsely Claimed United States
    Citizenship.--Section 212(a)(6)(C) (8 U.S.C. 1182(a)(6)(C)) is amended--
                (1) by redesignating clause (ii) as clause (iii), and
                (2) by inserting after clause (i) the following new clause:
                              ``(ii) Falsely claiming citizenship.--Any
                          alien who falsely represents, or has falsely
                          represented, himself or herself to be a citizen of
                          the United States for any purpose or benefit under
                          this Act (including section 274A) or any other
                          Federal or State law is excludable.''.

        (b) Deportation of Aliens Who Have Falsely Claimed United States
    Citizenship.--Section 241(a)(3) (8 U.S.C. 1251(a)(3)) is amended by
    adding at the end the following new subparagraph:
                        ``(D) Falsely claiming citizenship.--Any alien who
                    falsely represents, or has falsely represented, himself
                    to be a citizen of the United States for any purpose or
                    benefit under this Act (including section 274A) or any
                    Federal or State law is deportable.''.

        (c) <<NOTE: 8 USC 1182 note.>>  Effective Date.--The amendments made
    by this section shall apply to representations made on or after the date
    of the enactment of this Act.

    SEC. 345. WAIVER OF EXCLUSION AND DEPORTATION GROUND FOR CERTAIN SECTION
                274C VIOLATORS.

        (a) Exclusion Grounds.--Section 212 (8 U.S.C. 1182) is amended--
                (1) by amending subparagraph (F) of subsection (a)(6) to
            read as follows:
                        ``(F) Subject of civil penalty.--

    [[Page 110 STAT. 3009-638]]

                              ``(i) In general.--An alien who is the subject
                          of a final order for violation of section 274C is
                          inadmissible.
                              ``(ii) Waiver authorized.--For provision
                          authorizing waiver of clause (i), see subsection
                          (d)(12).''; and
                (2) by adding at the end of subsection (d) the following new
            paragraph:

        ``(12) The Attorney General may, in the discretion of the Attorney
    General for humanitarian purposes or to assure family unity, waive
    application of clause (i) of subsection (a)(6)(F)--
                ``(A) in the case of an alien lawfully admitted for
            permanent residence who temporarily proceeded abroad voluntarily
            and not under an order of deportation or removal and who is
            otherwise admissible to the United States as a returning
            resident under section 211(b), and
                ``(B) in the case of an alien seeking admission or
            adjustment of status under section 201(b)(2)(A) or under section
            203(a),

    if no previous civil money penalty was imposed against the alien under
    section 274C and the offense was committed solely to assist, aid, or
    support the alien's spouse or child (and not another individual). No
    court shall have jurisdiction to review a decision of the Attorney
    General to grant or deny a waiver under this paragraph.''.
        (b) Ground of Deportation.--Subparagraph (C) of section 241(a)(3) (8
    U.S.C. 1251(a)(3)), before redesignation by section 305(a)(2) of this
    division, is amended to read as follows:
                        ``(C) Document fraud.--
                              ``(i) In general.--An alien who is the subject
                          of a final order for violation of section 274C is
                          deportable.
                              ``(ii) Waiver authorized.--The Attorney
                          General may waive clause (i) in the case of an
                          alien lawfully admitted for permanent residence if
                          no previous civil money penalty was imposed
                          against the alien under section 274C and the
                          offense was incurred solely to assist, aid, or
                          support the alien's spouse or child (and no other
                          individual). No court shall have jurisdiction to
                          review a decision of the Attorney General to grant
                          or deny a waiver under this clause.''.

    SEC. 346. INADMISSIBILITY OF CERTAIN STUDENT VISA ABUSERS.

        (a) In General.--Section 212(a)(6) (8 U.S.C. 1182(a)(6)) is amended
    by adding at the end the following new subparagraph:
                        ``(G) Student visa abusers.--An alien who obtains
                    the status of a nonimmigrant under section
                    101(a)(15)(F)(i) and who violates a term or condition of
                    such status under section 214(l) is excludable until the
                    alien has been outside the United States for a
                    continuous period of 5 years after the date of the
                    violation.''.

        (b) <<NOTE: 8 USC 1182 note.>>  Effective Date.--The amendment made
    by subsection (a) shall apply to aliens who obtain the status of a
    nonimmigrant under section 101(a)(15)(F) of the Immigration and
    Nationality Act after the end of the 60-day period beginning on the date
    of the enactment of this Act, including aliens whose status as such a
    nonimmigrant is extended after the end of such period.

    SEC. 347. REMOVAL OF ALIENS WHO HAVE UNLAWFULLY VOTED.

        (a) Exclusion of Aliens Who Have Unlawfully Voted.--Section
    212(a)(10) (8 U.S.C. 1182(a)(10)), as redesignated by section

    [[Page 110 STAT. 3009-639]]

    301(b) of this division, is amended by adding at the end the following
    new subparagraph:
                        ``(D) Unlawful voters.--Any alien who has voted in
                    violation of any Federal, State, or local constitutional
                    provision, statute, ordinance, or regulation is
                    excludable.''.

        (b) Deportation of Aliens Who Have Unlawfully Voted.--Section 241(a)
    (8 U.S.C. 1251(a)), before redesignation by section 305(a)(2) of this
    division, is amended by adding at the end the following new paragraph:
                ``(6) Unlawful voters.--Any alien who has voted in violation
            of any Federal, State, or local constitutional provision,
            statute, ordinance, or regulation is deportable.''.

        (c) <<NOTE: 8 USC 1182 note.>>  Effective Date.--The amendments made
    by this section shall apply to voting occurring before, on, or after the
    date of the enactment of this Act.

    SEC. 348. WAIVERS FOR IMMIGRANTS CONVICTED OF CRIMES.

        (a) In General.--Section 212(h) (8 U.S.C. 1182(h)) is amended by
    adding at the end the following: ``No waiver shall be granted under this
    subsection in the case of an alien who has previously been admitted to
    the United States as an alien
    lawfully admitted for permanent residence if either since the date of
    such admission the alien has been convicted of an aggravated felony or
    the alien has not lawfully resided continuously in the United States for
    a period of not less than 7 years immediately preceding the date of
    initiation of proceedings to remove the alien from the United States. No
    court shall have jurisdiction to review a decision of the Attorney
    General to grant or deny a waiver under this subsection.''.

        (b) <<NOTE: 8 USC 1182 note.>>  Effective Date.--The amendment made
    by subsection (a) shall be effective on the date of the enactment of
    this Act and shall apply in the case of any alien who is in exclusion or
    deportation proceedings as of such date unless a final administrative
    order in such proceedings has been entered as of such date.

    SEC. 349. WAIVER OF MISREPRESENTATION GROUND OF INADMISSIBILITY FOR
                CERTAIN ALIEN.

        Subsection (i) of section 212 (8 U.S.C. 1182) is amended to read as
    follows:
        ``(i)(1) The Attorney General may, in the discretion of the Attorney
    General, waive the application of clause (i) of subsection (a)(6)(C) in
    the case of an immigrant who is the spouse, son, or daughter of a United
    States citizen or of an alien lawfully admitted for permanent residence
    if it is established to the satisfaction of the Attorney General that
    the refusal of admission to the United States of such immigrant alien
    would result in extreme hardship to the citizen or lawfully resident
    spouse or parent of such an alien.
        ``(2) No court shall have jurisdiction to review a decision or
    action of the Attorney General regarding a waiver under paragraph
    (1).''.

    SEC. 350. OFFENSES OF DOMESTIC VIOLENCE AND STALKING AS GROUND FOR
                DEPORTATION.

        (a) In General.--Section 241(a)(2) (8 U.S.C. 1251(a)(2)) is amended
    by adding at the end the following:

    [[Page 110 STAT. 3009-640]]

                        ``(E) Crimes of domestic violence, stalking, or
                    violation of protection order, crimes against children
                    and .--
                              ``(i) Domestic violence, stalking, and child
                          abuse.--Any alien who at any time after entry is
                          convicted of a crime of domestic violence, a crime
                          of stalking, or a crime of child abuse, child
                          neglect, or child abandonment is deportable. For
                          purposes of this clause, the term `crime of
                          domestic violence' means any crime of violence (as
                          defined in section 16 of title 18, United States
                          Code) against a person committed by a current or
                          former spouse of the person, by an individual with
                          whom the person shares a child in common, by an
                          individual who is cohabiting with or has cohabited
                          with the person as a spouse, by an individual
                          similarly situated to a spouse of the person under
                          the domestic or family violence laws of the
                          jurisdiction where the offense occurs, or by any
                          other individual against a person who is protected
                          from that individual's acts under the domestic or
                          family violence laws of the United States or any
                          State, Indian tribal government, or unit of local
                          government.
                              ``(ii) Violators of protection orders.--Any
                          alien who at any time after entry is enjoined
                          under a protection order issued by a court and
                          whom the court determines has engaged in conduct
                          that violates the portion of a protection order
                          that involves protection against credible threats
                          of violence, repeated harassment, or bodily injury
                          to the person or persons for whom the protection
                          order was issued is deportable. For purposes of
                          this clause, the term `protection order' means any
                          injunction issued for the purpose of preventing
                          violent or threatening acts of domestic violence,
                          including temporary or final orders issued by
                          civil or criminal courts (other than support or
                          child custody orders or provisions) whether
                          obtained by filing an independent action or as a
                          pendente lite order in another proceeding.''.

        (b) <<NOTE: 8 USC 1227 note.>>  Effective Date.--The amendment made
    by subsection (a) shall apply to convictions, or violations of court
    orders, occurring after the date of the enactment of this Act.

    SEC. 351. CLARIFICATION OF DATE AS OF WHICH RELATIONSHIP REQUIRED FOR
                WAIVER FROM EXCLUSION OR DEPORTATION FOR SMUGGLING.

        (a) Exclusion.--Section 212(d)(11) (8 U.S.C. 1182(d)(11)) is amended
    by inserting ``an individual who at the time of such action was'' after
    ``aided only''.
        (b) Deportation.--Section 241(a)(1)(E)(iii) (8 U.S.C.
    1251(a)(1)(E)(iii)) is amended by inserting ``an individual who at the
    time of the offense was'' after ``aided only''.
        (c) <<NOTE: 8 USC 1182 note.>>  Effective Date.--The amendments made
    by this section shall apply to applications for waivers filed before,
    on, or after the date of the enactment of this Act, but shall not apply
    to such an application for which a final determination has been made as
    of the date of the enactment of this Act.

    [[Page 110 STAT. 3009-641]]

    SEC. 352. EXCLUSION OF FORMER CITIZENS WHO RENOUNCED CITIZENSHIP TO
                AVOID UNITED STATES TAXATION.

        (a) In General.--Section 212(a)(10) (8 U.S.C. 1182(a)(10)), as
    redesignated by section 301(b) of this division and as amended by
    section 347(a) of this division, is amended by adding at the end the
    following:
                        ``(E) Former citizens who renounced citizenship to
                    avoid taxation.--Any alien who is a former citizen of
                    the United States who officially renounces United States
                    citizenship and who is determined by the Attorney
                    General to have renounced United States citizenship for
                    the purpose of avoiding taxation by the United States is
                    excludable.''.

        (b) <<NOTE: 8 USC 1182 note.>>  Effective Date.--The amendment made
    by subsection (a) shall apply to individuals who renounce United States
    citizenship on and after the date of the enactment of this Act.

    SEC. 353. REFERENCES TO CHANGES ELSEWHERE IN DIVISION.

        (a) Deportation for High Speed Flight.--For provision making high
    speed flight from an immigration checkpoint subject to deportation, see
    section 108(c) of this division.
        (b) Inadmissibility of Aliens Previously Removed and Unlawfully
    Present.--For provision making aliens previously removed and unlawfully
    present in the United States inadmissible, see section 301(b) of this
    division.
        (c) Inadmissibility of Illegal Entrants.--For provision revising the
    ground of inadmissibility for illegal entrants and immigration
    violators, see section 301(c) of this division.
        (d) Deportation for Visa Violators.--For provision revising the
    ground of deportation for illegal entrants, see section 301(d) of this
    division.
        (e) Labor Certifications for Professional Athletes.--For provision
    providing for continued validity of labor certifications and
    classification petitions for professional athletes, see section 624 of
    this division.

          Subtitle D--Changes in Removal of Alien Terrorist Provisions

    SEC. 354. TREATMENT OF CLASSIFIED INFORMATION.

        (a) Limitation on Provision of Summaries; Use of Special Attorneys
    in Challenges to Classified Information.--
                (1) No provision of summary in certain cases.--Section
            504(e)(3)(D) (8 U.S.C. 1534(e)(3)(D)) is amended--
                        (A) in clause (ii), by inserting before the period
                    at the end the following: ``unless the judge makes the
                    findings under clause (iii)'', and
                        (B) by adding at the end the following new clause:
                              ``(iii) Findings.--The findings described in
                          this clause are, with respect to an alien, that--
                                        ``(I) the continued presence of the
                                    alien in the United States would likely
                                    cause serious and irreparable harm to
                                    the national security or death or
                                    serious bodily injury to any person, and
                                        ``(II) the provision of the summary
                                    would likely cause serious and
                                    irreparable harm to the national

    [[Page 110 STAT. 3009-642]]

                                    security or death or serious bodily
                                    injury to any person.''.
                (2) Special challenge procedures.--Section 504(e)(3) (8
            U.S.C. 1534(e)(3)) is amended by adding at the end the following
            new subparagraphs:
                        ``(E) Continuation of hearing without summary.--If a
                    judge makes the findings described in subparagraph
                    (D)(iii)--
                              ``(i) if the alien involved is an alien
                          lawfully admitted for permanent residence, the
                          procedures described in subparagraph (F) shall
                          apply; and
                              ``(ii) in all cases the special removal
                          hearing shall continue, the Department of Justice
                          shall cause to be delivered to the alien a
                          statement that no summary is possible, and the
                          classified information submitted in camera and ex
                          parte may be used pursuant to this paragraph.
                        ``(F) Special procedures for access and challenges
                    to classified information by special attorneys in case
                    of lawful permanent aliens.--
                              ``(i) In general.--The procedures described in
                          this subparagraph are that the judge (under rules
                          of the removal court) shall designate a special
                          attorney to assist the alien--
                                        ``(I) by reviewing in camera the
                                    classified information on behalf of the
                                    alien, and
                                        ``(II) by challenging through an in
                                    camera proceeding the veracity of the
                                    evidence contained in the classified
                                    information.
                              ``(ii) Restrictions on disclosure.--A special
                          attorney receiving classified information under
                          clause (i)--
                                        ``(I) shall not disclose the
                                    information to the alien or to any other
                                    attorney representing the alien, and
                                        ``(II) who discloses such
                                    information in violation of subclause
                                    (I) shall be subject to a fine under
                                    title 18, United States Code, imprisoned
                                    for not less than 10 years nor more than
                                    25 years, or both.''.
                (3) Appeals.--Section 505(c) (8 U.S.C. 1535(c)) is amended--
                        (A) in paragraph (1), by striking ``The decision''
                    and inserting ``Subject to paragraph (2), the
                    decision'';
                        (B) in paragraph (3)(D), by inserting before the
                    period at the end the following: ``, except that in the
                    case of a review under paragraph (2) in which an alien
                    lawfully admitted for permanent residence was denied a
                    written summary of classified information under section
                    504(c)(3), the Court of Appeals shall review questions
                    of fact de novo'';
                        (C) by redesignating paragraphs (2) and (3) as
                    paragraphs (3) and (4), respectively; and
                        (D) by inserting after paragraph (1) the following
                    new paragraph:
                ``(2) Automatic appeals in cases of permanent resident
            aliens in which no summary provided.--

    [[Page 110 STAT. 3009-643]]

                        ``(A) In general.--Unless the alien waives the right
                    to a review under this paragraph, in any case involving
                    an alien lawfully admitted for permanent residence who
                    is denied a written summary of classified information
                    under section 504(e)(3) and with respect to which the
                    procedures described in section 504(e)(3)(F) apply, any
                    order issued by the judge shall be reviewed by the Court
                    of Appeals for the District of Columbia Circuit.
                        ``(B) Use of special attorney.--With respect to any
                    issue relating to classified information that arises in
                    such review, the alien shall be represented only by the
                    special attorney designated under section
                    504(e)(3)(F)(i) on behalf of the alien.''.
                (4) Establishment of panel of special attorneys.--Section
            502 (8 U.S.C. 1532) is amended by adding at the end the
            following new subsection:

        ``(e) Establishment of Panel of Special Attorneys.--The removal
    court shall provide for the designation of a panel of attorneys each of
    whom--
                ``(1) has a security clearance which affords the attorney
            access to classified information, and
                ``(2) has agreed to represent permanent resident aliens with
            respect to classified information under section 504(e)(3) in
            accordance with (and subject to the penalties under) this
            title.''.
                (5) Definition of special attorney.--Section 501 (8 U.S.C.
            1531) is amended--
                        (A) by striking ``and'' at the end of paragraph (5),
                        (B) by striking the period at the end of paragraph
                    (6) and inserting ``; and'', and
                        (C) by adding at the end the following new
                    paragraph:
                ``(7) the term `special attorney' means an attorney who is
            on the panel established under section 502(e).''.

        (b) Other Provisions Relating to Classified Information.--
                (1) Introduction of classified information.--Section 504(e)
            (8 U.S.C. 1534(e)) is amended--
                        (A) in paragraph (1)--
                              (i) by inserting after ``(A)'' the following:
                          ``the Government is authorized to use in a removal
                          proceedings the fruits of electronic surveillance
                          and unconsented physical searches authorized under
                          the Foreign Intelligence Surveillance Act of 1978
                          (50 U.S.C. 1801 et seq.) without regard to
                          subsections (c), (e), (f), (g), and (h) of section
                          106 of that Act and'', and
                              (ii) by striking ``the Foreign Intelligence
                          Surveillance Act of 1978 (50 U.S.C. 1801 et
                          seq.)'' and inserting ``such Act''; and
                        (B) by striking the period at the end of paragraph
                    (3)(A) and inserting the following: ``and neither the
                    alien nor the public shall be informed of such evidence
                    or its sources other than through reference to the
                    summary provided pursuant to this paragraph.
                    Notwithstanding the previous sentence, the Department of
                    Justice may, in its discretion and, in the case of
                    classified information, after coordination with the
                    originating agency, elect to introduce such evidence in
                    open session.''.

    [[Page 110 STAT. 3009-644]]

                (2) Maintenance of confidentiality of classified information
            in arguments.--Section 504(f) (8 U.S.C. 1534(f)) is amended by
            adding at the end the following: ``The judge may allow any part
            of the argument that refers to evidence received in camera and
            ex parte to be heard in camera and ex parte.''.
                (3) Maintenance of confidentiality of classified information
            in orders.--Section 504(j) (8 U.S.C. 1534(j)) is amended by
            adding at the end the following: ``Any portion of the order that
            would reveal the substance or source of information received in
            camera and ex parte pursuant to subsection (e) shall not be made
            available to the alien or the public.''.

    SEC. 355. EXCLUSION OF REPRESENTATIVES OF TERRORISTS ORGANIZATIONS.

        Section 212(a)(3)(B)(i)(IV) (8 U.S.C. 1182(a)(3)(B)(i)(VI)), as
    inserted by section 411(1)(C) of Public Law 104-132, is amended by
    inserting ``which the alien knows or should have known is a terrorist
    organization'' after ``219,''.

    SEC. 356. STANDARD FOR JUDICIAL REVIEW OF TERRORIST ORGANIZATION
                DESIGNATIONS.

        Section 219(b)(3) (8 U.S.C. 1189(b)(3)), as added by section 302(a)
    of Public Law 104-132, is amended--
                (1) by striking ``or'' at the end of subparagraph (B),
                (2) by striking the period at the end of subparagraph (C)
            and inserting a semicolon, and
                (3) by adding at the end the following:
                        ``(D) lacking substantial support in the
                    administrative record taken as a whole or in classified
                    information submitted to the court under paragraph (2),
                    or
                        ``(E) not in accord with the procedures required by
                    law.''.

    SEC. 357. REMOVAL OF ANCILLARY RELIEF FOR VOLUNTARY DEPARTURE.

        Section 504(k) (8 U.S.C. 1534(k)) is amended--
                (1) by redesignating paragraphs (4) and (5) as paragraphs
            (5) and (6), and
                (2) by inserting after paragraph (3) the following new
            paragraph:
                ``(4) voluntary departure under section 244(e);''.

    SEC. 358. <<NOTE: 8 USC 1182 note.>>  EFFECTIVE DATE.

        The amendments made by this subtitle shall be effective as if
    included in the enactment of subtitle A of title IV of the Antiterrorism
    and Effective Death Penalty Act of 1996 (Public Law 104-132).

                      Subtitle E--Transportation of Aliens

    SEC. 361. DEFINITION OF STOWAWAY.

        (a) Stowaway Defined.--Section 101(a) (8 U.S.C. 1101(a)), as amended
    by section 322(a)(1) of this division, is amended by adding at the end
    the following new paragraph:

    [[Page 110 STAT. 3009-645]]

        ``(49) The term `stowaway' means any alien who obtains
    transportation without the consent of the owner, charterer, master or
    person in command of any vessel or aircraft through concealment aboard
    such vessel or aircraft. A passenger who boards with a valid ticket is
    not to be considered a stowaway.''.
        (b) <<NOTE: 8 USC 1101 note.>>  Effective Date.--The amendment made
    by subsection (a) shall take effect on the date of the enactment of this
    Act.

    SEC. 362. TRANSPORTATION CONTRACTS.

        (a) Coverage of Noncontiguous Territory.--Section 238 (8 U.S.C.
    1228), before redesignation as section 233 under section 308(b)(4) of
    this division, is amended--
                (1) in the heading, by striking ``contiguous'', and
                (2) by striking ``contiguous'' each place it appears in
            subsections (a), (b), and (d).

        (b) Coverage of Railroad Train.--Subsection (d) of such section is
    further amended by inserting ``or railroad train'' after ``aircraft''.

                        Subtitle F--Additional Provisions

    SEC. 371. IMMIGRATION JUDGES AND COMPENSATION.

        (a) Definition of Term.--Paragraph (4) of section 101(b) (8 U.S.C.
    1101(b)) is amended to read as follows:
        ``(4) The term `immigration judge' means an attorney whom the
    Attorney General appoints as an administrative judge within the
    Executive Office for Immigration Review, qualified to conduct specified
    classes of proceedings, including a hearing under section 240. An
    immigration judge shall be subject to such supervision and shall perform
    such duties as the Attorney General shall prescribe, but shall not be
    employed by the Immigration and Naturalization Service.''.
        (b) Substitution for Term ``Special Inquiry Officer''.--The
    Immigration and Nationality Act is amended by striking ``a special
    inquiry officer'', ``A special inquiry officer'', ``special inquiry
    officer'', and ``special inquiry officers'' and inserting ``an
    immigration judge'', ``An immigration judge'', ``immigration judge'',
    and ``immigration judges'', respectively, each place it appears in the
    following sections:
                (1) Section 106(a)(2) (8 U.S.C. 1105a(a)(2)), before its
            repeal by section 306(c) of this division.
                (2) Section 209(a)(2) (8 U.S.C. 1159(a)(2)).
                (3) Section 234 (8 U.S.C. 1224), before redesignation by
            section 308(b) of this division.
                (4) Section 235 (8 U.S.C. 1225), before amendment by section
            302(a) of this division.
                (5) Section 236 (8 U.S.C. 1226), before amendment by section
            303 of this division.
                (6) Section 242(b) (8 U.S.C. 1252(b)), before amendment by
            section 306(a)(2) of this division.
                (7) Section 242B(d)(1) (8 U.S.C. 1252b(d)(1)), before repeal
            by section 306(b)(6) of this division.
                (8) Section 273(d) (8 U.S.C. 1323(d)), before its repeal by
            section 308(e)(13) of this division.
                (9) Section 292 (8 U.S.C. 1362).

        (c) <<NOTE: 8 USC 1103 note.>>  Compensation for Immigration
    Judges.--

    [[Page 110 STAT. 3009-646]]

                (1) In general.--There shall be four levels of pay for
            immigration judges, under the Immigration Judge Schedule
            (designated as IJ-1, 2, 3, and 4, respectively), and each such
            judge shall be paid at one of those levels, in accordance with
            the provisions of this subsection.
                (2) Rates of pay.--
                        (A) The rates of basic pay for the levels
                    established under paragraph (1) shall be as follows:

        IJ-1..................70% of the next to highest rate of basic pay
                                  for the Senior Executive Service
        IJ-2..................80% of the next to highest rate of basic pay
                                  for the Senior Executive Service
        IJ-3..................90% of the next to highest rate of basic pay
                                  for the Senior Executive Service
        IJ-4..................92% of the next to highest rate of basic pay
                                  for the Senior Executive Service.

                        (B) Locality pay, where applicable, shall be
                    calculated into the basic pay for immigration judges.
                (3) Appointment.--
                        (A) Upon appointment, an immigration judge shall be
                    paid at IJ-1, and shall be advanced to IJ-2 upon
                    completion of 104 weeks of service, to IJ-3 upon
                    completion of 104 weeks of service in the next lower
                    rate, and to IJ-4 upon completion of 52 weeks of service
                    in the next lower rate.
                        (B) Notwithstanding subparagraph (A), the Attorney
                    General may provide for appointment of an immigration
                    judge at an advanced rate under such circumstances as
                    the Attorney General may determine appropriate.
                (4) Transition.--Immigration judges serving as of the
            effective date shall be paid at the rate that corresponds to the
            amount of time, as provided under paragraph (3)(A), that they
            have served as an immigration judge, and in no case shall be
            paid less after the effective date than the rate of pay prior to
            the effective date.

        (d) Effective Dates.--
                (1) <<NOTE: 8 USC 1101 note.>>  Subsections (a) and (b)
            shall take effect on the date of the enactment of this Act.
                (2) <<NOTE: 8 USC 1103 note.>>  Subsection (c) shall take
            effect 90 days after the date of the enactment of this Act.

    SEC. 372. DELEGATION OF IMMIGRATION ENFORCEMENT AUTHORITY.

        Section 103(a) (8 U.S.C. 1103(a)) is amended--
                (1) inserting ``(1)'' after ``(a)'',
                (2) by designating each sentence (after the first sentence)
            as a separate paragraph with appropriate consecutive numbering
            and initial indentation,
                (3) by adding at the end the following new paragraph:

        ``(8) In the event the Attorney General determines that an actual or
    imminent mass influx of aliens arriving off the coast of the United
    States, or near a land border, presents urgent circumstances requiring
    an immediate Federal response, the Attorney General may authorize any
    State or local law enforcement officer, with the consent of the head of
    the department, agency, or establishment under whose jurisdiction the
    individual is serving, to perform or exercise any of the powers,
    privileges, or duties conferred or imposed by this Act or regulations
    issued thereunder upon officers or employees of the Service.''.

    [[Page 110 STAT. 3009-647]]

    SEC. 373. POWERS AND DUTIES OF THE ATTORNEY GENERAL AND THE
                COMMISSIONER.

        Section 103 (8 U.S.C. 1103) is amended--
                (1) by adding at the end of subsection (a) the following new
            paragraph:

        ``(9) The Attorney General, in support of persons in administrative
    detention in non-Federal institutions, is authorized--
                ``(A) to make payments from funds appropriated for the
            administration and enforcement of the laws relating to
            immigration, naturalization, and alien registration for
            necessary clothing, medical care, necessary guard hire, and the
            housing, care, and security of persons detained by the Service
            pursuant to Federal law under an agreement with a State or
            political subdivision of a State; and
                ``(B) to enter into a cooperative agreement with any State,
            territory, or political subdivision thereof, for the necessary
            construction, physical renovation, acquisition of equipment,
            supplies or materials required to establish acceptable
            conditions of confinement and detention services in any State or
            unit of local government which agrees to provide guaranteed bed
            space for persons detained by the Service.''; and
                (2) by adding at the end of subsection (c), as redesignated
            by section 102(d)(1) of this division, the following: ``The
            Commissioner may enter into cooperative agreements with State
            and local law enforcement agencies for the purpose of assisting
            in the enforcement of the immigration laws.''.

    SEC. 374. JUDICIAL DEPORTATION.

        (a) In General.--Section 242A(d) (8 U.S.C. 1252a(d)), as added by
    section 224(a) of Immigration and Nationality Technical Corrections Act
    of 1994 and before redesignation by section 308(b)(5) of this division,
    is amended--
                (1) in paragraph (1), by striking ``whose criminal
            conviction causes such alien to be deportable under section
            241(a)(2)(A)'' and inserting ``who is deportable'';
                (2) in paragraph (4), by striking ``without a decision on
            the merits''; and
                (3) by adding at the end the following new paragraph:
                ``(5) Stipulated judicial order of deportation.--The United
            States Attorney, with the concurrence of the Commissioner, may,
            pursuant to Federal Rule of Criminal Procedure 11, enter into a
            plea agreement which calls for the alien, who is deportable
            under this Act, to waive the right to notice and a hearing under
            this section, and stipulate to the entry of a judicial order of
            deportation from the United States as a condition of the plea
            agreement or as a condition of probation or supervised release,
            or both. The United States district court, in both felony and
            misdemeanor cases, and a United States magistrate judge in
            misdemeanor cases, may accept such a stipulation and shall have
            jurisdiction to enter a judicial order of deportation pursuant
            to the terms of such stipulation.''.

        (b) Deportation As a Condition of Probation.--Section 3563(b) of
    title 18, United States Code, is amended--
                (1) by striking ``or'' at the end of paragraph (20);
                (2) by redesignating paragraph (21) as paragraph (22); and

    [[Page 110 STAT. 3009-648]]

                (3) by inserting after paragraph (20) the following new
            paragraph:
                ``(21) be ordered deported by a United States district
            court, or United States magistrate judge, pursuant to a
            stipulation entered into by the defendant and the United States
            under section 242A(d)(5) of the Immigration and Nationality Act,
            except that, in the absence of a stipulation, the United States
            district court or a United States magistrate judge, may order
            deportation as a condition of probation, if, after notice and
            hearing pursuant to such section, the Attorney General
            demonstrates by clear and convincing evidence that the alien is
            deportable; or''.

        (c) <<NOTE: 8 USC 1228 note.>>  Effective Date.--The amendment made
    by subsection (a)(2) shall be effective as if included in the enactment
    of section 224(a) of the Immigration and Nationality Technical
    Corrections Act of 1994.

    SEC. 375. LIMITATION ON ADJUSTMENT OF STATUS.

        Section 245(c) (8 U.S.C. 1255(c)) is amended--
                (1) by striking ``or (6)'' and inserting ``(6)''; and
                (2) by inserting before the period at the end the following:
            ``; (7) any alien who seeks adjustment of status to that of an
            immigrant under section 203(b) and is not in a lawful
            nonimmigrant status; or (8) any alien who was employed while the
            alien was an unauthorized alien, as defined in section
            274A(h)(3), or who has otherwise violated the terms of a
            nonimmigrant visa''.

    SEC. 376. TREATMENT OF CERTAIN FEES.

        (a) Increase in Fee.--Section 245(i) (8 U.S.C. 1255(i)), as added by
    section 506(b) of Public Law 103-317, is amended--
                (1) in paragraph (1), by striking ``five times the fee
            required for the processing of applications under this section''
            and inserting ``$1,000''; and
                (2) by amending paragraph (3) to read as follows:

        ``(3)(A) The portion of each application fee (not to exceed $200)
    that the Attorney General determines is required to process an
    application under this section and is remitted to the Attorney General
    pursuant to paragraphs (1) and (2) of this subsection shall be disposed
    of by the Attorney General as provided in subsections (m), (n), and (o)
    of section 286.
        ``(B) Any remaining portion of such fees remitted under such
    paragraphs shall be deposited by the Attorney General into the
    Immigration Detention Account established under section 286(s).''.
        (b) Immigration Detention Account.--Section 286 (8 U.S.C. 1356) is
    amended by adding at the end the following new subsection:
        ``(s) Immigration Detention Account.--(1) There is established in
    the general fund of the Treasury a separate account which shall be known
    as the `Immigration Detention Account'. Notwithstanding any other
    section of this title, there shall be deposited as offsetting receipts
    into the Immigration Detention Account amounts described in section
    245(i)(3)(B) to remain available until expended.
        ``(2)(A) The Secretary of the Treasury shall refund out of the
    Immigration Detention Account to any appropriation the amount paid out
    of such appropriation for expenses incurred by the Attorney General for
    the detention of aliens under sections 236(c) and 241(a).

    [[Page 110 STAT. 3009-649]]

        ``(B) The amounts which are required to be refunded under
    subparagraph (A) shall be refunded at least quarterly on the basis of
    estimates made by the Attorney General of the expenses referred to in
    subparagraph (A). Proper adjustments shall be made in the amounts
    subsequently refunded under subparagraph (A) to the extent prior
    estimates were in excess of, or less than, the amount required to be
    refunded under subparagraph (A).
        ``(C) The amounts required to be refunded from the Immigration
    Detention Account for fiscal year 1997 and thereafter shall be refunded
    in accordance with estimates made in the budget request of the Attorney
    General for those fiscal years. Any proposed changes in the amounts
    designated in such budget requests shall only be made after notification
    to the Committees on Appropriations of the House of Representatives and
    the Senate in accordance with section 605 of Public Law 104-134.
        ``(D) The Attorney General shall prepare and submit annually to the
    Congress statements of financial condition of the Immigration Detention
    Account, including beginning account balance, revenues, withdrawals, and
    ending account balance and projection for the ensuing fiscal year.''.
        (c) <<NOTE: 8 USC 1255 note.>>  Effective Date.--The amendments made
    by this section shall apply to applications made on or after the end of
    the 90-day period beginning on the date of the enactment of this Act.

    SEC. 377. LIMITATION ON LEGALIZATION LITIGATION.

        (a) Limitation on Court Jurisdiction.--Section 245A(f)(4) (8 U.S.C.
    1255a(f)(4)) is amended by adding at the end the following new
    subparagraph:
                        ``(C) Jurisdiction of courts.--Notwithstanding any
                    other provision of law, no court shall have jurisdiction
                    of any cause of action or claim by or on behalf of any
                    person asserting an interest under this section unless
                    such person in fact filed an application under this
                    section within the period specified by subsection
                    (a)(1), or attempted to file a complete application and
                    application fee with an authorized legalization officer
                    of the Service but had the application and fee refused
                    by that officer.''.

        (b) <<NOTE: 8 USC 1255a note.>>  Effective Date.--The amendment made
    by subsection (a) shall be effective as if included in the enactment of
    the Immigration Reform and Control Act of 1986.

    SEC. 378. RESCISSION OF LAWFUL PERMANENT RESIDENT STATUS.

        (a) In General.--Section 246(a) (8 U.S.C. 1256(a)) is amended by
    adding at the end the following sentence: ``Nothing in this subsection
    shall require the Attorney General to rescind the alien's status prior
    to commencement of procedures to remove the alien under section 240, and
    an order of removal issued by an immigration judge shall be sufficient
    to rescind the alien's status.''.
        (b) <<NOTE: 8 USC 1256 note.>>  Effective Date.--The amendment made
    by subsection (a) shall take effect on the title III-A effective date
    (as defined in section 309(a) of this division).

    SEC. 379. ADMINISTRATIVE REVIEW OF ORDERS.

        (a) In General.--Sections 274A(e)(7) and 274C(d)(4) (8 U.S.C.
    1324a(e)(7), 1324c(d)(4)) are each amended--
                (1) by striking ``unless, within 30 days, the Attorney
            General modifies or vacates the decision and order'' and
            inserting ``unless either (A) within 30 days, an official
            delegated by

    [[Page 110 STAT. 3009-650]]

            regulation to exercise review authority over the decision and
            order modifies or vacates the decision and order, or (B) within
            30 days of the date of such a modification or vacation (or
            within 60 days of the date of decision and order of an
            administrative law judge if not so modified or vacated) the
            decision and order is referred to the Attorney General pursuant
            to regulations''; and
                (2) by striking ``a final order'' and inserting ``the final
            agency decision and order''.

        (b) <<NOTE: 8 USC 1324a note.>>  Effective Date.--The amendments
    made by subsection (a) shall apply to orders issued on or after the date
    of the enactment of this Act.

    SEC. 380. CIVIL PENALTIES FOR FAILURE TO DEPART.

        (a) In General.--The Immigration and Nationality Act is amended by
    inserting after section 274C the following new section:

                     ``civil penalties for failure to depart

        ``Sec. 274D. <<NOTE: 8 USC 1324d.>>  (a) In General.--Any alien
    subject to a final order of removal who--
                ``(1) willfully fails or refuses to--
                        ``(A) depart from the United States pursuant to the
                    order,
                        ``(B) make timely application in good faith for
                    travel or other documents necessary for departure, or
                        ``(C) present for removal at the time and place
                    required by the Attorney General; or
                ``(2) conspires to or takes any action designed to prevent
            or hamper the alien's departure pursuant to the order,

    shall pay a civil penalty of not more than $500 to the Commissioner for
    each day the alien is in violation of this section.
        ``(b) Construction.--Nothing in this section shall be construed to
    diminish or qualify any penalties to which an alien may be subject for
    activities proscribed by section 243(a) or any other section of this
    Act.''.
        (b) Clerical Amendment.--The table of contents is amended by
    inserting after the item relating to section 274C the following new
    item:

    ``Sec. 274D. Civil penalties for failure to depart.''.

        (c) <<NOTE: 8 USC 1324d note.>>  Effective Date.--The amendment made
    by subsection (a) shall apply to actions occurring on or after the title
    III-A effective date (as defined in section 309(a) of this division).

    SEC. 381. CLARIFICATION OF DISTRICT COURT JURISDICTION.

        (a) In General.--Section 279 (8 U.S.C. 1329) is amended--
                (1) by amending the first sentence to read as follows: ``The
            district courts of the United States shall have jurisdiction of
            all causes, civil and criminal, brought by the United States
            that arise under the provisions of this title.'', and
                (2) by adding at the end the following new sentence:
            ``Nothing in this section shall be construed as providing
            jurisdiction for suits against the United States or its agencies
            or officers.''.

        (b) <<NOTE: 8 USC 1329 note.>>  Effective Date.--The amendments made
    by subsection (a) shall apply to actions filed after the date of the
    enactment of this Act.

    [[Page 110 STAT. 3009-651]]

    SEC. 382. APPLICATION OF ADDITIONAL CIVIL PENALTIES TO ENFORCEMENT.

        (a) In General.--Subsection (b) of section 280 (8 U.S.C. 1330) is
    amended to read as follows:
        ``(b)(1) There is established in the general fund of the Treasury a
    separate account which shall be known as the `Immigration Enforcement
    Account'. Notwithstanding any other section of this title, there shall
    be deposited as offsetting receipts into the Immigration Enforcement
    Account amounts described in paragraph (2) to remain available until
    expended.
        ``(2) The amounts described in this paragraph are the following:
                ``(A) The increase in penalties collected resulting from the
            amendments made by sections 203(b) and 543(a) of the Immigration
            Act of 1990.
                ``(B) Civil penalties collected under sections 240B(d),
            274C, 274D, and 275(b).

        ``(3)(A) The Secretary of the Treasury shall refund out of the
    Immigration Enforcement Account to any appropriation the amount paid out
    of such appropriation for expenses incurred by the Attorney General for
    activities that enhance enforcement of provisions of this title. Such
    activities include--
                ``(i) the identification, investigation, apprehension,
            detention, and removal of criminal aliens;
                ``(ii) the maintenance and updating of a system to identify
            and track criminal aliens, deportable aliens, inadmissible
            aliens, and aliens illegally entering the United States; and
                ``(iii) for the repair, maintenance, or construction on the
            United States border, in areas experiencing high levels of
            apprehensions of illegal aliens, of structures to deter illegal
            entry into the United States.

        ``(B) The amounts which are required to be refunded under
    subparagraph (A) shall be refunded at least quarterly on the basis of
    estimates made by the Attorney General of the expenses referred to in
    subparagraph (A). Proper adjustments shall be made in the amounts
    subsequently refunded under subparagraph (A) to the extent prior
    estimates were in excess of, or less than, the amount required to be
    refunded under subparagraph (A).
        ``(C) The amounts required to be refunded from the Immigration
    Enforcement Account for fiscal year 1996 and thereafter shall be
    refunded in accordance with estimates made in the budget request of the
    Attorney General for those fiscal years. Any proposed changes in the
    amounts designated in such budget requests shall only be made after
    notification to the Committees on Appropriations of the House of
    Representatives and the Senate in accordance with section 605 of Public
    Law 104-134.
        ``(D) The Attorney General shall prepare and submit annually to the
    Congress statements of financial condition of the Immigration
    Enforcement Account, including beginning account balance, revenues,
    withdrawals, and ending account balance and projection for the ensuing
    fiscal year.''.
        (b) Immigration User Fee Account.--Section 286(h)(1)(B) (8 U.S.C.
    1356(h)(1)(B)) is amended by striking ``271'' and inserting ``243(c),
    271,''.
        (c) <<NOTE: 8 USC 1330 note.>>  Effective Date.--The amendments made
    by this section shall apply to fines and penalties collected on or after
    the date of the enactment of this Act.

    [[Page 110 STAT. 3009-652]]

    SEC. 383. EXCLUSION OF CERTAIN ALIENS FROM FAMILY UNITY PROGRAM.

        (a) In General.--Section 301(e) of the Immigration Act of 1990 (8
    U.S.C. 1255a note) is amended--
                (1) by striking ``or'' at the end of paragraph (1),
                (2) by striking the period at the end of paragraph (2) and
            inserting ``, or'', and
                (3) by adding at the end the following new paragraph:
                ``(3) has committed an act of juvenile delinquency which if
            committed by an adult would be classified as--
                        ``(A) a felony crime of violence that has an element
                    the use or attempted use of physical force against
                    another individual, or
                        ``(B) a felony offense that by its nature involves a
                    substantial risk that physical force against another
                    individual may be used in the course of committing the
                    offense.''.

        (b) <<NOTE: 8 USC 1255a note.>>  Effective Date.--The amendments
    made by subsection (a) shall apply to benefits granted or extended after
    the date of the enactment of this Act.

    SEC. 384. <<NOTE: 8 USC 1367.>>  PENALTIES FOR DISCLOSURE OF
                INFORMATION.

        (a) In General.--Except as provided in subsection (b), in no case
    may the Attorney General, or any other official or employee of the
    Department of Justice (including any bureau or agency of such
    Department)--
                (1) make an adverse determination of admissibility or
            deportability of an alien under the Immigration and Nationality
            Act using information furnished solely by--
                        (A) a spouse or parent who has battered the alien or
                    subjected the alien to extreme cruelty,
                        (B) a member of the spouse's or parent's family
                    residing in the same household as the alien who has
                    battered the alien or subjected the alien to extreme
                    cruelty when the spouse or parent consented to or
                    acquiesced in such battery or cruelty,
                        (C) a spouse or parent who has battered the alien's
                    child or subjected the alien's child to extreme cruelty
                    (without the active participation of the alien in the
                    battery or extreme cruelty), or
                        (D) a member of the spouse's or parent's family
                    residing in the same household as the alien who has
                    battered the alien's child or subjected the alien's
                    child to extreme cruelty when the spouse or parent
                    consented to or acquiesced in such battery or cruelty
                    and the alien did not actively participate in such
                    battery or cruelty,

            unless the alien has been convicted of a crime or crimes listed
            in section 241(a)(2) of the Immigration and Nationality Act; or
                (2) permit use by or disclosure to anyone (other than a
            sworn officer or employee of the Department, or bureau or agency
            thereof, for legitimate Department, bureau, or agency purposes)
            of any information which relates to an alien who is the
            beneficiary of an application for relief under clause (iii) or
            (iv) of section 204(a)(1)(A), clause (ii) or (iii) of section
            204(a)(1)(B), section 216(c)(4)(C), or section 244(a)(3) of such
            Act as an alien (or the parent of a child) who has been battered
            or subjected to extreme cruelty.

    [[Page 110 STAT. 3009-653]]

    The limitation under paragraph (2) ends when the application for relief
    is denied and all opportunities for appeal of the denial have been
    exhausted.
        (b) Exceptions.--
                (1) The Attorney General may provide, in the Attorney
            General's discretion, for the disclosure of information in the
            same manner and circumstances as census information may be
            disclosed by the Secretary of Commerce under section 8 of title
            13, United States Code.
                (2) The Attorney General may provide in the discretion of
            the Attorney General for the disclosure of information to law
            enforcement officials to be used solely for a legitimate law
            enforcement purpose.
                (3) Subsection (a) shall not be construed as preventing
            disclosure of information in connection with judicial review of
            a determination in a manner that protects the confidentiality of
            such information.
                (4) Subsection (a)(2) shall not apply if all the battered
            individuals in the case are adults and they have all waived the
            restrictions of such subsection.

        (c) Penalties for Violations.--Anyone who willfully uses, publishes,
    or permits information to be disclosed in violation of this section
    shall be subject to appropriate disciplinary action and subject to a
    civil money penalty of not more than $5,000 for each such violation.
        (d) Conforming Amendments to Other Disclosure Restrictions.--
                (1) <<NOTE: 8 USC 1160.>>  In general.--The last sentence of
            section 210(b)(6) and the second sentence of section 245A(c)(5)
            (8 U.S.C. 1255a(c)(5)) are each amended to read as follows:
            ``Anyone who uses, publishes, or permits information to be
            examined in violation of this paragraph shall be subject to
            appropriate disciplinary action and subject to a civil money
            penalty of not more than $5,000 for each violation.''.
                (2) <<NOTE: 8 USC 1160 note.>>  Effective date.--The
            amendments made by this subsection shall apply to offenses
            occurring on or after the date of the enactment of this Act.

    SEC. 385. AUTHORIZATION OF ADDITIONAL FUNDS FOR REMOVAL OF ALIENS.

        In addition to the amounts otherwise authorized to be appropriated
    for each fiscal year beginning with fiscal year 1996, there are
    authorized to be appropriated to the Attorney General $150,000,000 for
    costs associated with the removal of inadmissible or deportable aliens,
    including costs of detention of such aliens pending their removal, the
    hiring of more investigators, and the hiring of more detention and
    deportation officers.

    SEC. 386. <<NOTE: 8 USC 1368.>>  INCREASE IN INS DETENTION FACILITIES;
                REPORT ON DETENTION SPACE.

        (a) Increase in Detention Facilities.--Subject to the availability
    of appropriations, the Attorney General shall provide for an increase in
    the detention facilities of the Immigration and Naturalization Service
    to at least 9,000 beds before the end of fiscal year 1997.
        (b) Report on Detention Space.--
                (1) In general.--Not later than 6 months after the date of
            the enactment of this Act, and every 6 months thereafter,

    [[Page 110 STAT. 3009-654]]

            the Attorney General shall submit a report to the Committees on
            the Judiciary of the House of Representatives and of the Senate
            estimating the amount of detention space that will be required,
            during the fiscal year in which the report is submitted and the
            succeeding fiscal year, to detain--
                        (A) all aliens subject to detention under section
                    236(c) of the Immigration and Nationality Act (as
                    amended by section 303 of this title) and section 241(a)
                    of the Immigration and Nationality Act (as inserted by
                    section 305(a)(3) of this title);
                        (B) all excludable or deportable aliens subject to
                    proceedings under section 238 of the Immigration and
                    Nationality Act (as redesignated by section 308(b)(5) of
                    this title) or section 235(b)(2)(A) or 240 of the
                    Immigration and Nationality Act; and
                        (C) other excludable or deportable aliens in
                    accordance with the priorities established by the
                    Attorney General.
                (2) Estimate of number of aliens released into the
            community.--
                        (A) Criminal aliens.--
                              (i) In general.--The first report submitted
                          under paragraph (1) shall include an estimate of
                          the number of criminal aliens who, in each of the
                          3 fiscal years concluded prior to the date of the
                          report--
                                        (I) were released from detention
                                    facilities of the Immigration and
                                    Naturalization Service (whether operated
                                    directly by the Service or through
                                    contract with other persons or
                                    agencies); or
                                        (II) were not taken into custody or
                                    detention by the Service upon completion
                                    of their incarceration.
                              (ii) Aliens convicted of aggravated
                          felonies.--The estimate under clause (i) shall
                          estimate separately, with respect to each year
                          described in such clause, the number of criminal
                          aliens described in such clause who were convicted
                          of an aggravated felony.
                        (B) All excludable or deportable aliens.--The first
                    report submitted under paragraph (1) shall also estimate
                    the number of excludable or deportable aliens who were
                    released into the community due to a lack of detention
                    facilities in each of the 3 fiscal years concluded prior
                    to the date of the report notwithstanding circumstances
                    that the Attorney General believed justified detention
                    (for example, a significant probability that the
                    released alien would not appear, as agreed, at
                    subsequent exclusion or deportation proceedings).
                        (C) Subsequent reports.--Each report under paragraph
                    (1) following the first such report shall include the
                    estimates under subparagraphs (A) and (B), made with
                    respect to the 6-month period immediately preceding the
                    date of the submission of the report.

    [[Page 110 STAT. 3009-655]]

    SEC. 387. <<NOTE: 8 USC 1231 note.>>  PILOT PROGRAM ON USE OF CLOSED
                MILITARY BASES FOR THE DETENTION OF INADMISSIBLE OR
                DEPORTABLE ALIENS.

        (a) Establishment.--The Attorney General and the Secretary of
    Defense shall establish one or more pilot programs for up to 2 years
    each to determine the feasibility of the use of military bases,
    available because of actions under a base closure law, as detention
    centers by the Immigration and Naturalization Service. In selecting real
    property at a military base for use as a detention center under the
    pilot program, the Attorney General and the Secretary shall consult with
    the redevelopment authority established for the military base and give
    substantial deference to the redevelopment plan prepared for the
    military base.
        (b) Report.--Not later than 30 months after the date of the
    enactment of this Act, the Attorney General, together with the Secretary
    of Defense, shall submit a report to the Committees on the Judiciary of
    the House of Representatives and of the Senate, and the Committees on
    Armed Services of the House of Representatives and of the Senate, on the
    feasibility of using military bases closed under a base closure law as
    detention centers by the Immigration and Naturalization Service.
        (c) Definition.--For purposes of this section, the term ``base
    closure law'' means each of the following:
                (1) The Defense Base Closure and Realignment Act of 1990
            (part A of title XXIX of Public Law 101-510; 10 U.S.C. 2687
            note).
                (2) Title II of the Defense Authorization Amendments and
            Base Closure and Realignment Act (Public Law 100-526; 10 U.S.C.
            2687 note).
                (3) Section 2687 of title 10, United States Code.
                (4) Any other similar law enacted after the date of the
            enactment of this Act.

    SEC. 388. <<NOTE: 8 USC 1231 note.>>  REPORT ON INTERIOR REPATRIATION
                PROGRAM.

        Not later than 30 months after the date of the enactment of this
    Act, the Attorney General, in consultation with the Secretary of State,
    shall submit a report to the Committees on the Judiciary of the House of
    Representatives and of the Senate on the operation of the program of
    interior repatriation developed under section 437 of the Antiterrorism
    and Effective Death Penalty Act of 1996 (Public Law 104-132).

            TITLE IV--ENFORCEMENT OF RESTRICTIONS AGAINST EMPLOYMENT

     Subtitle A-- <<NOTE: 8 USC 1324a note.>> Pilot Programs for Employment
    Eligibility Confirmation

    SEC. 401. ESTABLISHMENT OF PROGRAMS.

        (a) In General.--The Attorney General shall conduct 3 pilot programs
    of employment eligibility confirmation under this subtitle.
        (b) Implementation Deadline; Termination.--The Attorney General
    shall implement the pilot programs in a manner that permits persons and
    other entities to have elections under section 402 of this division made
    and in effect no later than 1 year after

    [[Page 110 STAT. 3009-656]]

    the date of the enactment of this Act. Unless the Congress otherwise
    provides, the Attorney General shall terminate a pilot program at the
    end of the 4-year period beginning on the first day the pilot program is
    in effect.
        (c) Scope of Operation of Pilot Programs.--The Attorney General
    shall provide for the operation--
                (1) of the basic pilot program (described in section 403(a)
            of this division) in, at a minimum, 5 of the 7 States with the
            highest estimated population of aliens who are not lawfully
            present in the United States;
                (2) of the citizen attestation pilot program (described in
            section 403(b) of this division) in at least 5 States (or, if
            fewer, all of the States) that meet the condition described in
            section 403(b)(2)(A) of this division; and
                (3) of the machine-readable-document pilot program
            (described in section 403(c) of this division) in at least 5
            States (or, if fewer, all of the States) that meet the condition
            described in section 403(c)(2) of this division.

        (d) References in Subtitle.--In this subtitle--
                (1) Pilot program references.--The terms ``program'' or
            ``pilot program'' refer to any of the 3 pilot programs provided
            for under this subtitle.
                (2) Confirmation system.--The term ``confirmation system''
            means the confirmation system established under section 404 of
            this division.
                (3) References to section 274a.--Any reference in this
            subtitle to section 274A (or a subdivision of such section) is
            deemed a reference to such section (or subdivision thereof) of
            the Immigration and Nationality Act.
                (4) I-9 or similar form.--The term ``I-9 or similar form''
            means the form used for purposes of section 274A(b)(1)(A) or
            such other form as the Attorney General determines to be
            appropriate.
                 (5) Limited application to recruiters and referrers.--Any
            reference to recruitment or referral (or a recruiter or
            referrer) in relation to employment is deemed a reference only
            to such recruitment or referral (or recruiter or referrer) that
            is subject to section 274A(a)(1)(B)(ii).
                (6) United states citizenship.--The term ``United States
            citizenship'' includes United States nationality.
                (7) State.--The term ``State'' has the meaning given such
            term in section 101(a)(36) of the Immigration and Nationality
            Act.

    SEC. 402. VOLUNTARY ELECTION TO PARTICIPATE IN A PILOT PROGRAM.

        (a) Voluntary Election.--Subject to subsection (c)(3)(B), any person
    or other entity that conducts any hiring (or recruitment or referral) in
    a State in which a pilot program is operating may elect to participate
    in that pilot program. Except as specifically provided in subsection
    (e), the Attorney General may not require any person or other entity to
    participate in a pilot program.
        (b) Benefit of Rebuttable Presumption.--
                (1) In general.--If a person or other entity is
            participating in a pilot program and obtains confirmation of
            identity and employment eligibility in compliance with the terms
            and conditions of the program with respect to the hiring (or
            recruitment

    [[Page 110 STAT. 3009-657]]

            or referral) of an individual for employment in the United
            States, the person or entity has established a rebuttable
            presumption that the person or entity has not violated section
            274A(a)(1)(A) with respect to such hiring (or such recruitment
            or referral).
                (2) Construction.--Paragraph (1) shall not be construed as
            preventing a person or other entity that has an election in
            effect under subsection (a) from establishing an affirmative
            defense under section 274A(a)(3) if the person or entity
            complies with the requirements of section 274A(a)(1)(B) but
            fails to obtain confirmation under paragraph (1).

        (c) General Terms of Elections.--
                (1) In general.--An election under subsection (a) shall be
            in such form and manner, under such terms and conditions, and
            shall take effect, as the Attorney General shall specify. The
            Attorney General may not impose any fee as a condition of making
            an election or participating in a pilot program.
                (2) Scope of election.--
                        (A) In general.--Subject to paragraph (3), any
                    electing person or other entity may provide that the
                    election under subsection (a) shall apply (during the
                    period in which the election is in effect)--
                              (i) to all its hiring (and all recruitment or
                          referral) in the State (or States) in which the
                          pilot program is operating, or
                              (ii) to its hiring (or recruitment or
                          referral) in one or more pilot program States or
                          one or more places of hiring (or recruitment or
                          referral, as the case may be) in the pilot program
                          States.
                        (B) Application of programs in non-pilot program
                    states.--In addition, the Attorney General may permit a
                    person or entity electing--
                              (i) the basic pilot program (described in
                          section 403(a) of this division) to provide that
                          the election applies to its hiring (or recruitment
                          or referral) in one or more States or places of
                          hiring (or recruitment or referral) in which the
                          pilot program is not otherwise operating, or
                              (ii) the citizen attestation pilot program
                          (described in 403(b) of this division) or the
                          machine-readable-document pilot program (described
                          in section 403(c) of this division) to provide
                          that the election applies to its hiring (or
                          recruitment or referral) in one or more States or
                          places of hiring (or recruitment or referral) in
                          which the pilot program is not otherwise operating
                          but only if such States meet the requirements of
                          403(b)(2)(A) and 403(c)(2) of this division,
                          respectively.
                (3) Acceptance and rejection of elections.--
                        (A) In general.--Except as provided in subparagraph
                    (B), the Attorney General shall accept all elections
                    made under subsection (a).
                        (B) Rejection of elections.--The Attorney General
                    may reject an election by a person or other entity under
                    this section or limit its applicability to certain
                    States or places of hiring (or recruitment or referral)
                    if the Attorney General has determined that there are
                    insufficient

    [[Page 110 STAT. 3009-658]]

                    resources to provide appropriate services under a pilot
                    program for the person's or entity's hiring (or
                    recruitment or referral) in any or all States or places
                    of hiring.
                (4) Termination of elections.--The Attorney General may
            terminate an election by a person or other entity under this
            section because the person or entity has substantially failed to
            comply with its obligations under the pilot program. A person or
            other entity may terminate an election in such form and manner
            as the Attorney General shall specify.

        (d) Consultation, Education, and Publicity.--
                (1) Consultation.--The Attorney General shall closely
            consult with representatives of employers (and recruiters and
            referrers) in the development and implementation of the pilot
            programs, including the education of employers (and recruiters
            and referrers) about such programs.
                (2) Publicity.--The Attorney General shall widely publicize
            the election process and pilot programs, including the voluntary
            nature of the pilot programs and the advantages to employers
            (and recruiters and referrers) of making an election under this
            section.
                (3) Assistance through district offices.--The Attorney
            General shall designate one or more individuals in each District
            office of the Immigration and Naturalization Service for a
            Service District in which a pilot program is being implemented--
                        (A) to inform persons and other entities that seek
                    information about pilot programs of the voluntary nature
                    of such programs, and
                        (B) to assist persons and other entities in electing
                    and participating in any pilot programs in effect in the
                    District, in complying with the requirements of section
                    274A, and in facilitating confirmation of the identity
                    and employment eligibility of individuals consistent
                    with such section.

        (e) Select Entities Required to Participate in a Pilot Program.--
                (1) Federal government.--
                        (A) Executive departments.--
                              (i) In general.--Each Department of the
                          Federal Government shall elect to participate in a
                          pilot program and shall comply with the terms and
                          conditions of such an election.
                              (ii) Election.--Subject to clause (iii), the
                          Secretary of each such Department--
                                        (I) shall elect the pilot program
                                    (or programs) in which the Department
                                    shall participate, and
                                        (II) may limit the election to
                                    hiring occurring in certain States (or
                                    geographic areas) covered by the program
                                    (or programs) and in specified divisions
                                    within the Department, so long as all
                                    hiring by such divisions and in such
                                    locations is covered.
                              (iii) Role of attorney general.--The Attorney
                          General shall assist and coordinate elections
                          under this subparagraph in such manner as assures
                          that--
                                        (I) a significant portion of the
                                    total hiring within each Department
                                    within States covered by a pilot program
                                    is covered under such a program, and

    [[Page 110 STAT. 3009-659]]

                                        (II) there is significant
                                    participation by the Federal Executive
                                    branch in each of the pilot programs.
                        (B) Legislative branch.--Each Member of Congress,
                    each officer of Congress, and the head of each agency of
                    the legislative branch, that conducts hiring in a State
                    in which a pilot program is operating shall elect to
                    participate in a pilot program, may specify which pilot
                    program or programs (if there is more than one) in which
                    the Member, officer, or agency will participate, and
                    shall comply with the terms and conditions of such an
                    election.
                (2) Application to certain violators.--An order under
            section 274A(e)(4) or section 274B(g) of the Immigration and
            Nationality Act may require the subject of the order to
            participate in, and comply with the terms of, a pilot program
            with respect to the subject's hiring (or recruitment or
            referral) of individuals in a State covered by such a program.
                (3) Consequence of failure to participate.--If a person or
            other entity is required under this subsection to participate in
            a pilot program and fails to comply with the requirements of
            such program with respect to an individual--
                        (A) such failure shall be treated as a violation of
                    section 274A(a)(1)(B) with respect to that individual,
                    and
                        (B) a rebuttable presumption is created that the
                    person or entity has violated section 274A(a)(1)(A).
            Subparagraph (B) shall not apply in any prosecution under
            section 274A(f)(1).

        (f) Construction.--This subtitle shall not affect the authority of
    the Attorney General under any other law (including section 274A(d)(4))
    to conduct demonstration projects in relation to section 274A.

    SEC. 403. PROCEDURES FOR PARTICIPANTS IN PILOT PROGRAMS.

        (a) Basic Pilot Program.--A person or other entity that elects to
    participate in the basic pilot program described in this subsection
    agrees to conform to the following procedures in the case of the hiring
    (or recruitment or referral) for employment in the United States of each
    individual covered by the election:
                (1) Provision of additional information.--The person or
            entity shall obtain from the individual (and the individual
            shall provide) and shall record on the I-9 or similar form--
                        (A) the individual's social security account number,
                    if the individual has been issued such a number, and
                        (B) if the individual does not attest to United
                    States citizenship under section 274A(b)(2), such
                    identification or authorization number established by
                    the Immigration and Naturalization Service for the alien
                    as the Attorney General shall specify,

            and shall retain the original form and make it available for
            inspection for the period and in the manner required of I-9
            forms under section 274A(b)(3).
                (2) Presentation of documentation.--
                        (A) In general.--The person or other entity, and the
                    individual whose identity and employment eligibility are
                    being confirmed, shall, subject to subparagraph (B),
                    fulfill the requirements of section 274A(b) with the
                    following modifications:

    [[Page 110 STAT. 3009-660]]

                              (i) A document referred to in section
                          274A(b)(1)(B)(ii) (as redesignated by section
                          412(a) of this division) must be designated by the
                          Attorney General as suitable for the purpose of
                          identification in a pilot program.
                              (ii) A document referred to in section
                          274A(b)(1)(D) must contain a photograph of the
                          individual.
                              (iii) The person or other entity has complied
                          with the requirements of section 274A(b)(1) with
                          respect to examination of a document if the
                          document reasonably appears on its face to be
                          genuine and it reasonably appears to pertain to
                          the individual whose identity and work eligibility
                          is being confirmed.
                        (B) Limitation of requirement to examine
                    documentation.--If the Attorney General finds that a
                    pilot program would reliably determine with respect to
                    an individual whether--
                              (i) the person with the identity claimed by
                          the individual is authorized to work in the United
                          States, and
                              (ii) the individual is claiming the identity
                          of another person,

                    if a person or entity could fulfill the requirement to
                    examine documentation contained in subparagraph (A) of
                    section 274A(b)(1) by examining a document specified in
                    either subparagraph (B) or (D) of such section, the
                    Attorney General may provide that, for purposes of such
                    requirement, only such a document need be examined. In
                    such case, any reference in section 274A(b)(1)(A) to a
                    verification that an individual is not an unauthorized
                    alien shall be deemed to be a verification of the
                    individual's identity.
                (3) Seeking confirmation.--
                        (A) In general.--The person or other entity shall
                    make an inquiry, as provided in section 404(a)(1) of
                    this division, using the confirmation system to seek
                    confirmation of the identity and employment eligibility
                    of an individual, by not later than the end of 3 working
                    days (as specified by the Attorney General) after the
                    date of the hiring (or recruitment or referral, as the
                    case may be).
                        (B) Extension of time period.--If the person or
                    other entity in good faith attempts to make an inquiry
                    during such 3 working days and the confirmation system
                    has registered that not all inquiries were received
                    during such time, the person or entity can make an
                    inquiry in the first subsequent working day in which the
                    confirmation system registers that it has received all
                    inquiries. If the confirmation system cannot receive
                    inquiries at all times during a day, the person or
                    entity merely has to assert that the entity attempted to
                    make the inquiry on that day for the previous sentence
                    to apply to such an inquiry, and does not have to
                    provide any additional proof concerning such inquiry.
                (4) Confirmation or nonconfirmation.--
                        (A) Confirmation upon initial inquiry.--If the
                    person or other entity receives an appropriate
                    confirmation of an individual's identity and work
                    eligibility under the confirmation system within the
                    time period specified under

    [[Page 110 STAT. 3009-661]]

                    section 404(b) of this division, the person or entity
                    shall record on the I-9 or similar form an appropriate
                    code that is provided under the system and that
                    indicates a final confirmation of such identity and work
                    eligibility of the individual.
                        (B) Nonconfirmation upon initial inquiry and
                    secondary verification.--
                              (i) Nonconfirmation.--If the person or other
                          entity receives a tentative nonconfirmation of an
                          individual's identity or work eligibility under
                          the confirmation system within the time period
                          specified under 404(b) of this division, the
                          person or entity shall so inform the individual
                          for whom the confirmation is sought.
                              (ii) No contest.--If the individual does not
                          contest the nonconfirmation within the time period
                          specified in section 404(c) of this division, the
                          nonconfirmation shall be considered final. The
                          person or entity shall then record on the I-9 or
                          similar form an appropriate code which has been
                          provided under the system to indicate a tentative
                          nonconfirmation.
                              (iii) Contest.--If the individual does contest
                          the nonconfirmation, the individual shall utilize
                          the process for secondary verification provided
                          under section 404(c) of this division. The
                          nonconfirmation will remain tentative until a
                          final confirmation or nonconfirmation is provided
                          by the confirmation system within the time period
                          specified in such section. In no case shall an
                          employer terminate employment of an individual
                          because of a failure of the individual to have
                          identity and work eligibility confirmed under this
                          section until a nonconfirmation becomes final.
                          Nothing in this clause shall apply to a
                          termination of employment for any reason other
                          than because of such a failure.
                              (iv) Recording of conclusion on form.--If a
                          final confirmation or nonconfirmation is provided
                          by the confirmation system under section 404(c) of
                          this division regarding an individual, the person
                          or entity shall record on the I-9 or similar form
                          an appropriate code that is provided under the
                          system and that indicates a confirmation or
                          nonconfirmation of identity and work eligibility
                          of the individual.
                        (C) Consequences of nonconfirmation.--
                              (i) Termination or notification of continued
                          employment.--If the person or other entity has
                          received a final nonconfirmation regarding an
                          individual under subparagraph (B), the person or
                          entity may terminate employment (or recruitment or
                          referral) of the individual. If the person or
                          entity does not terminate employment (or
                          recruitment or referral) of the individual, the
                          person or entity shall notify the Attorney General
                          of such fact through the confirmation system or in
                          such other manner as the Attorney General may
                          specify.
                              (ii) Failure to notify.--If the person or
                          entity fails to provide notice with respect to an
                          individual as required under clause (i), the
                          failure is deemed

    [[Page 110 STAT. 3009-662]]

                          to constitute a violation of section 274A(a)(1)(B)
                          with respect to that individual and the applicable
                          civil monetary penalty under section 274A(e)(5)
                          shall be (notwithstanding the amounts specified in
                          such section) no less than $500 and no more than
                          $1,000 for each individual with respect to whom
                          such violation occurred.
                              (iii) Continued employment after final
                          nonconfirmation.--If the person or other entity
                          continues to employ (or to recruit or refer) an
                          individual after receiving final nonconfirmation,
                          a rebuttable presumption is created that the
                          person or entity has violated section
                          274A(a)(1)(A). The previous sentence shall not
                          apply in any prosecution under section 274A(f)(1).

        (b) Citizen Attestation Pilot Program.--
                (1) In general.--Except as provided in paragraphs (3)
            through (5), the procedures applicable under the citizen
            attestation pilot program under this subsection shall be the
            same procedures as those under the basic pilot program under
            subsection (a).
                (2) Restrictions.--
                        (A) State document requirement to participate in
                    pilot program.--The Attorney General may not provide for
                    the operation of the citizen attestation pilot program
                    in a State unless each driver's license or similar
                    identification document described in section
                    274A(b)(1)(D)(i) issued by the State--
                              (i) contains a photograph of the individual
                          involved, and
                              (ii) has been determined by the Attorney
                          General to have security features, and to have
                          been issued through application and issuance
                          procedures, which make such document sufficiently
                          resistant to counterfeiting, tampering, and
                          fraudulent use that it is a reliable means of
                          identification for purposes of this section.
                        (B) Authorization to limit employer participation.--
                    The Attorney General may restrict the number of persons
                    or other entities that may elect to participate in the
                    citizen attestation pilot program under this subsection
                    as the Attorney General determines to be necessary to
                    produce a representative sample of employers and to
                    reduce the potential impact of fraud.
                (3) No confirmation required for certain individuals
            attesting to u.s. citizenship.--In the case of a person or other
            entity hiring (or recruiting or referring) an individual under
            the citizen attestation pilot program, if the individual attests
            to United States citizenship (under penalty of perjury on an I-9
            or similar form which form states on its face the criminal and
            other penalties provided under law for a false representation of
            United States citizenship)--
                        (A) the person or entity may fulfill the requirement
                    to examine documentation contained in subparagraph (A)
                    of section 274A(b)(1) by examining a document specified
                    in either subparagraph (B)(i) or (D) of such section;
                    and
                        (B) the person or other entity is not required to
                    comply with respect to such individual with the
                    procedures

    [[Page 110 STAT. 3009-663]]

                    described in paragraphs (3) and (4) of subsection (a),
                    but only if the person or entity retains the form and
                    makes it available for inspection in the same manner as
                    in the case of an I-9 form under section 274A(b)(3).
                (4) Waiver of document presentation requirement in certain
            cases.--
                        (A) In general.--In the case of a person or entity
                    that elects, in a manner specified by the Attorney
                    General consistent with subparagraph (B), to participate
                    in the pilot program under this paragraph, if an
                    individual being hired (or recruited or referred)
                    attests (in the manner described in paragraph (3)) to
                    United States citizenship and the person or entity
                    retains the form on which the attestation is made and
                    makes it available for inspection in the same manner as
                    in the case of an I-9 form under section 274A(b)(3), the
                    person or entity is not required to comply with the
                    procedures described in section 274A(b).
                        (B) Restriction.--The Attorney General shall
                    restrict the election under this paragraph to no more
                    than 1,000 employers and, to the extent practicable,
                    shall select among employers seeking to make such
                    election in a manner that provides for such an election
                    by a representative sample of employers.
                (5) Nonreviewable determinations.--The determinations of the
            Attorney General under paragraphs (2) and (4) are within the
            discretion of the Attorney General and are not subject to
            judicial or administrative review.

        (c) Machine-Readable-Document Pilot Program.--
                (1) In general.--Except as provided in paragraph (3), the
            procedures applicable under the machine-readable-document pilot
            program under this subsection shall be the same procedures as
            those under the basic pilot program under subsection (a).
                (2) State document requirement to participate in pilot
            program.--The Attorney General may not provide for the operation
            of the machine-readable-document pilot program in a State unless
            driver's licenses and similar identification documents described
            in section 274A(b)(1)(D)(i) issued by the State include a
            machine-readable social security account number.
                (3) Use of machine-readable documents.--If the individual
            whose identity and employment eligibility must be confirmed
            presents to the person or entity hiring (or recruiting or
            referring) the individual a license or other document described
            in paragraph (2) that includes a machine-readable social
            security account number, the person or entity must make an
            inquiry through the confirmation system by using a machine-
            readable feature of such document. If the individual does not
            attest to United States citizenship under section 274A(b)(2),
            the individual's identification or authorization number
            described in subsection (a)(1)(B) shall be provided as part of
            the inquiry.

        (d) Protection From Liability for Actions Taken on the Basis of
    Information Provided by the Confirmation System.--No person or entity
    participating in a pilot program shall be civilly or criminally liable
    under any law
    for any action taken in good faith reliance on information provided
    through the confirmation system.

    [[Page 110 STAT. 3009-664]]

    SEC. 404. EMPLOYMENT ELIGIBILITY CONFIRMATION SYSTEM.

        (a) In General.--The Attorney General shall establish a pilot
    program confirmation system through which the Attorney General (or a
    designee of the Attorney General, which may be a nongovernmental
    entity)--
                (1) responds to inquiries made by electing persons and other
            entities (including those made by the transmittal of data from
            machine-readable documents under the machine-readable pilot
            program) at any time through a toll-free telephone line or other
            toll-free electronic media concerning an individual's identity
            and whether the individual is authorized to be employed, and
                (2) maintains records of the inquiries that were made, of
            confirmations provided (or not provided), and of the codes
            provided to inquirers as evidence of their compliance with their
            obligations under the pilot programs.

    To the extent practicable, the Attorney General shall seek to establish
    such a system using one or more nongovernmental entities.
        (b) Initial Response.--The confirmation system shall provide
    confirmation or a tentative nonconfirmation of an individual's identity
    and employment eligibility within 3 working days of the initial inquiry.
    If providing confirmation or tentative nonconfirmation, the confirmation
    system shall provide an appropriate code indicating such confirmation or
    such nonconfirmation.
        (c) Secondary Verification Process in Case of Tentative
    Nonconfirmation.--In cases of tentative nonconfirmation, the Attorney
    General shall specify, in consultation with the Commissioner of Social
    Security and the Commissioner of the Immigration and Naturalization
    Service, an available secondary verification process to confirm the
    validity of information provided and to provide a final confirmation or
    nonconfirmation within 10 working days after the date of the tentative
    nonconfirmation. When final confirmation or nonconfirmation is provided,
    the confirmation system shall provide an appropriate code indicating
    such confirmation or nonconfirmation.
        (d) Design and Operation of System.--The confirmation system shall
    be designed and operated--
                (1) to maximize its reliability and ease of use by persons
            and other entities making elections under section 402(a) of this
            division consistent with insulating and protecting the privacy
            and security of the underlying information;
                (2) to respond to all inquiries made by such persons and
            entities on whether individuals are authorized to be employed
            and to register all times when such inquiries are not received;
                (3) with appropriate administrative, technical, and physical
            safeguards to prevent unauthorized disclosure of personal
            information; and
                (4) to have reasonable safeguards against the system's
            resulting in unlawful discriminatory practices based on national
            origin or citizenship status, including--
                        (A) the selective or unauthorized use of the system
                    to verify eligibility;
                        (B) the use of the system prior to an offer of
                    employment; or
                        (C) the exclusion of certain individuals from
                    consideration for employment as a result of a perceived
                    likelihood

    [[Page 110 STAT. 3009-665]]

                    that additional verification will be required, beyond
                    what is required for most job applicants.

        (e) Responsibilities of the Commissioner of Social Security.--As
    part of the confirmation system, the Commissioner of Social Security, in
    consultation with the entity responsible for administration of the
    system, shall establish a reliable, secure method, which, within the
    time periods specified under subsections (b) and (c), compares the name
    and social security account number provided in an inquiry against such
    information maintained by the Commissioner in order to confirm (or not
    confirm) the validity of the information provided regarding an
    individual whose identity and employment eligibility must be confirmed,
    the correspondence of the name and number, and whether the individual
    has presented a social security account number that is not valid for
    employment. The Commissioner shall not disclose or release social
    security information (other than such confirmation or nonconfirmation).
        (f) Responsibilities of the Commissioner of the Immigration and
    Naturalization Service.--As part of the confirmation system, the
    Commissioner of the Immigration and Naturalization Service, in
    consultation with the entity responsible for administration of the
    system, shall establish a reliable, secure method, which, within the
    time periods specified under subsections (b) and (c), compares the name
    and alien identification or authorization number described in section
    403(a)(1)(B) of this division which are provided in an inquiry against
    such information maintained by the Commissioner in order to confirm (or
    not confirm) the validity of the information provided, the
    correspondence of the name and number, and whether the alien is
    authorized to be employed in the United States.
        (g) Updating Information.--The Commissioners of Social Security and
    the Immigration and Naturalization Service shall update their
    information in a manner that promotes the maximum accuracy and shall
    provide a process for the prompt correction of erroneous information,
    including instances in which it is brought to their attention in the
    secondary verification process described in subsection (c).
        (h) Limitation on Use of the Confirmation System and Any Related
    Systems.--
                (1) In general.--Notwithstanding any other provision of law,
            nothing in this subtitle shall be construed to permit or allow
            any department, bureau, or other agency of the United States
            Government to utilize any information, data base, or other
            records assembled under this subtitle for any other purpose
            other than as provided for under a pilot program.
                (2) No national identification card.--Nothing in this
            subtitle shall be construed to authorize, directly or
            indirectly, the issuance or use of national identification cards
            or the establishment of a national identification card.

    SEC. 405. REPORTS.

        The Attorney General shall submit to the Committees on the Judiciary
    of the House of Representatives and of the Senate reports on the pilot
    programs within 3 months after the end of the third and fourth years in
    which the programs are in effect. Such reports shall--
                (1) assess the degree of fraudulent attesting of United
            States citizenship,

    [[Page 110 STAT. 3009-666]]

                (2) include recommendations on whether or not the pilot
            programs should be continued or modified, and
                (3) assess the benefits of the pilot programs to employers
            and the degree to which they assist in the enforcement of
            section 274A.

           Subtitle B--Other Provisions Relating to Employer Sanctions

    SEC. 411. LIMITING LIABILITY FOR CERTAIN TECHNICAL VIOLATIONS OF
                PAPERWORK REQUIREMENTS.

        (a) In General.--Section 274A(b) (8 U.S.C. 1324a(b)) is amended by
    adding at the end the following new paragraph:
                ``(6) Good faith compliance.--
                        ``(A) In general.--Except as provided in
                    subparagraphs (B) and (C), a person or entity is
                    considered to have complied with a requirement of this
                    subsection notwithstanding a technical or procedural
                    failure to meet such requirement if there was a good
                    faith attempt to comply with the requirement.
                        ``(B) Exception if failure to correct after
                    notice.--Subparagraph (A) shall not apply if--
                              ``(i) the Service (or another enforcement
                          agency) has explained to the person or entity the
                          basis for the failure,
                              ``(ii) the person or entity has been provided
                          a period of not less than 10 business days
                          (beginning after the date of the explanation)
                          within which to correct the failure, and
                              ``(iii) the person or entity has not corrected
                          the failure voluntarily within such period.
                        ``(C) Exception for pattern or practice violators.--
                    Subparagraph (A) shall not apply to a person or entity
                    that has or is engaging in a pattern or practice of
                    violations of subsection (a)(1)(A) or (a)(2).''.

        (b) <<NOTE: 8 USC 1324a note.>>  Effective Date.--The amendment made
    by subsection (a) shall apply to failures occurring on or after the date
    of the enactment of this Act.

    SEC. 412. PAPERWORK AND OTHER CHANGES IN THE EMPLOYER SANCTIONS PROGRAM.

        (a) Reducing the Number of Documents Accepted for Employment
    Verification.--Section 274A(b)(1) (8 U.S.C. 1324a(b)(1)) is amended--
                (1) in subparagraph (B)--
                        (A) by striking clauses (ii) through (iv),
                        (B) in clause (v), by striking ``or other alien
                    registration card, if the card'' and inserting ``, alien
                    registration card, or other document designated by the
                    Attorney General, if the document'' and redesignating
                    such clause as clause (ii), and
                        (C) in clause (ii), as so redesignated--
                              (i) in subclause (I), by striking ``or''
                          before ``such other personal identifying
                          information'' and inserting ``and'',
                              (ii) by striking ``and'' at the end of
                          subclause (I),

    [[Page 110 STAT. 3009-667]]

                              (iii) by striking the period at the end of
                          subclause (II) and inserting ``, and'', and
                              (iv) by adding at the end the following new
                          subclause:
                                        ``(III) contains security features
                                    to make it resistant to tampering,
                                    counterfeiting, and fraudulent use.'';
                (2) in subparagraph (C)--
                        (A) by adding ``or'' at the end of clause (i),
                        (B) by striking clause (ii), and
                        (C) by redesignating clause (iii) as clause (ii);
                    and
                (3) by adding at the end the following new subparagraph:
                        ``(E) Authority to prohibit use of certain
                    documents.--If the Attorney General finds, by
                    regulation, that any document described in subparagraph
                    (B), (C), or (D) as establishing employment
                    authorization or identity does not reliably establish
                    such authorization or identity or is being used
                    fraudulently to an unacceptable degree, the Attorney
                    General may prohibit or place conditions on its use for
                    purposes of this subsection.''.

        (b) Reduction of Paperwork for Certain Employees.--Section 274A(a)
    (8 U.S.C. 1324a(a)) is amended by adding at the end the following new
    paragraph:
                ``(6) Treatment of documentation for certain employees.--
                        ``(A) In general.--For purposes of this section,
                    if--
                              ``(i) an individual is a member of a
                          collective-bargaining unit and is employed, under
                          a collective bargaining agreement entered into
                          between one or more employee organizations and an
                          association of two or more employers, by an
                          employer that is a member of such association, and
                              ``(ii) within the period specified in
                          subparagraph (B), another employer that is a
                          member of the association (or an agent of such
                          association on behalf of the employer) has
                          complied with the requirements of subsection (b)
                          with respect to the employment of the individual,
                    the subsequent employer shall be deemed to have complied
                    with the requirements of subsection (b) with respect to
                    the hiring of the employee and shall not be liable for
                    civil penalties described in subsection (e)(5).
                        ``(B) Period.--The period described in this
                    subparagraph is 3 years, or, if less, the period of time
                    that the individual is authorized to be employed in the
                    United States.
                        ``(C) Liability.--
                              ``(i) In general.--If any employer that is a
                          member of an association hires for employment in
                          the United States an individual and relies upon
                          the provisions of subparagraph (A) to comply with
                          the requirements of subsection (b) and the
                          individual is an alien not authorized to work in
                          the United States, then for the purposes of
                          paragraph (1)(A), subject to clause (ii), the
                          employer shall be presumed to have known at the
                          time of hiring or afterward that the individual

    [[Page 110 STAT. 3009-668]]

                          was an alien not authorized to work in the United
                          States.
                              ``(ii) Rebuttal of presumption.--The
                          presumption established by clause (i) may be
                          rebutted by the employer only through the
                          presentation of clear and convincing evidence that
                          the employer did not know (and could not
                          reasonably have known) that the individual at the
                          time of hiring or afterward was an alien not
                          authorized to work in the United States.
                              ``(iii) Exception.--Clause (i) shall not apply
                          in any prosecution under subsection (f)(1).''.

        (c) Elimination of Dated Provisions.--Section 274A (8 U.S.C. 1324a)
    is amended by striking subsections (i) through (n).
        (d) Clarification of Application to Federal Government.--Section
    274A(a) (8 U.S.C. 1324a(a)), as amended by subsection (b), is amended by
    adding at the end the following new paragraph:
                ``(7) Application to federal government.--For purposes of
            this section, the term `entity' includes an entity in any branch
            of the Federal Government.''.

        (e) <<NOTE: 8 USC 1324a note.>>  Effective Dates.--
                (1) The amendments made by subsection (a) shall apply with
            respect to hiring (or recruitment or referral) occurring on or
            after such date (not later than 12 months after the date of the
            enactment of this Act) as the Attorney General shall designate.
                (2) The amendment made by subsection (b) shall apply to
            individuals hired on or after 60 days after the date of the
            enactment of this Act.
                (3) The amendment made by subsection (c) shall take effect
            on the date of the enactment of this Act.
                (4) The amendment made by subsection (d) applies to hiring
            occurring before, on, or after the date of the enactment of this
            Act, but no penalty shall be imposed under subsection (e) or (f)
            of section 274A of the Immigration and Nationality Act for such
            hiring occurring before such date.

    SEC. 413. REPORT ON ADDITIONAL AUTHORITY OR RESOURCES NEEDED FOR
                ENFORCEMENT OF EMPLOYER SANCTIONS PROVISIONS.

        (a) <<NOTE: 8 USC 1324a note.>>  In General.--Not later than 1 year
    after the date of the enactment of this Act, the Attorney General shall
    submit to the Committees on the Judiciary of the House of
    Representatives and of the Senate a report on any additional authority
    or resources needed--
                (1) by the Immigration and Naturalization Service in order
            to enforce section 274A of the Immigration and Nationality Act,
            or
                (2) by Federal agencies in order to carry out the Executive
            Order of February 13, 1996 (entitled ``Economy and Efficiency in
            Government Procurement Through Compliance with Certain
            Immigration and Naturalization Act Provisions'') and to expand
            the restrictions in such order to cover agricultural subsidies,
            grants, job training programs, and other Federally subsidized
            assistance programs.

        (b) Reference to Increased Authorization of Appropriations.--For
    provision increasing the authorization of appropriations

    [[Page 110 STAT. 3009-669]]

    for investigators for violations of sections 274 and 274A of the
    Immigration and Nationality Act, see section 131 of this division.

    SEC. 414. REPORTS ON EARNINGS OF ALIENS NOT AUTHORIZED TO WORK.

        (a) In General.--Subsection (c) of section 290 (8 U.S.C. 1360) is
    amended to read as follows:
        ``(c)(1) Not later than 3 months after the end of each fiscal year
    (beginning with fiscal year 1996), the Commissioner of Social Security
    shall report to the Committees on the Judiciary of the House of
    Representatives and the Senate on the aggregate quantity of social
    security account numbers issued to aliens not authorized to be employed,
    with respect to which, in such fiscal year, earnings were reported to
    the Social Security Administration.
        ``(2) If earnings are reported on or after January 1, 1997, to the
    Social Security Administration on a social security account number
    issued to an alien not authorized to work in the United States, the
    Commissioner of Social Security shall provide the Attorney General with
    information regarding the name and address of the alien, the name and
    address of the person reporting the earnings, and the amount of the
    earnings. The information shall be provided in an electronic form agreed
    upon by the Commissioner and the Attorney General.''.
        (b) <<NOTE: 8 USC 1360 note.>>  Report on Fraudulent Use of Social
    Security Account Numbers.--The Commissioner of Social Security shall
    transmit to the Attorney General, by not later than 1 year after the
    date of the enactment of this Act, a report on the extent to which
    social security account numbers and cards are used by aliens for
    fraudulent purposes.

    SEC. 415. AUTHORIZING MAINTENANCE OF CERTAIN INFORMATION ON ALIENS.

        Section 264 (8 U.S.C. 1304) is amended by adding at the end the
    following new subsection:
        ``(f) Notwithstanding any other provision of law, the Attorney
    General is authorized to require any alien to provide the alien's social
    security account number for purposes of inclusion in any record of the
    alien maintained by the Attorney General or the Service.''.

    SEC. 416. SUBPOENA AUTHORITY.

        Section 274A(e)(2) (8 U.S.C. 1324a(e)(2)) is amended--
                (1) by striking ``and'' at the end of subparagraph (A);
                (2) by striking the period at the end of subparagraph (B)
            and inserting ``, and''; and
                (3) by inserting after subparagraph (B) the following:
                        ``(C) immigration officers designated by the
                    Commissioner may compel by subpoena the attendance of
                    witnesses and the production of evidence at any
                    designated place prior to the filing of a complaint in a
                    case under paragraph (2).''.

    [[Page 110 STAT. 3009-670]]

           Subtitle C--Unfair Immigration-Related Employment Practices

    SEC. 421. TREATMENT OF CERTAIN DOCUMENTARY PRACTICES AS UNFAIR
                IMMIGRATION-RELATED EMPLOYMENT PRACTICES.

        (a) In General.--Section 274B(a)(6) (8 U.S.C. 1324b(a)(6)) is
    amended--
                (1) by striking ``For purposes of paragraph (1), a'' and
            inserting ``A''; and
                (2) by striking ``relating to the hiring of individuals''
            and inserting the following: ``if made for the purpose or with
            the intent of discriminating against an individual in violation
            of paragraph (1)''.

        (b) <<NOTE: 8 USC 1324b note.>>  Effective Date.--The amendments
    made by subsection (a) shall apply to requests made on or after the date
    of the enactment of this Act.

                  TITLE V--RESTRICTIONS ON BENEFITS FOR ALIENS

      Subtitle A--Eligibility of Aliens for Public Assistance and Benefits

    SEC. 501. EXCEPTION TO INELIGIBILITY FOR PUBLIC BENEFITS FOR CERTAIN
                BATTERED ALIENS.

        Section 431 of the Personal Responsibility and Work Opportunity
    Reconciliation Act of 1996 (8 U.S.C. 1641) is amended by adding at the
    end the following new subsection:
        ``(c) Treatment of Certain Battered Aliens as Qualified Aliens.--For
    purposes of this title, the term `qualified alien' includes--
                ``(1) an alien who--
                        ``(A) has been battered or subjected to extreme
                    cruelty in the United States by a spouse or a parent, or
                    by a member of the spouse or parent's family residing in
                    the same household as the alien and the spouse or parent
                    consented to, or acquiesced in, such battery or cruelty,
                    but only if (in the opinion of the Attorney General,
                    which opinion is not subject to review by any court)
                    there is a substantial connection between such battery
                    or cruelty and the need for the benefits to be provided;
                    and
                        ``(B) has been approved or has a petition pending
                    which sets forth a prima facie case for--
                              ``(i) status as a spouse or a child of a
                          United States citizen pursuant to clause (ii),
                          (iii), or (iv) of section 204(a)(1)(A) of the
                          Immigration and Nationality Act,
                              ``(ii) classification pursuant to clause (ii)
                          or (iii) of section 204(a)(1)(B) of the Act,
                              ``(iii) suspension of deportation and
                          adjustment of status pursuant to section 244(a)(3)
                          of such Act, or

    [[Page 110 STAT. 3009-671]]

                              ``(iv) status as a spouse or child of a United
                          States citizen pursuant to clause (i) of section
                          204(a)(1)(A) of such Act, or classification
                          pursuant to clause (i) of section 204(a)(1)(B) of
                          such Act; or
                ``(2) an alien--
                        ``(A) whose child has been battered or subjected to
                    extreme cruelty in the United States by a spouse or a
                    parent of the alien (without the active participation of
                    the alien in the battery or cruelty), or by a member of
                    the spouse or parent's family residing in the same
                    household as the alien and the spouse or parent
                    consented or acquiesced to such battery or cruelty, and
                    the alien did not actively participate in such battery
                    or cruelty, but only if (in the opinion of the Attorney
                    General, which opinion is not subject to review by any
                    court) there is a substantial connection between such
                    battery or cruelty and the need for the benefits to be
                    provided; and
                        ``(B) who meets the requirement of clause (ii) of
                    subparagraph (A).

    This subsection shall not apply to an alien during any period in which
    the individual responsible for such battery or cruelty resides in the
    same household or family eligibility unit as the individual subjected to
    such battery or cruelty.''.

    SEC. 502. <<NOTE: 8 USC 1621 note.>>  PILOT PROGRAMS ON LIMITING
                ISSUANCE OF DRIVER'S LICENSES TO ILLEGAL ALIENS.

        (a) In General.--Pursuant to guidelines prescribed by the Attorney
    General not later than 6 months after the date of the enactment of this
    Act, all States may conduct pilot programs within their State to
    determine the viability, advisability, and cost-effectiveness of the
    State's denying driver's licenses to aliens who are not lawfully present
    in the United States. Under a pilot program a State may deny a driver's
    license to aliens who are not lawfully present in the United States.
    Such program shall be conducted in cooperation with relevant State and
    local authorities.
        (b) Report.--Not later than 3 years after the date of the enactment
    of this Act, the Attorney General shall submit a report to the Judiciary
    Committees of the House of Representatives and of the Senate on the
    results of the pilot programs conducted under subsection (a).

    SEC. 503. INELIGIBILITY OF ALIENS NOT LAWFULLY PRESENT FOR SOCIAL
                SECURITY BENEFITS.

        (a) In General.--Section 202 of the Social Security Act (42 U.S.C.
    402) is amended by adding at the end the following new subsection:

                       ``Limitation on Payments to Aliens

        ``(y) Notwithstanding any other provision of law, no monthly benefit
    under this title shall be payable to any alien in the United States for
    any month during which such alien is not lawfully present in the United
    States as determined by the Attorney General.''.
        (b) <<NOTE: 42 USC 402 note.>>  Effective Date.--The amendment made
    by subsection (a) shall apply with respect to benefits for which
    applications are filed on or after the first day of the first month that
    begins at least 60 days after the date of the enactment of this Act.

    [[Page 110 STAT. 3009-672]]

    SEC. 504. PROCEDURES FOR REQUIRING PROOF OF CITIZENSHIP FOR FEDERAL
                PUBLIC BENEFITS.

        Section 432(a) of the Personal Responsibility and Work Opportunity
    Reconciliation Act of 1996 (8 U.S.C. 1642) is amended--
                (1) by inserting ``(1)'' after the dash, and
                (2) by adding at the end the following:

        ``(2) Not later than 18 months after the date of the enactment of
    this Act, the Attorney General, in consultation with the
    Secretary of Health and Human Services, shall also establish procedures
    for a person applying for a Federal public benefit (as defined in
    section 401(c)) to provide proof of citizenship in a fair and
    nondiscriminatory manner.''.

    SEC. 505. <<NOTE: 8 USC 1623.>>  LIMITATION ON ELIGIBILITY FOR
                PREFERENTIAL TREATMENT OF ALIENS NOT LAWFULLY PRESENT ON
                BASIS OF RESIDENCE FOR HIGHER EDUCATION BENEFITS.

        (a) In General.--Notwithstanding any other provision of law, an
    alien who is not lawfully present in the United States shall not be
    eligible on the basis of residence within a State (or a political
    subdivision) for any postsecondary education benefit unless a citizen or
    national of the United States is eligible for such a benefit (in no less
    an amount, duration, and scope) without regard to whether the citizen or
    national is such a resident.
        (b) Effective Date.--This section shall apply to benefits provided
    on or after July 1, 1998.

    SEC. 506. <<NOTE: 8 USC 1611 note.>>  STUDY AND REPORT ON ALIEN STUDENT
                ELIGIBILITY FOR POSTSECONDARY FEDERAL STUDENT FINANCIAL
                ASSISTANCE.

        (a) GAO Study and Report.--
                (1) Study.--The Comptroller General shall conduct a study to
            determine the extent to which aliens who are not lawfully
            admitted for permanent residence are receiving postsecondary
            Federal student financial assistance.
                (2) Report.--Not later than 1 year after the date of the
            enactment of this Act, the Comptroller General shall submit a
            report to the appropriate committees of the Congress on the
            study conducted under paragraph (1).

        (b) Report on Computer Matching Program.--
                (1) In general.--Not later than one year after the date of
            the enactment of this Act, the Secretary of Education and the
            Commissioner of Social Security shall jointly submit to the
            appropriate committees of the Congress a report on the computer
            matching program of the Department of Education under section
            484(p) of the Higher Education Act of 1965.
                (2) Report elements.--The report under paragraph (1) shall
            include the following:
                        (A) An assessment by the Secretary and the
                    Commissioner of the effectiveness of the computer
                    matching program, and a justification for such
                    assessment.
                        (B) The ratio of successful matches under the
                    program to inaccurate matches.
                        (C) Such other information as the Secretary and the
                    Commissioner jointly consider appropriate.

        (c) Appropriate Committees of the Congress.--For purposes of this
    section the term ``appropriate committees of the Congress'' means the
    Committee on Economic and Educational Opportunities

    [[Page 110 STAT. 3009-673]]

    and the Committee on the Judiciary of the House of Representatives and
    the Committee on Labor and Human Resources and the Committee on the
    Judiciary of the Senate.

    SEC. 507. VERIFICATION OF IMMIGRATION STATUS FOR PURPOSES OF SOCIAL
                SECURITY AND HIGHER EDUCATIONAL ASSISTANCE.

        (a) Social Security Act State Income and Eligibility Verification
    Systems.--Section 1137(d)(4)(B)(i)) of the Social Security Act (42
    U.S.C. 1320b-7(d)(4)(B)(i)) is amended to read as follows:
                              ``(i) the State shall transmit to the
                          Immigration and Naturalization Service either
                          photostatic or other similar copies of such
                          documents, or information from such documents, as
                          specified by the Immigration and Naturalization
                          Service, for official verification,''.

        (b) Eligibility for Assistance Under Higher Education Act of 1965.--
    Section 484(g)(4)(B)(i) of the Higher Education Act of 1965 (20 U.S.C.
    1091(g)(4)(B)(i)) is amended to read as follows:
                              ``(i) the institution shall transmit to the
                          Immigration and Naturalization Service either
                          photostatic or other similar copies of such
                          documents, or information from such documents, as
                          specified by the Immigration and Naturalization
                          Service, for official verification,''.

    SEC. 508. NO VERIFICATION REQUIREMENT FOR NONPROFIT CHARITABLE
                ORGANIZATIONS.

        Section 432 of the Personal Responsibility and Work Opportunity
    Reconciliation Act of 1996 (8 U.S.C. 1642) is amended by adding at the
    end the following new subsection:
        ``(d) No Verification Requirement for Nonprofit Charitable
    Organizations.--Subject to subsection (a), a nonprofit charitable
    organization, in providing any Federal public benefit (as defined in
    section 401(c)) or any State or local public benefit (as defined in
    section 411(c)), is not required under this title to determine, verify,
    or otherwise require proof of eligibility of any applicant for such
    benefits.''.

    SEC. 509. GAO STUDY OF PROVISION OF MEANS-TESTED PUBLIC BENEFITS TO
                ALIENS WHO ARE NOT QUALIFIED ALIENS ON BEHALF OF ELIGIBLE
                INDIVIDUALS.

        Not later than 180 days after the date of the enactment of this Act,
    the Comptroller General shall submit to the Committees on the Judiciary
    of the House of Representatives and of the Senate and to the Inspector
    General of the Department of Justice a report on the extent to which
    means-tested public benefits are being paid or provided to aliens who
    are not qualified aliens (as defined in section 431(b) of the Personal
    Responsibility and Work Opportunity Reconciliation Act of 1996) in order
    to provide such benefits to individuals who are United States citizens
    or qualified aliens (as so defined). Such report shall address the
    locations in which such benefits are provided and the incidence of fraud
    or misrepresentation in connection with the provision of such benefits.

    SEC. 510. TRANSITION FOR ALIENS CURRENTLY RECEIVING BENEFITS UNDER THE
                FOOD STAMP PROGRAM.

        Effective as if included in the enactment of the Personal
    Responsibility and Work Opportunity Reconciliation Act of 1996,

    [[Page 110 STAT. 3009-674]]

    subclause (I) of section 402(a)(2)(D)(ii) (8 U.S.C. 1612(a)(2)(D)(ii))
    is amended to read as follows:
                                        ``(I) In general.--With respect to
                                    the specified Federal program described
                                    in paragraph (3)(B), ineligibility under
                                    paragraph (1) shall not apply until
                                    April 1, 1997, to an alien who received
                                    benefits under such program on the date
                                    of enactment of this Act, unless such
                                    alien is determined to be ineligible to
                                    receive such benefits under the Food
                                    Stamp Act of 1977. The State agency
                                    shall recertify the eligibility of all
                                    such aliens during the period beginning
                                    April 1, 1997, and ending August 22,
                                    1997.''.

                       Subtitle B--Public Charge Exclusion

    SEC. 531. GROUND FOR EXCLUSION.

        (a) In General.--Paragraph (4) of section 212(a) (8 U.S.C. 1182(a))
    is amended to read as follows:
                ``(4) Public charge.--
                        ``(A) In general.--Any alien who, in the opinion of
                    the consular officer at the time of application for a
                    visa, or in the opinion of the Attorney General at the
                    time of application for admission or adjustment of
                    status, is likely at any time to become a public charge
                    is excludable.
                        ``(B) Factors to be taken into account.--(i) In
                    determining whether an alien is excludable under this
                    paragraph, the consular officer or the Attorney General
                    shall at a minimum consider the alien's--
                              ``(I) age;
                              ``(II) health;
                              ``(III) family status;
                              ``(IV) assets, resources, and financial
                          status; and
                              ``(V) education and skills.
                        ``(ii) In addition to the factors under clause (i),
                    the consular officer or the Attorney General may also
                    consider any affidavit of support under section 213A for
                    purposes of exclusion under this paragraph.
                        ``(C) Family-sponsored immigrants.--Any alien who
                    seeks admission or adjustment of status under a visa
                    number issued under section 201(b)(2) or 203(a) is
                    excludable under this paragraph unless--
                              ``(i) the alien has obtained--
                                        ``(I) status as a spouse or a child
                                    of a United States citizen pursuant to
                                    clause (ii), (iii), or (iv) of section
                                    204(a)(1)(A), or
                                        ``(II) classification pursuant to
                                    clause (ii) or (iii) of section
                                    204(a)(1)(B); or
                              ``(ii) the person petitioning for the alien's
                          admission (including any additional sponsor
                          required under section 213A(f)) has executed an
                          affidavit of support described in section 213A
                          with respect to such alien.
                        ``(D) Certain employment-based immigrants.--Any
                    alien who seeks admission or adjustment of status under
                    a visa number issued under section 203(b) by virtue of a
                    classification petition filed by a relative of the alien

    [[Page 110 STAT. 3009-675]]

                    (or by an entity in which such relative has a
                    significant ownership interest) is excludable under this
                    paragraph unless such relative has executed an affidavit
                    of support described in section 213A with respect to
                    such alien.''.

        (b) <<NOTE: 8 USC 1182 note.>>  Effective Date.--The amendment made
    by subsection (a) shall apply to applications submitted on or after such
    date, not earlier than 30 days and not later than 60 days after the date
    the Attorney General promulgates under section 551(c)(2) of this
    division a standard form for an affidavit of support, as the Attorney
    General shall specify, but subparagraphs (C) and (D) of section
    212(a)(4) of the Immigration and Nationality Act, as so amended, shall
    not apply to applications with respect to which an official interview
    with an immigration officer was conducted before such effective date.

                        Subtitle C--Affidavits of Support

    SEC. 551. REQUIREMENTS FOR SPONSOR'S AFFIDAVIT OF SUPPORT.

        (a) In General.--Section 213A (8 U.S.C. 1183a), as inserted by
    section 423(a) of the Personal Responsibility and Work Opportunity
    Reconciliation Act of 1996, is amended to read as follows:

                ``requirements for sponsor's affidavit of support

        ``Sec. 213A. (a) Enforceability.--
                ``(1) Terms of affidavit.--No affidavit of support may be
            accepted by the Attorney General or by any consular officer to
            establish that an alien is not excludable as a public charge
            under section 212(a)(4) unless such affidavit is executed by a
            sponsor of the alien as a contract--
                        ``(A) in which the sponsor agrees to provide support
                    to maintain the sponsored alien at an annual income that
                    is not less than 125 percent of the Federal poverty line
                    during the period in which the affidavit is enforceable;
                        ``(B) that is legally enforceable against the
                    sponsor by the sponsored alien, the Federal Government,
                    any State (or any political subdivision of such State),
                    or by any other entity that provides any means-tested
                    public benefit (as defined in subsection (e)),
                    consistent with the provisions of this section; and
                        ``(C) in which the sponsor agrees to submit to the
                    jurisdiction of any Federal or State court for the
                    purpose of actions brought under subsection (b)(2).
                ``(2) Period of enforceability.--An affidavit of support
            shall be enforceable with respect to benefits provided for an
            alien before the date the alien is naturalized as a citizen of
            the United States, or, if earlier, the termination date provided
            under paragraph (3).
                ``(3) Termination of period of enforceability upon
            completion of required period of employment, etc.--
                        ``(A) In general.--An affidavit of support is not
                    enforceable after such time as the alien (i) has worked
                    40 qualifying quarters of coverage as defined under
                    title II of the Social Security Act or can be credited
                    with such qualifying quarters as provided under
                    subparagraph (B), and (ii) in the case of any such
                    qualifying quarter creditable for any period beginning
                    after December 31, 1996, did

    [[Page 110 STAT. 3009-676]]

                    not receive any Federal means-tested public benefit (as
                    provided under section 403 of the Personal
                    Responsibility and Work Opportunity Reconciliation Act
                    of 1996) during any such period.
                        ``(B) Qualifying quarters.--For purposes of this
                    section, in determining the number of qualifying
                    quarters of coverage under title II of the Social
                    Security Act an alien shall be credited with--
                              ``(i) all of the qualifying quarters of
                          coverage as defined under title II of the Social
                          Security Act worked by a parent of such alien
                          while the alien was under age 18, and
                              ``(ii) all of the qualifying quarters worked
                          by a spouse of such alien during their marriage
                          and the alien remains married to such spouse or
                          such spouse is deceased.
                    No such qualifying quarter of coverage that is
                    creditable under title II of the Social Security Act for
                    any period beginning after December 31, 1996, may be
                    credited to an alien under clause (i) or (ii) if the
                    parent or spouse (as the case may be) of such alien
                    received any Federal means-tested public benefit (as
                    provided under section 403 of the Personal
                    Responsibility and Work Opportunity Reconciliation Act
                    of 1996) during the period for which such qualifying
                    quarter of coverage is so credited.
                        ``(C) Provision of information to save system.--The
                    Attorney General shall ensure that appropriate
                    information regarding the application of this paragraph
                    is provided to the system for alien verification of
                    eligibility (SAVE) described in section 1137(d)(3) of
                    the Social Security Act.

        ``(b) Reimbursement of Government Expenses.--
                ``(1) Request for reimbursement.--
                        ``(A) Requirement.--Upon notification that a
                    sponsored alien has received any means-tested public
                    benefit, the appropriate nongovernmental entity which
                    provided such benefit or the appropriate entity of the
                    Federal Government, a State, or any political
                    subdivision of a State shall request reimbursement by
                    the sponsor in an amount which is equal to the
                    unreimbursed costs of such benefit.
                        ``(B) Regulations.--The Attorney General, in
                    consultation with the heads of other appropriate Federal
                    agencies, shall prescribe such regulations as may be
                    necessary to carry out subparagraph (A).
                ``(2) Actions to compel reimbursement.--
                        ``(A) In case of nonresponse.--If within 45 days
                    after a request for reimbursement under paragraph
                    (1)(A), the appropriate entity has not received a
                    response from the sponsor indicating a willingness to
                    commence payment an action may be brought against the
                    sponsor pursuant to the affidavit of support.
                        ``(B) In case of failure to pay.--If the sponsor
                    fails to abide by the repayment terms established by the
                    appropriate entity, the entity may bring an action
                    against the sponsor pursuant to the affidavit of
                    support.
                        ``(C) Limitation on actions.--No cause of action may
                    be brought under this paragraph later than 10 years
                    after

    [[Page 110 STAT. 3009-677]]

                    the date on which the sponsored alien last received any
                    means-tested public benefit to which the affidavit of
                    support applies.
                ``(3) Use of collection agencies.--If the appropriate entity
            under paragraph (1)(A) requests reimbursement from the sponsor
            or brings an action against the sponsor pursuant to the
            affidavit of support, the appropriate entity may appoint or hire
            an individual or other person to act on behalf of such entity
            acting under the authority of law for purposes of collecting any
            amounts owed.

        ``(c) Remedies.--Remedies available to enforce an affidavit of
    support under this section include any or all of the remedies described
    in section 3201, 3203, 3204, or 3205 of title 28, United States Code, as
    well as an order for specific performance and payment of legal fees and
    other costs of collection, and include corresponding remedies available
    under State
    law. A Federal agency may seek to collect amounts owed under this
    section in accordance with the provisions of subchapter II of chapter 37
    of title 31, United States Code.

        ``(d) Notification of Change of Address.--
                ``(1) General requirement.--The sponsor shall notify the
            Attorney General and the State in which the sponsored alien is
            currently a resident within 30 days of any change of address of
            the sponsor during the period in which an affidavit of support
            is enforceable.
                ``(2) Penalty.--Any person subject to the requirement of
            paragraph (1) who fails to satisfy such requirement shall, after
            notice and opportunity to be heard, be subject to a civil
            penalty of--
                        ``(A) not less than $250 or more than $2,000, or
                        ``(B) if such failure occurs with knowledge that the
                    sponsored alien has received any means-tested public
                    benefits (other than benefits described in section
                    401(b), 403(c)(2), or 411(b) of the Personal
                    Responsibility and Work Opportunity Reconciliation Act
                    of 1996) not less than $2,000 or more than $5,000.
            The Attorney General shall enforce this paragraph under
            appropriate regulations.

        ``(e) Jurisdiction.--An action to enforce an affidavit of support
    executed under subsection (a) may be brought against the sponsor in any
    appropriate court--
                ``(1) by a sponsored alien, with respect to financial
            support; or
                ``(2) by the appropriate entity of the Federal Government, a
            State or any political subdivision of a State, or by any other
            nongovernmental entity under subsection (b)(2), with respect to
            reimbursement.

        ``(f) Sponsor Defined.--
                ``(1) In general.--For purposes of this section the term
            `sponsor' in relation to a sponsored alien means an individual
            who executes an affidavit of support with respect to the
            sponsored alien and who--
                        ``(A) is a citizen or national of the United States
                    or an alien who is lawfully admitted to the United
                    States for permanent residence;
                        ``(B) is at least 18 years of age;

    [[Page 110 STAT. 3009-678]]

                        ``(C) is domiciled in any of the several States of
                    the United States, the District of Columbia, or any
                    territory or possession of the United States;
                        ``(D) is petitioning for the admission of the alien
                    under section 204; and
                        ``(E) demonstrates (as provided in paragraph (6))
                    the means to maintain an annual income equal to at least
                    125 percent of the Federal poverty line.
                ``(2) Income requirement case.--Such term also includes an
            individual who does not meet the requirement of paragraph (1)(E)
            but accepts joint and several liability together with an
            individual under paragraph (5).
                ``(3) Active duty armed services case.--Such term also
            includes an individual who does not meet the requirement of
            paragraph (1)(E) but is on active duty (other than active duty
            for training) in the Armed Forces of the United States, is
            petitioning for the admission of the alien under section 204 as
            the spouse or child of the individual, and demonstrates (as
            provided in paragraph (6)) the means to maintain an annual
            income equal to at least 100 percent of the Federal poverty
            line.
                ``(4) Certain employment-based immigrants case.--Such term
            also includes an individual--
                        ``(A) who does not meet the requirement of paragraph
                    (1)(D), but is the relative of the sponsored alien who
                    filed a classification petition for the sponsored alien
                    as an employment-based immigrant under section 203(b) or
                    who has a significant ownership interest in the entity
                    that filed such a petition; and
                        ``(B)(i) who demonstrates (as provided under
                    paragraph (6)) the means to maintain an annual income
                    equal to at least 125 percent of the Federal poverty
                    line, or
                        ``(ii) does not meet the requirement of paragraph
                    (1)(E) but accepts joint and several liability together
                    with an individual under paragraph (5).
                ``(5) Non-petitioning case.--Such term also includes an
            individual who does not meet the requirement of paragraph (1)(D)
            but who accepts joint and several liability with a petitioning
            sponsor under paragraph (2) or relative of an employment-based
            immigrant under paragraph (4) and who demonstrates (as provided
            under paragraph (6)) the means to maintain an annual income
            equal to at least 125 percent of the Federal poverty line.
                ``(6) Demonstration of means to maintain income.--
                        ``(A) In general.--
                              ``(i) Method of demonstration.--For purposes
                          of this section, a demonstration of the means to
                          maintain income shall include provision of a
                          certified copy of the individual's Federal income
                          tax return for the individual's 3 most recent
                          taxable years and a written statement, executed
                          under oath or as permitted under penalty of
                          perjury under section 1746 of title 28, United
                          States Code, that the copies are certified copies
                          of such returns.
                              ``(ii) Flexibility.--For purposes of this
                          section, aliens may demonstrate the means to
                          maintain income

    [[Page 110 STAT. 3009-679]]

                          through demonstration of significant assets of the
                          sponsored alien or of the sponsor, if such assets
                          are available for the support of the sponsored
                          alien.
                              ``(iii) Percent of poverty.--For purposes of
                          this section, a reference to an annual income
                          equal to at least a particular percentage of the
                          Federal poverty line means an annual income equal
                          to at least such percentage of the Federal poverty
                          line for a family unit of a size equal to the
                          number of members of the sponsor's household
                          (including family and non-family dependents) plus
                          the total number of other dependents and aliens
                          sponsored by that sponsor.
                        ``(B) Limitation.--The Secretary of State, or the
                    Attorney General in the case of adjustment of status,
                    may provide that the demonstration under subparagraph
                    (A) applies only to the most recent taxable year.

        ``(h) Federal Poverty Line Defined.--For purposes of this section,
    the term `Federal poverty line' means the level of income equal to the
    official poverty line (as defined by the Director of the Office of
    Management and Budget, as revised annually by the Secretary of Health
    and Human Services, in accordance with section 673(2) of the Omnibus
    Budget Reconciliation Act of 1981 (42 U.S.C. 9902)) that is applicable
    to a family of the size involved.
        ``(i) Sponsor's Social Security Account Number Required To Be
    Provided.--(1) An affidavit of support shall include the social security
    account number of each sponsor.
        ``(2) The Attorney General shall develop an automated system to
    maintain the social security account number data provided under
    paragraph (1).
        ``(3) The Attorney General shall submit an annual report to the
    Committees on the Judiciary of the House of Representatives and the
    Senate setting forth--
                ``(A) for the most recent fiscal year for which data are
            available the number of sponsors under this section and the
            number of sponsors in compliance with the financial obligations
            of this section; and
                ``(B) a comparison of such numbers with the numbers of such
            sponsors for the preceding fiscal year.''.

        (b) Conforming Amendments.--
                (1) Section 421(a)(1) and section 422(a)(1) of the Personal
            Responsibility and Work Opportunity Reconciliation Act of 1996
            (8 U.S.C. 1631(a)(1), 1632(a)(1)) are each amended by inserting
            ``and as amended by section 551(a) of the Illegal Immigration
            Reform and Immigrant Responsibility Act of 1996'' after
            ``section 423''.
                (2) <<NOTE: 8 USC 1183a note.>>  Section 423 of such Act (8
            U.S.C. 1138a note) is amended by striking subsection (c).

        (c) <<NOTE: 8 USC 1183a note.>>  Effective Date; Promulgation of
    Form.--
                (1) In general.--The amendments made by this section shall
            apply to affidavits of support executed on or after a date
            specified by the Attorney General, which date shall be not
            earlier than 60 days (and not later than 90 days) after the date
            the Attorney General formulates the form for such affidavits
            under paragraph (2).
                (2) Promulgation of form.--Not later than 90 days after the
            date of the enactment of this Act, the Attorney General, in
            consultation with the heads of other appropriate agencies,

    [[Page 110 STAT. 3009-680]]

            shall promulgate a standard form for an affidavit of support
            consistent with the provisions of section 213A of the
            Immigration and Nationality Act, as amended by subsection (a).

    SEC. 552. INDIGENCE AND BATTERED SPOUSE AND CHILD EXCEPTIONS TO FEDERAL
                ATTRIBUTION OF INCOME RULE.

        Section 421 of the Personal Responsibility and Work Opportunity
    Reconciliation Act of 1996 (8 U.S.C. 1631) is amended by adding at the
    end the following new subsection:
        ``(e) Indigence Exception.--
                ``(1) In general.--For an alien for whom an affidavit of
            support under section 213A of the Immigration and Nationality
            Act has been executed, if a determination described in paragraph
            (2) is made, the amount of income and resources of the sponsor
            or the sponsor's spouse which shall be attributed to the
            sponsored alien shall not exceed the amount actually provided
            for a period beginning on the date of such determination and
            ending 12 months after such date.
                ``(2) Determination described.--A determination described in
            this paragraph is a determination by an agency that a sponsored
            alien would, in the absence of the assistance provided by the
            agency, be unable to obtain food and shelter, taking into
            account the alien's own income, plus any cash, food, housing, or
            other assistance provided by other individuals, including the
            sponsor. The agency shall notify the Attorney General of each
            such determination, including the names of the sponsor and the
            sponsored alien involved.

        ``(f) Special Rule for Battered Spouse and Child.--
                ``(1) In general.--Subject to paragraph (2) and
            notwithstanding any other provision of this section, subsection
            (a) shall not apply to benefits--
                        ``(A) during a 12 month period if the alien
                    demonstrates that (i) the alien has been battered or
                    subjected to extreme cruelty in the United States by a
                    spouse or a parent, or by a member of the spouse or
                    parent's family residing in the same household as the
                    alien and the spouse or parent consented to or
                    acquiesced to such battery or cruelty, or (ii) the
                    alien's child has been battered or subjected to extreme
                    cruelty in the United States by the spouse or parent of
                    the alien (without the active participation of the alien
                    in the battery or cruelty), or by a member of the
                    spouse's or parent's family residing in the same
                    household as the alien when the spouse or parent
                    consented or acquiesced to and the alien did not
                    actively participate in such battery or cruelty, and the
                    battery or cruelty described in clause (i) or (ii) (in
                    the opinion of the agency providing such public
                    benefits, which opinion is not subject to review by any
                    court) has a substantial connection to the need for the
                    public benefits applied for; and
                        ``(B) after a 12 month period (regarding the
                    batterer's income and resources only) if the alien
                    demonstrates that such battery or cruelty under
                    subparagraph (A) has been recognized in an order of a
                    judge or administrative law judge or a prior
                    determination of the Immigration and Naturalization
                    Service, and that such battery or cruelty (in the
                    opinion of the agency providing such public benefits,

    [[Page 110 STAT. 3009-681]]

                    which opinion is not subject to review by any court) has
                    a substantial connection to the need for the benefits.
                ``(2) Limitation.--The exception under paragraph (1) shall
            not apply to benefits for an alien during any period in which
            the individual responsible for such battery or cruelty resides
            in the same household or family eligibility unit as the
            individual who was subjected to such battery or cruelty.''.

    SEC. 553. <<NOTE: 8 USC 1624.>>  AUTHORITY OF STATES AND POLITICAL
                SUBDIVISIONS OF STATES TO LIMIT ASSISTANCE TO ALIENS AND TO
                DISTINGUISH AMONG CLASSES OF ALIENS IN PROVIDING GENERAL
                CASH PUBLIC ASSISTANCE.

        (a) In General.--Subject to subsection (b) and notwithstanding any
    other provision of law, a State or political subdivision of a State is
    authorized to prohibit or otherwise limit or restrict the eligibility of
    aliens or classes of aliens for programs of general cash public
    assistance furnished under the law of the State or a political
    subdivision of a State.
        (b) Limitation.--The authority provided for under subsection (a) may
    be exercised only to the extent that any prohibitions, limitations, or
    restrictions imposed by a State or political subdivision of a State are
    not more restrictive than the prohibitions, limitations, or restrictions
    imposed under comparable Federal programs. For purposes of this section,
    attribution to an alien of a sponsor's income and resources (as
    described in section 421 of the Personal Responsibility and Work
    Opportunity Reconciliation Act of 1996 (8 U.S.C. 1631)) for purposes of
    determining eligibility for, and the amount of, benefits shall be
    considered less restrictive than a prohibition of eligibility for such
    benefits.

                      Subtitle D--Miscellaneous Provisions

    SEC. 561. INCREASED MAXIMUM CRIMINAL PENALTIES FOR FORGING OR
                COUNTERFEITING SEAL OF A FEDERAL DEPARTMENT OR AGENCY TO
                FACILITATE BENEFIT FRAUD BY AN UNLAWFUL ALIEN.

        Section 506 of title 18, United States Code, is amended to read as
    follows:

    ``Sec. 506. Seals of departments or agencies

        ``(a) Whoever--
                ``(1) falsely makes, forges, counterfeits, mutilates, or
            alters the seal of any department or agency of the United
            States, or any facsimile thereof;
                ``(2) knowingly uses, affixes, or impresses any such
            fraudulently made, forged, counterfeited, mutilated, or altered
            seal or facsimile thereof to or upon any certificate,
            instrument, commission, document, or paper of any description;
            or
                ``(3) with fraudulent intent, possesses, sells, offers for
            sale, furnishes, offers to furnish, gives away, offers to give
            away, transports, offers to transport, imports, or offers to
            import any such seal or facsimile thereof, knowing the same to
            have been so falsely made, forged, counterfeited, mutilated, or
            altered,

    shall be fined under this title, or imprisoned not more than 5 years, or
    both.

    [[Page 110 STAT. 3009-682]]

        ``(b) Notwithstanding subsection (a) or any other provision of law,
    if a forged, counterfeited, mutilated, or altered seal of a department
    or agency of the United States, or any facsimile thereof, is--
                ``(1) so forged, counterfeited, mutilated, or altered;
                ``(2) used, affixed, or impressed to or upon any
            certificate, instrument, commission, document, or paper of any
            description; or
                ``(3) with fraudulent intent, possessed, sold, offered for
            sale, furnished, offered to furnish, given away, offered to give
            away, transported, offered to transport, imported, or offered to
            import,

    with the intent or effect of facilitating an alien's application for, or
    receipt of, a Federal benefit to which the alien is not entitled, the
    penalties which may be imposed for each offense under subsection (a)
    shall be two times the maximum fine, and 3 times the maximum term of
    imprisonment, or both, that would otherwise be imposed for an offense
    under subsection (a).
        ``(c) For purposes of this section--
                ``(1) the term `Federal benefit' means--
                        ``(A) the issuance of any grant, contract, loan,
                    professional license, or commercial license provided by
                    any agency of the United States or by appropriated funds
                    of the United States; and
                        ``(B) any retirement, welfare, Social Security,
                    health (including treatment of an emergency medical
                    condition in accordance with section 1903(v) of the
                    Social Security Act (19 U.S.C. 1396b(v))), disability,
                    veterans, public housing, education, food stamps, or
                    unemployment benefit, or any similar benefit for which
                    payments or assistance are provided by an agency of the
                    United States or by appropriated funds of the United
                    States; and
                ``(2) each instance of forgery, counterfeiting, mutilation,
            or alteration shall constitute a separate offense under this
            section.''.

    SEC. 562. <<NOTE: 8 USC 1369.>>  TREATMENT OF EXPENSES SUBJECT TO
                EMERGENCY MEDICAL SERVICES EXCEPTION.

        (a) In General.--Subject to such amounts as are provided in advance
    in appropriation Acts, each State or political subdivision of a State
    that provides medical assistance for care and treatment of an emergency
    medical condition (as defined in subsection (d)) through a public
    hospital or other public facility (including a nonprofit hospital that
    is eligible for an additional payment adjustment under section 1886 of
    the Social Security Act) or through contract with another hospital or
    facility to an individual who is an alien not lawfully present in the
    United States is eligible for payment from the Federal Government of its
    costs of providing such services, but only to the extent that such costs
    are not otherwise reimbursed through any other Federal program and
    cannot be recovered from the alien or another person.
        (b) Confirmation of Immigration Status Required.--No payment shall
    be made under this section with respect to services furnished to an
    individual unless the immigration status of the individual has been
    verified through appropriate procedures established by the Secretary of
    Health and Human Services and the Attorney General.

    [[Page 110 STAT. 3009-683]]

        (c) Administration.--This section shall be administered by the
    Attorney General, in consultation with the Secretary of Health and Human
    Services.
        (d) Emergency Medical Condition Defined.--For purposes of this
    section, the term ``emergency medical condition'' means a medical
    condition (including emergency labor and delivery) manifesting itself by
    acute symptoms of sufficient severity (including severe pain) such that
    the absence of immediate medical attention could reasonably be expected
    to result in--
                (1) placing the patient's health in serious jeopardy,
                (2) serious impairment to bodily functions, or
                (3) serious dysfunction of any bodily organ or part.

        (e) Effective Date.--Subsection (a) shall apply to medical
    assistance for care and treatment of an emergency medical condition
    furnished on or after January 1, 1997.

    SEC. 563. <<NOTE: 8 USC 1370.>>  REIMBURSEMENT OF STATES AND LOCALITIES
                FOR EMERGENCY AMBULANCE SERVICES.

        Subject to the availability of appropriations, the Attorney General
    shall fully reimburse States and political subdivisions of States for
    costs incurred by such a State or subdivision for emergency ambulance
    services provided to any alien who--
                (1) is injured while crossing a land or sea border of the
            United States without inspection or at any time or place other
            than as designated by the Attorney General; and
                (2) is under the custody of the State or subdivision
            pursuant to a transfer, request, or other action by a Federal
            authority.

    SEC. 564. <<NOTE: 8 USC 1183a note.>>  PILOT PROGRAMS TO REQUIRE
                BONDING.

        (a) In General.--
                (1) The Attorney General of the United States shall
            establish a pilot program in 5 district offices of the
            Immigration and Naturalization Service to require aliens to post
            a bond in addition to the affidavit requirements under section
            213A of the Immigration and Nationality Act and the deeming
            requirements under section 421 of the Personal Responsibility
            and Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 1631).
            Any pilot program established pursuant to this subsection shall
            require an alien to post a bond in an amount sufficient to cover
            the cost of benefits described in section 213A(d)(2)(B) of the
            Immigration and Nationality Act (as amended by section 551(a) of
            this division) for the alien and the alien's dependents and
            shall remain in effect until the departure, naturalization, or
            death of the alien.
                (2) Suit on any such bonds may be brought under the terms
            and conditions set forth in section 213A of the Immigration and
            Nationality Act.

        (b) Regulations.--Not later than 180 days after the date of the
    enactment of this Act, the Attorney General shall issue regulations for
    establishing the pilot programs, including--
                (1) criteria and procedures for--
                        (A) certifying bonding companies for participation
                    in the program, and
                        (B) debarment of any such company that fails to pay
                    a bond, and
                (2) criteria for setting the amount of the bond to assure
            that the bond is in an amount that is not less than the cost

    [[Page 110 STAT. 3009-684]]

            of providing benefits under the programs described in subsection
            (a)(1) for the alien and the alien's dependents for 6 months.

        (c) Authorization of Appropriations.--There are authorized to be
    appropriated such sums as may be necessary to carry out this section.
        (d) Annual Reporting Requirement.--Beginning 9 months after the date
    of implementation of the pilot program, the Attorney General shall
    submit annually to the Committees on the Judiciary of the House of
    Representatives and the Senate a report on the effectiveness of the
    program. The Attorney General shall submit a final evaluation of the
    program not later than 1 year after termination.
        (e) Sunset.--The pilot program under this section shall terminate
    after 3 years of operation.
        (f) Bonds in Addition to Sponsorship and Deeming Requirements.--
    Section 213 (8 U.S.C. 1183) is amended by inserting ``(subject to the
    affidavit of support requirement and attribution of sponsor's income and
    resources under section 213A)'' after ``in the discretion of the
    Attorney General''.

    SEC. 565. <<NOTE: 8 USC 1371.>>  REPORTS.

        Not later than 180 days after the end of each fiscal year, the
    Attorney General shall submit a report to the Inspector General of the
    Department of Justice and the Committees on the Judiciary of the House
    of Representatives and of the Senate describing the following:
                (1) Public charge deportations.--The number of aliens
            deported on public charge grounds under section 241(a)(5) of the
            Immigration and Nationality Act during the previous fiscal year.
                (2) Indigent sponsors.--The number of determinations made
            under section 421(e) of the Personal Responsibility and Work
            Opportunity Reconciliation Act of 1996 (as added by section 552
            of this division) during the previous fiscal year.
                (3) Reimbursement actions.--The number of actions brought,
            and the amount of each action, for reimbursement under section
            213A of the Immigration and Nationality Act (including private
            collections) for the costs of providing public benefits.

    Subtitle E--Housing Assistance <<NOTE: Use of Assisted Housing by Aliens
    Act of 1996. 42 USC 1436a note.>>

    SEC. 571. SHORT TITLE.

        This subtitle may be cited as the ``Use of Assisted Housing by
    Aliens Act of 1996''.

    SEC. 572. PRORATING OF FINANCIAL ASSISTANCE.

        Section 214(b) of the Housing and Community Development Act of 1980
    (42 U.S.C. 1436a(b)) is amended--
                (1) by inserting ``(1)'' after ``(b)''; and
                (2) by adding at the end the following new paragraph:

        ``(2) If the eligibility for financial assistance of at least one
    member of a family has been affirmatively established under the program
    of financial assistance and under this section, and the ineligibility of
    one or more family members has not been affirmatively established under
    this section, any financial assistance made

    [[Page 110 STAT. 3009-685]]

    available to that family by the Secretary of Housing and Urban
    Development shall be prorated, based on the number of individuals in the
    family for whom eligibility has been affirmatively established under the
    program of financial assistance and under this section, as compared with
    the total number of individuals who are members of the family.''.

    SEC. 573. ACTIONS IN CASES OF TERMINATION OF FINANCIAL ASSISTANCE.

        Section 214(c)(1) of the Housing and Community Development Act of
    1980 (42 U.S.C. 1436a(c)(1)) is amended--
                (1) in the matter preceding subparagraph (A), by striking
            ``may, in its discretion,'' and inserting ``shall'';
                (2) in subparagraph (A), by adding at the end the following:
            ``Financial assistance continued under this subparagraph for a
            family may be provided only on a prorated basis, under which the
            amount of financial assistance is based on the percentage of the
            total number of members of the family that are eligible for that
            assistance under the program of financial assistance and under
            this section.''; and
                (3) in subparagraph (B)--
                        (A) by striking ``3 years'' and inserting ``18-
                    months'';
                        (B) by inserting ``(i)'' after ``(B)'';
                        (C) by striking ``Any deferral'' and inserting the
                    following:
                        ``(ii) Except as provided in clause (iii), any
                    deferral''; and
                        (D) by adding at the end the following new clauses:
                        ``(iii) The time period described in clause (ii)
                    shall not apply in the case of a refugee under section
                    207 of the Immigration and Nationality Act or an
                    individual seeking asylum under section 208 of that
                    Act.''.

    SEC. 574. VERIFICATION OF IMMIGRATION STATUS AND ELIGIBILITY FOR
                FINANCIAL ASSISTANCE.

        Section 214(d) of the Housing and Community Development Act of 1980
    (42 U.S.C. 1436a(d)) is amended--
                (1) in the matter preceding paragraph (1), by inserting ``or
            to be'' after ``being'';
                (2) in paragraph (1)(A), by adding at the end the following:
            ``If the declaration states that the individual is not a citizen
            or national of the United States and that the individual is
            younger than 62 years of age, the declaration shall be verified
            by the Immigration and Naturalization Service. If the
            declaration states that the individual is a citizen or national
            of the United States, the Secretary of Housing and Urban
            Development, or the agency administering assistance covered by
            this section, may request verification of the declaration by
            requiring presentation of documentation that the Secretary
            considers appropriate, including a United States passport,
            resident alien card, alien registration card, social security
            card, or other documentation.'';
                (3) in paragraph (2)--
                        (A) in the matter preceding subparagraph (A), by
                    striking ``on the date of the enactment of the Housing
                    and Community Development Act of 1987'' and inserting
                    ``on the date of enactment of the Use of Assisted
                    Housing

    [[Page 110 STAT. 3009-686]]

                    by Aliens Act of 1996 or applying for financial
                    assistance on or after that date''; and
                        (B) by adding at the end the following:

    ``In the case of an individual applying for financial assistance on or
    after the date of enactment of the Use of Assisted Housing by Aliens Act
    of 1996, the Secretary may not provide any such assistance for the
    benefit of that individual before documentation is presented and
    verified under paragraph (3) or (4).'';
                (4) in paragraph (4)--
                        (A) in the matter preceding subparagraph (A), by
                    striking ``on the date of the enactment of the Housing
                    and Community Development Act of 1987'' and inserting
                    ``on the date of enactment of the Use of Assisted
                    Housing by Aliens Act of 1996 or applying for financial
                    assistance on or after that date'';
                        (B) in subparagraph (A)--
                              (i) in clause (i)--
                                        (I) by inserting ``, not to exceed
                                    30 days,'' after ``reasonable
                                    opportunity''; and
                                        (II) by striking ``and'' at the end;
                                    and
                              (ii) by striking clause (ii) and inserting the
                          following:
                              ``(ii) in the case of any individual receiving
                          assistance on the date of enactment of the Use of
                          Assisted Housing by Aliens Act of 1996, may not
                          delay, deny, reduce, or terminate the eligibility
                          of that individual for financial assistance on the
                          basis
    of the immigration status of that individual until the expiration of
    that 30-day period; and
                              ``(iii) in the case of any individual applying
                          for financial assistance on or after the date of
                          enactment of the Use of Assisted Housing by Aliens
                          Act of 1996, may not deny the application for such
                          assistance on the basis of the immigration status
                          of that individual until the expiration of that
                          30-day period; and''; and
                        (C) in subparagraph (B), by striking clause (ii) and
                    inserting the following:
                              ``(ii) pending such verification or appeal,
                          the Secretary may not--
                                        ``(I) in the case of any individual
                                    receiving assistance on the date of
                                    enactment of the Use of Assisted Housing
                                    by Aliens Act of 1996, delay, deny,
                                    reduce, or terminate the eligibility of
                                    that individual for financial assistance
                                    on the basis of the immigration status
                                    of that individual; and
                                        ``(II) in the case of any individual
                                    applying for financial assistance on or
                                    after the date of enactment of the Use
                                    of Assisted Housing by Aliens Act of
                                    1996, deny the application for such
                                    assistance on the basis of the
                                    immigration status of that individual;
                                    and'';
                (5) in paragraph (5), by striking ``status--'' and all that
            follows through the end of the paragraph and inserting the
            following: ``status, the Secretary shall--
                        ``(A) deny the application of that individual for
                    financial assistance or terminate the eligibility of
                    that individual for financial assistance, as applicable;

    [[Page 110 STAT. 3009-687]]

                        ``(B) provide that the individual may request a fair
                    hearing during the 30-day period beginning upon receipt
                    of the notice under subparagraph (C); and
                        ``(C) provide to the individual written notice of
                    the determination under this paragraph, the right to a
                    fair hearing process, and the time limitation for
                    requesting a hearing under subparagraph (C).''; and
                (6) by striking paragraph (6) and inserting the following:
                ``(6) The Secretary shall terminate the eligibility for
            financial assistance of an individual and the members of the
            household of the individual, for a period of not less than 24
            months, upon determining that such individual has knowingly
            permitted another individual who is not eligible for such
            assistance to reside in the public or assisted housing unit of
            the individual. This provision shall not apply to a family if
            the ineligibility of the ineligible individual at issue was
            considered in calculating any proration of assistance provided
            for the family.''.

    SEC. 575. PROHIBITION OF SANCTIONS AGAINST ENTITIES MAKING FINANCIAL
                ASSISTANCE ELIGIBILITY DETERMINATIONS.

        Section 214(e) of the Housing and Community Development Act of 1980
    (42 U.S.C. 1436a(e)) is amended--
                (1) in paragraph (2), by adding ``or'' at the end;
                (2) in paragraph (3), by adding at the end the following:
            ``the response from the Immigration and Naturalization Service
            to the appeal of that individual.''; and
                (3) by striking paragraph (4).

    SEC. 576. ELIGIBILITY FOR PUBLIC AND ASSISTED HOUSING.

        Section 214 of the Housing and Community Development Act of 1980 (42
    U.S.C. 1436a) is amended by adding at the end the following new
    subsection:
        ``(h) Verification of Eligibility.--
                ``(1) In general.--Except in the case of an election under
            paragraph (2)(A), no individual or family applying for financial
            assistance may receive such financial assistance prior to the
            affirmative establishment and verification of eligibility of at
            least the individual or one family member under this section by
            the Secretary or other appropriate entity.
                ``(2) Rules applicable to public housing agencies.--A public
            housing agency (as that term is defined in section 3 of the
            United States Housing Act of 1937)--
                        ``(A) may elect not to comply with this section; and
                        ``(B) in complying with this section--
                              ``(i) may initiate procedures to affirmatively
                          establish or verify the eligibility of an
                          individual or family under this section at any
                          time at which the public housing agency determines
                          that such eligibility is in question, regardless
                          of whether or not that individual or family is at
                          or near the top of the waiting list of the public
                          housing agency;
                              ``(ii) may affirmatively establish or verify
                          the eligibility of an individual or family under
                          this section in accordance with the procedures set
                          forth in section 274A(b)(1) of the Immigration and
                          Nationality Act; and

    [[Page 110 STAT. 3009-688]]

                              ``(iii) shall have access to any relevant
                          information contained in the SAVE system (or any
                          successor thereto) that relates to any individual
                          or family applying for financial assistance.
                ``(3) Eligibility of families.--For purposes of this
            subsection, with respect to a family, the term `eligibility'
            means the eligibility of each family member.''.

    SEC. 577. <<NOTE: 42 USC 1436a note.>>  REGULATIONS.

        (a) Issuance.--Not later than the 60 days after the date of
    enactment of this Act, the Secretary of Housing and Urban Development
    shall issue any regulations necessary to implement the amendments made
    by this part. Such regulations shall be issued in the form of an interim
    final rule, which shall take effect upon issuance and shall not be
    subject to the provisions of section 533 of title 5, United States Code,
    regarding notice or opportunity for comment.
        (b) Failure To Issue.--If the Secretary fails to issue the
    regulations required under subsection (a) before the date specified in
    that subsection, the regulations relating to restrictions on assistance
    to noncitizens, contained in the final rule issued by the Secretary of
    Housing and Urban Development in RIN-2501-AA63 (Docket No. R-95-1409;
    FR-2383-F-050), published in the Federal Register on March 20, 1995
    (Vol. 60, No. 53; pp. 14824-14861), shall not apply after that date.

    Subtitle F--General Provisions <<NOTE: 8 USC 1101 note.>>

    SEC. 591. EFFECTIVE DATES.

        Except as provided in this title, this title and the amendments made
    by this title shall take effect on the date of the enactment of this
    Act.

    SEC. 592. NOT APPLICABLE TO FOREIGN ASSISTANCE.

        This title does not apply to any Federal, State, or local
    governmental program, assistance, or benefits provided to an alien under
    any program of foreign assistance as determined by the Secretary of
    State in consultation with the Attorney General.

    SEC. 593. NOTIFICATION.

        (a) In General.--Each agency of the Federal Government or a State or
    political subdivision that administers a program affected by the
    provisions of this title, shall, directly or through the States, provide
    general notification to the public and to program recipients of the
    changes regarding eligibility for any such program pursuant to this
    title.
        (b) Failure To Give Notice.--Nothing in this section shall be
    construed to require or authorize continuation of eligibility if the
    notice under this section is not provided.

    SEC. 594. DEFINITIONS.

        Except as otherwise provided in this title, for purposes of this
    title--
                (1) the terms ``alien'', ``Attorney General'', ``national'',
            ``naturalization'', ``State'', and ``United States'' shall have
            the meaning given such terms in section 101(a) of the
            Immigration and Nationality Act; and

    [[Page 110 STAT. 3009-689]]

                (2) the term ``child'' shall have the meaning given such
            term in section 101(c) of the Immigration and Nationality Act.

                       TITLE VI--MISCELLANEOUS PROVISIONS

                    Subtitle A--Refugees, Parole, and Asylum

    SEC. 601. PERSECUTION FOR RESISTANCE TO COERCIVE POPULATION CONTROL
                METHODS.

        (a) Definition of Refugee.--
                (1) Section 101(a)(42) (8 U.S.C. 1101(a)(42)) is amended by
            adding at the end the following: ``For purposes of
            determinations under this Act, a person who has been forced to
            abort a pregnancy or to undergo involuntary sterilization, or
            who has been persecuted for failure or refusal to undergo such a
            procedure or for other resistance to a coercive population
            control program, shall be deemed to have been persecuted on
            account of political opinion, and a person who has a well
            founded fear that he or she will be forced to undergo such a
            procedure or subject to persecution for such failure, refusal,
            or resistance shall be deemed to have a well founded fear of
            persecution on account of political opinion.''.
                (2) <<NOTE: 8 USC 1101 note.>>  Not later than 90 days after
            the end of each fiscal year, the Attorney General shall submit a
            report to the Committee on the Judiciary of the House of
            Representatives and the Committee on the Judiciary of the Senate
            describing the number and countries of origin of aliens granted
            refugee status or asylum under determinations pursuant to the
            amendment made by paragraph (1). Each such report shall also
            contain projections regarding the number and countries of origin
            of aliens that are likely to be granted refugee status or asylum
            for the subsequent 2 fiscal years.

        (b) Numerical Limitation.--Section 207(a) (8 U.S.C. 1157(a)) is
    amended by adding at the end the following new paragraph:
        ``(5) For any fiscal year, not more than a total of 1,000 refugees
    may be admitted under this subsection or granted asylum under section
    208 pursuant to a determination under the third sentence of section
    101(a)(42) (relating to persecution for resistance to coercive
    population control methods).''.

    SEC. 602. LIMITATION ON USE OF PAROLE

        (a) Parole Authority.--Section 212(d)(5)(A) (8 U.S.C. 1182(d)(5)) is
    amended by striking ``for emergent reasons or for reasons deemed
    strictly in the public interest'' and inserting ``only on a case-by-case
    basis for urgent humanitarian reasons or significant public benefit''.
        (b) <<NOTE: 8 USC 1182 note.>>  Report to Congress.--Not later than
    90 days after the end of each fiscal year, the Attorney General shall
    submit a report to the Committee on the Judiciary of the House of
    Representatives and the Committee on the Judiciary of the Senate
    describing the number and categories of aliens paroled into the United
    States under section 212(d)(5) of the Immigration and Nationality Act.
    Each such report shall provide the total number of aliens paroled into
    and residing in the United States and shall contain information

    [[Page 110 STAT. 3009-690]]

    and data for each country of origin concerning the number and categories
    of aliens paroled, the duration of parole, the current status of aliens
    paroled, and the number and categories of aliens returned to the custody
    from which they were paroled during the preceding fiscal year.

    SEC. 603. TREATMENT OF LONG-TERM PAROLEES IN APPLYING WORLDWIDE
                NUMERICAL LIMITATIONS.

        Section 201(c) (8 U.S.C. 1151(c)) is amended--
                (1) by amending paragraph (1)(A)(ii) to read as follows:
                ``(ii) the sum of the number computed under paragraph (2)
            and the number computed under paragraph (4), plus''; and
                (2) by adding at the end the following new paragraphs:

        ``(4) The number computed under this paragraph for a fiscal year
    (beginning with fiscal year 1999) is the number of aliens who were
    paroled into the United States under section 212(d)(5) in the second
    preceding fiscal year--
                ``(A) who did not depart from the United States (without
            advance parole) within 365 days; and
                ``(B) who (i) did not acquire the status of aliens lawfully
            admitted to the United States for permanent residence in the two
            preceding fiscal years, or (ii) acquired such status in such
            years under a provision of law (other than section 201(b)) which
            exempts such adjustment from the numerical limitation on the
            worldwide level of immigration under this section.

        ``(5) If any alien described in paragraph (4) (other than an alien
    described in paragraph (4)(B)(ii)) is subsequently admitted as an alien
    lawfully admitted for permanent residence, such alien shall not again be
    considered for purposes of paragraph (1).''.

    SEC. 604. ASYLUM REFORM.

        (a) Asylum Reform.--Section 208 (8 U.S.C. 1158) is amended to read
    as follows:

                                    ``asylum

        ``Sec. 208. (a) Authority To Apply for Asylum.--
                ``(1) In general.--Any alien who is physically present in
            the United States or who arrives in the United States (whether
            or not at a designated port of arrival and including an alien
            who is brought to the United States after having been
            interdicted in international or United States waters),
            irrespective of such alien's status, may apply for asylum in
            accordance with this section or, where applicable, section
            235(b).
                ``(2) Exceptions.--
                        ``(A) Safe third country.--Paragraph (1) shall not
                    apply to an alien if the Attorney General determines
                    that the alien may be removed, pursuant to a bilateral
                    or multilateral agreement, to a country (other than the
                    country of the alien's nationality or, in the case of an
                    alien having no nationality, the country of the alien's
                    last habitual residence) in which the alien's life or
                    freedom would not be threatened on account of race,
                    religion, nationality, membership in a particular social
                    group, or political opinion, and where the alien would
                    have access to a full and fair procedure for determining
                    a claim to asylum or equivalent temporary protection,
                    unless the Attorney General finds

    [[Page 110 STAT. 3009-691]]

                    that it is in the public interest for the alien to
                    receive asylum in the United States.
                        ``(B) Time limit.--Subject to subparagraph (D),
                    paragraph (1) shall not apply to an alien unless the
                    alien demonstrates by clear and convincing evidence that
                    the application has been filed within 1 year after the
                    date of the alien's arrival in the United States.
                        ``(C) Previous asylum applications.--Subject to
                    subparagraph (D), paragraph (1) shall not apply to an
                    alien if the alien has previously applied for asylum and
                    had such application denied.
                        ``(D) Changed circumstances.--An application for
                    asylum of an alien may be considered, notwithstanding
                    subparagraphs (B) and (C), if the alien demonstrates to
                    the satisfaction of the Attorney General either the
                    existence of changed circumstances which materially
                    affect the applicant's eligibility for asylum or
                    extraordinary circumstances relating to the delay in
                    filing an application within the period specified in
                    subparagraph (B).
                ``(3) Limitation on judicial review.--No court shall have
            jurisdiction to review any determination of the Attorney General
            under paragraph (2).

        ``(b) Conditions for Granting Asylum.--
                ``(1) In general.--The Attorney General may grant asylum to
            an alien who has applied for asylum in accordance with the
            requirements and procedures established by the Attorney General
            under this section if the Attorney General determines that such
            alien is a refugee within the meaning of section 101(a)(42)(A).
                ``(2) Exceptions.--
                        ``(A) In general.--Paragraph (1) shall not apply to
                    an alien if the Attorney General determines that--
                              ``(i) the alien ordered, incited, assisted, or
                          otherwise participated in the persecution of any
                          person on account of race, religion, nationality,
                          membership in a particular social group, or
                          political opinion;
                              ``(ii) the alien, having been convicted by a
                          final judgment of a particularly serious crime,
                          constitutes a danger to the community of the
                          United States;
                              ``(iii) there are serious reasons for
                          believing that the alien has committed a serious
                          nonpolitical crime outside the United States prior
                          to the arrival of the alien in the United States;
                              ``(iv) there are reasonable grounds for
                          regarding the alien as a danger to the security of
                          the United States;
                              ``(v) the alien is inadmissible under
                          subclause (I), (II), (III), or (IV) of section
                          212(a)(3)(B)(i) or removable under section
                          237(a)(4)(B) (relating to terrorist activity),
                          unless, in the case only of an alien inadmissible
                          under subclause (IV) of section 212(a)(3)(B)(i),
                          the Attorney General determines, in the Attorney
                          General's discretion, that there are not
                          reasonable grounds for regarding the alien as a
                          danger to the security of the United States; or
                              ``(vi) the alien was firmly resettled in
                          another country prior to arriving in the United
                          States.

    [[Page 110 STAT. 3009-692]]

                        ``(B) Special rules.--
                              ``(i) Conviction of aggravated felony.--For
                          purposes of clause (ii) of subparagraph (A), an
                          alien who has been convicted of an aggravated
                          felony shall be considered to have been convicted
                          of a particularly serious crime.
                              ``(ii) Offenses.--The Attorney General may
                          designate by regulation offenses that will be
                          considered to be a crime described in clause (ii)
                          or (iii) of subparagraph (A).
                        ``(C) Additional limitations.--The Attorney General
                    may by regulation establish additional limitations and
                    conditions, consistent with this section, under which an
                    alien shall be ineligible for asylum under paragraph
                    (1).
                        ``(D) No judicial review.--There shall be no
                    judicial review of a determination of the Attorney
                    General under subparagraph (A)(v).
                ``(3) Treatment of spouse and children.--A spouse or child
            (as defined in section 101(b)(1)(A), (B), (C), (D), or (E)) of
            an alien who is granted asylum under this subsection may, if not
            otherwise eligible for asylum under this section, be granted the
            same status as the alien if accompanying, or following to join,
            such alien.

        ``(c) Asylum Status.--
                ``(1) In general.--In the case of an alien granted asylum
            under subsection (b), the Attorney General--
                        ``(A) shall not remove or return the alien to the
                    alien's country of nationality or, in the case of a
                    person having no nationality, the country of the alien's
                    last habitual residence;
                        ``(B) shall authorize the alien to engage in
                    employment in the United States and provide the alien
                    with appropriate endorsement of that authorization; and
                        ``(C) may allow the alien to travel abroad with the
                    prior consent of the Attorney General.
              ``(2) Termination of asylum.--Asylum granted under subsection
            (b) does not convey a right to remain permanently in the United
            States, and may be terminated if the Attorney General determines
            that--
                      ``(A) the alien no longer meets the conditions
                    described in subsection (b)(1) owing to a fundamental
                    change in circumstances;
                      ``(B) the alien meets a condition described in
                    subsection (b)(2);
                      ``(C) the alien may be removed, pursuant to a
                    bilateral or multilateral agreement, to a country (other
                    than the country of the alien's nationality or, in the
                    case of an alien having no nationality, the country of
                    the alien's last habitual residence) in which the
                    alien's life or freedom would not be threatened on
                    account of race, religion, nationality, membership in a
                    particular social group, or political opinion, and where
                    the alien is eligible to receive asylum or equivalent
                    temporary protection;
                      ``(D) the alien has voluntarily availed himself or
                    herself of the protection of the alien's country of
                    nationality or, in the case of an alien having no
                    nationality, the alien's country of last habitual
                    residence, by returning to such

    [[Page 110 STAT. 3009-693]]

                    country with permanent resident status or the reasonable
                    possibility of obtaining such status with the same
                    rights and obligations pertaining to other permanent
                    residents of that country; or
                      ``(E) the alien has acquired a new nationality and
                    enjoys the protection of the country of his or her new
                    nationality.
              ``(3) Removal when asylum is terminated.--An alien described
            in paragraph (2) is subject to any applicable grounds of
            inadmissibility or deportability under section 212(a) and
            237(a), and the alien's removal or return shall be directed by
            the Attorney General in accordance with sections 240 and 241.
              ``(d) Asylum Procedure.--
              ``(1) Applications.--The Attorney General shall establish a
            procedure for the consideration of asylum applications filed
            under subsection (a). The Attorney General may require
            applicants to submit fingerprints and a photograph at such time
            and in such manner to be determined by regulation by the
            Attorney General.
              ``(2) Employment.--An applicant for asylum is not entitled to
            employment authorization, but such authorization may be provided
            under regulation by the Attorney General. An applicant who is
            not otherwise eligible for employment authorization shall not be
            granted such authorization prior to 180 days after the date of
            filing of the application for asylum.
              ``(3) Fees.--The Attorney General may impose fees for the
            consideration of an application for asylum, for employment
            authorization under this section, and for adjustment of status
            under section 209(b). Such fees shall not exceed the Attorney
            General's costs in adjudicating the applications. The Attorney
            General may provide for the assessment and payment of such fees
            over a period of time or by installments. Nothing in this
            paragraph shall be construed to require the Attorney General to
            charge fees for adjudication services provided to asylum
            applicants, or to limit the authority of the Attorney General to
            set adjudication and naturalization fees in accordance with
            section 286(m).
              ``(4) Notice of privilege of counsel and consequences of
            frivolous application.--At the time of filing an application for
            asylum, the Attorney General shall--
                      ``(A) advise the alien of the privilege of being
                    represented by counsel and of the consequences, under
                    paragraph (6), of knowingly filing a frivolous
                    application for asylum; and
                      ``(B) provide the alien a list of persons (updated not
                    less often than quarterly) who have indicated their
                    availability to represent aliens in asylum proceedings
                    on a pro bono basis.
              ``(5) Consideration of asylum applications.--
                      ``(A) Procedures.--The procedure established under
                    paragraph (1) shall provide that--
                              ``(i) asylum cannot be granted until the
                          identity of the applicant has been checked against
                          all appropriate records or databases maintained by
                          the Attorney General and by the Secretary of
                          State, including the Automated Visa Lookout
                          System, to determine any grounds on which the
                          alien may be inadmissible to

    [[Page 110 STAT. 3009-694]]

                          or deportable from the United States, or
                          ineligible to apply for or be granted asylum;
                            ``(ii) in the absence of exceptional
                          circumstances, the initial interview or hearing on
                          the asylum application shall commence not later
                          than 45 days after the date an application is
                          filed;
                            ``(iii) in the absence of exceptional
                          circumstances, final administrative adjudication
                          of the asylum application, not including
                          administrative appeal, shall be completed within
                          180 days after the date an application is filed;
                            ``(iv) any administrative appeal shall be filed
                          within 30 days of a decision granting or denying
                          asylum, or within 30 days of the completion of
                          removal proceedings before an immigration judge
                          under section 240, whichever is later; and
                            ``(v) in the case of an applicant for asylum who
                          fails without prior authorization or in the
                          absence of exceptional circumstances to appear for
                          an interview or hearing, including a hearing under
                          section 240, the application may be dismissed or
                          the applicant may be otherwise sanctioned for such
                          failure.
                      ``(B) Additional regulatory conditions.--The Attorney
                    General may provide by regulation for any other
                    conditions or limitations on the consideration of an
                    application for asylum not inconsistent with this Act.
              ``(6) Frivolous applications.--If the Attorney General
            determines that an alien has knowingly made a frivolous
            application for asylum and the alien has received the notice
            under paragraph (4)(A), the alien shall be permanently
            ineligible for any benefits under this Act, effective as of the
            date of a final determination on such application.
              ``(7) No private right of action.--Nothing in this subsection
            shall be construed to create any substantive or procedural right
            or benefit that is legally enforceable by any party against the
            United States or its agencies or officers or any other
            person.''.
          (b) Conforming and Clerical Amendments.--
              (1) The item in the table of contents relating to section 208
            is amended to read as follows:

    ``Sec. 208. Asylum.''.

              (2) Section 104(d)(1)(A) of the Immigration Act of 1990
            (Public Law 101-649) <<NOTE: 8 USC 1159 note.>>  is amended by
            striking ``208(b)'' and inserting ``208''.
          (c) <<NOTE: 8 USC 1158 note.>>  Effective Date.--The amendment
    made by subsection (a) shall apply to applications for asylum filed on
    or after the first day of the first month beginning more than 180 days
    after the date of the enactment of this Act.

    SEC. 605. INCREASE IN ASYLUM OFFICERS.

          Subject to the availability of appropriations, the Attorney
    General shall provide for an increase in the number of asylum officers
    to at least 600 asylum officers by fiscal year 1997.

    [[Page 110 STAT. 3009-695]]

    SEC. 606. <<NOTE: 8 USC 1255 note.>>  CONDITIONAL REPEAL OF CUBAN
                ADJUSTMENT ACT.
          (a) In General.--Public Law 89-732 is repealed effective only upon
    a determination by the President under section 203(c)(3) of the Cuban
    Liberty and Democratic Solidarity (LIBERTAD) Act of 1996 (Public Law
    104-114) that a democratically elected government in Cuba is in power.
          (b) Limitation.--Subsection (a) shall not apply to aliens for whom
    an application for adjustment of status is pending on such effective
    date.

    Subtitle B--Miscellaneous Amendments to the Immigration and Nationality
                                       Act

    SEC. 621. ALIEN WITNESS COOPERATION.

          Section 214(j)(1) (8 U.S.C. 1184(j)(1)) (as added by section
    130003(b)(2) of the Violent Crime Control and Law Enforcement Act of
    1994 (Public Law 103-322; 108 Stat. 2025)) (relating to numerical
    limitations on the number of aliens who may be provided a visa as
    nonimmigrants under section 101(a)(15)(S) of the Immigration and
    Nationality Act) is amended--
              (1) by striking ``100.'' and inserting ``200.''; and
              (2) by striking ``25.'' and inserting ``50.''.

    SEC. 622. WAIVER OF FOREIGN COUNTRY RESIDENCE REQUIREMENT WITH RESPECT
                TO INTERNATIONAL MEDICAL GRADUATES.

          (a) Extension of Waiver Program.--Section 220(c) of the
    Immigration and Nationality Technical Corrections Act of 1994 (8 U.S.C.
    1182 note) is amended by striking ``1996.'' and inserting ``2002.''.
          (b) Conditions on Federally Requested Waivers.--Section 212(e) (8
    U.S.C. 1182(e)) is amended by inserting after ``except that in the case
    of a waiver requested by a State Department of Public Health, or its
    equivalent'' the following: ``, or in the case of a waiver requested by
    an interested United States Government agency on behalf of an alien
    described in clause (iii),''.
          (c) Restrictions on Federally Requested Waivers.--Section 214(k)
    (8 U.S.C. 1184(k)) (as added by section 220(b) of the Immigration and
    Nationality Technical Corrections Act of 1994 (Public Law 103-416; 108
    Stat. 4319)) is amended to read as follows:
          ``(k)(1) In the case of a request by an interested State agency,
    or by an interested Federal agency, for a waiver of the 2-year foreign
    residence requirement under section 212(e) on behalf of an alien
    described in clause (iii) of such section, the Attorney General shall
    not grant such waiver unless--
              ``(A) in the case of an alien who is otherwise contractually
            obligated to return to a foreign country, the government of such
            country furnishes the Director of the United States Information
            Agency with a statement in writing that it has no objection to
            such waiver;
              ``(B) in the case of a request by an interested State agency,
            the grant of such waiver would not cause the number of waivers
            allotted for that State for that fiscal year to exceed 20;
              ``(C) in the case of a request by an interested Federal agency
            or by an interested State agency--

    [[Page 110 STAT. 3009-696]]

                      ``(i) the alien demonstrates a bona fide offer of
                    full-time employment at a health facility or health care
                    organization, which employment has been determined by
                    the Attorney General to be in the public interest; and
                      ``(ii) the alien agrees to begin employment with the
                    health facility or health care organization within 90
                    days of receiving such waiver, and agrees to continue to
                    work for a total of not less than 3 years (unless the
                    Attorney General determines that extenuating
                    circumstances exist, such as closure of the facility or
                    hardship to the alien, which would justify a lesser
                    period of employment at such health facility or health
                    care organization, in which case the alien must
                    demonstrate another bona fide offer of employment at a
                    health facility or health care organization for the
                    remainder of such 3-year period); and
              ``(D) in the case of a request by an interested Federal agency
            (other than a request by an interested Federal agency to employ
            the alien full-time in medical research or training) or by an
            interested State agency, the alien agrees to practice medicine
            in accordance with paragraph (2) for a total of not less than 3
            years only in the geographic area or areas which are designated
            by the Secretary of Health and Human Services as having a
            shortage of health care professionals.
              ``(2)(A) Notwithstanding section 248(2), the Attorney General
            may change the status of an alien who qualifies under this
            subsection and section 212(e) to that of an alien described in
            section 101(a)(15)(H)(i)(b).
              ``(B) No person who has obtained a change of status under
            subparagraph (A) and who has failed to fulfill the terms of the
            contract with the health facility or health care organization
            named in the waiver application shall be eligible to apply for
            an immigrant visa, for permanent residence, or for any other
            change of nonimmigrant status, until it is established that such
            person has resided and been physically present in the country of
            his nationality or his last residence for an aggregate of at
            least 2 years following departure from the United States.
              ``(3) Notwithstanding any other provision of this subsection,
            the 2-year foreign residence requirement under section 212(e)
            shall apply with respect to an alien described in clause (iii)
            of such section, who has not otherwise been accorded status
            under section 101(a)(27)(H), if--
                        ``(A) at any time the alien ceases to comply with
                    any agreement entered into under subparagraph (C) or (D)
                    of paragraph (1); or
                        ``(B) the alien's employment ceases to benefit the
                    public interest at any time during the 3-year period
                    described in paragraph (1)(C).''.

    SEC. 623. USE OF LEGALIZATION AND SPECIAL AGRICULTURAL WORKER
                INFORMATION.

      (a) Confidentiality of Information.--Section 245A(c)(5) (8 U.S.C.
    1255a(c)(5)) is amended to read as follows:
                ``(5) Confidentiality of information.--
                        ``(A) In general.--Except as provided in this
                    paragraph, neither the Attorney General, nor any other
                    official

    [[Page 110 STAT. 3009-697]]

                    or employee of the Department of Justice, or bureau or
                    agency thereof, may--
                              ``(i) use the information furnished by the
                          applicant pursuant to an application filed under
                          this section for any purpose other than to make a
                          determination on the application, for enforcement
                          of paragraph (6), or for the preparation of
                          reports to Congress under section 404 of the
                          Immigration Reform and Control Act of 1986;
                              ``(ii) make any publication whereby the
                          information furnished by any particular applicant
                          can be identified; or
                              ``(iii) permit anyone other than the sworn
                          officers and employees of the Department or bureau
                          or agency or, with respect to applications filed
                          with a designated entity, that designated entity,
                          to examine individual applications.
                        ``(B) Required disclosures.--The Attorney General
                    shall provide the information furnished under this
                    section, and any other information derived from such
                    furnished information, to a duly recognized law
                    enforcement entity in connection with a criminal
                    investigation or prosecution, when such information is
                    requested in writing by such entity, or to an official
                    coroner for purposes of affirmatively identifying a
                    deceased individual (whether or not such individual is
                    deceased as a result of a crime).
                        ``(C) Authorized disclosures.--The Attorney General
                    may provide, in the Attorney General's discretion, for
                    the furnishing of information furnished under this
                    section in the same manner and circumstances as census
                    information may be disclosed by the Secretary of
                    Commerce under section 8 of title 13, United States
                    Code.
                        ``(D) Construction.--
                              ``(i) In general.--Nothing in this paragraph
                          shall be construed to limit the use, or release,
                          for immigration enforcement purposes or law
                          enforcement purposes of information contained in
                          files or records of the Service pertaining to an
                          application filed under this section, other than
                          information furnished by an applicant pursuant to
                          the application, or any other information derived
                          from the application, that is not available from
                          any other source.
                            ``(ii) Criminal convictions.--Information
                          concerning whether the applicant has at any time
                          been convicted of a crime may be used or released
                          for immigration enforcement or law enforcement
                          purposes.
                        ``(E) Crime.--Whoever knowingly uses, publishes, or
                    permits information to be examined in violation of this
                    paragraph shall be fined not more than $10,000.''.
            (b) Special Agricultural Workers.--Section 210(b)(6) (8 U.S.C.
    1160(b)(6)) is amended to read as follows:
              ``(6) Confidentiality of information.--
                        ``(A) In general.--Except as provided in this
                    paragraph, neither the Attorney General, nor any other
    official or employee of the Department of Justice, or bureau or agency
    thereof, may--

    [[Page 110 STAT. 3009-698]]

                              ``(i) use the information furnished by the
                          applicant pursuant to an application filed under
                          this section for any purpose other than to make a
                          determination on the application, including a
                          determination under subsection (a)(3)(B), or for
                          enforcement of paragraph (7);
                              ``(ii) make any publication whereby the
                          information furnished by any particular individual
                          can be identified; or
                              ``(iii) permit anyone other than the sworn
                          officers and employees of the Department or bureau
                          or agency or, with respect to applications filed
                          with a designated entity, that designated entity,
                          to examine individual applications.
                        ``(B) Required disclosures.--The Attorney General
                    shall provide information furnished under this section,
                    and any other information derived from such furnished
                    information, to a duly recognized law enforcement entity
                    in connection with a criminal investigation or
                    prosecution, when such information is requested in
                    writing by such entity, or to an official coroner for
                    purposes of affirmatively identifying a deceased
                    individual (whether or not such individual is deceased
                    as a result of a crime).
                        ``(C) Construction.--
                              ``(i) In general.--Nothing in this paragraph
                          shall be construed to limit the use, or release,
                          for immigration enforcement purposes or law
                          enforcement purposes of information contained in
                          files or records of the Service pertaining to an
                          application filed under this section, other than
                          information furnished by an applicant pursuant to
                          the application, or any other information derived
                          from the application, that is not available from
                          any other source.
                              ``(ii) Criminal convictions.--Information
                          concerning whether the applicant has at any time
                          been convicted of a crime may be used or released
                          for immigration enforcement or law enforcement
                          purposes.
                        ``(D) Crime.--Whoever knowingly uses, publishes, or
                    permits information to be examined in violation of this
                    paragraph shall be fined not more than $10,000.''.

    SEC. 624. CONTINUED VALIDITY OF LABOR CERTIFICATIONS AND CLASSIFICATION
                PETITIONS FOR PROFESSIONAL ATHLETES.

        (a) Labor Certification.--Section 212(a)(5)(A) (8 U.S.C.
    1182(a)(5)(A)) is amended by adding at the end the following:
                              ``(iii) Professional athletes.--
                                        ``(I) In general.--A certification
                                    made under clause (i) with respect to a
                                    professional athlete shall remain valid
                                    with respect to the athlete after the
                                    athlete changes employer, if the new
                                    employer is a team in the same sport as
                                    the team which employed the athlete when
                                    the athlete first applied for the
                                    certification.
                                        ``(II) Definition.--For purposes of
                                    subclause (I), the term `professional
                                    athlete' means an individual who is
                                    employed as an athlete by--

    [[Page 110 STAT. 3009-699]]

                                                ``(aa) a team that is a
                                            member of an association of 6 or
                                            more professional sports teams
                                            whose total combined revenues
                                            exceed $10,000,000 per year, if
                                            the association governs the
                                            conduct of its members and
                                            regulates the contests and
                                            exhibitions in which its member
                                            teams regularly engage; or
                                                ``(bb) any minor league team
                                            that is affiliated with such an
                                            association.''.

        (b) Classification Petitions.--Section 204 (8 U.S.C. 1154) is
    amended by adding at the end the following:
        ``(i) Professional Athletes.--
                ``(1) In general.--A petition under subsection (a)(4)(D) for
            classification of a professional athlete shall remain valid for
            the athlete after the athlete changes employers, if the new
            employer is a team in the same sport as the team which was the
            employer who filed the petition.
                ``(2) Definition.--For purposes of paragraph (1), the term
            `professional athlete' means an individual who is employed as an
            athlete by--
                        ``(A) a team that is a member of an association of 6
                    or more professional sports teams whose total combined
                    revenues exceed $10,000,000 per year, if the association
                    governs the conduct of its members and regulates the
                    contests and exhibitions in which its member teams
                    regularly engage; or
                        ``(B) any minor league team that is affiliated with
                    such an association.''.

    SEC. 625. FOREIGN STUDENTS.

        (a) Limitations.--
                (1) In general.--Section 214 (8 U.S.C. 1184) is amended by
            adding at the end the following new subsection:

        ``(l)(1) An alien may not be accorded status as a nonimmigrant under
    section 101(a)(15)(F)(i) in order to pursue a course of study--
                ``(A) at a public elementary school or in a publicly funded
            adult education program; or
                ``(B) at a public secondary school unless--
                        ``(i) the aggregate period of such status at such a
                    school does not exceed 12 months with respect to any
                    alien, and (ii) the alien demonstrates that the alien
                    has reimbursed the local educational agency that
                    administers the school for the full, unsubsidized per
                    capita cost of providing education at such school for
                    the period of the alien's attendance.

        ``(2) An alien who obtains the status of a nonimmigrant under
    section 101(a)(15)(F)(i) in order to pursue a course of study at a
    private elementary or secondary school or in a language training program
    that is not publicly funded shall be considered to have violated such
    status, and the alien's visa under section 101(a)(15)(F) shall be void,
    if the alien terminates or abandons such course of study at such a
    school and undertakes a course of study at a public elementary school,
    in a publicly funded adult education program, in a publicly funded adult
    education language training program, or at a public secondary school
    (unless the requirements of paragraph (1)(B) are met).''.

    [[Page 110 STAT. 3009-700]]

                (2) Conforming amendment.--Section 101(a)(15)(F) (8 U.S.C.
            1101(a)(15)(F)) is amended by inserting ``consistent with
            section 214(l)'' after ``such a course of study''.

        (b) Reference to New Ground of Exclusion for Student Visa Abusers.--
    For addition of ground of inadmissibility for certain nonimmigrant
    student abusers, see section 347 of this division.
        (c) <<NOTE: 8 USC 1101 note.>>  Effective Date.--The amendments made
    by subsection (a) shall apply to individuals who obtain the status of a
    nonimmigrant under section 101(a)(15)(F) of the Immigration and
    Nationality Act after the end of the 60-day period beginning on the date
    of the enactment of this Act, including aliens whose status as such a
    nonimmigrant is extended after the end of such period.

    SEC. 626. SERVICES TO FAMILY MEMBERS OF CERTAIN OFFICERS AND AGENTS
                KILLED IN THE LINE OF DUTY.

        (a) In General.--Title II, as amended by section 205(a) of this
    division, is amended by adding at the end the following new section:

     ``transportation of remains of immigration officers and border patrol
                        agents killed in the line of duty

        ``Sec. 295. <<NOTE: 8 USC 1363b.>>  (a) In General.--To the extent
    provided in appropriation Acts, when an immigration officer or border
    patrol agent is killed in the line of duty, the Attorney General may pay
    from appropriations available for the activity in which the officer or
    agent was engaged--
                ``(1) the actual and necessary expenses of transportation of
            the remains of the officer or agent to a place of burial located
            in any State, American Samoa, the Commonwealth of the Northern
            Mariana Islands, the Republic of the Marshall Islands, the
            Federated States of Micronesia, or the Republic of Palau;
                ``(2) travel expenses, including per diem in lieu of
            subsistence, of the decedent's spouse and minor children to and
            from such site at rates not greater than those established for
            official government travel under subchapter I of chapter 57 of
            title 5, United States Code; and
                ``(3) any other memorial service authorized by the Attorney
            General.

        ``(b) Prepayment.--The Attorney General may prepay any expense
    authorized to be paid under this section.''.
        (b) Clerical Amendment.--The table of contents, as amended by
    section 205(b) of this division, is amended by inserting after the item
    relating to section 294 the following new item:

    ``Sec. 295.  Transportation of remains of immigration officers and
                          border patrol agents killed in the line of
                          duty.''.

        Subtitle C--Provisions Relating to Visa Processing and Consular
                                   Efficiency

    SEC. 631. VALIDITY OF PERIOD OF VISAS.

        (a) Extension of Validity of Immigrant Visas to 6 Months.--Section
    221(c) (8 U.S.C. 1201(c)) is amended by striking ``four months'' and
    inserting ``six months''.

    [[Page 110 STAT. 3009-701]]

        (b) Authorizing Application of Reciprocity Rule for Nonimmigrant
    Visa in Case of Refugees and Permanent Residents.--Such section is
    further amended by inserting before the period at the end of the third
    sentence the following: ``; except that in the case of aliens who are
    nationals of a foreign country and who either are granted refugee status
    and firmly resettled in another foreign country or are granted permanent
    residence and residing in another foreign country, the Secretary of
    State may prescribe the period of validity of such a visa based upon the
    treatment granted by that other foreign country to alien refugees and
    permanent residents, respectively, in the United States''.

    SEC. 632. ELIMINATION OF CONSULATE SHOPPING FOR VISA OVERSTAYS.

        (a) In General.--Section 222 (8 U.S.C. 1202) is amended by adding at
    the end the following:
        ``(g)(1) In the case of an alien who has been admitted on the basis
    of a nonimmigrant visa and remained in the United States beyond the
    period of stay authorized by the Attorney General, such visa shall be
    void beginning after the conclusion of such period of stay.
        ``(2) An alien described in paragraph (1) shall be ineligible to be
    readmitted to the United States as a nonimmigrant, except--
                ``(A) on the basis of a visa (other than the visa described
            in paragraph (1)) issued in a consular office located in the
            country of the alien's nationality (or, if there is no office in
            such country, in such other consular office as the Secretary of
            State shall specify); or
                ``(B) where extraordinary circumstances are found by the
            Secretary of State to exist.''.

        (b) <<NOTE: 8 USC 1202 note.>>  Applicability.--
                (1) Visas.--Section 222(g)(1) of the Immigration and
            Nationality Act, as added by subsection (a), shall apply to a
            visa issued before, on, or after the date of the enactment of
            this Act.
                (2) Aliens seeking readmission.--Section 222(g)(2) of the
            Immigration and Nationality Act, as added by subsection (a),
            shall apply to any alien applying for readmission to the United
            States after the date of the enactment of this Act, except an
            alien applying for readmission on the basis on a visa that--
                        (A) was issued before such date; and
                        (B) is not void through the application of section
                    222(g)(1) of the Immigration and Nationality Act, as
                    added by subsection (a).

    SEC. 633. AUTHORITY TO DETERMINE VISA PROCESSING PROCEDURES.

        Section 202(a)(1) (8 U.S.C. 1152(a)(1)) is amended--
                (1) by inserting ``(A)'' after ``Nondiscrimination.--''; and
                (2) by adding at the end the following:
                ``(B) Nothing in this paragraph shall be construed to limit
            the authority of the Secretary of State to determine the
            procedures for the processing of immigrant visa applications or
            the locations where such applications will be processed.''.

    SEC. 634. CHANGES REGARDING VISA APPLICATION PROCESS.

        (a) Nonimmigrant Applications.--Section 222(c) (8 U.S.C. 1202(c)) is
    amended--

    [[Page 110 STAT. 3009-702]]

                (1) by striking ``personal description'' through ``marks of
            identification);'';
                (2) by striking ``applicant'' and inserting ``applicant, the
            determination of his eligibility for a nonimmigrant visa,''; and
                (3) by adding at the end the following: ``At the discretion
            of the Secretary of State, application forms for the various
            classes of nonimmigrant admissions described in section
            101(a)(15) may vary according to the class of visa being
            requested.''.

        (b) Disposition of Applications.--Section 222(e) (8 U.S.C. 1202(e))
    is amended--
                (1) in the first sentence, by striking ``required by this
            section'' and inserting ``for an immigrant visa''; and
                (2) in the fourth sentence--
                        (A) by striking ``stamp'' and inserting ``stamp, or
                    other
                        (B) by striking ``by the consular officer''.

    SEC. 635. VISA WAIVER PROGRAM.

        (a) Elimination of Joint Action Requirement.--Section 217 (8 U.S.C.
    1187) is amended--
                (1) in subsection (a), by striking ``Attorney General and
            the Secretary of State, acting jointly'' and inserting
            ``Attorney General, in consultation with the Secretary of
            State'';
                (2) in subsection (c)(1), by striking ``Attorney General and
            the Secretary of State acting jointly'' and inserting ``Attorney
            General, in consultation with the Secretary of State,''; and
                (3) in subsection (d), by striking ``Attorney General and
            the Secretary of State, acting jointly,'' and inserting
            ``Attorney General, in consultation with the Secretary of
            State,''.

        (b) Extension of Program.--Section 217(f) (8 U.S.C. 1187(f)) is
    amended by striking ``1996'' and inserting ``1997.''.
        (c) Duration and Termination of Designation of Pilot Program
    Countries.--
                (1) In general.--Section 217(g) (8 U.S.C. 1187(g)) is
            amended to read as follows:

        ``(g) Duration and Termination of Designation.--
                ``(1) In general.--
                        ``(A) Determination and notification of
                    disqualification rate.--Upon determination by the
                    Attorney General that a pilot program country's
                    disqualification rate is 2 percent or more, the Attorney
                    General shall notify the Secretary of State.
                        ``(B) Probationary status.--If the program country's
                    disqualification rate is greater than 2 percent but less
                    than 3.5 percent, the Attorney General shall place the
                    program country in probationary status for a period not
                    to exceed 2 full fiscal years following the year in
                    which the determination under subparagraph (A) is made.
                        ``(C) Termination of designation.--Subject to
                    paragraph (3), if the program country's disqualification
                    rate is 3.5 percent or more, the Attorney General shall
                    terminate the country's designation as a pilot program
                    country effective at the beginning of the second fiscal
                    year following the fiscal year in which the
                    determination under subparagraph (A) is made.
                ``(2) Termination of probationary status.--

    [[Page 110 STAT. 3009-703]]

                        ``(A) In general.--If the Attorney General
                    determines at the end of the probationary period
                    described in paragraph (1)(B) that the program country
                    placed in probationary status under such paragraph has
                    failed to develop a machine-readable passport program as
                    required by section (c)(2)(C), or has a disqualification
                    rate of 2 percent or more, the Attorney General shall
                    terminate the designation of the country as a pilot
                    program country. If the Attorney General determines that
                    the program country has developed a machine-readable
                    passport program and has a disqualification rate of less
                    than 2 percent, the Attorney General shall redesignate
                    the country as a pilot program country.
                        ``(B) Effective date.--A termination of the
                    designation of a country under subparagraph (A) shall
                    take effect on the first day of the first fiscal year
                    following the fiscal year in which the determination
                    under such subparagraph is made. Until such date,
                    nationals of the country shall remain eligible for a
                    waiver under subsection (a).
                ``(3) Nonapplicability of certain provisions.--Paragraph
            (1)(C) shall not apply unless the total number of nationals of a
            pilot program country described in paragraph (4)(A) exceeds 100.
                ``(4) Definition.--For purposes of this subsection, the term
            `disqualification rate' means the percentage which--
                        ``(A) the total number of nationals of the pilot
                    program country who were--
                              ``(i) excluded from admission or withdrew
                          their application for admission during the most
                          recent fiscal year for which data are available;
                          and
                              ``(ii) admitted as nonimmigrant visitors
                          during such fiscal year and who violated the terms
                          of such admission; bears to
                        ``(B) the total number of nationals of such country
                    who applied for admission as nonimmigrant visitors
                    during such fiscal year.''.
                (2) <<NOTE: 8 USC 1187 note.>>  Transition.--A country
            designated as a pilot program country with probationary status
            under section 217(g) of the Immigration and Nationality Act (as
            in effect on the day before the date of the enactment of this
            Act) shall be considered to be designated as a pilot program
            country on and after such date, subject to placement in
            probationary status or termination of such designation under
            such section (as amended by paragraph (1)).
                (3) Conforming amendment.--Section 217(a)(2)(B) (8 U.S.C.
            1187(a)(2)(B)) is amended by striking ``or is'' through
            ``subsection (g).'' and inserting a period.

    SEC. 636. <<NOTE: 8 USC 1153 note.>>  FEE FOR DIVERSITY IMMIGRANT
                LOTTERY.

        The Secretary of State may establish a fee to be paid by each
    applicant for an immigrant visa described in section 203(c) of the
    Immigration and Nationality Act. Such fee may be set at a level that
    will ensure recovery of the cost to the Department of State of
    allocating visas under such section, including the cost of processing
    all applications thereunder. All fees collected under this section shall
    be used for providing consular services. All fees collected under this
    section shall be deposited as an offsetting

    [[Page 110 STAT. 3009-704]]

    collection to any Department of State appropriation and shall remain
    available for obligations until expended. The provisions of the Act of
    August 18, 1856 (11 Stat. 58; 22 U.S.C. 4212-4214), concerning
    accounting for consular fees, shall not apply to fees collected under
    this section.

    SEC. 637. <<NOTE: 8 USC 1153 note.>>  ELIGIBILITY FOR VISAS FOR CERTAIN
                POLISH APPLICANTS FOR THE 1995 DIVERSITY IMMIGRANT PROGRAM.

        (a) In General.--The Attorney General, in consultation with the
    Secretary of State, shall include among the aliens selected for
    diversity immigrant visas for fiscal year 1997 pursuant to section
    203(c) of the Immigration and Nationality Act any alien who, on or
    before September 30, 1995--
                (1) was selected as a diversity immigrant under such section
            for fiscal year 1995;
                (2) applied for adjustment of status to that of an alien
            lawfully admitted for permanent residence pursuant to section
            245 of such Act during fiscal year 1995, and whose application,
            and any associated fees, were accepted by the Attorney General,
            in accordance with applicable regulations;
                (3) was not determined by the Attorney General to be
            excludable under section 212 of such Act or ineligible under
            section 203(c)(2) of such Act; and
                (4) did not become an alien lawfully admitted for permanent
            residence during fiscal year 1995.

        (b) Priority.--The aliens selected under subsection (a) shall be
    considered to have been selected for diversity immigrant visas for
    fiscal year 1997 prior to any alien selected under any other provision
    of law.
        (c) Reduction of Immigrant Visa Number.--For purposes of applying
    the numerical limitations in sections 201 and 203(c) of the Immigration
    and Nationality Act, aliens selected under subsection (a) who are
    granted an immigrant visa shall be treated as aliens granted a visa
    under section 203(c) of such Act.

                          Subtitle D--Other Provisions

    SEC. 641. <<NOTE: 8 USC 1372.>>  PROGRAM TO COLLECT INFORMATION RELATING
                TO NONIMMIGRANT FOREIGN STUDENTS AND OTHER EXCHANGE PROGRAM
                PARTICIPANTS.

        (a) In General.--
                (1) Program.--The Attorney General, in consultation with the
            Secretary of State and the Secretary of Education, shall develop
            and conduct a program to collect from approved institutions of
            higher education and designated exchange visitor programs in the
            United States the information described in subsection (c) with
            respect to aliens who--
                        (A) have the status, or are applying for the status,
                    of nonimmigrants under subparagraph (F), (J), or (M) of
                    section 101(a)(15) of the Immigration and Nationality
                    Act; and
                        (B) are nationals of the countries designated under
                    subsection (b).
                (2) Deadline.--The program shall commence not later than
            January 1, 1998.

    [[Page 110 STAT. 3009-705]]

        (b) Covered Countries.--The Attorney General, in consultation with
    the Secretary of State, shall designate countries for purposes of
    subsection (a)(1)(B). The Attorney General shall initially designate not
    less than 5 countries and may designate additional countries at any time
    while the program is being conducted.
        (c) Information To Be Collected.--
                (1) In general.--The information for collection under
            subsection (a) with respect to an alien consists of--
                        (A) the identity and current address in the United
                    States of the alien;
                        (B) the nonimmigrant classification of the alien and
                    the date on which a visa under the classification was
                    issued or extended or the date on which a change to such
                    classification was approved by the Attorney General;
                        (C) in the case of a student at an approved
                    institution of higher education, the current academic
                    status of the alien, including whether the alien is
                    maintaining status as a full-time student or, in the
                    case of a participant in a designated exchange visitor
                    program, whether the alien is satisfying the terms and
                    conditions of such program; and
                        (D) in the case of a student at an approved
                    institution of higher education, any disciplinary action
                    taken by the institution against the alien as a result
                    of the alien's being convicted of a crime or, in the
                    case of a participant in a designated exchange visitor
                    program, any change in the alien's participation as a
                    result of the alien's being convicted of a crime.
                (2) FERPA.--The Family Educational Rights and Privacy Act of
            1974 shall not apply to aliens described in subsection (a) to
            the extent that the Attorney General determines necessary to
            carry out the program under subsection (a).
                (3) Electronic collection.--The information described in
            paragraph (1) shall be collected electronically, where
            practicable.
                (4) Computer software.--
                        (A) Collecting institutions.--To the extent
                    practicable, the Attorney General shall design the
                    program in a manner that permits approved institutions
                    of higher education and designated exchange visitor
                    programs to use existing software for the collection,
                    storage, and data processing of information described in
                    paragraph (1).
                        (B) Attorney general.--To the extent practicable,
                    the Attorney General shall use or enhance existing
                    software for the collection, storage, and data
                    processing of information described in paragraph (1).

        (d) Participation by Institutions of Higher Education and Exchange
    Visitor Programs.--
                (1) Condition.--The information described in subsection (c)
            shall be provided by as a condition of--
                        (A) in the case of an approved institution of higher
                    education, the continued approval of the institution
                    under subparagraph (F) or (M) of section 101(a)(15) of
                    the Immigration and Nationality Act; and
                        (B) in the case of an approved institution of higher
                    education or a designated exchange visitor program, the

    [[Page 110 STAT. 3009-706]]

                    granting of authority to issue documents to an alien
                    demonstrating the alien's eligibility for a visa under
                    subparagraph (F), (J), or (M) of section 101(a)(15) of
                    such Act.
                (2) Effect of failure to provide information.--If an
            approved institution of higher education or a designated
            exchange visitor program fails to provide the specified
            information, such approvals and such issuance of visas shall be
            revoked or denied.

        (e) Funding.--
                (1) In general.--Beginning on April 1, 1997, an approved
            institution of higher education and a designated exchange
            visitor program shall impose on, and collect from, each alien
            described in paragraph (3), with respect to whom the institution
            or program is required by subsection (a) to collect information,
            a fee established by the Attorney General under paragraph (4) at
            the time--
                        (A) when the alien first registers with the
                    institution or program after entering the United States;
                    or
                        (B) in a case where a registration under
                    subparagraph (A) does not exist, when the alien first
                    commences activities in the United States with the
                    institution or program.
                (2) Remittance.--An approved institution of higher education
            and a designated exchange visitor program shall
    remit the fees collected under paragraph (1) to the Attorney General
    pursuant to a schedule established by the Attorney General.
                (3) Aliens described.--An alien referred to in paragraph (1)
            is an alien who has nonimmigrant status under subparagraph (F),
            (J), or (M) of section 101(a)(15) of the Immigration and
            Nationality Act (other than a nonimmigrant under section
            101(a)(15)(J) of such Act who has come to the United States as a
            participant in a program sponsored by the Federal Government).
                (4) Amount and use of fees.--
                        (A) Establishment of amount.--The Attorney General
                    shall establish the amount of the fee to be imposed on,
                    and collected from, an alien under paragraph (1). Except
                    as provided in subsection (g)(2), the fee imposed on any
                    individual may not exceed $100. The amount of the fee
                    shall be based on the Attorney General's estimate of the
                    cost per alien of conducting the information collection
                    program described in this section.
                        (B) Use.--Fees collected under paragraph (1) shall
                    be deposited as offsetting receipts into the Immigration
                    Examinations Fee Account (established under section
                    286(m) of the Immigration and Nationality Act) and shall
                    remain available until expended for the Attorney General
                    to reimburse any appropriation the amount paid out of
                    which is for expenses in carrying out this section.

        (f) Joint Report.--Not later than 4 years after the commencement of
    the program established under subsection (a), the Attorney General, the
    Secretary of State, and the Secretary of Education shall jointly submit
    to the Committees on the Judiciary of the Senate and the House of
    Representatives a report on the operations of the program and the
    feasibility of expanding the program to cover the nationals of all
    countries.
        (g) Worldwide Applicability of the Program.--
                (1) Expansion of program.--

    [[Page 110 STAT. 3009-707]]

                        (A) In general.--Not later than 6 months after the
                    submission of the report required by subsection (f), the
                    Attorney General, in consultation with the Secretary of
                    State and the Secretary of Education, shall commence
                    expansion of the program to cover the nationals of all
                    countries.
                        (B) Deadline.--Such expansion shall be completed not
                    later than 1 year after the date of the submission of
                    the report referred to in subsection (f).
                (2) Revision of fee.--After the program has been expanded,
            as provided in paragraph (1), the Attorney General may, on a
            periodic basis, revise the amount of the fee imposed and
            collected under subsection (e) in order to take into account
            changes in the cost of carrying out the program.

        (h) Definitions.--As used in this section:
                (1) Approved institution of higher education.--The term
            ``approved institution of higher education'' means a college or
            university approved by the Attorney General, in consultation
            with the Secretary of Education, under subparagraph (F), (J), or
            (M) of section 101(a)(15) of the Immigration and Nationality
            Act.
                (2) Designated exchange visitor program.--The term
            ``designated exchange visitor program'' means a program that has
            been--
                        (A) designated by the Director of the United States
                    Information Agency for purposes of section 101(a)(15)(J)
                    of the Immigration and Nationality Act; and
                        (B) selected by the Attorney General for purposes of
                    the program under this section.

    SEC. 642. <<NOTE: 8 USC 1373.>>  COMMUNICATION BETWEEN GOVERNMENT
                AGENCIES AND THE IMMIGRATION AND NATURALIZATION SERVICE.

        (a) In General.--Notwithstanding any other provision of Federal,
    State, or local law, a Federal, State, or local government entity or
    official may not prohibit, or in any way restrict, any government entity
    or official from sending to, or receiving from, the Immigration and
    Naturalization Service information regarding the citizenship or
    immigration status, lawful or unlawful, of any individual.
        (b) Additional Authority of Government Entities.--Notwithstanding
    any other provision of Federal, State, or local law, no person or agency
    may prohibit, or in any way restrict, a Federal, State, or local
    government entity from doing any of the following with respect to
    information regarding the immigration status, lawful or unlawful, of any
    individual:
                (1) Sending such information to, or requesting or receiving
            such information from, the Immigration and Naturalization
            Service.
                (2) Maintaining such information.
                (3) Exchanging such information with any other Federal,
            State, or local government entity.

        (c) Obligation to Respond to Inquiries.--The Immigration and
    Naturalization Service shall respond to an inquiry by a Federal, State,
    or local government agency, seeking to verify or ascertain the
    citizenship or immigration status of any individual within the
    jurisdiction of the agency for any purpose authorized by law, by
    providing the requested verification or status information.

    [[Page 110 STAT. 3009-708]]

    SEC. 643. <<NOTE: 48 USC 1901 note.>>  REGULATIONS REGARDING HABITUAL
                RESIDENCE.

        Not later than 6 months after the date of the enactment of this Act,
    the Commissioner of Immigration and Naturalization shall issue
    regulations governing rights of ``habitual residence'' in the United
    States under the terms of the following:
                (1) The Compact of Free Association between the Government
            of the United States and the Governments of the Marshall Islands
            and the Federated States of Micronesia (48 U.S.C. 1901 note).
                (2) The Compact of Free Association between the Government
            of the United States and the Government of Palau (48 U.S.C. 1931
            note).

    SEC. 644. <<NOTE: 8 USC 1374.>>  INFORMATION REGARDING FEMALE GENITAL
                MUTILATION.

        (a) Provision of Information Regarding Female Genital Mutilation.--
    The Immigration and Naturalization Service (in cooperation with the
    Department of State) shall make available for all aliens who are issued
    immigrant or nonimmigrant visas, prior to or at the time of entry into
    the United States, the following information:
                (1) Information on the severe harm to physical and
            psychological health caused by female genital mutilation which
            is compiled and presented in a manner which is limited to the
            practice itself and respectful to the cultural values of the
            societies in which such practice takes place.
                (2) Information concerning potential legal consequences in
            the United States for (A) performing female genital mutilation,
            or (B) allowing a child under his or her care to be subjected to
            female genital mutilation, under criminal or child protection
            statutes or as a form of child abuse.

        (b) Limitation.--In consultation with the Secretary of State, the
    Commissioner of Immigration and Naturalization shall identify those
    countries in which female genital mutilation is commonly practiced and,
    to the extent practicable, limit the provision of information under
    subsection (a) to aliens from such countries.
        (c) Definition.--For purposes of this section, the term ``female
    genital mutilation'' means the removal or infibulation (or both) of the
    whole or part of the clitoris, the labia minora, or labia majora.

    SEC. 645. CRIMINALIZATION OF FEMALE GENITAL MUTILATION.

        (a) <<NOTE: 18 USC 116 note.>>  Findings.--The Congress finds that--
                (1) the practice of female genital mutilation is carried out
            by members of certain cultural and religious groups within the
            United States;
                (2) the practice of female genital mutilation often results
            in the occurrence of physical and psychological health effects
            that harm the women involved;
                (3) such mutilation infringes upon the guarantees of rights
            secured by Federal and State law, both statutory and
            constitutional;
                (4) the unique circumstances surrounding the practice of
            female genital mutilation place it beyond the ability of any
            single State or local jurisdiction to control;
                (5) the practice of female genital mutilation can be
            prohibited without abridging the exercise of any rights
            guaranteed

    [[Page 110 STAT. 3009-709]]

            under the first amendment to the Constitution or under any other
            law; and
                (6) Congress has the affirmative power under section 8 of
            article I, the necessary and proper clause, section 5 of the
            fourteenth Amendment, as well as under the treaty clause, to the
            Constitution to enact such legislation.

        (b) Crime.--
                (1) In general.--Chapter 7 of title 18, United States Code,
            is amended by adding at the end the following:

    ``Sec. 116. Female genital mutilation

        ``(a) Except as provided in subsection (b), whoever knowingly
    circumcises, excises, or infibulates the whole or any part of the labia
    majora or labia minora or clitoris of another person who has not
    attained the age of 18 years shall be fined under this title or
    imprisoned not more than 5 years, or both.
        ``(b) A surgical operation is not a violation of this section if the
    operation is--
                ``(1) necessary to the health of the person on whom it is
            performed, and is performed by a person licensed in the place of
            its performance as a medical practitioner; or
                ``(2) performed on a person in labor or who has just given
            birth and is performed for medical purposes connected with that
            labor or birth by a person licensed in the place it is performed
            as a medical practitioner, midwife, or person in training to
            become such a practitioner or midwife.

        ``(c) In applying subsection (b)(1), no account shall be taken of
    the effect on the person on whom the operation is to be performed of any
    belief on the part of that person, or any other person, that the
    operation is required as a matter of custom or ritual.''.
                (2) Conforming amendment.--The table of sections at the
            beginning of chapter 7 of title 18, United States Code, is
            amended by adding at the end the following new item:

    ``116. Female genital mutilation.''.

        (c) <<NOTE: 18 USC 116 note.>>  Effective Date.--The amendments made
    by subsection (b) shall take effect on the date that is 180 days after
    the date of the enactment of this Act.

    SEC. 646. <<NOTE: 8 USC 1255 note.>>  ADJUSTMENT OF STATUS FOR CERTAIN
                POLISH AND HUNGARIAN PAROLEES.

        (a) In General.--The Attorney General shall adjust the status of an
    alien described in subsection (b) to that of an alien lawfully admitted
    for permanent residence if the alien--
                (1) applies for such adjustment;
                (2) has been physically present in the United States for at
            least 1 year and is physically present in the United States on
            the date the application for such adjustment is filed;
                (3) is admissible to the United States as an immigrant,
            except as provided in subsection (c); and
                (4) pays a fee (determined by the Attorney General) for the
            processing of such application.

        (b) Aliens Eligible for Adjustment of Status.--The benefits provided
    in subsection (a) shall only apply to an alien who--
                (1) was a national of Poland or Hungary; and

    [[Page 110 STAT. 3009-710]]

                (2) was inspected and granted parole into the United States
            during the period beginning on November 1, 1989, and ending on
            December 31, 1991, after being denied refugee status.

        (c) Waiver of Certain Grounds for Inadmissibility.--The provisions
    of paragraphs (4), (5), and (7)(A) of section 212(a) of the Immigration
    and Nationality Act shall not apply to adjustment of status under this
    section and the Attorney General may waive any other provision of such
    section (other than paragraph (2)(C) and subparagraphs (A), (B), (C), or
    (E) of paragraph (3)) with respect to such an adjustment for
    humanitarian purposes, to assure family unity, or when it is otherwise
    in the public interest.
        (d) Date of Approval.--Upon the approval of such an application for
    adjustment of status, the Attorney General shall create a record of the
    alien's admission as an alien lawfully admitted for permanent residence
    as of the date of the alien's inspection and parole described in
    subsection (b)(2).
        (e) No Offset in Number of Visas Available.--When an alien is
    granted the status of having been lawfully admitted for permanent
    residence under this section, the Secretary of State shall not be
    required to reduce the number of immigrant visas authorized to be issued
    under the Immigration and Nationality Act.

    SEC. 647. <<NOTE: 8 USC 1448 note.>>  SUPPORT OF DEMONSTRATION PROJECTS.

        (a) In General.--The Attorney General shall make available funds
    under this section, in each of fiscal years 1997 through 2001, to the
    Commissioner of Immigration and Naturalization or to other public or
    private nonprofit entities to support demonstration projects under this
    section at 10 sites throughout the United States. Each such project
    shall be designed to provide for the administration of the oath of
    allegiance under section 337(a) of the Immigration and Nationality Act
    on a business day around Independence Day to approximately 500 people
    whose application for naturalization has been approved. Each project
    shall provide for appropriate outreach and ceremonial and celebratory
    activities.
        (b) Selection of Sites.--The Attorney General shall, in the Attorney
    General's discretion, select diverse locations for sites on the basis of
    the number of naturalization applicants living in proximity to each site
    and the degree of local community participation and support in the
    project to be held at the site. Not more than 2 sites may be located in
    the same State. The Attorney General shall consider changing the sites
    selected from year to year.
        (c) Amounts Available; Use of Funds.--
                (1) Amount.--The amount made available under this section
            with respect to any single site for a year shall not exceed
            $5,000.
                (2) Use.--Funds made available under this section may be
            used only to cover expenses incurred in carrying out oath
            administration ceremonies at the demonstration sites under
            subsection (a), including expenses for--
                        (A) cost of personnel of the Immigration and
                    Naturalization Service (including travel and overtime
                    expenses);
                        (B) rental of space; and
                        (C) costs of printing appropriate brochures and
                    other information about the ceremonies.

    [[Page 110 STAT. 3009-711]]

                (3) Availability of funds.--Funds that are otherwise
            available to the Immigration and Naturalization Service to carry
            out naturalization activities shall be available, to the extent
            provided in appropriation Acts, to carry out this section.

        (d) Application.--In the case of an entity other than the
    Immigration and Naturalization Service seeking to conduct a
    demonstration project under this section, no amounts may be made
    available to the entity under this section unless an appropriate
    application has been made to, and approved by, the Attorney General, in
    a form and manner specified by the Attorney General.

    SEC. 648. <<NOTE: 8 USC 1101 note.>>  SENSE OF CONGRESS REGARDING
                AMERICAN-MADE PRODUCTS; REQUIREMENTS REGARDING NOTICE.

        (a) Purchase of American-Made Equipment and Products.--It is the
    sense of the Congress that, to the greatest extent practicable, all
    equipment and products purchased with funds made available under this
    division should be American-made.
        (b) Notice to Recipients of Grants.--In providing grants under this
    division, the Attorney General, to the greatest extent practicable,
    shall provide to each recipient of a grant a notice describing the
    statement made in subsection (a) by the Congress.

    SEC. 649. VESSEL MOVEMENT CONTROLS DURING IMMIGRATION EMERGENCY.

        Section 1 of the Act of June 15, 1917 (50 U.S.C. 191) is amended in
    the first sentence by inserting ``or whenever the Attorney General
    determines that an actual or anticipated mass migration of aliens en
    route to, or arriving off the coast of, the United States presents
    urgent circumstances requiring an immediate Federal response,'' after
    ``United States,'' the first place such term appears.

    SEC. 650. REVIEW OF PRACTICES OF TESTING ENTITIES.

        (a) In General.--The Attorney General shall investigate, and submit
    a report to the Committees on the Judiciary of the House of
    Representatives and of the Senate regarding, the practices of entities
    authorized to administer standardized citizenship tests pursuant to
    section 312.3(a) of title 8, Code of Federal Regulations. The report
    shall include any findings of fraudulent practices by such entities.
        (b) Preliminary and Final Reports.--Not later than 90 days after the
    date of the enactment of this Act, the Attorney General shall submit to
    the Committees on the Judiciary of the House of Representatives and of
    the Senate a preliminary report on the investigation conducted under
    subsection (a). The Attorney General shall submit to such Committees a
    final report on such investigation not later than 275 days after the
    submission of the preliminary report.

    SEC. 651. DESIGNATION OF A UNITED STATES CUSTOMS ADMINISTRATIVE
                BUILDING.

        (a) Designation.--The United States Customs Administrative Building
    at the Ysleta/Zaragosa Port of Entry located at 797 South Zaragosa Road
    in El Paso, Texas, is designated as the ``Timothy C. McCaghren Customs
    Administrative Building''.
        (b) Legal References.--Any reference in any law, regulation,
    document, record, map, or other paper of the United States to the
    building referred to in subsection (a) is deemed to be a reference to
    the ``Timothy C. McCaghren Customs Administrative Building''.

    [[Page 110 STAT. 3009-712]]

    SEC. 652. <<NOTE: 8 USC 1375.>>  MAIL-ORDER BRIDE BUSINESS.

        (a) Findings.--The Congress finds as follows:
                (1) There is a substantial ``mail-order bride'' business in
            the United States. With approximately 200 companies in the
            United States, an estimated 2,000 to 3,500 men in the United
            States find wives through mail-order bride catalogs each year.
            However, there are no official statistics available on the
            number of mail-order brides entering the United States each
            year.
                (2) The companies engaged in the mail-order bride business
            earn substantial profits.
                (3) Although many of these mail-order marriages work out, in
            many other cases, anecdotal evidence suggests that mail-order
            brides find themselves in abusive relationships. There is also
            evidence to suggest that a substantial number of mail-order
            marriages are fraudulent under United States law.
                (4) Many mail-order brides come to the United States unaware
            or ignorant of United States immigration law. Mail-order brides
            who are battered often think that if they
    flee an abusive marriage, they will be deported. Often the citizen
    spouse threatens to have them deported if they report the abuse.
                (5) The Immigration and Naturalization Service estimates
            that the rate of marriage fraud between foreign nationals and
            United States citizens or aliens lawfully admitted for permanent
            residence is 8 percent. It is unclear what percentage of these
            marriage fraud cases originate as mail-order marriages.

        (b) Information Dissemination.--
                (1) Requirement.--Each international matchmaking
            organization doing business in the United States shall
            disseminate to recruits, upon recruitment, such immigration and
            naturalization information as the Immigration and Naturalization
            Service deems appropriate, in the recruit's native language,
            including information regarding conditional permanent residence
            status and the battered spouse waiver under such status,
            permanent resident status, marriage fraud penalties, the
            unregulated nature of the business engaged in by such
            organizations, and the study required under subsection (c).
                (2) Civil penalty.--
                        (A) Violation.--Any international matchmaking
                    organization that the Attorney General determines has
                    violated subsection (b) shall be subject, in addition to
                    any other penalties that may be prescribed by law, to a
                    civil money penalty of not more than $20,000 for each
                    such violation.
                        (B) Procedures for imposition of penalty.--Any
                    penalty under subparagraph (A) may be imposed only after
                    notice and opportunity for an agency hearing on the
                    record in accordance with sections 554 through 557 of
                    title 5, United States Code.

        (c) Study.--The Attorney General, in consultation with the
    Commissioner of Immigration and Naturalization and the Director of the
    Violence Against Women Initiative of the Department of Justice, shall
    conduct a study of mail-order marriages to determine, among other
    things--
                (1) the number of such marriages;

    [[Page 110 STAT. 3009-713]]

                (2) the extent of marriage fraud in such marriages,
            including an estimate of the extent of marriage fraud arising
            from the services provided by international matchmaking
            organizations;
                (3) the extent to which mail-order spouses utilize section
            244(a)(3) of the Immigration and Nationality Act (providing for
            suspension of deportation in certain cases involving abuse), or
            section 204(a)(1)(A)(iii) of such Act (providing for certain
            aliens who have been abused to file a classification petition on
            their own behalf);
                (4) the extent of domestic abuse in mail-order marriages;
            and
                (5) the need for continued or expanded regulation and
            education to implement the objectives of the Violence Against
            Women Act of 1994 and the Immigration Marriage Fraud Amendments
            of 1986 with respect to mail-order marriages.

        (d) Report.--Not later than 1 year after the date of the enactment
    of this Act, the Attorney General shall submit a report to the
    Committees on the Judiciary of the House of Representatives and of the
    Senate setting forth the results of the study conducted under subsection
    (c).
        (e) Definitions.--As used in this section:
                (1) International matchmaking organization.--
                        (A) In general.--The term ``international
                    matchmaking organization'' means a corporation,
                    partnership, business, or other legal entity, whether or
                    not organized under the laws of the United States or any
                    State, that does business in the United States and for
                    profit offers to United States citizens or aliens
                    lawfully admitted for permanent residence, dating,
                    matrimonial, or social referral services to nonresident
                    noncitizens, by--
                              (i) an exchange of names, telephone numbers,
                          addresses, or statistics;
                              (ii) selection of photographs; or
                              (iii) a social environment provided by the
                          organization in a country other than the United
                          States.
                        (B) Exception.--Such term does not include a
                    traditional matchmaking organization of a religious
                    nature that otherwise operates in compliance with the
                    laws of the countries of the recruits of such
                    organization and the laws of the United States.
                (2) Recruit.--The term ``recruit'' means a noncitizen,
            nonresident person, recruited by the international matchmaking
            organization for the purpose of providing dating, matrimonial,
            or social referral services to United States citizens or aliens
            lawfully admitted for permanent residence.

    SEC. 653. REVIEW AND REPORT ON H-2A NONIMMIGRANT WORKERS PROGRAM.

        (a) Sense of the Congress.--It is the sense of the Congress that the
    H2-A nonimmigrant worker program should be reviewed and may need
    improvement in order to meet the need of producers of labor-intensive
    agricultural commodities and livestock in the United States for an
    adequate workforce.
        (b) Review.--The Comptroller General shall review the effectiveness
    of the H-2A nonimmigrant worker program to ensure that the program
    provides a sufficient supply of agricultural labor

    [[Page 110 STAT. 3009-714]]

    in the event of future shortages of domestic workers after the enactment
    of this Act. Among other things, the Comptroller General shall review
    the H-2A nonimmigrant worker program to determine--
                (1) whether the program ensures that an adequate supply of
            qualified United States workers is available at the time and
            place needed for employers seeking such workers after the date
            of enactment of this Act;
                (2) whether the program ensures that there is timely
            approval of applications for temporary foreign workers under the
            program in the event of shortages of United States workers after
            the date of the enactment of this Act;
                (3) whether the program ensures that implementation of the
            program is not displacing United States agricultural workers or
            diminishing the terms and conditions of employment of United
            States agricultural workers;
                (4) if, and to what extent, the program is contributing to
            the problem of illegal immigration; and
                (5) that the program adequately meets the needs of
            agricultural employers for all types of temporary foreign
            agricultural workers, including higher-skilled workers in
            occupations which require a level of specific vocational
            preparation of 4 or higher (as described in the 4th edition of
            the Dictionary of Occupational Title, published by the
            Department of Labor).

        (c) Report.--Not later than December 31, 1996, or 3 months after the
    date of the enactment of this Act, whichever occurs earlier, the
    Comptroller General shall submit a report to the appropriate committees
    of the Congress setting forth the conclusions of the Comptroller General
    from the review conducted under subsection (b).
        (d) Definitions.--As used in this section:
                (1) The term ``Comptroller General'' means the Comptroller
            General of the United States.
                (2) The term ``H-2A nonimmigrant worker program'' means the
            program for the admission of nonimmigrant aliens described in
            section 101(a)(15)(H)(ii)(a) of the Immigration and Nationality
            Act.

    SEC. 654. REPORT ON ALLEGATIONS OF HARASSMENT BY CANADIAN CUSTOMS
                AGENTS.

        (a) Study and Review.--
                (1) In general.--Not later than 30 days after the date of
            the enactment of this Act, the Commissioner of the United States
            Customs Service shall initiate a study of harassment by Canadian
            customs agents allegedly undertaken for the purpose of deterring
            cross-border commercial activity along the United States-New
            Brunswick border. Such study shall include a review of the
            possible connection between any incidents of harassment and the
            discriminatory imposition of the New Brunswick provincial sales
            tax on goods purchased in the United States by New Brunswick
            residents, and with any other actions taken by the Canadian
            provincial governments to deter cross-border commercial
            activities.
                (2) Consultation.--In conducting the study under paragraph
            (1), the Commissioner of the United States Customs Service shall
            consult with representatives of the State of Maine,

    [[Page 110 STAT. 3009-715]]

            local governments, local businesses, and any other knowledgeable
            persons who the Commissioner considers to be important to the
            completion of the study.

        (b) Report.--Not later than 120 days after the date of the enactment
    of this Act, the Commissioner of the United States Customs Service shall
    submit to the Committees on the Judiciary of the House of
    Representatives and of the Senate a report on the study and review
    conducted under subsection (a). The report shall include recommendations
    for steps that the United States Government can take to help end any
    harassment by Canadian customs agents that is found to have occurred.

    SEC. 655. SENSE OF CONGRESS ON DISCRIMINATORY APPLICATION OF NEW
                BRUNSWICK PROVINCIAL SALES TAX.

        (a) Findings.--The Congress finds as follows:
                (1) In July 1993, Canadian customs officers began collecting
            an 11 percent New Brunswick provincial sales tax on goods
            purchased in the United States by New Brunswick residents, an
            action that has caused severe economic harm to United States
            businesses located in proximity to the border with New
            Brunswick.
                (2) This impediment to cross-border trade compounds the
            damage already done from the Canadian Government's
    imposition of a 7 percent tax on all goods bought by Canadians in the
    United States.
                (3) Collection of the New Brunswick provincial sales tax on
            goods purchased outside of New Brunswick is effected only along
            the United States-Canadian border, not along New Brunswick's
            borders with other Canadian provinces; the tax is thus being
            administered by Canadian authorities in a manner uniquely
            discriminatory to Canadians shopping in the United States.
                (4) In February 1994, the United States Trade Representative
            publicly stated an intention to seek redress from the
            discriminatory application of the New Brunswick provincial sales
            tax under the dispute resolution process in chapter 20 of the
            North American Free Trade Agreement (NAFTA), but the United
            States Government has still not made such a claim under NAFTA
            procedures.
                (5) Initially, the United States Trade Representative argued
            that filing a New Brunswick provincial sales tax claim was
            delayed only because the dispute mechanism under NAFTA had not
            yet been finalized, but more than a year after such mechanism
            has been put in place, the claim has still not been put forward
            by the United States Trade Representative.

        (b) Sense of Congress.--It is the sense of the Congress that--
                (1) the provincial sales tax levied by the Canadian province
            of New Brunswick on Canadian citizens of that province who
            purchase goods in the United States--
                        (A) raises questions about a possible violation of
                    the North American Free Trade Agreement in the
                    discriminatory application of the tax to cross-border
                    trade with the United States; and
                        (B) damages good relations between the United States
                    and Canada; and
                (2) the United States Trade Representative should move
            forward without further delay in seeking redress under the

    [[Page 110 STAT. 3009-716]]

            dispute resolution process in chapter 20 of the North American
            Free Trade Agreement for the violation.

    SEC. 656. <<NOTE: 5 USC 301 note.>>  IMPROVEMENTS IN IDENTIFICATION-
                RELATED DOCUMENTS.

        (a) Birth Certificates.--
                (1) Standards for acceptance by federal agencies.--
                        (A) In general.--
                              (i) General rule.--Subject to clause (ii), a
                          Federal agency may not accept for any official
                          purpose a certificate of birth, unless the
                          certificate--
                                        (I) is a birth certificate (as
                                    defined in paragraph (3)); and
                                        (II) conforms to the standards set
                                    forth in the regulation promulgated
                                    under subparagraph (B).
                              (ii) Applicability.--Clause (i) shall apply
                          only to a certificate of birth issued after the
                          day that is 3 years after the date of the
                          promulgation of a final regulation under
                          subparagraph (B). Clause (i) shall not be
                          construed to prevent a Federal agency from
                          accepting for official purposes any certificate of
                          birth issued on or before such day.
                        (B) Regulation.--
                              (i) Consultation with government agencies.--
                          The President shall select 1 or more Federal
                          agencies to consult with State vital statistics
                          offices, and with other appropriate Federal
                          agencies designated by the President, for the
                          purpose of developing appropriate standards for
                          birth certificates that may be accepted for
                          official purposes by Federal agencies, as provided
                          in subparagraph (A).
                              (ii) Selection of lead agency.--Of the Federal
                          agencies selected under clause (i), the President
                          shall select 1 agency to promulgate, upon the
                          conclusion of the consultation conducted under
                          such clause, a regulation establishing standards
                          of the type described in such clause.
                              (iii) Deadline.--The agency selected under
                          clause (ii) shall promulgate a final regulation
                          under such clause not later than the date that is
                          1 year after the date of the enactment of this
                          Act.
                              (iv) Minimum requirements.--The standards
                          established under this subparagraph--
                                        (I) at a minimum, shall require
                                    certification of the birth certificate
                                    by the State or local custodian of
                                    record that issued the certificate, and
                                    shall require the use of safety paper,
                                    the seal of the issuing custodian of
                                    record, and other features designed to
                                    limit tampering, counterfeiting, and
                                    photocopying, or otherwise duplicating,
                                    the birth certificate for fraudulent
                                    purposes;
                                        (II) may not require a single design
                                    to which birth certificates issued by
                                    all States must conform; and
                                        (III) shall accommodate the
                                    differences between the States in the
                                    manner and form in

    [[Page 110 STAT. 3009-717]]

                                    which birth records are stored and birth
                                    certificates are produced from such
                                    records.
                (2) Grants to states.--
                        (A) Assistance in meeting federal standards.--
                              (i) In general.--Beginning on the date a final
                          regulation is promulgated under paragraph (1)(B),
                          the Secretary of Health and Human Services, acting
                          through the Director of the National Center for
                          Health Statistics and after consulting with the
                          head of any other agency designated by the
                          President, shall make grants to States to assist
                          them in issuing birth certificates that conform to
                          the standards set forth in the regulation.
                              (ii) Allocation of grants.--The Secretary
                          shall provide grants to States under this
                          subparagraph in proportion to the populations of
                          the States applying to receive a grant and in an
                          amount needed to provide a substantial incentive
                          for States to issue birth certificates that
                          conform to the standards described in clause (i).
                        (B) Assistance in matching birth and death
                    records.--
                              (i) In general.--The Secretary of Health and
                          Human Services, acting through the Director of the
                          National Center for Health Statistics and after
                          consulting with the head of any other agency
                          designated by the President, shall make grants to
                          States to assist them in developing the capability
                          to match birth and death records, within each
                          State and among the States, and to note the fact
                          of death on the birth certificates of deceased
                          persons. In developing the capability described in
                          the preceding sentence, a State that receives a
                          grant under this subparagraph shall focus first on
                          individuals born after 1950.
                              (ii) Allocation and amount of grants.--The
                          Secretary shall provide grants to States under
                          this subparagraph in proportion to the populations
                          of the States applying to receive a grant and in
                          an amount needed to provide a substantial
                          incentive for States to develop the capability
                          described in clause (i).
                        (C) Demonstration projects.--The Secretary of Health
                    and Human Services, acting through the Director of the
                    National Center for Health Statistics, shall make grants
                    to States for a project in each of 5 States to
                    demonstrate the feasibility of a system under which
                    persons otherwise required to report the death of
                    individuals to a State would be required to provide to
                    the State's office of vital statistics sufficient
                    information to establish the fact of death of every
                    individual dying in the State within 24 hours of
                    acquiring the information.
                (3) Birth certificate.--As used in this subsection, the term
            ``birth certificate'' means a certificate of birth--
                        (A) of--
                              (i) an individual born in the United States;
                          or
                              (ii) an individual born abroad--
                                        (I) who is a citizen or national of
                                    the United States at birth; and

    [[Page 110 STAT. 3009-718]]

                                        (II) whose birth is registered in
                                    the United States; and
                        (B) that--
                              (i) is a copy, issued by a State or local
                          authorized custodian of record, of an original
                          certificate of birth issued by such custodian of
                          record; or
                              (ii) was issued by a State or local authorized
                          custodian of record and was produced from birth
                          records maintained by such custodian of record.

        (b) State-Issued Drivers Licenses and Comparable Identification
    Documents.--
                (1) Standards for acceptance by federal agencies.--
                        (A) In general.--A Federal agency may not accept for
                    any identification-related purpose a driver's license,
                    or other comparable identification document, issued by a
                    State, unless the license or document satisfies the
                    following requirements:
                              (i) Application process.--The application
                          process for the license or document shall include
                          the presentation of such evidence of identity as
                          is required by regulations promulgated by the
                          Secretary of Transportation after consultation
                          with the American Association of Motor Vehicle
                          Administrators.
                              (ii) Social security number.--Except as
                          provided in subparagraph (B), the license or
                          document shall contain a social security account
                          number that can be read visually or by electronic
                          means.
                              (iii) Form.--The license or document otherwise
                          shall be in a form consistent with requirements
                          set forth in regulations promulgated by the
                          Secretary of Transportation after consultation
                          with the American Association of Motor Vehicle
                          Administrators. The form shall contain security
                          features designed to limit tampering,
                          counterfeiting, photocopying, or otherwise
                          duplicating, the license or document for
                          fraudulent purposes and to limit use of the
                          license or document by impostors.
                        (B) Exception.--The requirement in subparagraph
                    (A)(ii) shall not apply with respect to a driver's
                    license or other comparable identification document
                    issued by a State, if the State--
                              (i) does not require the license or document
                          to contain a social security account number; and
                              (ii) requires--
                                        (I) every applicant for a driver's
                                    license, or other comparable
                                    identification document, to submit the
                                    applicant's social security account
                                    number; and
                                        (II) an agency of the State to
                                    verify with the Social Security
                                    Administration that such account number
                                    is valid.
                        (C) Deadline.--The Secretary of Transportation shall
                    promulgate the regulations referred to in clauses (i)
                    and (iii) of subparagraph (A) not later than 1 year
                    after the date of the enactment of this Act.
                (2) Grants to states.--Beginning on the date final
            regulations are promulgated under paragraph (1), the Secretary
            of

    [[Page 110 STAT. 3009-719]]

            Transportation shall make grants to States to assist them in
            issuing driver's licenses and other comparable identification
            documents that satisfy the requirements under such paragraph.
                (3) Effective dates.--
                        (A) In general.--Except as otherwise provided in
                    this paragraph, this subsection shall take effect on the
                    date of the enactment of this Act.
                        (B) Prohibition on federal agencies.--Subparagraphs
                    (A) and (B) of paragraph (1) shall take effect beginning
                    on October 1, 2000, but shall apply only to licenses or
                    documents issued to an individual for the first time and
                    to replacement or renewal licenses or documents issued
                    according to State law.

        (c) Report.--Not later than 1 year after the date of the enactment
    of this Act, the Secretary of Health and Human Services shall submit a
    report to the Congress on ways to reduce the fraudulent obtaining and
    the fraudulent use of birth certificates, including any such use to
    obtain a social security account number or a State or Federal document
    related to identification or immigration.
        (d) Federal Agency Defined.--For purposes of this section, the term
    ``Federal agency'' means any of the following:
                (1) An Executive agency (as defined in section 105 of title
            5, United States Code).
                (2) A military department (as defined in section 102 of such
            title).
                (3) An agency in the legislative branch of the Government of
            the United States.
                (4) An agency in the judicial branch of the Government of
            the United States.

    SEC. 657. <<NOTE: 42 USC 405 note.>>  DEVELOPMENT OF PROTOTYPE OF
                COUNTERFEIT-RESISTANT SOCIAL SECURITY CARD.

        (a) Development.--
                (1) In general.--The Commissioner of Social Security (in
            this section referred to as the ``Commissioner'') shall, in
            accordance with the provisions of this section, develop a
            prototype of a counterfeit-resistant social security card. Such
            prototype card--
                        (A) shall be made of a durable, tamper-resistant
                    material such as plastic or polyester;
                        (B) shall employ technologies that provide security
                    features, such as magnetic stripes, holograms, and
                    integrated circuits; and
                        (C) shall be developed so as to provide individuals
                    with reliable proof of citizenship or legal resident
                    alien status.
                (2) Assistance by attorney general.--The Attorney General
            shall provide such information and assistance as the
            Commissioner deems necessary to achieve the purposes of this
            section.

        (b) Studies and Reports.--
                (1) In general.--The Comptroller General and the
            Commissioner of Social Security shall each conduct a study, and
            issue a report to the Congress, that examines different methods
            of improving the social security card application process.

    [[Page 110 STAT. 3009-720]]

                (2) Elements of studies.--The studies shall include
            evaluations of the cost and work load implications of issuing a
            counterfeit-resistant social security card for all individuals
            over a 3, 5, and 10 year period. The studies shall also evaluate
            the feasibility and cost implications of imposing a user fee for
            replacement cards and cards issued to individuals who apply for
            such a card prior to the scheduled 3, 5, and 10 year phase-in
            options.
                (3) Distribution of reports.--Copies of the reports
            described in this subsection, along with facsimiles of the
            prototype cards as described in subsection (a), shall be
            submitted to the Committees on Ways and Means and Judiciary of
            the House of Representatives and the Committees on Finance and
            Judiciary of the Senate not later than 1 year after the date of
            the enactment of this Act.

    SEC. 658. BORDER PATROL MUSEUM.

        (a) Authority.--Notwithstanding section 203 of the Federal Property
    and Administrative Services Act of 1949 (40 U.S.C. 484) or any other
    provision of law, the Attorney General is authorized to transfer and
    convey to the Border Patrol Museum and Memorial Library Foundation,
    incorporated in the State of Texas, such equipment, artifacts, and
    memorabilia held by the Immigration and Naturalization Service as the
    Attorney General may determine is necessary to further the purposes of
    the Museum and Foundation.
        (b) Technical Assistance.--The Attorney General is authorized to
    provide technical assistance, through the detail of personnel of the
    Immigration and Naturalization Service, to the Border Patrol Museum and
    Memorial Library Foundation for the purpose of demonstrating the use of
    the items transferred under subsection (a).

    SEC. 659. SENSE OF THE CONGRESS REGARDING THE MISSION OF THE IMMIGRATION
                AND NATURALIZATION SERVICE.

        It is the sense of the Congress that the mission statement of the
    Immigration and Naturalization Service should include a statement that
    it is the responsibility of the Service to detect, apprehend, and remove
    those aliens unlawfully present in the United States, particularly those
    aliens involved in drug trafficking or other criminal activity.

    SEC. 660. AUTHORITY FOR NATIONAL GUARD TO ASSIST IN TRANSPORTATION OF
                CERTAIN ALIENS.

        Section 112(d)(1) of title 32, United States Code, is amended by
    adding at the end the following new sentence: ``The plan as approved by
    the Secretary may provide for the use of personnel and equipment of the
    National Guard of that State to assist the Immigration and
    Naturalization Service in the transportation of aliens who have violated
    a Federal or State law prohibiting or regulating the possession, use, or
    distribution of a controlled substance.''.

                        Subtitle E--Technical Corrections

    SEC. 671. MISCELLANEOUS TECHNICAL CORRECTIONS.

        (a) Amendments Relating to Public Law 103-322 (Violent Crime Control
    and Law Enforcement Act of 1994).--

    [[Page 110 STAT. 3009-721]]

                (1) Section 60024(1)(F) of the Violent Crime Control and Law
            Enforcement Act of <<NOTE: 8 USC 1324.>>  1994 (Public Law 103-
            322) (in this subsection referred to as ``VCCLEA'') is amended
            by inserting ``United States Code,'' after ``title 18,''.
                (2) Section 130003(b)(3) of VCCLEA <<NOTE: 8 USC 1258.>>  is
            amended by striking ``Naturalization'' and inserting
            ``Nationality''.
                (3)(A) Section 214 (8 U.S.C. 1184) is amended by
            redesignating the subsection (j), added by section 130003(b)(2)
            of VCCLEA (108 Stat. 2025), and the subsection (k), as amended
            by section 622(c) of this division, as subsections (k) and (l),
            respectively.
                (B) Section 101(a)(15)(S) (8 U.S.C. 1101(a)(15)(S)) is
            amended by striking ``214(j)'' and inserting ``214(k)''.
                (4)(A) Section 245 (8 U.S.C. 1255) is amended by
            redesignating the subsection (i) added by section 130003(c)(1)
            of VCCLEA as subsection (j).
                (B) Section 241(a)(2)(A)(i)(I) (8 U.S.C.
            1251(a)(2)(A)(i)(I)), as amended by section 130003(d) of VCCLEA
            and before redesignation by section 305(a)(2) of this division,
            is amended by striking ``245(i)'' and inserting ``245(j)''.
                (5) Section 245(j)(3), as added by section 130003(c)(1) of
            VCCLEA <<NOTE: 8 USC 1255.>>  and as redesignated by paragraph
            (4)(A), is amended by striking ``paragraphs (1) or (2)'' and
            inserting ``paragraph (1) or (2)''.
                (6) Section 130007(a) of VCCLEA <<NOTE: 8 USC 1252 note.>>
            is amended by striking ``242A(d)'' and inserting ``242A(a)(3)''.
                (7) <<NOTE: 8 USC 1101 note.>>  The amendments made by this
            subsection shall be effective as if included in the enactment of
            the VCCLEA.

        (b) Amendments Relating to Immigration and Nationality Technical
    Corrections Act of 1994.--
                (1) Section 101(d) of the Immigration and Nationality
            Technical Corrections <<NOTE: 8 USC 1401 note.>>  Act of 1994
            (Public Law 103-416) (in this subsection referred to as
            ``INTCA'') is amended--
                        (A) by striking ``Application'' and all that follows
                    through ``This'' and inserting ``Applicability of
                    Transmission Requirements.--This'';
                        (B) by striking ``any residency or other retention
                    requirements for'' and inserting ``the application of
                    any provision of law relating to residence or physical
                    presence in the United States for purposes of
                    transmitting United States''; and
                        (C) by striking ``as in effect'' and all that
                    follows through the end and inserting ``to any person
                    whose claim is based on the amendment made by subsection
                    (a) or through whom such a claim is derived.''.
                (2) Section 102 <<NOTE: 8 USC 1433 note.>>  of INTCA is
            amended by adding at the end the following:

        ``(e) Transition.--In applying the amendment made by subsection (a)
    to children born before November 14, 1986, any reference in the matter
    inserted by such amendment to `five years, at least two of which' is
    deemed a reference to `10 years, at least 5 of which'.''.
                (3) Section 351(a) (8 U.S.C. 1483(a)), as amended by section
            105(a)(2)(A) of INTCA, is amended by striking the comma after
            ``nationality''.
                (4) Section 207(2) <<NOTE: 8 USC 1255b.>>  of INTCA is
            amended by inserting a comma after ``specified''.

    [[Page 110 STAT. 3009-722]]

                (5) Section 101(a)(43) (8 U.S.C. 1101(a)(43)) is amended in
            subparagraph (K)(ii), by striking the comma after ``1588''.
                (6) Section 273(b) (8 U.S.C. 1323(b)), as amended by section
            209(a) of INTCA, is amended by striking ``remain'' and inserting
            ``remains''.
                (7) Section 209(a)(1) <<NOTE: 8 USC 1323.>>  of INTCA is
            amended by striking ``$3000'' and inserting ``$3,000''.
                (8) Section 209(b) <<NOTE: 8 USC 1323 note.>>  of INTCA is
            amended by striking ``subsection'' and inserting ``section''.
                (9) Section 219(cc) <<NOTE: 8 USC 1255a note.>>  of INTCA is
            amended by striking `` `year 1993 the first place it appears' ''
            and inserting `` `year 1993' the first place it appears''.
                (10) Section 219(ee) <<NOTE: 8 USC 1161 note.>>  of INTCA is
            amended by adding at the end the following:

        ``(3) The amendments made by this subsection shall take effect on
    the date of the enactment of this Act.''.
                (11) Paragraphs (4) and (6) of section 286(r) (8 U.S.C.
            1356(r)) are amended by inserting ``the'' before ``Fund'' each
            place it appears.
                (12) Section 221 <<NOTE: 8 USC 1101 note.>>  of INTCA is
            amended--
                        (A) by striking each semicolon and inserting a
                    comma,
                        (B) by striking ``disasters.'' and inserting
                    ``disasters,''; and
                        (C) by striking ``The official'' and inserting ``the
                    official''.
                (13) Section 242A (8 U.S.C. 1252a), as added by section
            224(a) of INTCA and before redesignation as section 238 by
            section 308(b)(5) of this division, is amended by redesignating
            subsection (d) as subsection (c).
                (14) <<NOTE: 8 USC 1101 note.>>  Except as otherwise
            provided in this subsection, the amendments made by this
            subsection shall take effect as if included in the enactment of
            INTCA.

        (c) Amendments Relating to Public Law 104-132 (Antiterrorism and
    Effective Death Penalty Act of 1996).--
                (1) Section 219 (8 U.S.C. 1189), as added by section 302(a)
            of Antiterrorism and Effective Death Penalty Act of 1996 (Public
            Law 104-132) (in this subsection referred to as ``AEDPA''), is
            amended by striking the heading and all that follows through
            ``(a)'' and inserting the following:

                ``designation of foreign terrorist organizations

        ``Sec. 219. (a)''.
                (2) Section 302(b) of AEDPA is amended by striking ``,
            relating to terrorism,''.
                (3) Section 106(a) (8 U.S.C. 1105a(a)), as amended by
            sections 401(e) and 440(a) of AEDPA, is amended--
                        (A) by striking ``and'' at the end of paragraph (8);
                        (B) by striking the period at the end of paragraph
                    (9) and inserting ``; and''; and
                        (C) in paragraph (10), by striking ``Any'' and
                    inserting ``any''.
                (4) Section 440(a) of the AEDPA is amended by striking
            ``Section 106 of the Immigration and Nationality Act (8 U.S.C.
            1105a(a)(10)) is amended to read as follows:'' and inserting
            ``Section 106(a) of the Immigration and Nationality Act (8
            U.S.C. 1105a(a)) is amended by <<NOTE:  8 USC 1252a.>>  adding
            at the end the following:''
                (5) Section 440(g)(1)(A) of AEDPA is amended--

    [[Page 110 STAT. 3009-723]]

                        (A) by striking ``of this title''; and
                        (B) by striking the period after
                    ``241(a)(2)(A)(i)''.
                (6) Section 440(g) of AEDPA is amended by striking paragraph
            (2).
                (7) The <<NOTE: 8 USC 1189 note.>>  amendments made by this
            subsection shall take effect as if included in the enactment of
            subtitle A of title IV of AEPDA.

        (d) Striking References to Section 210A.--
                (1)(A) Section 201(b)(1)(C) (8 U.S.C. 1151(b)(1)(C)) is
            amended by striking ``, 210A,''.
                (B) Section 274B(a)(3)(B) (8 U.S.C. 1324b(a)(3)(B)) is
            amended by striking ``, 210A(a),''.
                (C) Section 241(a)(1) (8 U.S.C. 1251(a)(1)), before
            redesignation by section 305(a)(2) of this division, is amended
            by striking subparagraph (F).
                (2) Sections 204(c)(1)(D)(i) and 204(j)(4) of Immigration
            Reform and Control Act of 1986 <<NOTE: 8 USC 1255a note.>>  are
            each amended by striking ``, 210A,''.

        (e) Miscellaneous Changes in the Immigration and Nationality Act.--
                (1) Before being amended by section 308(a)(2) of this
            division, the item in the table of contents relating to section
            242A is amended to read as follows:

    ``Sec. 242A. Expedited deportation of aliens convicted of
                          committing aggravated felonies.''.

                (2) Section 101(c)(1) (8 U.S.C. 1101(c)(1)) is amended by
            striking ``, 321, and 322'' and inserting ``and 321''.
                (3) Section 212(d)(11) (8 U.S.C. 1182(d)(11)) is amended by
            inserting a comma after ``(4) thereof)''.
                (4) Pursuant to section 6(b) of Public Law 103-272 (108
            Stat. 1378)--
                        (A) section 214(f)(1) (8 U.S.C. 1184(f)(1)) is
                    amended by striking ``section 101(3) of the Federal
                    Aviation Act of 1958'' and inserting ``section
                    40102(a)(2) of title 49, United States Code''; and
                        (B) section 258(b)(2) (8 U.S.C. 1288(b)(2)) is
                    amended by striking ``section 105 or 106 of the
                    Hazardous Materials Transportation Act (49 U.S.C. App.
                    1804, 1805)'' and inserting ``section 5103(b), 5104,
                    5106, 5107, or 5110 of title 49, United States Code''.
                (5) Section 286(h)(1)(A) (8 U.S.C. 1356(h)(1)(A)) is amended
            by inserting a period after ``expended''.
                (6) Section 286(h)(2)(A) (8 U.S.C. 1356(h)(2)(A)) is
            amended--
                        (A) by striking ``and'' at the end of clause (iv);
                        (B) by moving clauses (v) and (vi) 2 ems to the
                    left;
                        (C) by striking ``; and'' in clauses (v) and (vi)
                    and inserting ``and for'';
                        (D) by striking the colons in clauses (v) and (vi);
                    and
                        (E) by striking the period at the end of clause (v)
                    and inserting ``; and''.
                (7) Section 412(b) (8 U.S.C. 1522(b)) is amended by striking
            the comma after ``is authorized'' in paragraph (3) and after
            ``The Secretary'' in paragraph (4).

    [[Page 110 STAT. 3009-724]]

        (f) Miscellaneous Change in the Immigration Act of 1990.--Section
    161(c)(3) <<NOTE: 8 USC 1101 note.>>  of the Immigration Act of 1990 is
    amended by striking ``an an'' and inserting ``of an''.

        (g) Miscellaneous Changes in Other Acts.--
                (1) Section 506(a) of the Intelligence Authorization Act,
            Fiscal Year 1990 (Public Law 101-193) <<NOTE: 8 USC 1430
            note.>>  is amended by striking ``this section'' and inserting
            ``such section''.
                (2) Section 140 of the Foreign Relations Authorization Act,
            Fiscal Years 1994 and 1995, as amended by section 505(2) of
            Public <<NOTE: 8 USC 1182 note.>>  Law 103-317, is amended--
                        (A) by moving the indentation of subsections (f) and
                    (g) 2 ems to the left; and
                        (B) in subsection (g), by striking ``(g)'' and all
                    that follows through ``shall'' and inserting ``(g)
                    Subsections (d) and (e) shall''.

    DIVISION <<NOTE: Small Business Programs Improvement Act of 1996. 15 USC
    631 note.>>  D--SMALL BUSINESS PROGRAMS IMPROVEMENT ACT

    SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

          (a) Short Title.--This division may be cited as the ``Small
    Business Programs Improvement Act of 1996''.
          (b) Table of Contents.--

    Sec. 1. Short title; table of contents.
    Sec. 2. Administrator defined.
    Sec. 3. Effective date.

                    TITLE I--AMENDMENTS TO SMALL BUSINESS ACT

    Sec. 101. References.
    Sec. 102. Risk management database.
    Sec. 103. Section 7(a) loan program.
    Sec. 104. Disaster loans.
    Sec. 105. Microloan demonstration program.
    Sec. 106. Small business development center program.
    Sec. 107. Miscellaneous authorities to provide loans and other
                          financial assistance.
    Sec. 108. Small business competitiveness demonstration program.
    Sec. 109. Amendment to Small Business Guaranteed Credit
                          Enhancement Act of 1993.
    Sec. 110. STTR program extension.
    Sec. 111. Level of participation for export working capital loans.

              TITLE II--AMENDMENTS TO SMALL BUSINESS INVESTMENT ACT

    Sec. 201. References.
    Sec. 202. Modifications to development company debenture program.
    Sec. 203. Required actions upon default.
    Sec. 204. Loan liquidation pilot program.

    [[Page 110 STAT. 3009-725]]

    Sec. 205. Registration of certificates.
    Sec. 206. Preferred surety bond guarantee program.
    Sec. 207. Sense of the Congress.
    Sec. 208. Small business investment company improvements.

    SEC. 2. <<NOTE: 15 USC 631 note.>>  ADMINISTRATOR DEFINED.
          For purposes of this Act, the term ``Administrator'' means the
    Administrator of the Small Business Administration.

    SEC. 3. <<NOTE: 15 USC 633 note.>>  EFFECTIVE DATE.
          Except as otherwise expressly provided, this Act and the
    amendments made by this Act shall take effect on October 1, 1996.

                    TITLE I--AMENDMENTS TO SMALL BUSINESS ACT

    SEC. 101. REFERENCES.

          Except as otherwise expressly provided, whenever in this title an
    amendment or repeal is expressed in terms of an amendment to, or repeal
    of, a section or other provision, the reference shall be considered to
    be made to a section or other provision of the Small Business Act (15
    U.S.C. 631 et seq.).

    SEC. 102. RISK MANAGEMENT DATABASE.

          Section 4(b) (15 U.S.C. 633) is amended by inserting after
    paragraph (2) the following:
                ``(3) Risk management database.--
                        ``(A) Establishment.--The Administration shall
                    establish, within the management system for the loan
                    programs authorized by subsections (a) and (b) of
                    section 7 of this Act and title V of the Small Business
                    Investment Act of 1958, a management information system
                    that will generate a database capable of providing
                    timely and accurate information in order to identify
                    loan underwriting, collections, recovery, and
                    liquidation problems.
                        ``(B) Information to be maintained.--In addition to
                    such other information as the Administration considers
                    appropriate, the database established under subparagraph
                    (A) shall, with respect to each loan program described
                    in subparagraph (A), include information relating to--
                              ``(i) the identity of the institution making
                          the guaranteed loan or issuing the debenture;
                              ``(ii) the identity of the borrower;
                              ``(iii) the total dollar amount of the loan or
                          debenture;
                              ``(iv) the total dollar amount of government
                          exposure in each loan;
                              ``(v) the district of the Administration in
                          which the borrower has its principal office;
                              ``(vi) the principal line of business of the
                          borrower, as identified by Standard Industrial
                          Classification Code (or any successor to that
                          system);
                              ``(vii) the delinquency rate for each program
                          (including number of instances and days overdue);

    [[Page 110 STAT. 3009-726]]

                              ``(viii) the number and amount of repurchases,
                          losses, and recoveries in each program;
                              ``(ix) the number of deferrals or forbearances
                          in each program (including days and number of
                          instances);
                              ``(x) comparisons on the basis of loan
                          program, lender, Administration district and
                          region, for all the data elements maintained; and
                              ``(xi) underwriting characteristics of each
                          loan that has entered into default, including
                          term, amount and type of collateral, loan-to-value
                          and other actual and projected ratios, line of
                          business, credit history, and type of loan.
                        ``(C) Deadline for operational capability.--The
                    database established under subparagraph (A) shall--
                              ``(i) be operational not later than June 30,
                          1997; and
                              ``(ii) capture data beginning on the first day
                          of the second quarter of fiscal year 1997
                          beginning after such date and thereafter.''.

    SEC. 103. SECTION 7(a) LOAN PROGRAM.

          (a) Servicing and Liquidation of Loans by Preferred Lenders.--
    Section 7(a)(2)(C)(ii)(II) (15 U.S.C. 636(a)(2)(C)(ii)(II)) is amended
    to read as follows:
                                        ``(II) complete authority to service
                                    and liquidate such loans without
                                    obtaining the prior specific approval of
                                    the Administration for routine servicing
                                    and liquidation activities, but shall
                                    not take any actions creating an actual
                                    or apparent conflict of interest.''.
          (b) Certified Lenders Program.--Section 7(a)(19) (15 U.S.C.
    636(a)(19)) is amended by adding at the end the following new
    subparagraph:
                        ``(C) Authority to liquidate loans.--
                              ``(i) In general.--The Administrator may
                          permit lenders participating in the Certified
                          Lenders Program to liquidate loans made with a
                          guarantee from the Administration pursuant to a
                          liquidation plan approved by the Administrator.
                              ``(ii) Automatic approval.--If the
                          Administrator does not approve or deny a request
                          for approval of a liquidation plan within 10
                          business days of the date on which the request is
                          made (or with respect to any routine liquidation
                          activity under such a plan, within 5 business
                          days) such request shall be deemed to be
                          approved.''.
          (c) Limitation on Conducting Pilot Projects.--Section 7(a) (15
    U.S.C. 636(a)) is amended by adding at the end the following new
    paragraph:
                ``(25) Limitation on conducting pilot projects.--
                        ``(A) In general.--Not more than 10 percent of the
                    total number of loans guaranteed in any fiscal year
                    under this subsection may be awarded as part of a pilot
                    program which is commenced by the Administrator on or
                    after October 1, 1996.

    [[Page 110 STAT. 3009-727]]

                        ``(B) Pilot program defined.--In this paragraph, the
                    term `pilot program' means any lending program
                    initiative, project, innovation, or other activity not
                    specifically authorized by law.
                        ``(C) Low documentation loan program.--The
                    Administrator may carry out the low documentation loan
                    program for loans of $100,000 or less only through
                    lenders with significant experience in making small
                    business loans. Not later than 90 days after the date of
                    enactment of this subsection, the Administrator shall
                    promulgate regulations defining the experience necessary
                    for participation as a lender in the low documentation
                    loan program.''.
          (d) Calculation of Subsidy Rate.--Section 7(a) (15 U.S.C. 636(a))
    is amended by adding at the end the following new paragraph:
                ``(26) Calculation of subsidy rate.--All fees, interest, and
            profits received and retained by the Administration under this
            subsection shall be included in the calculations made by the
            Director of the Office of Management and Budget to offset the
            cost (as that term is defined in section 502 of the Federal
            Credit Reform Act of 1990) to the Administration of purchasing
            and guaranteeing loans under this Act.''.
          (e) Sale of Unguaranteed Portions of SBA Loans.--Section 5(f)(3)
    (15 U.S.C. 634(f)(3)) is amended by adding at the end the following:
    ``Beginning on March 31, 1997, the sale of the unguaranteed portion of
    any loan made under section 7(a) shall not be permitted until a final
    regulation that applies uniformly to both depository institutions and
    other lenders is promulgated by the Administration setting forth the
    terms and conditions under which such sales can be permitted, including
    maintenance of appropriate reserve requirements and other safeguards to
    protect the safety and soundness of the program.''.
          (f) Conditions on Purchase of Loans.--Section 7(a)(4) (15 U.S.C.
    636(a)(4)) is amended--
                (1) by striking ``(4) Notwithstanding'' and inserting the
            following:
                ``(4) Interest rates and fees.--
                        ``(A) Interest rates.--Notwithstanding''; and
                (2) by adding at the end the following new subparagraph:
                        ``(B) Payment of accrued interest.--
                              ``(i) In general.--Any bank or other lending
                          institution making a claim for payment on the
                          guaranteed portion of a loan made under this
                          subsection shall be paid the accrued interest due
                          on the loan from the earliest date of default to
                          the date of payment of the claim at a rate not to
                          exceed the rate of interest on the loan on the
                          date of default, minus one percent.
                              ``(ii) Loans sold on secondary market.--If a
                          loan described in clause (i) is sold on the
                          secondary market, the amount of interest paid to a
                          bank or other lending institution described in
                          that clause from the earliest date of default to
                          the date of payment of the claim shall be no more
                          than the agreed upon rate, minus one percent.''.
          (g) Plan for Transfer of Loan Servicing Functions to Centralized
    Centers.--

    [[Page 110 STAT. 3009-728]]

                (1) Implementation plan required.--The Administrator shall
            submit a detailed plan for completing the consolidation, in one
            or more centralized centers, of the performance of the various
            functions relating to the servicing of loans directly made or
            guaranteed by the Administration pursuant to the Small Business
            Act, addressing the matters described in paragraph (2) by the
            deadline specified in paragraph (3).
                (2) Contents of plan.--In addition to such other matters as
            the Administrator may deem appropriate, the plan required by
            paragraph (1) shall include--
                        (A) the proposed number and location of such
                    centralized loan servicing centers;
                        (B) the proposed workload (identified by type and
                    numbers of loans and their geographic
    origin by the Small Business Administration district office) and
    staffing of each such center;
                        (C) a detailed, time-phased plan for the transfer of
                    the identified loan servicing functions to each proposed
                    center; and
                        (D) any identified impediments to the timely
                    execution of the proposed plan (including adequacy of
                    available financial resources, availability of needed
                    personnel, facilities, and related equipment) and the
                    recommendations of the Administrator for addressing such
                    impediments.
                (3) Deadline for submission.--Not later than February 28,
            1997, the plan required by paragraph (1) shall be submitted to
            the Committees on Small Business of the House of Representatives
            and Senate.
          (h) <<NOTE: 15 USC 634 note.>>  Preferred Lender Standard Review
    Program.--Not later than 90 days after the date of enactment of this
    Act, the Administrator shall commence a standard review program for the
    Preferred Lender Program established by section 5(b)(7) of the Small
    Business Act (15 U.S.C. 634(b)(7)), which shall include annual or more
    frequent assessments of the participation of the lender in the program,
    including defaults, loans, and recoveries of loans made by that lender
    under the authority of this section. The Administrator shall require
    such standard review for each new entrant to the Preferred Lender
    Program.
          (i) Independent Study of Loan Programs.--
                (1) Study required.--The Administrator shall contract with
            one or more private sector parties to conduct a comprehensive
            assessment of the performance of the loan programs authorized by
            section 7(a) of the Small Business Act (15 U.S.C. 636(a)) and
            title V of the Small Business Investment Act of 1958 (15 U.S.C.
            661) addressing the matters described in paragraph (2) and
            resulting in a report to the Congress pursuant to paragraph (5).
                (2) Matters to be assessed.--In addition to such other
            matters as the Administrator considers appropriate, the
            assessment required by paragraph (1) shall address, with respect
            to each loan program described in paragraph (1) for each of the
            fiscal years described in paragraph (3)--
                        (A) the number and frequency of deferrals and
                    defaults;
                        (B) default rates;
                        (C) comparative loss rates, by--

    [[Page 110 STAT. 3009-729]]

                              (i) type of lender (separately addressing
                          preferred lenders, certified lenders, and general
                          participation lenders);
                              (ii) term of the loan;
                              (iii) dollar value of the loan at
                          disbursement; and
                              (iv) underwriting characteristics of each loan
                          that has entered into default, including term,
                          amount and type of collateral, loan-to-value and
                          other actual and projected ratios, line of
                          business, credit history, and type of loan; and
                        (D) the economic models used by the Office of
                    Management and Budget to calculate the credit subsidy
                    rate applicable to the loan programs.
                (3) Period of assessment.--The assessments undertaken
            pursuant to paragraph (2) shall address data for the period
            beginning with fiscal year 1986 of each loan program described
            in paragraph (1).
                (4) Access to information.--The Administrator shall provide
            to the contractor access to any information collected by or
            available to the Administration with regard to the loan programs
            being assessed. The contactor shall preserve the confidentiality
            of any information for which confidentiality is protected by law
            or properly asserted by the person submitting such information.
                (5) Contract funding.--The Administrator shall fund the cost
            of the contract from the amounts appropriated for the salaries
            and expenses of the Administration for fiscal year 1997.
                (6) Report to the congress.--
                        (A) Contents.--The contractor shall prepare a report
                    of--
                              (i) its analyses of the matters to be assessed
                          pursuant to paragraph (2); and
                              (ii) its independent recommendations for
                          improving program performance with respect to each
                          loan program, regarding--
                                        (I) improving the timely collection
                                    and subsequent management by the
                                    Administration of data to measure the
                                    performance of each loan program
                                    described in paragraph (1); and
                                        (II) reducing loss rates for and
                                    improving the performance of each such
                                    loan program.
                        (B) Submission to the congress.--Not later than June
                    30, 1997, the Administrator
     shall submit the report prepared under subparagraph (A) to the
    Committees on Small Business of the House of Representatives and the
    Senate. The Administrator shall append his comments, and those of the
    Office of Management and Budget, if any, to the report.

    SEC. 104. DISASTER LOANS.

          (a) <<NOTE: 15 USC 636 note.>>  Private Sector Loan Servicing
    Demonstration Program.--
                (1) In general.--
                        (A) Demonstration program required.--Notwithstanding
                    any other provision of law, the Administration

    [[Page 110 STAT. 3009-730]]

                    shall conduct a demonstration program, within the
                    parameters described in paragraph (2), to evaluate the
                    comparative costs and benefits of having the
                    Administration's portfolio of disaster loans serviced
                    under contract rather than directly by employees of the
                    Administration. All costs of the demonstration program
                    shall be paid from amounts made available for the
                    Salaries and Expenses Account of the Administration.
                        (B) Initiation date.--Not later than 90 days after
                    the date of enactment of this Act, the Administration
                    shall issue a request for proposals for the program
                    parameters described in paragraph (2).
                (2) Demonstration program parameters.--
                        (A) Loan sample.--The sample of loans for the
                    demonstration program shall be randomly drawn from the
                    Administration's portfolio of loans made pursuant to
                    section 7(b) of the Small Business Act and shall include
                    a representative group of not less than 30 percent of
                    all loans for residential properties, including 30
                    percent of all loans made during the demonstration
                    program after the date of enactment of this Act, which
                    loans shall be selected by the Administration on the
                    basis of geographic distribution and such other factors
                    as the Administration determines to be appropriate.
                        (B)  Contract and options.--The Administration shall
                    solicit and competitively award one or more contracts to
                    service the loans included in the sample of loans
                    described in subparagraph (A) for a term of not less
                    than one year, with 3 one-year contract renewal options,
                    each of which shall be exercised by the Administration
                    unless the Administration terminates the contractor or
                    contractors for good cause.
                (3) Term of demonstration program.--The demonstration
            program shall commence not later than October 1, 1997.
                (4) Reports.--
                        (A) Interim reports.--Not later than 120 days before
                    the expiration of the initial 4-year contract
                    performance period, the Administrator shall submit to
                    the Committees on Small Business of the House of
                    Representatives and the Senate an interim report on the
                    conduct of the demonstration program. The contractor
                    shall be afforded a reasonable opportunity to attach
                    comments to each such report.
                        (B) Final report.--Not later than 120 days after the
                    termination of the demonstration program, the
                    Administrator shall submit to the Committees on Small
                    Business of the House of Representatives and the Senate
                    a final report on the performance of the demonstration
                    program, together with the recommendations of the
                    Administrator for continuation, termination, or
                    modification of the demonstration program.
          (b) Definition of Disaster.--
                (1) In general.--Section 3(k) (15 U.S.C. 632(k)) is amended
            by inserting ``commercial fishery failures or fishery resource
            disasters (as determined by the Secretary of Commerce under
            section 308(b) of the Interjurisdictional Fisheries Act of
            1986),'' after ``tidal waves,''.

    [[Page 110 STAT. 3009-731]]

                (2) <<NOTE: 15 USC 632 note.>>  Effective date.--The
            amendment made by paragraph (1) shall be effective with respect
            to any disaster occurring on or after March 1, 1994.

    SEC. 105. MICROLOAN DEMONSTRATION PROGRAM.

          Section 7(m)(7)(B) (15 U.S.C. 636(m)(4)) is amended by adding at
    the end the following: ``If, however, at the beginning of the fourth
    quarter of a fiscal year the Administration determines that a portion of
    appropriated microloan funds are unlikely to be awarded during that
    year, the Administration may make additional funds available to a State
    in excess of 125 percent of the pro rata share of that State.''.

    SEC. 106. SMALL BUSINESS DEVELOPMENT CENTER PROGRAM.

          (a) Associate Administrator for Small Business Development
    Centers.--
                (1) Duties.--Section 21(h) (15 U.S.C. 648(h)) is amended to
            read as follows:
          ``(h) Associate Administrator for Small Business Development
    Centers.--
                ``(1) Appointment and compensation.--The Administrator shall
            appoint an Associate Administrator for Small Business
            Development Centers who shall report to an official who is not
            more than one level below the Office of the Administrator and
            who shall serve without regard to the provisions of title 5
            governing appointments in the competitive service, and without
            regard to chapter 51, and subchapter III of chapter 53 of such
            title relating to classification and General Schedule pay rates,
            but at a rate not less than the rate of GS-17 of the General
            Schedule.
                ``(2) Duties.--
                        ``(A) In general.--The sole responsibility of the
                    Associate Administrator for Small Business Development
                    Centers shall be to administer the small business
                    development center program. Duties of the position shall
                    include recommending the annual program budget,
                    reviewing the annual budgets submitted by each
                    applicant, establishing appropriate funding levels
                    therefore, selecting applicants to participate in this
                    program, implementing the provisions of this section,
                    maintaining a clearinghouse to provide for the
                    dissemination and exchange of information between small
                    business development centers and conducting audits of
                    recipients of grants under this section.
                        ``(B) Consultation requirements.--In carrying out
                    the duties described in this subsection, the Associate
                    Administrator shall confer with and seek the advice of
                    the Board established by subsection (i) and
                    Administration officials in areas served by the small
                    business development centers; however, the Associate
                    Administrator shall be responsible for the management
                    and administration of the program and shall not be
                    subject to the approval or concurrence of such
                    Administration officials.''.
                (2) References to associate administrator.--Section 21 (15
            U.S.C. 648) is amended--
                        (A) in subsection (c)(7), by striking ``Deputy
                    Associate Administrator of the Small Business
                    Development Center program'' and inserting ``Associate
                    Administrator for Small Business Development Centers'';
                    and

    [[Page 110 STAT. 3009-732]]

                        (B) in subsection (i)(2), by striking ``Deputy
                    Associate Administrator for Management Assistance'' and
                    inserting ``Associate Administrator for Small Business
                    Development Centers''.
          (b) Extension or Renewal of Cooperative Agreements.--Section
    21(k)(3) (15 U.S.C. 648(k)(3)) is amended to read as follows:
                ``(3) Extension or renewal of cooperative agreements.--
                        ``(A) In general.--In extending or renewing a
                    cooperative agreement of a small business development
                    center, the Administration shall consider the results of
                    the examination and certification program conducted
                    pursuant to paragraphs (1) and (2).
                        ``(B) Certification requirement.--After September
                    30, 2000, the Administration may not renew or extend any
                    cooperative agreement with a small business development
                    center unless the center has been approved under the
                    certification program conducted pursuant to this
                    subsection, except that the Associate Administrator for
                    Small Business Development Centers may waive such
                    certification requirement, in the discretion of the
                    Associate Administrator, upon a showing that the center
                    is making a good faith effort to obtain
                    certification.''.
          (c) Technical Correction.--Section 21(l) (15 U.S.C. 648(l)) is
    amended to read as follows:
          ``(l) Contract Authority.--The authority to enter into contracts
    shall be in effect for each fiscal year only to the extent and in the
    amounts as are provided in advance in appropriations Acts. After the
    administration has entered a contract, either as a grant or a
    cooperative agreement, with any applicant under this section, it shall
    not suspend, terminate, or fail to renew or extend any such contract
    unless the Administration provides the applicant with written
    notification setting forth the reasons therefore and affording the
    applicant an opportunity for a hearing, appeal, or other administrative
    proceeding under the provisions of chapter 5 of title 5, United States
    Code.''.

    SEC. 107. MISCELLANEOUS AUTHORITIES TO PROVIDE LOANS AND OTHER FINANCIAL
                ASSISTANCE.

          (a) Funding Limitation; Seminars.--Section 7(d) (15 U.S.C. 636(d))
    is amended--
                (1) by striking ``(d)(1)'' and inserting ``(d)''; and
                (2) by striking paragraph (2).
          (b) Trade Adjustment Loans.--Section 7(e) (15 U.S.C. 636(e)) is
    amended to read as follows:
          ``(e) [RESERVED].''.
          (c) Waiver of Credit Elsewhere Test for Colleges and
    Universities.--Section 7(f) (15 U.S.C. 636(f)) is amended to read as
    follows:
          ``(f) [RESERVED].''.
          (d) Loans to Small Business Concerns for Solar Energy and Energy
    Conservation Measures.--Section 7(l) (15 U.S.C. 636(l)) is amended to
    read as follows:
          ``(l) [RESERVED].''.

    SEC. 108. SMALL BUSINESS COMPETITIVENESS DEMONSTRATION PROGRAM.

          (a) Extension of Demonstration Program.--

    [[Page 110 STAT. 3009-733]]

                (1) In general.--Section 711(c) of the Small Business
            Competitiveness Demonstration Program Act of 1988 (15 U.S.C. 644
            note; 102 Stat. 3890) is amended by striking ``September 30,
            1996'' and inserting ``September 30, 1997''.
                (2) Repeal.--Section 717(f) of the Small Business
            Competitiveness Demonstration Program Act of 1988 (15 U.S.C. 644
            note) is repealed.
          (b) Reporting of Subcontract Participation in Contracts for
    Architectural and Engineering Services.--Section 714(b)(5) of the Small
    Business Competitiveness Demonstration Program Act of 1988 (15 U.S.C.
    644 note; 102 Stat. 3892) is amended to read as follows:
                ``(5) Duration.--The system described in subsection (a)
            shall be established not later than October 1, 1996 (or as soon
            as practicable thereafter on the first day of a subsequent
            quarter of fiscal year 1997), and shall terminate on September
            30, 1997.''.
          (c) Reports to the Congress.--
                (1) In general.--Section 716 of the Small Business
            Competitiveness Demonstration Program Act of 1988 (15 U.S.C. 644
            note; 102 Stat. 3893) is amended--
                        (A) in subsection (a), by striking ``fiscal year
                    1991 and 1995'' and inserting ``each of fiscal years
                    1991 through 1996'';
                        (B) in subsection (b), by striking ``results'' and
                    inserting ``cumulative results''; and
                        (C) in subsection (c), by striking ``1996'' and
                    inserting ``1997''.
                (2) Cumulative report through fiscal year 1995.--A
            cumulative report of the results of the Small Business
            Competitiveness Demonstration Program for fiscal years 1991
            through 1995 shall be submitted not later than February 28, 1997
            pursuant to section 716(a) of the Small Business Competitiveness
            Demonstration Program Act of 1988 (15 U.S.C. 644 note; 102 Stat.
            3893), as amended by paragraph (1) of this subsection.

    SEC. 109. AMENDMENT TO SMALL BUSINESS GUARANTEED CREDIT ENHANCEMENT ACT
                OF 1993.

          (a) In general.--Section 7 of the Small Business Guaranteed Credit
    Enhancement Act of 1993 (Public Law 103-81; 15 U.S.C. 634 note) is
    repealed effective September 29, 1996.
          (b) Clerical Amendment.--The table of contents for the Small
    Business Guaranteed Credit Enhancement Act of 1993 (Public Law 103-81;
    15 U.S.C. 631 note) is amended by striking the item relating to section
    7.

    SEC. 110. STTR PROGRAM EXTENSION.

          Section 9(n)(1)(C) (15 U.S.C. 638(n)(1)(C)) is amended by striking
    ``fiscal year 1996'' and inserting ``fiscal years 1996 and 1997''.

    SEC. 111. LEVEL OF PARTICIPATION FOR EXPORT WORKING CAPITAL LOANS.

          Section 7(A)(2) (15 U.S.C. 636(A)(2)) is amended by adding at the
    end the following:
                        ``(D) Participation under export working capital
                    program.--Notwithstanding subparagraph (A), in an
                    agreement to participate in a loan on a deferred basis
                    under the Export Working Capital Program established

    [[Page 110 STAT. 3009-734]]

                    pursuant to paragraph (14)(A), such participation by the
                    Administration shall not exceed 90 percent.''.

              TITLE II--AMENDMENTS TO SMALL BUSINESS INVESTMENT ACT

    SEC. 201. REFERENCES.

          Except as otherwise expressly provided, whenever in this title an
    amendment or repeal is expressed in terms of an amendment to, or repeal
    of, a section or other provision, the reference shall be considered to
    be made to a section or other provision of the Small Business Investment
    Act of 1958 (15 U.S.C. 661 et seq.).

    SEC. 202. MODIFICATIONS TO DEVELOPMENT COMPANY DEBENTURE PROGRAM.

          (a) Decreased Loan to Value Ratios.--Section 502(3) (15 U.S.C.
    696(3)) is amended to read as follows:
                ``(3) Criteria for assistance.--
                        ``(A) In general.--Any development company assisted
                    under this section or section 503 of this title must
                    meet the criteria established by the Administration,
                    including the extent of participation to be required or
                    amount of paid-in capital to be used in each instance as
                    is determined to be reasonable by the Administration.
                        ``(B) Community injection funds.--
                              ``(i) Sources of funds.--Community injection
                          funds may be derived, in whole or in part, from--
                                        ``(I) State or local governments;
                                        ``(II) banks or other financial
                                    institutions;
                                        ``(III) foundations or other not-
                                    for-profit institutions; or
                                        ``(IV) the small business concern
                                    (or its owners, stockholders, or
                                    affiliates) receiving assistance through
                                    a body authorized by this title.
                              ``(ii) Funding from institutions.--Not less
                          than 50 percent of the total cost of any project
                          financed pursuant to clauses (i), (ii), or (iii)
                          of subparagraph (C) shall come from the
                          institutions described in subclauses (I), (II),
                          and (III) of clause (i).
                        ``(C) Funding from a small business concern.--The
                    small business concern (or its owners, stockholders, or
                    affiliates) receiving assistance through a body
                    authorized by this title shall provide--
                              ``(i) at least 15 percent of the total cost of
                          the project financed, if the small business
                          concern has been in operation for a period of 2
                          years or less;
                              ``(ii) at least 15 percent of the total cost
                          of the project financed if the project involves
                          the construction of a limited or single purpose
                          building or structure;
                              ``(iii) at least 20 percent of the total cost
                          of the project financed if the project involves
                          both of the conditions set forth in clauses (i)
                          and (ii); or
                              ``(iv) at least 10 percent of the total cost
                          of the project financed, in all other
                          circumstances, at the discretion of the
                          development company.''.

    [[Page 110 STAT. 3009-735]]

          (b) Guarantee Fee for Development Company Debentures.--Section
    503(b)(7)(A) (15 U.S.C. 697(b)(7)(A)) is amended by striking ``equal to
    0.125 percent'' and all that follows before the semicolon and inserting
    the following: ``equal to the lesser of--
                              ``(i) 0.9375 percent per year of the
                          outstanding balance of the loan; or
                              ``(ii) such percentage per year of the
                          outstanding balance of the loan as the
                          Administrator may determine to be necessary to
                          reduce the cost (as that term is defined in
                          section 502 of the Federal Credit Reform Act of
                          1990) to the Administration of purchasing and
                          guaranteeing debentures under this Act to an
                          amount that, taking into consideration any
                          available appropriated funds, would permit the
                          Administration to purchase or guarantee
                          $2,000,000,000 of debentures in fiscal year
                          1997''.
          (c) Fees To Offset Subsidy Cost.--Section 503(d) (15 U.S.C.
    697(d)) is amended to read as follows:
          ``(d) Charges for Administration Expenses.--
                ``(1) Level of charges.--The Administration may impose an
            additional charge for administrative expenses with respect to
            each debenture for which
    payment of principal and interest is guaranteed under subsection (a).
                ``(2) Participation fee.--The Administration shall collect a
            one-time fee in an amount equal to 50 basis points on the total
            participation in any project of any institution described in
            subclause (I), (II), or (III) of section 502(3)(B)(i). Such fee
            shall be imposed only when the participation of the institution
            will occupy a senior credit position to that of the development
            company. All proceeds of the fee shall be used to offset the
            cost (as that term is defined in section 502 of the Credit
            Reform Act of 1990) to the Administration of making guarantees
            under subsection (a).
                ``(3) Development company fee.--The Administration shall
            collect annually from each development company a fee of 0.125
            percent of the outstanding principal balance of any guaranteed
            debenture authorized by the Administration after September 30,
            1996. Such fee shall be derived from the servicing fees
            collected by the development company pursuant to regulation, and
            shall not be derived from any additional fees imposed on small
            business concerns. All proceeds of the fee shall be used to
            offset the cost (as that term is defined in section 502 of the
            Credit Reform Act of 1990) to the Administration of making
            guarantees under subsection (a).''.
          (d) Effective Date.--Section 503 (15 U.S.C. 697) is amended by
    adding at the end the following new subsection:
          ``(f) Effective Date.--The fees authorized by subsections (b) and
    (c) shall apply to financings approved by the Administration on or after
    October 1, 1996, but shall not apply to financings approved by the
    Administration on or after October 1, 1997.''.
          (e) Calculation of Subsidy Rate.--Section 503 (15 U.S.C.
    697a) <<NOTE: 15 USC 697.>>  is amended by adding at the end the
    following new subsection:
          ``(g) Calculation of Subsidy Rate.--All fees, interest, and
    profits received and retained by the Administration under this section
    shall be included in the calculations made by the Director of the Office
    of Management and Budget to offset the cost (as

    [[Page 110 STAT. 3009-736]]

    that term is defined in section 502 of the Federal Credit Reform Act of
    1990) to the Administration of purchasing and guaranteeing debentures
    under this Act.''.

    SEC. 203. REQUIRED ACTIONS UPON DEFAULT.

          Section 503 (15 U.S.C. 697) is amended by adding at the end the
    following new subsection:
          ``(h) Required Actions Upon Default.--
                ``(1) Initial actions.--Not later than the 45th day after
            the date on which a payment on a loan funded through a debenture
            guaranteed under this section is due and not received, the
            Administration shall--
                        ``(A) take all necessary steps to bring such a loan
                    current; or
                        ``(B) implement a formal written deferral agreement.
                ``(2) Purchase or acceleration of debenture.--Not later than
            the 65th day after the date on which a payment on a loan
            described in paragraph (1) is due and not received, and absent a
            formal written deferral agreement, the administration shall take
            all necessary steps to purchase or accelerate the debenture.
                ``(3) Prepayment penalties.--With respect to the portion of
            any project derived from funds set forth in section 502(3), the
            Administration--
                        ``(A) shall negotiate the elimination of any
                    prepayment penalties or late fees on defaulted loans
                    made prior to September 30, 1996;
                        ``(B) shall not pay any prepayment penalty or late
                    fee on the default based purchase of loans issued after
                    September 30, 1996; and
                        ``(C) for any project financed after September 30,
                    1996, shall not pay any default interest rate higher
                    than the interest rate on the note prior to the date of
                    default.''.

    SEC. 204. <<NOTE: 15 USC 695 note.>>  LOAN LIQUIDATION PILOT PROGRAM.
          (a) In General.--The Administrator shall carry out a loan
    liquidation pilot program (in this section referred to as the ``pilot
    program'') in accordance with the requirements of this section.
          (b) Selection of Development Companies.--
                (1) In general.--Not later than 90 days after the date of
            the enactment of this Act, the Administrator shall establish a
            pilot program under which certain development companies
            authorized to make loans and issue debentures under title V of
            the Small Business Investment Act of 1958 are selected by the
            Administrator in accordance with this subsection to carry out
            loan liquidations.
                (2) Conflicts of interest.--The development companies
            selected under paragraph (1) shall agree not to take any action
            that would create a potential conflict of interest involving the
            development company, the third party lender, or an associate of
            the third party lender.
                (3) Qualifications.--In order to qualify to participate in
            the pilot program under this section, each development company
            shall--
                        (A) have not less than 6 years of experience in the
                    program established by title V of the Small Business
                    Investment Act of 1958;

    [[Page 110 STAT. 3009-737]]

                        (B) have made, during the 6 most recent fiscal
                    years, an average of not less than 10 loans per year
                    through the program established by such title V of the
                    Small Business Investment Act of 1958;
                        (C) have not less than 2 years of experience in
                    liquidating loans under the authority of a Federal,
                    State, or other lending program; and
                        (D) meet such other requirements as the
                    Administration may establish.
          (c) Authority of Development Companies.--The development companies
    selected under subsection (b) shall, for loans in their portfolio of
    loans made through debentures guaranteed under title V of the Small
    Business Investment Act of 1958 that are in default after the date of
    enactment of this Act, be authorized to--
                (1) perform all liquidation and foreclosure functions,
            including the acceleration or purchase of community injection
            funds, subject to such company obtaining prior written approval
            from the Administrator before committing the agency to purchase
            any other indebtedness secured by the property: Provided, That
            the Administrator shall approve or deny a request for such
            purchase within a period of 10 business days; and
                (2) liquidate such loans in a reasonable and sound manner
            and according to commercially accepted practices pursuant to a
            liquidation plan approved by the administrator in advance of its
            implementation. If the administrator does not approve or deny a
            request for approval of a liquidation plan within 10 business
            days of the date on which the request is made (or with respect
            to any routine liquidation activity under such a plan, within 5
            business days) such request shall be deemed to be approved.
          (d) Authority of the Administrator.--In carrying out the pilot
    program, the Administrator shall--
                (1) have full authority to rescind the authority granted any
            development company under this section upon a 10-day written
            notice stating the reasons for the rescission; and
                (2) not later than 90 days after the admission of the
            development companies specified in subsection (b), implement the
            pilot program.
          (e) Report.--
                (1) In general.--The Administrator shall issue a report on
            the results of the pilot program to the Committees on Small
            Business of the House of Representatives and the Senate. The
            report shall include information relating to--
                        (A) the total dollar amount of each loan and project
                    liquidated;
                        (B) the total dollar amount guaranteed by the
                    Administration;
                        (C) total dollar losses;
                        (D) total recoveries both as percentage of the
                    amount guaranteed and the total cost of the project; and
                        (E) a comparison of the pilot program information
                    with the same information for liquidation conducted
                    outside the pilot program over the period of time.
                (2) Reporting period.--The report shall be based on data
            from, and issued not later than 90 days after the close of, the
            first eight 8 fiscal quarters of the pilot program's operation
            after the date of implementation.

    [[Page 110 STAT. 3009-738]]

    SEC. 205. REGISTRATION OF CERTIFICATES.

          (a) Certificates Sold Pursuant to Small Business Act.--Section
    5(h) of the Small Business Act (15 U.S.C. 634(h)) is amended--
                (1) by redesignating paragraphs (1) through (4) as
            subparagraphs (A) through (D);
                (2) by striking ``(h)'' and inserting ``(h)(1)'';
                (3) by striking subparagraph (A), as redesignated by
            paragraph (1) of this subsection, and inserting the following:
                        ``(A) provide for a central registration of all
                    loans and trust certificates sold pursuant to
                    subsections (f) and (g) of this section;''; and
                (4) by adding at the end the following:
                ``(2) Nothing in this subsection shall prohibit the
            utilization of a book-entry or other electronic form of
            registration for trust certificates. The Administration may,
            with the consent of the Secretary of the Treasury, use the book-
            entry system of the Federal Reserve System.''.
          (b) Certificates Sold Pursuant to Small Business Investment
    Company Program.--Section 321(f) (15 U.S.C. 687l(f)) is amended--
                (1) in paragraph (1), by striking ``Such central
            registration shall include'' and all that follows through the
            period at the end of the paragraph; and
                (2) by adding at the end the following:
                ``(5) Nothing in this subsection shall prohibit the use of a
            book-entry or other electronic form of registration for trust
            certificates.''.
          (c) Certificates Sold Pursuant to Development Company Program.--
    Section 505(f) (15 U.S.C. 697b(f)) is amended--
                (1) by redesignating paragraphs (1) through (4) as
            subparagraphs (A) through (D);
                (2) by striking ``(f)'' and inserting ``(f)(1)'';
                (3) by striking subparagraph (A), as redesignated by
            paragraph (1) of this subsection, and inserting the following:
                        ``(A) provide for a central registration of all
                    trust certificates sold pursuant to this section;'' and
                (4) by adding at the end the following:
                ``(2) Nothing in this subsection shall prohibit the
            utilization of a book-entry or other electronic form of
            registration for trust certificates.''.

    SEC. 206. PREFERRED SURETY BOND GUARANTEE PROGRAM.

          (a) Admissions of Additional Program Participants.--Section
    411(a) <<NOTE: 15 USC 694b.>>  (15 U.S.C. 694(a)) is amended by adding a
    new paragraph (5), as follows:
                ``(5)(A) The Administration shall promptly act upon an
            application from a surety to participate in the Preferred Surety
            Bond Guarantee Program, authorized by paragraph (3), in
            accordance with criteria and procedures established in
            regulations pursuant to subsection (d).
                ``(B) The Administration is authorized to reduce the
            allotment of bond guarantee authority or terminate the
            participation of a surety in the Preferred Surety Bond Guarantee
            Program based on the rate of participation of such surety during
            the 4 most recent fiscal year quarters compared to the median
            rate of participation by the other sureties in the program.''.

    [[Page 110 STAT. 3009-739]]

          (b) <<NOTE: 15 USC 694b note.>>  Effective Date.--The amendments
    made by subsection (a) shall apply with respect to applications received
    (or pending substantive evaluation) on or after October 1, 1995.

    SEC. 207. SENSE OF THE CONGRESS.

          (a) In General.--It is the sense of the Congress that the subsidy
    models prepared by the Office of Management and Budget relative to loan
    programs sponsored by the United States Small Business Administration
    have a tendency to--
                (1) overestimate potential risks of loss; and
                (2) overemphasize historical losses that may be anomalous
            and do not truly reflect the success of the programs as a whole.
          (b) Independent Study.--Consequently, the Congress mandates the
    independent study in section 103(h) in an attempt to improve the ability
    of the Office of Management and Budget to reflect more accurately the
    budgetary implications of such programs.

    SEC. 208. SMALL BUSINESS INVESTMENT COMPANY IMPROVEMENTS.

          (a) Definitions.--
                (1) Small Business Concern.--Section 103(5) (15 U.S.C.
            662(5)) is amended by inserting before the semicolon the
            following: ``, except that, for purposes of this Act, an
            investment by a venture capital firm, investment company
            (including a small business investment company) employee welfare
            benefit plan or pension plan, or trust, foundation, or endowment
            that is exempt from Federal income taxation--
                        ``(A) shall not cause a business concern to be
                    deemed not independently owned and operated;
                        ``(B) shall be disregarded in determining whether a
                    business concern satisfies size standards established
                    pursuant to section 3(a)(2) of the Small Business Act;
                    and
                        ``(C) shall be disregarded in determining whether a
                    small business concern is a smaller enterprise''.
                (2) Private capital.--Section 103(9) (15 U.S.C. 662(9)) is
            amended to read as follows:
                ``(9) the term `private capital'--
                        ``(A) means the sum of--
                              ``(i) the paid-in capital and paid-in surplus
                          of a corporate licensee, the contributed capital
                          of the partners of a partnership licensee, or the
                          equity investment of the members of a limited
                          liability company licensee; and
                              ``(ii) unfunded binding commitments, from
                          investors that meet criteria established by the
                          Administrator, to contribute capital to the
                          licensee: Provided, That such unfunded commitments
                          may be counted as private capital for purposes of
                          approval by the Administrator of any request for
                          leverage, but leverage shall not be funded based
                          on such commitments; and
                        ``(B) does not include any--
                              ``(i) funds borrowed by a licensee from any
                          source;
                              ``(ii) funds obtained through the issuance of
                          leverage; or
                              ``(iii) funds obtained directly or indirectly
                          from any Federal, State, or local government, or
                          any government agency or instrumentality, except
                          for--

    [[Page 110 STAT. 3009-740]]

                                        ``(I) funds invested by an employee
                                    welfare benefit plan or pension plan;
                                    and
                                        ``(II) any qualified nonprivate
                                    funds (if the investors of the qualified
                                    nonprivate funds do not control,
                                    directly or indirectly, the management,
                                    board of directors, general partners, or
                                    members of the licensee);''.
                (3) New definitions.--Section 103 (15 U.S.C. 662) is amended
            by striking paragraph (10) and inserting the following:

                ``(10) the term `leverage' includes--

                        ``(A) debentures purchased or guaranteed by the
                    Administration;

                        ``(B) participating securities purchased or
                    guaranteed by the Administration; and

                        ``(C) preferred securities outstanding as of October
                    1, 1995;

                ``(11) the term `third party debt' means any indebtedness
            for borrowed money, other than indebtedness owed to the
            Administration;

                ``(12) the term `smaller enterprise' means any small
            business concern that, together with its affiliates--

                        ``(A) has--

                              ``(i) a net financial worth of not more than
                          $6,000,000, as of the date on which assistance is
                          provided under this Act to that business concern;
                          and

                              ``(ii) an average net income for the 2-year
                          period preceding the date on which assistance is
                          provided under this Act to that business concern,
                          of not more than $2,000,000, after Federal income
                          taxes (excluding any carryover losses); or

                        ``(B) satisfies the standard industrial
                    classification size standards established by the
                    Administration for the industry in which the small
                    business concern is primarily engaged;
                ``(13) the term `qualified nonprivate funds' means any--
                        ``(A) funds directly or indirectly invested in any
                    applicant or licensee on or before August 16, 1982, by
                    any Federal agency, other than the Administration, under
                    a provision of law explicitly mandating the inclusion of
                    those funds in the definition of the term `private
                    capital';
                        ``(B) funds directly or indirectly invested in any
                    applicant or licensee by any Federal agency under a
                    provision of law enacted after September 4, 1992,
                    explicitly mandating the inclusion of those funds in the
                    definition of the term `private capital'; and
                        ``(C) funds invested in any applicant or licensee by
                    one or more State or local government entities
                    (including any guarantee extended by those entities) in
                    an aggregate amount that does not exceed 33 percent of
                    the private capital of the applicant or licensee;
                ``(14) the terms `employee welfare benefit plan' and
            `pension plan' have the same meanings as in section 3 of the
            Employee Retirement Income Security Act of 1974, and are
            intended to include--
                        ``(A) public and private pension or retirement plans
                    subject to such Act; and

    [[Page 110 STAT. 3009-741]]

                        ``(B) similar plans not covered by such Act that
                    have been established and that are maintained by the
                    Federal Government or any State or political
                    subdivision, or any agency or instrumentality thereof,
                    for the benefit of employees;
                ``(15) the term `member' means, with respect to a licensee
            that is a limited liability company, a holder of an ownership
            interest or a person otherwise admitted to membership in the
            limited liability company; and
                ``(16) the term `limited liability company' means a business
            entity that is organized and operating in accordance with a
            State limited liability company statute approved by the
            Administration.''.
          (b) Organization of Small Business Investment Companies.--
                (1) Limited liability companies.--Section 301(a) (15 U.S.C.
            681(a)) is amended in the first sentence, by striking ``body
            or'' and inserting ``body, a limited liability company, or''.
                (2) Issuance of license.--Section 301(c) (15 U.S.C. 681(c))
            is amended to read as follows:
          ``(c) Issuance of License.--
                ``(1) Submission of application.--Each applicant for a
            license to operate as a small business investment company under
            this Act shall submit to the Administrator an application, in a
            form and including such documentation as may be prescribed by
            the Administrator.
                ``(2) Procedures.--
                        ``(A) Status.--Not later than 90 days after the
                    initial receipt by the Administrator of an application
                    under this subsection, the Administrator shall provide
                    the applicant with a written report detailing the status
                    of the application and any requirements remaining for
                    completion of the application.
                        ``(B) Approval or disapproval.--Within a reasonable
                    time after receiving a completed application submitted
                    in accordance with this subsection and in accordance
                    with such requirements as the Administrator may
                    prescribe by regulation, the Administrator shall--
                              ``(i) approve the application and issue a
                          license for such operation to the applicant if the
                          requirements of this section are satisfied; or
                              ``(ii) disapprove the application and notify
                          the applicant in writing of the disapproval.
                ``(3) Matters considered.--In reviewing and processing any
            application under this subsection, the Administrator--
                        ``(A) shall determine whether--
                              ``(i) the applicant meets the requirements of
                          subsections (a) and (c) of section 302; and
                              ``(ii) the management of the applicant is
                          qualified and has the knowledge, experience, and
                          capability necessary to comply with this Act;
                        ``(B) shall take into consideration--
                              ``(i) the need for and availability of
                          financing for small business concerns in the
                          geographic area in which the applicant is to
                          commence business;

    [[Page 110 STAT. 3009-742]]

                              ``(ii) the general business reputation of the
                          owners and management of the applicant; and
                              ``(iii) the probability of successful
                          operations of the applicant, including adequate
                          profitability and financial soundness; and
                        ``(C) shall not take into consideration any
                    projected shortage or unavailability of leverage.
                ``(4) Exception.--
                        ``(A) In general.--Notwithstanding any other
                    provision of this Act, the Administrator may, in the
                    discretion of the Administrator and based on a showing
                    of special circumstances and good cause, approve an
                    application and issue a license under this subsection
                    with respect to any applicant that--
                              ``(i) has private capital of not less than
                          $3,000,000;
                              ``(ii) would otherwise be issued a license
                          under this subsection, except that the applicant
                          does not satisfy the requirements of section
                          302(a); and
                              ``(iii) has a viable business plan reasonably
                          projecting profitable operations and a reasonable
                          timetable for achieving a level of private capital
                          that satisfies the requirements of section 302(a).
                        ``(B) Leverage.--An applicant licensed pursuant to
                    the exception provided in this paragraph shall not be
                    eligible to receive leverage as a licensee until the
                    applicant satisfies the requirements of section
                    302(a).''.
                (3) Specialized small business investment companies.--
                        (A) Repeal.--Section 301(d) (15 U.S.C. 681(d)) is
                    repealed.
                        (B) <<NOTE: 15 USC 681 note.>>  Effect on existing
                    licenses.--The repeal under subparagraph (A) shall not
                    be construed to require the Administrator to cancel,
                    revoke, withdraw, or modify any license issued under
                    section 301(d) of the Small Business Investment Act of
                    1958 before the date of enactment of this Act.
          (c) Capital Requirements.--
                (1) Increased minimum capital requirements.--Section 302(a)
            (15 U.S.C. 682(a)) is amended by striking ``(a)'' and all that
            follows through ``The Administration shall also determine the
            ability of the company,'' and inserting the following:
          ``(a) Amount.--
                ``(1) In general.--Except as provided in paragraph (2), the
            private capital of each licensee shall be not less than--
                        ``(A) $5,000,000; or
                        ``(B) $10,000,000, with respect to each licensee
                    authorized or seeking authority to issue participating
                    securities to be purchased or guaranteed by the
                    Administration under this Act.
                ``(2) Exception.--The Administrator may, in the discretion
            of the Administrator and based on a showing of special
            circumstances and good cause, permit the private capital of a
            licensee authorized or seeking authorization to issue
            participating securities to be purchased or guaranteed by the
            Administration to be less than $10,000,000, but not less than
            $5,000,000, if the Administrator determines that such action
            would not create or otherwise contribute to an unreasonable risk
            of default or loss to the Federal Government.

    [[Page 110 STAT. 3009-743]]

                ``(3) Adequacy.--In addition to the requirements of
            paragraph (1), the Administrator shall--
                        ``(A) determine whether the private capital of each
                    licensee is adequate to assure a reasonable prospect
                    that the licensee will be operated soundly and
                    profitably, and managed actively and prudently in
                    accordance with its articles; and
                        ``(B) determine that the licensee will be able''.
                (2) Exemption for certain licensees.--Section 302(a) (15
            U.S.C. 682(a)) is amended by adding at the end the following new
            paragraph:
                ``(4) Exemption from capital requirements.--The
            Administrator may, in the discretion of the Administrator,
            approve leverage for any licensee licensed under subsection (c)
            or (d) of section 301 before the date of enactment of the Small
            Business Program Improvement Act of 1996 that does not meet the
            capital requirements of paragraph (1), if--
                        ``(A) the licensee certifies in writing that not
                    less than 50 percent of the aggregate dollar amount of
                    its financings after the date of enactment of the Small
                    Business Program Improvement Act of 1996 will be
                    provided to smaller enterprises; and
                        ``(B) the Administrator determines that such action
                    would not create or otherwise contribute to an
                    unreasonable risk of default or loss to the United
                    States Government.''.
                (3) Diversification of ownership.--Section 302(c) (15 U.S.C.
            682(c)) is amended to read as follows:
          ``(c) Diversification of Ownership.--The Administrator shall
    ensure that the management of each licensee licensed after the date of
    enactment of the Small Business Program Improvement Act of 1996 is
    sufficiently diversified from and unaffiliated with the ownership of the
    licensee in a manner that ensures independence and objectivity in the
    financial management and oversight of the investments and operations of
    the licensee.''.
          (d) Borrowing.--
                (1) Debentures.--Section 303(b) (15 U.S.C. 683(b)) is
            amended in the first sentence, by striking ``(but only'' and all
            that follows through ``terms)''.
                (2) Third party debt.--Section 303(c) (15 U.S.C. 683(c)) is
            amended to read as follows:
          ``(c) Third Party Debt.--The Administrator--
                ``(1) shall not permit a licensee having outstanding
            leverage to incur third party debt that would create or
            contribute to an unreasonable risk of default or loss to the
            Federal Government; and
                ``(2) shall permit such licensees to incur third party debt
            only on such terms and subject to such conditions as may be
            established by the Administrator, by regulation or otherwise.''.
                (3) Requirement to finance smaller enterprises.--Section
            303(d) (15 U.S.C. 683(d)) is amended to read as follows:
          ``(d) Requirement to Finance Smaller Enterprises.--The
    Administrator shall require each licensee, as a condition of approval of
    an application for leverage, to certify in writing that not less than 20
    percent of the aggregate dollar amount of the financings of the licensee
    will be provided to smaller enterprises.''.
                (4) Capital impairment requirements.--

    [[Page 110 STAT. 3009-744]]

                        (A) In general.--Section 303(e) (15 U.S.C. 683(e))
                    is amended to read as follows:
          ``(e) Capital Impairment.--Before approving any application for
    leverage submitted by a licensee under this Act, the Administrator--
                ``(1) shall determine that the private capital of the
            licensee meets the requirements of section 302(a); and
                ``(2) shall determine, taking into account the nature of the
            assets of the licensee, the amount and terms of any third party
            debt owed by such licensee, and any other factors determined to
            be relevant by the Administrator, that the private capital of
            the licensee has not been impaired to such an extent that the
            issuance of additional leverage would create or otherwise
            contribute to an unreasonable risk of default or loss to the
            Federal Government.''.
                        (B) <<NOTE: 15 USC 683 note.>>  Regulations.--
                              (i) Uniform applicability.--Any regulation
                          issued by the Administration to implement section
                          303(e) of the Small Business Investment Act of
                          1958 that applies to any licensee with outstanding
                          leverage obtained before the effective date of
                          that regulation, shall apply uniformly to all
                          licensees with outstanding leverage obtained
                          before that effective date.
                              (ii) Definitions.--For purposes of this
                          subparagraph, the terms ``Administration'',
                          ``leverage'' and ``licensee'' have the same
                          meanings as in section 103 of the Small Business
                          Investment Act of 1958.
                (5) Equity investment requirement.--Section 303(g)(4) (15
            U.S.C. 683(g)(4)) is amended by striking ``and maintain''.
                (6) Fees.--Section 303 (15 U.S.C. 683) is amended--
                        (A) in subsection (b), in the fifth sentence, by
                    striking ``1 per centum'', and all that follows before
                    the period at the end of the sentence and inserting the
                    following: ``1 percent, plus an additional charge of 1
                    percent per annum which shall be paid to and retained by
                    the Administration'';
                        (B) in subsection (g)(2), by striking ``1 per
                    centum,'' and all that follows before the period at the
                    end of the paragraph and inserting the following: ``1
                    percent, plus an additional charge of 1 percent per
                    annum which shall be paid to and retained by the
                    Administration''; and
                        (C) by adding at the end the following new
                    subsections:
          ``(i) Leverage Fee.--With respect to leverage granted by the
    Administration to a licensee, the Administration shall collect from the
    licensee a nonrefundable fee in an amount equal to 3 percent of the face
    amount of leverage granted to the licensee, payable upon the earlier of
    the date of entry into any commitment for such leverage or the date on
    which the leverage is drawn by the licensee.
          ``(j) Calculation of Subsidy Rate.--All fees, interest, and
    profits received and retained by the Administration under this section
    shall be included in the calculations made by the Director of the Office
    of Management and Budget to offset the cost (as that term is defined in
    section 502 of the Federal Credit Reform Act of 1990)
    to the Administration of purchasing and guaranteeing debentures and
    participating securities under this Act.''.

    [[Page 110 STAT. 3009-745]]

          (e) Liability of the United States.--Section 308(e) (15 U.S.C.
    687(e)) is amended by striking ``Nothing'' and inserting ``Except as
    expressly provided otherwise in this Act, nothing''.
          (f) Examinations; Valuations.--
                (1) Examinations.--Section 310(b) (15 U.S.C. 687b(b)) is
            amended in the first sentence by inserting ``which may be
            conducted with the assistance of a private sector entity that
            has both the qualifications to conduct and expertise in
            conducting such examinations,'' after ``Investment Division of
            the Administration,''.
                (2) Valuations.--Section 310(d) (15 U.S.C. 687b(d)) is
            amended to read as follows:
          ``(d) Valuations.--
                ``(1) Frequency of valuations.--
                        ``(A) In general.--Each licensee shall submit to the
                    Administrator a written valuation of the loans and
                    investments of the licensee not less often than
                    semiannually or otherwise upon the request of the
                    Administrator, except that any licensee with no leverage
                    outstanding shall submit such valuations annually,
                    unless the Administrator determines otherwise.
                        ``(B) Material adverse changes.--Not later than 30
                    days after the end of a fiscal quarter of a licensee
                    during which a material adverse change in the aggregate
                    valuation of the loans and investments or operations of
                    the licensee occurs, the licensee shall notify the
                    Administrator in writing of the nature and extent of
                    that change.
                        ``(C) Independent certification.--
                              ``(i) In General.--Not less than once during
                          each fiscal year, each licensee shall submit to
                          the Administrator the financial statements of the
                          licensee, audited by an independent certified
                          public accountant approved by the Administrator.
                              ``(ii) Audit requirements.--Each audit
                          conducted under clause (i) shall include--
                                        ``(I) a review of the procedures and
                                    documentation used by the licensee in
                                    preparing the valuations required by
                                    this section; and
                                        ``(II) a statement by the
                                    independent certified public accountant
                                    that such valuations were prepared in
                                    conformity with the valuation criteria
                                    applicable to the licensee established
                                    in accordance with paragraph (2).
                ``(2) Valuation criteria.--Each valuation submitted under
            this subsection shall be prepared by the licensee in accordance
            with valuation criteria, which shall--
                        ``(A) be established or approved by the
                    Administrator; and
                        ``(B) include appropriate safeguards to ensure that
                    the noncash assets of a licensee are not overvalued.''.
          (g) Trustee or Receivership Over Licensees.--
                (1) Finding.--It is the finding of the Congress that
            increased recoveries on assets in liquidation under the Small
            Business Investment Act of 1958 are in the best interests of the
            Federal Government.
                (2) Definitions.--For purposes of this subsection--

    [[Page 110 STAT. 3009-746]]

                        (A) the term ``Administrator'' means the
                    Administrator of the Small Business Adminstration;
                        (B) the term ``Administration'' means the Small
                    Business Administration; and
                        (C) the term ``licensee'' has the same meaning as in
                    section 103.
                        (3) Liquidation plan.--
                        (A) In general.--Not later than October 15, 1996,
                    the Administrator shall submit to the Committees on
                    Small Business of the Senate and the House of
                    Representatives a detailed plan to expedite the orderly
                    liquidation of all licensee assets in liquidation,
                    including assets of licensees in receivership or in
                    trust held by or under the control of the Administration
                    or its agents.
                        (B) Contents.--The plan submitted under paragraph
                    (1) shall include a timetable for liquidating the
                    liquidation portfolio of small business investment
                    company assets owned by the Administration, and shall
                    contain the findings and recommendations of the
                    Administrator on various options providing for the fair
                    and expeditious liquidation of such assets within a
                    reasonable period of time, giving due consideration to
                    the option of entering into one or more contracts with
                    private sector entities having the capability to carry
                    out the orderly liquidation of similar assets.
          (h) Technical and Conforming Amendments.--
                (1) Small business investment act of 1958.--The Small
            Business Investment Act of 1958 (15 U.S.C. 661 et seq.) is
            amended--
                        (A) in section 303 <<NOTE: 15 USC 683.>> --
                              (i) in subsection (a), by striking ``debenture
                          bonds,'' and inserting ``securities,'';
                              (ii) by striking subsection (f) and inserting
                          the following:
            ``(f) Redemption or Repurchase of Preferred Stock.--
    Notwithstanding any other provision of law--
                ``(1) the Administrator may allow the issuer of any
            preferred stock sold to the Administration before November 1,
            1989 to redeem or repurchase such stock, upon the payment to the
            Administration of an amount less than the par value of such
            stock, for a repurchase price determined by the Administrator
            after consideration of all relevant factors, including--
                        ``(A) the market value of the stock;
                        ``(B) the value of benefits provided and anticipated
                    to accrue to the issuer;
                        ``(C) the amount of dividends paid, accrued, and
                    anticipated; and
                        ``(D) the estimate of the Administrator of any
                    anticipated redemption; and
                ``(2) any moneys received by the Administration from the
            repurchase of preferred stock shall be available solely to
            provide debenture leverage to licensees having 50 percent or
            more in aggregate dollar amount of their financings invested in
            smaller enterprises.''; and
                              (iii) in subsection (g)(8)--
                                        (I) by striking ``partners or
                                    shareholders'' and inserting ``partners,
                                    shareholders, or members'';

    [[Page 110 STAT. 3009-747]]

                                        (II) by striking ``partner's or
                                    shareholder's'' and inserting
                                    ``partner's, shareholder's, or
                                    member's''; and
                                        (III) by striking ``partner or
                                    shareholder'' and inserting ``partner,
                                    shareholder, or member'';
                        (B) in section 308(h) <<NOTE: 15 USC 687.>> , by
                    striking ``subsection (c) or (d) of section 301'' each
                    place that term appears and inserting ``section 301'';
                        (C) in section 310(c)(4) <<NOTE: 15 USC 687b.>> , by
                    striking ``not less than four years in the case of
                    section 301(d) licensees and in all other cases,'';
                        (D) in section 312 <<NOTE: 15 USC 687d.>> --
                              (i) by striking ``shareholders or partners''
                          and inserting ``shareholders, partners, or
                          members''; and
                              (ii) by striking ``shareholder, or partner''
                          each place that term appears and inserting
                          ``shareholder, partner, or member'';
                        (E) by striking sections 317 and 318 <<NOTE: 15 USC
                    80a-18, 687i-687m.>> , and redesignating sections 319
                    through 322 as sections 317 through 320, respectively;
                        (F) in section 319 <<NOTE: 15 USC 687l.>> , as
                    redesignated--
                              (i) in subsection (a), by striking ``,
                          including companies operating under the authority
                          of section 301(d),''; and
                              (ii) in subsection (f)(2), by inserting ``or
                          investments in obligations of the United States''
                          after ``accounts'';
                        (G) in section 320, <<NOTE: 15 USC 687m.>>  as
                    redesignated, by striking ``section 321'' and inserting
                    ``section 319''; and
                        (H) in section 509 <<NOTE: 15 USC 697f.>> --
                              (i) in subsection (a)(1), by striking the
                          second sentence; and
                              (ii) in subsection (e)(1)(B), by striking
                          ``subsection (c) or (d) of section 301'' and
                          inserting ``section 301''.
                (2) Amendment in other law.--Section 11(h) of the Federal
            Home Loan Bank Act (12 U.S.C. 1431(h)) is amended by striking
            ``301(d)'' and inserting ``301''.
            (i) Amendments to the Small Business Act.--
                (1) Powers of the administrator.--Section 5(b)(7) of the
            Small Business Act (15 U.S.C. 634(b)(7)) is amended by striking
            the colon and all that follows before the semicolon at the end
            of the paragraph and inserting the following: ``: Provided, That
            with respect to deferred participation loans, the Administrator
            may, in the discretion of and pursuant to regulations
            promulgated by the Administrator, authorize participating
            lending institutions to take actions relating to loan servicing
            on behalf of the Administrator, including determining
            eligibility and creditworthiness and loan monitoring,
            collection, and liquidation''.
                (2) Authorization of appropriations.--Section 20(p)(3) of
            the Small Business Act (15 U.S.C. 631 note) is amended by
            striking subparagraph (B) and inserting the following:
                        ``(B) $300,000,000 in guarantees of debentures;
                    and''.
            (j) <<NOTE: 15 USC 634 note.>>  Effective Date.--This section
    and the amendments made by this section shall become effective on the
    date of enactment of this Act.

    [[Page 110 STAT. 3009-748]]

                                   DIVISION E

         TITLE I--CALIFORNIA <<NOTE: California Bay-Delta Environmental
         Enhancement and Water Security Act.>>  BAY-DELTA ENVIRONMENTAL
    ENHANCEMENT AND WATER SECURITY ACT

    SEC. 101. SHORT TITLE.

          This title may be cited as the ``California Bay-Delta
    Environmental Enhancement and Water Security Act.''

    SEC. 102. PROGRAM FUNDING.

          (a) Authorization of Appropriations.--For each of the fiscal years
    1998, 1999 and 2000, there are authorized to be appropriated an
    additional $143,300,000 for both (1) the initial Federal share of the
    cost of developing and implementing that portion of an ecosystem
    protection plan for the Bay-Delta, referred to as ``the Category III
    program'' emanating out of the document entitled ``Principles for
    Agreement on Bay-Delta Standards Between the State of California and the
    Federal Government,'' dated December 15, 1994, and, (2) the initial
    Federal share of the cost of developing and implementing the ecosystem
    restoration elements of the long-term CALFED Bay-Delta Program, pursuant
    to the cost-sharing agreement required by Section 78684.10 of California
    Senate Bill 900, Chapter 135, Statutes of 1996, signed by the Governor
    of California on July 11, 1996. Funds appropriated pursuant to this
    section shall remain available until expended and shall be administered
    in accordance with procedures established by CALFED Bay-Delta Program
    until Congress authorizes another entity that is recommended by CALFED
    Bay-Delta Program to carry out this section.
          (b) Funds authorized to be appropriated pursuant to this section
    to those agencies that are currently or subsequently become participants
    in the CALFED Bay-Delta Program shall be in addition to the baseline
    funding levels established pursuant to section 103 of this title, for
    currently authorized projects and programs under the Central Valley
    Project Improvement Act, Title 34 of Public Law 102-575 and other
    currently authorized Federal programs for the purpose of Bay-Delta
    ecosystem protection and restoration.
          (c) Nothing in this title shall be deemed to diminish the Federal
    interest in and responsibility for working with the State of California
    through the CALFED Bay-Delta Program in developing, funding and
    implementing a balanced, long-term solution to the problems of ecosystem
    quality, water quality, water supply and reliability, and system
    vulnerability affecting the San Francisco Bay/Sacramento-San Joaquin
    Delta Watershed in California. Participation in such long-term solution
    shall only be undertaken pursuant to authorization provided by law other
    than this title, and shall be based on the equitable allocation of
    program costs among beneficiary groups that the CALFED Bay-Delta
    programs shall develop.
          (d) To the extent not otherwise authorized, those agencies and
    departments that are currently or subsequently become participants in
    the CALFED Bay-Delta Program are hereby authorized to undertake the
    activities and programs for which Federal cost sharing is provided by
    this section. The United States shall immediately initiate coordinated
    consultations and negotiations with the State

    [[Page 110 STAT. 3009-749]]

    of California to expeditiously execute the cost-sharing agreement
    required by Section 78684.10 of California Senate Bill 900, Chapter 135,
    Statutes of 1996, signed by the Governor of California on July 11, 1996.
    Such activities shall include, but not be limited to, planning, design,
    technical assistance and construction for ecosystem restoration programs
    and projects.

    SEC. 103. BUDGET CROSSCUT.

          The Office of Management and Budget is directed to submit to the
    House and Senate Committees on Appropriations, as part of the
    President's Fiscal Year 1998 Budget, an interagency budget crosscut that
    displays Federal spending for fiscal years 1993 through 1998 on
    ecosystem restoration and other purposes in the Bay-Delta region,
    separately showing funding provided previously or requested under both
    preexisting authorities and new authorities granted by this title.

    SEC. 104. EFFECTIVE DATE.

          Section 102 of this title shall take effect on the date of passage
    of California State Proposition 204.
          This Act may be cited as the ``Omnibus Consolidated Appropriations
    Act, 1997''.

        Approved September 30, 1996.

    LEGISLATIVE HISTORY--H.R. 3610 (S. 1894):
    ---------------------------------------------------------------------------

    HOUSE REPORTS: Nos. 104-617 (Comm. on Appropriations) and 104-863 (Comm.
    on Conference).
    SENATE REPORTS: No. 104-286 accompanying S. 1894 (Comm. on
    Appropriations).
    CONGRESSIONAL RECORD, Vol. 142 (1996):
                June 13, considered and passed House.
                July 11, 17, 18, considered and passed Senate, amended, in
                    lieu of S. 1894.
                Sept. 28, House agreed to conference report.
                Sept. 30, Senate agreed to conference report.
    WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 32 (1996):
                Sept. 30, Presidential statement.

                                      <all>