H.R. 3400 (103rd): Government Reform and Savings Act of 1993

103rd Congress, 1993–1994. Text as of Oct 28, 1993 (Introduced).

Status & Summary | PDF | Source: GPO

HR 3400 IH

103d CONGRESS

1st Session

H. R. 3400

To provide a more effective, efficient, and responsive government.

IN THE HOUSE OF REPRESENTATIVES

October 28, 1993

Mr. GEPHARDT introduced the following bill; which was referred jointly to the following committees for a period ending not later than November 15, 1993: Agriculture, Armed Services, Banking, Finance and Urban Affairs, Education and Labor, Energy and Commerce, Foreign Affairs, Government Operations, House Administration, the Judiciary, Merchant Marine and Fisheries, Natural Resources, Permanent Select Committee on Intelligence, Post Office and Civil Service, Public Works and Transportation, Science, Space, and Technology, Veterans’ Affairs, and Ways and Means


A BILL

To provide a more effective, efficient, and responsive government.

    Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ‘Government Reform and Savings Act of 1993’.

SEC. 2. TABLE OF CONTENTS.

    The table of contents is as follows:

TITLE I--DEPARTMENT OF AGRICULTURE

Subtitle A--Department of Agriculture Reorganization

Subtitle B--Eliminate Federal Support for Wool and Mohair

Subtitle C--Eliminate Federal Support for Honey

TITLE II--DEPARTMENT OF COMMERCE

Polar Satellite Convergence

TITLE III--DEPARTMENT OF DEFENSE

Subtitle A--Create Incentives for the Department of Defense to Generate Revenues

Subtitle B--Closure of the Uniform Services University of the Health Sciences

Subtitle C--Streamline and Reorganize the United States Army Corps of Engineers

TITLE IV--DEPARTMENT OF ENERGY

Subtitle A--Alaska Power Administration Sale Authorization Act

Subtitle B--Federal-Private Cogeneration of Electricity

Subtitle C--Power Marketing Administration Debt Buyout

TITLE V--DEPARTMENT OF HEALTH AND HUMAN SERVICES

Subtitle A--Increased Flexibility in Contracting for Medicare Claims Processing

Subtitle B--Workers’ Compensation Data Exchange Pilot Projects

Subtitle C--Federal Clearinghouse on Death Information

Subtitle D--Continuing Disability Reviews

TITLE VI--DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Subtitle A--Multifamily Property Disposition

Subtitle B--Merger of the Certificate and Voucher Programs

Subtitle C--Streamline HUD

Subtitle D--Refinance Section 235 Mortgages

Subtitle E--Section 8 Rents for New Construction and Rehabilitation Projects

TITLE VII--DEPARTMENT OF THE INTERIOR

Subtitle A--Improve the Federal Helium Program

Subtitle B--Improve Minerals Management Service Royalty Collection

Subtitle C--Phase Out the Mineral Institute Program

TITLE VIII--DEPARTMENT OF JUSTICE

Bureau of Prisons Health Services User Fee

TITLE IX--DEPARTMENT OF LABOR

Subtitle A--Deterrence of Fraud and Abuse in the FECA Program

Subtitle B--Enhancement of Reemployment Programs for Federal Employees Disabled in the Performance of Duty

Subtitle C--Wage Determinations--McNamara-O’Hara Service Contract Act and Davis-Bacon Act

Subtitle D--Elimination of Filing Requirement for Plan Descriptions, Summary Plan Descriptions, and Descriptions of Material Modifications to a Plan

TITLE X--DEPARTMENT OF STATE/UNITED STATES INFORMATION AGENCY

      Reduction of Mission Operating Costs

TITLE XI--DEPARTMENT OF TRANSPORTATION

Subtitle A--Authority to Charge Tuition for Attendance at the United States Merchant Marine Academy

Subtitle B--Reform of the Essential Air Service Program

Subtitle C--Repeal of Authorization for the Airway Science Program, Collegiate Training Initiative, and Air Carrier Maintenance Technical Training Facility Grant Program

TITLE XII--DEPARTMENT OF VETERANS AFFAIRS

Subtitle A--Remove Certain Limitations and Restrictions Contained in Veterans Law

Subtitle B--Closure of Supply Depots and Transfer of Revolving Supply Fund Money

Subtitle C--Provision of Information from the Medicare and Medicaid Coverage Data Bank to the Department of Veterans Affairs

Subtitle D--Veterans’ Appeals Improvement Act of 1993

TITLE XIII--HUMAN RESOURCE MANAGEMENT

Subtitle A--Federal Workforce Restructuring Act of 1993

Subtitle B--SES Annual Leave Accumulation

TITLE XIV--REINVENTING SUPPORT SERVICES

Government Information Dissemination and Printing Improvement Act of 1993

TITLE XV--STREAMLINING MANAGEMENT CONTROL

Authority to Increase Efficiency in Reporting to Congress

TITLE XVI--IMPROVING FINANCIAL MANAGEMENT

Subtitle A--Electronic Payments

Subtitle B--Franchise Funds and Innovation Funds

Subtitle C--Simplifying the Management Reporting Process

Subtitle D--Annual Financial Reports

Subtitle E--Strengthening Debt Collection Programs

Subtitle F--Improving Department of Justice Debt Collection

Subtitle G--Adjusting Civil Monetary penalties for Inflation

TITLE XVII--YEAR-END SPENDING

TITLE I--DEPARTMENT OF AGRICULTURE

Subtitle A--Department of Agriculture Reorganization

SEC. 1001. DEPARTMENT OF AGRICULTURE REORGANIZATION.

    Pursuant to authorities proposed in the Department of Agriculture Reorganization Act of 1993 (H.R. 3171) and current legal authorities, the Secretary of Agriculture shall take action to restructure and reinvent the Department of Agriculture by reducing the number of agencies in the Department, reducing headquarters and administrative staffing and overhead, closing or consolidating unnecessary field locations, and taking such other actions as may be necessary to reduce the staffing of the department by not less than 7,500 staff years and save a total of not less than $1.64 billion in fiscal years 1995 through 1999.

Subtitle B--Eliminate Federal Support for Wool and Mohair

SEC. 1101. AMENDMENTS TO SECTION 703 OF NATIONAL WOOL ACT OF 1954.

    Section 703 of the National Wool Act of 1954 (7 U.S.C. 1782) is amended--

      (1) by striking subsection (a) and inserting the following new subsection:

    ‘(a) Subject to subsection (b)(3), the Secretary of Agriculture shall, through the Commodity Credit Corporation, make loans and payments to producers of wool and mohair through December 31, 1995.’;

      (2) in subsection (b)--

        (A) in paragraph (2), by striking ‘1997’ and inserting ‘1995’; and

        (B) by striking paragraph (3) and inserting the following new paragraph:

    ‘(3) No loans, purchases, or payments shall be made for the 1996 and subsequent marketing years, except that loans and payments for the 1995 marketing year shall be paid in 1996.’; and

      (3) by adding at the end the following new paragraph:

    ‘(4)(A) Through December 31, 1995, the Secretary shall offer to wool and mohair producers recourse loans under terms and conditions that are prescribed by the Secretary, except that the loans shall be administered at no net cost to the Federal Government.

    ‘(B) A producer who fails to repay a loan made under subparagraph (A) by the end of the following marketing year shall be ineligible for a loan under this Act for that marketing year and subsequent marketing years.’.

SEC. 1102. AMENDMENT TO SECTION 704 OF NATIONAL WOOL ACT OF 1954.

    Section 704(a) of the National Wool Act of 1954 (7 U.S.C. 1783(a)) is amended by inserting after the first sentence the following new sentence: ‘In the case of each of the 1994 and 1995 marketing years, the payments shall be 75 and 50 percent, respectively, of the amount otherwise determined under the preceding sentence.’.

SEC. 1103. REPEAL OF NATIONAL WOOL ACT OF 1954.

    (a) IN GENERAL- Effective December 31, 1995, the National Wool Act of 1954 (7 U.S.C. 1781 et seq.) is repealed.

    (b) APPLICATION- The repeal made by subsection (a) shall apply to both the wool and mohair programs.

    (c) PROHIBITION- Effective beginning December 31, 1995, the Secretary of Agriculture may not provide loans or payments for wool or mohair by using the funds of the Commodity Credit Corporation or under the authority of any law.

SEC. 1104. REPEAL OF SECTION 702 OF NATIONAL WOOL ACT OF 1954, ETC.

    (a) Section 702 of the National Wool Act of 1954 (7 U.S.C. 1781) is repealed.

    (b) Section 703 of such Act (7 U.S.C. 1782) is amended--

      (1) by striking the section heading and inserting the following new section heading: ‘SUPPORT PRICE FOR WOOL AND MOHAIR’;

      (2) in subsection (b)(1)(i), by striking ‘such price support’ and inserting ‘the support price’; and

      (3) in subsection (d), by striking ‘price support’ and inserting ‘support under this section’.

    (c) Section 704 of such Act (7 U.S.C. 1783) is amended--

      (1) by striking the section heading and inserting the following new section heading:

‘SEC. 704. PAYMENTS.’;

      and

      (2) in subsection (a), by striking ‘If payments are utilized as a means of price support, the’ and inserting ‘The’.

    (d) The first sentence of section 706 of such Act (7 U.S.C. 1785) is amended by striking ‘price support operations’ and inserting ‘operations under this Act’.

SEC. 1105. SAVINGS PROVISION.

    A provision of this subtitle may not affect the liability of any person under any provision of law as in effect before the effective date of the provision.

Subtitle C--Eliminate Federal Support for Honey

SEC. 1201. AMENDMENTS TO SECTION 207 OF AGRICULTURAL ACT OF 1949.

    Section 207 of the Agricultural Act of 1949 (7 U.S.C. 1446h) is amended--

      (1) by striking ‘1998’ each place it appears, in subsections (a), (c), and (j), and inserting ‘1995’;

      (2) by striking ‘loan’ each place it appears except for subsection (d), and inserting ‘nonrecourse loan’; and

      (3) in subsection (a), by striking paragraphs (3), (4), and (5) and inserting the following new paragraph:

      ‘(4)(i) No loans, purchases, or payments shall be made for the 1996 and subsequent crop years.

      ‘(ii) Through December 31, 1995, the Secretary shall offer to honey producers recourse loans under terms and conditions that are prescribed by the Secretary, except that the loans shall be administered at no net cost to the Federal Government.

      ‘(iii) A producer who fails to repay a loan made under clause (ii) by the end of the following marketing year shall be ineligible for a loan under this Act for that marketing year and subsequent marketing years.’.

SEC. 1202. FURTHER AMENDMENTS TO SECTION 207 OF AGRICULTURAL ACT OF 1949.

    Section 207 of the Agricultural Act of 1949 (7 U.S.C. 1446h) is amended--

      (1) After subsection (b)(2), by inserting the following:

      ‘(3) In the case of the 1994 and 1995 marketing years, the quantity of honey for which a producer may receive a nonrecourse loan shall be reduced by 25 and 50 percent, respectively, of the lesser of--

        ‘(i) the amount requested for a nonrecourse loan, or

        ‘(ii) the most recent five year average of previous loan placements.

      ‘(4) The honey not eligible for the nonrecourse loan shall be eligible for a recourse loan but shall not be eligible for a loan deficiency payment.’;

      (2) In paragraphs (3) and (4), by striking ‘(3)’ and ‘(4)’ and inserting ‘(4)’ and ‘(5)’; and

      (3) After subsection (c)(2), by inserting the following new paragraph:

      ‘(3) In the case of the 1994 and 1995 marketing years, the quantity of honey for which a producer can receive loan deficiency payments shall be 75 and 50 percent, respectively, of the lesser of--

        ‘(i) the amount requested for honey eligible for nonrecourse loans, or

        ‘(ii) the average amount received in loan deficiency payments for the previous five years.’.

SEC. 1203. AMENDMENTS TO SECTION 405A OF AGRICULTURAL ACT OF 1949.

    Section 405A of the Agricultural Act of 1949 (7 U.S.C. 1425a) is amended--

      (1) in subsection (a), by striking ‘$125,000’ and inserting ‘$75,000’; and

      (2) in subsection (a), by striking all that follows ‘Provided, however,’ and inserting ‘In the case of the 1994 and 1995 marketing years, the amount that a producer can forfeit shall be limited by the amount that can be put under loan as determined under section 207(b) and (c) of this Act.’.

SEC. 1204. REPEAL OF SECTION 207 OF AGRICULTURAL ACT OF 1949.

    (a) IN GENERAL- Effective December 31, 1995, Section 207 of the Agricultural Act of 1949 (7 U.S.C. 1446h) is repealed.

    (b) PROHIBITION- Effective beginning December 31, 1995, the Secretary of Agriculture may not provide loans or payments for honey by using the funds of the Commodity Credit Corporation or under the authority of any law, except that the Commodity Credit Corporation may settle any outstanding loans made on or before December 31, 1995.

SEC. 1205. SAVINGS PROVISION.

    A provision of this subtitle may not affect the liability of any person under any provision of law as in effect before the effect date of the provision.

TITLE II--DEPARTMENT OF COMMERCE

SEC. 2001. POLAR SATELLITE CONVERGENCE.

    The Departments of Commerce and Defense and the National Aeronautics and Space Administration shall propose a single operational polar environmental and weather satellite system, which meets national needs. A detailed implementation plan shall be submitted to Congress by the Director of the Office of Science and Technology Policy, in consultation with the Departments of Commerce and Defense and the National Aeronautics and Space Administration, by April 30, 1994. The plan shall be designed to result in savings of up to $300 million in budget authority and up to $251 million in outlays between fiscal years 1994 and 1999.

TITLE III--DEPARTMENT OF DEFENSE

Subtitle A--Create Incentives for the Department of Defense to Generate Revenues

SEC. 3001. INCENTIVES FOR DEPARTMENT OF DEFENSE TO GENERATE REVENUES.

    Section 2577 of title 10, United States Code, is amended by striking subsections (b) and (c), and inserting the following new subsection:

    ‘(b) Proceeds from the sale of recyclable materials at an installation shall be credited to funds available for operations and maintenance at that installation, and, at the discretion of the installation commander, to the nonappropriated morale and welfare account of the installation to be used for any morale and welfare activity.’.

Subtitle B--Closure of the Uniform Services University of the Health Sciences

SEC. 3101. CLOSURE OF UNIFORM SERVICES UNIVERSITY OF THE HEALTH SCIENCES.

    (a) REPEAL OF AUTHORITY- Chapter 104 of title 10, United States Code, is hereby repealed.

    (b) PHASE-OUT PROCESS- (1) Notwithstanding any other provision of law, the Secretary of Defense shall phase out the Uniformed Services University of the Health Sciences, beginning in fiscal year 1995, and ending with the closure of such University not later than September 30, 1998. No provision of section 2687 of title 10, United States Code, or of any other law establishing preconditions to the closure of any activity of the Department of Defense shall operate to establish any precondition to the phase-out and closure of the Uniformed Services University of the Health Sciences pursuant to this subtitle.

    (2) Under the phase-out process required by paragraph (1), the Secretary of Defense is authorized to exercise all of the authorities pertaining to the operation of the Uniformed Services University of the Health Sciences that were granted to the Secretary of Defense, the Board of Regents, or the Dean of the Uniformed Services University of the Health Sciences by chapter 104 of title 10, United States Code, prior to enactment of the repeal of that chapter by subsection (a). Such authorities may be exercised by the Secretary of Defense so as to achieve an orderly phase-out of operations of the Uniformed Services University of the Health Sciences.

    (3) No new class of students may be admitted to begin studies in the Uniformed Services University of the Health Sciences after September 30, 1994. No students may be awarded degrees by such University after September 30, 1998, except that the Secretary of Defense may grant exceptions on a case-by-case basis for any students who by that date have completed substantially all degree requirements.

    (c) AUTHORITIES UNAFFECTED- (1) Commissioned service obligations incurred by students of the Uniformed Services University of the Health Sciences shall be unaffected by enactment of the repeal of chapter 104 of title 10, United States Code, by subsection (a).

    (2) Nothing in this subtitle shall be construed as limiting the exercise by the Secretary of Defense of other authorities under law pertaining to health sciences education, training and professional development, graduate medical education, medical and scientific research, and similar activities. To the extent any such activities had been assigned by the Secretary of Defense to the Uniformed Services University of the Health Sciences, the Secretary of Defense’s authority to assign such activities to any other component or entity of the Department of Defense shall be unaffected by the phase-out and closure of the Uniformed Services University of the Health Sciences pursuant to this subtitle.

    (d) CONFORMING AMENDMENTS- (1) Section 178 of title 10, United States Code, pertaining to the Henry M. Jackson Foundation for the Advancement of Military Medicine, is amended--

      (A) in subsection (b), by striking ‘Uniformed Services University of the Health Sciences’ and inserting ‘Department of Defense’;

      (B) in subsection (c)(1)(B), by striking ‘the Dean of the Uniformed Services University of the Health Sciences’ and inserting ‘a person designated by the Secretary of Defense’; and

      (C) in subsection (g)(1), by striking ‘Uniformed Services University of the Health Sciences’ and inserting ‘Secretary of Defense’.

    (2) Section 466 of the Public Health Service Act (42 U.S.C. section 286a), pertaining to the Board of Regents of the National Library of Medicine, is amended in subsection (a)(1)(B) by striking ‘the Dean of the Uniformed Services University of the Health Sciences’.

    (3) The table of chapters and the table of sections at the beginning of title 10, United States Code, is amended by striking references to chapter 104 and sections 2112 through 2115.

    (e) EFFECTIVE DATE- This section shall be effective upon the date of enactment.

Subtitle C--Streamline and Reorganize the U.S. Army Corps of Engineers

SEC. 3201. STREAMLINING AND REORGANIZATION OF CORPS OF ENGINEERS.

    Notwithstanding any other provision of law, the Secretary of the Army shall reorganize the United States Army Corps of Engineers by reorganizing the headquarters offices, reducing the number of division offices, and restructuring the district functions so as to increase the efficiency of the United States Army Corps of Engineers and reduce staff and costs, with the goal of achieving approximately $50 million in net annual savings by fiscal year 1998.

TITLE IV--DEPARTMENT OF ENERGY

Subtitle A--Alaska Power Administration Sale Authorization Act

SEC. 4001. SHORT TITLE.

    This subtitle may be cited as the ‘Alaska Power Administration Sale Authorization Act’.

SEC. 4002. SALE OF SNETTISHAM AND EKLUTNA HYDROELECTRIC PROJECTS.

    (a) The Secretary of Energy may sell the Snettisham Hydroelectric Project (referred to in this subtitle as ‘Snettisham’) to the State of Alaska Power Authority (now known as the Alaska Industrial Development and Export Authority, and referred to in this subtitle as the ‘Authority’), or its successor, in accordance with the February 10, 1989, Snettisham Purchase Agreement between the Alaska Power Administration of the United States Department of Energy and the Authority.

    (b) The Secretary of Energy may sell the Eklutna Hydroelectric Project (referred to in this subtitle as ‘Eklutna’) to the Municipality of Anchorage doing business as Municipal Light and Power, the Chugach Electric Association, Inc., and the Matanuska Electric Association, Inc. (referred to in this subtitle as ‘Eklutna Purchasers’) in accordance with the August 2, 1989, Eklutna Purchase Agreement between the United States Department of Energy and the Eklutna Purchasers.

    (c) The heads of other affected Federal departments and agencies, including the Secretary of the Interior, shall assist the Secretary of Energy in implementing the sales authorized by this Act.

    (d) The Secretary of Energy shall deposit sale proceeds in the Treasury of the United States to the credit of miscellaneous receipts.

    (e) There are authorized to be appropriated such sums as are necessary to prepare or acquire Eklutna and Snettisham assets for sale and conveyance, such preparations to provide sufficient title to ensure the beneficial use, enjoyment, and occupancy to the purchasers of the assets to be sold.

    (f) No later than one year after both of the sales authorized in section 4002 have occurred, as measured by the Transaction Dates stipulated in the Purchase Agreements, the Secretary of Energy shall--

      (1) complete the business of, and close out, the Alaska Power Administration; and

      (2) prepare and submit to Congress a report documenting the sales.

SEC. 4003. ASSESSMENT OF ALTERNATIVE OPTIONS.

    Before taking any action authorized in section 4002, the Secretary shall assess the feasibility of alternative options for maximizing the return to the Treasury from the sale of the Alaska Power Marketing Administration.

Subtitle B--Federal-Private Cogeneration of Electricity

SEC. 4101. FEDERAL-PRIVATE COGENERATION OF ELECTRICITY.

    Section 804(2)(B) of the National Energy Conservation Policy Act (42 U.S.C. 8287c(2)(B)) is amended by striking ‘, excluding any cogeneration process for other than a federally owned building or buildings or other federally owned facilities.’.

Subtitle C--Power Marketing Administration Debt Buyout

PART 1--BONNEVILLE POWER ADMINISTRATION DEBT BUYOUT

SEC. 4201. SHORT TITLE.

    This part may be cited as the ‘Bonneville Power Administration Repayment Bonds Act’.

SEC. 4202. SALE OF BONDS.

    Notwithstanding any other law and without fiscal year limitation--

      (1) in addition to the authority in section 13 of the Federal Columbia River Transmission System Act (16 U.S.C. 838k), the Administrator may issue and sell bonds, notes, and other evidences of indebtedness (referred to in this part as ‘Bonds’) in the manner and amounts the Administrator, considers appropriate in the name of and for and on behalf of the Bonneville Power Administration, to--

        (A) satisfy the unpaid repayment obligation associated with the appropriated capital investment made in the Federal Columbia River Power System before the issuance of the Bonds authorized under this part takes place, but not including Federal irrigation investments assigned to be repaid from power revenues; and

        (B) refund Bonds;

      (2) the Administrator shall transfer, and the Secretary of the Treasury shall accept for the account of the General Fund, the net proceeds of the Bonds referred to in paragraph (1)(A), and when the Secretary of the Treasury receives the net proceeds, the repayment obligation associated with the part of the appropriated capital investment in the Federal Columbia River Power System covered by the Bonds is considered to be satisfied forever;

      (3) the Secretary of the Treasury, in consultation with the Administrator, shall establish the amount of proceeds needed to satisfy the unpaid repayment obligation associated with the part of the capital investment referred to in paragraph (1)(A) as the amount necessary to increase the sum of the net proceeds and the discounted present value of the remaining Federal debt service of the Federal Columbia River Power System by $100 million relative to the discounted present value of the total Federal debt service of the Federal Columbia River Power System as provided by the Administrator based upon the repayment schedule that would have been paid under repayment policy and practices in effect on September 1, 1993;

      (4) to determine the discounted present values in paragraph (3), the Secretary of the Treasury shall use discount rates based on the secondary market’s average yield for the most recently issued 30-year Treasury bonds when the Bonds authorized in paragraph (1) are issued;

      (5) these Bonds shall be in the forms and denominations, bear the maturities (without respect to the remaining average service life of the capital investment associated with the repayment obligation satisfied by the Bonds issued under this part), be issued and sold at the times, prices, discounts, and yields, and be subject to other terms and conditions (including variable rates) as the Administrator considers appropriate;

      (6) under section 2(f) of the Bonneville Project Act of 1937 (16 U.S.C. 832a(f)) and this part, the Administrator may enter into any contract that the Administrator considers necessary for the purposes of carrying out this part including, but not limited to, contracts for--

        (A) the payment of the principal, interest, and premium, if any, on Bonds issued under this part;

        (B) the purchase or redemption of those Bonds;

        (C) the payment of costs and expenses incidental to this payment, purchase, and redemption; or

        (D) the creation of reserve and other funds to be held by a trustee, which funds the Administrator may pledge exclusively to pay those costs for which the funds were created and establish a lien on the funds in favor of the beneficiaries of the funds under any indenture, resolution, or other agreement entered into in connection with the issuance of Bonds under this part;

      (7) Bonds issued under this part--

        (A) shall be issuable and payable through the Federal wire system;

        (B) are negotiable instruments that may be accepted as security for all fiduciary, trust, and public funds, the investment or deposit of which is under the authority or control of any officer or agency of the United States;

        (C) may be held without limitation by national banks;

        (D) qualify as legal investments for banks, savings and loan institutions, and credit unions; and

        (E) are eligible collateral for Federal advances and discounts, for deposits of the United States, and for the Treasury tax and loan accounts;

      (8) Bonds issued under this part are not intended to be and are not secured by the full faith and credit of the United States;

      (9) Bonds issued under this part are exempt both as to principal and interest from all taxation by any State or local taxing authority, except estate, inheritance, and gift taxes;

      (10) Bonds issued under this part shall contain a recital that they are issued under this part and this recital is conclusive evidence of the regularity of the issuance and sale of the Bonds and their validity;

      (11) the Bonds issued under this part, all receipts of the Secretary of the Treasury under this part, any portion of the fund established under the Federal Columbia River Transmission System Act (16 U.S.C. 838 et seq.) related to these Bonds, all receipts and disbursements of that fund related to these Bonds, and all expenditures by the Administrator related to these Bonds--

        (A) are exempt from any general budget limitation imposed by statute on expenditures and net lending (budget outlays) of the United States Government, sequestration order, or discretionary spending limit;

        (B) are exempt from any order issued pursuant to sections 251, 252, or 253 of the Balanced Budget and Emergency Deficit Control Act of 1985 (2 U.S.C. 900 et seq.); and

        (C) are not subject to apportionment under subchapter II of chapter 15 of title 31, United States Code;

      (12) in all future contracts for the sale of electric power, transmission, or other services, the Administrator shall include provisions specifying that after the repayment obligation is fully and forever satisfied, the Administrator’s rates for electric power, transmission, or other services shall not include any form of economic rent to be returned to the United States Government, including, without limitation, a falling water charge or any other fee for use of Federal facilities for power generation or transmission, that relates to a project, facility, or separable unit of a project or facility associated with the satisfied repayment obligation, other than a charge necessary to repay the new indebtedness incurred under this part. Amounts provided under section 1304 of title 31, United States Code, shall be the sole source for payment of a judgment against the Administrator or the United States on a claim for a violation of the contract provision required by this paragraph;

      (13) the Administrator shall offer to amend the Administrator’s existing contracts for the sale of electric power, transmission, or other services to include the provisions described in paragraph (12); and

      (14) the Administrator shall consult with the Secretary of the Treasury regarding the timing and structure of the bonds issued under this part.

SEC. 4203. PAYMENT OF BOND COSTS.

    Section 11(b)(6) of the Federal Columbia River Transmission System Act (16 U.S.C. 838i(b)(6)), is amended by striking ‘or’ before ‘(iv)’ and by inserting before the semicolon ‘, or (v) to pay the cost of financing and debt service, including premiums, if any, on Bond issued by the Bonneville Power Administration’.

SEC. 4204. COMBINED REPAYMENT STUDY.

    Section 7(a) of the Pacific Northwest Electric Power Planning and Conservation Act (16 U.S.C. 893e(a)), is amended by adding after paragraph (2) the following:

      ‘(3) In establishing power and transmission rates, the Administrator may base them on a single, combined generation and transmission repayment study which demonstrates that all indebtedness is repaid by its due date. The use of such a study is sufficient for the commission to approve the rates as meeting repayment requirements.’.

SEC. 4205. DEFINITIONS.

    For the purposes of this part--

      (1) ‘Administrator’ means the Administrator of the Bonneville Power Administration; and

      (2) ‘appropriated capital investment made in the Federal Columbia River Power System’ means an investment made by the United States that--

        (A) is made using Federal appropriations;

        (B) is for a project or separable feature of a project that is placed in service;

        (C) is allocated to power and required by law to be repaid from the power revenues by the Administrator;

        (D) is not allocated or suballocated to irrigation; and

        (E) excludes an investment made using funds borrowed under section 13 of the Federal Columbia River Transmission System Act.

PART 2--OTHER POWER MARKETING ADMINISTRATIONS DEBT BUYOUT

SEC. 4206. SHORT TITLE.

    This part may be cited as the ‘Power Marketing Administrations Financing Act’.

SEC. 4207. DEFINITIONS.

    For the purposes of this part--

      (1) ‘Administrator’ means the Administrator of the Southeastern Power Administration, the Administrator of the Southwestern Power Administration, and the Administrator of the Western Area Power Administration;

      (2) ‘Fund’ means the Power Marketing Administration Sinking Fund established under section 4209; and

      (3) ‘Power marketing administration’ means the Southeastern Power Administration, the Southwestern Power Administration, and the Western Area Power Administration.

SEC. 4208. REPAYMENT OF EXISTING INDEBTEDNESS.

    (a) Notwithstanding any other law, within 12 months after the enactment of this Act, each Administrator shall develop, in consultation with the Secretary of the Treasury, and shall implement a plan for paying the United States Treasury the discounted present value of principal and interest payments on power investments scheduled to be paid to the United States Treasury as provided by the Administrator under existing law and repayment practices by that power marketing administration, as well as a one-time additional payment of $12,500,000 by the Southeastern Power Administration, $12,500,000 by the Southwestern Power Administration, and $50,000,000 by the Western Area Power Administration. Each Administrator shall issue revenue bonds as provided in section 4210 to pay the obligation to the United States Treasury addressed in this section, except that the issuance of these bonds shall occur only if each Administrator determines by means of financial studies that the refinancing will not cause an increase in power rates over existing repayment practices. When the Treasury receives full payment from an Administrator, it shall consider the repayment obligation of the Administration associated with the payment fully and forever discharged.

    (b) In all future contracts for the sale of electric power, transmission, or other services, each Administrator shall include provisions agreeing that when the repayment obligation is fully and forever discharged under subsection (a), the Administrator’s rates for electric power, transmission, or other services shall not, other than is necessary to repay the new indebtedness incurred under this Act, include any charge in place of the satisfied obligation or include any other similar form of economic rent by or returned to the United States (including, without limitation, a falling water charge or any other type of user fee for use of Federal facilities for the purpose of power generation and transmission) on account of any project, facility, or separable unit of a project or facility associated with the repayment obligation satisfied.

    (c) Each Administrator shall offer to amend existing contracts for the sale of electric power, transmission, or other services to include the provision described in subsection (b).

SEC. 4209. POWER MARKETING ADMINISTRATION SINKING FUND.

    (a) There is established in the Treasury of the United States a Power Marketing Administration Sinking Fund. The Secretary of the Treasury, acting as trustee for the power marketing administrations, shall establish and maintain a separate account in the Fund for each power marketing administration, and monies of one power marketing administration shall not be commingled with monies of another power marketing administration. Within the separate account for each power marketing administration, separate projects or systems shall be accounted for separately. An Administrator may deposit into the Fund the monies derived from revenues that the Administrator considers appropriate to ensure that the bonds issued under section 4210 are refunded in a timely manner.

    (b) Balances in the Fund shall earn interest at a rate determined by the Secretary of the Treasury.

    (c) An Administrator may make expenditures from the Administrator’s account in the Fund without further appropriation and without fiscal year limitation to pay indebtedness incurred from bonds issued under section 4210.

    (d) Each power marketing administration shall maintain its books of account in substantial conformance with the Uniform System of Accounts of the Federal Energy Regulatory Commission.

    (e) The financial transactions of an Administrator shall be audited by independent financial auditors, and reports of the results of each audit shall be made to the Congress within 6 1/2 months following the end of the fiscal year covered by the audit.

SEC. 4210. REVENUE BONDS.

    (a) Each Administrator, in consultation with the Secretary of the Treasury, may issue and sell from time to time in the name of, and for and on behalf of, the respective power marketing administration bonds, notes, and other evidences of indebtedness (in this section collectively referred to as ‘bonds’) to refinance existing indebtedness as provided in section 4208 and to issue and sell bonds to refund those bonds. The bonds shall be in the forms and denominations, bear maturities (without respect to the remaining average service life of facilities), and be subject to terms and conditions as prescribed by the Administrator taking into account terms and conditions prevailing in the market for similar bonds and financing practices of the utility industry. Provisions for early retirement of bonds may be prescribed by each Administrator. The bonds shall bear interest at a rate determined by the Administrator.

    (b) Each Administrator may enter into any contract that the Administrator considers necessary for the purposes of carrying out this part including, but not limited to, contracts for--

      (1) the payment of the principal, interest, and premium, if any, on bonds issued under this part;

      (2) their purchase or redemption;

      (3) the payment of costs and expenses incidental to their payment, purchase, and redemption; or

      (4) the creation of reserve and other funds to be held by the Secretary of the Treasury as trustee, which funds the Administrator may pledge exclusively to pay those costs for which the funds were created and may establish a lien on the funds in favor of the beneficiaries of the funds under any indenture, resolution, or other agreement entered into in connection with the issuance of bonds under this part.

    (c) Bonds issued under this part--

      (1) shall be issuable and negotiable through the Federal wire system;

      (2) are negotiable instruments that may be accepted as security for all fiduciary, trust, and public funds, the investment or deposit of which is under the authority or control of any officer or agency of the United States;

      (3) may be held, without limitation, by national banks;

      (4) qualify as legal instruments for banks, savings and loan institutions, and credit unions; and

      (5) are eligible collateral for Federal advances and discounts, for deposits of the United States, and for Treasury tax and loan accounts.

    (d) Bonds issued under this part are exempt both as to principal and interest from all taxation by any State or local taxing authority, except estate, inheritance, and gift taxes.

    (e) Bonds issued under this part shall contain a recital that they are issued under this part and such a recital is conclusive evidence of the regularity of the issuance and sale of the bonds and their validity.

    (f) These bonds are not intended to be and are not secured by the full faith and credit of the United States.

    (g) The bonds issued under this part, all receipts of the Secretary of the Treasury under this part, any portion of the Fund established under section 4210 related to these bonds, all receipts and disbursements of the Fund related to these bonds, and all expenditures by an Administrator related to these bonds--

      (1) are exempt from any general budget limitation imposed by statute on expenditures and net lending (budget outlays) of the United States Government, sequestration order, or discretionary spending limit;

      (2) are exempt from any order issued pursuant to sections 251, 252, or 253 of the Balanced Budget and Emergency Deficit Control Act of 1985 (2 U.S.C. 900 et seq.); and

      (3) are not subject to apportionment under subchapter II of chapter 15 of title 31, United States Code.

    (h) With respect to the Western Area Power Administration, except as otherwise provided, this Act is considered to be a supplement to the Federal reclamation laws.

TITLE V--DEPARTMENT OF HEALTH AND HUMAN SERVICES

Subtitle A--Increased Flexibility in Contracting for Medicare Claims Processing

SEC. 5001. INCREASED FLEXIBILITY IN CONTRACTING FOR MEDICARE CLAIMS PROCESSING.

    (a) Carriers to Include Entities That are not Insurance Companies-

      (1) The matter in section 1842(a) of the Social Security Act preceding paragraph (1) is amended by striking ‘with carriers’ and inserting ‘with agencies and organizations (referred to as carriers’).

      (2) Section 1842(f) of the Act is repealed.

    (b) Elimination of Intermediary Nomination by Providers of Services; Secretarial Flexibility in Assigning Functions to Intermediaries and Carriers-

      (1) Section 1816 of that Act is amended by striking everything after the heading but before subsection (b) and inserting the following:

    ‘SEC. 1816. (a)(1) The Secretary may enter into agreements with agencies or organizations to perform some or all of the following functions (or parts of those functions):

      ‘(A) determine (subject to the provisions of section 1878 and to such review by the Secretary as may be provided for by the agreements) the amount of the payments required pursuant to this part to be made to providers of services,

      ‘(B) make payments described in subparagraph (A),

      ‘(C) provide consultative services to institutions or agencies to enable them to establish and maintain fiscal records necessary for purposes of this part and otherwise to qualify as hospitals, extended care facilities, and home health agencies,

      ‘(D) serve as a center for, and communicate to providers, any information or instructions furnished to the agency or organization by the Secretary, and serve as a channel of communication from providers to the Secretary,

      ‘(E) make such audits of the records of providers as may be necessary to ensure that proper payments are made under this part, and

      ‘(F) perform such other functions as are necessary to carry out the purposes of this part.

    ‘(2) As used in this title and part B of title XI, the term ‘fiscal intermediary’ means an agency or organization with a contract under this section.’.

      (2) Subsections (d) and (e) of section 1816 of that Act are repealed.

      (3) Section 1816(f)(1) of that Act is amended by striking the second sentence.

      (4) The matter in section 1842(a) of that Act preceding paragraph (1) is amended by inserting ‘, or parts of those functions’ after ‘following functions’.

      (5) Section 1842(b)(3)(G) of that Act is amended by inserting ‘(unless provided by another carrier)’ after ‘will provide’.

      (6) The matter in section 1842(b)(3)(H) of that Act preceding clause (i) is amended by striking ‘implement--’ and inserting ‘implement (as appropriate)--’.

      (7) Section 1842(b)(3)(L) of that Act is amended by inserting ‘(as appropriate)’ after ‘will’.

      (8) The first sentence of section 1842(h)(2) of that Act is amended by inserting ‘(unless maintained by another carrier)’ after ‘shall maintain’.

    (c) ELIMINATION OF SPECIAL PROVISIONS FOR TERMINATION OF CONTRACTS-

      (1) Section 1816(f)(1) of that Act is amended by striking ‘, renew, or terminate’ and ‘or reassign’.

      (2) Section 1816(g) of that Act is repealed.

      (3) Section 1842(b) of that Act is amended by striking paragraph (5).

    (d) REPEAL OF PROHIBITION AGAINST DATA MATCHING- Sections 1816(c)(1) and 1842(b)(2)(A) of that Act are each amended by striking the last sentence.

    (e) Repeal of Cost Reimbursement Requirements-

      (1) The first sentence of section 1816(c)(1) of that Act is amended--

        (A) by striking the comma after ‘appropriate’ and inserting ‘and’; and

        (B) by striking everything after ‘subsection (a)’ up to the period.

      (2) Section 1816(c)(1) of that Act is further amended by striking the remaining sentences.

      (3) The first sentence of section 1842(c)(1)(A) of that Act is amended--

        (A) by striking ‘shall provide’ the first place it occurs and inserting ‘may provide’; and

        (B) by striking everything after ‘this part’ up to the period.

      (4) Section 1842(c)(1)(A) of that Act is further amended by striking the remaining sentences.

      (5) Section 2326(a) of the Deficit Reduction Act of 1984 is repealed.

    (f) ELIMINATION OF SEPARATE CARRIER FOR RAILROAD RETIREES- Section 1842(g) of the Social Security Act is repealed.

    (g) EFFECTIVE DATE- The amendments made by the preceding subsections apply to contracts (including renewals) entered into after the third calendar month that begins after the date of enactment of this Act.

Subtitle B--Workers’ Compensation Data Exchange Pilot Projects

SEC. 5101. WORKERS’ COMPENSATION DATA EXCHANGE PILOT PROJECTS.

    (a) IN GENERAL- The Secretary is authorized to conduct pilot projects with not more than three States for the purpose of studying various means of obtaining on a timely and accurate basis such information relating to benefits paid on account of total or partial disability under the States’ workers’ compensation plan as the Secretary may require for the purpose of carrying out section 224 of the Social Security Act.

    (b) REIMBURSEMENT OF STATE COSTS- A State that participates in a project conducted pursuant to subsection (a) may be paid by the Secretary, from amounts available pursuant to subsection (e), the reasonable costs of such participation.

    (c) EVALUATION- The Secretary shall evaluate each project conducted pursuant to subsection (a) and shall apply the findings, as appropriate, to agreements negotiated pursuant to subsection (h)(2) of such section 224.

    (d) DEADLINE FOR COMMENCEMENT OF PROJECTS- No pilot project authorized by subsection (a) may be commenced after the expiration of the 5-year period beginning on the date of enactment of this section.

    (e) FUNDING- Expenditures for pilot projects conducted pursuant to subsection (a) may be made from the Federal Disability Insurance Trust Fund and the Old-Age and Survivors Insurance Trust Fund, as determined appropriate by the Secretary.

    (f) EFFECTIVE DATE- This section shall be effective upon enactment.

Subtitle C--Federal Clearinghouse on Death Information

SEC. 5201. FEDERAL CLEARINGHOUSE ON DEATH INFORMATION.

    (a) CLEARINGHOUSE DESIGNATION- The heading for section 205(r) of the Social Security Act is amended to read as follows: ‘Clearinghouse on Death Information’.

    (b) Acquisition of Disclosable Death Information From States-

      (1) Section 205(r)(1)(A) of the Social Security Act is amended by striking ‘to furnish the Secretary periodically with’ and inserting ‘to furnish periodically to the Secretary, for use in carrying out subparagraph (B) and paragraphs (3) and (4),’.

      (2)(A) Notwithstanding clause (ii) of section 6103(d)(4)(B) of the Internal Revenue Code of 1986 (as added by section 13444(a) of the Omnibus Budget Reconciliation Act of 1993 (Public Law 103-66)), in order for a contract requiring a State to furnish the Secretary of Health and Human Services information concerning individuals with respect to whom death certificates (or equivalent documents maintained by the State or any subdivision thereof) have been officially filed with it to meet the requirements of such section 6103(d)(4)(B), such contract shall authorize the Secretary to use such information and to redisclose such information to any Federal agency or any agency of a State or political subdivision in accordance with section 205(r) of the Social Security Act.

      (B) The provisions of subparagraph (A) of this paragraph and, notwithstanding subparagraph (C) of section 6103(d)(4) of the Internal Revenue Code of 1986 (as added by section 13444(a) of the Omnibus Budget Reconciliation Act of 1993 (Public Law 103-66)), the provisions of subparagraphs (A) and (B) of such section 6103(d)(4) shall apply to all States, regardless of whether they were, on July 1, 1993, pursuant to a contract, furnishing the Secretary of Health and Human Services information concerning individuals with respect to whom death certificates (or equivalent documents maintained by the State or any subdivision thereof) have been officially filed with it.

      (C) Subparagraphs (A) and (B) of this paragraph shall take effect at the same time as the amendment made by section 13444(a) of the Omnibus Budget Reconciliation Act of 1993 takes effect.

      (D) For the purpose of applying the special rule contained in section 13444(b)(2) of the Omnibus Budget Reconciliation Act of 1993, the reference in such section to section 6103(d)(4)(B) of the Internal Revenue Code of 1986 shall be deemed to include a reference to subparagraph (A) of this paragraph.

    (c) PAYMENT TO STATES FOR DEATH INFORMATION- Section 205(r)(2) of the Social Security Act is amended--

      (1) by striking ‘the reasonable costs’ and inserting ‘a reasonable amount’; and

      (2) by striking ‘transcribing and transmitting’ and inserting ‘furnishing’.

    (d) Fee for Clearinghouse Information-

      (1) Section 205(r)(3) of the Social Security Act is amended by striking out ‘if’ and all that follows, and inserting ‘, provided that such agency agrees to pay the fees set by the Secretary pursuant to paragraph (8).’.

      (2) Section 205(r)(4) of the Social Security Act is amended--

        (A) by inserting ‘and political subdivisions’ after ‘States’ the first place such term appears;

        (B) by striking ‘the States’ and inserting ‘any State, political subdivision, or combination thereof’; and

        (C) by striking ‘if’ and all that follows and inserting ‘provided such States and political sudivisions agree to pay the fees set by the Secretary pursuant to paragraph (8).’.

      (3) Section 205(r) of the Social Security Act is amended by adding at the end a new paragraph as follows: ‘(8) The Secretary shall establish fees for the disclosure of information pursuant to this subsection. Such fees shall be in amounts sufficient to cover all costs (including indirect costs) associated with the Secretary’s responsibilities under this subsection. Fees collected pursuant to this paragraph shall remain available, without fiscal year limitation, to the Secretary to cover the administrative costs of carrying out this subsection.’.

    (e) TECHNICAL ASSISTANCE- Section 205(r) of the Social Security Act is amended by adding at the end (after the paragraph added by subsection (d)(3)) the following new paragraph:

    ‘(9) The Secretary may provide to any Federal or State agency that provides Federally funded benefits, upon the request of such agency, technical assistance on the effective collection, dissemination, and use of death information available under this subsection for the purpose of ensuring that such benefits are not erroneously paid to deceased individuals.’.

    (f) TECHNICAL AMENDMENT- Section 205(r) of the Social Security Act is amended by adding at the end (after the paragraph added by subsection (e)) the following new paragraph:

    ‘(10) For purposes of this subsection, the term ‘Federally funded benefit’ means any payment funded in whole or in part by the Federal Government.’.

    (g) EFFECTIVE DATE- Except as otherwise provided, the amendments made by this section shall take effect upon their enactment.

Subtitle D--Continuing Disability Reviews

SEC. 5301. CONTINUING DISABILITY REVIEWS.

    Section 201(g)(1)(A) of the Social Security Act is amended by adding at the end of the paragraph the following sentence: ‘From funds provided pursuant to this subparagraph for the following fiscal years, not less than the following amounts shall be available only for conducting continuing disability reviews and related workloads: for fiscal year 1994, $46 million; for fiscal year 1995, $47,200,000; for fiscal year 1996, $48,500,000; for fiscal year 1997, $49,800,000; for fiscal year 1998, $51,100,000; and for fiscal year 1999, $52,500,000.’.

TITLE VI--DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Subtitle A--Multifamily Property Disposition

SEC. 6001. MULTIFAMILY PROPERTY DISPOSITION.

    (a) FINDINGS- The Congress finds that--

      (1) the portfolio of multifamily housing project mortgages insured by the FHA is severely troubled and at risk of default, requiring the Secretary to increase loss reserves from $5,500,000,000 in 1991 to $11,900,000,000 in 1992 to cover estimated future losses;

      (2) the inventory of multifamily housing projects owned by the Secretary has more than tripled since 1989, and, by the end of 1993, may exceed 75,000 units;

      (3) the cost to the Federal Government of owning and maintaining multifamily housing projects escalated to approximately $250,000,000 in fiscal year 1992;

      (4) the inventory of multifamily housing projects subject to mortgages held by the Secretary has increased dramatically, to more than 2,400 mortgages, and approximately half of these mortgages, with over 230,000 units, are delinquent;

      (5) the inventory of insured and formerly insured multifamily housing projects is rapidly deteriorating, endangering tenants and neighborhoods;

      (6) over 5 million families today have a critical need for housing that is affordable and habitable; and

      (7) the current statutory framework governing the disposition of multifamily housing projects effectively impedes the Government’s ability to dispose of properties, protect tenants, and ensure that projects are maintained over time.

    (b) MANAGEMENT AND DISPOSITION OF MULTIFAMILY HOUSING PROJECTS- Section 203 of the Housing and Community Development Amendments of 1978 (12 U.S.C. 1701z-11) is amended to read as follows:

‘SEC. 203. MANAGEMENT AND DISPOSITION OF MULTIFAMILY HOUSING PROJECTS.

    ‘(a) GOALS- The Secretary of Housing and Urban Development (hereafter in this section referred to as the ‘Secretary’) shall manage or dispose of multifamily housing projects that are owned by the Secretary or that are subject to a mortgage held by the Secretary in a manner that--

      ‘(1) is consistent with the National Housing Act and this section;

      ‘(2) will protect the financial interests of the Federal Government; and

      ‘(3) will, in the least costly fashion among reasonable available alternatives, further the goals of--

        ‘(A) preserving housing so that it can remain available to and affordable by low-income persons;

        ‘(B) preserving and revitalizing residential neighborhoods;

        ‘(C) maintaining existing housing stock in a decent, safe, and sanitary condition;

        ‘(D) minimizing the involuntary displacement of tenants;

        ‘(E) maintaining housing for the purpose of providing rental housing, cooperative housing, and homeownership opportunities for low-income persons; and

        ‘(F) minimizing the need to demolish multifamily housing projects.

    The Secretary, in determining the manner in which a project is to be managed or disposed of, may balance competing goals relating to individual projects in a manner that will further the purposes of this section.

    ‘(b) DEFINITIONS- For purposes of this section, the following definitions shall apply:

      ‘(1) MULTIFAMILY HOUSING PROJECT- The term ‘multifamily housing project’ means any multifamily rental housing project which is, or prior to acquisition by the Secretary was, assisted or insured under the National Housing Act, or was subject to a loan under section 202 of the Housing Act of 1959.

      ‘(2) SUBSIDIZED PROJECT- The term ‘subsidized project’ means a multifamily housing project receiving any of the following types of assistance immediately prior to the assignment of the mortgage on such project to, or the acquisition of such mortgage by, the Secretary:

        ‘(A) Below market interest rate mortgage insurance under the proviso of section 221(d)(5) of the National Housing Act.

        ‘(B) Interest reduction payments made in connection with mortgages insured under section 236 of the National Housing Act.

        ‘(C) Direct loans made under section 202 of the Housing Act of 1959.

        ‘(D) Assistance in the form of--

          ‘(i) rent supplement payments under section 101 of the Housing and Urban Development Act of 1965;

          ‘(ii) housing assistance payments made under section 23 of the United States Housing Act of 1937 (as in effect before January 1, 1975); or

          ‘(iii) housing assistance payments made under section 8 of the United States Housing Act of 1937 (excluding payments made for tenant-based assistance under section 8),

        if (except for purposes of section 183(c) of the Housing and Community Development Act of 1987) such assistance payments are made to more than 50 percent of the units in the project.

      ‘(3) FORMERLY SUBSIDIZED PROJECT- The term ‘formerly subsidized project’ means a multifamily housing project owned by the Secretary that was a subsidized project immediately prior to its acquisition by the Secretary.

      ‘(4) UNSUBSIDIZED PROJECT- The term ‘unsubsidized project’ means a multifamily housing project owned by the Secretary that is not a subsidized project or a formerly subsidized project.

    ‘(c) Management or Disposition of Property-

      ‘(1) DISPOSITION TO PURCHASERS- The Secretary is authorized, in carrying out this section, to dispose of a multifamily housing project owned by the Secretary on a negotiated, competitive bid, or other basis, on such terms as the Secretary deems appropriate considering the low-income character of the project and the requirements of subsection (a), to a purchaser determined by the Secretary to be capable of--

        ‘(A) satisfying the conditions of the disposition;

        ‘(B) implementing a sound financial and physical management program that is designed to enable the project to meet anticipated operating and repair expenses to ensure that the project will remain in decent, safe, and sanitary condition;

        ‘(C) responding to the needs of the tenants and working cooperatively with tenant organizations;

        ‘(D) providing adequate organizational staff and financial resources to the project; and

        ‘(E) meeting such other requirements as the Secretary may determine.

      ‘(2) CONTRACTING FOR MANAGEMENT SERVICES- The Secretary is authorized, in carrying out this section--

        ‘(A) to contract for management services for a multifamily housing project that is owned by the Secretary (or for which the Secretary is mortgagee in possession), on a negotiated, competitive bid, or other basis at a price determined by the Secretary to be reasonable, with a manager the Secretary has determined is capable of--

          ‘(i) implementing a sound financial and physical management program that is designed to enable the project to meet anticipated operating and maintenance expenses to ensure that the project will remain in decent, safe, and sanitary condition;

          ‘(ii) responding to the needs of the tenants and working cooperatively with tenant organizations;

          ‘(iii) providing adequate organizational, staff, and other resources to implement a management program determined by the Secretary; and

          ‘(iv) meeting such other requirements as the Secretary may determine; and

        ‘(B) to require the owner of a multifamily housing project that is subject to a mortgage held by the Secretary to contract for management services for the project in the manner described in subparagraph (A).

    ‘(d) MAINTENANCE OF HOUSING PROJECTS-

      ‘(1) HOUSING PROJECTS OWNED BY THE SECRETARY- In the case of multifamily housing projects that are owned by the Secretary (or for which the Secretary is mortgagee in possession), the Secretary shall--

        ‘(A) to the greatest extent possible, maintain all such occupied projects in a decent, safe, and sanitary condition;

        ‘(B) to the greatest extent possible, maintain full occupancy in all such projects; and

        ‘(C) maintain all such projects for purposes of providing rental or cooperative housing.

      ‘(2) HOUSING PROJECTS SUBJECT TO A MORTGAGE HELD BY THE SECRETARY- In the case of any multifamily housing project that is subject to a mortgage held by the Secretary, the Secretary shall require the owner of the project to carry out the requirements of paragraph (1).

    ‘(e) REQUIRED ASSISTANCE- In carrying out the goal specified in subsection (a)(3)(A), the Secretary shall take not less than one of the following actions:

      ‘(1) CONTRACT WITH OWNER- Enter into contracts under section 8 of the United States Housing Act of 1937, to the extent budget authority is available, with owners of multifamily housing projects that are acquired by a purchaser other than the Secretary at foreclosure or after sale by the Secretary.

        ‘(A) SUBSIDIZED OR FORMERLY SUBSIDIZED PROJECTS RECEIVING CERTAIN ASSISTANCE- In the case of a subsidized or formerly subsidized project referred to in subparagraphs (A) through (C) of subsection (b)(2)--

          ‘(i) the contract shall be sufficient to assist at least all units covered by an assistance contract under any of the authorities referred to in subsection (b)(2)(D) before acquisition, unless the Secretary acts pursuant to the provisions of subparagraph (C);

          ‘(ii) in the case of units requiring project-based rental assistance pursuant to this paragraph that are occupied by families who are not eligible for assistance under section 8, a contract under this subparagraph shall also provide that when a vacancy occurs, the owner shall lease the available unit to a family eligible for assistance under section 8; and

          ‘(iii) the Secretary shall take actions to ensure the availability and affordability, as defined in paragraph (3)(B), for the remaining useful life of the project, as defined by the Secretary, of any unit located in any project referred to in subparagraphs (A) through (C) of subsection (b)(2) that does not otherwise receive project-based assistance under this subparagraph. To carry out this clause, the Secretary may require purchasers to establish use or rent restrictions maintaining affordability, as defined in paragraph (3)(B).

        ‘(B) SUBSIDIZED OR FORMERLY SUBSIDIZED PROJECTS RECEIVING OTHER ASSISTANCE- In the case of a subsidized or formerly subsidized project referred to in subsection (b)(2)(D)--

          ‘(i) the contract shall be sufficient to assist at least all units in the project that are covered, or were covered immediately before foreclosure on or acquisition of the project by the Secretary, by an assistance contract under any of the authorities referred to in such subsection, unless the Secretary acts pursuant to provisions of subparagraph (C); and

          ‘(ii) in the case of units requiring project-based rental assistance pursuant to this paragraph that are occupied by families who are not eligible for assistance under section 8, a contract under this paragraph shall also provide that when a vacancy occurs, the owner shall lease the available unit to a family eligible for assistance under section 8.

        ‘(C) EXCEPTIONS TO SUBPARAGRAPHS (A) AND (B)- In lieu of providing project-based assistance under subparagraph (A) or (B), the Secretary may require certain units in unsubsidized projects to contain use restrictions providing that such units will be available to and affordable by very low-income families for the remaining useful life of the project, as defined by the Secretary, if--

          ‘(i) the Secretary matches any reduction in units otherwise required to be assisted with project-based assistance under subparagraph (A) or (B) with at least an equivalent increase in units made affordable to very low-income persons within unsubsidized projects;

          ‘(ii) low-income tenants residing in units otherwise requiring project-based assistance under subparagrph (A) or (B) upon disposition receive section 8 tenant-based assistance; and

          ‘(iii) the units described in clause (i) are located within the same market area.

        ‘(D) CONTRACT REQUIREMENTS FOR UNSUBSIDIZED PROJECTS- Notwithstanding actions taken pursuant to subparagraph (C), in unsubsidized projects, the contract shall at least be sufficient to provide--

          ‘(i) project-based rental assistance for all units that are covered or were covered immediately before foreclosure or acquisition by an assistance contract under--

            ‘(I) section 8(b)(2) of the United States Housing Act of 1937 (as such section existed before October 1, 1983) (new construction and substantial rehabilitation); section 8(b) of such Act (property disposition); section 8(d)(2) of such Act (project-based certificates); section 8(e)(2) of such Act (moderate rehabilitation); section 23 of such Act (as in effect before January 1, 1975); or section 101 of the Housing and Urban Development Act of 1965 (rent supplements); or

            ‘(II) section 8 of the United States Housing Act of 1937, following conversion from section 101 of the Housing and Urban Development Act of 1965; and

          ‘(ii) tenant-based assistance under section 8 of the United States Housing Act of 1937 for tenants currently residing in units that were covered by an assistance contract under the Loan Management Set-Aside program under section 8(b) of the United States Housing Act of 1937 immediately before foreclosure or acquisition of the project by the Secretary.

      ‘(2) ANNUAL CONTRIBUTION CONTRACTS- In the case of multifamily housing projects that are acquired by a purchaser other than the Secretary at foreclosure or after sale by the Secretary, enter into annual contribution contracts with public housing agencies to provide tenant-based assistance under section 8 of the United States Housing Act of 1937 to all low-income families who are eligible for such assistance on the date that the project is acquired by the purchaser. The Secretary shall take action under this paragraph only after making a determination that there is available in the area an adequate supply of habitable affordable housing for low-income families. Actions taken pursuant to this paragraph may be taken in connection with not more than 10 percent of the aggregate number of units in subsidized or formerly subsidized projects disposed of by the Secretary annually.

      ‘(3) OTHER ASSISTANCE-

        ‘(A) IN GENERAL- In accordance with the authority provided under the National Housing Act, reduce the selling price, apply use or rent restrictions on certain units, or provide other financial assistance to the owners of multifamily housing projects that are acquired by a purchaser other than the Secretary at foreclosure, or after sale by the Secretary, on terms which will ensure that--

          ‘(i) at least those units otherwise required to receive project-based section 8 assistance pursuant to subparagraphs (A), (B), or (D) of paragraph (1) are available to and affordable by low-income persons; and

          ‘(ii) for the remaining useful life of the project, as defined by the Secretary, there shall be in force such use or rent restrictions as the Secretary may prescribe.

        ‘(B) DEFINITION- A unit shall be considered affordable under this paragraph if--

          ‘(i) for very low-income tenants, the rent for such unit does not exceed 30 percent of 50 percent of the area median income, as determined by the Secretary, with adjustments for family size; and

          ‘(ii) for low-income tenants other than very low-income tenants, the rent for such unit does not exceed 30 percent of 80 percent of the area median income, as determined by the Secretary, with adjustments for family size.

        ‘(C) VERY LOW-INCOME TENANTS- The Secretary shall provide assistance under section 8 of the United States Housing Act of 1937 to any very low-income tenant currently residing in a unit otherwise required to receive project-based assistance under section 8, pursuant to subparagraph (A), (B), or (D) of paragraph (1), if the rents charged such tenants as a result of actions taken pursuant to this paragraph exceed the amount payable as rent under section 3(a) of the United States Housing Act of 1937.

      ‘(4) TRANSFER FOR USE UNDER OTHER PROGRAMS OF THE SECRETARY-

        ‘(A) IN GENERAL- Enter into an agreement providing for the transfer of a multifamily housing project--

          ‘(i) to a public housing agency for use of the project as public housing; or

          ‘(ii) to an owner or another appropriate entity for use of the project under section 202 of the Housing Act of 1959 or under section 811 of the Cranston-Gonzalez National Affordable Housing Act.

        ‘(B) REQUIREMENTS FOR AGREEMENT- The agreement described in subparagraph (A) shall--

          ‘(i) contain such terms, conditions, and limitations as the Secretary determines appropriate, including requirements to assure use of the project under the public housing, section 202, and section 811 programs; and

          ‘(ii) ensure that no current tenant will be displaced as a result of actions taken under this paragraph.

    ‘(f) OTHER ASSISTANCE- In addition to the actions authorized by subsection (e), the Secretary may take any of the following actions:

      ‘(1) SHORT-TERM LOANS- Provide short-term loans to facilitate the sale of multifamily housing projects to nonprofit organizations or to public agencies if--

        ‘(A) authority for such loans is provided in advance in an appropriations Act;

        ‘(B) such loans are for a term of not more than 5 years;

        ‘(C) the Secretary is presented with satisfactory documentation, evidencing a commitment of permanent financing to replace such short-term loan, from a lender who meets standards set forth by the Secretary; and

        ‘(D) the terms of such loans are consistent with prevailing practices in the marketplace or the provision of such loans results in no cost to the Government, as defined in section 502 of the Congressional Budget Act.

      ‘(2) TENANT-BASED ASSISTANCE- In connection with projects referred to in subsection (e), make available tenant-based assistance under section 8 of the United States Housing Act of 1937 to very low-income families (as defined in section 3(b)(2) of the United States Housing Act of 1937) that do not otherwise qualify for project-based assistance.

      ‘(3) Alternative uses-

        ‘(A) IN GENERAL- Notwithstanding any other provision of law, and subject to notice to and comment from existing tenants, allow not more than--

          ‘(i) 5 percent of the total number of units in multifamily housing projects that are disposed of by the Secretary during any 1-year period to be made available for uses other than rental or cooperative uses, including low-income homeownership opportunities, or in any particular project, community space, office space for tenant or housing-related service providers or security programs, or small business uses, if such uses benefit the tenants of the project; and

          ‘(ii) 5 percent of the total number of units in multifamily housing projects that are disposed of by the Secretary during any 1-year period to be used in any manner, if the Secretary and the unit of general local government or area-wide governing body determine that such use will further fair housing, community development, or neighborhood revitalization goals.

        ‘(B) DISPLACEMENT PROTECTION- The Secretary shall make available tenant-based rental assistance under section 8 of the United States Housing Act of 1937 to any tenant displaced as a result of actions taken by the Secretary pursuant to subparagraph (A), and the Secretary shall take such actions as the Secretary determines necessary to ensure the successful use of any tenant-based assistance.

    ‘(g) AUTHORIZATION OF USE OR RENT RESTRICTIONS IN UNSUBSIDIZED PROJECTS- In carrying out the goals specified in subsection (a), the Secretary may require certain units in unsubsidized projects to contain use or rent restrictions providing that such units will be available to and affordable by very low-income persons for the remaining useful life of the property, as defined by the Secretary.

    ‘(h) Contract Requirements-

      ‘(1) Contract term-

        ‘(A) IN GENERAL- Contracts for project-based rental assistance under section 8 of the United States Housing Act of 1937 provided pursuant to this section shall be for a term of not more than 15 years; and

        ‘(B) CONTRACT TERM OF LESS THAN 15 YEARS- Notwithstanding subparagraph (A), to the extent that units receive project-based assistance for a contract term of less than 15 years, the Secretary shall require that rents charged to tenants for such units not exceed the amount payable for rent under section 3(a) of the United States Housing Act of 1937 for a period of at least 15 years.

      ‘(2) Contract rent-

        ‘(A) IN GENERAL- The Secretary shall set contract rents for section 8 project-based rental contracts issued under this section at levels that, in conjunction with other resources available to the purchaser, provide for the necessary costs of rehabilitation of such project and do not exceed the percentage of the existing housing fair market rents for the area (as determined by the Secretary under section 8(c) of the United States Housing Act of 1937) as the Secretary may prescribe.

        ‘(B) UP-FRONT GRANTS AND LOANS- If such an approach is determined to be more cost-effective, the Secretary may utilize the budget authority provided for project-based section 8 contracts issued under this section to--

          ‘(i) provide project-based section 8 rental assistance; and

          ‘(ii)(I) provide up-front grants for the necessary cost of rehabilitation; or

          ‘(II) pay for any cost to the Government, as defined in section 502 of the Congressional Budget Act, for loans made pursuant to subsection (f)(1).

    ‘(i) Disposition Plan-

      ‘(1) IN GENERAL- Prior to the sale of a multifamily housing project that is owned by the Secretary, the Secretary shall develop a disposition plan for the project that specifies the minimum terms and conditions of the Secretary for disposition of the project, the initial sales price that is acceptable to the Secretary, and the assistance that the Secretary plans to make available to a prospective purchaser in accordance with this section. The initial sales price shall reflect the intended use of the property after sale.

      ‘(2) Community and tenant input into disposition plans and sales-

        ‘(A) IN GENERAL- In carrying out this section, the Secretary shall develop procedures to obtain appropriate and timely input into disposition plans from officials of the unit of general local government affected, the community in which the project is situated, and the tenants of the project.

      ‘(B) TENANT ORGANIZATIONS- The Secretary shall develop procedures to facilitate, where feasible and appropriate, the sale of multifamily housing projects to existing tenant organizations with demonstrated capacity or to public or nonprofit entities which represent or are affiliated with existing tenant organizations.

      ‘(C) TECHNICAL ASSISTANCE-

          ‘(i) USE OF FUNDS- To carry out the procedures developed under subparagraphs (A) and (B), the Secretary is authorized to provide technical assistance, directly or indirectly, and to use amounts appropriated for technical assistance under the Emergency Low Income Housing Preservation Act of 1987, the Low-Income Housing Preservation and Resident Homeownership Act of 1990, subtitle B of title IV of the Cranston-Gonzalez National Affordable Housing Act, or under this section for the provision of technical assistance under this section.

          ‘(ii) SOURCE OF FUNDS- Recipients of technical assistance funding under the Emergency Low Income Housing Preservation Act of 1987, the Low-Income Housing Preservation and Resident Homeownership Act of 1990, subtitle B of title IV of the Cranston-Gonzalez National Affordable Housing Act, or under this section shall be permitted to provide technical assistance to the extent of such funding under any of such programs or under this section, notwithstanding the source of funding.

    ‘(j) RIGHT OF FIRST REFUSAL-

      ‘(1) PROCEDURE-

        ‘(A) NOTIFICATION BY SECRETARY OF THE ACQUISITION OF TITLE- Not later than 30 days after acquiring title to a project, the Secretary shall notify the unit of general local government and the State agency or agencies designated by the Governor of the acquisition of such title.

        ‘(B) EXPRESSION OF INTEREST- Not later than 45 days after receiving notification from the Secretary under subparagraph (A), the unit of general local government or designated State agency may submit to the Secretary a preliminary expression of interest in the project. The Secretary may take such actions as may be necessary to require the unit of general local government or designated State agency to substantiate such interest.

        ‘(C) TIMELY EXPRESSION OF INTEREST- If the unit of general local government or designated State agency has expressed interest in the project before the expiration of the 45-day period referred to in subparagraph (B), and has substantiated such interest if requested, the Secretary, upon approval of a disposition plan for a project, shall notify the unit of general local government and designated State agency of the terms and conditions of the disposition plan and give the unit of general local government or designated State agency not more than 90 days after the date of such notification to make an offer to purchase the project.

        ‘(D) NO TIMELY EXPRESSION OF INTEREST- If the unit of general local government or designated State agency does not express interest before the expiration of the 45-day period referred to in subparagraph (B), or does not substantiate an expressed interest if requested, the Secretary, upon approval of a disposition plan, may offer the project for sale to any interested person or entity.

      ‘(2) ACCEPTANCE OF OFFERS- Where the Secretary has given the unit of general local government or designated State agency 90 days to make an offer to purchase the project, the Secretary shall accept an offer that complies with the terms and conditions of the disposition plan. The Secretary may accept an offer that does not comply with the terms and conditions of the disposition plan if the Secretary determines that the offer will further the goals specified in subsection (a) by actions that include extension of the duration of low-income affordability restrictions or otherwise restructuring the transaction in a manner that enhances the long-term affordability for low-income persons. The Secretary shall, in particular, have discretion to reduce the initial sales price in exchange for the extension of low-income affordability restrictions beyond the period of assistance contemplated by the attachment of assistance pursuant to subsection (e). If the Secretary and the unit of general local government or designated State agency cannot reach agreement within 90 days, the Secretary may offer the project for sale to the general public.

      ‘(3) PURCHASE BY UNIT OF GENERAL LOCAL GOVERNMENT OR DESIGNATED STATE AGENCY- Notwithstanding any other provision of law, a unit of general local government (including a public housing agency) or designated State agency may purchase a subsidized or formerly subsidized project in accordance with this subsection.

      ‘(4) APPLICABILITY- This subsection shall apply to projects that are acquired on or after the effective date of this subsection. With respect to projects acquired before such effective date, the Secretary may apply--

        ‘(A) the requirements of paragraphs (2) and (3) of section 203(e) as such paragraphs existed immediately before the effective date of this subsection; or

        ‘(B) the requirements of paragraphs (1) and (2) of this subsection, if the Secretary gives the unit of general local government or designated State agency--

          ‘(i) 45 days to express interest in the project; and

          ‘(ii) if the unit of general local government or designated State agency expresses interest in the project before the expiration of the 45-day period, and substantiates such interest if requested, 90 days from the date of notification of the terms and conditions of the disposition plan to make an offer to purchase the project.

    ‘(k) DISPLACEMENT OF TENANTS AND RELOCATION ASSISTANCE-

      ‘(1) IN GENERAL- Whenever tenants will be displaced as a result of the disposition of, or repairs to, a multifamily housing project that is owned by the Secretary (or for which the Secretary is mortgagee in possession), the Secretary shall identify tenants who will be displaced, and shall notify all such tenants of their pending displacement and of any relocation assistance which may be available. In the case of a multifamily housing project that is not owned by the Secretary (and for which the Secretary is not mortgagee in possession), the Secretary shall require the owner of the project to carry out the requirements of this paragraph.

      ‘(2) RIGHTS OF DISPLACED TENANTS- The Secretary shall assure for any such tenant (who continues to meet applicable qualification standards) the right--

        ‘(A) to return, whenever possible, to a repaired unit;

        ‘(B) to occupy a unit in another multifamily housing project owned by the Secretary;

        ‘(C) to obtain housing assistance under the United States Housing Act of 1937; or

        ‘(D) to receive any other available relocation assistance as the Secretary determines to be appropriate.

    ‘(l) MORTGAGE AND PROJECT SALES-

      ‘(1) IN GENERAL- The Secretary may not approve the sale of any loan or mortgage held by the Secretary (including any loan or mortgage owned by the Government National Mortgage Association) on any subsidized project or formerly subsidized project, unless such sale is made as part of a transaction that will ensure that such project will continue to operate at least until the maturity date of such loan or mortgage, in a manner that will provide rental housing on terms at least as advantageous to existing and future tenants as the terms required by the program under which the loan or mortgage was made or insured prior to the assignment of the loan or mortgage on such project to the Secretary.

      ‘(2) SALE OF CERTAIN PROJECTS- The Secretary may not approve the sale of any subsidized project--

        ‘(A) that is subject to a mortgage held by the Secretary; or

        ‘(B) if the sale transaction involves the provision of any additional subsidy funds by the Secretary or a recasting of the mortgage, unless such sale is made as part of a transaction that will ensure that such project will continue to operate at least until the maturity date of the loan or mortgage, in a manner that will provide rental housing on terms at least as advantageous to existing and future tenants as the terms required by the program under which the loan or mortgage was made or insured prior to the proposed sale of the project.

      ‘(3) MORTGAGE SALES TO STATE AND LOCAL GOVERNMENTS- Notwithstanding any provision of law that may require competitive sales or bidding, the Secretary may carry out negotiated sales of subsidized or formerly subsidized mortgages held by the Secretary, without the competitive selection of purchasers or intermediaries, to units of general local government or State agencies, or groups of investors that include at least one such unit of general local government or State agency, if the negotiations are conducted with such agencies, except that--

        ‘(A) the terms of any such sale shall include the agreement of the purchasing agency or unit of local government or State agency to act as mortgagee or owner of a beneficial interest in such mortgages, in a manner consistent with maintaining the projects that are subject to such mortgages for occupancy by the general tenant group intended to be served by the applicable mortgage insurance program, including, to the extent the Secretary determines appropriate, authorizing such unit of local government or State agency to enforce the provisions of any regulatory agreement or other program requirements applicable to the related projects; and

        ‘(B) the sales prices for such mortgages shall be, in the determination of the Secretary, the best prices that may be obtained for such mortgages from a unit of general local government or State agency, consistent with the expectation and intention that the projects financed will be retained for use under the applicable mortgage insurance program for the life of the initial mortgage insurance contract.

      ‘(4) SALE OF MORTGAGES COVERING UNSUBSIDIZED PROJECTS- Notwithstanding any other provision of law, the Secretary may sell mortgages held on unsubsidized projects on such terms and conditions as the Secretary may prescribe.

    ‘(m) REPORT TO CONGRESS- Not later than June 1 of each year, the Secretary shall submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Banking, Finance and Urban Affairs of the House of Representatives, a report describing the status of multifamily housing projects owned by or subject to mortgages held by the Secretary, which report shall include--

      ‘(1) the name, address, and size of each project;

      ‘(2) the nature and date of assignment;

      ‘(3) the status of the mortgage;

      ‘(4) the physical condition of the project;

      ‘(5) an occupancy profile of the project, including the income, family size, and race of current residents as well as the rents paid by such residents;

      ‘(6) the proportion of units in a project that are vacant;

      ‘(7) the date on which the Secretary became mortgagee in possession;

      ‘(8) the date and conditions of any foreclosure sale;

      ‘(9) the date of acquisition by the Secretary;

      ‘(10) the date and conditions of any property disposition sale;

      ‘(11) a description of actions undertaken pursuant to this section, including--

        ‘(A) a comparison of results between actions taken after enactment of the Housing and Community Development Act of 1993 and actions taken in years prior to such enactment;

        ‘(B) a description of any impediments to the disposition or management of multifamily housing projects, together with a recommendation of proposed legislative or regulatory changes designed to ameliorate such impediments;

        ‘(C) a description of actions taken to restructure or commence foreclosure on delinquent multifamily mortgages held by the Department; and

        ‘(D) a description of actions taken to monitor and prevent the default of multifamily housing mortgages held by the Federal Housing Administration;

      ‘(12) a description of any of the functions performed in connection with this section that are contracted out to public or private entities or to States, including--

        ‘(A) the costs associated with such delegation;

        ‘(B) the implications of contracting out or delegating such functions for current Department field or regional personnel, including anticipated personnel or work load reductions;

        ‘(C) necessary oversight required by Department personnel, including anticipated personnel hours devoted to such oversight;

        ‘(D) a description of any authority granted to such public or private entities or States in conjunction with the functions that have been delegated or contracted out or that are not otherwise available for use by Department personnel; and

        ‘(E) the extent to which such public or private entities or States include tenants of multifamily housing projects in the disposition planning for such projects;

      ‘(13) a description of the activities carried out under subsection (j) during the preceding year; and

      ‘(14) a description and assessment of the rules, guidelines, and practices governing the Department’s management of multifamily housing projects that are owned by the Secretary (or for which the Secretary is mortgagee in possession) as well as the steps that the Secretary has taken or plans to take to improve the management performance of the Department.’.

    (c) EFFECTIVE DATE- The Secretary shall, by notice published in the Federal Register, which shall take effect upon publication, establish such requirements as may be necessary to implement the amendments made by this section. The notice shall invite public comments, and the Secretary shall issue final regulations based on the initial notice, taking into account any public comments received.

Subtitle B--Merger of the Certificate and Voucher Programs

SEC. 6101. MERGER OF CERTIFICATE AND VOUCHER PROGRAMS.

    The United States Housing Act of 1937 is amended as provided in subsections (a) through (d) of this section.

    (a) MERGER OF CERTIFICATE AND VOUCHER PROGRAMS- Section 8(o) is amended to read as follows:

    ‘(o) CERTIFICATE PROGRAM- (1) The Secretary may provide assistance for tenant-based assistance using a payment standard in accordance with this subsection. The payment standard shall be used to determine the monthly assistance which may be paid for any family, as provided in paragraph (2) of this subsection, and shall not exceed the fair market rental established under subsection (c). However, the payment standard for a designated part of the market area may exceed the fair market rental by not more than 20 percent where the Secretary determines that higher market rents in a designated part of the market area justify a higher payment standard. The Secretary may require an agency to submit proposed payment standards to the Secretary for approval.

    ‘(2)(A) For a family receiving tenant-based assistance, where the rent (including the amount allowed for tenant-paid utilities) does not exceed the payment standard, the monthly assistance payment shall be the amount by which the rent exceeds the highest of the following amounts, rounded to the nearest dollar:

      ‘(i) 30 percent of the family’s monthly adjusted income;

      ‘(ii) 10 percent of the family’s monthly income; or

      ‘(iii) if the family is receiving payments for welfare assistance from a public agency and a part of such payments, adjusted in accordance with the family’s actual housing costs, is specifically designated by such agency to meet the family’s housing costs, the portion of such payments which is so designated.

    ‘(B) For a family receiving tenant-based assistance, where the rent (including the amount allowed for tenant-paid utilities) exceeds the payment standard, the monthly assistance payment shall be the amount by which the applicable payment standard exceeds the highest of the following amounts, rounded to the nearest dollar:

      ‘(i) 30 percent of the family’s monthly adjusted income;

      ‘(ii) 10 percent of the family’s monthly income; or

      ‘(iii) if the family is receiving payments for welfare assistance from a public agency and a part of such payments, adjusted in accordance with the family’s actual housing costs, is specifically designated by such agency to meet the family’s housing costs, the portion of such payments which is so designated.

    ‘(C) For a family receiving project-based assistance, the rent the family is required to pay shall be determined in accordance with section 3(a)(1) and the amount of the housing assistance payment shall be determined in accordance with subsection (c)(3).

    ‘(3) At the time a family initially receives tenant-based assistance with respect to any unit, the total amount a family may pay towards rent may not exceed 45 percent of the family’s monthly adjusted income.

    ‘(4) At the time a family initially receives assistance under the certificate program, a family shall qualify as--

      ‘(A) a very low-income family;

      ‘(B) a family previously assisted under this Act; or

      ‘(C) a low-income family that meets eligibility criteria specified by the Secretary.

    ‘(5) Reviews of family income shall be made at least annually.

    ‘(6)(A) In selecting families to be assisted, preference shall be given to families which, at the time they are seeking assistance, (i) occupy substandard housing (including families that are homeless or living in a shelter for homeless families), (ii) are involuntarily displaced, or (iii) are paying more than 50 percent of family income for rent; except that any family otherwise eligible for assistance under this section may not be denied preference for tenant-based assistance (or delayed or otherwise adversely affected in the provision of such assistance) solely because the family resides in public housing.

    ‘(B) A public housing agency may provide for circumstances in which families who do not qualify for any preference established in subparagraph (A) are provided assistance under this subsection before families who do qualify for such preference. However, not more than 10 percent in the case of tenant-based assistance and not more than 30 percent in the case of project-based assistance (or such higher percentage, in either case, determined by the Secretary to be necessary) of the families who initially receive assistance in any 1-year period may be families who do not qualify for such preference. The public housing agency shall, in implementing the preceding sentence, establish a system of preferences in writing and after public hearing to respond to local housing needs and priorities which may include--

      ‘(i) assisting very low-income families who either reside in transitional housing assisted under title IV of the Stewart B. McKinney Homeless Assistance Act, or participate in a program designed to provide public assistance recipients with greater access to employment and educational opportunities;

      ‘(ii) assisting families identified by local public agencies involved in providing for the welfare of children as having a lack of adequate housing that is a primary factor in the imminent placement of a child in foster care, or in preventing the discharge of a child from foster care and reunification with his or her family;

      ‘(iii) assisting youth, upon discharge from foster care, in cases in which return to the family or extended family or adoption is not available;

      ‘(iv) assisting veterans who will use the assistance for a dwelling unit designed for the handicapped, and upon discharge or eligibility for discharge from a hospital or nursing home, have a physical disability which, because of the configuration of their homes, prevents them from access to or use of their homes; and

      ‘(v) achieving other objectives of national housing policy as affirmed by Congress.

    ‘(C) Any individual or family evicted from housing assisted under the Act by reason of drug-related criminal activity (as defined in subsection (f)(5)) shall not be eligible for a preference under any provision of this subparagraph for 3 years unless the evicted tenant successfully completes a rehabilitation program approved by the Secretary (which shall include waiver for any member of a family of an individual prohibited from tenancy under this clause who the agency determines clearly did not participate in and had no knowledge of such criminal activity or when circumstances leading to eviction no longer exist).

    ‘(7) The Secretary shall require, for any unit, that--

      ‘(A) the public housing agency inspect the unit before any assistance payment may be made to determine that the unit meets housing quality standards for decent, safe, and sanitary housing established by the Secretary for the purpose of this section; and

      ‘(B) the public housing agency make annual or more frequent inspections during the contract term.

    No assistance payment may be made for a dwelling unit which fails to meet such quality standards, unless any such failure is promptly corrected by the owner and the correction is verified by the public housing agency.

    ‘(8) If a family vacates a dwelling unit, no assistance payment may be made for the unit after the month during which the unit was vacated.

    ‘(9) A public housing agency may adjust its payment standard under this subsection where necessary to assure continued affordability for families receiving tenant-based assistance.

    ‘(10) The Secretary may set aside up to 5 percent of the budget authority available under this subsection as an adjustment pool. The Secretary shall use amounts in the adjustment pool for adjustments pursuant to paragraph (9) to ensure continued affordability where the Secretary determines additional assistance for this purpose is necessary, based on documentation submitted by a public housing agency.

    ‘(11)(A) The rent for units assisted under this subsection shall be reasonable in comparison with rents charged for comparable units in the private unassisted market.

    ‘(B) A public housing agency shall, at the request of a family receiving tenant-based assistance under this subsection, assist such family in negotiating a reasonable rent with an owner. A public housing agency shall review the rent for a unit under consideration by the family (and all rent increases for units under lease by the family) to determine whether the rent (or rent increase) requested by an owner is reasonable. If a public housing agency determines that the rent (or rent increase) for a unit is not reasonable, the agency shall disapprove a lease for such unit.

    ‘(C) If units assisted under this subsection are exempt from local rent control while they are so assisted, the rent for such units shall be reasonable in comparison with other units in the market area that are exempt from local rent control.

    ‘(12)(A) A public housing agency may make assistance payments on behalf of a family which utilizes a manufactured home as its principal place of residence. Such payments may be made for the rental of the real property on which there is located a manufactured home which is owned by any such family.

    ‘(B)(i) For assistance pursuant to this paragraph, the rent for the space on which a manufactured home is located and with respect to which assistance payments are to be made includes maintenance and management charges and tenant-paid utilities.

    ‘(ii) The public housing agency shall establish a payment standard for the purpose of determining the monthly assistance which may be paid for any family under this paragraph. The payment standard may not exceed an amount approved or established by the Secretary.

    ‘(iii) The monthly assistance payment for assistance under this paragraph shall be determined in accordance with paragraph (2).

    ‘(13)(A) Where the Secretary enters into an annual contributions contract with a public housing agency pursuant to which the agency will enter into a contract for assistance payments with respect to an existing structure under this subsection, the contract for assistance payments may not be attached to the structure unless the owner agrees to rehabilitate or newly construct the structure other than with assistance under this Act and otherwise complies with the requirements of this section. The public housing agency may approve such attachment for up to 15 percent of the funding available for tenant-based assistance administered by the agency under this section.

    ‘(B) Notwithstanding any other provision of this section, a public housing agency and an applicable State agency may, on a priority basis, attach to structures not more than an additional 15 percent of the assistance only with respect to projects assisted under a State program that permits the owner of the projects to prepay a State-assisted or State-subsidized mortgage on the structure. However, the attachment of assistance under this subparagraph shall be for the purpose of--

      ‘(i) providing incentives to owners to preserve such projects for occupancy by low- and moderate-income families (for the period that assistance under this sentence is available), and

      ‘(ii) to assist low-income families to afford any increases in rent that may be required to induce the owner to maintain occupancy in the project by low- and moderate-income families.

    ‘(C) Any assistance provided to low-income families under subparagraph (B) shall not be considered for purposes of the limitation under paragraph (6) regarding the percentage of families that may receive assistance under this section who do not qualify for preferences under that paragraph.

    ‘(D) In the case of a contract for assistance payments that is attached to a structure under this paragraph, a public housing agency shall enter into a contract with an owner, contingent upon the future availability of appropriations for the purpose of renewing expiring contracts for assistance payments as provided in appropriations Acts, to extend the term of the underlying contract for assistance payments for such period or periods as the Secretary determines to be appropriate to achieve long-term affordability of the housing. The contract shall obligate the owner to have such extensions of the underlying contract for assistance payments accepted by the owner and the owner’s successors in interest. To the extent assistance is used as provided in the second sentence of subparagraph (B), the contract for assistance may, at the option of the public housing agency, have an initial term not exceeding 15 years.

    ‘(E) The Secretary shall annually survey public housing agencies to determine which public housing agencies have, in providing assistance in such year, reached the 15 percent limitations contained in subparagraphs (A) and (B), and shall report to the Congress on the results of the survey.

    ‘(F) For project-based assistance under this paragraph, assistance contracts shall establish rents, and provide for rent adjustments, in accordance with subsection (c).

    ‘(14) A family may lease a unit, other than a public housing unit, from the public housing agency with assistance under this subsection. The Secretary may establish appropriate program requirements for units owned by the public housing agency, including requirements for HUD approval of initial rents, rent adjustments, and administrative fees, taking into account that the agency administering the assistance is also the owner of the assisted unit.

    ‘(15) Subsection (c) shall not apply to tenant-based assistance under this subsection, except that subsections (c)(9) and (c)(10) shall apply.’.

    (b) PORTABILITY- Section 8(r) is amended--

      (1) in each of paragraphs (1) and (3), by striking ‘subsection (b) or’;

      (2) in paragraph (3), by inserting at the end the following new sentence: ‘The Secretary may reserve amounts available for assistance under subsection (o) to compensate public housing agencies which issue certificates to families that move into the jurisdiction of the agency under portability procedures.’; and

      (3) by adding the following new paragraph at the end:

      ‘(5) A family may not receive a certificate from an agency and move to another jurisdiction under the tenant-based assistance program, if the family has moved out of its assisted unit in violation of its lease.’.

    (c) HOMEOWNERSHIP OPTION- Section 8(y) is amended--

      (1) in paragraph (1)(A), by inserting before the semicolon ‘or owns or is acquiring shares in a cooperative’;

      (2) in paragraph (1)(B)(i), by inserting before the semicolon ‘and demonstrates to the public housing agency that it has sufficient resources for homeownership’; and

      (3) by amending paragraph (2)(A) to read as follows:

        ‘(A) DETERMINATION OF AMOUNT OF ASSISTANCE-

          ‘(i) Where the monthly homeownership expenses, as determined in accordance with requirements established by the Secretary, do not exceed the payment standard, the monthly assistance payment shall be the amount by which the homeownership expenses exceed the highest of the following amounts, rounded to the nearest dollar:

            ‘(I) 30 percent of the family’s monthly adjusted income;

            ‘(II) 10 percent of the family’s monthly income; or

            ‘(III) if the family is receiving payments for welfare assistance from a public agency and a part of such payments, adjusted in accordance with the family’s actual housing costs, is specifically designated by such agency to meet the family’s housing costs, the portion of such payments which is so designated.

          ‘(ii) Where the monthly homeownership expenses, as determined in accordance with requirements established by the Secretary, exceed the payment standard, the monthly assistance payment shall be the amount by which the applicable payment standard exceeds the highest of the following amounts, rounded to the nearest dollar:

            ‘(I) 30 percent of the family’s monthly adjusted income;

            ‘(II) 10 percent of the family’s monthly income; or

            ‘(III) if the family is receiving payments for welfare assistance from a public agency and a part of such payments, adjusted in accordance with the family’s actual housing costs, is specifically designated by such agency to meet the family’s housing costs, the portion of such payments which is so designated.’.

    (d) TECHNICAL AND CONFORMING AMENDMENTS TO THE 1937 ACT; DELETION OF OBSOLETE PROVISIONS-

      (1) The second and third sentences of section 8(a) are hereby repealed.

      (2) Section 8(b) is amended by--

        (A) striking ‘RENTAL CERTIFICATES AND OTHER EXISTING HOUSING PROGRAMS- ’ and inserting ‘CERTIFICATES AND OTHER EXISTING HOUSING PROGRAMS- (1)’; and

        (B) striking the second sentence.

      (3) Section 8(c)(3) is amended by striking the subparagraph designation ‘(A)’ and striking all of subparagraph (B).

      (4) The first sentence of section 8(c)(4) is amended by striking ‘or by a family that qualifies to receive’ and all that follows through ‘1990’.

      (5) Sections 8(c) (5) and (7) are hereby repealed.

      (6) Section 8(c)(8) is amended by inserting after ‘section’ the following: ‘(other than a contract under section 8(o)(13))’.

      (7) Section 8(d)(1)(A) is amended--

        (A) by inserting after the subparagraph designation ‘(A)’ the following: ‘except for assistance under subsection (o),’;

        (B) in clause (i) by striking ‘(I)’;

        (C) in clause (i), by striking ‘and (II) 90 percent of such families in the case of assistance not attached to a structure’; and

        (D) in clause (i), by striking ‘except’ and all that follows through the semicolon at the end.

      (8) Section 8(d)(2) is amended by striking the third sentence of subparagraph (A) and all that follows through the end of paragraph (2).

      (9) Section 8(f) is amended by--

        (A) in paragraph (6), striking ‘(d)(2)’ and inserting ‘(o)(13)’; and

        (B) in paragraph (7), striking ‘(b) or’ and inserting before the period the following: ‘and that provides for the eligible family to select suitable housing and to move to other suitable housing’.

      (10) Section 8(j) is hereby repealed.

      (11) Section 8(n) is hereby repealed.

      (12) The first sentence of section 8(q)(1) and sections 8(q)(2)(A)(i) and 8(q)(2)(B) are each amended by striking ‘subsections (b) and (o)’ and inserting ‘this section’.

      (13) Section 18(b)(3) is amended--

        (A) in subparagraph (A)(v), by striking ‘(excluding vouchers under section 8(o))’ each place it appears;

        (B) in subparagraph (B), by striking ‘8(d)(2)(A)’ and inserting ‘8(o)(13)’;

        (C) in subparagraph (B)(ii), by striking ‘(excluding vouchers under section 8(o))’; and

        (D) in subparagraph (C)(i), by striking ‘and vouchers’.

      (14) Section 21(b)(3) is amended--

        (A) in the first sentence, by striking ‘certificate under section 8(b)(1) or a housing voucher under section 8(o)’ and inserting ‘tenant-based assistance under section 8’; and

        (B) by striking the second sentence.

      (15) Section 23(b)(3)(A) is amended by striking ‘Certificate and voucher assistance under section 8 (b) and (o)’ and inserting ‘Tenant-based assistance under section 8’.

    (e) OTHER TECHNICAL AND CONFORMING AMENDMENTS-

      (1) Section 931 of the Cranston-Gonzalez National Affordable Housing Act is amended by striking ‘assistance under the certificate and voucher programs under sections 8 (b) and (o)’ and inserting ‘tenant-based assistance under section 8’.

      (2) Section 861(b)(1)(D) of the Cranston-Gonzalez National Affordable Housing Act is amended by striking ‘certificates or vouchers’ and inserting ‘assistance’.

      (3) Section 183(c)(2) of the Housing and Community Development Act of 1987 is amended by striking ‘section 8(o)’ and inserting ‘section 8’.

      (4) Section 223(a) of the Housing and Community Development Act of 1987 is amended by striking ‘sections 8(b) and 8(o)’ and inserting ‘section 8’.

      (5) The second sentence of section 533(a) of the Housing Act of 1949 is amended by striking ‘assistance payments as provided by section 8(o)’ and inserting ‘tenant-based assistance as provided under section 8’.

    (f) IMPLEMENTATION- The amendments made by this section shall take effect upon the date specified in a regulation or notice published by the Secretary in the Federal Register. The Secretary may provide for the conversion of assistance under the certificate and voucher programs, as they existed before the effective date of the amendments made by this section, to the certificate program established under this section. However, the Secretary may continue to apply the provisions of the United States Housing Act of 1937 and other statutes amended by this section, as they existed immediately before such effective date, to assistance obligated by the Secretary before such effective date for the certificate or voucher program, where necessary for simplification of program administration, avoidance of hardship, or other good cause.

Subtitle C--Streamline HUD

SEC. 6201. HUD STREAMLINING.

    The Secretary of Housing and Urban Development shall carry out the recommendation of the Report of the National Performance Review, issued on September 7, 1993, that the Department streamline its headquarters, regional, and field office structure and consolidate and reduce its size, without regard to the requirements of section 7(p) of the Department of Housing and Urban Development Act.

Subtitle D--Refinance Section 235 Mortgages

SEC. 6301. SECTION 235 MORTGAGE REFINANCING.

    Section 235(r) of the National Housing Act is amended--

      (1) in paragraph (2)(C), by inserting after ‘refinanced’ the following: ‘, plus the costs incurred in connection with the refinancing as described in paragraph (4)(B) to the extent that the amount for those costs is not otherwise included in the interest rate as permitted by subparagraph (E) or paid by the Secretary as authorized by paragraph (4)(B)’;

      (2) in paragraph (4)--

        (A) by inserting after ‘otherwise)’ the following: ‘and the mortgagee with respect to the amount described in paragraph (A)’; and

        (B) in subparagraph (A), by inserting after ‘mortgagor’ the following: ‘and the mortgagee’; and

      (3) by revising paragraph (5) to read as follows:

      ‘(5) The Secretary shall use amounts of budget authority recaptured from assistance payments contracts relating to mortgages that are being refinanced for assistance payments contracts with respect to mortgages insured under this subsection. The Secretary may also make such recaptured amounts available for incentives under paragraph (4)(A) and the costs incurred in connection with the refinancing under paragraph (4)(B). For purposes of subsection (c)(3)(A), the amount of recaptured budget authority that the Secretary commits for assistance payments contracts relating to mortgages insured under this subsection and for amounts paid under paragraph (4) shall not be construed as ‘unused.’.

Subtitle E--Section 8 Rents for New Construction and Rehabilitation Projects

SEC. 6401. SECTION 8 RENTS FOR NEW CONSTRUCTION AND REHABILITATION PROJECTS.

    Notwithstanding any other provision of law, the maximum monthly contract rents for new construction and substantial rehabilitation projects under section 8 of the United States Housing Act of 1937 shall not be adjusted as provided under section 8(c)(2)(A) for 1 year after the date of enactment of this Act.

TITLE VII--DEPARTMENT OF THE INTERIOR

Subtitle A--Improve the Federal Helium Program

SEC. 7001. AMENDMENTS TO HELIUM ACT AMENDMENTS OF 1960.

    (a) Section 4 of the Helium Act Amendments of 1960 (74 Stat. 920, 50 U.S.C. 167b) is amended to insert after ‘lands acquired, leased, or reserved;’ the following: ‘reduce costs and increase operational efficiencies, especially in operations that do not produce revenue; establish and adjust fees charged private industry for storage, transmission, and withdrawal of privately-owned helium from Government storage facilities to compensate fully for all costs incurred;’.

    (b) Section 6 of the Helium Act Amendments of 1960 (74 Stat. 921, 50 U.S.C. 167d) is amended--

      (1) by amending subsection (b) to read:

    ‘(b) The Secretary is authorized to sell helium for Federal, medical, scientific, and commercial uses in such quantities and under such terms and conditions as the Secretary determines. Sales shall be made in quantities and a manner to avoid undue disruption of the usual markets of producers, processors, and consumers of helium and to protect the United States against avoidable loss.’; and

      (2) by amending subsection (c) to read:

    ‘(c) Sales of helium by the Secretary shall be at prices, as established by the Secretary, that are adequate to cover all costs incurred in carrying out the provisions of this Act. Helium shall be sold at prices comparable to helium sold by private industry. An annual review of price comparability shall be made and adjustments shall be made accordingly.’.

SEC. 7002. LONG-TERM COMPREHENSIVE PLAN.

    The Secretary of the Interior shall prepare and develop a long-term, comprehensive plan to (1) cancel the outstanding debt owed to the Treasury by the Department of the Interior related to the Federal helium program; and (2) improve Federal helium program operations over a multi-year period. The plan should analyze various options to accomplish (1) and (2) above, with emphasis on ways to minimize adverse impacts on Federal employment, Federal helium purchasers, and U.S. private sector helium markets. The plan, with the Secretary’s preferred options, shall be presented to the President within 4 months of enactment of this Act. The President may adopt the plan, in whole or in part, and is authorized to cancel the outstanding debt upon a finding that such debt cancellation is in the national interest.

Subtitle B--Improve Minerals Management Service Royalty Collection

SEC. 7101. IMPROVEMENT OF MINERALS MANAGEMENT SERVICE ROYALTY COLLECTION.

    (a) The Secretary of the Interior shall, by fiscal year 1995, direct the Minerals Management Service, Royalty Management Program, to develop and implement (1) an automated business information system to provide to its auditors a lease history that includes reference, royalty, production, financial, compliance history, pricing and valuation, and other information; (2) the optimum methods to identify and resolve anomalies and to verify that royalties are paid correctly; (3) a more efficient and cost-effective royalty collection process by instituting new compliance and enforcement measures, including assessments and penalties for erroneous reporting and underreporting; and (4) such other actions as may be necessary to reduce royalty underpayment and increase revenue to the U.S. Treasury by an estimated total of $28 million by fiscal year 1999.

    (b) The Federal Oil and Gas Royalty Management Act of 1982 (Public Law No. 97-451), 30 U.S.C. 1701 et seq.) is amended by adding a new subsection 111(h) as follows:

‘PENALTY ASSESSMENT FOR SUBSTANTIAL UNDERREPORTING OF ROYALTY’

    ‘SEC. 111. (h)(1) If there is any underreporting of royalty owed on production from any lease issued or administered by the Secretary for the production of oil, gas, coal, any other mineral, or geothermal steam, from any Federal or Indian lands or the Outer Continental Shelf, for any production month, by any person who is responsible for paying royalty, the Secretary may assess a penalty of 10 percent of the amount of that underreporting.

    ‘(2) If there is a substantial underreporting of royalty owed on production from any lease issued or administered by the Secretary for the production of oil, gas, coal, any other mineral, or geothermal steam, from any Federal or Indian lands or the Outer Continental Shelf, for any production month, by any person who is responsible for paying royalty, the Secretary may assess a penalty of 20 percent of the amount of that substantial underreporting.

    ‘(3) For purposes of this section, the term ‘underreporting’ means the difference between the royalty on the value of the production which should have been reported and the royalty on the value of the production which was reported, if the value of the production which should have been reported is greater than the value of the production which was reported. An underreporting constitutes a ‘substantial underreporting’ if such difference exceeds 10 percent of the royalty on the value of the production which should have been reported.

    ‘(4) The Secretary shall not impose the assessment provided in paragraphs (1) or (2) if the person corrects the underreporting before the date the person receives notice from the Secretary that an underreporting may have occurred, or before 90 days after the date of enactment of this section, whichever is later.

    ‘(5) The Secretary shall waive any portion of an assessment provided in paragraphs (1) or (2) attributable to that portion of the underreporting for which the person demonstrates that--

      ‘(i) the person had written authorization from the Secretary to report royalty on the value of the production on the basis on which it was reported, or

      ‘(ii) the person had substantial authority for reporting royalty on the value of the production on the basis on which it was reported, or

      ‘(iii) the person previously had notified the Secretary, in such manner as the Secretary may by rule prescribe, of relevant reasons or facts affecting the royalty treatment of specific production which led to the underreporting, or

      ‘(iv) the person meets any other exception which the Secretary may, by rule, establish.

    ‘(6) All penalties collected under this subsection shall be deposited to the same accounts in the Treasury or paid to the same recipients in the same manner as the royalty with respect to which such penalty is paid.’.

Subtitle C--Phase Out the Mineral Institute Program

SEC. 7201. PHASE OUT OF MINERAL INSTITUTE PROGRAM.

    The Secretary of the Interior, beginning in fiscal year 1995, shall take action to phase out the Mining and Mineral Resources Research Institute Act of 1984, Public Law 98-409, as amended (98 Stat. 1536 through 1541 and 102 Stat. 2339 through 2341, 30 U.S.C. 1221 through 1230). There are hereby authorized to be appropriated under the Act the following amounts: fiscal year 1995--$6.5 million; fiscal year 1996--$5 million; fiscal year 1997--$3 million; and fiscal year 1998--$1.5 million. No further appropriations for this Act are authorized after September 30, 1998.

TITLE VIII--DEPARTMENT OF JUSTICE

SEC. 8001. BUREAU OF PRISONS HEALTH SERVICES USER FEE.

    Chapter 303 of title 18, United States Code, is amended by adding at the end the following new section:

‘SEC. 4047. USER FEE FOR HEALTH SERVICES.

    ‘The Attorney General may assess a nominal fee for health services provided to an inmate. The Attorney General may withdraw, without the inmate’s consent, funds from his or her trust fund account, designated as ‘Funds of Federal Prisoners’ in section 1321(a)(21) of title 31, necessary to pay fees incurred by the inmate for health services. The Attorney General may waive or refund, for good cause and at any time, all or part of the expenses incurred by an inmate through the assessment of fees for health services. An inmate shall not be denied health services treatment because of his or her inability to pay a health services fee. The Attorney General is authorized to promulgate regulations to implement this section.’.

TITLE IX--DEPARTMENT OF LABOR

Subtitle A--Deterrence of Fraud and Abuse in the FECA Program

SEC. 9001. DETERRENCE OF FRAUD AND ABUSE IN FECA PROGRAM.

    (a) Section 8102 of title 5, United States Code, is amended to redesignate subsection (b) as subsection (c), and to add the following new subsection (b):

    ‘(b) An individual convicted of a violation of 18 U.S.C. 1920, as amended, or of any other fraud related to the application for or receipt of benefits under subchapter I or III of chapter 81 of title 5, shall forfeit, as of the date of the conviction, all entitlement to any prospective benefits provided by subchapter I or III for any injury occurring on or before the date of the conviction. Such a forfeiture of benefits shall be in addition to any action the Secretary may take under section 8106 or 8129 of title 5, United States Code.’.

    (b) Section 8116 of title 5, United States Code, is amended by adding the following new subsection (e):

    ‘(e) Notwithstanding any other provision of this title, no benefits under sections 8105 or 8106 of this subchapter shall be paid or provided to any individual during any period during which such individual is confined in a jail, prison, or other penal institution or correctional facility, pursuant to that individual’s conviction of an offense that constituted a felony under applicable law, except where such individual has one or more dependents within the meaning of section 8110 of this subchapter, in which case the Secretary may, during the period of incarceration, pay to such dependents a percentage of the benefits that would have been payable to such individual computed according to the percentages set forth in section 8133(a) (1)-(5) of this subchapter.’.

    (c) Section 8116 of title 5, United States Code, is further amended by adding the following new subsection (f):

    ‘(f) Notwithstanding the provisions of section 552a of this title, or any other provision of Federal or State law, any agency of the United States Government or of any State (or political subdivision thereof) shall make available to the Secretary, upon written request, the names and Social Security account numbers of individuals who are confined in a jail, prison or other penal institution or correctional facility under the jurisdiction of such agency, pursuant to such individuals’ conviction of an offense that constituted a felony under applicable law, which the Secretary may require to carry out the provisions of this subsection.’.

    (d) Section 1920 of title 18, United States Code, is amended to read as follows: ‘Whoever knowingly and willfully falsifies, conceals, or covers up a material fact, or makes a false, fictitious, or fraudulent statement or representation, or makes or uses a false statement or report knowing the same to contain any false, fictitious or fraudulent statement or entry in connection with the application for or receipt of compensation or other benefit or payment under subchapter I or III of chapter 81 of title 5, United States Code, shall be punished by a fine of not more than $250,000, or by imprisonment for not more than five years, or both.’.

    (e) Except as otherwise provided in this section, the amendments made by this section shall be effective on the date of enactment and shall apply to actions taken on or after the date of enactment both with respect to claims filed before the day of enactment and with respect to claims filed after such date.

    (f) The amendments made by subsections (a), (b), and (c) of this section shall be effective on the date of enactment and shall apply to any person convicted or imprisoned on or after the date of enactment.

    (g) The amendment made by subsection (d) of this section shall be effective on the date of enactment and shall apply to any claim, statement, representation, report, or other written document made or submitted in connection with a claim filed under subchapter I or III of chapter 81 of title 5, United States Code.

Subtitle B--Enhancement of Reemployment Programs for Federal Employees Disabled in the Performance of Duty

SEC. 9101. ENHANCEMENT OF REEMPLOYMENT PROGRAMS FOR FEDERAL EMPLOYEES DISABLED IN THE PERFORMANCE OF DUTY.

    (a) Section 8104 of title 5, United States Code, is amended--

      (1) by striking the comma after ‘employment’ and by striking ‘other than employment undertaken pursuant to such rehabilitation’ from subsection (b); and

      (2) by adding the following new subsection (c):

    ‘(c) The Secretary of Labor, as part of the vocational rehabilitation effort, may assist permanently disabled individuals in seeking and/or obtaining employment. The Secretary may reimburse an employer (including a Federal employer), who was not the employer at the time of injury and who agrees to employ a disabled beneficiary, for portions of the salary paid by such employer to the reemployed, disabled beneficiary. Any such sums shall be paid from the Employees’ Compensation Fund.’.

    (b) The Secretary of Labor is authorized to expand the Federal Employees’ Compensation Act Periodic Roll Management Project to all offices of the Office of Workers’ Compensation Program of the Department of Labor.

    (c) The provisions of, and amendments made by, subsections (a) and (b) of this section shall be effective on the date of enactment.

Subtitle C--Wage Determinations--McNamara-O’Hara Service Contract Act and Davis-Bacon Act

SEC. 9201. WAGE DETERMINATIONS.

    (a) The McNamara-O’Hara Service Contract Act, as amended (41 U.S.C. 351 et seq.) is amended by adding at the end the following new section:

    ‘SEC. 11. To more effectively implement wage determination procedures, the Secretary of Labor is authorized to develop and implement an electronic data interchange system to request and obtain wage determinations required under the Act.’.

    (b) The Davis-Bacon Act, as amended (41 U.S.C. 276a et seq.) is amended by adding at the end the following new section:

    ‘SEC. 8. To more effectively implement wage determination procedures, the Secretary of Labor is authorized to develop and implement an electronic data interchange system to request and obtain wage determinations required under the Act.’.

    (c) The amendments made by subsections (a) and (b) of this section shall be effective on the date of enactment.

Subtitle D--Elimination of Filing Requirement for Plan Descriptions, Summary Plan Descriptions, and Descriptions of Material Modifications to a Plan

SEC. 9301. ELIMINATION OF FILING REQUIREMENTS.

    (a) Section 101(b) of the Employee Retirement Income Security Act of 1974 (ERISA) (29 U.S.C. 1021(b)) is amended by striking paragraphs (1), (2) and (3) and by redesignating paragraphs (4) and (5) as paragraphs (1) and (2), respectively.

    (b) Section 102 of ERISA (29 U.S.C. 1022) is amended by striking paragraph (a)(2) and redesignating paragraph (a)(1) as subsection (a).

    (c) Section 104(a)(1) of ERISA (29 U.S.C. 1024(a)(1)) is amended to read as follows:

    ‘SEC. 104. (a)(1) The administrator of any employee benefit plan subject to this part shall file with the Secretary the annual report for a plan year within 210 days after the close of such year (or within such time as may be required by regulations promulgated by the Secretary in order to reduce duplicative filing). The Secretary shall make copies of such annual reports available for inspection in the public document room of the Department of Labor. The administrator shall also furnish to the Secretary, upon request, any documents relating to the employee benefit plan including but not limited to the summary plan description, description of material modifications to the plan, bargaining agreement, trust agreement, contract, or other instrument under which the plan is established or operated.’.

    (d) Section 104(b) of ERISA (29 U.S.C. 1024(b)) is amended by adding at the end the following new paragraph:

      ‘(5) The Secretary shall, upon written request of any participant or beneficiary of a plan for a copy of any documents described in paragraph (4), make a written request to the plan administrator for copies of such documents. The plan administrator shall comply with such request from the Secretary. Upon obtaining such copies from the plan administrator, the Secretary shall provide them to the requesting participant or beneficiary. In making a request under this paragraph to the plan administrator, the Secretary shall not disclose to the plan administrator the identity of the participant or beneficiary. The administrator may make a reasonable charge to cover the cost of furnishing such complete copies consistent with any regulations issued by the Secretary pursuant to paragraph (4). The Secretary may require the participant or beneficiary to reimburse the Secretary for such charges before the participant receives the requested copies.’.

    (e) Section 106(a) of ERISA (29 U.S.C. 1026(a)) is amended by striking ‘descriptions,’.

    (f) Section 107 of ERISA (29 U.S.C. 1027) is amended by striking ‘description or’.

    (g) Section 108 of ERISA (29 U.S.C. 1028) is amended by striking ‘(B) after publishing or filing the plan description, annual reports,’ and inserting ‘(B) after publishing the plan description, or after publishing or filing the annual reports,’.

    (h) Section 109(b) of ERISA (29 U.S.C. 1029(b)) is amended to read as follows:

    ‘(b) The financial statement and opinion required to be prepared by an independent qualified public accountant pursuant to section 103(a)(3)(A) and the actuarial statement required to be prepared by an enrolled actuary pursuant to section 103(a)(4)(A) shall not be required to be submitted on forms.’.

    (i) Section 502(c) of ERISA is amended by adding at the end the following new paragraph:

      ‘(4) The Secretary may assess a civil penalty against any plan administrator of up to $100 per day from the date of such plan administrator’s failure or refusal to comply with a request for documents which such administrator is required to furnish to the Secretary (unless such failure or refusal results from matters reasonably beyond the control of the administrator) pursuant to section 104(b)(5) by mailing the material requested to the address provided by the Secretary within 30 days after such request.’.

    (j) EFFECTIVE DATE- The provisions of this section shall take effect on the date of enactment of this Act.

TITLE X--DEPARTMENT OF STATE/UNITED STATES INFORMATION AGENCY

SEC. 10001. REDUCTION OF MISSION OPERATING COSTS.

    The Secretary of State shall take action to reduce costs of providing marine guard and other security at diplomatic missions overseas by a total of $5,700,000 by the end of fiscal year 1999.

SEC. 10002. IMPROVEMENT OF EFFICIENCY OF USIA PUBLIC DIPLOMACY ACTIVITIES.

    The Director of the United States Information Agency (USIA) shall take action to improve the efficiency of USIA’s public diplomacy activities and save a total of $15,000,000 by the end of fiscal year 1999.

TITLE XI--DEPARTMENT OF TRANSPORTATION

Subtitle A--Authority to Charge Tuition for Attendance at the U.S. Merchant Marine Academy

SEC. 11001. TUITION FOR U.S. MERCHANT MARINE ACADEMY.

    Section 1303(d) of the Merchant Marine Act, 1936 (46 App. U.S.C. 1295b(d)), is amended to read as follows:

    ‘(d)(1) Beginning with the class of individuals first entering the Academy in the 1995-1996 academic year, the Secretary shall impose a system of tuition and fees on individuals attending the Academy that shall, in total, equal an amount that is up to one-half the total operating costs of the Academy during the preceding fiscal year. The tuition and fees paid by the Academy’s total cadet enrollment shall be retained by the Secretary to assist in meeting the Academy’s operating expenses.

    ‘(2) Beginning with the class of individuals first entering the Academy in the 1995-1996 academic year, the Secretary is authorized to impose reasonable fees on any cadet at the Academy for all required uniforms and textbooks. The Secretary shall provide to any individual first entering the Academy before the 1995-1996 academic year all required uniforms and textbooks.

    ‘(3) The Secretary shall provide to any cadet at the Academy allowances for transportation (including reimbursement of traveling expenses) while traveling under orders as a cadet of the Academy.’.

Subtitle B--Reform of the Essential Air Service Program

SEC. 11101. REFORM OF ESSENTIAL AIR SERVICE PROGRAM.

    Section 419 of the Federal Aviation Act of 1958 (49 App. U.S.C. 1389) is amended by--

      (1) revising paragraph (a)(2) to read as follows:

      ‘(2) RESTRICTIONS ON QUALIFICATIONS AS AN ELIGIBLE POINT- To qualify as an eligible point in the 48 contiguous states, Hawaii, and Puerto Rico for purposes of fiscal year 1995 and thereafter, a point described in paragraph (1) must not require a rate of subsidy per passenger in excess of $200 and may not be located fewer than 70 highway miles from the nearest hub airport or small hub airport;’ and

      (2) revising paragraph (l)(2) to read as follows:

      ‘(2) AMOUNTS AVAILABLE- There shall be available to the Secretary from the Airport and Airway Trust Fund to incur obligations under this section--

        ‘(A) $33,423,077 for fiscal year 1994; and

        ‘(B) $25,600,000 per fiscal year for each of fiscal years 1995, 1996, 1997, 1998, and 1999.

      Such amounts shall remain available until expended. Unobligated balances that remain available as of September 30, 1994, are rescinded.’.

Subtitle C--Repeal of Authorizations for the Airway Science Program, Collegiate Training Initiative, and Air Carrier Maintenance Technician Training Facility Grant Program

SEC. 11201. AIRWAY SCIENCE PROGRAM.

    All authority for--

      (1) the Secretary of Transportation to enter into grant agreements with universities or colleges having an airway science curriculum recognized by the Federal Aviation Administration, to conduct demonstration projects in the development, advancement, or expansion of airway science programs; and

      (2) the Federal Aviation Administration to enter into competitive grant agreements with institutions of higher education having airway science curricula, and all authorizations to appropriate for such purposes, as enacted under the head, ‘Federal Aviation Administration, Facilities and Equipment’, in the Department of Transportation and Related Agencies Appropriations Acts for fiscal years ending before October 1, 1993;

    is repealed.

SEC. 11202. COLLEGIATE TRAINING INITIATIVE.

    Section 362 of the Department of Transportation and Related Agencies Appropriations Act, 1993 (Public Law 102-388), is repealed, except that the Administrator of the Federal Aviation Administration may continue to convert appointment of persons who have been appointed pursuant to such section prior to the effective date of this Act from the excepted service to a career conditional or career appointment in the competitive civil service, pursuant to subsection (c) of such section.

SEC. 11203. AIR CARRIER MAINTENANCE TECHNICIAN TRAINING FACILITY GRANT PROGRAM.

    Section 119 of Public Law 102-581 (49 U.S.C. app. 1354 note) is repealed.

TITLE XII--DEPARTMENT OF VETERANS AFFAIRS

Subtitle A--Remove Certain Limitations and Restrictions Contained in Veterans Law

SEC. 12001. REMOVAL OF CERTAIN LIMITATIONS AND RESTRICTIONS.

    (a) Eliminate Hospital and Nursing Home Bed Capacity Requirements-

      (1) Paragraph (1) of subsection (a) of section 8110 of title 38, United States Code, is amended--

        (A) by striking ‘at not more than 125,000 and not less than 100,000’; and

        (B) by striking the third and fourth sentences.

      (2) Subsection (a) of section 8111 of such title is amended to read as follows:

    ‘(a) The Secretary and the Secretary of the Army, the Secretary of the Air Force, and the Secretary of the Navy may enter into agreements and contracts for the mutual use or exchange of use of hospital and domiciliary facilities, and such supplies, equipment, material and other resources as may be needed to operate such facilities properly, except that the Secretary may not enter into an agreement that would in any way subordinate or transfer the operation of the Department to any other agency of the Government.’.

    (b) ELIMINATE THE PERSONNEL LEVEL REQUIREMENT FOR THE OFFICE OF INSPECTOR GENERAL- Section 312(b) of title 38, United States Code, is repealed.

    (c) ELIMINATE REQUIREMENT TO REPORT TO CONGRESS AGENCY REORGANIZATIONS- Sections 510(b) through 510(f) of title 38, United States Code, are repealed.

    (d) ELIMINATE REQUIREMENT FOR CERTAIN SERVICES IN THE VETERANS HEALTH ADMINISTRATION- Section 7305 of title 38, United States Code, is amended to read ‘The Veterans Health Administration shall include such professional and auxiliary services as the Secretary may find necessary to carry out the functions of the Administration.’.

    (e) Eliminate Certain Requirements on the Under Secretary for Health--

      (1) Section 7306(a) of title 38, United States Code, is amended to read ‘(a) The Office of the Chief Medical Director shall consist of such personnel as may be deemed necessary for the purposes of this chapter.’.

      (2) Section 7306(b) of title 38, United States Code, is repealed.

      (3) Section 7306(c) of title 38, United States Code, is amended by changing the second sentence to read ‘Such appointments shall be made upon the recommendation of the Chief Medical Director.’.

      (4) Sections 7306(c), (d), and (e) of title 38, United States Code, are redesignated as sections 7306(b), (c), and (d), respectively.

Subtitle B--Closure of Supply Depots and Transfer of Revolving Supply Fund Money

SEC. 12101. CLOSURE OF SUPPLY DEPOTS AND TRANSFER OF FUNDS.

    Notwithstanding the provisions of section 510(b) and 8121 of title 38, United States Code, the Secretary of Veterans Affairs shall phase out and close the Department of Veterans Affairs’ Supply Depots, located at Somerville, New Jersey; Hines, Illinois; and Bell, California over two fiscal years, beginning in fiscal year 1994 and ending in fiscal year 1995, and shall transfer from the Department of Veterans Affairs Revolving Supply Fund to the General Fund of the Treasury, $45 million by September 30, 1994, and $44 million by September 30, 1995.

Subtitle C--Provision of Information From the Medicare and Medicaid Coverage Data Bank to the Department of Veterans Affairs

SEC. 12201. PROVISION OF DATA BANK INFORMATION TO DEPARTMENT OF VETERANS AFFAIRS.

    (a) Additional Purpose of Data Bank-

      (1) The heading to section 1144 of the Social Security Act is amended by striking ‘medicare and medicaid’ and inserting ‘Health care’.

      (2) Subsection (a) of that section is amended--

        (A) in the matter preceding paragraph (1), by striking ‘Medicare and Medicaid’ and inserting ‘Health Care’;

        (B) by striking ‘and’ at the end of paragraph (1);

        (C) by substituting ‘, and’ for the period at the end of paragraph (2); and

        (D) by adding at the end the following:

      ‘(3) assist in the identification of, and the collection from, third parties responsible for payment for health care items and services furnished to veterans under chapter 17 of title 38, United States Code.’.

    (b) DISCLOSURE OF DATA BANK INFORMATION TO SECRETARY OF VETERANS AFFAIRS- Subsection (b)(2)(B) of that section is amended by inserting ‘to the Secretary of Veterans Affairs and’ after ‘Data Bank’.

Subtitle D--Veterans’ Appeals Improvement Act of 1993

SEC. 12301. SHORT TITLE; REFERENCES TO TITLE 38, UNITED STATES CODE.

    (a) SHORT TITLE- This subtitle may be cited as the ‘Veterans’ Appeals Improvement Act of 1993’.

    (b) REFERENCES- Except as otherwise expressly provided, whenever in this subtitle an amendment is expressed in terms of an amendment to a section or other provision, the reference shall be considered to be made to a section or other provision of title 38, United States Code.

SEC. 12302. COMPOSITION OF THE BOARD OF VETERANS’ APPEALS.

    (a) BOARD MEMBERS AND PERSONNEL- Section 7101(a) is amended to read as follows:

    ‘(a)(1) There is in the Department a Board of Veterans’ Appeals (hereafter in this chapter referred to as the ‘Board’). The Board is under the administrative control and supervision of a Chairman directly responsible to the Secretary.

    ‘(2) The members of the Board shall be the Chairman, a Vice Chairman, such number of Deputy Vice Chairmen as the Chairman may designate under subsection (b)(4), and such number of other members as may be found necessary to conduct hearings and consider and dispose of matters properly before the Board in a timely manner. The Board shall have such other professional, administrative, clerical, and stenographical personnel as are necessary to conduct hearings and consider and dispose of matters properly before the Board in a timely manner.’.

    (b) APPOINTMENT AND REMOVAL OF BOARD MEMBERS- Section 7101(b) is amended--

      (1) in paragraph (2)(A) by striking ‘other members of the Board (including the Vice Chairman)’ and inserting ‘Board members other than the Chairman’;

      (2) in paragraph (2)(B) by striking ‘paragraph’ and inserting ‘subparagraph’; and

      (3) by striking paragraph (4) and inserting the following:

      ‘(4) The Secretary shall designate one Board member as Vice Chairman based upon recommendations of the Chairman. The Chairman may designate one or more Board members as Deputy Vice Chairmen. The Vice Chairman and any Deputy Vice Chairman shall perform such functions as the Chairman may specify. The Vice Chairman shall serve as Vice Chairman at the pleasure of the Secretary. Any Deputy Vice Chairman shall serve as Deputy Vice Chairman at the pleasure of the Chairman.’.

    (c) Acting Board Members- Section 7101(c) is amended by--

      (1) striking paragraph (1) and inserting the following:

      ‘(1) The Chairman may from time to time designate one or more employees of the Department to serve as acting Board members.’;

      (2) striking paragraph (2) in its entirety; and

      (3) redesignating paragraph (3) as paragraph (2) and in that paragraph by--

        (A) striking ‘temporary Board members designated under this subsection and the number of’; and

        (B) striking ‘section 7102(a)(2)(A)(ii) of this title’ and inserting in lieu thereof ‘paragraph (1)’.

    (d) CHAIRMAN’S ANNUAL REPORT- Section 7101(d)(2) is amended--

      (1) in subparagraph (D) by striking ‘year; and’ and inserting ‘year;’;

      (2) in subparagraph (E) by striking ‘year.’ and inserting ‘year; and’; and

      (3) by adding at the end of paragraph (2) the following new subparagraph:

      ‘(F) the names of those employees of the Department designated under subsection (c)(1) to serve as acting Board members during that year and the number of cases each such acting Board member participated in during that year.’.

    (e) Conforming Amendments-

      (1) Section 7101(d)(3)(B) is amended by striking ‘section 7103(d)’ and inserting ‘section 7101(b)’.

      (2) Section 7101(e) is amended by striking ‘a temporary or’ and inserting ‘an’.

SEC. 12303. ASSIGNMENT OF MATTERS BEFORE THE BOARD.

    Section 7102 is amended to read as follows:

‘Sec. 7102. Assignment of matters before the Board

    ‘The Chairman may determine any matter before the Board, or rule on any motion in connection therewith, or may assign any such matter or motion to any other Board member or a panel of members for determination. Any such assignment by the Chairman may not be reviewed by any other official or by any court, whether by an action in the nature of mandamus or otherwise.’.

SEC. 12304. DETERMINATIONS BY THE BOARD.

    (a) IN GENERAL- Section 7103(a) is amended to read as follows:

    ‘(a) When the Chairman retains a matter or submits it to another Board member or a panel of members for determination in accordance with section 7102 of this title, or to an expanded panel of Board members in accordance with subsection (b) of this section, the Chairman, other member, or panel of members may:

      ‘(1) Issue an order dismissing any appeal, in whole or in part, which fails to allege specific error of fact or law in the determination being appealed or in which the determination being appealed has become moot. Each order of dismissal shall include a written statement of the Board’s findings and conclusions, and the reasons or bases for those findings and conclusions, in support of the dismissal.

      ‘(2) Issue an order remanding the case, in whole or in part, to the agency of original jurisdiction for such additional development as the Chairman, other member, or panel of members may consider necessary for proper disposition of the case.

      ‘(3) Render a written decision with respect to any issues not dismissed or remanded, which decision shall constitute the Board’s final disposition of the issues so decided. Such decisions shall be based on the entire record in the proceeding, upon consideration of all evidence and material of record, and upon applicable provisions of law and regulation. The Board shall be bound in its decisions, including allowances made under the provisions of subsection (d) of this section, by the regulations of the Department, the instructions of the Secretary, and the precedent opinions of the chief legal officer of the Department. Each decision of a Board member or a panel of members shall include--

        ‘(A) a written statement of the Board’s findings and conclusions, and the reasons or bases for those findings and conclusions, on all material issues of fact and law presented on the record; and

        ‘(B) an order granting appropriate relief or denying relief.

    Decisions by a panel of Board members, except as otherwise provided in subsection (b), shall be made by a majority of the members of the panel.’.

    (b) RECONSIDERATION- Section 7103(b) is amended to read as follows:

    ‘(b) The decision of a Board member or a panel of members is final, unless the Chairman orders reconsideration of the case, and a claim disallowed by the Board may not thereafter be reopened or allowed except as provided in section 5108 of this title and subsection (d) of this section. If the Chairman orders reconsideration in a case, the case shall be considered upon reconsideration by a panel of members other than the Chairman if one member originally decided the case or by an expanded panel of members other than the Chairman if a panel originally decided the case. When a panel considers a case after a motion for reconsideration has been granted, the decision of a majority of the panel members shall constitute the final decision of the Board, except as provided in subsection (d). If the expanded panel cannot reach a majority decision, the Chairman may either assign additional members other than the Chairman to the panel or vote with the members of the expanded panel so as to create a majority decision. Either the expanded panel majority or the majority made with the vote of the Chairman shall constitute the final decision of the Board, except as provided in subsection (d).’.

    (c) ADMINISTRATIVE ALLOWANCE; NOTICE OF DETERMINATION- Section 7103 is further amended by adding at the end of the following:

    ‘(d) Whenever a Board member other than the Chairman or Vice Chairman is of the opinion that a prior, otherwise final denial of a claim should be revised or amended to allow the claim in whole or in part, based on a difference of opinion as to how the evidence should be evaluated rather than on any error in the prior decision, the Board member shall recommend such allowance to the Chairman or Vice Chairman. The Chairman or Vice Chairman, whether upon the recommendation of any other Board member or upon the Chairman’s or Vice Chairman’s own motion, if of the opinion that a prior, otherwise final denial of a claim should be revised or amended to allow the claim in whole or in part, based on a difference of opinion as to how the evidence should be evaluated rather than on any error in the prior decision, shall approve the award of any benefit, or any increase therein, on the basis of such difference of opinion. The discretionary exercise of the authority provided to the Chairman and Vice Chairman under this subsection shall not be reviewed by any other official or by any court, whether by an action in the nature of mandamus or otherwise.

    ‘(e) After reaching a determination under any of the provisions of this section, the Board shall promptly mail a copy of its written decision to the appellant and the appellant’s authorized representative (if any) at the last known address of the appellant and at the last known address of such representative (if any), respectively.’.

SEC. 12305. JURISDICTION OF THE BOARD.

    Section 7104 is amended by--

      (a) striking the subsection designation ‘(a)’;

      (b) striking ‘211(a)’ and inserting ‘511(a)’; and

      (c) striking all after ‘made by the Board.’.

SEC. 12306. APPELLATE PROCEDURE.

    Section 7105(d) is amended by striking paragraph (5).

SEC. 12307. MEDICAL OPINIONS.

    Section 7109 is amended to read as follows:

‘Sec. 7109. Medical opinions

    ‘(a) A Board member or a panel of members before whom a matter which involves a medical question is pending may, in the discretion of the member or panel, request an opinion on that medical question from--

      ‘(1) an employee of the Board who is licensed to practice medicine in any State;

      ‘(2) an employee of the Veterans Health Administration who is licensed to practice medicine in any State and who has been designated by the Under Secretary for Health to provide such an opinion; or

      ‘(3) an employee of any Federal department or agency who is licensed to practice medicine in any State and who has been designated, in accordance with arrangements made by the Secretary with the head of any such Federal department or agency, to provide such an opinion.

    ‘(b) When, in the judgment of a Board member or a panel of members assigned a matter for determination in accordance with section 7102 of this title, the medical complexity or controversy involved in that matter warrants expert medical opinion in addition to, or in lieu of, that available within the Department or within another Federal department or agency, the Board may secure an advisory medical opinion from one or more independent medical experts who are not employees of the Department or of another Federal department or agency. The Secretary shall make necessary arrangements with recognized medical schools, universities, or clinics to furnish such advisory medical opinions at the request of the Chairman. Any such arrangement shall provide that the actual selection of the expert or experts to give the advisory opinion in an individual case shall be made by an appropriate official of such institution. For purposes of this section, an employee of a medical school, university, or clinic shall not be considered an employee of the Department or another Federal department or agency just because the medical school, university, or clinic receives grants from, or provides contract services to, the Department or another Federal department or agency.

    ‘(c) Any opinion provided under this section shall be in writing and made a part of the record. The Board shall notify a claimant that an advisory medical opinion has been requested under this section with respect to the claimant’s case and shall mail to the claimant and the claimant’s authorized representative (if any) at the last known address of the claimant and at the last known address of such representative (if any) a copy of such opinion when the Board receives it. An opportunity for response by or on behalf of the claimant shall be provided following the mailing of the copy (or copies) of such advisory medical opinion.’.

SEC. 12308. HEARINGS.

    Section 7110 is amended to read as follows:

‘Sec. 7110. Hearings

    ‘(a) The Board shall decide any appeal only after affording the appellant an opportunity for a hearing.

    ‘(b) A hearing docket shall be maintained and formal recorded hearings shall be held by such member or members of the Board as the Chairman may designate. Such member or members designated by the Chairman to conduct the hearing will participate in making the final determination in the claim.

    ‘(c) An appellant may request a hearing before the Board at either its principal location or a regional office of the Department. Any hearing held at a regional office of the Department shall be scheduled for hearing in the order in which the requests for hearing in that area are received by the Department at the place specified by the Department for the filing of requests for such hearings.

    ‘(d) At the request of the Chairman, the Secretary may provide suitable facilities and equipment to the Board or other components of the Department to enable an appellant located at a facility within the area served by a regional office to participate, through voice transmission, or picture and voice transmission, by electronic or other means, in a hearing with a Board member or members sitting at the Board’s principal location. When such facilities and equipment are available, the Chairman may, at his or her discretion, afford the appellant an opportunity to participate in a hearing before the Board through the use of such facilities and equipment in lieu of a hearing held by personally appearing before a Board member or members as provided in subsection (c).’.

SEC. 12309. TABLE OF CONTENTS.

    The table of contents at the beginning of chapter 71 is amended by--

      (1) striking ‘7102. Assignment of members of Board.’ and inserting ‘7102. Assignment of appellate matters.’;

      (2) striking ‘7109. Independent medical opinions.’ and inserting ‘7109. Medical opinions.’; and

      (3) striking ‘7110. Traveling sections.’ and inserting ‘7110. Hearings.’.

SEC. 12310. EFFECTIVE DATES OF AWARDS BASED ON DIFFERENCE OF OPINION.

    Section 5110 is amended by adding at the end the following new subsection:

    ‘(o) The effective date of the award of any benefit, or any increase therein, pursuant to section 7103(d) of this title on the basis of a difference of opinion shall be--

      ‘(1) if the award resulted from review initiated by an application to reopen the claim for the benefit in question under the provision of section 5108 of this title, fixed in accordance with the facts found but shall not be earlier than the date the Department of Veterans Affairs received such application; or

      ‘(2) if the award resulted from review of the final determination undertaken by the Department of Veterans Affairs solely on its own initiative, the date the Chairman or Vice Chairman of the Board of Veterans’ Appeals approved the award.’.

TITLE XIII--HUMAN RESOURCE MANAGEMENT

Subtitle A--Federal Workforce Restructuring Act of 1993

SEC. 13001. SHORT TITLE.

    This subtitle may be cited as the ‘Federal Workforce Restructuring Act of 1993’.

SEC. 13002. AMENDMENTS TO CHAPTER 41 OF TITLE 5, UNITED STATES CODE.

    (a) Chapter 41 of title 5, United States Code, is amended--

      (1) in section 4101(4) by striking ‘fields’ and all that follows through the semicolon and inserting ‘fields which will improve individual and organizational performance and assist in achieving the agency’s mission and performance goals;’;

      (2) in section 4103--

        (A) in subsection (a) by striking ‘In’ and all that follows through ‘proficiency’ and inserting ‘In order to assist in achieving an agency’s mission and performance goals by improving employee and organizational performance’; and

        (B) in subsection (b)--

          (i) in paragraph (1) by striking ‘determines’ and all that follows through the period and inserting ‘determines that such training would be in the interests of the Government.’;

          (ii) by repealing paragraph (2) and redesignating paragraph (3) as paragraph (2); and

          (iii) in subparagraph (C) of paragraph (2) (as so redesignated) by striking ‘retaining’ and all that follows through the period and inserting ‘such training.’;

      (3) in section 4105--

        (A) by striking ‘(a) at the beginning; and

        (B) by repealing subsections (b) and (c);

      (4) by repealing section 4106;

      (5) in section 4107--

        (A) by amending the catchline to read as follows:

‘Sec. 4107. Restriction on degree training’;

        (B) by repealing subsections (a) and (b) and redesignating subsections (c) and (d) as subsections (a) and (b), respectively;

        (C) by amending subsection (a) (as so redesignated)--

          (i) by striking ‘subsection (d)’ and inserting ‘subsection (b)’; and

          (ii) by striking ‘by, in, or through a non-Government facility’; and

        (D) by amending paragraph (1) of subsection (b) (as so redesignated) by striking ‘subsection (c)’ and inserting ‘subsection (a)’;

      (6) in section 4108(a) by striking ‘by, in, or through a non-Government facility under this chapter’ and inserting ‘for more than a minimum period prescribed by the head of the agency’;

      (7) in section 4113(b) by striking everything following the first sentence;

      (8) by repealing section 4114; and

      (9) in section 4118--

        (A) in subsection (a)(7) by striking ‘by, in, and through non-Government facilities’;

        (B) by repealing subsection (b); and

        (C) by redesignating subsections (c) and (d) as subsections (b) and (c), respectively.

    (b) The analysis of chapter 41 of title 5, United States Code, is amended--

      (1) by striking the items relating to sections 4106 and 4114; and

      (2) by amending the item relating to section 4107 to read as follows:

‘4107. Restriction on degree training.’.

    (c) The amendments made by this section are effective on the date of enactment of this Act.

SEC. 13003. VOLUNTARY SEPARATION INCENTIVES.

    (a) For the purpose of this section--

      (1) ‘agency’ means an Executive agency, as defined in section 105 of title 5, United States Code, but does not include the Department of Defense, the Central Intelligence Agency, or the General Accounting Office; and

      (2) ‘employee’ means an employee, as defined in section 2105 of title 5, United States Code, of an agency, serving under an appointment without time limitation, who has been currently employed for a continuous period of at least 12 months, including an individual employed by a county committee established under section 590h(b) of title 16, United States Code, 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 Government; or

        (B) an employee having a disability on the basis of which such employee is or would be eligible for disability retirement under the applicable retirement system referred to in subparagraph (A).

    (b)(1) In order to assist in the restructuring of the Federal workforce while minimizing involuntary separations, the head of an agency may pay, or authorize the payment of, a voluntary separation incentive to employees in any component of the agency, employees in any occupation or geographic location, or any combination thereof, who agree, during a continuous 90-day period designated by the agency head for the agency or a component thereof, beginning no earlier than the date of enactment of this Act and ending no later than September 30, 1994, to separate from service with the agency, whether by retirement or resignation.

    (2) In order to receive a voluntary separation incentive, an employee shall separate from service no later than the last day of the 90-day period designated by the agency head under paragraph (1), unless the agency head determines that, in order to ensure the performance of the agency’s mission, the employee must agree to continue in service until a later date, but not later than 2 years after such last day of the 90-day period.

    (c) A voluntary separation incentive--

      (1) shall be paid in a lump sum after the employee’s separation;

      (2) shall be equal to the lesser of--

        (A) an amount equal to the amount the employee would be entitled to receive under section 5595(c) of title 5, United States Code, if the employee were entitled to payment under such section; or

        (B) $25,000;

      (3) shall not be a basis for payment, and shall not be included in the computation, of any other type of Government benefit;

      (4) shall not be taken into account in determining the amount of any severance pay to which an employee may be entitled under section 5595 of title 5, United States Code, based on any other separation; and

      (5) shall be paid from appropriations or funds available for the payment of the basic pay of the employee.

    (d) An employee who has received a voluntary separation incentive under this section and accepts employment with the Government of the United States within 2 years of the date of the separation on which payment of the incentive is based shall be required to repay the entire amount of the incentive to the agency that paid the incentive. If the employment is with an Executive agency (as defined in section 105 of title 5, United States Code), the Director of the Office of Personnel Management may, at the request of the head of the agency, waive the repayment if the employment is in a position for which there is exceptional difficulty in recruiting a qualified employee. If the employment is with an entity in the legislative branch, the head of the entity or the appointing official may waive the repayment if the employment is in a position for which there is exceptional difficulty in recruiting a qualified employee. If the employment is with the judicial branch, the Director of the Administrative Office of the United States Courts may waive the repayment if the employment is in a position for which there is exceptional difficulty in recruiting a qualified employee.

    (e) The Director of the Office of Personnel Management may prescribe any regulations necessary for the administration of this Act.

    (f) The Director of the Administrative Office of the United States Courts may, by regulation, establish a program consistent with the program established by subsections (a) through (d) of this section for employees of the judicial branch.

    (g) It is the sense of Congress that--

      (1) employment in the Executive Branch should be reduced by not less than one full-time equivalent position for each two employees who are paid voluntary separation incentives under this Act; and

      (2) each agency should adjust its employment levels to achieve this result.

SEC. 13004. REPAYMENT OF SEPARATION PAY.

    (a) Section 5597 of title 5, United States Code, is amended by adding at the end the following new subsection:

    ‘(g) An employee who receives separation pay under this section on the basis of a separation occurring on or after the date of enactment of the Federal Workforce Restructuring Act of 1993 and accepts employment with the Government of the United States within 2 years of the date of the separation on which payment of the separation pay is based shall be required to repay the entire amount of the separation pay to the defense agency that paid the separation pay. If the employment is with an Executive agency (as defined in section 105 of title 5, United States Code), the Director of the Office of Personnel Management may, at the request of the head of the agency, waive the repayment if the employment is in a position for which there is exceptional difficulty in recruiting a qualified employee. If the employment is with an entity in the legislative branch, the head of the entity or the appointing official may waive the repayment if the employment is in a position for which there is exceptional difficulty in recruiting a qualified employee. If the employment is with the judicial branch, the Director of the Administrative Office of the United States Courts may waive the repayment if the employment is in a position for which there is exceptional difficulty in recruiting a qualified employee.’.

    (b) Section 2(b) of the Central Intelligence Agency Voluntary Separation Pay Act (Public Law 103-36; 107 Stat. 104) is amended by adding at the end the following: ‘An employee who receives separation pay under this section on the basis of a separation occurring on or after the date of enactment of the Federal Workforce Restructuring Act of 1993 and accepts employment with the Government of the United States within 2 years of the date of the separation on which payment of the separation pay is based shall be required to repay the entire amount of the separation pay to the Central Intelligence Agency. If the employment is with an Executive agency (as defined in section 105 of title 5, United States Code), the Director of the office of Personnel Management may, at the request of the head of the agency, waive the repayment if the employment is in a position for which there is exceptional difficulty in recruiting a qualified employee. If the employment is with an entity in the legislative branch, the head of the entity or the appointing official may waive the repayment if the employment is in a position for which there is exceptional difficulty in recruiting a qualified employee. If the employment is with the judicial branch, the Director of the Administrative Office of the United States Courts may waive the repayment if the employment is in a position for which there is exceptional difficulty in recruiting a qualified employee.’.

SEC. 13005. ADDITIONAL AGENCY PAYMENTS TO FUND.

    (a) Section 8334 of title 5, United States Code, is amended by adding at the end the following new subsection:

      ‘(1) In addition to any other payments required by this subchapter, an agency shall remit to the Office for deposit in the Treasury of the United States to the credit of the Fund an amount equal to 9 percent of the final rate of basic pay of each employee of the agency who retires under section 8336(d).’.

    (b) The amendment made by this section shall apply with respect to retirements occurring on or after the date of enactment of this Act.

Subtitle B--SES Annual Leave Accumulation

SEC. 1301. SES ANNUAL LEAVE ACCUMULATION.

    (a) Effective on the last day of the last applicable pay period beginning in calendar year 1993, subsection (f) of section 6304 of title 5, United States Code, is repealed.

    (b) Notwithstanding the amendment made by subsection (a), in the case of an employee who, on the effective date of subsection (a), is subject to subsection (f) of section 6304 of title 5, United States Code, and who has to such employee’s credit annual leave in excess of the maximum accumulation otherwise permitted by subsection (a) or (b) of section 6304, such excess annual leave shall remain to the credit of the employee and be subject to reduction, in the same manner as provided in subsection (c) of section 6304.

TITLE XIV--REINVENTING SUPPORT SERVICES

SEC. 14001. SHORT TITLE.

    This title may be cited as the ‘Government Information Dissemination and Printing Improvement Act of 1993’.

SEC. 14002. PURPOSE.

    The purpose of this title is to enhance public access to public information, through a diversity of sources and in a variety of forms and formats, by improving the printing and dissemination practices of the Federal Government.

SEC. 14003. DEFINITIONS.

    As used herein--

      (1) ‘information dissemination product’ means any book, paper, map, machine-readable material, audiovisual production, or other documentary material, regardless of physical form or characteristic, disseminated by an agency to the public; and

      (2) ‘public information’ means any information, regardless of form or format, that an agency discloses, disseminates, or makes available to the public pursuant to law, rule, regulation, policy, or practice, and any part of that information.

SEC. 14004. EXECUTIVE BRANCH PRINTING POLICY.

    (a) The President shall establish policy for the acquisition of printing by Executive branch agencies and promulgate government-wide regulations as appropriate.

    (b) To the extent practicable and appropriate, the policies promulgated for the acquisition of printing by Executive branch agencies shall be consistent with the principles contained in the Federal Acquisition Regulation, promulgated pursuant to 41 U.S.C. 405a.

    (c) The policies promulgated pursuant to this section shall ensure that the Government Printing Office has the opportunity to compete on an equal basis for Executive branch agency printing acquisitions.

SEC. 14005. TRANSITION TO EXECUTIVE BRANCH PRINTING.

    (a) The Government Printing Office shall remain the mandatory source for Executive branch agencies’ printing for 2 years after the effective date of this Act.

    (b) Notwithstanding subsection (a), Executive agencies are authorized to obtain printing services costing under $2500 from commercial sources, other printing sources operated by Executive branch agencies, or the Government Printing Office during this period.

    (c) Subsection (a) does to apply to (1) printing for the Central Intelligence Agency, the Defense Intelligence Agency, and the National Security Agency, or (2) printing from other sources that are specifically authorized by law at the time of enactment of this Act.

SEC. 14006. AUTHORITY AND FUNCTIONS OF THE DIRECTOR OF THE OFFICE OF MANAGEMENT AND BUDGET.

    The Director of the Office of Management and Budget (the Director) shall develop policies and practices for agency dissemination of public information to ensure that agencies--

      (1) make information dissemination products available on timely, equitable and cost effective terms;

      (2) encourage a diversity of public and private information dissemination products;

      (3) avoid establishing, or permitting others to establish, exclusive, restricted, or other distribution arrangements that interfere with the availability of information dissemination products on a timely and equitable basis; and

      (4) set user charges for information dissemination products no higher than sufficient to recover the cost of dissemination, except where required by statute or specifically authorized by the Director.

SEC. 14007. FEDERAL AGENCY RESPONSIBILITIES.

    The head of each Executive branch agency shall--

      (1) ensure that the public has timely and equitable access to the agency’s public information;

      (2) disseminate public information in an efficient, cost effective, and economical manner;

      (3) provide notice to the Superintendent of Documents and otherwise comply with the requirements of section 1710, title 44, United States Code;

      (4) establish fees and other dissemination arrangements in a manner consistent with the policies and practices developed by the Director under Section 14006 of this Act;

      (5) consider whether information dissemination products available from other Federal or nonfederal sources are equivalent to any agency information dissemination product and reasonably fulfill the dissemination responsibilities of the agency; and

      (6) regularly solicit and consider public input on the agency’s information dissemination program.

SEC. 14008. DEPOSITORY LIBRARY PROGRAM.

    (a) Within 1 year of the date of enactment of this Act, the Director shall, in consultation with the Secretary of Commerce, the Superintendent of Documents, the Librarian of Congress the Archivist of the United States, and the public, propose such amendments to Chapter 19 of title 44, United States Code, as may be necessary and appropriate to ensure the distribution of government information dissemination products to the depository libraries.

    (b) The policies promulgated pursuant to section 14005 of this Act shall reaffirm agency responsibilities to cooperate with the Superintendent of Documents with regard to the distribution of government publications to the depository libraries.

    (c) Agency information dissemination programs shall include provisions to maximize the distribution of information dissemination products to the depository libraries.

SEC. 14009. ESTABLISHMENT AND OPERATION OF GOVERNMENT INFORMATION LOCATOR SERVICE.

    Section 3511 of title 44, United States Code, is amended to read as follows:

    ‘(a) In order to assist agencies and the public in reducing the burden of agency information collection requests by minimizing duplication, the Director shall maintain a publicly accessible comprehensive inventory of all approved Federal agency information collection requests.

    ‘(b) In order to assist agencies and the public in locating information and to promote information sharing and equitable access by the public, the Director shall--

      ‘(1) cause to be established and maintained a distributed agency-based electronic Government Information Locator Service supported by agency inventory systems which identify significant public information holdings consistent with the requirements of Section 4101 of title 44, United States Code;

      ‘(2) require each agency having significant information dissemination products to establish and maintain a comprehensive inventory of such products, and shall prescribe the minimum contents of such inventories, subject to any technical standards developed pursuant to paragraph (3); and

      ‘(3) establish an interagency committee, in cooperation with the Secretary of Commerce, the Archivist of the United States, the Administrator of General Services, the Public Printer, and the Librarian of Congress, to develop such technical standards for agency inventory systems as may be necessary and appropriate.’.

SEC. 14010. TECHNICAL AND CONFORMING AMENDMENTS.

    (a) Section 103 of title 44, United States Code, is amended by striking ‘Government,’ and inserting ‘Congressional and Judicial branch publications’.

    (b) Section 312 of title 44, United States Code, is amended by striking ‘Government’ and inserting ‘Congress or the Judiciary (other than the Supreme Court)’ in the first sentence of the section.

    (c) Section 313 of title 44, United States Code, is amended by inserting ‘for the use of Congress or the Judiciary (other than the Supreme Court)’ after ‘otherwise’ in the first paragraph thereof.

    (d) Section 501 of title 44, United States Code, is amended to read as follows: ‘Government printing, binding, and blank-book work for Congress and the Judiciary (other than the Supreme Court) shall be done at the Government Printing Office, except classes of work the Public Printer considers appropriate to be done elsewhere.’.

    (e) Sections 503, 504, 508, 509, 510, 512, 513, and 514 of title 44, United States Code, are repealed.

    (f) Chapter 11 of title 44, United States Code, is repealed in its entirety.

    (g) Section 1502 of title 44, United States Code, is amended by striking ‘and, together with the Public Printer,’ after ‘custody’ in the first section.

    (h) Section 1503 of title 44, United States Code, is amended by striking the sixth sentence, which reads, ‘The Office shall transmit immediately to the Government Printing Office for printing, as provided by this chapter, one duplicate original or certified copy of each document required or authorized to be published by section 1505 of this title.’.

    (i) Section 1504 of title 44, United States Code, is repealed.

    (j) Section 1506 of title 44, United States Code, is amended by striking ‘Public Printer or Acting Printer’.

    (k) Section 1701 of title 44, United States Code, is repealed.

    (l) Section 207 of Public Law 102-392, Legislative Branch Appropriations Act, 1993, is repealed.

TITLE XV--STREAMLINING MANAGEMENT CONTROL

SEC. 15001. AUTHORITY TO INCREASE EFFICIENCY IN REPORTING TO CONGRESS.

    (a) PURPOSE- The purpose of this title is to improve the efficiency of Executive branch performance in implementing statutory requirements for reports to Congress and its committees. Examples of improvements in efficiency intended by this subtitle are the elimination or consolidation of duplicative or obsolete reporting requirements and adjustments to deadlines that will provide for more efficient workload distribution or improve the quality of reports.

    (b) AUTHORITY OF THE DIRECTOR- The Director of the Office of Management and Budget may publish annually in the President’s Budget his recommendations for consolidation, elimination, or adjustments in frequency and due dates of statutorily required periodic reports to the Congress or its committees. For each recommendation, the Director shall provide an individualized statement of the reasons that support the recommendation. In addition, for each report for which a recommendation is made, the Director shall state with specificity the exact consolidation, elimination, or adjustment in frequency or due date that is recommended. If the Director’s recommendations are approved by law, they shall take effect.

    (c) The Director’s recommendations shall be consistent with the purpose stated in subsection (a).

    (d) Prior to the publication of the recommendations authorized in subsection (b), the Director or his designee shall consult with the appropriate congressional committees concerning the recommendations.

TITLE XVI--FINANCIAL MANAGEMENT

SEC. 16001. SHORT TITLE.

    This title may be cited as the ‘Federal Financial Management Act of 1993’.

Subtitle A--Electronic Payments

SEC. 16101. ELECTRONIC PAYMENTS.

    (a) Section 3332 of title 31, United States Code, is amended to read as follows:

      ‘3332. Required direct deposit.

    ‘(a)(1) Notwithstanding any other provision of law, all Federal wage, salary, and retirement payments shall be paid to recipients of such payments by electronic funds transfer, unless another method has been determined by the Secretary of the Treasury to be appropriate.

    ‘(2) Each recipient of Federal wage, salary, or retirement payments shall designate one or more financial institutions or other authorized payment agents and provide the payment certifying or authorizing agency information necessary for the recipient to receive electronic funds transfer payments through each institution so designated.

    ‘(b)(1) The head of each agency shall waive the requirements of subsection (a) of this section for a recipient of Federal wage, salary, or retirement payments authorized or certified by the agency upon written request by such recipient.

    ‘(2) Federal wage, salary, or retirement payments shall be paid to any recipient granted a waiver under paragraph (1) of this subsection by any method determined appropriate by the Secretary of the Treasury.

    ‘(c)(1) The Secretary of the Treasury may waive the requirements of subsection (a) of this section for any group of recipients upon request by the head of an agency under standards prescribed by the Secretary of the Treasury.

    ‘(2) Federal wage, salary, or retirement payments shall be paid to any member of a group granted a waiver under paragraph (1) of this subsection by any method determined appropriate by the Secretary of the Treasury.

    ‘(d) This section shall apply only to recipients of Federal wage or salary payments who begin to receive such payments on or after January 1, 1995, and recipients of Federal retirement payments who begin to receive such payments on or after January 1, 1995.

    ‘(e) The crediting of the amount of a payment to the appropriate account on the books of a financial institution or other authorized payment agent designated by a payment recipient under this section shall constitute a full acquittance to the United States for the amount of the payment.’.

    (b) The table of sections for chapter 33 of title 31, United States Code, is amended by amending the item for section 3332 to read:

      ‘3332. Required direct deposit.’.

Subtitle B--Franchise Funds and Innovation Funds

SEC. 16201. FRANCHISE FUNDS AND INNOVATION FUNDS.

    (a) Title 31, United States Code, is amended by adding, after section 1537, a section 1538, as follows:

‘Sec. 1538. Franchise funds

    ‘(a) There is hereby authorized to be established a franchise fund in any executive agency which does not have such a fund which shall be available, without further appropriation action by the Congress, for expenses and equipment necessary for the maintenance and operations of such administrative services as the head of the agency, with the approval of the Office of Management and Budget, determines may be performed more advantageously on a centralized basis.

    ‘(b)(1) The fund shall consist of the fair and reasonable value of inventories, equipment, and other assets and inventories on order pertaining to the services to be provided by the fund as are transferred by the head of the agency to the fund less related liabilities and unpaid obligations together with any appropriations made for the purpose of providing capital.

    ‘(2) For the first fiscal year a fund is in operation and each fiscal year thereafter, an amount not to exceed 4 percent of the total income of the fund may be retained in the fund, to remain available until expended, to be used only for the acquisition of capital equipment and for the improvement and implementation of agency financial management and related support systems.

    ‘(3) For the first three fiscal years a fund is in operation, up to 50 percent of the unobligated balances of funds provided in annual appropriations available at the end of the fiscal year to the agency for salaries and expenses may be transferred into the fund no later than the end of the succeeding fiscal year.

    ‘(c) The fund shall be reimbursed or credited with payments, including advance payments, from applicable appropriations and funds of the agency, other Federal agencies, and other sources authorized by law for supplies, materials, and services at rates which will recover the expenses of operations including accrued leave, depreciation of fund plant and equipment, and an amount necessary to maintain a reasonable operating reserve, as determined by the head of the agency.

    ‘(d)(1) In the third fiscal year after the fund is established, and each year thereafter, any Federal entity seeking to obtain any service financed through the fund that is not inherently governmental in nature must not be precluded from obtaining such service from one or more other sources, either governmental or non-governmental, in addition to the source finance through the funds.

    ‘(2) If, after the end of the third fiscal year after a fund is established, any Federal entity seeking to obtain any service financed through the fund that is not inherently governmental in nature is precluded from obtaining such service from one or more other sources, either governmental or non-governmental, in addition to the source financed through the fund, the fund shall be cancelled.’.

    (b) The table of sections for subchapter III of chapter 15 of title 31, United States Code, is amended by adding, after the item for section 1537, the following new item: ‘Section 1538. Franchise Funds.’.

    (c) Title 31, United States Code, is amended by adding, after section 1538, a section 1539, as follows:

‘Sec. 1539. Innovation funds

    ‘(a) There is hereby authorized to be established an innovation fund in any executive agency which does not have such a fund, which shall be available without further appropriation action by the Congress.

    ‘(b) The purpose of the fund is to provide a self-sustaining source of financing for agencies to invest in projects designed to produce measurable improvements in agency efficiency and significant taxpayer savings. Amounts available in the fund may be borrowed by the agency for such projects, subject to subsection (e).

    ‘(c) Each agency that establishes an innovation fund will develop an investment project selection process, including specific investment criteria such as return on investment, payback period, extent of matching or in-kind support (including such support from other Federal agencies), technical merit, and budget justification.

    ‘(d) For the first three fiscal years a fund is in operation, up to 50 percent of the unobligated balances of funds provided in annual appropriations available at the end of the fiscal year to the agency (other than appropriations for salaries and expenses) may be transferred to and merged with the innovation fund to be available to make loans to agency components for projects designed to enhance productivity and generate cost savings, provided that such transfers occur no later than the end of the succeeding fiscal year.

    ‘(e)(1) Any amounts borrowed from the fund by an agency component to finance a project selected under the process described in subsection (c) shall be repaid to the fund at the times specified in the repayment schedule agreed upon at the time the loan is made.

    ‘(2) Interest on loans made by the fund shall be paid to the fund at the rate on marketable Treasury securities of similar maturity at the time the loan is made.

    ‘(3) Repayments shall be made from the accounts anticipated to receive the greatest long-term benefit from the project at the time the loan is made.

    ‘(4) Repayments to the fund shall take priority over any other obligation of payments of an account designated to make repayments under paragraph (3) of this subsection.’.

    (d) The table of sections for subchapter III of chapter 15 of title 31, United States Code, is amended by adding, after the item for section 1538, the following new item:

      ‘Section 1539. Innovation Funds.’.

Subtitle C--Simplifying the Management Reporting Process

SEC. 16301. SIMPLIFICATION OF MANAGEMENT REPORTING PROCESS.

    (a) To improve the efficiency of Executive branch performance in implementing statutory requirements for general management and financial management reports to the Congress and its committees, the Director of the Office of Management and Budget may publish annually in the President’s Budget his recommendations for consolidation, elimination, or adjustments in frequency and due dates of statutorily required periodic reports of agencies to the Office of Management and Budget or the President and of agencies or the Office of Management and Budget to the Congress under any laws for which the Office of Management and Budget has general management or financial management responsibility. For each recommendation, the Director shall provide an individualized statement of the reasons that support the recommendation. In addition, for each report for which a recommendation is made, the Director shall state with specificity the exact consolidation, elimination, or adjustment in frequency or due date that is recommended. If the Director’s recommendations are approved by law, they shall take effect.

    (b) The Director’s recommendations shall be consistent with the purpose stated in subsection (a).

    (c) Prior to the publication of the recommendations authorized in subsection (a), the Director or his designee shall consult with the appropriate congressional committees, including the House Committee on Government Operations and the Senate Committee on Governmental Affairs, concerning the recommendations.

Subtitle D--Annual Financial Reports

SEC. 16401. ANNUAL FINANCIAL REPORTS.

    (a) Section 3515 of title 31, United States Code, is amended to read as follows:

‘Sec. 3515. Financial statements of agencies

    ‘(a) Not later than March 1 of 1997 and each year thereafter, the head of each executive agency identified in section 901(b) of this title shall prepare and submit to the Director of the Office of Management and Budget an audited financial statement for the preceding fiscal year, covering all accounts and associated activities of each office, bureau, and activity of the agency.

    ‘(b) Each audited financial statement of an executive agency under this section shall reflect--

      ‘(1) the overall financial position of the offices, bureaus, and activities covered by the statement, including assets and liabilities thereof; and

      ‘(2) results of operations of those offices, bureaus, and activities.

    ‘(c) The Director of the Office of Management and Budget shall prescribe the form and content of the financial statements of executive agencies under this section, consistent with applicable accounting principles, standards, and requirements.

    ‘(d) The Director of the Office of Management and Budget may waive the application of all or part of subsection (a).

    ‘(e) Not later than March 1 of 1996, the head of each Executive agency identified in section 901(b) of this title and designated by the Director of the Office of Management and Budget shall prepare and submit to the Director of the Office of Management and Budget an audited financial statement for the preceding fiscal year, covering all accounts and associated activities of each office, bureau, and activity of the agency.

    ‘(f) Not later than March 31 of 1994, 1995, and, for Executive agencies not designated by the Director of the Office of Management and Budget under subsection (e), 1996, the head of each Executive agency identified in section 901(b) of this title shall prepare and submit to the Director of the Office of Management and Budget a financial statement for the preceding fiscal year, covering--

      ‘(1) each revolving fund and trust fund of the agency; and

      ‘(2) to the extent practicable, the accounts of each office, bureau, and activity of the agency which performed substantial commercial functions during the preceding fiscal year.

    ‘(g) for purposes of subsection (f), the term ‘commercial functions’ includes buying and leasing of real estate, providing insurance, making loans and loan guarantees, and other credit programs and any activity involving the provision of a service or thing for which a fee, royalty, rent, or other charge is imposed by an agency for services and things of value it provides.’.

    (b) Subsection 3521(f) of title 31, United States Code, is amended to read as follows:

    ‘(f)(1) For each audited financial statement required under subsections (a) and (e) of section 3515 of this title, the person who audits the statement for purpose of subsection (e) of this section shall submit a report on the audit to the head of the agency. A report under this subsection shall be prepared in accordance with generally accepted government auditing standards.

    ‘(2) Not later than June 30 following the fiscal year for which a financial statement is submitted under subsection (f) of section 3515 of this title, the person who audits the statement for purpose of subsection (e) of this section shall submit a report on the audit to the head of the agency. A report under this subsection shall be prepared in accordance with generally accepted government auditing standards.’.

Subtitle E--Strengthening Debt Collection Programs

SEC. 16501. AUTHORIZATION OF APPROPRIATIONS FOR ENHANCING DEBT COLLECTION.

    (a) Title 31, United States Code, is amended by adding, after section 3720A, a section 3720B, as follows:

‘Sec. 3720B. Authorization of appropriations for enhancing debt collection

    ‘(a) To the extent and in the amounts provided in advance in appropriations acts--

      ‘(1) an amount not to exceed 1 percent of the delinquent debts collected for a program in one fiscal year is authorized to be credited in the following fiscal year to a special fund for such program;

      ‘(2) an amount not to exceed 10 percent of any sustained annual increase in delinquent debt collections, as defined by the Director of the Office of Management and Budget, is authorized to be credited to a special fund for such program; and

      ‘(3) from amounts credited under paragraphs (1) and (2), such sums as may be necessary are authorized to be appropriated for the improvement of that program’s debt collection activities, including, but not limited to, account and loan servicing, delinquent debt collection and asset disposition.

    ‘(b) Debt is defined as delinquent under standards prescribed or to be prescribed by the Secretary of the Treasury.

    ‘(c) For direct loan and loan guarantee programs subject to Title V of the Congressional Budget Act of 1974, amounts credited in accordance with section (a) shall be considered administrative costs and shall not be included in the estimated payments to the Government for the purpose of calculating the cost of such programs.’.

    (b) The table of sections for subchapter II of chapter 37 of title 31, United States Code, is amended by adding, after the item for section 3720A, the following new item:

      ‘Section 3720B. Authorization of appropriations for enhancing debt collection.’.

SEC. 16502. CONTRACTS FOR COLLECTION SERVICES.

    (a) Subsection 3701(d) of Title 31, United States Code, is amended--

      (1) by striking ‘and 3716-3719’ and inserting in lieu thereof ‘, 3716, and 3717’; and

      (2) by striking ‘, the Social Security Act (42 U.S.C. 301 et seq.),’.

    (b) Section 3701 of title 31, United States Code, is amended by adding at the end the following:

    ‘(e) Section 3718 of this title does not apply to a claim or debt under, or to an amount payable under, the Social Security Act (42 U.S.C. 301 et seq.) owed by a person receiving benefits under that Act or to a claim or debt under, or to an amount payable under, title 26 of the United States Code.’.

SEC. 16503. NOTIFICATION TO AGENCIES OF DEBTORS’ MAILING ADDRESSES.

    Section 3720A of title 31, United States Code is amended by striking ‘the individual’s home address.’ at the end of subsection (c) and inserting the following: ‘the person’s mailing address. Provision of this information is authorized by section 6103(m)(2) of the Internal Revenue Code (26 U.S.C. 6103(m)(2)).’.

Subtitle F--Improving Department of Justice Debt Collection

SEC. 16601. DEBT COLLECTION FUND.

    (a) Section 3011 of title 28, United States Code, is amended to read as follows:

‘Sec. 3011. Establishment of debt collection fund; assessment of surcharge on debt

    ‘(a) AUTHORIZATION OF APPROPRIATIONS-

      ‘(1) Establishment of debt collection Fund-

        (A) There is hereby established in the Treasury a Debt Collection Fund (hereafter referred to as ‘the Fund’), which shall be available to the Attorney General to the extent and in such amounts as are provided in advance in appropriations Acts solely for the purposes specified in paragraph (2).

        ‘(B) If at the end of any fiscal year, unappropriated balances in the Fund exceed $15,000,000, the excess balances shall be transferred to the general fund of the Treasury.

      ‘(2) The Attorney General may use amounts appropriated to the Fund to reimburse any appropriation or fund of the Department of Justice or any other executive agency for expenses incurred in conducting or providing support to debt collection litigation, enforcing judgments, and related activities pertaining to the collection of any debt or monies owed to the United States Government.

      ‘(3) Reimbursement received pursuant to paragraph (2) shall be used solely for the purposes specified in that paragraph under authorities available to the receiving appropriation or fund.

    ‘(b) Surcharge-

      ‘(1) Assessment of surcharge on debt-

        ‘(A) In any action in which the United States prevails on its claim for a debt, and subject to paragraph (b)(1)(B) and (b)(2), the court shall award the United States, and the Department of Justice shall collect and deposit, a surcharge of 10 percent of the total amount of any judgment or settlement which is approved by the court.

        ‘(B) Paragraph (b)(1)(A) shall not apply if--

          ‘(i) the United States receives an attorney’s fee in connection with the enforcement of the claim;

          ‘(ii) the law upon which the action or claim is based provides any other amount to cover such costs; or

          ‘(iii) the judgment or settlement is for a claim under title 26, United States Code.

        ‘(C) Notwithstanding 31 U.S.C. 3302 or any other statute affecting the crediting of collections, and pursuant to section (b)(2), for fiscal year 1994 and thereafter, surcharges collected pursuant to this section shall be deposited in, and collect to, the Fund.

      ‘(2) AUTHORITY TO AWARD AND CREDIT OF SURCHARGES- The authority of the court to award surcharges and of the Department of Justice to collect and deposit such surcharges pursuant to paragraph (b)(1) shall be available only to the extent provided in advance in appropriations Acts.’.

    (b) The table of sections for chapter 176 of Title 28, United States Code, is amended by amending the item for Section 3011 to read: ‘3011. Establishment of debt collection fund; assessment of surcharge on debt.’.

SEC. 16602. CONTRACTS FOR COLLECTION SERVICES.

    Subparagraph 3718(B)(1)(A) of title 31, United States Code, is amended by striking the following: ‘If the Attorney General makes a contract for legal services to be furnished in any judicial district of the United States under the first sentence of this paragraph, the Attorney General shall use his best efforts to obtain, from among attorneys regularly engaged in the private practice of law in such district, at least four such contracts with private individuals or firms in such district.’.

Subtitle G--Adjusting Civil Monetary Penalties for Inflation

SEC. 16701. ADJUSTING CIVIL MONETARY PENALTIES FOR INFLATION.

    The Federal Civil Penalties Inflation Adjustment Act of 1990 is amended by--

      (1) amending section 4 to read as follows: ‘The head of each agency shall--

      ‘(1) by regulation, no later than September 30, 1994, and at least once every 4 years thereafter, adjust each civil monetary penalty provided by law within the jurisdiction of the Federal agency, except for any penalty under title 26, United States Code, by the inflation adjustment described under section 5 and publish each such adjustment in the Federal Register; and

      ‘(2) provide a report to the Secretary of the Treasury by November 15 of each year on all penalties adjusted during the preceding fiscal year.’;

      (2) amending subsection 5(a) by striking ‘The adjustment described under paragraphs (4) and (5)(A) of section 4’ and inserting ‘The inflation adjustment’; and

      (3) adding, after section 6, a section 7, as follows: ‘Section 7. Any increase to a civil monetary penalty resulting from this Act shall apply only to violations which occur after the date any such increase takes effect.’.

TITLE XVII--YEAR-END SPENDING

SEC. 17001. YEAR-END SPENDING.

    Section 1301 of title 31, United States Code, is amended by adding the following new subsection at the end:

    ‘(e) Not to exceed 50 percent of unobligated balances remaining available at the end of one fiscal year from appropriations made available for salaries and expenses made for that year shall remain available through September 30 of the following fiscal year for each account for the same purposes. Not to exceed 2 percent of the funds so carried over may be used to pay cash awards to employees, as authorized by law, and not to exceed 3 percent of the funds may be used for employee training programs.’.