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

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        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

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                      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

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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>