< Back to H.R. 3400 (103rd Congress, 1993–1994)

Text of the Government Reform and Savings Act of 1993

This bill was introduced in a previous session of Congress and was passed by the House on November 22, 1993 but was never passed by the Senate. The text of the bill below is as of Nov 15, 1993 (Reported by House Committee).

This is not the latest text of this bill.

Source: GPO

HR 3400 RH

Union Calendar No. 201

103d CONGRESS

1st Session

H. R. 3400

[Report No. 103-366, Parts I, II, III, IV, V, VI, VII, VIII, IX, and X]

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

NOVEMBER 15, 1993

Reported from the Committee on Science, Space, and Technology with amendments

[In Title II insert the part printed in italic]

NOVEMBER 15, 1993

Reported from the Committee on Veterans’ Affairs with amendments

[In Title XII omit the part struck through and insert the part printed in italic]

NOVEMBER 15, 1993

Reported from the Committee on Post Office and Civil Service with amendments

[In Title XIII omit the part struck through and insert the part printed in italic]

NOVEMBER 15, 1993

Reported from the Committee on Public Works and Transportation with amendments

[In Titles III and XI omit the part struck through and insert the part printed in italic]

NOVEMBER 15, 1993

Reported from the Committee on Natural Resources with amendments

[In Titles IV and VII omit the part struck through, insert the part printed in italic and amend the table of contents]

NOVEMBER 15, 1993

Reported from the Committee on House Administration with an amendment

[In Title XIV omit the part struck through and insert the part printed in italic]

NOVEMBER 15, 1993

Reported from the Committee on Merchant Marine and Fisheries with amendments

[In Title XI omit the part in bold parentheses and insert the part printed in boldface roman]

NOVEMBER 15, 1993

Reported from the Committee on the Judiciary with amendments

[In Titles VIII and XVI omit the part struck through]

NOVEMBER 15, 1993

Reported from the Committee on Agriculture with amendments

[In Title I omit the part struck through, insert the part printed in italic, and amend the table of contents]

NOVEMBER 15, 1993

Reported from the Committee on Banking, Finance and Urban Affairs with an amendment

[In Title VI omit the part struck through and insert the part printed in italic]

NOVEMBER 15, 1993

Committees on Armed Services, Education and Labor, Energy and Commerce, Foreign Affairs, Government Operations, Permanent Select Committee on Intelligence, and Ways and Means discharged; committed to the Committee of the Whole House on the State of the Union and ordered to be printed


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

[Struck out->] Subtitle B--Eliminate Federal Support for Wool and Mohair [<-Struck out]

Subtitle B--Eliminating Federal Support for Honey

[Struck out->] Subtitle C--Eliminate Federal Support for Honey [<-Struck out]

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

[Struck out->] Subtitle C--Power Marketing Administration Debt Buyout [<-Struck out]

Subtitle C--Power Marketing Administrations

Subtitle D--Termination of Advanced Liquid Metal Reactor Program

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

[Struck out->] Subtitle A--Improve the Federal Helium Program [<-Struck out]

Subtitle [Struck out->] B [<-Struck out] A--Improve Minerals Management Service Royalty Collection

Subtitle [Struck out->] C [<-Struck out] B--Phase Out the Mineral Institute Program

Subtitle C--Reorganization of Bureau of Indian Affairs

Subtitle D--Termination of Annual Direct Grant Assistance

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

Subtitle D--Capital Budgeting

Subtitle E--Public Buildings

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

[Struck out->]

TITLE I--DEPARTMENT OF AGRICULTURE

[<-Struck out]

[Struck out->]

Subtitle A--Department of Agriculture Reorganization

[<-Struck out]

[Struck out->] SEC. 1001. DEPARTMENT OF AGRICULTURE REORGANIZATION. [<-Struck out]

    [Struck out->] 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. [<-Struck out]

[Struck out->]

Subtitle B--Eliminate Federal Support for Wool and Mohair

[<-Struck out]

[Struck out->] SEC. 1101. AMENDMENTS TO SECTION 703 OF NATIONAL WOOL ACT OF 1954. [<-Struck out]

    [Struck out->] Section 703 of the National Wool Act of 1954 (7 U.S.C. 1782) is amended-- [<-Struck out]

      [Struck out->] (1) by striking subsection (a) and inserting the following new subsection: [<-Struck out]

    [Struck out->]
    ‘(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.’; [<-Struck out]

      [Struck out->] (2) in subsection (b)-- [<-Struck out]

        [Struck out->] (A) in paragraph (2), by striking ‘1997’ and inserting ‘1995’; and [<-Struck out]

        [Struck out->] (B) by striking paragraph (3) and inserting the following new paragraph: [<-Struck out]

    [Struck out->]
    ‘(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 [<-Struck out]

      [Struck out->] (3) by adding at the end the following new paragraph: [<-Struck out]

    [Struck out->]
    ‘(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. [<-Struck out]

    [Struck out->]
    ‘(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.’. [<-Struck out]

[Struck out->] SEC. 1102. AMENDMENT TO SECTION 704 OF NATIONAL WOOL ACT OF 1954. [<-Struck out]

    [Struck out->] 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.’. [<-Struck out]

[Struck out->] SEC. 1103. REPEAL OF NATIONAL WOOL ACT OF 1954. [<-Struck out]

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

    [Struck out->] (b) APPLICATION- The repeal made by subsection (a) shall apply to both the wool and mohair programs. [<-Struck out]

    [Struck out->] (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. [<-Struck out]

[Struck out->] SEC. 1104. REPEAL OF SECTION 702 OF NATIONAL WOOL ACT OF 1954, ETC. [<-Struck out]

    [Struck out->] (a) Section 702 of the National Wool Act of 1954 (7 U.S.C. 1781) is repealed. [<-Struck out]

    [Struck out->] (b) Section 703 of such Act (7 U.S.C. 1782) is amended-- [<-Struck out]

      [Struck out->] (1) by striking the section heading and inserting the following new section heading: ‘SUPPORT PRICE FOR WOOL AND MOHAIR’; [<-Struck out]

      [Struck out->] (2) in subsection (b)(1)(i), by striking ‘such price support’ and inserting ‘the support price’; and [<-Struck out]

      [Struck out->] (3) in subsection (d), by striking ‘price support’ and inserting ‘support under this section’. [<-Struck out]

    [Struck out->] (c) Section 704 of such Act (7 U.S.C. 1783) is amended-- [<-Struck out]

      [Struck out->] (1) by striking the section heading and inserting the following new section heading: [<-Struck out]

[Struck out->]
‘SEC. 704. PAYMENTS.’; [<-Struck out]

      [Struck out->] and [<-Struck out]

      [Struck out->] (2) in subsection (a), by striking ‘If payments are utilized as a means of price support, the’ and inserting ‘The’. [<-Struck out]

    [Struck out->] (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’. [<-Struck out]

[Struck out->] SEC. 1105. SAVINGS PROVISION. [<-Struck out]

    [Struck out->] 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. [<-Struck out]

[Struck out->]

Subtitle C--Eliminate Federal Support for Honey

[<-Struck out]

[Struck out->] SEC. 1201. AMENDMENTS TO SECTION 207 OF AGRICULTURAL ACT OF 1949. [<-Struck out]

    [Struck out->] Section 207 of the Agricultural Act of 1949 (7 U.S.C. 1446h) is amended-- [<-Struck out]

      [Struck out->] (1) by striking ‘1998’ each place it appears, in subsections (a), (c), and (j), and inserting ‘1995’; [<-Struck out]

      [Struck out->] (2) by striking ‘loan’ each place it appears except for subsection (d), and inserting ‘nonrecourse loan’; and [<-Struck out]

      [Struck out->] (3) in subsection (a), by striking paragraphs (3), (4), and (5) and inserting the following new paragraph: [<-Struck out]

      [Struck out->]
      ‘(4)(i) No loans, purchases, or payments shall be made for the 1996 and subsequent crop years. [<-Struck out]

      [Struck out->]
      ‘(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. [<-Struck out]

      [Struck out->]
      ‘(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.’. [<-Struck out]

[Struck out->] SEC. 1202. FURTHER AMENDMENTS TO SECTION 207 OF AGRICULTURAL ACT OF 1949. [<-Struck out]

    [Struck out->] Section 207 of the Agricultural Act of 1949 (7 U.S.C. 1446h) is amended-- [<-Struck out]

      [Struck out->] (1) After subsection (b)(2), by inserting the following: [<-Struck out]

      [Struck out->]
      ‘(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-- [<-Struck out]

        [Struck out->]
        ‘(i) the amount requested for a nonrecourse loan, or [<-Struck out]

        [Struck out->]
        ‘(ii) the most recent five year average of previous loan placements. [<-Struck out]

      [Struck out->]
      ‘(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.’; [<-Struck out]

      [Struck out->] (2) In paragraphs (3) and (4), by striking ‘(3)’ and ‘(4)’ and inserting ‘(4)’ and ‘(5)’; and [<-Struck out]

      [Struck out->] (3) After subsection (c)(2), by inserting the following new paragraph: [<-Struck out]

      [Struck out->]
      ‘(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-- [<-Struck out]

        [Struck out->]
        ‘(i) the amount requested for honey eligible for nonrecourse loans, or [<-Struck out]

        [Struck out->]
        ‘(ii) the average amount received in loan deficiency payments for the previous five years.’. [<-Struck out]

[Struck out->] SEC. 1203. AMENDMENTS TO SECTION 405A OF AGRICULTURAL ACT OF 1949. [<-Struck out]

    [Struck out->] Section 405A of the Agricultural Act of 1949 (7 U.S.C. 1425a) is amended-- [<-Struck out]

      [Struck out->] (1) in subsection (a), by striking ‘$125,000’ and inserting ‘$75,000’; and [<-Struck out]

      [Struck out->] (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.’. [<-Struck out]

[Struck out->] SEC. 1204. REPEAL OF SECTION 207 OF AGRICULTURAL ACT OF 1949. [<-Struck out]

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

    [Struck out->] (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. [<-Struck out]

[Struck out->] SEC. 1205. SAVINGS PROVISION. [<-Struck out]

    [Struck out->] 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. [<-Struck out]

TITLE I--DEPARTMENT OF AGRICULTURE

Subtitle A--Department of Agriculture Reorganization

SEC. 1001. DEPARTMENT OF AGRICULTURE REORGANIZATION.

    (a) IN GENERAL- The Secretary of Agriculture shall (1) consolidate field, regional, and national offices within the Department of Agriculture and (2) reduce personnel by not less than 7,500 staff years, so as to achieve a reduction in expenditures by the Department of not less than $1,640,000,000 during the period fiscal years 1995 through 1999.

    (b) AUTHORITIES- In consolidating offices and reducing personnel as required by subsection (a), the Secretary shall take such action on the basis of the powers vested in the Secretary under other laws.

Subtitle B--Eliminating Federal Support for Honey

SEC. 1101. AMENDMENTS TO SECTION 207 OF THE AGRICULTURAL ACT OF 1949.

    (a) Section 207(a) of the Agricultural Act of 1949 is amended to read as follows:

    ‘(a) IN GENERAL- For each of the 1991 through 1995 crops of honey, the price of honey shall be supported through loans, purchases, or other operations, except that for the 1994 and 1995 crops, the price of honey shall be supported through recourse loans.

      ‘(1) For the 1991 through 1993 crop years, the rate of support shall be not less than 53.8 cents per pound.

      ‘(2) For the 1994 and 1995 crop years, the Secretary shall provide recourse loans to producers at such a rate that minimizes costs and forfeitures, except that such rate shall not be less than 44 cents a pound. Section 407 shall not be applicable to honey forfeited to the Commodity Credit Corporation under loans made under this paragraph.

      ‘(3) A producer who fails to repay a loan made under paragraph (2) by the end of the crop year following the crop year for which such loan was made shall be ineligible for a loan under this section for subsequent crop years, except that the Secretary may waive this provision in any case where in which the Secretary determines that the failure to repay the loan was due to hardship conditions or circumstances beyond the control of the producer.’.

    (b) Section 207(b) of the Agricultural Act of 1949 is amended by striking ‘for a crop’ and inserting ‘for the 1991 through 1993 crops’.

    (c) Section 207(c) of the Agricultural Act of 1949 is amended by striking ‘1998’ and inserting ‘1993’.

    (d) Section 207(e) of the Agricultural Act of 1949 is amended by--

      (1) striking subparagraphs (D) through (G);

      (2) inserting ‘and’ after the semicolon following subparagraph (B); and

      (3) changing the semicolon following subparagraph (C) to a period.

    (e) Section 207(j) of the Agricultural Act of 1949 is amended by striking ‘1998’ and inserting ‘1995’.

SEC. 1102. AMENDMENT TO SECTION 405 OF THE AGRICULTURAL ACT OF 1949.

    Section 405(a) of the Agricultural Act of 1949 is amended by striking in the first sentence ‘section 405A’ and inserting ‘sections 207 and 405A’.

SEC. 1103. AMENDMENTS TO SECTION 405A OF THE AGRICULTURAL ACT OF 1949.

    Section 405A(a) of the Agricultural Act of 1949 is amended by striking all that follows ‘1992 crop year,’ and inserting ‘and $150,000 in the 1993 crop year.’.

SEC. 1104. 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.

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. It is the sense of Congress that such a proposed system, contingent on the provision of adequate resources to fully meet the national security interests of the United States, shall be operated as a civil system by the Department of Commerce. 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. The National Aeronautics and Space Administration and the National Oceanic and Atmospheric Administration shall jointly develop a plan to implement a program modelled after the Operational Satellite Improvement Program for the purpose of making incremental enhancements in operational weather satellite systems. The goal of the plan shall be to achieve these enhancements in a cost effective manner by implementing procedures aimed at avoiding duplication of effort, cost overruns, and schedule delays. The Administrators of the National Aeronautics and Space Administration and the National Oceanic and Atmospheric Administration shall submit to Congress no later than April 30, 1994, a report detailing the elements of the plan and outlining savings in budget authority and budget outlays projected through fiscal year 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.

    [Struck out->] Notwithstanding any other provision of law, the [<-Struck out] (a) DEVELOPMENT OF PLAN- The Secretary of the Army shall develop a plan to 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.

    (b) TRANSMITTAL AND APPROVAL OF PLAN- The Secretary of the Army shall transmit to Congress the plan developed under subsection (a) for approval. The Secretary shall not implement such plan until it is approved by Congress.

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.’.

[Struck out->]

Subtitle C--Power Marketing Administration Debt Buyout

[<-Struck out]

[Struck out->] PART 1--BONNEVILLE POWER ADMINISTRATION DEBT BUYOUT [<-Struck out]

[Struck out->] SEC. 4201. SHORT TITLE. [<-Struck out]

    [Struck out->] This part may be cited as the ‘Bonneville Power Administration Repayment Bonds Act’. [<-Struck out]

[Struck out->] SEC. 4202. SALE OF BONDS. [<-Struck out]

    [Struck out->] Notwithstanding any other law and without fiscal year limitation-- [<-Struck out]

      [Struck out->] (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-- [<-Struck out]

        [Struck out->] (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 [<-Struck out]

        [Struck out->] (B) refund Bonds; [<-Struck out]

      [Struck out->] (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; [<-Struck out]

      [Struck out->] (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; [<-Struck out]

      [Struck out->] (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; [<-Struck out]

      [Struck out->] (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; [<-Struck out]

      [Struck out->] (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-- [<-Struck out]

        [Struck out->] (A) the payment of the principal, interest, and premium, if any, on Bonds issued under this part; [<-Struck out]

        [Struck out->] (B) the purchase or redemption of those Bonds; [<-Struck out]

        [Struck out->] (C) the payment of costs and expenses incidental to this payment, purchase, and redemption; or [<-Struck out]

        [Struck out->] (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; [<-Struck out]

      [Struck out->] (7) Bonds issued under this part-- [<-Struck out]

        [Struck out->] (A) shall be issuable and payable through the Federal wire system; [<-Struck out]

        [Struck out->] (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; [<-Struck out]

        [Struck out->] (C) may be held without limitation by national banks; [<-Struck out]

        [Struck out->] (D) qualify as legal investments for banks, savings and loan institutions, and credit unions; and [<-Struck out]

        [Struck out->] (E) are eligible collateral for Federal advances and discounts, for deposits of the United States, and for the Treasury tax and loan accounts; [<-Struck out]

      [Struck out->] (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; [<-Struck out]

      [Struck out->] (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; [<-Struck out]

      [Struck out->] (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; [<-Struck out]

      [Struck out->] (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-- [<-Struck out]

        [Struck out->] (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; [<-Struck out]

        [Struck out->] (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 [<-Struck out]

        [Struck out->] (C) are not subject to apportionment under subchapter II of chapter 15 of title 31, United States Code; [<-Struck out]

      [Struck out->] (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; [<-Struck out]

      [Struck out->] (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 [<-Struck out]

      [Struck out->] (14) the Administrator shall consult with the Secretary of the Treasury regarding the timing and structure of the bonds issued under this part. [<-Struck out]

[Struck out->] SEC. 4203. PAYMENT OF BOND COSTS. [<-Struck out]

    [Struck out->] 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’. [<-Struck out]

[Struck out->] SEC. 4204. COMBINED REPAYMENT STUDY. [<-Struck out]

    [Struck out->] 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: [<-Struck out]

      [Struck out->]
      ‘(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.’. [<-Struck out]

[Struck out->] SEC. 4205. DEFINITIONS. [<-Struck out]

    [Struck out->] For the purposes of this part-- [<-Struck out]

      [Struck out->] (1) ‘Administrator’ means the Administrator of the Bonneville Power Administration; and [<-Struck out]

      [Struck out->] (2) ‘appropriated capital investment made in the Federal Columbia River Power System’ means an investment made by the United States that-- [<-Struck out]

        [Struck out->] (A) is made using Federal appropriations; [<-Struck out]

        [Struck out->] (B) is for a project or separable feature of a project that is placed in service; [<-Struck out]

        [Struck out->] (C) is allocated to power and required by law to be repaid from the power revenues by the Administrator; [<-Struck out]

        [Struck out->] (D) is not allocated or suballocated to irrigation; and [<-Struck out]

        [Struck out->] (E) excludes an investment made using funds borrowed under section 13 of the Federal Columbia River Transmission System Act. [<-Struck out]

[Struck out->] PART 2--OTHER POWER MARKETING ADMINISTRATIONS DEBT BUYOUT [<-Struck out]

[Struck out->] SEC. 4206. SHORT TITLE. [<-Struck out]

    [Struck out->] This part may be cited as the ‘Power Marketing Administrations Financing Act’. [<-Struck out]

[Struck out->] SEC. 4207. DEFINITIONS. [<-Struck out]

    [Struck out->] For the purposes of this part-- [<-Struck out]

      [Struck out->] (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; [<-Struck out]

      [Struck out->] (2) ‘Fund’ means the Power Marketing Administration Sinking Fund established under section 4209; and [<-Struck out]

      [Struck out->] (3) ‘Power marketing administration’ means the Southeastern Power Administration, the Southwestern Power Administration, and the Western Area Power Administration. [<-Struck out]

[Struck out->] SEC. 4208. REPAYMENT OF EXISTING INDEBTEDNESS. [<-Struck out]

    [Struck out->] (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. [<-Struck out]

    [Struck out->] (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. [<-Struck out]

    [Struck out->] (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). [<-Struck out]

[Struck out->] SEC. 4209. POWER MARKETING ADMINISTRATION SINKING FUND. [<-Struck out]

    [Struck out->] (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. [<-Struck out]

    [Struck out->] (b) Balances in the Fund shall earn interest at a rate determined by the Secretary of the Treasury. [<-Struck out]

    [Struck out->] (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. [<-Struck out]

    [Struck out->] (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. [<-Struck out]

    [Struck out->] (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. [<-Struck out]

[Struck out->] SEC. 4210. REVENUE BONDS. [<-Struck out]

    [Struck out->] (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. [<-Struck out]

    [Struck out->] (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-- [<-Struck out]

      [Struck out->] (1) the payment of the principal, interest, and premium, if any, on bonds issued under this part; [<-Struck out]

      [Struck out->] (2) their purchase or redemption; [<-Struck out]

      [Struck out->] (3) the payment of costs and expenses incidental to their payment, purchase, and redemption; or [<-Struck out]

      [Struck out->] (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. [<-Struck out]

    [Struck out->] (c) Bonds issued under this part-- [<-Struck out]

      [Struck out->] (1) shall be issuable and negotiable through the Federal wire system; [<-Struck out]

      [Struck out->] (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; [<-Struck out]

      [Struck out->] (3) may be held, without limitation, by national banks; [<-Struck out]

      [Struck out->] (4) qualify as legal instruments for banks, savings and loan institutions, and credit unions; and [<-Struck out]

      [Struck out->] (5) are eligible collateral for Federal advances and discounts, for deposits of the United States, and for Treasury tax and loan accounts. [<-Struck out]

    [Struck out->] (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. [<-Struck out]

    [Struck out->] (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. [<-Struck out]

    [Struck out->] (f) These bonds are not intended to be and are not secured by the full faith and credit of the United States. [<-Struck out]

    [Struck out->] (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-- [<-Struck out]

      [Struck out->] (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; [<-Struck out]

      [Struck out->] (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 [<-Struck out]

      [Struck out->] (3) are not subject to apportionment under subchapter II of chapter 15 of title 31, United States Code. [<-Struck out]

    [Struck out->] (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. [<-Struck out]

Subtitle C--Power Marketing Administrations

SEC. 4201. POWER MARKETING ADMINISTRATIONS REFINANCING STUDY.

    The Administrators of the Southeastern, Southwestern and Western Area Power Administrations, in consultation with their respective firm power contractors and other interested parties (including, where applicable, the Bureau of Reclamation), shall study refinancing options, including modifications to existing financial and accounting practices that may be required to effectively and efficiently issue and manage revenue bonds. Such refinancing options shall, for each of the power systems they administer, satisfy their respective repayment obligations to the United States Treasury without causing any increase in their respective firm power rates beyond the rates that would otherwise result under rate-setting policies and practices in effect on October 1, 1993. The results of such studies shall be submitted no later than May 1, 1994, to the Speaker of the House of Representatives and the President of the Senate. Such studies shall be made within the limits of existing funding, or, if necessary, with funds contributed by firm power contractors.

SEC. 4202. BONNEVILLE POWER ADMINISTRATION REFINANCING STUDY.

    The Administrator of the Bonneville Power Administration, in consultation with his customers and constituents, shall study options, including an open market buyout, a Treasury buyout, or any other reasonable alternative that would lead to a permanent resolution of the repayment reform initiative directed at Bonneville’s appropriation investment repayment obligation. Such refinancing options shall satisfy the outstanding appropriated investment repayment obligation, without increasing rates beyond the rates that would otherwise result under rate-setting policies and practices in effect on October 1, 1993. The result of this study shall be submitted to the Speaker of the House of Representatives and the President of the Senate no later than March 1, 1994.

Subtitle D--Termination of Advanced Liquid Metal Reactor Program

SEC. 4301. TERMINATION OF ADVANCED LIQUID METAL REACTOR PROGRAM.

    (a) IN GENERAL- No amount of funds provided for any fiscal year may be obligated by the Secretary of Energy after the date of the enactment of this Act for the civilian portion of the advanced liquid metal reactor program, including--

      (1) the program’s promotion of the use of such reactors for the disposal of high-level radioactive waste; and

      (2) Department of Energy support for regulatory applications to the Nuclear Regulatory Commission for design certification for advanced liquid metal reactors or related licensed facilities.

    (b) PROHIBITION OF OTHER USES- The amount of funds available on the date of the enactment of this Act for obligation for the program described in subsection (a) shall not be available for obligation by the Secretary of Energy after such date for any other purpose.

    (c) EXCEPTION- Subsections (a) and (b) shall not apply to obligations required to be incurred in terminating the program described in subsection (a).

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.’.

[Struck out->]

TITLE VI--DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[<-Struck out]

[Struck out->]

Subtitle A--Multifamily Property Disposition

[<-Struck out]

[Struck out->] SEC. 6001. MULTIFAMILY PROPERTY DISPOSITION. [<-Struck out]

    [Struck out->] (a) FINDINGS- The Congress finds that-- [<-Struck out]

      [Struck out->] (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; [<-Struck out]

      [Struck out->] (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; [<-Struck out]

      [Struck out->] (3) the cost to the Federal Government of owning and maintaining multifamily housing projects escalated to approximately $250,000,000 in fiscal year 1992; [<-Struck out]

      [Struck out->] (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; [<-Struck out]

      [Struck out->] (5) the inventory of insured and formerly insured multifamily housing projects is rapidly deteriorating, endangering tenants and neighborhoods; [<-Struck out]

      [Struck out->] (6) over 5 million families today have a critical need for housing that is affordable and habitable; and [<-Struck out]

      [Struck out->] (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. [<-Struck out]

    [Struck out->] (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: [<-Struck out]

[Struck out->]
‘SEC. 203. MANAGEMENT AND DISPOSITION OF MULTIFAMILY HOUSING PROJECTS. [<-Struck out]

    [Struck out->]
    ‘(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-- [<-Struck out]

      [Struck out->]
      ‘(1) is consistent with the National Housing Act and this section; [<-Struck out]

      [Struck out->]
      ‘(2) will protect the financial interests of the Federal Government; and [<-Struck out]

      [Struck out->]
      ‘(3) will, in the least costly fashion among reasonable available alternatives, further the goals of-- [<-Struck out]

        [Struck out->]
        ‘(A) preserving housing so that it can remain available to and affordable by low-income persons; [<-Struck out]

        [Struck out->]
        ‘(B) preserving and revitalizing residential neighborhoods; [<-Struck out]

        [Struck out->]
        ‘(C) maintaining existing housing stock in a decent, safe, and sanitary condition; [<-Struck out]

        [Struck out->]
        ‘(D) minimizing the involuntary displacement of tenants; [<-Struck out]

        [Struck out->]
        ‘(E) maintaining housing for the purpose of providing rental housing, cooperative housing, and homeownership opportunities for low-income persons; and [<-Struck out]

        [Struck out->]
        ‘(F) minimizing the need to demolish multifamily housing projects. [<-Struck out]

    [Struck out->] 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. [<-Struck out]

    [Struck out->]
    ‘(b) DEFINITIONS- For purposes of this section, the following definitions shall apply: [<-Struck out]

      [Struck out->]
      ‘(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. [<-Struck out]

      [Struck out->]
      ‘(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: [<-Struck out]

        [Struck out->]
        ‘(A) Below market interest rate mortgage insurance under the proviso of section 221(d)(5) of the National Housing Act. [<-Struck out]

        [Struck out->]
        ‘(B) Interest reduction payments made in connection with mortgages insured under section 236 of the National Housing Act. [<-Struck out]

        [Struck out->]
        ‘(C) Direct loans made under section 202 of the Housing Act of 1959. [<-Struck out]

        [Struck out->]
        ‘(D) Assistance in the form of-- [<-Struck out]

          [Struck out->]
          ‘(i) rent supplement payments under section 101 of the Housing and Urban Development Act of 1965; [<-Struck out]

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

          [Struck out->]
          ‘(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), [<-Struck out]

        [Struck out->] 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. [<-Struck out]

      [Struck out->]
      ‘(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. [<-Struck out]

      [Struck out->]
      ‘(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. [<-Struck out]

    [Struck out->]
    ‘(c) Management or Disposition of Property- [<-Struck out]

      [Struck out->]
      ‘(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-- [<-Struck out]

        [Struck out->]
        ‘(A) satisfying the conditions of the disposition; [<-Struck out]

        [Struck out->]
        ‘(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; [<-Struck out]

        [Struck out->]
        ‘(C) responding to the needs of the tenants and working cooperatively with tenant organizations; [<-Struck out]

        [Struck out->]
        ‘(D) providing adequate organizational staff and financial resources to the project; and [<-Struck out]

        [Struck out->]
        ‘(E) meeting such other requirements as the Secretary may determine. [<-Struck out]

      [Struck out->]
      ‘(2) CONTRACTING FOR MANAGEMENT SERVICES- The Secretary is authorized, in carrying out this section-- [<-Struck out]

        [Struck out->]
        ‘(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-- [<-Struck out]

          [Struck out->]
          ‘(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; [<-Struck out]

          [Struck out->]
          ‘(ii) responding to the needs of the tenants and working cooperatively with tenant organizations; [<-Struck out]

          [Struck out->]
          ‘(iii) providing adequate organizational, staff, and other resources to implement a management program determined by the Secretary; and [<-Struck out]

          [Struck out->]
          ‘(iv) meeting such other requirements as the Secretary may determine; and [<-Struck out]

        [Struck out->]
        ‘(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). [<-Struck out]

    [Struck out->]
    ‘(d) MAINTENANCE OF HOUSING PROJECTS- [<-Struck out]

      [Struck out->]
      ‘(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-- [<-Struck out]

        [Struck out->]
        ‘(A) to the greatest extent possible, maintain all such occupied projects in a decent, safe, and sanitary condition; [<-Struck out]

        [Struck out->]
        ‘(B) to the greatest extent possible, maintain full occupancy in all such projects; and [<-Struck out]

        [Struck out->]
        ‘(C) maintain all such projects for purposes of providing rental or cooperative housing. [<-Struck out]

      [Struck out->]
      ‘(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). [<-Struck out]

    [Struck out->]
    ‘(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: [<-Struck out]

      [Struck out->]
      ‘(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. [<-Struck out]

        [Struck out->]
        ‘(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)-- [<-Struck out]

          [Struck out->]
          ‘(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); [<-Struck out]

          [Struck out->]
          ‘(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 [<-Struck out]

          [Struck out->]
          ‘(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). [<-Struck out]

        [Struck out->]
        ‘(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)-- [<-Struck out]

          [Struck out->]
          ‘(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 [<-Struck out]

          [Struck out->]
          ‘(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. [<-Struck out]

        [Struck out->]
        ‘(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-- [<-Struck out]

          [Struck out->]
          ‘(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; [<-Struck out]

          [Struck out->]
          ‘(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 [<-Struck out]

          [Struck out->]
          ‘(iii) the units described in clause (i) are located within the same market area. [<-Struck out]

        [Struck out->]
        ‘(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-- [<-Struck out]

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

            [Struck out->]
            ‘(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 [<-Struck out]

            [Struck out->]
            ‘(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 [<-Struck out]

          [Struck out->]
          ‘(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. [<-Struck out]

      [Struck out->]
      ‘(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. [<-Struck out]

      [Struck out->]
      ‘(3) OTHER ASSISTANCE- [<-Struck out]

        [Struck out->]
        ‘(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-- [<-Struck out]

          [Struck out->]
          ‘(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 [<-Struck out]

          [Struck out->]
          ‘(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. [<-Struck out]

        [Struck out->]
        ‘(B) DEFINITION- A unit shall be considered affordable under this paragraph if-- [<-Struck out]

          [Struck out->]
          ‘(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 [<-Struck out]

          [Struck out->]
          ‘(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. [<-Struck out]

        [Struck out->]
        ‘(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. [<-Struck out]

      [Struck out->]
      ‘(4) TRANSFER FOR USE UNDER OTHER PROGRAMS OF THE SECRETARY- [<-Struck out]

        [Struck out->]
        ‘(A) IN GENERAL- Enter into an agreement providing for the transfer of a multifamily housing project-- [<-Struck out]

          [Struck out->]
          ‘(i) to a public housing agency for use of the project as public housing; or [<-Struck out]

          [Struck out->]
          ‘(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. [<-Struck out]

        [Struck out->]
        ‘(B) REQUIREMENTS FOR AGREEMENT- The agreement described in subparagraph (A) shall-- [<-Struck out]

          [Struck out->]
          ‘(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 [<-Struck out]

          [Struck out->]
          ‘(ii) ensure that no current tenant will be displaced as a result of actions taken under this paragraph. [<-Struck out]

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

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

        [Struck out->]
        ‘(A) authority for such loans is provided in advance in an appropriations Act; [<-Struck out]

        [Struck out->]
        ‘(B) such loans are for a term of not more than 5 years; [<-Struck out]

        [Struck out->]
        ‘(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 [<-Struck out]

        [Struck out->]
        ‘(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. [<-Struck out]

      [Struck out->]
      ‘(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. [<-Struck out]

      [Struck out->]
      ‘(3) Alternative uses- [<-Struck out]

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

          [Struck out->]
          ‘(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 [<-Struck out]

          [Struck out->]
          ‘(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. [<-Struck out]

        [Struck out->]
        ‘(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. [<-Struck out]

    [Struck out->]
    ‘(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. [<-Struck out]

    [Struck out->]
    ‘(h) Contract Requirements- [<-Struck out]

      [Struck out->]
      ‘(1) Contract term- [<-Struck out]

        [Struck out->]
        ‘(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 [<-Struck out]

        [Struck out->]
        ‘(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. [<-Struck out]

      [Struck out->]
      ‘(2) Contract rent- [<-Struck out]

        [Struck out->]
        ‘(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. [<-Struck out]

        [Struck out->]
        ‘(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-- [<-Struck out]

          [Struck out->]
          ‘(i) provide project-based section 8 rental assistance; and [<-Struck out]

          [Struck out->]
          ‘(ii)(I) provide up-front grants for the necessary cost of rehabilitation; or [<-Struck out]

          [Struck out->]
          ‘(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). [<-Struck out]

    [Struck out->]
    ‘(i) Disposition Plan- [<-Struck out]

      [Struck out->]
      ‘(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. [<-Struck out]

      [Struck out->]
      ‘(2) Community and tenant input into disposition plans and sales- [<-Struck out]

        [Struck out->]
        ‘(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. [<-Struck out]

      [Struck out->]
      ‘(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. [<-Struck out]

      [Struck out->]
      ‘(C) TECHNICAL ASSISTANCE- [<-Struck out]

          [Struck out->]
          ‘(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. [<-Struck out]

          [Struck out->]
          ‘(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. [<-Struck out]

    [Struck out->]
    ‘(j) RIGHT OF FIRST REFUSAL- [<-Struck out]

      [Struck out->]
      ‘(1) PROCEDURE- [<-Struck out]

        [Struck out->]
        ‘(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. [<-Struck out]

        [Struck out->]
        ‘(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. [<-Struck out]

        [Struck out->]
        ‘(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. [<-Struck out]

        [Struck out->]
        ‘(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. [<-Struck out]

      [Struck out->]
      ‘(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. [<-Struck out]

      [Struck out->]
      ‘(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. [<-Struck out]

      [Struck out->]
      ‘(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-- [<-Struck out]

        [Struck out->]
        ‘(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 [<-Struck out]

        [Struck out->]
        ‘(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-- [<-Struck out]

          [Struck out->]
          ‘(i) 45 days to express interest in the project; and [<-Struck out]

          [Struck out->]
          ‘(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. [<-Struck out]

    [Struck out->]
    ‘(k) DISPLACEMENT OF TENANTS AND RELOCATION ASSISTANCE- [<-Struck out]

      [Struck out->]
      ‘(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. [<-Struck out]

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

        [Struck out->]
        ‘(A) to return, whenever possible, to a repaired unit; [<-Struck out]

        [Struck out->]
        ‘(B) to occupy a unit in another multifamily housing project owned by the Secretary; [<-Struck out]

        [Struck out->]
        ‘(C) to obtain housing assistance under the United States Housing Act of 1937; or [<-Struck out]

        [Struck out->]
        ‘(D) to receive any other available relocation assistance as the Secretary determines to be appropriate. [<-Struck out]

    [Struck out->]
    ‘(l) MORTGAGE AND PROJECT SALES- [<-Struck out]

      [Struck out->]
      ‘(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. [<-Struck out]

      [Struck out->]
      ‘(2) SALE OF CERTAIN PROJECTS- The Secretary may not approve the sale of any subsidized project-- [<-Struck out]

        [Struck out->]
        ‘(A) that is subject to a mortgage held by the Secretary; or [<-Struck out]

        [Struck out->]
        ‘(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. [<-Struck out]

      [Struck out->]
      ‘(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-- [<-Struck out]

        [Struck out->]
        ‘(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 [<-Struck out]

        [Struck out->]
        ‘(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. [<-Struck out]

      [Struck out->]
      ‘(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. [<-Struck out]

    [Struck out->]
    ‘(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-- [<-Struck out]

      [Struck out->]
      ‘(1) the name, address, and size of each project; [<-Struck out]

      [Struck out->]
      ‘(2) the nature and date of assignment; [<-Struck out]

      [Struck out->]
      ‘(3) the status of the mortgage; [<-Struck out]

      [Struck out->]
      ‘(4) the physical condition of the project; [<-Struck out]

      [Struck out->]
      ‘(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; [<-Struck out]

      [Struck out->]
      ‘(6) the proportion of units in a project that are vacant; [<-Struck out]

      [Struck out->]
      ‘(7) the date on which the Secretary became mortgagee in possession; [<-Struck out]

      [Struck out->]
      ‘(8) the date and conditions of any foreclosure sale; [<-Struck out]

      [Struck out->]
      ‘(9) the date of acquisition by the Secretary; [<-Struck out]

      [Struck out->]
      ‘(10) the date and conditions of any property disposition sale; [<-Struck out]

      [Struck out->]
      ‘(11) a description of actions undertaken pursuant to this section, including-- [<-Struck out]

        [Struck out->]
        ‘(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; [<-Struck out]

        [Struck out->]
        ‘(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; [<-Struck out]

        [Struck out->]
        ‘(C) a description of actions taken to restructure or commence foreclosure on delinquent multifamily mortgages held by the Department; and [<-Struck out]

        [Struck out->]
        ‘(D) a description of actions taken to monitor and prevent the default of multifamily housing mortgages held by the Federal Housing Administration; [<-Struck out]

      [Struck out->]
      ‘(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-- [<-Struck out]

        [Struck out->]
        ‘(A) the costs associated with such delegation; [<-Struck out]

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

        [Struck out->]
        ‘(C) necessary oversight required by Department personnel, including anticipated personnel hours devoted to such oversight; [<-Struck out]

        [Struck out->]
        ‘(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 [<-Struck out]

        [Struck out->]
        ‘(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; [<-Struck out]

      [Struck out->]
      ‘(13) a description of the activities carried out under subsection (j) during the preceding year; and [<-Struck out]

      [Struck out->]
      ‘(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.’. [<-Struck out]

    [Struck out->] (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. [<-Struck out]

[Struck out->]

Subtitle B--Merger of the Certificate and Voucher Programs

[<-Struck out]

[Struck out->] SEC. 6101. MERGER OF CERTIFICATE AND VOUCHER PROGRAMS. [<-Struck out]

    [Struck out->] The United States Housing Act of 1937 is amended as provided in subsections (a) through (d) of this section. [<-Struck out]

    [Struck out->] (a) MERGER OF CERTIFICATE AND VOUCHER PROGRAMS- Section 8(o) is amended to read as follows: [<-Struck out]

    [Struck out->]
    ‘(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. [<-Struck out]

    [Struck out->]
    ‘(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: [<-Struck out]

      [Struck out->]
      ‘(i) 30 percent of the family’s monthly adjusted income; [<-Struck out]

      [Struck out->]
      ‘(ii) 10 percent of the family’s monthly income; or [<-Struck out]

      [Struck out->]
      ‘(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. [<-Struck out]

    [Struck out->]
    ‘(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: [<-Struck out]

      [Struck out->]
      ‘(i) 30 percent of the family’s monthly adjusted income; [<-Struck out]

      [Struck out->]
      ‘(ii) 10 percent of the family’s monthly income; or [<-Struck out]

      [Struck out->]
      ‘(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. [<-Struck out]

    [Struck out->]
    ‘(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). [<-Struck out]

    [Struck out->]
    ‘(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. [<-Struck out]

    [Struck out->]
    ‘(4) At the time a family initially receives assistance under the certificate program, a family shall qualify as-- [<-Struck out]

      [Struck out->]
      ‘(A) a very low-income family; [<-Struck out]

      [Struck out->]
      ‘(B) a family previously assisted under this Act; or [<-Struck out]

      [Struck out->]
      ‘(C) a low-income family that meets eligibility criteria specified by the Secretary. [<-Struck out]

    [Struck out->]
    ‘(5) Reviews of family income shall be made at least annually. [<-Struck out]

    [Struck out->]
    ‘(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. [<-Struck out]

    [Struck out->]
    ‘(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-- [<-Struck out]

      [Struck out->]
      ‘(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; [<-Struck out]

      [Struck out->]
      ‘(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; [<-Struck out]

      [Struck out->]
      ‘(iii) assisting youth, upon discharge from foster care, in cases in which return to the family or extended family or adoption is not available; [<-Struck out]

      [Struck out->]
      ‘(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 [<-Struck out]

      [Struck out->]
      ‘(v) achieving other objectives of national housing policy as affirmed by Congress. [<-Struck out]

    [Struck out->]
    ‘(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). [<-Struck out]

    [Struck out->]
    ‘(7) The Secretary shall require, for any unit, that-- [<-Struck out]

      [Struck out->]
      ‘(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 [<-Struck out]

      [Struck out->]
      ‘(B) the public housing agency make annual or more frequent inspections during the contract term. [<-Struck out]

    [Struck out->] 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. [<-Struck out]

    [Struck out->]
    ‘(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. [<-Struck out]

    [Struck out->]
    ‘(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. [<-Struck out]

    [Struck out->]
    ‘(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. [<-Struck out]

    [Struck out->]
    ‘(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. [<-Struck out]

    [Struck out->]
    ‘(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. [<-Struck out]

    [Struck out->]
    ‘(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. [<-Struck out]

    [Struck out->]
    ‘(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. [<-Struck out]

    [Struck out->]
    ‘(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. [<-Struck out]

    [Struck out->]
    ‘(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. [<-Struck out]

    [Struck out->]
    ‘(iii) The monthly assistance payment for assistance under this paragraph shall be determined in accordance with paragraph (2). [<-Struck out]

    [Struck out->]
    ‘(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. [<-Struck out]

    [Struck out->]
    ‘(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-- [<-Struck out]

      [Struck out->]
      ‘(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 [<-Struck out]

      [Struck out->]
      ‘(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. [<-Struck out]

    [Struck out->]
    ‘(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. [<-Struck out]

    [Struck out->]
    ‘(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. [<-Struck out]

    [Struck out->]
    ‘(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. [<-Struck out]

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

    [Struck out->]
    ‘(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. [<-Struck out]

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

    [Struck out->] (b) PORTABILITY- Section 8(r) is amended-- [<-Struck out]

      [Struck out->] (1) in each of paragraphs (1) and (3), by striking ‘subsection (b) or’; [<-Struck out]

      [Struck out->] (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 [<-Struck out]

      [Struck out->] (3) by adding the following new paragraph at the end: [<-Struck out]

      [Struck out->]
      ‘(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.’. [<-Struck out]

    [Struck out->] (c) HOMEOWNERSHIP OPTION- Section 8(y) is amended-- [<-Struck out]

      [Struck out->] (1) in paragraph (1)(A), by inserting before the semicolon ‘or owns or is acquiring shares in a cooperative’; [<-Struck out]

      [Struck out->] (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 [<-Struck out]

      [Struck out->] (3) by amending paragraph (2)(A) to read as follows: [<-Struck out]

        [Struck out->]
        ‘(A) DETERMINATION OF AMOUNT OF ASSISTANCE- [<-Struck out]

          [Struck out->]
          ‘(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: [<-Struck out]

            [Struck out->]
            ‘(I) 30 percent of the family’s monthly adjusted income; [<-Struck out]

            [Struck out->]
            ‘(II) 10 percent of the family’s monthly income; or [<-Struck out]

            [Struck out->]
            ‘(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. [<-Struck out]

          [Struck out->]
          ‘(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: [<-Struck out]

            [Struck out->]
            ‘(I) 30 percent of the family’s monthly adjusted income; [<-Struck out]

            [Struck out->]
            ‘(II) 10 percent of the family’s monthly income; or [<-Struck out]

            [Struck out->]
            ‘(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.’. [<-Struck out]

    [Struck out->] (d) TECHNICAL AND CONFORMING AMENDMENTS TO THE 1937 ACT; DELETION OF OBSOLETE PROVISIONS- [<-Struck out]

      [Struck out->] (1) The second and third sentences of section 8(a) are hereby repealed. [<-Struck out]

      [Struck out->] (2) Section 8(b) is amended by-- [<-Struck out]

        [Struck out->] (A) striking ‘RENTAL CERTIFICATES AND OTHER EXISTING HOUSING PROGRAMS- ’ and inserting ‘CERTIFICATES AND OTHER EXISTING HOUSING PROGRAMS- (1)’; and [<-Struck out]

        [Struck out->] (B) striking the second sentence. [<-Struck out]

      [Struck out->] (3) Section 8(c)(3) is amended by striking the subparagraph designation ‘(A)’ and striking all of subparagraph (B). [<-Struck out]

      [Struck out->] (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’. [<-Struck out]

      [Struck out->] (5) Sections 8(c) (5) and (7) are hereby repealed. [<-Struck out]

      [Struck out->] (6) Section 8(c)(8) is amended by inserting after ‘section’ the following: ‘(other than a contract under section 8(o)(13))’. [<-Struck out]

      [Struck out->] (7) Section 8(d)(1)(A) is amended-- [<-Struck out]

        [Struck out->] (A) by inserting after the subparagraph designation ‘(A)’ the following: ‘except for assistance under subsection (o),’; [<-Struck out]

        [Struck out->] (B) in clause (i) by striking ‘(I)’; [<-Struck out]

        [Struck out->] (C) in clause (i), by striking ‘and (II) 90 percent of such families in the case of assistance not attached to a structure’; and [<-Struck out]

        [Struck out->] (D) in clause (i), by striking ‘except’ and all that follows through the semicolon at the end. [<-Struck out]

      [Struck out->] (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). [<-Struck out]

      [Struck out->] (9) Section 8(f) is amended by-- [<-Struck out]

        [Struck out->] (A) in paragraph (6), striking ‘(d)(2)’ and inserting ‘(o)(13)’; and [<-Struck out]

        [Struck out->] (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’. [<-Struck out]

      [Struck out->] (10) Section 8(j) is hereby repealed. [<-Struck out]

      [Struck out->] (11) Section 8(n) is hereby repealed. [<-Struck out]

      [Struck out->] (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’. [<-Struck out]

      [Struck out->] (13) Section 18(b)(3) is amended-- [<-Struck out]

        [Struck out->] (A) in subparagraph (A)(v), by striking ‘(excluding vouchers under section 8(o))’ each place it appears; [<-Struck out]

        [Struck out->] (B) in subparagraph (B), by striking ‘8(d)(2)(A)’ and inserting ‘8(o)(13)’; [<-Struck out]

        [Struck out->] (C) in subparagraph (B)(ii), by striking ‘(excluding vouchers under section 8(o))’; and [<-Struck out]

        [Struck out->] (D) in subparagraph (C)(i), by striking ‘and vouchers’. [<-Struck out]

      [Struck out->] (14) Section 21(b)(3) is amended-- [<-Struck out]

        [Struck out->] (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 [<-Struck out]

        [Struck out->] (B) by striking the second sentence. [<-Struck out]

      [Struck out->] (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’. [<-Struck out]

    [Struck out->] (e) OTHER TECHNICAL AND CONFORMING AMENDMENTS- [<-Struck out]

      [Struck out->] (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’. [<-Struck out]

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

      [Struck out->] (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’. [<-Struck out]

      [Struck out->] (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’. [<-Struck out]

      [Struck out->] (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’. [<-Struck out]

    [Struck out->] (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. [<-Struck out]

[Struck out->]

Subtitle C--Streamline HUD

[<-Struck out]

[Struck out->] SEC. 6201. HUD STREAMLINING. [<-Struck out]

    [Struck out->] 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. [<-Struck out]

[Struck out->]

Subtitle D--Refinance Section 235 Mortgages

[<-Struck out]

[Struck out->] SEC. 6301. SECTION 235 MORTGAGE REFINANCING. [<-Struck out]

    [Struck out->] Section 235(r) of the National Housing Act is amended-- [<-Struck out]

      [Struck out->] (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)’; [<-Struck out]

      [Struck out->] (2) in paragraph (4)-- [<-Struck out]

        [Struck out->] (A) by inserting after ‘otherwise)’ the following: ‘and the mortgagee with respect to the amount described in paragraph (A)’; and [<-Struck out]

        [Struck out->] (B) in subparagraph (A), by inserting after ‘mortgagor’ the following: ‘and the mortgagee’; and [<-Struck out]

      [Struck out->] (3) by revising paragraph (5) to read as follows: [<-Struck out]

      [Struck out->]
      ‘(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.’. [<-Struck out]

[Struck out->]

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

[<-Struck out]

[Struck out->] SEC. 6401. SECTION 8 RENTS FOR NEW CONSTRUCTION AND REHABILITATION PROJECTS. [<-Struck out]

    [Struck out->] 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. [<-Struck out]

TITLE VI--DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

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 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:

      ‘(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 that, immediately prior to the assignment of the mortgage on such project to, or the acquisition of such mortgage by, the Secretary, was receiving any of the following types of assistance:

        ‘(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) additional assistance payments under section 236(f)(2) of the National Housing Act,

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

          ‘(iv) 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.

      ‘(5) AFFORDABLE- A unit shall be considered affordable if--

        ‘(A) for units occupied--

          ‘(i) by very low-income families, the rent does not exceed 30 percent of 50 percent of the area median income, as determined by the Secretary, with adjustments for smaller and larger families, except that the Secretary may establish the rent based on an amount higher or lower than 50 percent of the median for the area on the basis of the Secretary’s findings that such variation is necessary because of prevailing levels of construction costs or fair market rents, or unusually high or low family incomes; and

          ‘(ii) by low-income families other than very low-income families, the rent does not exceed 30 percent of 80 percent of the area median income, as determined by the Secretary, except that the Secretary may establish the rent based on an amount higher or lower than 80 percent of the median for the area on the basis of the Secretary’s findings that such variation is necessary because of prevailing levels of construction costs or fair market rents, or unusually high or low family incomes; or

        ‘(B) the unit, or the family residing in the unit, is receiving assistance under section 8 of the United States Housing Act of 1937.

      ‘(6) LOW-INCOME FAMILIES AND VERY LOW-INCOME FAMILIES- The terms ‘low-income families’ and ‘very low-income families’ shall have the meanings given the terms in section 3(b) of the United States Housing Act of 1937.

      ‘(7) PREEXISTING TENANT- The term ‘preexisting tenant’ means, with respect to a multifamily housing project, a family that--

        ‘(A) resides in a unit in the project; and

        ‘(B) immediately before foreclosure or acquisition of the project by the Secretary, was residing in a unit in the project.

      ‘(8) MARKET AREA- The term ‘market area’ means a market area determined by the Secretary for purposes of establishing fair market rentals under section 8(c) of the United States Housing Act of 1937.

      ‘(9) SECRETARY- The term ‘Secretary’ means the Secretary of Housing and Urban Development.

    ‘(c) Management or Disposition of Property-

      ‘(1) DISPOSITION TO PURCHASERS- The Secretary may, in carrying out this section, 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 market area in which the project is located 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 may, in carrying out this section--

        ‘(A) 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;

        ‘(B) 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); and

        ‘(C) contract for management of such properties with nonprofit organizations and public agencies, including public housing authorities.

    ‘(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 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).

      ‘(3) HOUSING STANDARDS- In disposing of any multifamily housing project under this section, the Secretary shall enter into an agreement with the purchaser under which the purchaser agrees that the project will be rehabilitated so that it is in compliance with, and will be maintained in compliance with, any standards under applicable State or local laws, rules, ordinances, or regulations relating to the physical condition of the housing and any such standards established by the Secretary.

    ‘(e) REQUIRED ASSISTANCE- In disposing of any multifamily housing property under this section, the Secretary shall take, separately or in combination, one or more of the following actions:

      ‘(1) CONTRACT WITH OWNER FOR PROJECT-BASED ASSISTANCE- 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, the Secretary may enter into contracts under section 8 of the United States Housing Act of 1937 (to the extent budget authority is available) with owners of the projects, subject to the following requirements:

        ‘(A) SUBSIDIZED OR FORMERLY SUBSIDIZED PROJECTS RECEIVING MORTGAGE-RELATED 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) the contract shall provide that, when a vacancy occurs in any unit in the project requiring project-based rental assistance pursuant to this subparagraph that is occupied by a family who is not eligible for assistance under such section 8, the owner shall lease the available unit to a family eligible for assistance under such section 8; and

          ‘(iii) the Secretary shall take actions to ensure that any unit in any such project that does not otherwise receive project-based assistance under this subparagraph remains available and affordable for the remaining useful life of the project, as defined by the Secretary; to carry out this clause, the Secretary may require purchasers to establish use or rent restrictions maintaining the affordability of such units.

        ‘(B) SUBSIDIZED OR FORMERLY SUBSIDIZED PROJECTS RECEIVING RENTAL ASSISTANCE- In the case of a subsidized or formerly subsidized project referred to in subsection (b)(2)(D) that is not subject to subparagraph (A)--

          ‘(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 provisions referred to in such subsection, unless the Secretary acts pursuant to provisions of subparagraph (C); and

          ‘(ii) the contract shall provide that, when a vacancy occurs in any unit in the project requiring project-based rental assistance pursuant to this subparagraph that is occupied by a family who is not eligible for assistance under such section 8, the owner shall lease the available unit to a family eligible for assistance under such section 8.

        ‘(C) EXCEPTIONS- In lieu of providing project-based assistance under subparagraph (A)(i) or (B)(i) for a project, 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 provides an increase in project-based assistance for very low-income persons for units within unsubsidized projects located within the same market area as the project otherwise required to be assisted with project-based assistance under subparagraph (A) or (B) that is at least equivalent to the units otherwise required to be so assisted; and

          ‘(ii) upon disposition of the project, low-income families residing in units otherwise required to be assisted with project-based assistance under subparagraph (A) or (B) receive tenant-based assistance under such section 8.

        ‘(D) UNSUBSIDIZED PROJECTS- Notwithstanding actions taken pursuant to subparagraph (C), in the case of unsubsidized projects, the contract shall 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) the new construction and substantial rehabilitation program under section 8(b)(2) of the United States Housing Act of 1937 (as in effect before October 1, 1983);

            ‘(II) the property disposition program under section 8(b) of such Act;

            ‘(III) the project-based certificate program under section 8 of such Act;

            ‘(IV) the moderate rehabilitation program under section 8(e)(2) of such Act;

            ‘(V) section 23 of such Act (as in effect before January 1, 1975);

            ‘(VI) the rent supplement program under section 101 of the Housing and Urban Development Act of 1965; or

            ‘(VII) section 8 of the United States Housing Act of 1937, following conversion from assistance under 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 families that are preexisting tenants of the project in units that, immediately before foreclosure or acquisition of the project by the Secretary, 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 at such time.

      ‘(2) ANNUAL CONTRIBUTION CONTRACTS FOR TENANT-BASED ASSISTANCE- 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, the Secretary may 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 on behalf of all low-income families who, on the date that the project is acquired by the purchaser, reside in the project and are eligible for such assistance, subject to the following requirements:

        ‘(A) REQUIREMENT OF SUFFICIENT AFFORDABLE HOUSING IN AREA- The Secretary may not take action under this paragraph unless the Secretary determines that there is available in the area an adequate supply of habitable, affordable housing for very low-income families and other low-income families.

        ‘(B) LIMITATION FOR SUBSIDIZED AND FORMERLY SUBSIDIZED PROJECTS- The Secretary may not take actions under this paragraph in connection with units in subsidized or formerly subsidized projects for more than 10 percent of the aggregate number of units in such projects disposed of by the Secretary annually.

        ‘(C) PROVISION OF PROJECT-BASED ASSISTANCE UNDER CHANGED CIRCUMSTANCES- The Secretary shall, to the extent such amounts are available, provide project-based assistance under section 8 of the United States Housing Act of 1937 for any units in a project for which the Secretary has provided tenant-based assistance under this paragraph if, and only to the extent that, the owner demonstrates to the satisfaction of the Secretary within 24 months after the date of acquisition by the owner that--

          ‘(i) the provision of such project-based assistance (I) is necessary to maintain the financial viability of the project because of changes occurring after such acquisition that are beyond the control of the owner, and (II) may reasonably be expected to maintain such financial viability; or

          ‘(ii) sufficient habitable, affordable housing for very low-income families and other low-income families is not available in the market area in which the project is located.

        Assistance provided pursuant to this subparagraph shall have a term of not more than 5 years.

      ‘(3) OTHER ASSISTANCE-

        ‘(A) IN GENERAL- In accordance with the authority provided under the National Housing Act, the Secretary may 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 that ensure that--

          ‘(i) at least the units in the project otherwise required to receive project-based 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) VERY LOW-INCOME TENANTS- If, as a result of actions taken pursuant to this paragraph, the rents charged to any very low-income families residing in the project who are otherwise required (pursuant to subparagraph (A), (B), or (D) of paragraph (1)) to receive project-based assistance under section 8 of the United States Housing Act of 1937 exceed the amount payable as rent under section 3(a) of the United States Housing Act of 1937, the Secretary shall provide assistance under section 8 of such Act to such families.

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

        ‘(A) IN GENERAL- The Secretary may transfer a multifamily housing project--

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

          ‘(ii) to an entity eligible to own or operate housing under assisted section 202 of the Housing Act of 1959 or under section 811 of the Cranston-Gonzalez National Affordable Housing Act for use as supportive housing under either of such sections.

        ‘(B) REQUIREMENTS FOR AGREEMENT- An agreement providing for the transfer of a project described in subparagraph (A) shall--

          ‘(i) contain such terms, conditions, and limitations as the Secretary determines appropriate, including requirements to ensure use of the project as public housing, supportive housing under section 202 of the Housing Act of 1959, or supportive housing under section 811 of the Cranston-Gonzalez National Affordable Housing Act, as applicable; and

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

    ‘(f) DISCRETIONARY ASSISTANCE- In addition to the actions taken under subsection (e) for a multifamily housing project, the Secretary may take any of the following actions:

      ‘(1) SHORT-TERM LOANS- The Secretary may provide a short-term loan to facilitate the sale of a multifamily housing project to a nonprofit organization or a public agency if--

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

        ‘(B) such loan has a term of not more than 5 years;

        ‘(C) the Secretary determines, based upon documentation provided to the Secretary, that the borrower has obtained a commitment of permanent financing to replace the short-term loan from a lender who meets standards established by the Secretary; and

        ‘(D) the terms of such loan is consistent with prevailing practices in the marketplace or the provision of such loan results in no cost to the Government, as defined in section 502 of the Congressional Budget Act of 1974.

      ‘(2) TENANT-BASED ASSISTANCE- The Secretary may make available tenant-based assistance under section 8 of the United States Housing Act of 1937 to very low-income families residing in a multifamily housing project that do not otherwise qualify for project-based assistance.

      ‘(3) Alternative uses-

        ‘(A) IN GENERAL- Notwithstanding any other provision of law, after providing notice to and an opportunity to comment by existing tenants, the Secretary may allow not more than--

          ‘(i) 10 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 may take actions under subparagraph (A) only if--

          ‘(i) tenant-based rental assistance under section 8 of the United States Housing Act of 1937 is made available to each eligible family residing in the project that is displaced as a result of such actions; and

          ‘(ii) the Secretary determines that sufficient habitable, affordable rental housing is available in the market area in which the project is located to allow use of such assistance.

    ‘(g) REQUIRED ASSISTANCE FOR CERTAIN PROJECTS- In disposing under this section of multifamily housing projects, the Secretary shall, to the extent that such assistance is available--

      ‘(1) in the case of any project located in a market area in which habitable, affordable rental housing for very low-income families is not sufficiently available, provide tenant-based or project-based rental assistance under section 8 of the United States Housing Act of 1937 (depending on the circumstances of the family) to very low-income families who are preexisting tenants of the project and do not otherwise qualify for project-based assistance; and

      ‘(2) provide project-based assistance for very low-income families who are preexisting tenants of the project to the extent that such assistance is necessary to maintain the financial viability of the project and is reasonably expected to maintain such financial viability.

    ‘(h) RENT RESTRICTIONS-

      ‘(1) AUTHORITY FOR USE IN UNSUBSIDIZED PROJECTS- In carrying out the goals specified in subsection (a), the Secretary may require certain units in unsubsidized projects to be subject to 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.

      ‘(2) REQUIREMENT REGARDING SUBSIDIZED AND FORMERLY SUBSIDIZED PROJECTS- In disposing under this section of any subsidized or formerly subsidized multifamily housing project, the Secretary shall require rent restrictions providing that any unassisted very low-income family who resides in a unit in the project on the date of disposition may not pay as rent for the unit an amount in excess of 30 percent of the adjusted income of the family at any time during the period beginning upon such disposition and ending upon the earlier of--

        ‘(A) 15 years after such disposition; or

        ‘(B) the time at which the family first fails to qualify as a very low-income family.

      ‘(3) REQUIREMENT REGARDING UNSUBSIDIZED PROJECTS- Unless the Secretary determines that the applicability of rent restrictions under this paragraph to a project would unreasonably impede the disposition of the project, in disposing under this section of any unsubsidized multifamily housing project the Secretary shall require rent restrictions providing that any unassisted very low-income family who resides in a unit in the project on the date of disposition may not pay as rent for the unit an amount in excess of 30 percent of the adjusted income of the family at any time during the period beginning upon such disposition and ending upon the earlier of--

        ‘(A) 15 years after such disposition; or

        ‘(B) the time at which the family first fails to qualify as a very low-income family.

      ‘(4) PHASE-IN OF RENT INCREASES- If the disposition under this section of any multifamily housing project results in any rent increases for any very low-income families who are preexisting tenants of the project and are paying less than 30 percent of the adjusted income of the family for rent, the Secretary shall provide that such rent increases shall be phased in equally over a period of not less than 3 years.

      ‘(5) DEFINITION OF ‘UNASSISTED VERY LOW-INCOME FAMILY’- For purposes of this subsection, the term ‘unassisted very low-income family’ means a very low-income family who resides in a unit that is not assisted with project-based assistance under section 8 of the United States Housing Act of 1937 and on whose behalf tenant-based assistance under such section is not provided.

    ‘(i) CONTRACT REQUIREMENTS- Contracts for project-based rental assistance under section 8 of the United States Housing Act of 1937 provided pursuant to this section shall be subject to the following requirements:

      ‘(1) CONTRACT TERM- The contract shall have a term of 15 years, except that--

        ‘(A) the term may be less than 15 years to the extent that the Secretary finds that, based on the rental charges and financing for the multifamily housing project to which the contract relates, the financial viability of the project can be maintained under a contract having such a term;

        ‘(B) to the extent that units receive project-based assistance for a contract term of less than 15 years, the Secretary shall require that the mount of rent payable by tenants of the project for such units shall 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; and

        ‘(C) the term may be less than 15 years if such assistance is provided--

          ‘(i) under a contract authorized under section 6 of the HUD Demonstration Act of 1993; and

          ‘(ii) pursuant to a disposition plan under this section for a project that is determined by the Secretary to be otherwise in compliance with this section.

      ‘(2) CONTRACT RENT-

        ‘(A) IN GENERAL- The Secretary shall establish contract rents for section 8 project-based rental contracts issued under this section at levels that provide sufficient amounts for the necessary costs of rehabilitating and operating the multifamily housing project and do not exceed 144 percent of the existing housing fair market rentals for the market area in which the project assisted under the contract is located.

        ‘(B) UP-FRONT GRANTS AND LOANS- If the Secretary determines that action under this subparagraph is more cost-effective, the Secretary may utilize the budget authority provided for contracts issued under this section for project-based assistance under section 8 of the United States Housing Act of 1937 to (in addition to providing project-based section 8 rental assistance)--

          ‘(i) provide up-front grants to nonprofit organizations or public housing agencies for the necessary cost of rehabilitation; or

          ‘(ii) pay any cost to the Government, as defined in section 502 of the Congressional Budget Act of 1974, for loans made pursuant to subsection (f)(1).

    ‘(j) Disposition Plan-

      ‘(1) IN GENERAL- Prior to the sale of a multifamily housing project that is owned by the Secretary, the Secretary shall develop an initial 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 be reasonably related to the intended use of the property after sale, any rehabilitation requirements for the project, the rents for units in the project that can be supported by the market, the amount of rental assistance available for the project under section 8 of the United States Housing Act of 1937, and the occupancy profile of the project.

      ‘(2) COMMUNITY AND TENANT INPUT- In carrying out this section, the Secretary shall develop procedures--

        ‘(A) 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; and

        ‘(B) to facilitate, where feasible and appropriate, the sale of multifamily housing projects to existing tenant organizations with demonstrated capacity, to public or nonprofit entities that represent or are affiliated with existing tenant organizations, or to other public or nonprofit entities.

      ‘(3) TECHNICAL ASSISTANCE- To carry out the procedures developed under paragraph (2), the Secretary may provide technical assistance, directly or indirectly, and may use amounts available for technical assistance under the Emergency Low Income Housing Preservation Act of 1987, subtitle C of 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 this section, for the provision of technical assistance under this paragraph. Recipients of technical assistance funding under the provisions referred to in this paragraph shall be permitted to provide technical assistance to the extent of such funding under any of such provisions or under this paragraph, notwithstanding the source of the funding.

    ‘(k) RIGHT OF FIRST REFUSAL FOR LOCAL AND STATE GOVERNMENT AGENCIES-

      ‘(1) NOTIFICATION OF ACQUISITION OF TITLE- Not later than 30 days after acquiring title to a multifamily housing project, the Secretary shall notify the unit of general local government (which, for purposes of this subsection, shall include any public housing agency) for the area in which the project is located and the State agency or agencies designated by the Governor of the State in which the project is located of such acquisition.

      ‘(2) RIGHT OF FIRST REFUSAL- During the period beginning upon acquisition of title to a multifamily housing project and ending 45 days after completion of notification under paragraph (1), the Secretary may offer to sell and may sell the project only to the unit of general local government or the designated State agency.

      ‘(3) EXPRESSION OF INTEREST- The unit of general local government or designated State agency may submit to the Secretary a preliminary expression of interest in a project not later than 45 days after receiving notification from the Secretary under paragraph (1) regarding 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.

      ‘(4) TIMELY EXPRESSION OF INTEREST- If the unit of general local government or designated State agency has submitted an expression of interest in a project before the expiration of the 45-day period referred to in paragraph (3) and has substantiated such interest if requested, the Secretary, upon approval of a disposition plan for the project, shall--

        ‘(A) notify the unit of general local government and designated State agency of the terms and conditions of the disposition plan; and

        ‘(B) provide that, for 90 days after the date of such notification, only the unit of general local government or designated State agency may make an offer to purchase the project.

      ‘(5) FAILURE TO TIMELY EXPRESS INTEREST- If the unit of general local government or designated State agency does not timely express and, if requested, substantiate interest in a project as provided in paragraph (4), the Secretary may offer the project for sale to any interested person or entity upon approval of the disposition plan for the project.

      ‘(6) ACCEPTANCE OF OFFERS- If the unit of general local government or designated State agency timely expresses and, if requested, substantiates interest in a project as provided in paragraph (4), the Secretary shall accept an offer made by the unit of general local government or designated State agency during the 90-day period for the project under paragraph (4)(B) that complies with the terms and conditions of the disposition plan for the project. 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 may 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 (i)(1) and in order to facilitate affordable rents.

      ‘(7) FAILURE TO SELL TO LOCAL OR STATE GOVERNMENT AGENCY- If the Secretary and the unit of general local government or designated State agency cannot reach agreement on an offer for purchase of a project within the 90-day period for the project under paragraph (4)(B), the Secretary may offer the project for sale to the general public.

      ‘(8) 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.

      ‘(9) 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 in effect immediately before the effective date of this subsection); or

        ‘(B) the requirements of paragraphs (1) through (7) of this subsection, if--

          ‘(i) the Secretary gives the unit of general local government or designated State agency 45 days to express interest in the project; and

          ‘(ii) 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, within 90 days from the date of notification of the terms and conditions of the disposition plan to make an offer to purchase the project.

      ‘(10) TRANSFER BY LOCAL OR STATE GOVERNMENT AGENCY PURCHASERS- The Secretary shall permit units of general local government and designated State agencies to transfer multifamily housing projects acquired under the right of first refusal under this subsection to a private entity, but only if the local government or State agency clearly identifies its intention to transfer the project in the offer to purchase the property accepted by the Secretary under this subsection.

    ‘(l) 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 that may be available. In the case of the disposition of tenants 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 ensure 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.

    ‘(m) 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 the 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 requires 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.

    ‘(n) REPORT TO CONGRESS- Not later than June 1 of each year, the Secretary shall submit to the Congress a report describing the status of multifamily housing projects owned by or subject to mortgages held by the Secretary. The report shall include--

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

      ‘(2) the nature and date of assignment of each project;

      ‘(3) the status of the mortgage for each project;

      ‘(4) the physical condition of each project;

      ‘(5) for each subsidized or formerly subsidized project, an occupancy profile of the project, stating the income, family size, race, and ethnic origin of current residents and the rents paid by such residents;

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

      ‘(7) the date on which the Secretary became mortgagee in possession of each project, if applicable;

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

      ‘(9) the date of acquisition of each project by the Secretary, if applicable;

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

      ‘(11) a description of actions undertaken pursuant to this section, including a description of the effectiveness of such actions and any impediments to the disposition or management of multifamily housing projects;

      ‘(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; and

      ‘(13) a description of the activities carried out under subsection (k) during the preceding year.’.

    (c) CLARIFICATION OF FEDERAL PREFERENCES-

      (1) PUBLIC HOUSING TENANCY- Section 6(c)(4)(A)(i) of the United States Housing Act of 1937 (42 U.S.C. 1437d(c)(4)(A)(i)) is amended by inserting after ‘displaced’ the following: ‘(including displacement because of disposition of a multifamily housing project under section 203 of the Housing and Community Development Amendments of 1978)’.

      (2) SECTION 8 ASSISTANCE- Section 8(d)(1)(A)(i) of the United States Housing Act of 1937 (42 U.S.C. 1437f(d)(1)(A)(i)) is amended by inserting after ‘displaced’ the following: ‘(including displacement because of disposition of a multifamily housing project under section 203 of the Housing and Community Development Amendments of 1978)’.

    (d) DEFINITION OF OWNER- Section 8(f)(1) of the United States Housing Act of 1937 (42 U.S.C. 1437f(f)(1)) is amended by inserting ‘an agency of the Federal Government,’ after ‘cooperative,’.

    (e) AMENDMENT TO NATIONAL HOUSING ACT- Title V of the National Housing Act (12 U.S.C. 1731a et seq.) is amended by adding at the end the following new section:

‘PARTIAL PAYMENT OF CLAIMS ON MULTIFAMILY HOUSING PROJECTS

    ‘SEC. 541. (a) AUTHORITY- Notwithstanding any other provision of law, if the Secretary is requested to accept assignment of a mortgage insured by the Secretary that covers a multifamily housing project (as such term is defined in section 203(b) of the Housing and Community Development Amendments of 1978) and the Secretary determines that partial payment would be less costly to the Federal Government than other reasonable alternatives for maintaining the low-income character of the project, the Secretary may request the mortgagee, in lieu of assignment, to--

      ‘(1) accept partial payment of the claim under the mortgage insurance contract; and

      ‘(2) recast the mortgage, under such terms and conditions as the Secretary may determine.

    ‘(b) REPAYMENT- As a condition to a partial claim payment under this section, the mortgagor shall agree to repay to the Secretary the amount of such payment and such obligation shall be secured by a second mortgage on the property on such terms and conditions as the Secretary may determine.’.

    (f) EFFECTIVE DATE- The Secretary shall issue interim regulations necessary to implement the amendments made by subsections (b) through (d) not later than 90 days after the date of the enactment of this Act. Such interim regulations shall take effect upon issuance and invite public comment on the interim regulations. The Secretary shall issue final regulations to implement such amendments after opportunity for such public comment, but not later than 12 months after the date of issuance of such interim regulations.

SEC. 6002. 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) in the matter preceding subparagraph (A), by inserting after ‘otherwise)’ the following: ‘and the mortgagee (with respect to the amount described in subparagraph (A))’; and

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

      (3) by amending 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.’.

SEC. 6003. USE OF EMERGENCY ASSISTANCE FUNDS FOR RESIDENCY IN MULTIFAMILY HOUSING DISPOSITION PROJECTS.

    Section 203(f) of the Housing and Community Development Amendments of 1978 (12 U.S.C. 1701z-11), as amended by section 6001 of this Act, is further amended by adding at the end the following new paragraph:

      ‘(4) EMERGENCY ASSISTANCE FUNDS- The Secretary may make arrangements with State agencies and units of general local government of States receiving emergency assistance under part A of title IV of the Social Security Act for the provision of assistance under such Act on behalf of eligible families who would reside in any multifamily housing projects.’.

SEC. 6004. ADDITIONAL EMPLOYEES TO FACILITATE DISPOSITION OF FHA INVENTORY PROPERTIES.

    Notwithstanding any other provision of law, during fiscal years 1993, 1994, and 1995 amounts in the various funds of the Federal Housing Administration otherwise available to the Secretary of Housing and Urban Development for non-overhead expenses associated with processing, accounting, loan servicing, asset management, and disposition services may be used by the Secretary for personnel compensation and benefits for temporary employees of the Department of Housing and Urban Development employed to manage, service, and dispose of single family and multifamily properties insured by, assigned to, or owned by the Secretary. The Secretary may employ not more than 400 temporary employees at any one time using amounts made available pursuant to this section, no such employee may be employed in a temporary position pursuant to this section for a period in excess of 2 years, and such employees shall not be considered for purposes of any personnel ceiling applicable to the Department of Housing and Urban Development or any unit therein or any personnel ceiling applicable to temporary employees of the Federal Government.

SEC. 6005. 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.

TITLE VII--DEPARTMENT OF THE INTERIOR

[Struck out->]

Subtitle A--Improve the Federal Helium Program

[<-Struck out]

[Struck out->] SEC. 7001. AMENDMENTS TO HELIUM ACT AMENDMENTS OF 1960. [<-Struck out]

    [Struck out->] (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;’. [<-Struck out]

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

      [Struck out->] (1) by amending subsection (b) to read: [<-Struck out]

    [Struck out->]
    ‘(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 [<-Struck out]

      [Struck out->] (2) by amending subsection (c) to read: [<-Struck out]

    [Struck out->]
    ‘(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.’. [<-Struck out]

[Struck out->] SEC. 7002. LONG-TERM COMPREHENSIVE PLAN. [<-Struck out]

    [Struck out->] 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. [<-Struck out]

[Struck out->]

Subtitle B

[<-Struck out] Subtitle A--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; [Struck out->] and (4) [<-Struck out] (4) pilot projects under which a State may assume mineral receipt collections on Federal lands within the State and where the State assumes 50 percent of the cost of such pilot project; and (5) 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.’.

[Struck out->]

Subtitle C

[<-Struck out] Subtitle B--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.

Subtitle C--Reorganization of Bureau of Indian Affairs

SEC. 7301. REORGANIZATION STUDY.

    (a) GENERAL AUTHORITY- The Secretary of the Interior, with the active participation of Indian tribes, shall conduct a study of the reorganization of the Bureau of Indian Affairs.

    (b) CONTENT- The study conducted under subsection (a) shall include (but shall not be limited to)--

      (1) an examination of the current structure of the Bureau of Indian Affairs and recommendations for structural changes to improve the implementation of Federal trust responsibilities toward Indian tribes;

      (2) an examination of the current roles of the Central, Area, and Agency offices of the Bureau of Indian Affairs and recommendations to improve efficiency of the Bureau through reorganization;

      (3) an examination of the efficiency of the Bureau of Indian Affairs in comparison with other Bureaus of the Department of the Interior;

      (4) an examination of the barriers to the implementation of the 1988 amendments to the Indian Self-Determination and Education Assistance Act throughout the Department of the Interior and a proposed plan for effective implementation; and

      (5) recommendations for the transfer of personnel and resources from the Central, Area, and Agency offices of the Bureau of Indian Affairs to Indian tribes.

    (c) REPORT- The Secretary shall complete the study conducted pursuant to this section and shall submit such study, together with recommendations and draft legislation to implement such recommendations, to the Congress within one year after the date of enactment of this Act.

Subtitle D--Termination of Annual Direct Grant Assistance

SEC. 7401. TERMINATION OF ANNUAL DIRECT GRANT ASSISTANCE

    (a) TERMINATION- Pursuant to section 704(d) of the Covenant to Establish a Commonwealth of the Northern Mariana Islands in Political Union with the United States of America (48 U.S.C. 1681 note), the annual payments under section 702 of the Covenant shall terminate as of September 30, 1993.

    (b) REPEAL- Sections 3 and 4 of the Act of March 24, 1976 (Public Law 94-241; 48 U.S.C. 1681 note), as amended, are repealed, effective October 1, 1993.

[Struck out->]

TITLE VIII--DEPARTMENT OF JUSTICE

[<-Struck out]

[Struck out->] SEC. 8001. BUREAU OF PRISONS HEALTH SERVICES USER FEE. [<-Struck out]

    [Struck out->] Chapter 303 of title 18, United States Code, is amended by adding at the end the following new section: [<-Struck out]

[Struck out->]
‘SEC. 4047. USER FEE FOR HEALTH SERVICES. [<-Struck out]

    [Struck out->]
    ‘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.’. [<-Struck out]

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 A--Authority to establish reemployment rights for certain merchant seamen

SECTION 11001. SHORT TITLE.

    This subtitle may be cited as the ‘Merchant Seamen Reemployment Rights Act of 1993’.

SEC. 11002. REEMPLOYMENT RIGHTS FOR CERTAIN MERCHANT SEAMEN.

    (a) IN GENERAL- Title III of the Merchant Marine Act, 1936 (46 App. U.S.C. 1131) is amended by inserting after section 301 the following new section:

    ‘SEC. 302. (a) An individual who is certified by the Secretary of Transportation under subsection (c) shall be entitled to reemployment rights and other benefits substantially equivalent to the rights and benefits provided for by chapter 43 of title 38, United States Code, for any member of a Reserve component of the Armed Forces of the United States who is ordered to active duty.

    ‘(b) An individual may submit an application for certification under subsection (c) to the Secretary of Transportation not later than 45 days after the date the individual completes a period of employment described in subsection (c)(1)(A) with respect to which the application is submitted.

    ‘(c) Not later than 20 days after the date the Secretary of Transportation receives from an individual an application for certification under this subsection, the Secretary shall--

      ‘(1) determine whether or not the individual--

        ‘(A) was employed in the activation or operation of a vessel--

          ‘(i) in the National Defense Reserve Fleet maintained under section 11 of the Merchant Ship Sales Act of 1946, in a period in which that vessel was in use or being activated for use under subsection (b) of that section;

          ‘(ii) that is requisitioned or purchased under section 902 of this Act; or

          ‘(iii) that is owned, chartered, or controlled by the United States and used by the United States for a war, armed conflict, national emergency, or maritime mobilization need (including for training purposes or testing for readiness and suitability for mission performance); and

        ‘(B) during the period of that employment, possessed a valid license, certificate of registry, or merchant mariner’s document issued under chapter 71 or chapter 73 (as applicable) of title 46, United States Code; and

      ‘(2) if the Secretary makes affirmative determinations under paragraph (1) (A) and (B), certify that individual under this subsection.

    ‘(d) For purposes of reemployment rights and benefits provided by this section, a certification under subsection (c) shall be considered to be the equivalent of a certificate referred to in clause (1) of section 4301(a) of title 38, United States Code.’.

    (b) APPLICATION- The amendment made by subsection (a) shall apply to employment described in section 302(c)(1)(A) of the Merchant Marine Act, 1936, as amended by subsection (a), occurring after August 2, 1990.

    (c) EMPLOYMENT ENDING BEFORE ENACTMENT- Notwithstanding subsection (b) of section 302 of the Merchant Marine Act, 1936, as amended by this Act, an individual who, in the period beginning August 2, 1990, and ending on the date of the enactment of this Act, completed a period of employment described in subsection (c)(1)(A) of that section may submit an application for certification under subsection (c) of that section with respect to that employment not later than 45 days after the date of the enactment of this Act.

    (d) REGULATIONS- Not later than 120 days after the date of the enactment of this Act, the Secretary of Transportation shall issue regulations implementing this section.

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 [Struck out->] by [<-Struck out] --

      [Struck out->] (1) revising paragraph (a)(2) to read as follows: [<-Struck out]

      (1) in subsection (a) by striking paragraph (2) and inserting the following:

      ‘(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 unless such point is more than 210 miles from the nearest large or medium hub airport and may not be located fewer than 70 highway miles from the nearest [Struck out->] hub airport or small [<-Struck out] large or medium hub airport;’ and

      [Struck out->] (2) revising paragraph (l)(2) to read as follows: [<-Struck out]

      (2) in subsection (l) by striking paragraph (2) and inserting the following:

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

        [Struck out->]
        ‘(A) $33,423,077 for fiscal year 1994; and [<-Struck out]

        [Struck out->]
        ‘(B) $25,600,000 per fiscal year for each of fiscal years 1995, 1996, 1997, 1998, and 1999. [<-Struck out]

      section $33,423,077 per fiscal year for each of fiscal years 1994 through 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.

    (a) REPEAL- 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.

    (b) LIMITATION- Subsection (a) shall not affect the authority of the Secretary to enter into grant agreements with universities, colleges, or institutions of higher education to obligate funds appropriated for fiscal years ending before October 1, 1993, which have not been rescinded.

[Struck out->] SEC. 11202. COLLEGIATE TRAINING INITIATIVE. [<-Struck out]

    [Struck out->] 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. [<-Struck out]

SEC. 11202. COLLEGIATE TRAINING INITIATIVE.

    (a) IN GENERAL- Section 313(d) of the Federal Aviation Act of 1958 (49 U.S.C. App. 1354(d)) is amended--

      (1) by striking the subsection heading and all that follows through ‘The Administrator’ and inserting the following:

    ‘(d) TRAINING SCHOOLS-

      ‘(1) IN GENERAL- The Administrator’;

      (2) by moving the text of paragraph (1), as so designated, 2 ems to the right; and

      (3) by adding at the end the following:

      ‘(2) COLLEGIATE TRAINING INITIATIVE-

        ‘(A) CONTINUATION- The Administrator of the Federal Aviation Administration may continue the Collegiate Training Initiative program, by entering into new agreements, with post-secondary institutions, as defined by the Administrator, whereby such institutions, without cost to the Federal Aviation Administration, prepare students for the position of air traffic controller with the Department of Transportation, as defined in section 2109 of title 5, United States Code.

        ‘(B) STANDARDS- The Administrator may establish standards for the entry of institutions into such program and for their continued participation in it.

        ‘(C) APPOINTMENT IN EXCEPTED SERVICE- The Administrator may appoint persons who have successfully completed a course of training in such program to the position of air traffic controller noncompetitively in the excepted service, as defined in section 2103 of title 5, United States Code. Persons so appointed shall serve at the pleasure of the Administrator, subject to section 7511 of such title (pertaining to adverse actions). However, an appointment under this subparagraph may be converted from one in the excepted service to a career conditional or career appointment in the competitive civil service, as defined in section 2102 of such title when the incumbent achieves full performance level air traffic controller status, as determined by the Administrator. The authority conferred by this subparagraph to make new appointments in the excepted service shall expire at the end of 5 years from the date of the enactment of this subparagraph; except that the Administrator may determine to extend such authority for 1 or more successive 1-year periods thereafter.’.

    (b) CONFORMING AMENDMENT- Section 362 of the Department of Transportation and Related Agencies Appropriations Act, 1993 (106 Stat. 1560) is repealed.

    (c) LIMITATION- The repeal and the amendments made by this section shall not prohibit the expenditure of funds appropriated for fiscal years ending before October 1, 1994.

[Struck out->] SEC. 11203. AIR CARRIER MAINTENANCE TECHNICIAN TRAINING FACILITY GRANT PROGRAM. [<-Struck out]

    [Struck out->] Section 119 of Public Law 102-581 (49 U.S.C. app. 1354 note) is repealed. [<-Struck out]

Subtitle D--Capital Budgeting

SEC. 11301. STATEMENT OF FINDING AND PURPOSES.

    (a) STATEMENT OF FINDING- Congress finds that the existing budget obscures the distinctions between capital activities and operating activities and between general funds, trust funds, and enterprise funds, so as to hinder identification of the resources needed to meet the needs of the Government and the investment needs of the economy that are necessary for sustained economic growth.

    (b) PURPOSES- The purposes of this subtitle are as follows:

      (1) To provide that the unified budget present a capital budget and an operating budget and distinguish between general funds, trust funds, and enterprise funds, in order to provide better and more relevant information on the revenues, expenses, and financing requirements of Government programs and activities.

      (2) To implement that part of the Report of the National Performance Review that recommends that the Government ensure that there is no budget bias against long-term investments and contains the following statement: ‘The budget should recognize the special nature and long-term benefits of investments in fixed assets through a separate capital budget, operating budget, and cash budget. The separate capital budget will explicitly show expenditures on fixed assets, and will help to steer our scarce resources toward the most economical means of acquisition of the most needed assets.’.

SEC. 11302. CAPITAL AND OPERATING BUDGET FOR FISCAL YEARS 1996 AND 1997.

    (a) UNIFIED BUDGET-

      (1) IN GENERAL- For fiscal years 1996 and 1997, in addition to the budget of the United States to be submitted under existing law, the President shall submit a unified budget of the United States composed of an operating budget and a capital budget.

      (2) PRESENTATION OF BUDGETS- Operating and capital budgets shall be presented separately for unified funds, general funds, trust funds, and enterprise funds.

    (b) SPECIAL RULES-

      (1) MINIMUM CONTENTS- Actual, estimated, and proposed amounts shall be presented for unified funds, general funds, trust funds, and enterprise funds, and, at a minimum, shall contain--

        (A) for the operating budget the following: (i) operating revenues, (ii) operating expenses, (iii) operating surplus/deficit before interfund transfers, (iv) interfund transfers, (v) operating surplus/deficit, and (vi) Federal expenditures financing the operating expenses of State and local governments;

        (B) for the capital budget the following: (i) capital revenues, (ii) capital investments, (iii) capital financing requirements before interfund transfers, (iv) interfund transfers, and (v) capital financing requirements; and

        (C) unified budget financing requirements.

      (2) DISTINCTION BETWEEN CAPITAL AND OTHER ITEMS- The capital budget shall represent only the major activities, projects, and programs which support the acquisition, construction, alteration, and rehabilitation of capital assets. All other activities, projects, and programs shall be represented in the operating budget.

    (c) PRESIDENTIAL RESPONSIBILITY- In addition to the unified budget submitted by the President as required by subsections (a) and (b) of this section, the President shall present information in the form required by subsection (b)(1) for accounts, agencies, and functions, to the extent applicable, the capital investments by State and local governments not financed by the Federal Government.

    (d) DEFINITIONS- In this section, the following definitions apply:

      (1) UNIFIED BUDGET- The term ‘unified budget’ means a budget in which revenues and expenses for general funds, trust funds, and enterprise funds are consolidated to display totals for the Federal Government as a whole.

      (2) TRUST FUNDS- The term ‘trust funds’ means--

        (A) the Federal Old-Age and Survivors Insurance Trust Fund,

        (B) the Federal Hospital Insurance Trust Fund,

        (C) the Civil Service Retirement and Disability Fund,

        (D) the Military Retirement Fund,

        (E) the Federal Supplementary Medical Insurance Trust Fund,

        (F) the Unemployment Trust Fund,

        (G) the Federal Disability Insurance Trust Fund,

        (H) the Highway Trust Fund,

        (I) the Airport and Airway Trust Fund, and

        (J) such other funds or accounts of the Government that the Director of the Office of Management and Budget, in consultation with the Comptroller General, determines should be classified as trust funds in order to fulfill the purpose of this section.

      (3) ENTERPRISE FUNDS- The term ‘enterprise funds’ means--

        (A) the Postal Service,

        (B) the Resolution Trust Corporation,

        (C) the Federal Deposit Insurance Corporation Fund,

        (D) the Federal Housing Administration,

        (E) the Tennessee Valley Authority Fund,

        (F) the Bonneville Power Administration Fund,

        (G) the Rural Electrification and Telephone Revolving Loan Fund,

        (H) the Export-Import Bank of the United States,

        (I) the Southeastern Power Administration,

        (J) the Southwestern Power Administration,

        (K) the Western Area Power Administration,

        (L) the Alaska Power Administration,

        (M) the Overseas Private Investment Corporation,

        (N) the St. Lawrence Seaway Development Corporation,

        (O) the Rural Telephone Bank,

        (P) the Pension Benefit Guaranty Corporation, and

        (Q) such other funds or accounts of the Government that the Director of the Office of Management and Budget, in consultation with the Comptroller General, determines should be classified as enterprise funds in order to fulfill the purpose of this section.

      (4) GENERAL FUNDS- The term ‘general funds’ includes all accounts of the Government that are not trust funds or enterprise funds.

      (5) UNIFIED FUNDS- The term ‘unified funds’ means general funds, trust funds, and enterprise funds and represents the unified budget.

      (6) CAPITAL ASSETS- The term ‘capital assets’ means physical assets and financial assets but does not include consumable inventories.

      (7) PHYSICAL ASSETS- The term ‘physical assets’ means tangible assets (other than assets used for national defense or security)--

        (A) the ownership of which is or will be in the public domain;

        (B) that produce services or benefits for more than 5 years; and

        (C) that have an initial cost equal to or more than $100,000.

      Such term includes, but is not limited to, roadways and bridges; airports and airway facilities; mass transportation systems; wastewater treatment, water distribution delivery, and related facilities; water resource projects; medical facilities; resource recovery facilities; public structures; space and communication facilities; and strategic petroleum reserves and mineral stockpiles.

      (8) FINANCIAL ASSETS- The term ‘financial assets’ means interests of the Federal Government in, and claims of the Federal Government against, foreign governments, States and their political subdivisions, corporations, associations, and individuals and their resources which are represented by a legal instrument (such as bonds, debentures, notes, and other securities), less any credit subsidy costs attributable to such financial assets.

      (9) CREDIT SUBSIDY COSTS- The term ‘credit subsidy costs’ means the losses incurred by the Federal Government as a result of its direct and guaranteed loans, including such costs as interest and default.

      (10) CONSUMABLE INVENTORIES- The term ‘consumable inventories’ means tangible assets of the Federal Government, including stockpiles, supplies, and inventories, which typically are consumed within 5 years or which have an initial price less than $100,000.

      (11) OPERATING REVENUES- The term ‘operating revenues’ means all receipts of the Federal Government, other than those identified in paragraph (17), including profits and interest earned on financial assets.

      (12) OPERATING EXPENSES- The term ‘operating expenses’ means all expenses of the Federal Government, other than those identified in paragraph (18), including interest payments on debts, asset consumption charge, and credit subsidy costs.

      (13) OPERATING SURPLUS/DEFICIT BEFORE INTERFUND TRANSFERS- The term ‘operating surplus/deficit before interfund transfers’ means the difference between operating revenues and operating expenses before interfund transfers.

      (14) INTERFUND TRANSFERS- The term ‘interfund transfers’ means the flow of revenues between general and enterprise funds and trust funds accounts that are expenses from the account making the payments and revenues to the account receiving the payments.

      (15) OPERATING SURPLUS/DEFICIT- The term ‘operating surplus/deficit’ means the operating surplus/deficit before interfund transfers plus or minus interfund transfers.

      (16) ASSET CONSUMPTION CHARGE- The term ‘asset consumption charge’ means the systematic and rational allocation of the cost--historical, replacement, or current value--of a physical asset (having a useful life of more than 5 years) financed by the appropriation accounts for which the capital budget required by this section applies.

      (17) CAPITAL REVENUES- The term ‘capital revenues’ means receipts of the Federal Government derived from taxes, collections, and receipts dedicated by statute, for the rehabilitation of capital assets which relate to the activities, functions, and programs represented by the capital budget.

      (18) CAPITAL INVESTMENTS- The term ‘capital investments’ means (A) expenditures of the Federal Government, including those under grants, contracts, and leases, which are for the acquisition, construction, and rehabilitation of capital assets, and (B) Federal expenditures (including tax expenditures) which are for the acquisition, construction, and rehabilitation of the physical assets of State and local governments.

      (19) CAPITAL FINANCING REQUIREMENTS BEFORE INTERFUND TRANSFERS- The term ‘capital financing requirements before interfund transfers’ means the difference between capital revenues and capital investments before interfund transfers.

      (20) CAPITAL FINANCING REQUIREMENTS- The term ‘capital financing requirements’ means financing requirements before interfund transfers plus or minus interfund transfers.

      (21) UNIFIED BUDGET FINANCING REQUIREMENTS- The term ‘unified budget financing requirements’ means the total of the operating surplus/deficit and the capital financing requirements.

SEC. 11303. UNITED STATES BUDGET FOR FISCAL YEAR 1998 AND THEREAFTER.

    For fiscal year 1998, and each fiscal year thereafter, the President shall submit only 1 budget of the United States and such budget shall be a unified budget which meets the requirements of section 11302.

SEC. 11304. REVIEW BY COMPTROLLER GENERAL.

    The Comptroller General shall review and report to Congress on the implementation of section 11302 as the Comptroller General deems necessary. A review by the Comptroller General may include--

      (1) determining whether the actual, estimated, and proposed appropriations, receipts, and investments presented in the capital budget represent activities, functions, and programs which support the acquisition, construction, alteration, and rehabilitation of capital assets;

      (2) determining whether the classifications made by the Director of the Office of Management and Budget under section 11302(d)(2)(H) further the purposes of section 11302; and

      (3) evaluating, on an annual basis, the value and usefulness of capital investments in the capital account as set forth in section 11302.

Subtitle E--Public Buildings

SEC. 11401. PUBLIC BUILDING TRANSACTIONS.

    Section 3 of the Public Buildings Act of 1959 (40 U.S.C. 602) is amended--

      (1) by striking ‘SEC. 3. The Administrator’ and inserting the following:

‘SEC. 3. ACQUISITION OF BUILDINGS.

    ‘(a) AUTHORITY- The Administrator’; and

      (2) by adding at the end the following:

    ‘(b) LEASES- The Administrator is authorized to enter into contracts for the lease-purchase or lease of any building and its site for periods of not to exceed 30 years.

    ‘(c) CALCULATION OF TRANSACTIONS- For purposes of section 1341(a)(1)(B) of title 31, United States Code, the Balanced Budget and Emergency Deficit Control Act of 1985, the Congressional Budget Act of 1974, and the Budget Enforcement Act of 1990 and scorekeeping guidelines, the Office of Management and Budget and the Congressional Budget Office shall score any contract entered into by the Administrator under this Act for the purchase, lease-purchase, or lease of any building and its site in the same manner as if the contract was entered into on September 30, 1990.’.

TITLE XII--DEPARTMENT OF VETERANS AFFAIRS

[Struck out->]

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

[<-Struck out]

[Struck out->] SEC. 12001. REMOVAL OF CERTAIN LIMITATIONS AND RESTRICTIONS. [<-Struck out]

    [Struck out->] (a) Eliminate Hospital and Nursing Home Bed Capacity Requirements- [<-Struck out]

      [Struck out->] (1) Paragraph (1) of subsection (a) of section 8110 of title 38, United States Code, is amended-- [<-Struck out]

        [Struck out->] (A) by striking ‘at not more than 125,000 and not less than 100,000’; and [<-Struck out]

        [Struck out->] (B) by striking the third and fourth sentences. [<-Struck out]

      [Struck out->] (2) Subsection (a) of section 8111 of such title is amended to read as follows: [<-Struck out]

    [Struck out->]
    ‘(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.’. [<-Struck out]

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

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

    [Struck out->] (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.’. [<-Struck out]

    [Struck out->] (e) Eliminate Certain Requirements on the Under Secretary for Health-- [<-Struck out]

      [Struck out->] (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.’. [<-Struck out]

      [Struck out->] (2) Section 7306(b) of title 38, United States Code, is repealed. [<-Struck out]

      [Struck out->] (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.’. [<-Struck out]

      [Struck out->] (4) Sections 7306(c), (d), and (e) of title 38, United States Code, are redesignated as sections 7306(b), (c), and (d), respectively. [<-Struck out]

[Struck out->]

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

[<-Struck out]

[Struck out->] SEC. 12101. CLOSURE OF SUPPLY DEPOTS AND TRANSFER OF FUNDS. [<-Struck out]

    [Struck out->] 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. [<-Struck out]

Subtitle A--Administrative Improvements

SEC. 12001. ELIMINATION OF HOSPITAL AND NURSING HOME BED CAPACITY REQUIREMENTS.

    (a) Section 8110(a)(1) of title 38, United States Code, is amended--

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

      (2) by striking the third and fourth sentences.

    (b) Section 8111(a) of such title is amended by striking out ‘result (1)’ and all that follows through ‘maintained or’.

SEC. 12002. ELIMINATION OF REQUIREMENT FOR MINIMUM NUMBER OF PERSONNEL IN THE OFFICE OF INSPECTOR GENERAL.

    Subsection (b) of section 312 of title 38, United States Code, is amended to read as follows:

    ‘(b) Whenever the Secretary proposes to reduce the authorized number of full-time equivalent employees assigned to the Office of Inspector General, the Secretary shall submit to the Committees on Veterans’ Affairs of the Senate and House of Representatives a report providing notice of the proposed reduction and a detailed explanation for the proposed reduction. No action to carry out the proposed reduction may be taken after the submission of such report until the end of a 45-day period of continuous session of Congress (determined in the same manner as specified in the last sentence of section 510(b) of this title) following the date of the submission of the report.’.

SEC. 12003. MODIFICATION OF ADMINISTRATIVE REORGANIZATION AUTHORITY.

    (a) MODIFICATION OF REQUIREMENT TO REPORT TO CONGRESS- Section 510 of title 38, United States Code, is amended by striking out ‘90-day’ both places it appears in subsection (b) and inserting in lieu thereof ‘45-day’.

    (b) AUTHORITY TO REORGANIZE OFFICES IN EVENT OF EMERGENCY- Such section is further amended by striking out subsection (d) and inserting the following:

    ‘(d)(1) The limitation in subsection (b) does not apply with respect to an administrative reorganization at a medical facility if the Secretary determines that the reorganization is necessary to respond to an emergency situation at that facility. The Secretary may determine that there is an emergency situation at a medical facility for purposes of this subsection only in a case in which there would be an immediate danger to patients and employees at that facility without the reorganization. In the case of a facility at which officials of the Department are considering whether to implement an administrative reorganization before the event or occurrence which leads to an initial finding that such an emergency exists, the Secretary may not make such a determination.

    ‘(2) Whenever the Secretary determines under paragraph (1) that it is necessary to carry out an administrative reorganization at a medical facility without regard to the limitation in subsection (b), the Secretary shall submit a report on that determination to the Committees on Veterans’ Affairs of the Senate and House of Representatives. The report shall provide the same information as is provided in a detailed plan and justification in the case of an administrative reorganization subject to subsection (b). The Secretary shall include in the report an explanation of the alternatives to the proposed administrative reorganization that were considered and each factor that was considered in the decision to reject each such alternative.’.

SEC. 12004. ELIMINATION OF REQUIREMENT FOR CERTAIN SERVICES IN THE VETERANS HEALTH ADMINISTRATION.

    (a) Section 7305 of title 38, United States Code, is repealed.

    (b) The table of sections at the beginning of chapter 73 of such title is amended by striking the item relating to section 7305.

SEC. 12005. MODIFICATION OF PHYSICIAN REQUIREMENT FOR CERTAIN SENIOR VETERANS HEALTH ADMINISTRATION OFFICIALS.

    (a) UNDER SECRETARY- Section 305 of title 38, United States Code, is amended--

      (1) in subsection (a)(2), by striking out ‘shall be a doctor of medicine and shall be’ and inserting in lieu thereof ‘shall (except as provided in subsection (d)(1)) be a doctor of medicine. The Under Secretary shall be’;

      (2) in subsection (d)--

        (A) by adding at the end of paragraph (1) the following: ‘If at the time such a commission is established both the position of Deputy Under Secretary for Health and the position of Associate Deputy Under Secretary for Health are held by individuals who are doctors of medicine, the individual appointed by the President as Under Secretary for Health may be someone who is not a doctor of medicine. In any case, the Secretary shall develop, and shall furnish to the commission, specific criteria which the commission shall use in evaluating individuals for recommendations under paragraph (3).’;

        (B) by redesignating paragraph (4) as paragraph (5);

        (C) by inserting after the first sentence of paragraph (3) the following: ‘In a case in which, pursuant to paragraph (1), the individual to be appointed as Under Secretary does not have to be a doctor of medicine, the commission may make recommendations without regard to the requirement in subsection (a)(2)(A) that the Under Secretary be appointed on the basis of demonstrated ability in the medical profession, but in such a case the commission shall accord a priority to the selection of a doctor of medicine over an individual who is not a doctor of medicine.’; and

        (D) by designating the last two sentences of paragraph (3) as paragraph (4).

    (b) DEPUTY AND ASSOCIATE DEPUTY UNDER SECRETARY- Section 7306 of such title is amended--

      (1) in subsection (a)--

        (A) by striking out ‘of the following:’ in the matter preceding paragraph (1) and inserting in lieu thereof ‘such personnel as may be considered necessary for the purposes of this chapter. In appointing persons to positions in the Office, the Under Secretary shall consider the different types of health care services provided to veterans by the Veterans Health Administration and shall seek to ensure that appointments in the Office are made in such a manner that the Office is staffed so as to provide the Under Secretary with appropriate expertise in those services. The Office shall include the following:’;

        (B) by inserting ‘(except as provided in subsection (c))’ in paragraphs (1) and (2) after ‘and who shall’;

        (C) by striking out each paragraph after paragraph (2);

      (2) by striking out subsection (b);

      (3) by redesignating subsection (c) as subsection (b) and striking out ‘In the case of’ in the second sentence and all that follows through ‘such appointments’ and inserting in lieu thereof ‘Such appointments’; and

      (4) by inserting after subsection (b), as so redesignated, the following new subsection (c):

    ‘(c)(1) If at the time of the appointment of the Deputy Under Secretary for Health under subsection (a)(1), both the position of Under Secretary for Health and the position of Associate Deputy Under Secretary for Health are held by individuals who are doctors of medicine, the individual appointed as Deputy Under Secretary for Health may be someone who is not a doctor of medicine.

    ‘(2) If at the time of the appointment of the Associate Deputy Under Secretary for Health under subsection (a)(2), both the position of Under Secretary for Health and the position of Deputy Under Secretary for Health are held by individuals who are doctors of medicine, the individual appointed as Associate Deputy Under Secretary for Health may be someone who is not a doctor of medicine.’.

SEC. 12006. USE OF FUNDS RECOVERED FROM THIRD PARTIES.

    (a) AUTHORIZED USES- Section 1729(g) of title 38, United States Code, is amended by adding at the end of paragraph (3) the following new subparagraph:

      ‘(C) Payments for (i) the purchase of needed medical equipment, and (ii) such other purposes as may be specifically authorized by law.’.

    (b) AVAILABILITY OF FUNDS- Such section is further amended by striking out paragraph (4) and inserting the following:

    ‘(4)(A) Not later than December 1 of each year, there shall be set aside within the Fund a reserve to be used for the purposes described in paragraph (3)(C). The amount placed into the reserve each year shall be determined under subparagraph (B). No funds may be obligated under paragraph (3)(C) in excess of the funds in the reserve. The reserve shall remain available for obligation until expended.

    ‘(B)(i) On December 1, 1993, the amount set aside for the reserve under subparagraph (A) shall be the amount by which--

      ‘(I) the unobligated balance remaining in the Fund at the close of business on September 30, 1993, minus any part of such balance that the Secretary determines is necessary to defray, the expenses, payments, and costs described in paragraph (3), exceeds

      ‘(II) $538,600,000.

    ‘(ii) On December 1, 1994, the amount set aside for the reserve under subparagraph (A) shall be the amount by which--

      ‘(I) the unobligated balance remaining in the Fund at the close of business on September 30, 1994, minus any part of such balance that the Secretary determines is necessary to defray, the expenses, payments, and costs described in paragraph (3), exceeds

      ‘(II) $590,500,000.

    ‘(iii) On December 1, 1995, the amount set aside for the reserve under subparagraph (A) shall be the amount by which--

      ‘(I) the unobligated balance remaining in the Fund at the close of business on September 30, 1995, minus any part of such balance that the Secretary determines is necessary to defray, the expenses, payments, and costs described in paragraph (3), exceeds

      ‘(II) $646,000,000.

    ‘(iv) On December 1, 1996, the amount set aside for the reserve under subparagraph (A) shall be the amount by which--

      ‘(I) the unobligated balance remaining in the Fund at the close of business on September 30, 1996, minus any part of such balance that the Secretary determines is necessary to defray, the expenses, payments, and costs described in paragraph (3), exceeds

      ‘(II) $698,100,000.

    ‘(v) On December 1, 1997, the amount set aside for the reserve under subparagraph (A) shall be the amount by which--

      ‘(I) the unobligated balance remaining in the Fund at the close of business on September 30, 1997, minus any part of such balance that the Secretary determines is necessary to defray, the expenses, payments, and costs described in paragraph (3), exceeds

      ‘(II) $753,500,000.

    ‘(C) If the amount to be set aside for the reserve for any year, as calculated under subparagraph (B), is less than zero, the amount added to the reserve for that year shall be zero.

    ‘(5) Not later than January 1 of each year, there shall be deposited into the Treasury as miscellaneous receipts an amount equal to the amount of the unobligated balance remaining in the Fund at the close of business on September 30 of the preceding year minus any part of such balance that the Secretary determines is necessary in order to enable the Secretary to defray, during the fiscal year in which the deposit is made, the expenses, payments, and costs described in paragraph (3), and the amount in the reserve described in paragraph (4).

    ‘(6) The Secretary shall prescribe regulations for the allocation of amounts in the reserve under paragraph (4) to the medical centers of the Department for the purposes stated in paragraph (3)(C). Those regulations shall be designed to provide incentives to directors of medical centers to increase the recoveries and collections under this section by requiring that 20 percent of those amounts be made available each year directly to the medical centers at which such recoveries and collections have been at above average levels. The remaining 80 percent of those funds shall be allocated as the Secretary considers appropriate.’.

Subtitle B--Closure of Certain Facilities

SEC. 12101. CLOSURE OF SUPPLY DEPOTS.

    (a) IN GENERAL- The Secretary of Veterans Affairs shall close the Department of Veterans Affairs’ supply depots specified in subsection (b).

    (b) COVERED DEPOTS- Subsection (a) applies to the supply depots of the Department of Veterans Affairs at the following locations:

      (1) Somerville, New Jersey.

      (2) Hines, Illinois.

      (3) Bell, California.

    (c) DEADLINE- The Secretary shall complete the actions required by subsection (a) not later than September 30, 1995.

SEC. 12102. WAIVER OF OTHER PROVISIONS.

    Sections 510(b) and 8121 of title 38, United States Code, do not apply to the actions required under this subtitle.

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’.

[Struck out->]

Subtitle D--Veterans’ Appeals Improvement Act of 1993

[<-Struck out]

[Struck out->] SEC. 12301. SHORT TITLE; REFERENCES TO TITLE 38, UNITED STATES CODE. [<-Struck out]

    [Struck out->] (a) SHORT TITLE- This subtitle may be cited as the ‘Veterans’ Appeals Improvement Act of 1993’. [<-Struck out]

    [Struck out->] (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. [<-Struck out]

[Struck out->] SEC. 12302. COMPOSITION OF THE BOARD OF VETERANS’ APPEALS. [<-Struck out]

    [Struck out->] (a) BOARD MEMBERS AND PERSONNEL- Section 7101(a) is amended to read as follows: [<-Struck out]

    [Struck out->]
    ‘(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. [<-Struck out]

    [Struck out->]
    ‘(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.’. [<-Struck out]

    [Struck out->] (b) APPOINTMENT AND REMOVAL OF BOARD MEMBERS- Section 7101(b) is amended-- [<-Struck out]

      [Struck out->] (1) in paragraph (2)(A) by striking ‘other members of the Board (including the Vice Chairman)’ and inserting ‘Board members other than the Chairman’; [<-Struck out]

      [Struck out->] (2) in paragraph (2)(B) by striking ‘paragraph’ and inserting ‘subparagraph’; and [<-Struck out]

      [Struck out->] (3) by striking paragraph (4) and inserting the following: [<-Struck out]

      [Struck out->]
      ‘(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.’. [<-Struck out]

    [Struck out->] (c) Acting Board Members- Section 7101(c) is amended by-- [<-Struck out]

      [Struck out->] (1) striking paragraph (1) and inserting the following: [<-Struck out]

      [Struck out->]
      ‘(1) The Chairman may from time to time designate one or more employees of the Department to serve as acting Board members.’; [<-Struck out]

      [Struck out->] (2) striking paragraph (2) in its entirety; and [<-Struck out]

      [Struck out->] (3) redesignating paragraph (3) as paragraph (2) and in that paragraph by-- [<-Struck out]

        [Struck out->] (A) striking ‘temporary Board members designated under this subsection and the number of’; and [<-Struck out]

        [Struck out->] (B) striking ‘section 7102(a)(2)(A)(ii) of this title’ and inserting in lieu thereof ‘paragraph (1)’. [<-Struck out]

    [Struck out->] (d) CHAIRMAN’S ANNUAL REPORT- Section 7101(d)(2) is amended-- [<-Struck out]

      [Struck out->] (1) in subparagraph (D) by striking ‘year; and’ and inserting ‘year;’; [<-Struck out]

      [Struck out->] (2) in subparagraph (E) by striking ‘year.’ and inserting ‘year; and’; and [<-Struck out]

      [Struck out->] (3) by adding at the end of paragraph (2) the following new subparagraph: [<-Struck out]

      [Struck out->]
      ‘(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.’. [<-Struck out]

    [Struck out->] (e) Conforming Amendments- [<-Struck out]

      [Struck out->] (1) Section 7101(d)(3)(B) is amended by striking ‘section 7103(d)’ and inserting ‘section 7101(b)’. [<-Struck out]

      [Struck out->] (2) Section 7101(e) is amended by striking ‘a temporary or’ and inserting ‘an’. [<-Struck out]

[Struck out->] SEC. 12303. ASSIGNMENT OF MATTERS BEFORE THE BOARD. [<-Struck out]

    [Struck out->] Section 7102 is amended to read as follows: [<-Struck out]

[Struck out->]
‘Sec. 7102. Assignment of matters before the Board [<-Struck out]

    [Struck out->]
    ‘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.’. [<-Struck out]

[Struck out->] SEC. 12304. DETERMINATIONS BY THE BOARD. [<-Struck out]

    [Struck out->] (a) IN GENERAL- Section 7103(a) is amended to read as follows: [<-Struck out]

    [Struck out->]
    ‘(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: [<-Struck out]

      [Struck out->]
      ‘(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. [<-Struck out]

      [Struck out->]
      ‘(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. [<-Struck out]

      [Struck out->]
      ‘(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-- [<-Struck out]

        [Struck out->]
        ‘(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 [<-Struck out]

        [Struck out->]
        ‘(B) an order granting appropriate relief or denying relief. [<-Struck out]

    [Struck out->] 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.’. [<-Struck out]

    [Struck out->] (b) RECONSIDERATION- Section 7103(b) is amended to read as follows: [<-Struck out]

    [Struck out->]
    ‘(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).’. [<-Struck out]

    [Struck out->] (c) ADMINISTRATIVE ALLOWANCE; NOTICE OF DETERMINATION- Section 7103 is further amended by adding at the end of the following: [<-Struck out]

    [Struck out->]
    ‘(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. [<-Struck out]

    [Struck out->]
    ‘(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.’. [<-Struck out]

[Struck out->] SEC. 12305. JURISDICTION OF THE BOARD. [<-Struck out]

    [Struck out->] Section 7104 is amended by-- [<-Struck out]

      [Struck out->] (a) striking the subsection designation ‘(a)’; [<-Struck out]

      [Struck out->] (b) striking ‘211(a)’ and inserting ‘511(a)’; and [<-Struck out]

      [Struck out->] (c) striking all after ‘made by the Board.’. [<-Struck out]

[Struck out->] SEC. 12306. APPELLATE PROCEDURE. [<-Struck out]

    [Struck out->] Section 7105(d) is amended by striking paragraph (5). [<-Struck out]

[Struck out->] SEC. 12307. MEDICAL OPINIONS. [<-Struck out]

    [Struck out->] Section 7109 is amended to read as follows: [<-Struck out]

[Struck out->]
‘Sec. 7109. Medical opinions [<-Struck out]

    [Struck out->]
    ‘(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-- [<-Struck out]

      [Struck out->]
      ‘(1) an employee of the Board who is licensed to practice medicine in any State; [<-Struck out]

      [Struck out->]
      ‘(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 [<-Struck out]

      [Struck out->]
      ‘(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. [<-Struck out]

    [Struck out->]
    ‘(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. [<-Struck out]

    [Struck out->]
    ‘(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.’. [<-Struck out]

[Struck out->] SEC. 12308. HEARINGS. [<-Struck out]

    [Struck out->] Section 7110 is amended to read as follows: [<-Struck out]

[Struck out->]
‘Sec. 7110. Hearings [<-Struck out]

    [Struck out->]
    ‘(a) The Board shall decide any appeal only after affording the appellant an opportunity for a hearing. [<-Struck out]

    [Struck out->]
    ‘(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. [<-Struck out]

    [Struck out->]
    ‘(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. [<-Struck out]

    [Struck out->]
    ‘(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).’. [<-Struck out]

[Struck out->] SEC. 12309. TABLE OF CONTENTS. [<-Struck out]

    [Struck out->] The table of contents at the beginning of chapter 71 is amended by-- [<-Struck out]

      [Struck out->] (1) striking ‘7102. Assignment of members of Board.’ and inserting ‘7102. Assignment of appellate matters.’; [<-Struck out]

      [Struck out->] (2) striking ‘7109. Independent medical opinions.’ and inserting ‘7109. Medical opinions.’; and [<-Struck out]

      [Struck out->] (3) striking ‘7110. Traveling sections.’ and inserting ‘7110. Hearings.’. [<-Struck out]

[Struck out->] SEC. 12310. EFFECTIVE DATES OF AWARDS BASED ON DIFFERENCE OF OPINION. [<-Struck out]

    [Struck out->] Section 5110 is amended by adding at the end the following new subsection: [<-Struck out]

    [Struck out->]
    ‘(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-- [<-Struck out]

      [Struck out->]
      ‘(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 [<-Struck out]

      [Struck out->]
      ‘(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.’. [<-Struck out]

Subtitle D--Veterans’ Appeals Improvements

SEC. 12301. BOARD OF VETERANS’ APPEALS.

    (a) BOARD MEMBERS AND PERSONNEL- Section 7101(a) of title 38, United States Code, is amended to read as follows:

    ‘(a)(1) There is in the Department a Board of Veterans’ Appeals (hereinafter 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 stenographic personnel as are necessary to conduct hearings and consider and dispose of matters properly before the Board in a timely manner.’.

    (b) ETHICAL AND LEGAL LIMITATIONS ON CHAIRMAN- Section 7101(b)(1) of such title is amended by inserting after the first sentence the following: ‘The Chairman shall be subject to the same ethical and legal limitations and restrictions concerning involvement in partisan political activities as apply to judges of the United States Court of Veterans Appeals.’.

    (c) APPOINTMENT AND REMOVAL OF BOARD MEMBERS- Section 7101(b) of such title is further 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.’.

    (d) ACTING BOARD MEMBERS- Section 7101(c) of such title is amended--

      (1) by 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) by striking paragraph (2); and

      (3) by 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 ‘paragraph (1)’.

    (e) CHAIRMAN’S ANNUAL REPORT- Section 7101(d)(2) of such title is amended--

      (1) by striking out ‘and’ at the end of subparagraph (D);

      (2) by striking out the period at the end of subparagraph (E) and inserting in lieu thereof ‘; and’; and

      (3) by adding at the end 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- Section 7101 of such title is further amended--

      (1) in subsection (d)(3)(B), by striking ‘section 7103(d)’ and inserting ‘section 7101(a)(2)’; and

      (2) in subsection (e), by striking ‘a temporary or’ and inserting ‘an’

SEC. 12302. DECISIONS BY THE BOARD.

    (a) ACTION BY BVA THROUGH SECTIONS- Sections 7102 and 7103 of title 38, United States Code, are amended to read as follows:

‘Sec. 7102. Decisions by the Board

    ‘A proceeding instituted before the Board shall be assigned to an individual member or a panel of members of the Board (other than the Chairman). A member or panel of members who are assigned a proceeding shall render a decision thereon, including any motion filed in connection therewith. The member or panel of members shall make a report under section 7104(d) of this title on any such determination, which report shall constitute the Board’s final disposition of the proceeding. Decisions by a panel shall be made by a majority of the members of the panel.

‘Sec. 7103. Reconsideration; correction of obvious errors

    ‘(a) The decision of a member or panel of the Board under section 7102 of this title is final unless the Chairman orders reconsideration of the case. Such an order may be made on the Chairman’s initiative or upon motion of the claimant.

    ‘(b)(1) If the Chairman orders reconsideration in a case decided by a single member, the matter shall be referred to a panel of not less than three Board members, not including the member who rendered the initial decision, which shall render its decision after reviewing the entire record before the Board. Such decisions shall be made by a majority vote of the members of the panel and shall constitute the final decision of the Board.

    ‘(2) If the Chairman orders reconsideration in a case decided by a panel of members, the matter shall be referred to an enlarged panel, not including the members of the panel which rendered the initial decision, which shall render its decision after reviewing the entire record before the Board. Such decisions shall be made by a majority vote of the members of the expanded panel and shall constitute the final decision of the Board.

    ‘(c) The Board on its own motion may correct an obvious error in the record, without regard to whether there has been a motion or order for reconsideration.’.

    (b) CLERICAL AMENDMENT- The items relating to sections 7102 and 7103 in the table of sections at the beginning of chapter 71 are amended to read as follows:

      ‘7102. Decisions by the Board.

      ‘7103. Reconsideration; correction of obvious errors.’.

SEC. 12303. TECHNICAL CORRECTION.

    Section 7104(a) of title 38, United States Code, is amended by striking out ‘211(a)’ and inserting in lieu thereof ‘511(a)’.

SEC. 12304. HEARINGS.

    (a) IN GENERAL- Section 7110 of title 38, United States Code, 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)(1) An appellant may request a hearing before the Board at either its principal location or at a regional office of the Department. A hearing held at a regional office shall (except as provided in paragraph (2)) 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 those hearings.

    ‘(2) In a case in which the Secretary is aware that the appellant is seriously ill or is under severe financial hardship, a hearing may be scheduled at a time earlier than would be provided under paragraph (1).

    ‘(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 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). Any such hearing shall be conducted in the same manner as, and shall be considered the equivalent of, a personal hearing. If the appellant declines to participate in a hearing through the use of such facilities and equipment, the opportunity of the appellant to a hearing as provided in subsection (c) shall not be affected.’.

    (b) CLERICAL AMENDMENT- The item relating to section 7110 in the table of sections at the beginning of chapter 71 of such title is amended to read as follows:

      ‘7110. Hearings.’.

SEC. 12305. ELIMINATION OF REQUIREMENT FOR ANNUAL INCOME QUESTIONNAIRES.

    Section 1506 of title 38, United States Code, is amended--

      (1) in paragraph (2), by striking out ‘shall’ and inserting in lieu thereof ‘may’; and

      (2) in paragraph (3), by striking out ‘file a revised report’ and inserting in lieu thereof ‘notify the Secretary’.

TITLE XIII--HUMAN RESOURCE MANAGEMENT

Subtitle A--Federal Workforce Restructuring Act of 1993

[Struck out->] SEC. 13001. SHORT TITLE. [<-Struck out]

    [Struck out->] This subtitle may be cited as the ‘Federal Workforce Restructuring Act of 1993’. [<-Struck out]

[Struck out->] SEC. 13002. AMENDMENTS TO CHAPTER 41 OF TITLE 5, UNITED STATES CODE. [<-Struck out]

    [Struck out->] (a) Chapter 41 of title 5, United States Code, is amended-- [<-Struck out]

      [Struck out->] (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;’; [<-Struck out]

      [Struck out->] (2) in section 4103-- [<-Struck out]

        [Struck out->] (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 [<-Struck out]

        [Struck out->] (B) in subsection (b)-- [<-Struck out]

          [Struck out->] (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.’; [<-Struck out]

          [Struck out->] (ii) by repealing paragraph (2) and redesignating paragraph (3) as paragraph (2); and [<-Struck out]

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

      [Struck out->] (3) in section 4105-- [<-Struck out]

        [Struck out->] (A) by striking ‘(a) at the beginning; and [<-Struck out]

        [Struck out->] (B) by repealing subsections (b) and (c); [<-Struck out]

      [Struck out->] (4) by repealing section 4106; [<-Struck out]

      [Struck out->] (5) in section 4107-- [<-Struck out]

        [Struck out->] (A) by amending the catchline to read as follows: [<-Struck out]

[Struck out->]
‘Sec. 4107. Restriction on degree training’; [<-Struck out]

        [Struck out->] (B) by repealing subsections (a) and (b) and redesignating subsections (c) and (d) as subsections (a) and (b), respectively; [<-Struck out]

        [Struck out->] (C) by amending subsection (a) (as so redesignated)-- [<-Struck out]

          [Struck out->] (i) by striking ‘subsection (d)’ and inserting ‘subsection (b)’; and [<-Struck out]

          [Struck out->] (ii) by striking ‘by, in, or through a non-Government facility’; and [<-Struck out]

        [Struck out->] (D) by amending paragraph (1) of subsection (b) (as so redesignated) by striking ‘subsection (c)’ and inserting ‘subsection (a)’; [<-Struck out]

      [Struck out->] (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’; [<-Struck out]

      [Struck out->] (7) in section 4113(b) by striking everything following the first sentence; [<-Struck out]

      [Struck out->] (8) by repealing section 4114; and [<-Struck out]

      [Struck out->] (9) in section 4118-- [<-Struck out]

        [Struck out->] (A) in subsection (a)(7) by striking ‘by, in, and through non-Government facilities’; [<-Struck out]

        [Struck out->] (B) by repealing subsection (b); and [<-Struck out]

        [Struck out->] (C) by redesignating subsections (c) and (d) as subsections (b) and (c), respectively. [<-Struck out]

    [Struck out->] (b) The analysis of chapter 41 of title 5, United States Code, is amended-- [<-Struck out]

      [Struck out->] (1) by striking the items relating to sections 4106 and 4114; and [<-Struck out]

      [Struck out->] (2) by amending the item relating to section 4107 to read as follows: [<-Struck out]

[Struck out->]

‘4107. Restriction on degree training.’.

[<-Struck out]

    [Struck out->] (c) The amendments made by this section are effective on the date of enactment of this Act. [<-Struck out]

[Struck out->] SEC. 13003. VOLUNTARY SEPARATION INCENTIVES. [<-Struck out]

    [Struck out->] (a) For the purpose of this section-- [<-Struck out]

      [Struck out->] (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 [<-Struck out]

      [Struck out->] (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-- [<-Struck out]

        [Struck out->] (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 [<-Struck out]

        [Struck out->] (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). [<-Struck out]

    [Struck out->] (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. [<-Struck out]

    [Struck out->] (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. [<-Struck out]

    [Struck out->] (c) A voluntary separation incentive-- [<-Struck out]

      [Struck out->] (1) shall be paid in a lump sum after the employee’s separation; [<-Struck out]

      [Struck out->] (2) shall be equal to the lesser of-- [<-Struck out]

        [Struck out->] (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 [<-Struck out]

        [Struck out->] (B) $25,000; [<-Struck out]

      [Struck out->] (3) shall not be a basis for payment, and shall not be included in the computation, of any other type of Government benefit; [<-Struck out]

      [Struck out->] (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 [<-Struck out]

      [Struck out->] (5) shall be paid from appropriations or funds available for the payment of the basic pay of the employee. [<-Struck out]

    [Struck out->] (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. [<-Struck out]

    [Struck out->] (e) The Director of the Office of Personnel Management may prescribe any regulations necessary for the administration of this Act. [<-Struck out]

    [Struck out->] (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. [<-Struck out]

    [Struck out->] (g) It is the sense of Congress that-- [<-Struck out]

      [Struck out->] (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 [<-Struck out]

      [Struck out->] (2) each agency should adjust its employment levels to achieve this result. [<-Struck out]

[Struck out->] SEC. 13004. REPAYMENT OF SEPARATION PAY. [<-Struck out]

    [Struck out->] (a) Section 5597 of title 5, United States Code, is amended by adding at the end the following new subsection: [<-Struck out]

    [Struck out->]
    ‘(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.’. [<-Struck out]

    [Struck out->] (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.’. [<-Struck out]

[Struck out->] SEC. 13005. ADDITIONAL AGENCY PAYMENTS TO FUND. [<-Struck out]

    [Struck out->] (a) Section 8334 of title 5, United States Code, is amended by adding at the end the following new subsection: [<-Struck out]

      [Struck out->]
      ‘(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).’. [<-Struck out]

    [Struck out->] (b) The amendment made by this section shall apply with respect to retirements occurring on or after the date of enactment of this Act. [<-Struck out]

SEC. 13001. SHORT TITLE.

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

SEC. 13002. TRAINING.

    (a) IN GENERAL- 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)--

          (i) by striking ‘In’ and all that follows through ‘maintain’ and inserting ‘In order to assist in achieving an agency’s mission and performance goals by improving employee and organizational performance, the head of each agency, in conformity with this chapter, shall establish, operate, maintain, and evaluate’;

          (ii) by striking ‘and’ at the end of paragraph (2);

          (iii) by redesignating paragraph (3) as paragraph (4); and

          (iv) by inserting after paragraph (2) the following:

      ‘(3) provide that information concerning the selection and assignment of employees for training and the applicable training limitations and restrictions be made available to employees of the agency; and’; 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.’; and

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

      (3) in section 4105--

        (A) in subsection (a) by striking ‘(a)’; and

        (B) by striking 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 striking 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)--

        (A) in the first sentence by striking ‘annually to the Office,’ and inserting ‘to the Office, at least once every 3 years, and’; and

        (B) by striking the matter following the first sentence and inserting the following: ‘The report shall set forth--

      ‘(1) information needed to determine that training is being provided in a manner which is in compliance with applicable laws intended to protect or promote equal employment opportunity; and

      ‘(2) information concerning the expenditures of the agency in connection with training and such other information as the Office considers appropriate.’;

      (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 striking subsection (b); and

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

    (b) TECHNICAL AND CONFORMING AMENDMENTS- Title 5, United States Code, is amended--

      (1) in section 3381(e) by striking ‘4105(a),’ and inserting ‘4105,’; and

      (2) in the analysis for chapter 41--

        (A) by repealing the items relating to sections 4106 and 4114; and

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

      ‘4107. Restriction on degree training.’.

    (c) EFFECTIVE DATE- The amendments made by this section shall become effective on the date of enactment of this Act.

SEC. 13003. VOLUNTARY SEPARATION INCENTIVES.

    (a) DEFINITIONS- For the purpose of this section--

      (1) the term ‘agency’ means an Executive agency (as defined by 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) the term ‘employee’ means an employee (as defined by section 2105 of title 5, United States Code) who is employed by an agency, is serving under an appointment without time limitation, and has been currently employed for a continuous period of at least 12 months; such term includes an individual employed by a county committee established under section 8(b) of the Soil Conservation and Domestic Allotment Act (16 U.S.C. 590h(b)), 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) AUTHORITY-

      (1) IN GENERAL- In order to avoid or minimize the need for involuntary separations due to a reduction in force, reorganization, transfer of function, or other similar action, and subject to paragraphs (2) and (3), the head of an agency may pay, or authorize the payment of, voluntary separation incentive payments to agency employees--

        (A) in any component of the agency;

        (B) in any occupation;

        (C) in any geographic location; or

        (D) on the basis of any combination of factors under subparagraphs (A) through (C).

      (2) REQUIREMENTS APPLICABLE TO EMPLOYEES-

        (A) IN GENERAL- In order to receive an incentive payment, an employee must agree, during the applicable period under subparagraph (B), to separate from service with the agency (whether by retirement or resignation) before such period ends.

        (B) DESIGNATION OF PERIOD- The applicable period, for purposes of any agency component, occupation, geographic location, or combination thereof--

          (i) shall be a continuous 90-day period;

          (ii) shall be designated by the head of the agency involved; and

          (iii) shall end not later than December 31, 1994.

        (C) EXCEPTION- An employee who does not separate from service before the end of the applicable period under subparagraph (B) shall be ineligible for an incentive payment under this section unless--

          (i) the agency head determines that, in order to ensure the performance of the agency’s mission, it is necessary to delay such employee’s separation; and

          (ii) the employee completes any additional period of service agreed to (ending not later than 2 years after the last day of the period otherwise applicable under subparagraph (B)).

      (3) REQUIREMENTS APPLICABLE TO AGENCIES- Before offering any voluntary separation incentive payments to employees within any agency component, occupation, geographic location, or combination thereof, the head of the agency involved shall make available to all employees of such agency, and to the exclusive representative of any such employees, a written plan which--

        (A) shall specify which agency components, occupations, geographic locations, or combinations thereof have been identified for incentives, and the percentage of employees within each who are supervisors or managers;

        (B) shall indicate the beginning and ending dates of any periods under paragraph (2)(B), and the agency components, occupations, geographic locations, or combinations thereof to which they apply;

        (C) shall state whether any additional personnel reductions are anticipated after any exercise of authority under this section and, if so, what types of retraining, placement, or other similar measures will be provided in order to avoid involuntary separations; and

        (D) shall include any other information which may be necessary in order to permit employees who are eligible for voluntary separation incentive payments to make an informed decision.

    (c) AMOUNT AND TREATMENT OF PAYMENTS- A voluntary separation incentive payment--

      (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) EFFECT OF SUBSEQUENT EMPLOYMENT WITH THE GOVERNMENT-

      (1) IN GENERAL- An employee who has received a voluntary separation incentive payment under this section and accepts employment with the Government of the United States within 2 years after the date of the separation on which the payment is based shall be required to repay the entire amount of the incentive payment to the agency that paid the incentive payment.

      (2) WAIVER AUTHORITY-

        (A) EXECUTIVE 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.

        (B) LEGISLATIVE BRANCH- 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.

        (C) JUDICIAL BRANCH- 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) REGULATIONS- The Director of the Office of Personnel Management may prescribe any regulations necessary for the administration of subsections (a) through (d).

    (f) EMPLOYEES OF THE JUDICIAL BRANCH- 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) for individuals serving in the judicial branch.

SEC. 13004. COORDINATION WITH OTHER PROVISIONS OF LAW.

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

    ‘(g)(1) 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 after 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.

    ‘(2)(A) If the employment is with an Executive agency, 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.

    ‘(B) 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.

    ‘(C) 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) CENTRAL INTELLIGENCE AGENCY- 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 after 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 CONTRIBUTIONS TO THE RETIREMENT FUND.

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

    ‘(m)(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 basic pay of each employee of the agency who retires under section 8336(d).

    ‘(2) For the purpose of this subsection, the term ‘final basic pay’, with respect to an employee, means the total amount of basic pay which would be payable for a year of service by such employee, computed using the employee’s final rate of basic pay, and, if last serving on other than a full-time basis, with appropriate adjustment therefor.’.

    (b) APPLICABILITY- 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

[Struck out->] SEC. 1301. SES ANNUAL LEAVE ACCUMULATION. [<-Struck out]

    [Struck out->] (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. [<-Struck out]

SEC. 13101. 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 amended to read as follows:

    ‘(f)(1) This subsection applies with respect to annual leave accrued by an individual while serving in a position in--

      ‘(A) the Senior Executive Service;

      ‘(B) the Senior Foreign Service;

      ‘(C) the Defense Intelligence Senior Executive Service;

      ‘(D) the Senior Cryptologic Executive Service; or

      ‘(E) the Federal Bureau of Investigation and Drug Enforcement Administration Senior Executive Service.

    ‘(2) For purposes of applying any limitation on accumulation under this section with respect to any annual leave described in paragraph (1)--

      ‘(A) ‘30 days’ in subsection (a) shall be deemed to read ‘90 days’; and

      ‘(B) ‘45 days’ in subsection (b) shall be deemed to read ‘90 days’.’.

    (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 [Struck out->] 6304, [<-Struck out] 6304 (determined applying the amendment made by subsection (a)), 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.

[Struck out->]

TITLE XIV--REINVENTING SUPPORT SERVICES

[<-Struck out]

[Struck out->] SEC. 14001. SHORT TITLE. [<-Struck out]

    [Struck out->] This title may be cited as the ‘Government Information Dissemination and Printing Improvement Act of 1993’. [<-Struck out]

[Struck out->] SEC. 14002. PURPOSE. [<-Struck out]

    [Struck out->] 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. [<-Struck out]

[Struck out->] SEC. 14003. DEFINITIONS. [<-Struck out]

    [Struck out->] As used herein-- [<-Struck out]

      [Struck out->] (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 [<-Struck out]

      [Struck out->] (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. [<-Struck out]

[Struck out->] SEC. 14004. EXECUTIVE BRANCH PRINTING POLICY. [<-Struck out]

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

    [Struck out->] (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. [<-Struck out]

    [Struck out->] (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. [<-Struck out]

[Struck out->] SEC. 14005. TRANSITION TO EXECUTIVE BRANCH PRINTING. [<-Struck out]

    [Struck out->] (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. [<-Struck out]

    [Struck out->] (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. [<-Struck out]

    [Struck out->] (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. [<-Struck out]

[Struck out->] SEC. 14006. AUTHORITY AND FUNCTIONS OF THE DIRECTOR OF THE OFFICE OF MANAGEMENT AND BUDGET. [<-Struck out]

    [Struck out->] 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-- [<-Struck out]

      [Struck out->] (1) make information dissemination products available on timely, equitable and cost effective terms; [<-Struck out]

      [Struck out->] (2) encourage a diversity of public and private information dissemination products; [<-Struck out]

      [Struck out->] (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 [<-Struck out]

      [Struck out->] (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. [<-Struck out]

[Struck out->] SEC. 14007. FEDERAL AGENCY RESPONSIBILITIES. [<-Struck out]

    [Struck out->] The head of each Executive branch agency shall-- [<-Struck out]

      [Struck out->] (1) ensure that the public has timely and equitable access to the agency’s public information; [<-Struck out]

      [Struck out->] (2) disseminate public information in an efficient, cost effective, and economical manner; [<-Struck out]

      [Struck out->] (3) provide notice to the Superintendent of Documents and otherwise comply with the requirements of section 1710, title 44, United States Code; [<-Struck out]

      [Struck out->] (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; [<-Struck out]

      [Struck out->] (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 [<-Struck out]

      [Struck out->] (6) regularly solicit and consider public input on the agency’s information dissemination program. [<-Struck out]

[Struck out->] SEC. 14008. DEPOSITORY LIBRARY PROGRAM. [<-Struck out]

    [Struck out->] (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. [<-Struck out]

    [Struck out->] (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. [<-Struck out]

    [Struck out->] (c) Agency information dissemination programs shall include provisions to maximize the distribution of information dissemination products to the depository libraries. [<-Struck out]

[Struck out->] SEC. 14009. ESTABLISHMENT AND OPERATION OF GOVERNMENT INFORMATION LOCATOR SERVICE. [<-Struck out]

    [Struck out->] Section 3511 of title 44, United States Code, is amended to read as follows: [<-Struck out]

    [Struck out->]
    ‘(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. [<-Struck out]

    [Struck out->]
    ‘(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-- [<-Struck out]

      [Struck out->]
      ‘(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; [<-Struck out]

      [Struck out->]
      ‘(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 [<-Struck out]

      [Struck out->]
      ‘(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.’. [<-Struck out]

[Struck out->] SEC. 14010. TECHNICAL AND CONFORMING AMENDMENTS. [<-Struck out]

    [Struck out->] (a) Section 103 of title 44, United States Code, is amended by striking ‘Government,’ and inserting ‘Congressional and Judicial branch publications’. [<-Struck out]

    [Struck out->] (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. [<-Struck out]

    [Struck out->] (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. [<-Struck out]

    [Struck out->] (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.’. [<-Struck out]

    [Struck out->] (e) Sections 503, 504, 508, 509, 510, 512, 513, and 514 of title 44, United States Code, are repealed. [<-Struck out]

    [Struck out->] (f) Chapter 11 of title 44, United States Code, is repealed in its entirety. [<-Struck out]

    [Struck out->] (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. [<-Struck out]

    [Struck out->] (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.’. [<-Struck out]

    [Struck out->] (i) Section 1504 of title 44, United States Code, is repealed. [<-Struck out]

    [Struck out->] (j) Section 1506 of title 44, United States Code, is amended by striking ‘Public Printer or Acting Printer’. [<-Struck out]

    [Struck out->] (k) Section 1701 of title 44, United States Code, is repealed. [<-Struck out]

    [Struck out->] (l) Section 207 of Public Law 102-392, Legislative Branch Appropriations Act, 1993, is repealed. [<-Struck out]

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. TRANSFER OF FUNCTIONS.

    (a) PUBLIC PRINTER- The position of Public Printer and all functions of the position of Public Printer (other than functions of the Superintendent of Documents) under title 44, United States Code, or any other provision of law are transferred from the legislative branch of the Government to the executive branch of the Government.

    (b) SUPERINTENDENT OF DOCUMENTS- The position of Superintendent of Documents and all functions of the position of Superintendent of Documents under title 44, United States Code, or any other provision of law are transferred to the Library of Congress and shall be carried out by the Superintendent of Documents under the direction of the Librarian of Congress. The Superintendent of Documents shall be appointed by, and serve at the pleasure of, the Librarian of Congress.

    (c) REVOCATION OF CHARTERS- All printing plant charters authorized under section 501 of title 44, United States Code, are revoked.

    (d) EFFECTIVE DATE- The transfer under subsection (a) and the revocation under subsection (c) shall each take effect 2 years after the date of the enactment of this title. The transfer under subsection (b) shall take effect one year after the date of the enactment of this title.

SEC. 14003. GOVERNMENT PUBLICATIONS TO BE AVAILABLE THROUGHOUT THE GOVERNMENT.

    All Government publications shall be available throughout the Government to any department, agency, or entity of the Government for use or redissemination.

SEC. 14004. INVENTORY AND FURNISHING OF GOVERNMENT PUBLICATIONS.

    Each department, agency, and other entity of the Government shall--

      (1) establish and maintain a comprehensive inventory of its Government publications;

      (2) make such inventory available through the electronic directory under chapter 41 of title 44, United States Code; and

      (3) in the form and manner prescribed by the Superintendent of Documents, furnish its Government publications to the Superintendent of Documents.

SEC. 14005. ADDITIONAL RESPONSIBILITIES OF THE PUBLIC PRINTER.

    (a) IN GENERAL- The Public Printer shall, with respect to the executive branch of the Government and the judicial branch of the Government--

      (1) use all necessary measures to remedy neglect, delay, duplication, and waste in the public printing and binding of Government publications, including the reduction and elimination of internal printing and high-speed duplicating capacities of departments, agencies, and entities;

      (2) prescribe Government publishing standards, which, to the greatest extent practicable, shall be consistent with the United States Government Printing Office Style Manual;

      (3) prescribe Government procurement and manufacturing requirements for printing paper and writing paper, which, to the greatest extent practicable, shall be consistent with Government Paper Specification Standards;

      (4) authorize the acquisition and transfer of equipment requisitioned by publishing facilities authorized under section 501 of title 44, United States Code;

      (5) authorize the disposal of such equipment pursuant to section 312 of title 44, United States Code; and

      (6) establish policy for the acquisition of printing, which, to the greatest extent practicable, shall be consistent with (A) Printing Procurement Regulation (GPO Publication 305.3), (B) Government Printing and Binding Regulations (JCP No. 26), and (C) Printing Procurement Department Instruction (PP304.1B).

    (b) POLICY STANDARDS- The policy referred to in subsection (a)(6) shall be formulated to maximize competitive procurement from the private sector. Government in-house printing and duplicating operations authorized under section 501 of title 44, United States Code, or otherwise authorized by law, may be used if they provide printing at the lowest cost to the Government, taking into consideration the total expense of production, materials, labor, equipment, and general and administrative expense, including all levels of overhead.

SEC. 14006. ADDITIONAL RESPONSIBILITIES OF THE SUPERINTENDENT OF DOCUMENTS.

    (a) GOVERNMENT PUBLICATIONS TO BE FURNISHED TO THE SUPERINTENDENT OF DOCUMENTS- If a department, agency, or other entity of the Government publishes a Government publication, the head of the department, agency, or entity shall furnish the Government publication to the Superintendent of Documents not later than the date of release of the material to the public.

    (b) DISSEMINATION OR REPUBLICATION- In addition to any other dissemination provided for by law, the Superintendent of Documents shall disseminate or republish Government publications, if, as determined by the Superintendent, the dissemination by the department, agency, or entity of the Government is inadequate. The Superintendent shall have authority to carry out the preceding sentence by appropriate means, including the dissemination and republication of Government publications furnished under subsection (a), with the cost of dissemination and republication to be borne by the department, agency, or entity involved.

    (c) COST- The cost charged to the public by the Superintendent of Documents under subsection (b) for any Government publication (whether such Government publication is made available to the public by a department, agency, or entity of the Government, or by the Superintendent of Documents) may include the incremental cost of dissemination, but may not include any profit.

SEC. 14007. DEPOSITORY LIBRARIES.

    In addition to any other distribution provided for by law, the Superintendent of Documents shall make Government publications available to designated depository libraries and State libraries. The Superintendent shall have authority to carry out the preceding sentence by appropriate means, including the dissemination and republication of Government publications furnished under section 14006(a), with the cost of dissemination and republication to be borne by the department, agency, or entity involved.

SEC. 14008. DEFINITIONS.

    As used in this title--

      (1) the term ‘Government publication’ means any informational matter that is published at Government expense, or as required by law; and

      (2) the term ‘publish’ means, with respect to informational matter, make available for dissemination.

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

[Struck out->] SEC. 16501. AUTHORIZATION OF APPROPRIATIONS FOR ENHANCING DEBT COLLECTION. [<-Struck out]

    [Struck out->] (a) Title 31, United States Code, is amended by adding, after section 3720A, a section 3720B, as follows: [<-Struck out]

[Struck out->]
‘Sec. 3720B. Authorization of appropriations for enhancing debt collection [<-Struck out]

    [Struck out->]
    ‘(a) To the extent and in the amounts provided in advance in appropriations acts-- [<-Struck out]

      [Struck out->]
      ‘(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; [<-Struck out]

      [Struck out->]
      ‘(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 [<-Struck out]

      [Struck out->]
      ‘(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. [<-Struck out]

    [Struck out->]
    ‘(b) Debt is defined as delinquent under standards prescribed or to be prescribed by the Secretary of the Treasury. [<-Struck out]

    [Struck out->]
    ‘(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.’. [<-Struck out]

    [Struck out->] (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: [<-Struck out]

      [Struck out->]
      ‘Section 3720B. Authorization of appropriations for enhancing debt collection.’. [<-Struck out]

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

[Struck out->] SEC. 16601. DEBT COLLECTION FUND. [<-Struck out]

    [Struck out->] (a) Section 3011 of title 28, United States Code, is amended to read as follows: [<-Struck out]

[Struck out->]
‘Sec. 3011. Establishment of debt collection fund; assessment of surcharge on debt [<-Struck out]

    [Struck out->]
    ‘(a) AUTHORIZATION OF APPROPRIATIONS- [<-Struck out]

      [Struck out->]
      ‘(1) Establishment of debt collection Fund- [<-Struck out]

        [Struck out->]
        ‘(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). [<-Struck out]

        [Struck out->]
        ‘(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. [<-Struck out]

      [Struck out->]
      ‘(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. [<-Struck out]

      [Struck out->]
      ‘(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. [<-Struck out]

    [Struck out->]
    ‘(b) Surcharge- [<-Struck out]

      [Struck out->]
      ‘(1) Assessment of surcharge on debt- [<-Struck out]

        [Struck out->]
        ‘(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. [<-Struck out]

        [Struck out->]
        ‘(B) Paragraph (b)(1)(A) shall not apply if-- [<-Struck out]

          [Struck out->]
          ‘(i) the United States receives an attorney’s fee in connection with the enforcement of the claim; [<-Struck out]

          [Struck out->]
          ‘(ii) the law upon which the action or claim is based provides any other amount to cover such costs; or [<-Struck out]

          [Struck out->]
          ‘(iii) the judgment or settlement is for a claim under title 26, United States Code. [<-Struck out]

        [Struck out->]
        ‘(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. [<-Struck out]

      [Struck out->]
      ‘(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.’. [<-Struck out]

    [Struck out->] (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.’. [<-Struck out]

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.’.

    HR 3400 RH----2

    HR 3400 RH----3

    HR 3400 RH----4

    HR 3400 RH----5

    HR 3400 RH----6

    HR 3400 RH----7

    HR 3400 RH----8

    HR 3400 RH----9

    HR 3400 RH----10

    HR 3400 RH----11

    HR 3400 RH----12

    HR 3400 RH----13

    HR 3400 RH----14

    HR 3400 RH----15

    HR 3400 RH----16

    HR 3400 RH----17

    HR 3400 RH----18

    HR 3400 RH----19

    HR 3400 RH----20