[104th Congress Public Law 204]
[From the U.S. Government Printing Office]
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[DOCID: f:publ204.104]
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DEPARTMENTS OF VETERANS AFFAIRS AND HOUSING AND URBAN DEVELOPMENT, AND
INDEPENDENT AGENCIES APPROPRIATIONS ACT, 1997
[[Page 110 STAT. 2874]]
Public Law 104-204
104th Congress
An Act
Making appropriations for the Departments of Veterans Affairs and
Housing and Urban Development, and for sundry independent agencies,
boards, commissions, corporations, and offices for the fiscal year
ending September 30, 1997, and for other purposes. <<NOTE: Sept. 26,
1996 - [H.R. 3666]>>
Be it enacted by the Senate and <<NOTE: Departments of Veterans
Affairs and Housing and Urban Development, and Independent Agencies
Appropriations Act, 1997.>> House of Representatives of the United
States of America in Congress assembled, That the following sums are
appropriated, out of any money in the Treasury not otherwise
appropriated, for the Departments of Veterans Affairs and Housing and
Urban Development, and for sundry independent agencies, boards,
commissions, corporations, and offices for the fiscal year ending
September 30, 1997, and for other purposes, namely:
TITLE I
DEPARTMENT OF VETERANS AFFAIRS
Veterans Benefits Administration
compensation and pensions
(including transfers of funds)
For the payment of compensation benefits to or on behalf of veterans
as authorized by law (38 U.S.C. 107, chapters 11, 13, 51, 53, 55, and
61); pension benefits to or on behalf of veterans as authorized by law
(38 U.S.C. chapters 15, 51, 53, 55, and 61; 92 Stat. 2508); and burial
benefits, emergency and other officers' retirement pay, adjusted-service
credits and certificates, payment of premiums due on commercial life
insurance policies guaranteed under the provisions of Article IV of the
Soldiers' and Sailors' Civil Relief Act of 1940, as amended, and for
other benefits as authorized by law (38 U.S.C. 107, 1312, 1977, and
2106, chapters 23, 51, 53, 55, and 61; 50 U.S.C. App. 540-548; 43 Stat.
122, 123; 45 Stat. 735; 76 Stat. 1198); $18,671,259,000, to remain
available until expended: Provided, That not to exceed $26,417,000 of
the amount appropriated shall be reimbursed to ``General operating
expenses'' and ``Medical care'' for necessary expenses in implementing
those provisions authorized in the Omnibus Budget Reconciliation Act of
1990, and in the Veterans' Benefits Act of 1992 (38 U.S.C. chapters 51,
53, and 55), the funding source for which is specifically provided as
the ``Compensation and pensions'' appropriation: Provided further, That
such sums as may be earned on an actual qualifying patient basis, shall
be reimbursed to ``Medical facilities revolving fund'' to augment the
funding of individual
[[Page 110 STAT. 2875]]
medical facilities for nursing home care provided to pensioners as
authorized by the Veterans' Benefits Act of 1992 (38 U.S.C. chapter 55).
readjustment benefits
For the payment of readjustment and rehabilitation benefits to or on
behalf of veterans as authorized by 38 U.S.C. chapters 21, 30, 31, 34,
35, 36, 39, 51, 53, 55, and 61, $1,377,000,000, to remain available
until expended: Provided, That funds shall be available to pay any court
order, court award or any compromise settlement arising from litigation
involving the vocational training program authorized by section 18 of
Public Law 98-77, as amended.
veterans insurance and indemnities
For military and naval insurance, national service life insurance,
servicemen's indemnities, service-disabled veterans insurance, and
veterans mortgage life insurance as authorized by 38 U.S.C. chapter 19;
70 Stat. 887; 72 Stat. 487, $38,970,000, to remain available until
expended.
guaranty and indemnity program account
(including transfer of funds)
For the cost of direct and guaranteed loans, such sums as may be
necessary to carry out the program, as authorized by 38 U.S.C. chapter
37, as amended: Provided, That such costs, including the cost of
modifying such loans, shall be as defined in section 502 of the
Congressional Budget Act of 1974, as amended.
In addition, for administrative expenses to carry out the direct and
guaranteed loan programs, $105,226,000, which may be transferred to and
merged with the appropriation for ``General operating expenses''.
loan guaranty program account
(including transfer of funds)
For the cost of direct and guaranteed loans, such sums as may be
necessary to carry out the program, as authorized by 38 U.S.C. chapter
37, as amended: Provided, That such costs, including the cost of
modifying such loans, shall be as defined in section 502 of the
Congressional Budget Act of 1974, as amended.
In addition, for administrative expenses to carry out the direct and
guaranteed loan programs, $33,810,000, which may be transferred to and
merged with the appropriation for ``General operating expenses''.
direct loan program account
(including transfer of funds)
For the cost of direct loans, such sums as may be necessary to carry
out the program, as authorized by 38 U.S.C. chapter 37, as amended:
Provided, That such costs, including the cost of modifying such loans,
shall be as defined in section 502 of the Congressional Budget Act of
1974, as amended: Provided further,
[[Page 110 STAT. 2876]]
That during 1997, within the resources available, not to exceed $300,000
in gross obligations for direct loans are authorized for specially
adapted housing loans.
In addition, for administrative expenses to carry out the direct
loan program, $80,000, which may be transferred to and merged with the
appropriation for ``General operating expenses''.
education loan fund program account
(including transfer of funds)
For the cost of direct loans, $1,000, as authorized by 38 U.S.C.
3698, as amended: Provided, That such costs, including the cost of
modifying such loans, shall be as defined in section 502 of the
Congressional Budget Act of 1974, as amended: Provided
further, That these funds are available to subsidize gross obligations
for the principal amount of direct loans not to exceed $3,000.
In addition, for administrative expenses necessary to carry out the
direct loan program, $195,000, which may be transferred to and merged
with the appropriation for ``General operating expenses''.
vocational rehabilitation loans program account
(including transfer of funds)
For the cost of direct loans, $49,000, as authorized by 38 U.S.C.
chapter 31, as amended: Provided, That such costs, including the cost of
modifying such loans, shall be as defined in section 502 of the
Congressional Budget Act of 1974, as amended: Provided further, That
these funds are available to subsidize gross obligations for the
principal amount of direct loans not to exceed $2,822,000.
In addition, for administrative expenses necessary to carry out the
direct loan program, $377,000, which may be transferred to and merged
with the appropriation for ``General operating expenses''.
native american veteran housing loan program account
(including transfer of funds)
For administrative expenses to carry out the direct loan program
authorized by 38 U.S.C. chapter 37, subchapter V, as
amended, $205,000, which may be transferred to and merged with the
appropriation for ``General operating expenses''.
Veterans Health Administration
medical care
For necessary expenses for the maintenance and operation of
hospitals, nursing homes, and domiciliary facilities; for furnishing, as
authorized by law, inpatient and outpatient care and treatment to
beneficiaries of the Department of Veterans Affairs, including care and
treatment in facilities not under the jurisdiction of the Department;
and furnishing recreational facilities, supplies, and equipment;
funeral, burial, and other expenses incidental thereto for beneficiaries
receiving care in the Department; administrative expenses in support of
planning, design, project management, real
[[Page 110 STAT. 2877]]
property acquisition and disposition, construction and renovation of any
facility under the jurisdiction or for the use of the Department;
oversight, engineering and architectural activities not charged to
project cost; repairing, altering, improving or providing facilities in
the several hospitals and homes under the jurisdiction of the
Department, not otherwise provided for, either by contract or by the
hire of temporary employees and purchase of materials; uniforms or
allowances therefor, as authorized by 5 U.S.C. 5901-5902; aid to State
homes as authorized by 38 U.S.C. 1741; and not to exceed $8,000,000 to
fund cost comparison studies as referred to in 38 U.S.C. 8110(a)(5);
$17,008,447,000, plus reimbursements: Provided, That of the funds made
available under this heading, $700,000,000 is for the equipment and land
and structures object classifications only, which amount shall not
become available for obligation until August 1, 1997, and shall remain
available until September 30, 1998.
medical and prosthetic research
For necessary expenses in carrying out programs of medical and
prosthetic research and development as authorized by 38 U.S.C. chapter
73, to remain available until September 30, 1998, $262,000,000, plus
reimbursements.
medical administration and miscellaneous operating expenses
For necessary expenses in the administration of medical, hospital,
nursing home, domiciliary, construction, supply, and research
activities, as authorized by law; administrative expenses in support of
planning, design, project management, architectural, engineering, real
property acquisition and disposition, construction and renovation of any
facility under the jurisdiction or for the use of the Department of
Veterans Affairs, including site acquisition; engineering and
architectural activities not charged to project cost; and research and
development in building construction technology; $61,207,000, plus
reimbursements.
transitional housing loan program
(including transfer of funds)
For the cost of direct loans, $7,000, as authorized by Public Law
102-54, section 8, which shall be transferred from the ``General post
fund'': Provided, That such costs, including the cost of modifying such
loans, shall be as defined in section 502 of the Congressional Budget
Act of 1974, as amended: Provided further, That these funds are
available to subsidize gross obligations for the principal amount of
direct loans not to exceed $70,000.
In addition, for administrative expenses to carry out the direct
loan program, $54,000, which shall be transferred from the ``General
post fund'', as authorized by Public Law 102-54, section 8.
[[Page 110 STAT. 2878]]
Departmental Administration
general operating expenses
For necessary operating expenses of the Department of Veterans
Affairs, not otherwise provided for, including uniforms or
allowances therefor; not to exceed $25,000 for official reception and
representation expenses; hire of passenger motor vehicles; and
reimbursement of the General Services Administration for security guard
services, and the Department of Defense for the cost of overseas
employee mail; $827,584,000: Provided, That during fiscal year 1997,
notwithstanding any other provision of law, the number of individuals
employed by the Department of Veterans Affairs (1) in other than
``career appointee'' positions in the Senior Executive Service shall not
exceed 6, and (2) in schedule C positions shall not exceed 11: Provided
further, That funds under this heading shall be available to administer
the Service Members Occupational Conversion and Training Act.
national cemetery system
For necessary expenses for the maintenance and operation of the
National Cemetery System, not otherwise provided for,
including uniforms or allowances therefor; cemeterial expenses as
authorized by law; purchase of two passenger motor vehicles for use in
cemeterial operations; and hire of passenger motor vehicles,
$76,864,000.
office of inspector general
For necessary expenses of the Office of Inspector General in
carrying out the Inspector General Act of 1978, as amended, $30,900,000.
construction, major projects
For constructing, altering, extending and improving any of the
facilities under the jurisdiction or for the use of the Department of
Veterans Affairs, or for any of the purposes set forth in sections 316,
2404, 2406, 8102, 8103, 8106, 8108, 8109, 8110, and 8122 of title 38,
United States Code, including planning, architectural and engineering
services, maintenance or guarantee period services costs associated with
equipment guarantees provided under the project, services of claims
analysts, offsite utility and storm drainage system construction costs,
and site acquisition, where the estimated cost of a project is
$3,000,000 or more or where funds for a project were made available in a
previous major project appropriation, $250,858,000, of which $32,100,000
shall be for the replacement hospital at Travis Air Force Base,
Fairfield, California, and shall not be released for obligation prior to
January 1, 1998, unless action is taken by the Congress specifically
making such funds available, and all funds appropriated under the above
heading are to remain available until expended: Provided, That except
for advance planning of projects funded through the advance planning
fund and the design of projects funded through the design fund, none of
these funds shall be used for any project which has not been considered
and approved by the Congress in the budgetary process: Provided further,
That funds provided in this appropriation
[[Page 110 STAT. 2879]]
for fiscal year 1997, for each approved project shall be obligated (1)
by the awarding of a construction documents contract by September 30,
1997, and (2) by the awarding of a construction contract by September
30, 1998: Provided further, <<NOTE: Reports.>> That the Secretary shall
promptly report in writing to the Comptroller General and to the
Committees on Appropriations any approved major construction project in
which obligations are not incurred within the time limitations
established above; and the Comptroller General shall review the report
in accordance with the procedures established by section 1015 of the
Impoundment Control Act of 1974 (title X of Public Law 93-344): Provided
further, That no funds from any other account except the ``Parking
revolving fund'', may be obligated for constructing, altering,
extending, or improving a project which was approved in the budget
process and funded in this account until one year after substantial
completion and beneficial occupancy by the Department of Veterans
Affairs of the project or any part thereof with respect to that part
only.
construction, minor projects
For constructing, altering, extending, and improving any of the
facilities under the jurisdiction or for the use of the Department of
Veterans Affairs, including planning, architectural and engineering
services, maintenance or guarantee period services costs associated with
equipment guarantees provided under the project, services of claims
analysts, offsite utility and storm drainage system construction costs,
and site acquisition, or for any of the purposes set forth in sections
316, 2404, 2406, 8102, 8103, 8106, 8108, 8109, 8110, and 8122 of title
38, United States Code, where the estimated cost of a project is less
than $3,000,000; $175,000,000, to remain available until expended, along
with unobligated balances of previous ``Construction, minor projects''
appropriations which are hereby made available for any project where the
estimated cost is less than $3,000,000: Provided, That funds in this
account shall be available for (1) repairs to any of the nonmedical
facilities under the jurisdiction or for the use of the Department which
are necessary because of loss or damage caused by any natural disaster
or catastrophe, and (2) temporary measures necessary to prevent or to
minimize further loss by such causes.
parking revolving fund
For the parking revolving fund as authorized by 38 U.S.C. 8109,
$12,300,000, together with income from fees collected, to remain
available until expended, which shall be available for all authorized
expenses except operations and maintenance costs, which will be funded
from ``Medical care''.
grants for construction of state extended care facilities
For grants to assist States to acquire or construct State nursing
home and domiciliary facilities and to remodel, modify or alter existing
hospital, nursing home and domiciliary facilities in State homes, for
furnishing care to veterans as authorized by 38 U.S.C. 8131-8137,
$47,397,000, to remain available until expended.
[[Page 110 STAT. 2880]]
grants for the construction of state veterans cemeteries
For grants to aid States in establishing, expanding, or improving
State veteran cemeteries as authorized by 38 U.S.C. 2408, $1,000,000, to
remain available until expended.
franchise fund
(including transfer of funds)
There is hereby established in the Treasury <<NOTE: 31 USC 501
note.>> a franchise fund pilot, as authorized by section 403 of Public
Law 103-356, to be available as provided in such section for expenses
and equipment necessary for the maintenance and operation of such
administrative services as the Secretary determines may be performed
more advantageously as central services: Provided, That any inventories,
equipment and other assets pertaining to the services to be provided by
the franchise fund, either on hand or on order, less the related
liabilities or unpaid obligations, and any appropriations made hereafter
for the purpose of providing capital, shall be used to capitalize the
franchise fund: Provided further, That the franchise fund may be paid in
advance from funds available to the Department and other Federal
agencies for which such centralized services are performed, at rates
which will return in full all expenses of operation, including accrued
leave, depreciation of fund plant and equipment, amortization of
automated data processing (ADP) software and systems (either acquired or
donated), and an amount necessary to maintain a reasonable operating
reserve, as determined by the Secretary: Provided further, That the
franchise fund shall provide services on a competitive basis: Provided
further, That an amount not to exceed four percent of the total annual
income to such fund may be retained in the fund for fiscal year 1997 and
each fiscal year thereafter, to remain available until expended, to be
used for the acquisition of capital equipment and for the improvement
and implementation of Departmental financial management, ADP, and other
support systems: Provided further, That no later than thirty days after
the end of each fiscal year amounts in excess of this reserve limitation
shall be transferred to the Treasury: Provided further, That such
franchise fund pilot shall terminate pursuant to section 403(f) of
Public Law 103-356.
administrative provisions
(including transfer of funds)
Sec. 101. Any appropriation for 1997 for ``Compensation and
pensions'', ``Readjustment benefits'', and ``Veterans insurance and
indemnities'' may be transferred to any other of the mentioned
appropriations.
Sec. 102. Appropriations available to the Department of Veterans
Affairs for 1997 for salaries and expenses shall be available for
services authorized by 5 U.S.C. 3109.
Sec. 103. No appropriations in this Act for the Department of
Veterans Affairs (except the appropriations for ``Construction, major
projects'', ``Construction, minor projects'', and the ``Parking
revolving fund'') shall be available for the purchase of any site for or
toward the construction of any new hospital or home.
[[Page 110 STAT. 2881]]
Sec. 104. No appropriations in this Act for the Department of
Veterans Affairs shall be available for hospitalization or examination
of any persons (except beneficiaries entitled under the laws bestowing
such benefits to veterans, and persons receiving such treatment under 5
U.S.C. 7901-7904 or 42 U.S.C. 5141-5204), unless reimbursement of cost
is made to the ``Medical care'' account at such rates as may be fixed by
the Secretary of Veterans Affairs.
Sec. 105. Appropriations available to the Department of Veterans
Affairs for fiscal year 1997 for ``Compensation and pensions'',
``Readjustment benefits'', and ``Veterans insurance and indemnities''
shall be available for payment of prior year accrued obligations
required to be recorded by law against the corresponding prior year
accounts within the last quarter of fiscal year 1996.
Sec. 106. Appropriations accounts available to the Department of
Veterans Affairs for fiscal year 1997 shall be available to pay prior
year obligations of corresponding prior year appropriations accounts
resulting from title X of the Competitive Equality Banking Act, Public
Law 100-86, except that if such obligations are from trust fund accounts
they shall be payable from ``Compensation and pensions''.
Sec. 107. Notwithstanding any other provision of law, during fiscal
year 1997, the Secretary of Veterans Affairs shall, from the National
Service Life Insurance Fund (38 U.S.C. 1920), the Veterans' Special Life
Insurance Fund (38 U.S.C. 1923), and the United States Government Life
Insurance Fund (38 U.S.C. 1955), reimburse the ``General operating
expenses'' account for the cost of administration of the insurance
programs financed through those accounts: Provided, That reimbursement
shall be made only from the surplus earnings accumulated in an insurance
program in fiscal year 1997, that are available for dividends in that
program after claims have been paid and actuarially determined reserves
have been set aside: Provided further, That if the cost of
administration of an insurance program exceeds the amount of surplus
earnings accumulated in that program, reimbursement shall be made only
to the extent of such surplus earnings: Provided further, That the
Secretary shall determine the cost of administration for fiscal year
1997, which is properly allocable to the provision of each insurance
program and to the provision of any total disability income insurance
included in such insurance program.
Sec. 108. (a) The Secretary of Veterans Affairs may convey, without
consideration, to the City of Tuscaloosa, Alabama (in this section
referred to as the ``City''), all right, title, and interest of the
United States in and to a parcel of real property, including any
improvements thereon, in the northwest quarter of section 28, township
21 south, range 9 west, of Tuscaloosa
County, Alabama, comprising a portion of the grounds of the Department
of Veterans Affairs medical center, Tuscaloosa, Alabama, and consisting
of approximately 9.42 acres, more or less.
(b) The conveyance under subsection (a) shall be subject to the
condition that the City use the real property conveyed under that
subsection in perpetuity solely for public park or recreational
purposes.
(c) The exact acreage and legal description of the real property to
be conveyed pursuant to this section shall be determined by a survey
satisfactory to the Secretary of Veterans Affairs. The cost of such
survey shall be borne by the City.
[[Page 110 STAT. 2882]]
(d) The Secretary of Veterans Affairs may require such additional
terms and conditions in connection with the conveyance under this
section as the Secretary considers appropriate to protect the interests
of the United States.
TITLE II
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Housing Programs
development of additional new subsidized housing
For assistance for the purchase, construction, acquisition, or
development of additional public and subsidized housing units for low
income families under the United States Housing Act of 1937, as amended,
(``the Act'' herein) (42 U.S.C. 1437), not otherwise provided for,
$1,039,000,000, to remain available until expended: Provided, That of
the total amount provided under this head, $645,000,000 shall be for
capital advances, including amendments to capital advance contracts, for
housing for the elderly, as authorized by section 202 of the Housing Act
of 1959, as amended, and for project rental assistance, and amendments
to contracts for project rental assistance, for supportive housing for
the elderly under section 202(c)(2) of the Housing Act of 1959; and
$194,000,000 shall be for capital advances, including amendments to
capital advance contracts, for supportive housing for persons with
disabilities, as authorized by section 811 of the Cranston-Gonzalez
National Affordable Housing Act, and for project rental assistance, and
amendments to contracts for project rental assistance, for supportive
housing for persons with disabilities as authorized by section 811 of
the Cranston-Gonzalez National Affordable Housing Act: Provided further,
That the Secretary may designate up to 25 percent of the amounts
earmarked under this paragraph for section 811 of the Cranston-Gonzalez
National Affordable Housing Act for tenant-based assistance, as
authorized under that section, including such authority as may be waived
under the next proviso, which assistance is five years in duration:
Provided further, That the Secretary may waive any provision of section
202 of the Housing Act of 1959 and section 811 of the National
Affordable Housing Act (including the provisions governing the terms and
conditions of project rental assistance and tenant-based assistance)
that the Secretary determines is not necessary to achieve the objectives
of these programs, or that otherwise impedes the ability to develop,
operate or administer projects assisted under these programs, and may
make provision for alternative conditions or terms where appropriate:
Provided further, That of the total amount provided under this head
$200,000,000, shall be for the development or acquisition cost of public
housing for Indian families, including amounts for housing under the
mutual help homeownership opportunity program under section 202 of the
Act (42 U.S.C. 1437bb).
prevention of resident displacement
For activities and assistance to prevent the involuntary
displacement of low-income families, the elderly and the disabled
because of the loss of affordable housing stock, expiration of subsidy
contracts (other than contracts for which amounts are provided
[[Page 110 STAT. 2883]]
under the head ``Preserving Existing Housing Investment'') or expiration
of use restrictions, or other changes in housing assistance
arrangements, and for other purposes, $4,640,000,000, to remain
available until expended: Provided, That of the total amount provided
under this head, $3,600,000,000 shall be for assistance under the United
States Housing Act of 1937 (42 U.S.C. 1437) for use in connection with
expiring or terminating section 8 subsidy contracts: Provided further,
That the Secretary may determine not to apply section 8(o)(6)(B) of the
Act to housing vouchers during fiscal year 1997: Provided further, That
of the total amount provided under this head, $850,000,000 shall be for
amendments to section 8 contracts other than contracts for projects
developed under section 202 of the Housing Act of 1959, as amended:
Provided further, That of the total amount provided under this head,
$190,000,000 shall be for assistance under the United States Housing Act
of 1937 (42 U.S.C. 1437) to relocate residents of properties (i) that
are owned by the Secretary and being disposed of; (ii) that are
discontinuing section 8 project-based assistance; or (iii) subject to
special workout assistance team intervention compliance actions; for the
conversion of section 23 projects to assistance under section 8; for
funds to carry out the family unification program; and for the
relocation of witnesses in connection with efforts to combat crime in
public and assisted housing pursuant to a request from a law enforcement
or prosecution agency: Provided further, That of the total amount made
available under this head, $50,000,000 shall be made available to
nonelderly disabled families affected by the designation of a public
housing development under section 7 of such Act or the establishment of
preferences in accordance with section 651 of the Housing and Community
Development Act of 1992 (42 U.S.C. 1361l).
preserving existing housing investment
For operating, maintaining, revitalizing, rehabilitating,
preserving, and protecting existing housing developments for low-income
families, and the elderly, and the disabled, $5,750,000,000, to remain
available until expended: Provided, That of the total amount
made available under this head, $2,900,000,000 shall be available for
payments to public housing agencies and Indian housing authorities for
operating subsidies for low-income housing projects as authorized by
section 9 of the United States Housing Act of 1937, as amended (42
U.S.C. 1437g): Provided further, That of the total amount made available
under this head, $2,500,000,000 shall be available for modernization of
existing public housing projects as authorized under section 14 of the
United States Housing Act of 1937, as amended (42 U.S.C. 1437l), of
which $10,000,000 shall be for carrying out activities under section
6(j) of the United States Housing Act of 1937 and technical assistance
for the inspection of public housing units, contract expertise, and
training and technical assistance directly or indirectly, under grants,
contracts, or cooperative agreements, to assist in the oversight and
management of public and Indian housing (whether or not the housing is
being modernized with assistance under this proviso) or tenant-based
assistance, including, but not limited to, an annual resident survey,
data collection and analysis, training and technical assistance by or to
officials and employees of the department and of public housing agencies
and to residents in connection with the public and Indian
housing <<NOTE: 12 USC 4101 note.>> program: Provided further, That of
the total amount pro
[[Page 110 STAT. 2884]]
vided under this head, $350,000,000 shall be available for use in
conjunction with properties that are eligible for assistance under the
Low-Income Housing Preservation and Resident Homeownership Act of 1990
(LIHPRHA) or the Emergency Low Income Housing Preservation Act of 1987
(ELIHPA), of which $75,000,000 shall be available for obligation until
March 1, 1997 for projects (1) that are subject to a repayment or
settlement agreement that was executed between the owner and the
Secretary prior to September 1, 1995; (2) whose submissions were delayed
as a result of their location in areas that were designated as a Federal
disaster area in a Presidential Disaster Declaration; or (3) whose
processing was, in fact or in practical effect, suspended, deferred, or
interrupted for a period of twelve months or more because of differing
interpretations, by the Secretary and an owner or by the Secretary and a
State or local rent regulatory agency, concerning the timing of filing
eligibility or the effect of a presumptively applicable State or local
rent control law or regulation on the determination of preservation
value under section 213 of LIHPRHA, as amended, if the owner of such
project filed notice of intent to extend the low-income affordability
restrictions of the housing, or transfer to a qualified purchaser who
would extend such restrictions, on or before November 1, 1993; and of
which, up to $100,000,000 may be used for rental assistance to prevent
displacement of families residing in projects whose owners prepay their
mortgages; and the balance of which shall be available from the
effective date of this Act for sales to preferred priority purchasers:
Provided further, That with the exception of projects described in
clauses (1), (2), or (3) of the preceding proviso, the Secretary shall,
notwithstanding any other provision of law, suspend further processing
of preservation applications which have not heretofore received approval
of a plan of action: Provided further, That $150,000,000 of amounts
recaptured from interest reduction payment contracts for section 236
projects whose owners prepay their mortgages during fiscal year 1997
shall be rescinded: Provided further, That an owner of eligible low-
income housing may prepay the mortgage or request voluntary termination
of a mortgage insurance contract, so long as said owner agrees not to
raise rents for sixty days after such prepayment: Provided further, That
such developments have been determined to have preservation equity at
least equal to the lesser of $5,000 per unit or $500,000 per project or
the equivalent of eight times the most recently published monthly fair
market rent for the area in which the project is located as the
appropriate unit size for all of the units in the eligible project:
Provided further, That the Secretary may modify the regulatory agreement
to permit owners and priority purchasers to retain rental income in
excess of the basic rental charge in projects assisted under section 236
of the National Housing Act, for the purpose of preserving the low- and
moderate-income character of the housing: Provided further, That
eligible low-income housing shall include properties meeting the
requirements of this paragraph with mortgages that are held by a State
agency as a result of a sale by the Secretary without insurance, which
immediately before the sale would have been eligible low-income housing
under LIHPRHA: Provided further, That notwithstanding any other
provision of law, subject to the availability of appropriated funds,
each low-income family, and moderate-income family who is elderly or
disabled or is residing in a low-vacancy area, residing in the housing
on the date of
[[Page 110 STAT. 2885]]
prepayment or voluntary termination, and whose rent, as a result of a
rent increase occurring no later than one year after the date of the
prepayment, exceeds 30 percent of adjusted income, shall be offered
tenant-based assistance in accordance with section 8 or any successor
program, under which the family shall pay no less for rent than it paid
on such date: Provided further, That any family receiving tenant-based
assistance under the preceding proviso may elect (1) to remain in the
unit of the housing and if the rent exceeds the fair market rent or
payment standard, as applicable, the rent shall be deemed to be the
applicable standard, so long as the administering public housing agency
finds that the rent is reasonable in comparison with rents charged for
comparable unassisted housing units in the market or (2) to move from
the housing and the rent will be subject to the fair market rent of the
payment standard, as applicable, under existing program rules and
procedures: Provided further, That the tenant-based assistance made
available under the preceding two provisos are in lieu of benefits
provided in subsections 223(b), (c), and (d) of the Low-Income Housing
Preservation and Resident Homeownership Act of 1990: Provided further,
That any sales shall be funded using the capital grant available under
section 220(d)(3)(A) of LIHPRHA: Provided further, That any extensions
shall be funded using a non-interest-bearing capital (direct) loan by
the Secretary not in excess of the amount of the cost of rehabilitation
approved in the plan of action plus 65 percent of the property's
preservation equity and under such other terms and conditions as the
Secretary may prescribe: Provided further, That any capital grant shall
be limited to seven times, and any capital loan limited to six times,
the annual fair market rent for the project, as determined
using the fair market rent for fiscal year 1997 for the area in which
the project is located, using the appropriate apartment sizes and mix in
the eligible project, except where, upon the request of a priority
purchaser, the Secretary determines that a greater amount is necessary
and appropriate to preserve low-income housing: Provided further, That
section 241(f) of the National Housing Act <<NOTE: 12 USC 1715z-6.>> is
repealed and insurance under such section shall not be offered as an
incentive under LIHPRHA and ELIHPA: Provided further, That up to
$10,000,000 of the amount of $350,000,000 made available by a preceding
proviso in this paragraph may be used at the discretion of the Secretary
to reimburse owners of eligible properties for which plans of action
were submitted prior to the effective date of this Act, but were not
executed for lack of available funds, with such reimbursement available
only for documented costs directly applicable to the preparation of the
plan of action as determined by the Secretary, and shall be made
available on terms and conditions to be established by the Secretary:
Provided further, That, notwithstanding any other provision of law, a
priority purchaser may utilize assistance under the HOME Investment
Partnerships Act or the Low Income Housing Tax Credit: Provided further,
That projects with approved plans of action which exceed the limitations
on eligibility for funding imposed by this Act may submit revised plans
of action which conform to these limitations by March 1, 1997, and
retain the priority for funding otherwise applicable from the original
date of approval of their plan of action, subject to securing any
additional necessary funding commitments by August 1, 1997.
[[Page 110 STAT. 2886]]
revitalization of severely distressed public housing
For grants to public housing agencies for assisting in the
demolition of obsolete public housing projects or portions thereof, the
revitalization (where appropriate) of sites (including remaining public
housing units) on which such projects are located, replacement housing
which will avoid or lessen concentrations of very low-income families,
and tenant-based assistance in accordance with section 8 of the United
States Housing Act of 1937; and for providing replacement housing and
assisting tenants to be displaced by the demolition, $550,000,000, to
remain available until expended, of which the Secretary may use up to
$2,500,000 for technical assistance, to be provided directly or
indirectly by grants, contracts or cooperative agreements, including
training and cost of necessary travel for participants in such training,
by or to officials and
employees of the Department and of public housing agencies and to
residents: Provided, That no funds appropriated in this title shall be
used for any purpose that is not provided for herein, in the Housing Act
of 1937, in the Appropriations Acts for Veterans Affairs, Housing and
Urban Development, and Independent Agencies, for the fiscal years 1993,
1994, and 1995, and the Omnibus Consolidated Rescissions and
Appropriations Act of 1996: Provided further, That none of such funds
shall be used directly or indirectly by granting competitive advantage
in awards to settle litigation or pay judgments, unless expressly
permitted herein: Provided
further, That, notwithstanding any other provision of law, the funds
made available to the Housing Authority of New Orleans under HOPE VI for
purposes of Desire Homes, shall not be obligated or expended for on-site
construction until an independent third party has determined whether the
site is appropriate.
drug elimination grants for low-income housing
(including transfer of funds)
For grants to public and Indian housing agencies for use in
eliminating crime in public housing projects authorized by 42 U.S.C.
11901-11908, for grants for federally assisted low-income housing
authorized by 42 U.S.C. 11909, and for drug information clearinghouse
services authorized by 42 U.S.C. 11921-11925, $290,000,000, to remain
available until expended, $10,000,000 of which shall be for grants,
technical assistance, contracts and other assistance training, program
assessment, and execution for or on behalf of public housing agencies
and resident organizations (including the cost of necessary travel for
participants in such training), $5,000,000 of which shall be used in
connection with efforts to combat violent crime in public and assisted
housing under the Operation Safe Home Program administered by the
Inspector General of the Department of Housing and Urban Development,
and $5,000,000 of which shall be provided to the Office of Inspector
General for Operation Safe Home: Provided, That the term ``drug-related
crime'', as defined in 42 U.S.C. 11905(2), shall also include other
types of crime as determined by the Secretary: Provided further, That
notwithstanding section 5130(c) of the Anti-Drug Abuse Act of 1988 (42
U.S.C. 11909(c)), the Secretary may determine not to use any such funds
to provide public housing youth sports grants.
[[Page 110 STAT. 2887]]
indian housing loan guarantee fund program account
For the cost of guaranteed loans, as authorized by section 184 of
the Housing and Community Development Act of 1992 (106 Stat. 3739),
$3,000,000: Provided, That such costs, including the costs of modifying
such loans, shall be as defined in section 502 of the Congressional
Budget Act of 1974, as amended: Provided further, That these funds are
available to subsidize total loan principal, any part of which is to be
guaranteed, not to exceed $36,900,000.
Community Planning and Development
community development block grants fund
(including transfer of funds)
For grants to States and units of general local government and for
related expenses, not otherwise provided for, to carry out a community
development grants program as authorized by title I of the Housing and
Community Development Act of 1974, as amended (the ``Act'' herein) (42
U.S.C. 5301), $4,600,000,000, to remain available until September 30,
1999, of which $67,000,000 shall be for grants to Indian tribes
notwithstanding section 106(a)(1) of the Act: Provided, That $2,100,000
shall be available as a grant to the Housing Assistance Council,
$1,500,000 shall be available as a grant to the National American Indian
Housing Council, and $49,000,000 shall be available for grants pursuant
to section 107 of such Act, including up to $14,000,000 for the
development and operation of a management information system: Provided
further, That not to exceed 20 percent of any grant made with funds
appropriated herein (other than a grant made available under the
preceding proviso to the Housing Assistance Council or the National
American Indian Housing Council, or a grant using funds under section
107(b)(3) of the Housing and Community Development Act of 1974, as
amended) shall be expended for ``Planning and Management Development''
and ``Administration'' as defined in regulations promulgated by the
Department: Provided <<NOTE: 42 USC 5305 note.>> further, That for
fiscal year 1997 and thereafter, section 105(a)(25) of such Act, shall
continue to be effective and the termination and conforming provisions
of section 907(b)(2) of the Cranston-Gonzalez National Affordable
Housing Act shall not be effective: Provided further, That section
916(f) of the Cranston-Gonzalez National Affordable Housing
Act <<NOTE: 42 USC 5306 note.>> is repealed.
Of the amount provided under this heading, the Secretary of Housing
and Urban Development may use up to $60,000,000 for grants to public
housing agencies (including Indian housing authorities), nonprofit
corporations, and other appropriate entities for a supportive services
program to assist residents of public and assisted housing, former
residents of such housing receiving tenant-based assistance under
section 8 of such Act (42 U.S.C. 1437f), and other low-income families
and individuals to become self-sufficient: Provided, That the program
shall provide supportive services, principally for the benefit of public
housing residents, to the elderly and the disabled, and to families with
children where the head of household would benefit from the receipt of
supportive services and is working, seeking work, or is preparing for
work by participating in job training or educational programs: Provided
further, That
[[Page 110 STAT. 2888]]
the supportive services may include congregate services for the elderly
and disabled, service coordinators, and coordinated educational,
training, and other supportive services, including academic skills
training, job search assistance, assistance related to retaining
employment, vocational and entrepreneurship development and support
programs, transportation, and child care: Provided further, That the
Secretary shall require applications to demonstrate firm commitments of
funding or services from other sources: Provided further, That the
Secretary shall select public and Indian housing agencies to receive
assistance under this head on a competitive basis, taking into account
the quality of the proposed program (including any innovative
approaches, the extent of the proposed coordination of supportive
services, the extent of commitments of funding or services from other
sources, the extent to which the proposed program includes reasonably
achievable, quantifiable goals for measuring performance under the
program over a three-year period, the extent of success an agency has
had in carrying out other comparable initiatives, and other appropriate
criteria established by the Secretary): Provided further, That from the
foregoing $60,000,000, up to $5,000,000 shall be available for the
Tenant Opportunity Program, and up to $5,000,000 shall be available for
the Moving to Work Demonstration for public housing families.
Of the amount made available under this heading, notwithstanding any
other provision of law, $20,000,000 shall be available for grants to
entities managing or operating public housing developments, federally-
assisted multifamily-housing developments, or other multifamily-housing
developments for low-income families supported by non-Federal
governmental entities or similar housing developments supported by
nonprofit private sources, to reimburse local law enforcement entities
for additional police presence in and around such housing developments;
to provide or augment such security services by other entities or
employees of the recipient agency; to assist in the investigation and/or
prosecution of drug related criminal activity in and around such
developments; and to provide assistance for the development of capital
improvements at such developments directly relating to the security of
such developments: Provided, That such grants shall be made on a
competitive basis as specified in section 102 of the HUD Reform Act.
Of the amount made available under this heading, notwithstanding any
other provision of law, $30,000,000 shall be available for youthbuild
program activities authorized by subtitle D of title IV of the Cranston-
Gonzalez National Affordable Housing Act, as amended, and such
activities shall be an eligible activity with respect to any funds made
available under this heading.
Of the amount made available under this heading, notwithstanding any
other provision of law, $60,000,000 shall be available for the lead-
based paint hazard reduction program as authorized under sections 1011
and 1053 of the Residential Lead-Based Hazard Reduction Act of 1992.
For the cost of guaranteed loans, $31,750,000, as authorized by
section 108 of the Housing and Community Development Act of 1974:
Provided, That such costs, including the cost of modifying such loans,
shall be as defined in section 502 of the Congressional Budget Act of
1974, as amended: Provided further, That these funds are available to
subsidize total loan principal, any part of which is to be guaranteed,
not to exceed $1,500,000,000, notwithstanding any aggregate limitation
on outstanding obligations
[[Page 110 STAT. 2889]]
garanteed in section 108(k) of the Housing and Community Development Act
of 1974. In addition, for administrative expenses to carry out the
guaranteed loan program, $675,000 which shall be transferred to and
merged with the appropriation for departmental salaries and expenses.
home investment partnerships program
For the HOME investment partnerships program, as authorized under
title II of the Cranston-Gonzalez National Affordable Housing Act
(Public Law 101-625), as amended, $1,400,000,000, to remain available
until expended: Provided, That $21,000,000 shall be available for grants
to Indian Tribes: Provided further, That up to 0.5 percent, but not less
than $7,000,000, shall be available for the development and operation of
a management information
system: Provided further, That $15,000,000 shall be available for
Housing Counseling under section 106 of the Housing and Urban
Development Act of 1968.
homeless assistance funds
For the emergency shelter grants program (as authorized under
subtitle B of title IV of the Stewart B. McKinney Homeless Assistance
Act (Public Law 100-77), as amended); the supportive housing program (as
authorized under subtitle C of title IV of such Act); the section 8
moderate rehabilitation single room occupancy program (as authorized
under the United States Housing Act of 1937, as amended) to assist
homeless individuals pursuant to section 441 of the Stewart B. McKinney
Homeless Assistance Act; and the shelter plus care program (as
authorized under subtitle F of title IV of such Act), $823,000,000, to
remain available until expended.
housing opportunities for persons with aids
(including transfer of funds)
For carrying out the Housing Opportunities for Persons with AIDS
program, as authorized by the AIDS Housing Opportunity Act (42 U.S.C.
12901), $171,000,000, to remain available until expended: Provided, That
any amounts previously appropriated for such program, and any related
assets and liabilities, in the ``Annual contributions for assisted
housing'' account, shall be transferred to and merged with amounts in
this account.
Federal Housing Administration
fha--mutual mortgage insurance program account
(including transfers of funds)
During fiscal year 1997, commitments to guarantee loans to carry out
the purposes of section 203(b) of the National Housing Act, as amended,
shall not exceed a loan principal of $110,000,000,000: Provided, That
during fiscal year 1997, the Secretary shall sell assigned mortgage
notes having an unpaid principal balance of up to $2,000,000,000, which
notes were originally insured under section 203(b) of the National
Housing Act: Provided further, That the Secretary may use the amount of
any negative subsidy
[[Page 110 STAT. 2890]]
resulting from the sale of such assigned mortgage notes during fiscal
year 1997 for the purposes included under this heading.
During fiscal year 1997, obligations to make direct loans to carry
out the purposes of section 204(g) of the National Housing Act, as
amended, shall not exceed $200,000,000: Provided, That the foregoing
amount shall be for loans to nonprofit and governmental entities in
connection with sales of single family real properties owned by the
Secretary and formerly insured under section 203 of such Act.
For administrative expenses necessary to carry out the guaranteed
and direct loan program, $350,595,000, to be derived from the FHA-mutual
mortgage insurance guaranteed loans receipt account, of which not to
exceed $343,483,000 shall be transferred to the appropriation for
departmental salaries and expenses; and of which not to exceed
$7,112,000 shall be transferred to the appropriation for the Office of
Inspector General.
fha--general and special risk program account
(including transfers of funds)
For the cost of guaranteed loans, as authorized by sections 238 and
519 of the National Housing Act (12 U.S.C. 1715z-3 and 1735c), including
the cost of loan guarantee modifications (as that term is defined in
section 502 of the Congressional Budget Act of 1974, as amended)
$85,000,000, to remain available until expended: Provided, That these
funds are available to subsidize total loan principal, any part of which
is to be guaranteed, of up to $17,400,000,000: Provided further, That
during fiscal year 1997, the Secretary shall sell assigned notes having
an unpaid principal balance of up to $2,500,000,000, which notes are
held by the Secretary under the General Insurance and Special Risk
Insurance funds: Provided further, That any amounts made available in
any prior appropriations Act for the cost (as such term is defined in
section 502 of the Congressional Budget Act of 1974) of guaranteed loans
that are obligations of the funds established under section 238 or 519
of the National Housing Act that have not been obligated or that are
deobligated shall be available to the Secretary of Housing and Urban
Development in connection with the making of such guarantees and shall
remain available until expended, notwithstanding the expiration of any
period of availability otherwise applicable to such amounts.
Gross obligations for the principal amount of direct loans, as
authorized by sections 204(g), 207(l), 238(a), and 519(a) of the
National Housing Act, shall not exceed $120,000,000; of which not to
exceed $100,000,000 shall be for bridge financing in connection with the
sale of multifamily real properties owned by the Secretary and formerly
insured under such Act; and of which not to exceed $20,000,000 shall be
for loans to nonprofit and governmental entities in connection with the
sale of single-family real properties owned by the Secretary and
formerly insured under such Act.
In addition, for administrative expenses necessary to carry out the
guaranteed and direct loan programs, $207,470,000, of which $203,299,000
shall be transferred to the appropriation for departmental salaries and
expenses; and of which $4,171,000 shall
[[Page 110 STAT. 2891]]
be transferred to the appropriation for the Office of Inspector
General.
Government National Mortgage Association
guarantees of mortgage-backed securities loan guarantee program account
(including transfer of funds)
During fiscal year 1997, new commitments to issue guarantees to
carry out the purposes of section 306 of the National Housing Act, as
amended (12 U.S.C. 1721(g)), shall not exceed $110,000,000,000.
For administrative expenses necessary to carry out the guaranteed
mortgage-backed securities program, $9,383,000, to be derived from the
GNMA-guarantees of mortgage-backed securities guaranteed loan receipt
account, of which not to exceed $9,383,000 shall be transferred to the
appropriation for departmental salaries and expenses.
Policy Development and Research
research and technology
For contracts, grants, and necessary expenses of programs of
research and studies relating to housing and urban problems, not
otherwise provided for, as authorized by title V of the Housing and
Urban Development Act of 1970, as amended (12 U.S.C. 1701z-1 et seq.),
including carrying out the functions of the Secretary under section
1(a)(1)(i) of Reorganization Plan No. 2 of 1968, $34,000,000, to remain
available until September 30, 1998.
Fair Housing and Equal Opportunity
fair housing activities
For contracts, grants, and other assistance, not otherwise provided
for, as authorized by title VIII of the Civil Rights Act of 1968, as
amended by the Fair Housing Amendments Act of 1988, and section 561 of
the Housing and Community Development Act of 1987, as amended,
$30,000,000, to remain available until September 30, 1998, of which
$15,000,000 shall be to carry out activities pursuant to section 561. No
funds made available under this heading shall be used to lobby the
executive or legislative branches of the Federal Government in
connection with a specific contract, grant or loan.
Management and Administration
salaries and expenses
(including transfer of funds)
For necessary administrative and non-administrative expenses of the
Department of Housing and Urban Development, not otherwise provided for,
including not to exceed $7,000 for official reception and representation
expenses, $976,840,000, of which
[[Page 110 STAT. 2892]]
$15,000,000 may be used for additional retraining, relocation, permanent
change of station, and other activities related to downsizing only upon
submission of a detailed and specific, multi-year downsizing plan to the
Committees on Appropriations of the House of Representatives and the
Senate, and of which $546,782,000 shall be provided from the various
funds of the Federal Housing Administration, $9,383,000 shall be
provided from funds of the Government National Mortgage Association, and
$675,000 shall be provided from the Community Development Grants Program
account.
office of inspector general
(including transfer of funds)
For necessary expenses of the Office of Inspector General in
carrying out the provisions of the Inspector General Act of 1978, as
amended, $52,850,000, of which $11,283,000 shall be provided from the
various funds of the Federal Housing Administration and $5,000,000 shall
be transfered from the amount earmarked for Operation Safe Home in the
Drug elimination grants for low income housing account.
Office of Federal Housing Enterprise Oversight
salaries and expenses
(including transfer of funds)
For carrying out the Federal Housing Enterprise Financial Safety and
Soundness Act of 1992, $15,500,000, to remain available until expended,
from the Federal Housing Enterprise Oversight Fund: Provided, That such
amounts shall be collected by the Director as authorized by section 1316
(a) and (b) of such Act, and deposited in the Fund under section 1316(f)
of such Act.
administrative provisions
Sec. 201. Extenders.--(a) Public Housing Funding Flexi-
bility.--Section 201(a)(2) of the Departments of Veterans Affairs and
Housing and Urban Development, and Independent Agencies Appropriations
Act, 1996 <<NOTE: Ante, p. 1321-277.>> is amended by striking ``1996''
and inserting ``1997''.
(b) One-for-One Replacement of Public and Indian
Housing.--Section 1002(d) <<NOTE: 42 USC 1437c note.>> of Public Law
104-19 is amended by striking ``before September 30, 1996'' and
inserting ``on or before September 30, 1997''.
(c) Public and Assisted Housing Rents, Income Adjustments, and
Preferences.--(1)(A) Section 402(a) of The Balanced Budget Downpayment
Act, I is <<NOTE: Ante, p. 40.>> amended--
(i) by striking ``effective for fiscal year 1996 and no
later than October 30, 1995'' and inserting ``and subsection (f)
of this section, effective for fiscal year 1997'';
(ii) in paragraphs (1), (2), and (4), by striking ``not less
than $25, and may require a minimum monthly rent of''; and
(iii) in paragraph (3), by striking ``not less than $25 for
the unit, and may require a minimum monthly rent of''.
(B) Section 230 <<NOTE: Ante, p. 1321-292.>> of Public Law 104-134
is hereby repealed.
[[Page 110 STAT. 2893]]
(2) Section 402(f) of The Balanced Budget Downpayment Act,
I <<NOTE: Ante, p. 43.>> is amended by striking ``fiscal year 1996''
and inserting ``fiscal years 1996 and 1997''.
(d) Applicability to IHAs.--In accordance with section 201(b)(2) of
the United States Housing Act of 1937, the amendments made by
subsections (a), (b), and (c) shall apply to public housing developed or
operated pursuant to a contract between the Secretary of Housing and
Urban Development and an Indian housing
authority.
(e) Streamlining Section 8 Tenant-Based Assistance.--Section 203(d)
of the Departments of Veterans Affairs and Housing and Urban
Development, and Independent Agencies Appropriations Act,
1996 <<NOTE: Ante, p. 1321-281.>> is amended by striking ``fiscal year
1996'' and inserting ``fiscal years 1996 and 1997''.
(f) Section 8 Fair Market Rentals and Delay in Reissuance.--(1) The
first sentence of section 403(a) of the Balanced Budget Downpayment Act,
I, <<NOTE: Ante, p. 43.>> is amended by striking ``1996'' and inserting
``1997''.
(2) Section 403(c) of such Act is amended--
(A) by striking ``fiscal year 1996'' and inserting ``fiscal
years 1996 and 1997''; and
(B) by inserting before the semicolon the following: ``for
assistance made available during fiscal year 1996 and October 1,
1997 for assistance made available during fiscal year 1997''.
(g) Section 8 Rent Adjustments.--Section 8(c)(2)(A) of the United
States Housing Act of 1937 <<NOTE: 42 USC 1437f.>> is amended--
(1) in the third sentence by inserting ``, fiscal year 1996
prior to April 26, 1996, and fiscal year 1997'' after ``1995'';
(2) in the fourth sentence, by striking ``For'' and
inserting ``Except for assistance under the certificate program,
for'';
(3) after the fourth sentence, by inserting the following
new sentence: ``In the case of assistance under the certificate
program, 0.01 shall be subtracted from the amount of the annual
adjustment factor (except that the factor shall not be reduced
to less than 1.0), and the adjusted rent shall not exceed the
rent for a comparable unassisted unit of similar quality, type,
and age in the market area.''; and
(4) in the last sentence, by--
(A) striking ``sentence'' and inserting ``two
sentences''; and
(B) inserting ``, fiscal year 1996 prior to April
26, 1996, and fiscal year 1997'' after ``1995''.
Sec. 202. <<NOTE: 42 USC 1437f note.>> Administrative Fees.--
Notwithstanding section 8(q) of the United States Housing Act of 1937,
as amended--
(a) The Secretary shall establish fees for the cost of administering
the certificate, voucher and moderate rehabilitation programs.
(1)(A) For fiscal year 1997, the fee for each month for
which a dwelling unit is covered by an assistance contract shall
be 7.5 percent of the base amount, adjusted as provided herein,
in the case of an agency that, on an annual basis, is
administering a program of no more than 600 units, and 7 percent
of the base amount, adjusted as provided herein, for each
additional unit above 600.
(B) The base amount shall be the higher of--
(i) the fair market rental for fiscal year 1993 for
a 2-bedroom existing rental dwelling unit in the market
area of the agency; and
[[Page 110 STAT. 2894]]
(ii) such fair market rental for fiscal year 1994,
but not more than 103.5 percent of the amount determined
under clause (i).
(C) The base amount shall be adjusted to reflect changes in
the wage data or other objectively measurable data that reflect
the costs of administering the program during fiscal year 1996;
except that the Secretary may require that the base amount be
not less than a minimum amount and not more than a maximum
amount.
(2) For subsequent fiscal years, the Secretary shall
publish <<NOTE: Federal Register, publication.>> a notice in
the Federal Register, for each geographic area, establishing the
amount of the fee that would apply for the agencies
administering the program, based on changes in wage data or
other objectively measurable data that reflect the cost of
administering the program, as determined by the Secretary.
(3) The Secretary may increase the fee if necessary to
reflect higher costs of administering small programs and
programs operating over large geographic areas.
(4) The Secretary may decrease the fee for PHA-owned units.
(b) Beginning in fiscal year 1997 and thereafter, the Secretary
shall also establish reasonable fees (as determined by the Secretary)
for--
(1) the costs of preliminary expenses, in the amount of
$500, for a public housing agency, but only in the first year it
administers a tenant-based assistance program under the United
States Housing Act of 1937 and only if, immediately before the
effective date of this Act, it was not administering a tenant-
based assistance program under the 1937 Act
(as in effect immediately before the effective date of this
Act), in connection with its initial increment of assistance
received;
(2) the costs incurred in assisting families who experience
difficulty (as determined by the Secretary) in obtaining
appropriate housing under the program; and
(3) extraordinary costs approved by the Secretary.
Sec. 203. Single Family Assignment Program.--Section 407(c) of the
Balanced Budget Downpayment Act, I (12 U.S.C. 1710 note), <<NOTE: Ante,
p. 46.>> is amended by striking ``October 1, 1996'' and inserting
``October 1, 1997''.
Sec. 204. <<NOTE: 12 USC 1715z-11a.>> Flexible Authority.--During
fiscal year 1997 and fiscal years thereafter, the Secretary may manage
and dispose of multifamily properties owned by the Secretary and
multifamily mortgages held by the Secretary on such terms and conditions
as the Secretary may determine, notwithstanding any other provision of
law.
Sec. 205. Use of Available Funding for Homeownership.--Up to
$20,000,000 of amounts of unobligated balances that are or become
available from the Nehemiah Housing Opportunity Grant program, repealed
under section 289(b) of the Cranston-Gonzalez National Affordable
Housing Act, Public Law 101-625, shall be available for use for
activities relating to promotion and implementation of homeownership in
targeted geographic areas, as determined by the Secretary. Any grant or
assistance made under this section shall be made in accordance with
section 102 of the Department of Housing and Urban Development Reform
Act of 1989 on a competitive basis.
[[Page 110 STAT. 2895]]
Sec. 206. Debt Forgiveness.--The Secretary of Housing and Urban
Development shall cancel the indebtedness of the Greene County Rural
Health Center relating to a loan received under the Public Facility Loan
program to establish the health center (Loan #Mis-22-PFL0096). The
Greene County Rural Health Center is hereby relieved of all liability to
the Federal Government for such loan and any fees and charges payable in
connection with such loan.
Sec. 207. Flexible Subsidy Fund.--From the fund established by
section 236(g) of the National Housing Act, as amended, all uncommitted
balances of excess rental charges as of September 30, 1996, and any
collection during fiscal year 1997, shall be transferred, as authorized
under such section, to the fund authorized under section 201(j) of the
Housing and Community Development Amendments of 1978, as amended.
Sec. 208. Rental Housing Assistance.--The limitation otherwise
applicable to the maximum payments that may be required in any fiscal
year by all contracts entered into under section 236 of the National
Housing Act (12 U.S.C. 1715z-1) is reduced in fiscal year 1997 by not
more than $2,000,000 in uncommitted balances of authorizations provided
for this purpose in appropriations Acts.
Sec. 209. D.C. Modernization Funding.--Notwithstanding the
provisions of section 14(k)(5)(D) of the United States Housing Act of
1937, the withheld modernization funds that became credited in fiscal
years 1993, 1994, and 1995, due to the troubled status of the former
Department of Public and Assisted Housing of the District of Columbia,
shall be made available without diminution to its successor, the
District of Columbia Housing Authority, at such time between the
effective date of this Act and the end of fiscal year 1998 as the
District of Columbia Housing Authority is no longer deemed ``mod-
troubled'' under section 6(j)(2)(A)(i) of such Act; after fiscal year
1998, the District of Columbia Housing Authority shall become subject to
the provisions of section 14(k)(5)(D) of such Act should it remain mod-
troubled.
Sec. 210. (a) Financing Adjustment Factors.--Fifty per centum of the
amounts of budget authority, or in lieu thereof
50 per centum of the cash amounts associated with such budget authority,
that are recaptured from projects described in section 1012(a) of the
Stewart B. McKinney Homeless Assistance Amendments Act of 1988 (Public
Law 100-628, 102 Stat. 3224, 3268) shall be rescinded, or in the case of
cash, shall be remitted to the Treasury, and such amounts of budget
authority or cash recaptured and not rescinded or remitted to the
Treasury shall be used by State housing finance agencies or local
governments or local housing agencies with projects approved by the
Secretary of Housing and Urban Development for which settlement occurred
after January 1, 1992, in accordance with such section.
(b) In addition to amounts otherwise provided by this Act, $464,442
is appropriated to the Department of Housing and Urban Development for
payment to the Utah Housing Finance Agency, in lieu of amounts lost to
such agency in bond refinancings during 1994, for its use in accordance
with subsection (a).
Sec. 211. <<NOTE: 42 USC 1437f note.>> Section 8 Contract Renewal
Authority.--(a) Definitions.--For purposes of this section--
[[Page 110 STAT. 2896]]
(1) the term ``expiring contract'' means a contract for
project-based assistance under section 8 of the United States
Housing Act of 1937 that expires during fiscal year 1997;
(2) the term ``family'' has the same meaning as in section
3(b) of the United States Housing Act of 1937;
(3) the term ``multifamily housing project'' means a
property consisting of more than 4 dwelling units that is
covered in whole or in part by a contract for project-based
assistance under section 8 of the United States Housing Act of
1937;
(4) the term ``owner'' has the same meaning as in section
8(f) of the United States Housing Act of 1937;
(5) the term ``project-based assistance'' means rental
assistance under section 8 of the United States Housing Act of
1937 that is attached to a multifamily housing project;
(6) the term ``public agency'' means a State housing finance
agency, a local housing agency, or other agency with a public
purpose and status;
(7) the term ``Secretary'' means the Secretary of Housing
and Urban Development; and
(8) the term ``tenant-based assistance'' has the same
meaning as in section 8(f) of the United States Housing Act of
1937.
(b) Section 8 Contract Renewal Authority.--
(1) In general.--Notwithstanding section 405(a) of the
Balanced Budget Downpayment Act, I, upon the request of the
owner of a multifamily housing project that is covered by an
expiring contract, the Secretary shall use amounts made
available for the renewal of assistance under section 8 of the
United States Housing Act of 1937 to renew the expiring contract
as project-based assistance for a period of not more than one
year, at rent levels that are equal to those under the expiring
contract as of the date on which the contract expires: Provided,
That those rent levels do not exceed 120 percent of the fair
market rent for the market area in which the project is located.
For an FHA-insured multifamily housing project with an expiring
contract at rent levels that exceed 120 percent of the fair
market rent for the market area, the Secretary shall provide, at
the request of the owner, section 8 project-based assistance,
for a period of not more than one year, at rent levels that do
not exceed 120 percent of the fair market rent.
(2) Exemption for state and local housing agency projects.--
Notwithstanding paragraph (1), upon the expiration of a contract
with rent levels that exceed the percentage described in that
paragraph, if the Secretary determines that the primary
financing or mortgage insurance for the multifamily housing
project that is covered by that expiring contract was provided
by a public agency, the Secretary shall, at the request of the
owner and the public agency, renew the expiring contract--
(A) for a period of not more than one year; and
(B) at rent levels that are equal to those under the
expiring contract as of the date on which the contract
expires.
(3) Section 202, section 811, and section 515 projects.--
Notwithstanding paragraph (1), for section 202 projects, section
811 projects and section 515 projects, upon the expiration of
[[Page 110 STAT. 2897]]
a section 8 contract, the Secretary shall, at the request of the
owner, renew the expiring contract--
(A) for a period of not more than one year; and
(B) at rent levels that are equal to those under the
expiring contract as of the date on which the contract
expires.
(4) Other contracts.--
(A) Participation in demonstration.--For a contract
covering an FHA-insured multifamily housing project that
expires during fiscal year 1997 with rent levels that
exceed the percentage described in paragraph (1) and
after notice to the tenants, the Secretary shall, at the
request of the owner of the project and after notice to
the tenants, include that multifamily housing project in
the demonstration program under section 212 of this Act.
The Secretary shall ensure that a multifamily housing
project with an expiring contract in fiscal year 1997
shall be allowed to be included in the demonstration.
(B) Effect of material adverse actions and
omissions.--Notwithstanding paragraph (1) or any other
provision of law, the Secretary shall not renew an
expiring contract if the Secretary determines that the
owner of the multifamily housing project has engaged in
material adverse financial or managerial actions or
omissions with regard to the project (or with regard to
other similar projects if the Secretary determines that
such actions or omissions constitute a pattern of
mismanagement that would warrant suspension or debarment
by the Secretary).
(C) Transfer of property.--For properties
disqualified from the demonstration program because of
actions by an owner or purchaser in accordance with
subparagraph (B), the Secretary shall establish
procedures to facilitate the voluntary sale or transfer
of the property, with a preference for tenant
organizations and tenant-endorsed community-based
nonprofit and public agency purchasers meeting such
reasonable qualifications as may be established by the
Secretary. The Secretary may include the transfer of
section 8 project-based assistance.
(5) Tenant protections.--Any family residing in an assisted
unit in a multifamily housing project that is covered by an
expiring contract that is not renewed, shall be offered tenant-
based assistance before the date on which the contract expires
or is not renewed.
Sec. 212. <<NOTE: 42 USC 1437f note.>> FHA Multifamily
Demonstration Authority.--(a) In General.--
(1) Repeal.--
(A) In general.--Section 210 of the Departments of
Veterans Affairs and Housing and Urban Development and
Independent Agencies Appropriations Act, 1996 (110 Stat.
1321) <<NOTE: Ante, p. 1321-285.>> is repealed.
(B) Exception.--Notwithstanding the repeal under
subparagraph (A), amounts made available under section
210(f) the Departments of Veterans Affairs and Housing
and Urban Development and Independent Agencies
Appropriations Act, 1996 shall remain available for the
demonstration program under this section through the end
of fiscal year 1997.
[[Page 110 STAT. 2898]]
(2) Savings provisions.--Nothing in this section shall be
construed to affect any commitment entered into before the date
of enactment of this Act under the demonstration program under
section 210 of the Departments of Veterans Affairs and Housing
and Urban Development and Independent Agencies Appropriations
Act, 1996.
(3) Definitions.--For purposes of this section--
(A) the term ``demonstration program'' means the
program established under subsection (b);
(B) the term ``expiring contract'' means a contract
for project-based assistance under section 8 of the
United States Housing Act of 1937 that expires during
fiscal year 1997;
(C) the term ``family'' has the same meaning as in
section 3(b) of the United States Housing Act of 1937;
(D) the term ``multifamily housing project'' means a
property consisting of more than 4 dwelling units that
is covered in whole or in part by a contract for
project-based assistance;
(E) the term ``owner'' has the same meaning as in
section 8(f) of the United States Housing Act of 1937;
(F) the term ``project-based assistance'' means
rental assistance under section 8 of the United States
Housing Act of 1937 that is attached to a multifamily
housing project;
(G) the term ``Secretary'' means the Secretary of
Housing and Urban Development; and
(H) the term ``tenant-based assistance'' has the
same meaning as in section 8(f) of the United States
Housing Act of 1937.
(b) Demonstration Authority.--
(1) In general.--Subject to the funding limitation in
subsection (l), the Secretary shall administer a demonstration
program with respect to multifamily projects--
(A) whose owners agree to participate;
(B) with rents on units assisted under section 8 of
the United States Housing Act of 1937 that are, in the
aggregate, in excess of 120 percent of the fair market
rent of the market area in which the project is located;
and
(C) the mortgages of which are insured under the
National Housing Act.
(2) Purpose.--The demonstration program shall be designed to
obtain as much information as is feasible on the economic
viability and rehabilitation needs of the multifamily housing
projects in the demonstration, to test various approaches for
restructuring mortgages to reduce the financial risk to the FHA
Insurance Fund while reducing the cost of section 8 subsidies,
and to test the feasibility and desirability of--
(A) ensuring, to the maximum extent practicable,
that the debt service and operating expenses, including
adequate reserves, attributable to such multifamily
projects can be supported at the comparable market rent
with or without mortgage insurance under the National
Housing Act and with or without additional section 8
rental subsidies;
[[Page 110 STAT. 2899]]
(B) utilizing section 8 rental assistance, while
taking into account the capital needs of the projects
and the need for adequate rental assistance to support
the low- and very low-income families residing in such
projects; and
(C) preserving low-income rental housing
affordability and availability while reducing the long-
term cost of section 8 rental assistance.
(c) Goals.--
(1) In general.--The Secretary shall carry out the
demonstration program in a manner that will protect the
financial interests of the Federal Government through debt
restructuring and subsidy reduction and, in the least costly
fashion, address the goals of--
(A) maintaining existing affordable housing stock in
a decent, safe, and sanitary condition;
(B) minimizing the involuntary displacement of
tenants;
(C) taking into account housing market conditions;
(D) encouraging responsible ownership and management
of property;
(E) minimizing any adverse income tax impact on
property owners; and
(F) minimizing any adverse impacts on residential
neighborhoods and local communities.
(2) Balance of competing goals.--In determining the manner
in which a mortgage is to be restructured or a subsidy reduced
under this subsection, the Secretary may balance competing goals
relating to individual projects in a manner that will further
the purposes of this section.
(d) Participation Arrangements.--
(1) In general.--In carrying out the demonstration program,
the Secretary may enter into participation arrangements with
designees, under which the Secretary may provide for the
assumption by designees (by delegation, by contract, or
otherwise) of some or all of the functions, obligations,
responsibilities and benefits of the Secretary.
(2) Designees.--In entering into any arrangement under this
subsection, the Secretary shall select state housing finance
agencies, housing agencies or nonprofits (separately or in
conjunction with each other) to act as designees to the extent
such agencies are determined to be qualified by the Secretary.
In locations where there is no qualified State housing finance
agency, housing agency or nonprofit to act as a designee, the
Secretary may act as a designee. Each participation arrangement
entered into under this subsection shall include a designee as
the primary partner. Any organization selected by the Secretary
under this section shall have a long-term record of service in
providing low-income housing and meet standards of fiscal
responsibility, as determined by the Secretary.
(3) Designee partnerships.--For purposes of any
participation arrangement under this subsection, designees are
encouraged to develop partnerships with each other, and to
contract or subcontract with other entities, including--
(A) public housing agencies;
(B) financial institutions;
(C) mortgage servicers;
(D) nonprofit and for-profit housing organizations;
[[Page 110 STAT. 2900]]
(E) the Federal National Mortgage Association;
(F) the Federal Home Loan Mortgage Corporation;
(G) Federal Home Loan Banks; and
(H) other State or local mortgage insurance
companies or bank lending consortia.
(e) Long-Term Affordability.--
(1) In general.--After the renewal of a section 8 contract
pursuant to a restructuring under this section, the owner shall
accept each offer to renew the section 8 contract, for a period
of 20 years from the date of the renewal under the
demonstration, if the offer to renew is on terms and conditions,
as agreed to by the Secretary or designee and the owner under a
restructuring.
(2) Affordability requirements.--Except as otherwise
provided by the Secretary, in exchange for any mortgage
restructuring under this section, a project shall remain
affordable for a period of not less than 20 years. Affordability
requirements shall be determined in accordance with guidelines
established by the Secretary or designee. The Secretary or
designee may waive these requirements for good cause.
(f) Procedures.--
(1) Notice of participation in demonstration.--Not later
than 45 days before the date of expiration of an expiring
contract (or such later date, as determined by the Secretary,
for good cause), the owner of the multifamily housing project
covered by that expiring contract shall notify the Secretary or
designee and the residents of the owner's intent to participate
in the demonstration program.
(2) Demonstration contract.--Upon receipt of a notice under
paragraph (1), the owner and the Secretary or designee shall
enter into a demonstration contract, which shall provide for
initial section 8 project-based rents at the same rent levels as
those under the expiring contract or, if practical, the budget-
based rent to cover debt service, reasonable operating expenses
(including reasonable and appropriate services), and a
reasonable return to the owner, as determined solely by the
Secretary. The demonstration contract shall be for the minimum
term necessary for the rents and mortgages of the multifamily
housing project to be restructured under the demonstration
program, but shall not be for a period of time to exceed 180
days, unless extended for good cause by the Secretary.
(g) Project-Based Section 8.--The Secretary shall renew all expiring
contracts under the demonstration as section 8 project-based contracts,
for a period of time not to exceed one year, unless otherwise provided
under subsection (h).
(h) Demonstration Actions.--
(1) Demonstration actions.--For purposes of carrying out the
demonstration program, and in order to ensure that contract
rights are not abrogated, subject to such third party consents
as are necessary (if any), including consent by the Government
National Mortgage Association if it owns a mortgage insured by
the Secretary, consent by an issuer under the mortgage-backed
securities program of the Association, subject to the
responsibilities of the issuer to its security holders and the
Association under such program, and consent by parties to any
contractual agreement which the Secretary proposes to modify or
discontinue, the Secretary or, except with respect
[[Page 110 STAT. 2901]]
to subparagraph (B), designee, subject to the funding limitation
in subsection (l), shall take not less than one of the actions
specified in subparagraphs (G), (H), and (I) and may take any of
the following actions:
(A) Removal of restrictions.--
(i) In general.--Consistent with the purposes
of this section, subject to the agreement of the
owner of the project and after consultation with
the tenants of the project, the Secretary or
designee may remove, relinquish, extinguish,
modify, or agree to the removal of any mortgage,
regulatory agreement, project-based assistance
contract, use agreement, or restriction that had
been imposed or required by the Secretary,
including restrictions on distributions of income
which the Secretary or designee determines would
interfere with the ability of the project to
operate without above-market rents.
(ii) Accumulated residual receipts.--The
Secretary or designee may require an owner of a
property assisted under the section 8 new
construction/substantial rehabilitation program
under the United States Housing Act of 1937 to
apply any accumulated residual receipts toward
effecting the purposes of this section.
(B) Reinsurance.--With respect to not more than
5,000 units within the demonstration during fiscal year
1997, the Secretary may enter into contracts to purchase
reinsurance, or enter into participations or otherwise
transfer economic interest in contracts of insurance or
in the premiums paid, or due to be paid, on such
insurance, on such terms and conditions as the Secretary
may determine. Any contract entered into under this
paragraph shall require that any associated units be
maintained as low-income units for the life of the
mortgage, unless waived by the Secretary for good cause.
(C) Participation by third parties.--The Secretary
or designee may enter into such agreements, provide such
concessions, incur such costs, make such grants
(including grants to cover all or a portion of the
rehabilitation costs for a project) and other payments,
and provide other valuable consideration as may
reasonably be necessary for
owners, lenders, servicers, third parties, and other
entities to participate in the demonstration program.
The Secretary may establish performance incentives for
designees.
(D) Section 8 administrative fees.--Notwithstanding
any other provision of law, the Secretary may make fees
available from the section 8 contract renewal
appropriation to a designee for contract administration
under section 8 of the United States Housing Act of 1937
for purposes of any contract restructured or renewed
under the demonstration program.
(E) Full or partial payment of claim.--
Notwithstanding any other provision of law, the
Secretary may make a full payment of claim or partial
payment of claim prior to default.
(F) Credit enhancement.--
(i) In general.--The Secretary or designee may
provide FHA multifamily mortgage insurance,
reinsur
[[Page 110 STAT. 2902]]
ance, or other credit enhancement alternatives,
including retaining the existing FHA mortgage
insurance on a restructured first mortgage at
market value or using the multifamily risk-sharing
mortgage programs, as provided under section 542
of the Housing and Community Development Act of
1992. Any limitations on the number of units
available for mortgage insurance under section 542
shall not apply to insurance issued for purposes
of the demonstration program.
(ii) Maximum percentage.--During fiscal year
1997, not more than 25 percent of the units in
multifamily housing projects with expiring
contracts in the demonstration, in the aggregate,
may be restructured without FHA insurance, unless
otherwise agreed to by the owner of a project.
(iii) Credit subsidy.--Any credit subsidy
costs of providing mortgage insurance shall be
paid from amounts made available under subsection
(l).
(G) Mortgage restructuring.--
(i) In general.--The Secretary or designee may
restructure mortgages to provide a restructured
first mortgage to cover debt service and operating
expenses (including a reasonable rate of return to
the owner) at the market rent, and a second
mortgage equal to the difference between the
restructured first mortgage and the mortgage
balance of the eligible multifamily housing
project at the time of restructuring.
(ii) Credit subsidy.--Any credit subsidy costs
of providing a second mortgage shall be paid from
amounts made available under subsection (l).
(H) Debt forgiveness.--The Secretary or designee,
for good cause and at the request of the owner of a
multifamily housing project, may forgive at the time of
the restructuring of a mortgage any portion of a debt on
the project that exceeds the market value of the
project.
(I) Budget-based rents.--The Secretary or designee
may renew an expiring contract, including a contract for
a project in which operating costs exceed comparable
market rents, for a period of not more than one year, at
a budget-based rent that covers debt service, reasonable
operating expenses (including all reasonable and
appropriate services), and a reasonable rate of return
to the owner, as determined solely by the Secretary,
provided that the contract does not exceed the rent
levels under the expiring contract. The Secretary may
establish a preference under the demonstration program
for budget-based rents for unique housing projects, such
as projects designated for occupancy by elderly families
and projects in rural areas.
(J) Section 8 tenant-based assistance.--For not more
than 10 percent of units in multifamily housing projects
that have had their mortgages restructured in any fiscal
year under the demonstration, the Secretary or designee
may provide, with the agreement of an owner and in
consultation with the tenants of the housing, section 8
tenant-based assistance for some or all of the assisted
units in a multifamily housing project in lieu of
section
[[Page 110 STAT. 2903]]
8 project-based assistance. Section 8 tenant-based
assistance may only be provided where the Secretary
determines and certifies that there is adequate
available and affordable housing within the local area
and that tenants will be able to use the section 8
tenant-based assistance successfully.
(2) Offer and acceptance.--Notwithstanding any other
provision of law, an owner of a project in the demonstration
must accept any reasonable offer made by the Secretary or a
designee under this subsection. An owner may appeal the
reasonableness of any offer to the Secretary and the Secretary
shall respond within 30 days of the date of appeal with a final
offer. If the final offer is not acceptable, the owner may opt
out of the program.
(i) Community and Tenant Input.--In carrying out this section, the
Secretary shall develop procedures to provide appropriate and timely
notice, including an opportunity for comment and timely access to all
relevant information, to officials of the unit of general local
government affected, the community in which the project is situated, and
the tenants of the project.
(j) Transfer of Property.--The Secretary shall establish procedures
to facilitate the voluntary sale or transfer of multifamily housing
projects under the demonstration to tenant organizations and tenant-
endorsed community-based nonprofit and public agency purchasers meeting
such reasonable qualifications as may be established by the Secretary.
(k) Limitation on Demonstration Authority.--The Secretary shall
carry out the demonstration program with respect to mortgages not to
exceed 50,000 units.
(l) Funding.--In addition to the $30,000,000 made available under
section 210 of the Departments of Veterans Affairs and Housing and Urban
Development and Independent Agencies Appropriations Act, 1996 (110 Stat.
1321), for the costs (including any credit subsidy costs associated with
providing direct loans or mortgage insurance) of modifying and
restructuring loans held or guaranteed by the Federal Housing
Administration, as authorized under this section, $10,000,000 is hereby
appropriated, to remain available until September 30, 1998.
(m) Report to Congress.--
(1) In general.--
(A) Quarterly reports.--Not less than every 3
months, the Secretary shall submit to the Congress a
report describing and assessing the status of the
projects in the demonstration program.
(B) Final report.--Not later than 6 months after the
end of the demonstration program, the Secretary shall
submit to the Congress a final report on the
demonstration program.
(2) Contents.--Each report submitted under paragraph (1)(A)
shall include a description of--
(A) each restructuring proposal submitted by an
owner of a multifamily housing project, including a
description of the physical, financial, tenancy, and
market characteristics of the project;
(B) the Secretary's evaluation and reasons for each
multifamily housing project selected or rejected for
participation in the demonstration program;
[[Page 110 STAT. 2904]]
(C) the costs to the FHA General Insurance and
Special Risk Insurance funds;
(D) the subsidy costs provided before and after
restructuring;
(E) the actions undertaken in the demonstration
program, including the third-party arrangements made;
and
(F) the demonstration program's impact on the owners
of the projects, including any tax consequences.
(3) Contents of final report.--The report submitted under
paragraph (1)(B) shall include--
(A) the required contents under paragraph (2); and
(B) any findings and recommendations for legislative
action.
Sec. 213. Hawaiian Home Lands.--Section 282 of the
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12832) is
amended by adding at the end the following new sentence: ``The Secretary
may waive this section in connection with the use of funds made
available under this title on lands set aside under the Hawaiian Homes
Commission Act, 1920 (42 Stat. 108).''.
Sec. 214. Uses of Certain Assisted Housing Amounts.--(a) Transfer
Authority.--The Secretary may transfer recaptured section 8 amounts from
the Annual Contributions for Assisted Housing account under Public Law
104-134 (approved April 26, 1996; 110 Stat. 1321, 1321-265) and prior
laws to the accounts and for the purposes set forth in subsection (b).
The amounts transferred under this section shall be made available for
use as prescribed under this section notwithstanding section 8(bb) of
the United States Housing Act of 1937.
(b) Receiving Accounts.--
(1) Prevention of resident displacement.--The Secretary may
transfer to the Prevention of Resident Displacement account an
amount up to $50,000,000, in addition to amounts in such
account, that may be used to extend, under existing terms and
conditions, existing project-based section 8 contracts in effect
before a Plan of Action was approved, so that these contracts
expire 5 years from the date on which funds were obligated for
the Plan of Action approved under the Low-Income Housing
Preservation and Resident Homeownership Act of 1990 or the
Emergency Low Income Housing Preservation Act of 1987. The
Secretary shall transfer all amounts that the Secretary
determines to be necessary for fiscal year 1997 for the purposes
of this paragraph before transferring any amounts under any
other paragraph in this subsection.
(2) HOPWA.--The Secretary may transfer to the Housing
Opportunities for Persons with AIDS account up to $25,000,000,
for use in addition to amounts appropriated in such account.
Sec. 215. Requirement for HUD To Maintain Public Notice and Comment
Rulemaking.--The Secretary of Housing and Urban Development shall
maintain all current requirements under part 10 of the Department of
Housing and Urban Development's
regulations (24 CFR part 10) with respect to the Department's policies
and procedures for the promulgation and issuance of rules, including the
use of public participation in the rulemaking process.
Sec. 216. Community Development Block Grants.--Section 102(a)(6)(D)
of the Housing and Community Development Act of 1974 (42 U.S.C.
5302(a)(6)(D)) is amended--
(1) in clause (iv), by striking ``or'' at the end;
[[Page 110 STAT. 2905]]
(2) in clause (v), by striking the period at the end and
inserting ``; or''; and
(3) by adding at the end the following new clause:
``(vi) has entered into a local cooperation
agreement with a metropolitan city that received
assistance under section 106 because of such
classification, and has elected under paragraph (4) to
have its population included with the population of the
county for the purposes of qualifying as an urban
county, except that to qualify as an urban county under
this clause, the county must--
``(I) have a combined population of not less
than 210,000, excluding any metropolitan city
located in the county that is not relinquishing
its metropolitan city classification, according to
the 1990 decennial
census of the Bureau of the Census of the
Department of Commerce;
``(II) including any metropolitan cities
located in the county, have had a decrease in
population of 10,061 from 1992 to 1994, according
to the estimates of the Bureau of the Census of
the Department of Commerce; and
``(III) have had a Federal naval installation
that was more than 100 years old closed by action
of the Base Closure and Realignment Commission
appointed for 1993 under the Base Closure and
Realignment Act of 1990, directly resulting in a
loss of employment by more than 7,000 Federal
Government civilian employees and more than 15,000
active duty military personnel, which naval
installation was located within one mile of an
enterprise community designated by the Secretary
pursuant to section 1391 of the Internal Revenue
Code of 1986, which enterprise community has a
population of not less than 20,000, according to
the 1990 decennial census of the Bureau of the
Census of the Department of Commerce.''.
Sec. 217. Fair Housing and Free Speech.--None of the amounts made
available under this Act may be used during fiscal year 1997 to
investigate or prosecute under the Fair Housing Act any otherwise lawful
activity engaged in by one or more persons, including the filing or
maintaining of a nonfrivolous legal action, that is engaged in solely
for the purpose of achieving or preventing action by a government
official or entity, or a court of competent jurisdiction.
Sec. 218. Account Transition.--The amounts of obligated balances in
appropriations accounts, as set forth in title II of the Departments of
Veterans Affairs and Housing and Urban Development, and Independent
Agencies Appropriations Act, 1996 and prior Acts that are recaptured
hereafter, to the extent not governed by the specific language in an
account or provision in this Act, shall be held in reserve subject to
reprogramming, notwithstanding any other provision of law.
Sec. 219. Treatment of Certain Properties.--Notwithstanding any
other provision of law, rehabilitation activities undertaken in projects
using the Low-Income Housing Tax Credit allocated to developments in the
city of New Brunswick, New Jersey, in 1991, are deemed to have met the
requirements for rehabilitation in accordance with clause (ii) of the
third sentence of section
[[Page 110 STAT. 2906]]
8(d)(2)(A) of the United States Housing Act of 1937, as in effect before
the date of the enactment of this Act.
Sec. 220. Amendment Relating to Community Development Assistance.--
Section 105(a) of the Housing and Community Development Act of 1974 (42
U.S.C. 5305(a)(8)) is amended by striking ``through 1997'' and inserting
``through 1998''.
Sec. 221. Section 236 Program Amendments.--(a) Section 236(f)(1) of
the National Housing Act (12 U.S.C. 1715z-1), as
amended by section 405(d)(1) of The Balanced Budget Downpayment Act,
I, <<NOTE: Ante, p. 44.>> and by section 228(a) of The Balanced Budget
Downpayment Act, II, is amended--
(1) in the second sentence, by striking ``the lower of
(i)'';
(2) in the second sentence, by striking ``or (ii) the fair
market rental established under section 8(c) of the United
States Housing Act of 1937 for the market area in which the
housing is located, or (iii) the actual rent (as determined by
the Secretary) paid for a comparable unit in comparable
unassisted housing in the market area in which the housing
assisted under this section is located,''; and
(3) by inserting after the second sentence the following:
``However, in the case of a project which contains more than
5,000 units, is subject to an interest reduction payments
contract, and is financed under a State or local program, the
Secretary may reduce the rental charge ceiling, but in no case
shall the rent be below basic rent. For plans of action approved
for Capital Grants under the Low-Income Housing Preservation and
Resident Homeownership Act of 1990 (LIHPRHA) or the Emergency
Low Income Housing Preservation Act of 1987 (ELIHPA), the rental
charge for each dwelling unit shall be at the basic rental
charge or such greater amount, not exceeding the lower of (i)
the fair market rental charge determined pursuant to this
paragraph, or (ii) the actual rent paid for a comparable unit in
comparable unassisted housing in the market area in which the
housing assisted under this section is located, as represents 30
percent of the tenant's adjusted income, but in no case shall
the rent be below basic rent.''.
(b) Section 236(f) of the National Housing Act is amended by adding
the following new paragraph at the end:
``(7) The Secretary shall determine whether and under what
conditions the provisions of this subsection shall apply to
mortgages sold by the Secretary on a negotiated basis.''.
(c) Section 236(g) of the National Housing Act is amended to read as
follows:
``The project owner shall, as required by the Secretary, accumulate,
safeguard, and periodically pay the Secretary or such other entity as
determined by the Secretary and upon such terms and conditions as the
Secretary deems appropriate, all rental charges collected on a unit-by-
unit basis in excess of the basic rental charges. Unless otherwise
directed by the Secretary, such excess charges shall be credited to a
reserve fund to be used by the Secretary to make additional assistance
payments as provided in paragraph (3) of subsection (f). However, a
project owner with a mortgage insured under this section may retain some
or all of such excess charges for project use if authorized by the
Secretary and upon such terms and conditions as established by the
Secretary.''.
TITLE III
[[Page 110 STAT. 2907]]
INDEPENDENT AGENCIES
American Battle Monuments Commission
salaries and expenses
For necessary expenses, not otherwise provided for, of the American
Battle Monuments Commission, including the acquisition of land or
interest in land in foreign countries; purchases and repair of uniforms
for caretakers of national cemeteries and monuments outside of the
United States and its territories and possessions; rent of office and
garage space in foreign countries; purchase (one for replacement only)
and hire of passenger motor vehicles; and insurance of official motor
vehicles in foreign countries, when required by law of such countries;
$22,265,000, to remain available until expended: Provided, <<NOTE: 36
USC 121b.>> That where station allowance has been authorized by the
Department of the Army for officers of the Army serving the Army at
certain foreign stations, the same allowance shall be authorized for
officers of the Armed Forces assigned to the Commission while serving at
the same foreign stations, and this appropriation is hereby made
available for the payment of such allowance: Provided further, That
when <<NOTE: 36 USC 122.>> traveling on business of the Commission,
officers of the Armed Forces serving as members or as Secretary of the
Commission may be reimbursed for expenses as provided for civilian
members of the Commission: Provided <<NOTE: 36 USC 122a.>>
further, That the Commission shall reimburse other Government agencies,
including the Armed Forces, for salary, pay, and allowances of personnel
assigned to it.
Department of the Treasury
Community Development Financial Institutions
community development financial institutions fund program account
For grants, loans, and technical assistance to qualifying community
development lenders, and administrative expenses of the Fund,
$45,000,000, to remain available until September 30, 1998, of
which $8,000,000 may be used for the cost of direct loans, and up to
$800,000 may be used for administrative expenses to carry out the direct
loan program: Provided, That the cost of direct loans, including the
cost of modifying such loans, shall be as defined in section 502 of the
Congressional Budget Act of 1974: Provided further, That not more than
$19,400,000 of the funds made available under this heading may be used
for programs and activities authorized in section 114 of the Community
Development Banking and Financial Institutions Act of 1994.
Consumer Product Safety Commission
salaries and expenses
For necessary expenses of the Consumer Product Safety Commission,
including hire of passenger motor vehicles, services as authorized by 5
U.S.C. 3109, but at rates for individuals not
[[Page 110 STAT. 2908]]
to exceed the per diem rate equivalent to the rate for GS-18, purchase
of nominal awards to recognize non-Federal officials' contributions to
Commission activities, and not to exceed $500 for official reception and
representation expenses, $42,500,000.
Corporation for National and Community Service
national and community service programs operating expenses
(including transfer of funds)
For necessary expenses for the Corporation for National and
Community Service (referred to in the matter under this heading as the
``Corporation'') in carrying out programs, activities, and initiatives
under the National and Community Service Act of 1990 (referred to in the
matter under this heading as the ``Act'') (42 U.S.C. 12501 et seq.),
$400,500,000, of which $265,000,000 shall be available for obligation
from September 1, 1997, through September 30, 1998: Provided, That not
more than $25,000,000 shall be available for administrative expenses
authorized under section 501(a)(4) of the Act (42 U.S.C. 12671(a)(4)):
Provided further, That not more than $2,500 shall be for official
reception and representation expenses: Provided further, That not more
than $59,000,000, to remain available without fiscal year limitation,
shall be transferred to the National Service Trust account for
educational awards authorized under subtitle D of title I of the Act (42
U.S.C. 12601 et seq.): Provided further, That not more than $215,000,000
of the amount provided under this heading shall be available for grants
under the National Service Trust program authorized under subtitle C of
title I of the Act (42 U.S.C. 12571 et seq.) (relating to activities
including the Americorps program), of which not more than $40,000,000
may be used to administer, reimburse or support any national service
program authorized under section 121(d)(2) of such Act (42 U.S.C.
12581(d)(2)): Provided further, That not more than $5,500,000 of the
funds made available under this heading shall be made available for the
Points of Light Foundation for activities authorized under title III of
the Act (42 U.S.C. 12661 et seq.): Provided further, That no funds shall
be available for national service programs run by Federal agencies
authorized under section 121(b) of such Act (42 U.S.C. 12571(b)):
Provided further, That to the maximum extent feasible, funds
appropriated in the preceding proviso shall be provided in a manner that
is consistent with the recommendations of peer review panels in order to
ensure that priority is given to programs that demonstrate quality,
innovation, replicability, and sustainability: Provided further, That
not more than $18,000,000 of the funds made available under this heading
shall be available for the Civilian Community Corps authorized under
subtitle E of title I of the Act (42 U.S.C. 12611 et seq.): Provided
further, That not more than $43,000,000 shall be available for school-
based and community-based service-learning programs authorized under
subtitle B of title I of the Act (42 U.S.C. 12521 et seq.): Provided
further, That not more than $30,000,000 shall be available for quality
and innovation activities authorized under subtitle H of title I of the
Act (42 U.S.C. 12853 et seq.): Provided further, That not more than
$5,000,000 shall be available for audits and other evaluations
authorized under section 179 of the Act (42 U.S.C. 12639): Provided
further, That
[[Page 110 STAT. 2909]]
no funds from any other appropriation, or from funds otherwise made
available to the Corporation, shall be used to pay for personnel
compensation and benefits, travel, or any other administrative expense
for the Board of Directors, the Office of the Chief Executive Officer,
the Office of the Managing Director, the Office of the Chief Financial
Officer, the Office of National and Community Service Programs, the
Civilian Community Corps, or any field office or staff of the
Corporation working on the National and Community Service or Civilian
Community Corps programs: Provided further, That to the maximum extent
practicable, the Corporation shall increase significantly the level of
matching funds and in-kind contributions provided by the private sector,
shall expand significantly the number of educational awards provided
under subtitle D of title I, and shall reduce the total Federal costs
per participant in all programs.
office of inspector general
For necessary expenses of the Office of Inspector General in
carrying out the provisions of the Inspector General Act of 1978, as
amended, $2,000,000.
Court of Veterans Appeals
salaries and expenses
For necessary expenses for the operation of the United States Court
of Veterans Appeals as authorized by 38 U.S.C. sections 7251-7292,
$9,229,000, of which $700,000, to remain available until September 30,
1998, shall be available for the purpose of providing financial
assistance as described, and in accordance with the process and
reporting procedures set forth, under this heading in Public Law 102-
229.
Department of Defense--Civil Cemeterial Expenses, Army
salaries and expenses
For necessary expenses, as authorized by law, for maintenance,
operation, and improvement of Arlington National Cemetery and Soldiers'
and Airmen's Home National Cemetery, including the purchase of one
passenger motor vehicle for replacement only, and not to exceed $1,000
for official reception and representation expenses, $11,600,000, to
remain available until expended.
Environmental Protection Agency
science and technology
For science and technology, including research and development
activities, which shall include research and development activities
under the Comprehensive Environmental Response, Compensation, and
Liability Act of 1980 (CERCLA), as amended; necessary expenses for
personnel and related costs and travel expenses, including uniforms, or
allowances therefore, as authorized by 5 U.S.C. 5901-5902; services as
authorized by 5 U.S.C. 3109, but at rates for individuals not to exceed
the per diem rate equivalent to the rate for GS-18; procurement of
laboratory equipment and supplies;
[[Page 110 STAT. 2910]]
other operating expenses in support of research and development;
construction, alteration, repair, rehabilitation, and renovation of
facilities, not to exceed $75,000 per project, $542,000,000, which shall
remain available until September 30, 1998.
environmental programs and management
For environmental programs and management, including necessary
expenses, not otherwise provided for, for personnel and related costs
and travel expenses, including uniforms, or allowances therefore, as
authorized by 5 U.S.C. 5901-5902; services as authorized by 5 U.S.C.
3109, but at rates for individuals not to exceed the per diem rate
equivalent to the rate for GS-18; hire of passenger motor vehicles;
hire, maintenance, and operation of aircraft; purchase of reprints;
library memberships in societies or associations which issue
publications to members only or at a price to members lower than to
subscribers who are not members; construction, alteration, repair,
rehabilitation, and renovation of facilities, not to exceed $75,000 per
project; and not to exceed $6,000 for official reception and
representation expenses, $1,710,000,000, which shall remain available
until September 30, 1998.
office of inspector general
For necessary expenses of the Office of Inspector General in
carrying out the provisions of the Inspector General Act of 1978, as
amended, and for construction, alteration, repair, rehabilitation, and
renovation of facilities, not to exceed $75,000 per project,
$28,500,000.
buildings and facilities
For construction, repair, improvement, extension, alteration, and
purchase of fixed equipment or facilities of, or for use by, the
Environmental Protection Agency, $87,220,000, to remain available until
expended: Provided, That EPA is authorized to establish and construct a
consolidated research facility at Research Triangle Park, North
Carolina, at a maximum total construction cost of $232,000,000, and to
obligate such monies as are made available by this Act for this purpose:
Provided further, That EPA is authorized to construct such facility
through multi-year contracts incrementally funded through appropriations
hereafter made available for this project: Provided further, That,
notwithstanding the previous provisos, for monies obligated pursuant to
this authority, EPA may not obligate monies in excess of those provided
in advance in annual appropriations, and such contracts shall clearly
provide for this limitation.
hazardous substance superfund
(including transfer of funds)
For necessary expenses to carry out the Comprehensive Environmental
Response, Compensation, and Liability Act of 1980 (CERCLA), as amended,
including sections 111 (c)(3), (c)(5), (c)(6), and (e)(4) (42 U.S.C.
9611), and for construction, alteration, repair, rehabilitation, and
renovation of facilities, not to exceed $75,000 per project; not to
exceed $1,394,245,000 (of which $100,000,000
[[Page 110 STAT. 2911]]
shall not become available until September 1, 1997), to remain available
until expended, consisting of $1,144,245,000 as authorized by section
517(a) of the Superfund Amendments and Reauthorization Act of 1986
(SARA), as amended by Public Law 101-508, and $250,000,000 as a payment
from general revenues to the Hazardous Substance Superfund as authorized
by section 517(b) of SARA, as amended by Public Law 101-508: Provided,
That funds appropriated under this heading may be allocated to other
Federal agencies in accordance with section 111(a) of CERCLA: Provided
further, That $11,000,000 of the funds appropriated under this heading
shall be transferred to the ``Office of Inspector General''
appropriation to remain available until September 30, 1997:
Provided further, That notwithstanding section 111(m) of CERCLA or any
other provision of law, not to exceed $64,000,000 of the funds
appropriated under this heading shall be available to the Agency for
Toxic Substances and Disease Registry to carry out activities described
in sections 104(i), 111(c)(4), and 111(c)(14) of CERCLA and section
118(f) of the Superfund Amendments and Reauthorization Act of 1986:
Provided further, That $35,000,000 of the funds appropriated under this
heading shall be transferred to the ``Science and technology''
appropriation to remain available until September 30, 1998: Provided
further, That none of the funds appropriated under this heading shall be
available for the Agency for Toxic Substances and Disease Registry to
issue in excess of 40 toxicological profiles pursuant to section 104(i)
of CERCLA during fiscal year 1997.
leaking underground storage tank trust fund
(including transfer of funds)
For necessary expenses to carry out leaking underground storage tank
cleanup activities authorized by section 205 of the Superfund Amendments
and Reauthorization Act of 1986, and for construction, alteration,
repair, rehabilitation, and renovation of facilities, not to exceed
$75,000 per project, $60,000,000, to remain available until expended:
Provided, That no more than $7,000,000 shall be available for
administrative expenses: Provided further, That $577,000 shall be
transferred to the ``Office of Inspector General'' appropriation to
remain available until September 30, 1997.
oil spill response
(including transfer of funds)
For expenses necessary to carry out the Environmental Protection
Agency's responsibilities under the Oil Pollution Act of 1990,
$15,000,000, to be derived from the Oil Spill Liability trust fund, and
to remain available until expended: Provided, That not more than
$8,000,000 of these funds shall be available for administrative
expenses.
state and tribal assistance grants
For environmental programs and infrastructure assistance, including
capitalization grants for State revolving funds and performance
partnership grants, $2,875,207,000, to remain available until expended,
of which $1,900,000,000 shall be for making
[[Page 110 STAT. 2912]]
capitalization grants for State revolving funds to support water
infrastructure financing; $100,000,000 for architectural, engineering,
planning, design, construction and related activities in connection with
the construction of high priority water and wastewater facilities in the
area of the United States-Mexico Border, after consultation with the
appropriate border commission; $50,000,000 for grants to the State of
Texas, which shall be matched by an equal amount of State funds from
State resources, for the purpose of improving wastewater treatment for
colonias; $15,000,000 for grants to the State of Alaska subject to an
appropriate cost share as determined by the Administrator, to address
water supply and wastewater infrastructure needs of rural and Alaska
Native Villages; $136,000,000 for making grants for the construction of
wastewater and water treatment facilities and the development of
groundwater in accordance with the terms and conditions specified for
such grants in the conference report and joint explanatory statement of
the committee of conference accompanying this Act (H.R. 3666); and
$674,207,000 for grants to States and federally recognized tribes for
multi-media or single media pollution prevention, control and abatement
and related activities pursuant to the provisions set forth under this
heading in Public Law 104-134: Provided, That, from funds appropriated
under this heading, the Administrator may make grants to federally
recognized Indian governments for the development of multi-media
environmental programs: Provided further, <<NOTE: 33 USC 128 note.>>
That notwithstanding any other provision of law, beginning in fiscal
year 1997 the Administrator may make grants to States, from funds
available for obligation in the State under title II of the Federal
Water Pollution Control Act, as amended, for administering the
completion and closeout of the State's construction grants program,
based on a budget annually negotiated with the State: Provided further,
That of the $1,900,000,000 for capitalization grants for State revolving
funds to support water infrastructure financing, $1,275,000,000 shall be
for drinking water State revolving funds: Provided further, That the
funds made available in Public Law 103-327 for a grant to the City of
Bangor, Maine, in accordance with House Report 103-715, shall be
available for a grant to that city for meeting combined sewer overflow
requirements: Provided further, That, notwithstanding any other
provision of law, a State that did not receive, in fiscal year 1996,
grants under title VI of the Federal Water Pollution Control Act, as
amended, that obligated all the funds allotted to it from the
$725,000,000 that became available for that purpose on August 1, 1996,
may receive reallotted funds from the fiscal year 1996 appropriation,
provided the State receives such grants in fiscal year 1997.
working capital fund
(including transfer of funds)
There is hereby established <<NOTE: 31 USC 501 note.>> in the
Treasury a franchise fund pilot to be known as the ``Working capital
fund'', as authorized by section 403 of Public Law 103-356, to be
available as provided in such section for expenses and equipment
necessary for the maintenance and operation of such administrative
services as the Administrator determines may be performed more
advantageously as central services: Provided, That any inventories,
equipment, and other assets pertaining to the services to be provided by
such
[[Page 110 STAT. 2913]]
fund, either on hand or on order, less the related liabilities or unpaid
obligations, and any appropriations made hereafter for the purpose of
providing capital, shall be used to capitalize such fund: Provided
further, That such fund shall be paid in advance from funds available to
the Agency and other Federal agencies for which such centralized
services are performed, at rates which will return in full all expenses
of operation, including accrued leave, depreciation of fund plant and
equipment, amortization of automated data processing (ADP) software and
systems (either acquired or donated), and an amount necessary to
maintain a reasonable operating reserve, as determined by the
Administrator: Provided further, That such fund shall provide services
on a competitive basis: Provided further, That an amount not to exceed
four percent of the total annual income to such fund may be retained in
the fund for fiscal year 1997 and each fiscal year thereafter, to remain
available until expended, to be used for the acquisition of capital
equipment and for the improvement and implementation of Agency financial
management, ADP, and other support systems: Provided further, That no
later than thirty days after the end of each fiscal year amounts in
excess of this reserve limitation shall be transferred to the Treasury:
Provided further, That such franchise fund pilot shall terminate
pursuant to section 403(f) of Public Law 103-356.
Executive Office of the President
office of science and technology policy
For necessary expenses of the Office of Science and Technology
Policy, in carrying out the purposes of the National Science and
Technology Policy, Organization, and Priorities Act of 1976 (42 U.S.C.
6601 and 6671), hire of passenger motor vehicles, and services as
authorized by 5 U.S.C. 3109, not to exceed $2,500 for official reception
and representation expenses, and rental of conference rooms in the
District of Columbia, $4,932,000.
council on environmental quality and office of environmental quality
For necessary expenses to continue functions assigned to the Council
on Environmental Quality and Office of Environmental Quality pursuant to
the National Environmental Policy Act of 1969, the Environmental Quality
Improvement Act of 1970, and Reorganization Plan No. 1 of 1977,
$2,436,000.
Federal Emergency Management Agency
disaster relief
For necessary expenses in carrying out the Robert T. Stafford
Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.),
$1,320,000,000, and, notwithstanding 42 U.S.C. 5203, to become available
for obligation on September 30, 1997, and remain available until
expended: Provided, That notwithstanding any other provision of this
paragraph, amounts appropriated herein shall be available for obligation
on October 1, 1996: <<NOTE: Reports.>> Provided further, That the
Director of the Federal Emergency Management Agency (FEMA) shall submit
to the appropriate committees of Congress within 120 days of enactment
of this Act a comprehensive report
[[Page 110 STAT. 2914]]
on FEMA's plans to reduce disaster relief expenditures and improve
managment controls on the Disaster Relief Fund.
disaster assistance direct loan program account
For the cost of direct loans, $1,385,000, as authorized by section
319 of the Robert T. Stafford Disaster Relief and Emergency Assistance
Act (42 U.S.C. 5121 et seq.): Provided, That such costs,
including the cost of modifying such loans, shall be as defined in
section 502 of the Congressional Budget Act of 1974, as amended:
Provided further, That these funds are available to subsidize gross
obligations for the principal amount of direct loans not to exceed
$25,000,000.
In addition, for administrative expenses to carry out the direct
loan program, $548,000.
salaries and expenses
For necessary expenses, not otherwise provided for, including hire
and purchase of motor vehicles (31 U.S.C. 1343); uniforms, or allowances
therefor, as authorized by 5 U.S.C. 5901-5902;
services as authorized by 5 U.S.C. 3109, but at rates for individuals
not to exceed the per diem rate equivalent to the rate for GS-18;
expenses of attendance of cooperating officials and individuals at
meetings concerned with the work of emergency preparedness;
transportation in connection with the continuity of Government programs
to the same extent and in the same manner as permitted the Secretary of
a Military Department under 10 U.S.C. 2632; and not to exceed $2,500 for
official reception and representation expenses, $167,500,000.
office of inspector general
For necessary expenses of the Office of Inspector General in
carrying out the provisions of the Inspector General Act of 1978, as
amended, $4,673,000.
emergency management planning and assistance
For necessary expenses, not otherwise provided for, to carry out
activities under the National Flood Insurance Act of 1968, as amended,
and the Flood Disaster Protection Act of 1973, as amended (42 U.S.C.
4001 et seq.), the Robert T. Stafford Disaster Relief and Emergency
Assistance Act (42 U.S.C. 5121 et seq.), the Earthquake Hazards
Reduction Act of 1977, as amended (42 U.S.C. 7701 et seq.), the Federal
Fire Prevention and Control Act of 1974, as amended (15 U.S.C. 2201 et
seq.), the Defense Production Act of 1950, as amended (50 U.S.C. App.
2061 et seq.), sections 107 and 303 of the National Security Act of
1947, as amended (50 U.S.C. 404-405), and Reorganization Plan No. 3 of
1978, $206,701,000.
emergency food and shelter program
To carry out an emergency food and shelter program pursuant to title
III of Public Law 100-77, as amended, $100,000,000: Provided, That total
administrative costs shall not exceed three and one-half percent of the
total appropriation.
[[Page 110 STAT. 2915]]
national flood insurance fund
For activities under the National Flood Insurance Act of 1968, the
Flood Disaster Protection Act of 1973, and the National Flood Insurance
Reform Act of 1994, not to exceed $20,981,000 for salaries and expenses
associated with flood mitigation and flood insurance operations, and not
to exceed $78,464,000 for flood mitigation, including up to $20,000,000
for expenses under section 1366 of the National Flood Insurance Act,
which amount shall be available until September 30, 1998. The first
sentence of section 1376(c) of the National Flood Insurance Act of 1968,
as amended (42 U.S.C. 4127(c)), is amended by striking all after ``this
subsection'' and inserting ``such sums as may be necessary through
September 30, 1997 for studies under this title.''. In fiscal year 1997,
no funds in excess of (1) $47,000,000 for operating expenses, (2)
$335,680,000 for agents' commissions and taxes, and (3) $35,000,000 for
interest on Treasury borrowings shall be available from the National
Flood Insurance Fund without prior notice to the Committees on
Appropriations. For fiscal year 1997, flood insurance rates shall not
exceed the level authorized by the National Flood Insurance Reform Act
of 1994. Section 1319 of the National Flood Insurance Act of 1968, as
amended (42 U.S.C. 4026), is amended by striking out September 30,
1996.'' and inserting ``September 30, 1997.''.
working capital fund
For the establishment <<NOTE: 31 USC 501 note.>> of a working
capital fund for the Federal Emergency Management Agency, to be
available without fiscal year limitation, for expenses and equipment
necessary for maintenance and operations of such administrative services
as the Director determines may be performed more advantageously as
central services: Provided, That any inventories, equipment, and other
assets pertaining to the services to be provided by such fund, either on
hand or on order, less the related liabilities or unpaid obligations,
and any appropriations made hereafter for the purpose of providing
capital, shall be used to capitalize such fund: Provided further, That
such fund shall be reimbursed or credited with advance payments from
applicable appropriations and funds of the Federal Emergency Management
Agency, other Federal agencies, and other sources authorized by law for
which such centralized services are performed, including supplies,
materials, and services, at rates that will return in full all expenses
of operation, including accrued leave, depreciation of fund plant and
equipment, amortization of automated data processing (ADP) software and
systems (either acquired or donated), and an amount necessary to
maintain a reasonable operating reserve as determined by the Director:
Provided further, That income of such fund may be retained, to remain
available until expended, for purposes of the fund: Provided further,
That fees for services shall be established by the Director at a level
to cover the total estimated costs of providing such services, such fees
to be deposited in the fund shall remain available until expended for
purposes of the fund: Provided further, That such fund shall terminate
in a manner consistent with section 403(f) of Public Law 103-356.
[[Page 110 STAT. 2916]]
administrative provision
The Director <<NOTE: Regulations.>> of the Federal Emergency
Management Agency shall promulgate through rulemaking a methodology for
assessment and collection of fees to be assessed and collected beginning
in fiscal year 1997 applicable to persons subject to the Federal
Emergency Management Agency's radiological emergency preparedness
regulations. The aggregate charges assessed pursuant to this section
during fiscal year 1997 shall approximate, but not be less than, 100 per
centum of the amounts anticipated by the Federal Emergency Management
Agency to be obligated for its radiological
emergency preparedness program for such fiscal year. The methodology for
assessment and collection of fees shall be fair and equitable, and shall
reflect the full amount of costs of providing radiological emergency
planning, preparedness, response and associated services. Such fees
shall be assessed in a manner that reflects the use of agency resources
for classes of regulated persons and the administrative costs of
collecting such fees. Fees received pursuant to this section shall be
deposited in the general fund of the Treasury as offsetting receipts.
Assessment and collection of such fees are only authorized during fiscal
year 1997.
General Services Administration
consumer information center fund
For necessary expenses of the Consumer Information Center, including
services authorized by 5 U.S.C. 3109, $2,260,000, to be deposited into
the Consumer Information Center Fund: Provided, That the appropriations,
revenues and collections deposited into the fund shall be available for
necessary expenses of Consumer Information Center activities in the
aggregate amount of $7,500,000. Appropriations, revenues, and
collections accruing to this fund during fiscal year 1997 in excess of
$7,500,000 shall remain in the fund and shall not be available for
expenditure except as authorized in appropriations Acts:
Provided <<NOTE: 40 USC 761a.>> further, That notwithstanding any other
provision of law, the Consumer Information Center may accept and deposit
to this account, during fiscal year 1997 and hereafter, gifts for the
purpose of defraying its costs of printing, publishing, and distributing
consumer information and educational materials and undertaking other
consumer information activities; may expend those gifts for those
purposes, in addition to amounts appropriated or otherwise made
available; and the balance shall remain available for expenditure for
such purpose.
National Aeronautics and Space Administration
human space flight
For necessary expenses, not otherwise provided for, in the conduct
and support of human space flight research and development activities,
including research, development, operations, and services; maintenance;
construction of facilities including repair, rehabilitation, and
modification of real and personal property, and acquisition or
condemnation of real property, as authorized by law; space flight,
spacecraft control and communications activities including operations,
production, and services; and purchase, lease, charter, maintenance and
operation of mission and administrative
[[Page 110 STAT. 2917]]
aircraft, $5,362,900,000, to remain available until September 30, 1998.
science, aeronautics and technology
For necessary expenses, not otherwise provided for, in the conduct
and support of science, aeronautics and technology research and
development activities, including research, development,
operations, and services; maintenance; construction of facilities
including repair, rehabilitation, and modification of real and personal
property, and acquisition or condemnation of real property, as
authorized by law; space flight, spacecraft control and communications
activities including operations, production, and services; and purchase,
lease, charter, maintenance and operation of mission and administrative
aircraft, $5,762,100,000, to remain available until September 30, 1998.
Chapter VII of Public Law 104-6 <<NOTE: 109 Stat. 88.>> is amended
under the heading, ``National Aeronautics and Space Administration'' by
replacing ``September 30, 1997'' with ``September 30, 1998'' and
``1996'' with ``1997''.
mission support
For necessary expenses, not otherwise provided for, in carrying out
mission support for human space flight programs and science,
aeronautical, and technology programs, including research operations and
support; space communications activities including operations,
production and services; maintenance; construction of facilities
including repair, rehabilitation, and modification of facilities, minor
construction of new facilities and additions to existing facilities,
facility planning and design, environmental compliance and restoration,
and acquisition or condemnation of real property, as authorized by law;
program management; personnel and related costs, including uniforms or
allowances therefor, as authorized by 5 U.S.C. 5901-5902; travel
expenses; purchase, lease, charter, maintenance, and operation of
mission and administrative aircraft; not to exceed $35,000 for official
reception and representation expenses; and purchase (not to exceed 33
for replacement only) and hire of passenger motor vehicles;
$2,562,200,000, to remain available until September 30, 1998.
office of inspector general
For necessary expenses of the Office of Inspector General in
carrying out the Inspector General Act of 1978, as amended, $17,000,000.
administrative provisions
(including transfer of funds)
Notwithstanding the limitation on the availability of funds
appropriated for ``Human space flight'', ``Science, aeronautics and
technology'', or ``Mission support'' by this appropriations Act, when
(1) any activity has been initiated by the incurrence of obligations for
construction of facilities as authorized by law, or (2) amounts are
provided for full-funding for the Tracking and Data Relay Satellite
(TDRS) replenishment program, such amount available for such activity
shall remain available until expended. This provision does not apply to
the amounts appropriated in ``Mission
[[Page 110 STAT. 2918]]
support'' pursuant to the authorization for repair, rehabilitation and
modification of facilities, minor construction of new facilities and
additions to existing facilities, and facility planning and design.
Notwithstanding the limitation on the availability of funds
appropriated for ``Human space flight'', ``Science, aeronautics and
technology'', or ``Mission support'' by this appropriations Act, the
amounts appropriated for construction of facilities shall remain
available until September 30, 1999.
Notwithstanding the limitation on the availability of funds
appropriated for ``Mission support'' and ``Office of Inspector
General'', amounts made available by this Act for personnel and related
costs and travel expenses of the National Aeronautics and Space
Administration shall remain available until September 30, 1997 and may
be used to enter into contracts for training, investigations, cost
associated with personnel relocation, and for other services, to be
provided during the next fiscal year.
Upon the determination by the Administrator that such action is
necesssary, the Administrator may, with the approval of the Office of
Management and Budget, transfer not to exceed $177,000,000 of funds made
available in this Act to the National Aeronautics and Space
Administration for the International Space Station between ``Science,
aeronautics and technology'' and ``Human space flight'', to be merged
with and to be available for the same purposes, and for the same time
period, as the appropriation to which transferred: Provided, That such
authority may not be used unless for higher priority items than those
for which originally appropriated: Provided further,
That <<NOTE: Notification.>> the Administrator of the National
Aeronautics and Space Administration shall notify the Congress promptly
of all transfers made pursuant to this authority.
National Credit Union Administration
central liquidity facility
During fiscal year 1997, gross obligations of the Central Liquidity
Facility for the principal amount of new direct loans to member credit
unions, as authorized by the National Credit Union Central Liquidity
Facility Act (12 U.S.C. 1795), shall not exceed $600,000,000: Provided,
That administrative expenses of the Central Liquidity Facility in fiscal
year 1997 shall not exceed $560,000: Provided further, That $1,000,000,
together with amounts of principal and interest on loans repaid, to be
available until expended, is available for loans to community
development credit unions.
National Science Foundation
research and related activities
For necessary expenses in carrying out the National Science
Foundation Act of 1950, as amended (42 U.S.C. 1861-1875), and the Act to
establish a National Medal of Science (42 U.S.C. 1880-1881); services as
authorized by 5 U.S.C. 3109; maintenance and operation of aircraft and
purchase of flight services for research support; acquisition of
aircraft; $2,432,000,000, of which not to exceed $226,000,000 shall
remain available until expended for Polar research and operations
support, and for reimbursement to other Federal agencies for operational
and science support and logistical
[[Page 110 STAT. 2919]]
and other related activities for the United States Antarctic program;
the balance to remain available until September 30, 1998: Provided, That
receipts for scientific support services and materials furnished by the
National Research Centers and other National Science Foundation
supported research facilities may be credited to this appropriation:
Provided further, That to the extent that the amount appropriated is
less than the total amount authorized to be appropriated for included
program activities, all amounts, including floors and ceilings,
specified in the authorizing Act for those program activities or their
subactivities shall be reduced proportionally.
major research equipment
For necessary expenses of major construction projects pursuant to
the National Science Foundation Act of 1950, as amended, $80,000,000, to
remain available until expended.
education and human resources
For necessary expenses in carrying out science and engineering
education and human resources programs and activities pursuant to the
National Science Foundation Act of 1950, as amended (42 U.S.C. 1861-
1875), including services as authorized by 5 U.S.C. 3109 and rental of
conference rooms in the District of Columbia, $619,000,000, to remain
available until September 30, 1998: Provided, That to the extent that
the amount of this appropriation is less than the total amount
authorized to be appropriated for included program activities, all
amounts, including floors and ceilings, specified in the authorizing Act
for those program activities or their subactivities shall be reduced
proportionally.
salaries and expenses
For necessary salaries and expenses of the National Science
Foundation Act of 1950, as amended (42 U.S.C. 1861-1875); services
authorized by 5 U.S.C. 3109; hire of passenger motor vehicles; not to
exceed $9,000 for official reception and representation expenses;
uniforms or allowances therefor, as authorized by 5 U.S.C. 5901-5902;
rental of conference rooms in the District of Columbia; reimbursement of
the General Services Administration for security guard services and
headquarters relocation; $134,310,000: Provided, That contracts may be
entered into under salaries and expenses in fiscal year 1997 for
maintenance and operation of facilities, and for other services, to be
provided during the next fiscal year.
office of inspector general
For necessary expenses of the Office of Inspector General as
authorized by the Inspector General Act of 1978, as amended, $4,690,000,
to remain available until September 30, 1998.
Neighborhood Reinvestment Corporation
payment to the neighborhood reinvestment corporation
For payment to the Neighborhood Reinvestment Corporation for use in
neighborhood reinvestment activities, as authorized by
[[Page 110 STAT. 2920]]
the Neighborhood Reinvestment Corporation Act (42 U.S.C. 8101-8107),
$49,900,000.
Selective Service System
salaries and expenses
For necessary expenses of the Selective Service System, including
expenses of attendance at meetings and of training for uniformed
personnel assigned to the Selective Service System, as authorized by 5
U.S.C. 4101-4118 for civilian employees; and not to exceed $1,000 for
official reception and representation expenses; $22,930,000: Provided,
That during the current fiscal year, the President may exempt this
appropriation from the provisions of 31 U.S.C. 1341, whenever he deems
such action to be necessary in the interest of national defense:
Provided further, That none of the funds appropriated by this Act may be
expended for or in connection with the induction of any person into the
Armed Forces of the United States.
TITLE IV--GENERAL PROVISIONS
Sec. 401. Where appropriations in titles I, II, and III of this Act
are expendable for travel expenses and no specific limitation has been
placed thereon, the expenditures for such travel expenses may not exceed
the amounts set forth therefore in the budget estimates submitted for
the appropriations: Provided, That this provision does not apply to
accounts that do not contain an object classification for travel:
Provided further, That this section shall not apply to travel performed
by uncompensated officials of local boards and appeal boards of the
Selective Service System; to travel performed directly in connection
with care and treatment of medical beneficiaries of the Department of
Veterans Affairs; to travel performed in connection with major disasters
or emergencies declared or determined by the President under the
provisions of the Robert T. Stafford Disaster Relief and Emergency
Assistance Act; to travel performed by the Offices of Inspector General
in connection with audits and investigations; or to payments to
interagency motor pools where separately set forth in the budget
schedules: Provided further, That if appropriations in titles I, II, and
III exceed the amounts set forth in budget estimates initially submitted
for such appropriations, the expenditures for travel may correspondingly
exceed the amounts therefore set forth in the estimates in the same
proportion.
Sec. 402. Appropriations and funds available for the administrative
expenses of the Department of Housing and Urban Development and the
Selective Service System shall be available in the current fiscal year
for purchase of uniforms, or allowances therefor, as authorized by 5
U.S.C. 5901-5902; hire of passenger motor vehicles; and services as
authorized by 5 U.S.C. 3109.
Sec. 403. Funds of the Department of Housing and Urban Development
subject to the Government Corporation Control Act or section 402 of the
Housing Act of 1950 shall be available, without regard to the
limitations on administrative expenses, for legal services on a contract
or fee basis, and for utilizing and making payment for services and
facilities of Federal National Mortgage Association, Government National
Mortgage Association, Federal Home Loan Mortgage Corporation, Federal
Financing Bank, Federal Reserve
[[Page 110 STAT. 2921]]
banks or any member thereof, Federal Home Loan banks, and any insured
bank within the meaning of the Federal Deposit Insurance Corporation
Act, as amended (12 U.S.C. 1811-1831).
Sec. 404. No part of any appropriation contained in this Act shall
remain available for obligation beyond the current fiscal year unless
expressly so provided herein.
Sec. 405. No funds appropriated by this Act may be expended--
(1) pursuant to a certification of an officer or employee of
the United States unless--
(A) such certification is accompanied by, or is part
of, a voucher or abstract which describes the payee or
payees and the items or services for which such
expenditure is being made, or
(B) the expenditure of funds pursuant to such
certification, and without such a voucher or abstract,
is specifically authorized by law; and
(2) unless such expenditure is subject to audit by the
General Accounting Office or is specifically exempt by law from
such audit.
Sec. 406. None of the funds provided in this Act to any department
or agency may be expended for the transportation of any officer or
employee of such department or agency between his domicile and his place
of employment, with the exception of any officer or employee authorized
such transportation under 31 U.S.C. 1344 or 5 U.S.C. 7905.
Sec. 407. None of the funds provided in this Act may be used for
payment, through grants or contracts, to recipients that do not share in
the cost of conducting research resulting from proposals not
specifically solicited by the Government: Provided, That the extent of
cost sharing by the recipient shall reflect the mutuality of interest of
the grantee or contractor and the Government in the research.
Sec. 408. None of the funds in this Act may be used, directly or
through grants, to pay or to provide reimbursement for payment of the
salary of a consultant (whether retained by the Federal Government or a
grantee) at more than the daily equivalent of the rate paid for level IV
of the Executive Schedule, unless specifically authorized by law.
Sec. 409. None of the funds provided in this Act shall be used to
pay the expenses of, or otherwise compensate, non-Federal parties
intervening in regulatory or adjudicatory proceedings. Nothing herein
affects the authority of the Consumer Product Safety Commission pursuant
to section 7 of the Consumer Product Safety Act (15 U.S.C. 2056 et
seq.).
Sec. 410. <<NOTE: Contracts. Public information. Records.>> Except
as otherwise provided under existing law or under an existing Executive
Order issued pursuant to an existing law, the obligation or expenditure
of any appropriation under this Act for contracts for any consulting
service shall be limited to contracts which are (1) a matter of public
record and available for public inspection, and (2) thereafter included
in a publicly available list of all contracts entered into within
twenty-four months prior to the date on which the list is made available
to the public and of all contracts on which performance has not been
completed by such date. The list required by the preceding sentence
shall be updated quarterly and shall include a narrative description of
the work to be performed under each such contract.
[[Page 110 STAT. 2922]]
Sec. 411. Except as otherwise provided by law, no part of any
appropriation contained in this Act shall be obligated or expended by
any executive agency, as referred to in the Office of Federal
Procurement Policy Act (41 U.S.C. 401 et seq.), for a contract for
services unless such executive agency (1) has awarded and entered into
such contract in full compliance with such Act and the regulations
promulgated thereunder, and (2) requires any report prepared pursuant to
such contract, including plans, evaluations, studies, analyses and
manuals, and any report prepared by the agency which is substantially
derived from or substantially includes any report prepared pursuant to
such contract, to contain information concerning (A) the contract
pursuant to which the report was prepared, and (B) the contractor who
prepared the report pursuant to such contract.
Sec. 412. Except as otherwise provided in section 406, none of the
funds provided in this Act to any department or agency shall be
obligated or expended to provide a personal cook, chauffeur, or other
personal servants to any officer or employee of such department or
agency.
Sec. 413. None of the funds provided in this Act to any department
or agency shall be obligated or expended to procure passenger
automobiles as defined in 15 U.S.C. 2001 with an EPA estimated miles per
gallon average of less than 22 miles per gallon.
Sec. 414. <<NOTE: Reports.>> None of the funds appropriated in
title I of this Act shall be used to enter into any new lease of real
property if the estimated annual rental is more than $300,000 unless the
Secretary submits, in writing, a report to the Committees on
Appropriations of the Congress and a period of 30 days has expired
following the date on which the report is received by the Committees on
Appropriations.
Sec. 415. (a) Purchase of American-Made Equipment and Products.--It
is the sense of the Congress that, to the greatest extent practicable,
all equipment and products purchased with funds made available in this
Act should be American-made.
(b) Notice Requirement.--In providing financial assistance to, or
entering into any contract with, any entity using funds made available
in this Act, the head of each Federal agency, to the greatest extent
practicable, shall provide to such entity a notice describing the
statement made in subsection (a) by the Congress.
Sec. 416. None of the funds appropriated in this Act may be used to
implement any cap on reimbursements to grantees for indirect costs,
except as published in Office of Management and Budget Circular A-21.
Sec. 417. Such sums as may be necessary for fiscal year 1997 pay
raises for programs funded by this Act shall be absorbed within the
levels appropriated in this Act.
Sec. 418. None of the funds made available in this Act may be used
for any program, project, or activity, when it is made known to the
Federal entity or official to which the funds are made available that
the program, project, or activity is not in compliance with any Federal
law relating to risk assessment, the protection of private property
rights, or unfunded mandates.
Sec. 419. <<NOTE: Government organization.>> Such funds as may be
necessary to carry out the orderly termination of the Office of Consumer
Affairs shall be made available from funds appropriated to the
Department of Health and Human Services for fiscal year 1997.
[[Page 110 STAT. 2923]]
Sec. 420. Corporations and agencies of the Department of Housing and
Urban Development which are subject to the Government Corporation
Control Act, as amended, are hereby authorized to make such
expenditures, within the limits of funds and borrowing authority
available to each such corporation or agency and in accord with law, and
to make such contracts and commitments without regard to fiscal year
limitations as provided by section 104 of the Act as may be necessary in
carrying out the programs set forth in the budget for 1997 for such
corporation or agency except as hereinafter provided: Provided, That
collections of these corporations and agencies may be used for new loan
or mortgage purchase commitments only to the extent expressly provided
for in this Act (unless such loans are in support of other forms of
assistance provided for in this or prior appropriations Acts), except
that this proviso shall not apply to the mortgage insurance or guaranty
operations of these corporations, or where loans or mortgage purchases
are necessary to protect the financial interest of the United States
Government.
Sec. 421. <<NOTE: 38 USC 1801 note.>> (a) The purpose of this
section is to provide for the special needs of certain children of
Vietnam veterans who were born with the birth defect spina bifida,
possibly as the result of the exposure of one or both parents to
herbicides during active service in the Republic of Vietnam during the
Vietnam era, through the provision of health care and monetary benefits.
(b)(1) Part II of title 38, United States Code, is amended by
inserting after chapter 17 the following new chapter:
``CHAPTER 18--BENEFITS FOR CHILDREN OF VIETNAM VETERANS WHO ARE BORN
WITH SPINA BIFIDA
``Sec.
``1801. Definitions.
``1802. Spina bifida conditions covered.
``1803. Health care.
``1804. Vocational training and rehabilitation.
``1805. Monetary allowance.
``1806. Effective date of awards.
``Sec. 1801. Definitions
``For the purposes of this chapter--
``(1) The term `child', with respect to a Vietnam veteran,
means a natural child of the Vietnam veteran, regardless of age
or marital status, who was conceived after the date on which the
veteran first entered the Republic of Vietnam during the Vietnam
era.
``(2) The term `Vietnam veteran' means a veteran who
performed active military, naval, or air service in the Republic
of Vietnam during the Vietnam era.
``Sec. 1802. Spina bifida conditions covered
``This chapter applies with respect to all forms and manifestations
of spina bifida except spina bifida occulta.
``Sec. 1803. Health care
``(a) In accordance with regulations <<NOTE: Regulations.>> which
the Secretary shall prescribe, the Secretary shall provide a child of a
Vietnam veteran who is suffering from spina bifida with such health care
as the Secretary determines is needed by the child for the spina bifida
or any disability that is associated with such condition.
[[Page 110 STAT. 2924]]
``(b) The Secretary may provide health care under this section
directly or by contract or other arrangement with any health care
provider.
``(c) For the purposes of this section--
``(1) The term `health care'--
``(A) means home care, hospital care, nursing home
care, outpatient care, preventive care, habilitative and
rehabilitative care, case management, and respite care;
and
``(B) includes--
``(i) the training of appropriate members of a
child's family or household in the care of the
child; and
``(ii) the provision of such pharmaceuticals,
supplies, equipment, devices, appliances,
assistive technology, direct transportation costs
to and from approved sources of health care, and
other materials as the Secretary determines
necessary.
``(2) The term `health care provider' includes specialized
spina bifida clinics, health care plans, insurers,
organizations, institutions, and any other entity or individual
who furnishes health care that the Secretary determines
authorized under this section.
``(3) The term `home care' means outpatient care,
habilitative and rehabilitative care, preventive health
services, and health-related services furnished to an individual
in the individual's home or other place of residence.
``(4) The term `hospital care' means care and treatment for
a disability furnished to an individual who has been
admitted to a hospital as a patient.
``(5) The term `nursing home care' means care and treatment
for a disability furnished to an individual who has been
admitted to a nursing home as a resident.
``(6) The term `outpatient care' means care and treatment of
a disability, and preventive health services, furnished to an
individual other than hospital care or nursing home care.
``(7) The term `preventive care' means care and treatment
furnished to prevent disability or illness, including periodic
examinations, immunizations, patient health education, and such
other services as the Secretary determines necessary to provide
effective and economical preventive health care.
``(8) The term `habilitative and rehabilitative care' means
such professional, counseling, and guidance services and
treatment programs (other than vocational training under section
1804 of this title) as are necessary to develop, maintain, or
restore, to the maximum extent practicable, the functioning of a
disabled person.
``(9) The term `respite care' means care furnished on an
intermittent basis for a limited period to an individual who
resides primarily in a private residence when such care will
help the individual to continue residing in such private
residence.
``Sec. 1804. Vocational training and rehabilitation
``(a) Pursuant to such regulations as the Secretary may prescribe,
the Secretary may provide vocational training under this section to a
child of a Vietnam veteran who is suffering from
[[Page 110 STAT. 2925]]
spina bifida if the Secretary determines that the achievement of a
vocational goal by such child is reasonably feasible.
``(b) Any program of vocational training for a child under this
section shall be designed in consultation with the child in order to
meet the child's individual needs and shall be set forth in an
individualized written plan of vocational rehabilitation.
``(c)(1) A vocational training program for a child under this
section--
``(A) shall consist of such vocationally oriented services
and assistance, including such placement and post-placement
services and personal and work adjustment training, as the
Secretary determines are necessary to enable the child to
prepare for and participate in vocational training or
employment; and
``(B) may include a program of education at an institution
of higher education if the Secretary determines that the program
of education is predominantly vocational in content.
``(2) A vocational training program under this subsection may not
include the provision of any loan or subsistence allowance or any
automobile adaptive equipment.
``(d)(1) Except as provided in paragraph (2) and subject to
subsection (e)(2), a vocational training program under this section may
not exceed 24 months.
``(2) The Secretary may grant an extension of a vocational training
program for a child under this section for up to 24 additional months if
the Secretary determines that the extension is necessary in order for
the child to achieve a vocational goal identified (before the end of the
first 24 months of such program) in the written plan of vocational
rehabilitation formulated for the child pursuant to subsection (b).
``(e)(1) A child who is pursuing a program of vocational training
under this section and is also eligible for assistance under a program
under chapter 35 of this title may not receive assistance under both
such programs concurrently. The child shall elect (in such form and
manner as the Secretary may prescribe) the program under which the child
is to receive assistance.
``(2) The aggregate period for which a child may receive assistance
under this section and chapter 35 of this title may not exceed 48 months
(or the part-time equivalent thereof).
``Sec. 1805. Monetary allowance
``(a) The Secretary shall pay a monthly allowance under this chapter
to any child of a Vietnam veteran for any disability resulting from
spina bifida suffered by such child.
``(b)(1) The amount of the allowance paid to a child under this
section shall be based on the degree of disability suffered by the
child, as determined in accordance with such schedule for rating
disabilities resulting from spina bifida as the Secretary may prescribe.
``(2) The Secretary shall, in prescribing the rating schedule for
the purposes of this section, establish three levels of disability upon
which the amount of the allowance provided by this section shall be
based.
``(3) The amounts of the allowance shall be $200 per month for the
lowest level of disability prescribed, $700 per month for the
intermediate level of disability prescribed, and $1,200 per month
[[Page 110 STAT. 2926]]
for the highest level of disability prescribed. Such amounts are subject
to adjustment under section 5312 of this title.
``(c) Notwithstanding any other provision of law, receipt by a child
of an allowance under this section shall not impair, infringe, or
otherwise affect the right of the child to receive any other benefit to
which the child may otherwise be entitled under any law administered by
the Secretary, nor shall receipt of such an allowance impair, infringe,
or otherwise affect the right of any individual to receive any benefit
to which the individual is entitled under any law administered by the
Secretary that is based on the child's relationship to the individual.
``(d) Notwithstanding any other provision of law, the allowance paid
to a child under this section shall not be considered income or
resources in determining eligibility for or the amount of benefits under
any Federal or federally assisted program.
``Sec. 1806. Effective date of awards
``The effective date for an award of benefits under this chapter
shall be fixed in accordance with the facts found, but shall not be
earlier than the date of receipt of application for the benefits.''.
(2) The tables of chapters before part I and at the beginning of
part II of such title are each amended by inserting after the item
referring to chapter 17 the following new item:
``18. Benefits for Children of Vietnam Veterans Who Are Born With
Spina Bifida.....................................................1801''.
(c) Section 5312 of title 38, United States Code, is amended--
(1) in subsection (a)--
(A) by striking out ``and the rate of increased
pension'' and inserting in lieu thereof ``, the rate of
increased pension''; and
(B) by inserting after ``on account of children,''
the following: ``and each rate of monthly allowance paid
under section 1805 of this title,''; and
(2) in subsection (c)(1), by striking out ``and 1542'' and
inserting in lieu thereof ``1542, and 1805''.
(d) <<NOTE: Effective date. 38 USC 1801 note.>> This section and
the amendments made by this section shall take effect on January 1,
1997.
Sec. 422. (a) Section 1151 of title 38, United States Code, is
amended--
(1) by striking out the first sentence and inserting in lieu
thereof the following:
``(a) Compensation under this chapter and dependency and indemnity
compensation under chapter 13 of this title shall be awarded for a
qualifying additional disability or a qualifying death of a veteran in
the same manner as if such additional disability or death were service-
connected. For purposes of this section, a disability or death is a
qualifying additional disability or qualifying death if the disability
or death was not the result of the veteran's willful misconduct and--
``(1) the disability or death was caused by hospital care,
medical or surgical treatment, or examination furnished the
veteran under any law administered by the Secretary, either by a
Department employee or in a Department facility as defined in
section 1701(3)(A) of this title, and the proximate cause of the
disability or death was--
``(A) carelessness, negligence, lack of proper
skill, error in judgment, or similar instance of fault
on the part of
[[Page 110 STAT. 2927]]
the Department in furnishing the hospital care, medical
or surgical treatment, or examination; or
``(B) an event not reasonably foreseeable; or
``(2) the disability or death was proximately caused by the
provision of training and rehabilitation services by the
Secretary (including by a service-provider used by the Secretary
for such purpose under section 3115 of this title) as part of an
approved rehabilitation program under chapter 31 of this
title.''; and
(2) in the second sentence--
(A) by redesignating that sentence as subsection
(b);
(B) by striking out ``, aggravation,'' both places
it appears; and
(C) by striking out ``sentence'' and substituting in
lieu thereof ``subsection''.
(b)(1) <<NOTE: Effective date. 38 USC 1151 note.>> The amendments
made by subsection (a) <<NOTE: 38 USC 1151 note.>> shall take effect on
October 1, 1996.
(2) Section 1151 of title 38, United States Code (as amended by
subsection (a)), shall govern all administrative and judicial
determinations of eligibility for benefits under such section that are
made with respect to claims filed on or after the effective date set
forth in paragraph (1), including those based on original applications
and applications seeking to reopen, revise, reconsider, or otherwise
readjudicate on any basis claims for benefits under such section 1151 or
any provision of law that is a predecessor of such section.
(c) Nothwithstanding subsection (b)(1), section 421(d), <<NOTE: 38
USC 1151 note.>> or any other provision of this Act, section 421 and
this section shall not take effect until October 1, 1997, unless
legislation other than this Act is enacted to provide for an earlier
effective date.
Sec. 423. The amount provided in title I for ``Veterans Health
Administration--Medical Care'' is hereby increased by $5,000,000.
Sec. 424. FHA Mortgage Insurance Premiums.--Section 203(c)(2)(A) of
the National Housing Act (12 U.S.C. 1709(c)(2)(A)) is amended by
inserting after the first sentence the following new sentence: ``In the
case of a mortgage for which the mortgagor is a first-time homebuyer who
completes a program of counseling with respect to the responsibilities
and financial management involved in homeownership that is approved by
the Secretary, the premium payment under this subparagraph shall not
exceed 2.0 percent of the amount of the original insured principal
obligation of the mortgage.''.
Sec. 425. (a) Authority To Use Amounts Borrowed From Family Members
for Downpayments on FHA-Insured Loans.--Section 203(b)(9) of the
National Housing Act (12 U.S.C. 1709(b)(9)) is amended by inserting
before the period at the end the following: ``: Provided further, That
for purposes of this paragraph, the Secretary shall consider as cash or
its equivalent any amounts borrowed from a family member (as such term
is defined in section 201), subject only to the requirements that, in
any case in which the repayment of such borrowed amounts is secured by a
lien against the property, such lien shall be subordinate to the
mortgage and the sum of the principal obligation of the mortgage and the
obligation secured by such lien may not exceed 100 percent of the
appraised value of the property plus any initial service charges,
appraisal, inspection, and other fees in connection with the mortgage''.
[[Page 110 STAT. 2928]]
(b) Definition of Family Member.--Section 201 of the National
Housing Act (12 U.S.C. 1707) is amended by adding at the end the
following new subsections:
``(e) The term `family member' means, with respect to a mortgagor
under such section, a child, parent, or grandparent of the mortgagor (or
the mortgagor's spouse). In determining whether any of the relationships
referred to in the preceding sentence exist, a legally adopted son or
daughter of an individual (and a child who is a member of an
individual's household, if placed with such individual by an authorized
placement agency for legal adoption by such individual), and a foster
child of an individual, shall be treated as a child of such individual
by blood.
``(f) The term `child' means, with respect to a mortgagor under such
section, a son, stepson, daughter, or stepdaughter of such mortgagor.''.
Sec. 426. Calculation of Downpayment.--Section 203(b) of the
National Housing Act (12 U.S.C. 1709(b)) is amended by adding at the end
the following new paragraph:
``(10) Alaska and hawaii.--
``(A) In general.--Notwithstanding any other
provision of this subsection, with respect to a mortgage
originated in the State of Alaska or the State of Hawaii
and endorsed for insurance in fiscal year 1997,
involving a principal obligation not in excess of the
sum of--
``(i) the amount of the mortgage insurance
premium paid at the time the mortgage is insured;
and
``(ii)(I) in the case of a mortgage for a
property with an appraised value equal to or less
than $50,000, 98.75 percent of the appraised value
of the property;
``(II) in the case of a mortgage for a
property with an appraised value in excess of
$50,000 but not in excess of $125,000, 97.65
percent of the appraised value of the property;
``(III) in the case of a mortgage for a
property with an appraised value in excess of
$125,000, 97.15 percent of the appraised value of
the property; or
``(IV) notwithstanding subclauses (II) and
(III), in the case of a mortgage for a property
with an appraised value in excess of $50,000 that
is located in an area of the State for which the
average closing cost exceeds 2.10 percent of the
average, for the State, of the sale price of
properties located in the State for which
mortgages have been executed, 97.75 percent of the
appraised value of the property.
``(B) Average closing cost.--For purposes of this
paragraph, the term `average closing cost' means, with
respect to a State, the average, for mortgages executed
for properties that are located within the State, of the
total amounts (as determined by the Secretary) of
initial service charges, appraisal, inspection, and
other fees (as the Secretary shall approve) that are
paid in connection with such mortgages.''.
Sec. 427. Delegation of Single Family Mortgage Insuring Authority to
Direct Endorsement Mortgagees.--Title II of the National Housing Act (12
U.S.C. 1707 et seq.) is amended by adding at the end the following new
section:
[[Page 110 STAT. 2929]]
``delegation of insuring authority to direct endorsement mortgagees
``Sec. 256.(a) <<NOTE: 12 USC 1715z-21.>> Authority.--The Secretary
may delegate, to one or more mortgagees approved by the Secretary under
the direct endorsement program, the authority of the Secretary under
this Act to insure mortgages involving property upon which there is
located a dwelling designed principally for occupancy by 1 to 4
families.
``(b) Considerations.--In determining whether to delegate authority
to a mortgagee under this section, the Secretary shall consider the
experience and performance of the mortgagee compared to the default rate
of all insured mortgages in comparable markets, and such other factors
as the Secretary determines appropriate to minimize risk of loss to the
insurance funds under this Act.
``(c) Enforcement of Insurance Requirements.--
``(1) In general.--If the Secretary determines that a
mortgage insured by a mortgagee pursuant to delegation of
authority under this section was not originated in accordance
with the requirements established by the Secretary, and the
Secretary pays an insurance claim with respect to the mortgage
within a reasonable period specified by the Secretary, the
Secretary may require the mortgagee approved under this section
to indemnify the Secretary for the loss.
``(2) Fraud or misrepresentation.--If fraud or
misrepresentation was involved in connection with the
origination, the Secretary may require the mortgagee approved
under this section to indemnify the Secretary for the loss
regardless of when an insurance claim is paid.
``(d) Termination of Mortgagee's Authority.--If a mortgagee to which
the Secretary has made a delegation under this section violates the
requirements and procedures established by the Secretary or the
Secretary determines that other good cause exists, the Secretary may
cancel a delegation of authority under this section to the mortgagee by
giving notice to the mortgagee. Such a cancellation shall be effective
upon receipt of the notice by the mortgagee or at a later date specified
by the Secretary. A decision by the Secretary to cancel a delegation
shall be final and conclusive and shall not be subject to judicial
review.
``(e) <<NOTE: Regulations.>> Requirements and Procedures.--Before
approving a delegation under this section, the Secretary shall issue
regulations establishing appropriate requirements and procedures,
including requirements and procedures governing the indemnification of
the Secretary by the mortgagee.''.
Sec. 428. Implementation of Comprehensive Conservation and
Management Plans.--Notwithstanding section 320(g) of the Federal Water
Pollution Control Act (33 U.S.C. 1330(g)), funds made available pursuant
to authorization under such section for fiscal year 1997 and prior
fiscal years may be used for implementing comprehensive conservation and
management plans.
Sec. 429. (a) Plan.--(1) The Secretary of Veterans Affairs shall
develop a plan for the allocation of health care resources (including
personnel and funds) of the Department of Veterans Affairs among the
health care Networks of the Department so as to ensure that veterans who
have similar economic status and eligibility priority and who are
eligible for medical care have similar
[[Page 110 STAT. 2930]]
access to such care regardless of the region of the United States in
which such veterans reside.
(2) The plan shall--
(A) reflect, to the maximum extent possible, the Veterans
Integrated Service Network developed by the Department to
account for forecasts in expected workload and to ensure
fairness to facilities that provide cost-efficient health care;
and
(B) include--
(i) procedures to identify reasons for variations in
operating costs among similar facilities where Network
allocations are based on similar unit costs for similar
services and workload;
(ii) ways to improve the allocation of resources so
as to promote efficient use of resources and provision
of quality health care;
(iii) adjustments to unit costs in subsection (a) to
reflect factors which directly influence the cost of
health care delivery within each Network and where such
factors are not under the control of Network or
Department management; and
(iv) include forecasts in expected workload and
consideration of the demand for Veterans Administration
health care that may not be reflected in current
workload projections.
(3) The Secretary shall prepare the plan in consultation with the
Under Secretary of Health of the Department of Veterans Affairs.
(b) Plan Elements.--The plan under subsection (a) shall
set forth--
(1) milestones for achieving the goal referred to in
paragraph (1) of that subsection; and
(2) a means of evaluating the success of the Secretary in
meeting the goal.
(c) Submittal to Congress.--The Secretary shall submit to Congress
the plan developed under subsection (a) not later than 180 days after
the date of the enactment of this Act.
(d) <<NOTE: Notification.>> Implementation.--The Secretary shall
implement the plan developed under subsection (a) not later than 60 days
after submitting the plan to Congress under subsection (c), unless
within that time the Secretary notifies Congress that the plan will not
be implemented in that time and includes with the notification an
explanation why the plan will not be implemented in that time.
Sec. 430. GAO Audit on Staffing and Contracting.--The Comptroller
General shall audit the operations of the Office of Federal Housing
Enterprise Oversight concerning staff organization, expertise, capacity,
and contracting authority to ensure that the office resources and
contract authority are adequate and that they are being used
appropriately to ensure that the Federal National Mortgage Association
and the Federal Home Loan Mortgage Corporation are adequately
capitalized and operating safely.
Sec. 431. None of the funds appropriated or otherwise made available
to the National Aeronautics and Space Administration by this Act, or any
other Act enacted before the date of enactment of this Act, may be used
by the Administrator of the National Aeronautics and Space
Administration to relocate aircraft of the National Aeronautics and
Space Administration based east of the
[[Page 110 STAT. 2931]]
Mississippi River to the Dryden Flight Research Center in
California for the purpose of the consolidation of such aircraft.
Sec. 432. <<NOTE: National Aeronautics and Space Administration
Federal Employment Reduction Assistance Act of 1996. 5 USC 5597 note.>>
To Promote and Support Management
Reorganization of the National Aeronautics and Space Administration.--
(a) Short Title.--This section may be cited as the ``National
Aeronautics and Space Administration Federal Employment Reduction
Assistance Act of 1996.''.
(b) Definitions.--For the purpose of this section--
(1) the term ``Administrator'' means the Administrator of
the National Aeronautics and Space Administration; and
(2) the term ``employee'' means an employee of the National
Aeronautics and Space Administration serving under an
appointment without time limitation, who has been currently
employed with NASA for a continuous period of at least twelve
months, except that such term 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;
(B) an employee who is in receipt of a specific
notice of involuntary separation for misconduct or
unacceptable performance;
(C) an employee who, upon completing an additional
period of service as referred to in section
3(b)(2)(B)(ii) of the Federal Workforce Restructuring
Act of 1994 (Public Law 103-226; 108 Stat. 111), would
qualify for a voluntary separation incentive payment
under section 3 of such
Act; or
(D) an employee who has previously received any
voluntary separation incentive payment by the Federal
Government under this Act or any other authority and has
not repaid such payment.
(c) Incentive Payment Program.--In order to avoid or minimize the
need for involuntary separations due to a reduction in force,
installation closure, reorganization, transfer of function, or other
similar action affecting the National Aeronautics and Space
Administration, the Administrator shall establish a program under which
separation pay, subject to the availability of appropriated funds, may
be offered to encourage eligible employees to separate from service
voluntarily (whether by retirement or resignation).
(d) Incentive Payments.--In order to receive a voluntary separation
incentive payment, an employee must separate voluntarily (whether by
retirement or resignation) during the period of time for which the
payment of incentives has been authorized for the employee under the
agency plan. Such separation payments--
(1) shall be paid in a lump sum after the employee's
separation, and
(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) an amount that shall not exceed $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;
[[Page 110 STAT. 2932]]
(4) shall not be taken into account for purposes of
determining the amount of any severance pay to which an
individual may be entitled under section 5595 of title 5, United
States Code, based on any other separation;
(5) shall be considered payment for a voluntary separa-
tion; and
(6) shall be paid from the appropriations or funds available
for payment of the basic pay of the employee.
(e) Effect of Subsequent Employment With the
Government.--
(1) An individual who has received a voluntary separation
incentive payment under this section and accepts any employment
with the Government of the United States within five years after
the date of the separation on which the payment is based shall
be required to repay, prior to the individual's first day of
employment, the entire amount of the incentive payment to NASA.
(2) If the employment under paragraph (1) above is with an
executive agency (as defined by section 105 of title 5, United
States Code), the United States Postal Service, or the Postal
Rate Commission, the Director of the Office of Personnel
Management may, at the request of the head of the agency, waive
the repayment if the individual involved possesses unique
abilities and is the only qualified applicant available for the
position.
(3) If the employment under paragraph (1) above is with an
entity in the legislative branch, the head of the entity or the
appointing official may waive the repayment if the individual
involved possesses unique abilities and is the only qualified
applicant available for the position.
(4) If the employment under paragraph (1) above is with the
judicial branch, the Director of the Administrative Office of
the United States Courts may waive the repayment if the
individual involved possesses unique abilities and is the only
qualified applicant available for the position.
(5) For the purpose of this section, the term
``employment''--
(A) includes employment of any length or under any
type of appointment, but does not include employment
that is without compensation; and
(B) includes employment under a personal services
contract.
(f) Effect of Subsequent Disability Retirement.--An employee who has
received an incentive payment is ineligible to receive an annuity for
reasons of disability under applicable regulations, unless the incentive
payment is repaid.
(g) Additional Agency Contributions to the Retirement Fund.--
(1) In addition to any other payments which it is required
to make under subchapter III of chapter 83 or chapter 84 of
title 5, United States Code, NASA shall remit to the Office of
Personnel Management for deposit in the Treasury of the United
States to the credit of the Civil Service Retirement and
Disability Fund an amount equal to 15 percent of the final basic
pay of each employee who is covered under subchapter III of
chapter 83 or chapter 84 of title 5 to whom a voluntary
separation incentive has been paid under this Act.
[[Page 110 STAT. 2933]]
(2) For the purpose of this section, 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.
(h) Reduction of Agency Employment Levels.--
(1) Total full-time-equivalent employment in NASA shall be
reduced by one for each separation of an employee who receives a
voluntary separation incentive payment under this Act. The
reduction will be calculated by comparing the agency's full-
time-equivalent employment for the fiscal year in which the
voluntary separation payments are made with the authorized full-
time-equivalent employment for the prior fiscal year.
(2) The Office of Management and Budget shall monitor and
take appropriate action necessary to ensure that the
requirements of this section are met.
(3) <<NOTE: President.>> The President shall take
appropriate action to ensure that functions involving more than
10 full time equivalent employees are not converted to contracts
by reason of the enactment of this section, except in cases in
which a cost comparison demonstrates such contracts would be to
the advantage of the Government.
(4) The provisions of subsections (1) and (3) of this
section may be waived upon a determination by the President
that--
(A) the existence of a state of war or other
national emergency so requires; or
(B) the existence of an extraordinary emergency
which threatens life, health, safety, property, or the
environment so requires.
(i) Reports.--No later than March 31 of each fiscal year, NASA shall
submit to the Office of Personnel Management, who will subsequently
report to the Committee on Governmental Affairs of the Senate and the
Committee on Government Reform and Oversight of the House of
Representatives a report which, with respect to the preceding fiscal
year, shall include--
(1) the number of employees who received voluntary
separation incentives;
(2) the average amount of such incentives; and
(3) the average grade or pay level of the employees who
received incentives.
(j) Effective Date.--
(1) The provisions of this section shall take effect on the
date of enactment of this Act.
(2) No voluntary separation incentive under this section may
be paid based on the separation of an employee after September
30, 2000.
Sec. 433. (a) Subject to the concurrence of the Administrator of the
General Services Administration (GSA) and notwithstanding section 707 of
Public Law 103-433, the Administrator of the National Aeronautics and
Space Administration may convey to the city of Downey, California, all
right, title, and interest of the United States in and to a parcel of
real property, including improvements thereon, consisting of
approximately 60 acres and known as Parcels III, IV, V, and VI of the
NASA Industrial Plant, Downey, California.
(b)(1) Delay in Payment of Consideration.--After the end of the 20-
year period beginning on the date on which the conveyance
[[Page 110 STAT. 2934]]
under subsection (a) is completed, the City of Downey shall pay to the
United States an amount equal to fair market value of the conveyed
property as of the date of the Federal conveyance.
(2) Effect of Reconveyance by the City.--If the City of Downey
reconveys all or any part of the conveyed property during such 20-year
period, the City shall pay to the United States an amount equal to the
fair market value of the reconveyed property as of the time of the
reconveyance, excluding the value of any improvements made to the
property by the City.
(3) Determination of Fair Market Value.--The Administrator of GSA
shall determine fair market value in accordance with Federal appraisal
standards and procedures.
(4) Treatment of Leases.--The Administrator of GSA may treat a lease
of the property within such 20-year period as a reconveyance if the
Administrator determines that the lease is being used to avoid
application of paragraph (b)(2).
(5) Deposit of Proceeds.--The Administrator of GSA shall deposit any
proceeds received under this subsection in the special account
established pursuant to section 204(h)(2) of the Federal Property and
Administrative Services Act of 1949 (40 U.S.C. 485(h)(2)).
(c) The exact acreage and legal description of the real property to
be conveyed under subsection (a) shall be determined by
a survey satisfactory to the Administrator of GSA. The cost of the
survey shall be borne by the City of Downey, California.
(d) The Administrator of GSA may require such additional terms and
conditions in connection with the conveyance under subsection (a) as the
Administrator of GSA considers appropriate to protect the interests of
the United States.
(e) If the City at any time after the conveyance of the property
under subsection (a) notifies the Administrator of GSA that the City no
longer wishes to retain the property, it may convey the property under
the terms of subsection (b), or, it may revert all right, title, and
interest in and to the property (including any facilities, equipment, or
fixtures conveyed, but excluding the value of any improvements made to
the property by the City) to the United States, and the United States
shall have the right of immediate entry onto the property.
TITLE V--SUPPLEMENTAL
DEPARTMENT OF VETERANS AFFAIRS
Veterans Benefits Administration
compensation and pensions
For an additional amount for ``Compensation and Pensions'',
$100,000,000, to be made available upon enactment of this Act, to remain
available until expended.
[[Page 110 STAT. 2935]]
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Government National Mortgage Association
guarantees of mortgage backed securities loan guarantee program account
During fiscal year 1996 and in addition to commitments previously
provided, additional commitments to issue guarantees to carry out
section 306 of the National Housing Act, as amended (12 U.S.C. 1721(g)),
shall not exceed $20,000,000,000.
TITLE <<NOTE: Newborns' and Mothers' Health Protection Act of 1996.>>
VI--NEWBORNS' AND MOTHERS' HEALTH PROTECTION ACT OF 1996
Sec. 601. <<NOTE: 42 USC 201 note.>> Short Title.--This title may
be cited as the ``Newborns' and Mothers' Health Protection Act of
1996''.
Sec. 602. <<NOTE: 42 USC 300gg-4 note.>> Findings.--Congress finds
that--
(1) the length of post-delivery hospital stay should be
based on the unique characteristics of each mother and her
newborn child, taking into consideration the health of the
mother, the health and stability of the newborn, the ability and
confidence of the mother and the father to care for their
newborn, the adequacy of support systems at home, and the access
of the mother and her newborn to appropriate follow-up health
care; and
(2) the timing of the discharge of a mother and her newborn
child from the hospital should be made by the attending provider
in consultation with the mother.
Sec. 603. Amendments to the Employee Retirement Income Security Act
of 1974.--(a) In General.--Part 7 of subtitle B of title I of the
Employee Retirement Income Security Act of 1974 (added by section 101(a)
of the Health Insurance Portability and Accountability Act of
1996) <<NOTE: Ante, p. 1939.>> is amended--
(1) by amending the heading of the part to read as follows:
``Part 7--Group Health Plan Requirements'';
(2) by inserting after the part heading the following:
``Subpart A--Requirements Relating to Portability, Access, and
Renewability'';
(3) by redesignating <<NOTE: 29 USC 1191-1191c.>> sections
704 through 707 as sections 731 through 734, respectively;
(4) by inserting before section 731 (as so redesignated) the
following new heading:
``Subpart C--General Provisions'';
and
(5) by inserting after section 703 the following new
subpart:
``Subpart B--Other Requirements
``SEC. 711. <<NOTE: 29 USC 1185.>> STANDARDS RELATING TO BENEFITS FOR
MOTHERS AND NEWBORNS.
``(a) Requirements for Minimum Hospital Stay Following Birth.--
[[Page 110 STAT. 2936]]
``(1) In general.--A group health plan, and a health
insurance issuer offering group health insurance coverage, may
not--
``(A) except as provided in paragraph (2)--
``(i) restrict benefits for any hospital
length of stay in connection with childbirth for
the mother or newborn child, following a normal
vaginal delivery, to less than 48 hours, or
``(ii) restrict benefits for any hospital
length of stay in connection with childbirth for
the mother or newborn child, following a cesarean
section, to less than 96 hours; or
``(B) require that a provider obtain authorization
from the plan or the issuer for prescribing any length
of stay required under subparagraph (A) (without regard
to paragraph (2)).
``(2) Exception.--Paragraph (1)(A) shall not apply in
connection with any group health plan or health insurance issuer
in any case in which the decision to discharge the mother or her
newborn child prior to the expiration of the minimum length of
stay otherwise required under paragraph (1)(A) is made by an
attending provider in consultation with the mother.
``(b) Prohibitions.--A group health plan, and a health insurance
issuer offering group health insurance coverage in connection with a
group health plan, may not--
``(1) deny to the mother or her newborn child eligibility,
or continued eligibility, to enroll or to renew coverage under
the terms of the plan, solely for the purpose of avoiding the
requirements of this section;
``(2) provide monetary payments or rebates to mothers to
encourage such mothers to accept less than the minimum
protections available under this section;
``(3) penalize or otherwise reduce or limit the
reimbursement of an attending provider because such provider
provided care to an individual participant or beneficiary in
accordance with this section;
``(4) provide incentives (monetary or otherwise) to an
attending provider to induce such provider to provide care to an
individual participant or beneficiary in a manner inconsistent
with this section; or
``(5) subject to subsection (c)(3), restrict benefits for
any portion of a period within a hospital length of stay
required under subsection (a) in a manner which is less
favorable than the benefits provided for any preceding portion
of such stay.
``(c) Rules of Construction.--
``(1) Nothing in this section shall be construed to require
a mother who is a participant or beneficiary--
``(A) to give birth in a hospital; or
``(B) to stay in the hospital for a fixed period of
time following the birth of her child.
``(2) This section shall not apply with respect to any group
health plan, or any group health insurance coverage offered by a
health insurance issuer, which does not provide benefits for
hospital lengths of stay in connection with childbirth for a
mother or her newborn child.
``(3) Nothing in this section shall be construed as
preventing a group health plan or issuer from imposing
deductibles, coinsurance, or other cost-sharing in relation to
benefits for
[[Page 110 STAT. 2937]]
hospital lengths of stay in connection with childbirth for a
mother or newborn child under the plan (or under health
insurance coverage offered in connection with a group health
plan), except that such coinsurance or other cost-sharing for
any portion of a period within a hospital length of stay
required under subsection (a) may not be greater than such
coinsurance or cost-sharing for any preceding portion of such
stay.
``(d) Notice Under Group Health Plan.--The imposition of the
requirements of this section shall be treated as a material modification
in the terms of the plan described in section 102(a)(1), for purposes of
assuring notice of such requirements under the plan; except that the
summary description required to be provided under the last sentence of
section 104(b)(1) with respect to such modification shall be provided by
not later than 60 days after the first day of the first plan year in
which such requirements apply.
``(e) Level and Type of Reimbursements.--Nothing in this section
shall be construed to prevent a group health plan or a health insurance
issuer offering group health insurance coverage from negotiating the
level and type of reimbursement with a provider for care provided in
accordance with this section.
``(f) Preemption; Exception for Health Insurance Coverage in Certain
States.--
``(1) In general.--The requirements of this section shall
not apply with respect to health insurance coverage if there is
a State law (as defined in section 731(d)(1)) for a State that
regulates such coverage that is described in any of the
following subparagraphs:
``(A) Such State law requires such coverage to
provide for at least a 48-hour hospital length of stay
following a normal vaginal delivery and at least a 96-
hour hospital length of stay following a cesarean
section.
``(B) Such State law requires such coverage to
provide for maternity and pediatric care in accordance
with guidelines established by the American College of
Obstetricians and Gynecologists, the American Academy of
Pediatrics, or other established professional medical
associations.
``(C) Such State law requires, in connection with
such coverage for maternity care, that the hospital
length of stay for such care is left to the decision of
(or required to be made by) the attending provider in
consultation with the mother.
``(2) Construction.--Section 731(a)(1) shall not be
construed as superseding a State law described in paragraph
(1).''.
(b) Conforming Amendments.--
(1) Section 731(c) of such Act (as added by section 101 of
the Health Insurance Portability and Accountability Act of 1996
and redesignated by the preceding provisions of this section)
is <<NOTE: 29 USC 1191.>> amended by striking ``Nothing'' and
inserting ``Except as provided in section 711, nothing''.
(2) Section 732(a) of such Act (as added by section 101 of
the Health Insurance Portability and Accountability Act of 1996
and redesignated by the preceding provisions of this section)
is <<NOTE: 29 USC 1191a.>> amended by inserting ``(other than
section 711)'' after ``part''.
(3) Title I of such Act (as amended by section 101 of the
Health Insurance Portability and Accountability Act of 1996
[[Page 110 STAT. 2938]]
and the preceding provisions of this section) is further
amended--
(A) in the last sentence of section 4(b) <<NOTE: 29
USC 1003.>> , by striking ``section 706(b)(2)'',
``section 706(b)(1)'', and ``section 706(a)(1)'' and
inserting ``section 733(b)(2)'', ``section 733(b)(1)'',
and ``section 733(a)(1)'', respectively;
(B) in section 101(g), <<NOTE: 29 USC 1021.>> by
striking ``section 706(a)(2)'' and inserting ``section
733(a)(2)'';
(C) in section 102(b), <<NOTE: 29 USC 1022.>> by
striking ``section 706(a)(1)'' each place it appears and
inserting ``section 733(a)(1), and by striking ``section
706(b)(2)'' and inserting ``section 733(b)(2)'';
(D) in section 104(b)(1), <<NOTE: 29 USC 1024.>> by
striking ``section 706(a)(1)'' each place it appears and
inserting ``section 733(a)(1)'';
(E) in section 502(b)(3), <<NOTE: 29 USC 1132.>> by
striking ``section 706(a)(1)'' and inserting ``section
733(a)(1)'';
(F) in section 506(c), <<NOTE: 29 USC 1136.>> by
striking ``section 706(a)(2)'' and inserting ``section
733(a)(2)'';
(G) in section 514(b)(9), <<NOTE: 29 USC 1144.>> by
striking ``section 704'' and inserting ``section 731'';
(H) in the last sentence of section
701(c)(1), <<NOTE: 29 USC 1181.>> by striking ``section
706(c)'' and inserting ``section 733(c)'';
(I) in section 732(b), <<NOTE: 29 USC 1191a.>> by
striking ``section 706(c)(1)'' and inserting ``section
733(c)(1)'';
(J) in section 732(c)(1), by striking ``section
706(c)(2)'' and inserting ``section 733(c)(2)'';
(K) in section 732(c)(2), by striking ``section
706(c)(3)'' and inserting ``section 733(c)(3)''; and
(L) in section 732(c)(3), by striking ``section
706(c)(4)'' and inserting ``section 733(c)(4)''.
(4) The table of contents in section 1 of such Act is
amended by striking the items relating to part 7 and inserting
the following:
``Part 7--Group Health Plan Requirements
``Subpart A--Requirements Relating to Portability, Access, and
Renewability
``Sec. 701. Increased portability through limitation on preexisting
condition exclusions.
``Sec. 702. Prohibiting discrimination against individual participants
and beneficiaries based on health status.
``Sec. 703. Guaranteed renewability in multiemployer plans and multiple
employer welfare arrangements.
``Subpart B--Other Requirements
``Sec. 711. Standards relating to benefits for mothers and newborns.
``Subpart C--General Provisions
``Sec. 731. Preemption; State flexibility; construction.
``Sec. 732. Special rules relating to group health plans.
``Sec. 733. Definitions.
``Sec. 734. Regulations.''.
(c) <<NOTE: Applicability.>> Effective Date.--The amendments made
by this section shall apply with respect to group health plans for plan
years beginning on or after January 1, 1998.
Sec. 604. Amendments to the Public Health Service Act Relating to
the Group Market.--(a) In General.--Title XXVII of the Public Health
Service Act (as added by section 102 of the Health Insurance Portability
and Accountability Act of 1996) <<NOTE: Ante, p. 1955.>> is amended--
[[Page 110 STAT. 2939]]
(1) by amending the title heading to read as follows:
``TITLE XXVII--REQUIREMENTS RELATING TO HEALTH INSURANCE COVERAGE'';
(2) by redesignating subparts 2 and 3 of part A as subparts
3 and 4 of such part;
(3) by inserting after subpart 1 of part A the following new
subpart:
``Subpart 2--Other Requirements
``SEC. 2704. <<NOTE: 42 USC 300gg-4.>> STANDARDS RELATING TO BENEFITS
FOR MOTHERS AND NEWBORNS.
``(a) Requirements for Minimum Hospital Stay Following Birth.--
``(1) In general.--A group health plan, and a health
insurance issuer offering group health insurance coverage, may
not--
``(A) except as provided in paragraph (2)--
``(i) restrict benefits for any hospital
length of stay in connection with childbirth for
the mother or newborn child, following a normal
vaginal delivery, to less than 48 hours, or
``(ii) restrict benefits for any hospital
length of stay in connection with childbirth for
the mother or newborn child, following a cesarean
section, to less than 96 hours, or
``(B) require that a provider obtain authorization
from the plan or the issuer for prescribing any length
of stay required under subparagraph (A) (without regard
to paragraph (2)).
``(2) Exception.--Paragraph (1)(A) shall not apply in
connection with any group health plan or health insurance issuer
in any case in which the decision to discharge the mother or her
newborn child prior to the expiration of the minimum length of
stay otherwise required under paragraph (1)(A) is made by an
attending provider in consultation with the mother.
``(b) Prohibitions.--A group health plan, and a health insurance
issuer offering group health insurance coverage in connection with a
group health plan, may not--
``(1) deny to the mother or her newborn child eligibility,
or continued eligibility, to enroll or to renew coverage under
the terms of the plan, solely for the purpose of avoiding the
requirements of this section;
``(2) provide monetary payments or rebates to mothers to
encourage such mothers to accept less than the minimum
protections available under this section;
``(3) penalize or otherwise reduce or limit the
reimbursement of an attending provider because such provider
provided care to an individual participant or beneficiary in
accordance with this section;
``(4) provide incentives (monetary or otherwise) to an
attending provider to induce such provider to provide care to an
individual participant or beneficiary in a manner inconsistent
with this section; or
``(5) subject to subsection (c)(3), restrict benefits for
any portion of a period within a hospital length of stay
required
[[Page 110 STAT. 2940]]
under subsection (a) in a manner which is less favorable than
the benefits provided for any preceding portion of such stay.
``(c) Rules of Construction.--
``(1) Nothing in this section shall be construed to require
a mother who is a participant or beneficiary--
``(A) to give birth in a hospital; or
``(B) to stay in the hospital for a fixed period of
time following the birth of her child.
``(2) This section shall not apply with respect to any group
health plan, or any group health insurance coverage offered by a
health insurance issuer, which does not provide benefits for
hospital lengths of stay in connection with childbirth for a
mother or her newborn child.
``(3) Nothing in this section shall be construed as
preventing a group health plan or issuer from imposing
deductibles, coinsurance, or other cost-sharing in relation to
benefits for hospital lengths of stay in connection with
childbirth for a mother or newborn child under the plan (or
under health insurance coverage offered in connection with a
group health plan), except that such coinsurance or other cost-
sharing for any portion of a period within a hospital length of
stay required under subsection (a) may not be greater than such
coinsurance or cost-sharing for any preceding portion of such
stay.
``(d) Notice.--A group health plan under this part shall comply with
the notice requirement under section 711(d) of the Employee Retirement
Income Security Act of 1974 with respect to the requirements of this
section as if such section applied to such plan.
``(e) Level and Type of Reimbursements.--Nothing in this section
shall be construed to prevent a group health plan or a health insurance
issuer offering group health insurance coverage from negotiating the
level and type of reimbursement with a provider for care provided in
accordance with this section.
``(f) Preemption; Exception for Health Insurance Coverage in Certain
States.--
``(1) In general.--The requirements of this section shall
not apply with respect to health insurance coverage if there is
a State law (as defined in section 2723(d)(1)) for a State that
regulates such coverage that is described in any of the
following subparagraphs:
``(A) Such State law requires such coverage to
provide for at least a 48-hour hospital length of stay
following a normal vaginal delivery and at least a 96-
hour hospital length of stay following a cesarean
section.
``(B) Such State law requires such coverage to
provide for maternity and pediatric care in accordance
with guidelines established by the American College of
Obstetricians and Gynecologists, the American Academy of
Pediatrics, or other established professional medical
associations.
``(C) Such State law requires, in connection with
such coverage for maternity care, that the hospital
length of stay for such care is left to the decision of
(or required to be made by) the attending provider in
consultation with the mother.
``(2) Construction.--Section 2723(a)(1) shall not be
construed as superseding a State law described in paragraph
(1).''.
(b) Conforming Amendments.--
[[Page 110 STAT. 2941]]
(1) Section 2721 of such Act (as added by section 102 of the
Health Insurance Portability and Accountability Act of
1996) <<NOTE: Ante, p. 1967.>> is amended--
(A) in subsection (a), by striking ``subparts 1 and
2'' and inserting ``subparts 1 and 3'', and
(B) in subsections (b) through (d), by striking
``subparts 1 and 2'' each place it appears and inserting
``subparts 1 through 3''.
(2) Section 2723(c) of such Act (as added by section 102 of
the Health Insurance Portability and Accountability Act of
1996) <<NOTE: Ante, p. 1971.>> is amended by inserting ``(other
than section 2704)'' after ``part''.
(c) Effective Date.--The <<NOTE: 42 USC 300gg-4 note.>> amendments
made by this section shall apply with respect to group health plans for
plan years beginning on or after January 1, 1998.
Sec. 605. Amendments to the Public Health Service Act Relating to
the Individual Market.--(a) In General.--Part B of title XXVII of the
Public Health Service Act (as added by section 111 of the Health
Insurance Portability and Accountability Act of 1996) <<NOTE: Ante, p.
1978.>> is amended--
(1) by inserting after the part heading the following:
``Subpart 1--Portability, Access, and Renewability Requirements'';
(2) by redesignating sections 2745, <<NOTE: 42 USC 300gg-
61--300gg-63.>> 2746, and 2747 as sections 2761, 2762, and 2763,
respectively;
(3) by inserting before section 2761 (as so redesignated)
the following:
``Subpart 3--General Provisions''; and
(4) by inserting after section 2744 the following:
``Subpart 3--Other Requirements
``SEC. 2751. <<NOTE: 42 USC 300gg-51.>> STANDARDS RELATING TO BENEFITS
FOR MOTHERS AND NEWBORNS.
``(a) In General.--The provisions of section 2704 (other than
subsections (d) and (f)) shall apply to health insurance coverage
offered by a health insurance issuer in the individual market in the
same manner as it applies to health insurance coverage offered by a
health insurance issuer in connection with a group health plan in the
small or large group market.
``(b) Notice Requirement.--A health insurance issuer under this part
shall comply with the notice requirement under section 711(d) of the
Employee Retirement Income Security Act of 1974 with respect to the
requirements referred to in subsection (a) as if such section applied to
such issuer and such issuer were a group health plan.
``(c) Preemption; Exception for Health Insurance
Coverage in Certain States.--
``(1) In general.--The requirements of this section shall
not apply with respect to health insurance coverage if there is
a State law (as defined in section 2723(d)(1)) for a State that
regulates such coverage that is described in any of the
following subparagraphs:
[[Page 110 STAT. 2942]]
``(A) Such State law requires such coverage to
provide for at least a 48-hour hospital length of stay
following a normal vaginal delivery and at least a 96-
hour hospital length of stay following a cesarean
section.
``(B) Such State law requires such coverage to
provide for maternity and pediatric care in accordance
with guidelines established by the American College of
Obstetricians and Gynecologists, the American Academy of
Pediatrics, or other established professional medical
associations.
``(C) Such State law requires, in connection with
such coverage for maternity care, that the hospital
length of stay for such care is left to the decision of
(or required to be made by) the attending provider in
consultation with the mother.
``(2) Construction.--Section 2762(a) shall not be construed
as superseding a State law described in paragraph (1).''.
(b) Conforming Amendments.--Such part (as so added) is further
amended as follows:
(1) In section 2744(a)(1), strike ``2746(b)'' <<NOTE: 42 USC
300gg-44.>> and insert ``2762(b)''.
(2) In section 2745(a)(1) <<NOTE: 42 USC 300gg-61.>>
(before redesignation under subsection (a)(1)), strike ``2746''
and insert ``2762''.
(3) In section 2746(b) <<NOTE: 42 USC 300gg-62.>> (before
redesignation under subsection (a)(1))--
(A) by inserting ``(1)'' after the dash, and
(B) by adding at the end the following:
``(2) Nothing in this part (other than section 2751) shall be
construed as requiring health insurance coverage offered in the
individual market to provide specific benefits under the terms of such
coverage.''.
(c) <<NOTE: Applicability. 42 USC 300gg-44 note.>> Effective
Date.--The amendments made by this section shall apply with respect to
health insurance coverage offered, sold, issued, renewed, in effect, or
operated in the individual market on or after January 1, 1998.
Sec. 606. <<NOTE: 42 USC 300gg-4 note.>> Reports to Congress
Concerning Childbirth.--(a) Findings.--Congress finds that--
(1) childbirth is one part of a continuum of experience that
includes prepregnancy, pregnancy and prenatal care, labor and
delivery, the immediate postpartum period, and a longer period
of adjustment for the newborn, the mother, and the family;
(2) health care practices across this continuum are changing
in response to health care financing and delivery system
changes, science and clinical research, and patient preferences;
and
(3) there is a need--
(A) to examine the issues and consequences
associated with the length of hospital stays following
childbirth;
(B) to examine the follow-up practices for mothers
and newborns used in conjunction with shorter hospital
stays;
(C) to identify appropriate health care practices
and procedures with regard to the hospital discharge of
newborns and mothers;
(D) to examine the extent to which such care is
affected by family and environmental factors; and
(E) to examine the content of care during hospital
stays following childbirth.
[[Page 110 STAT. 2943]]
(b) <<NOTE: Establishment.>> Advisory Panel.--
(1) In general.--Not later than 90 days after the date of
enactment of this Act, the Secretary of Health and Human
Services (in this section referred to as the ``Secretary'')
shall establish an advisory panel (referred to in this section
as the ``advisory panel'')--
(A) to guide and review methods, procedures, and
data collection necessary to conduct the study described
in subsection (c) in a manner that is intended to
enhance the quality, safety, and effectiveness of health
care services provided to mothers and newborns;
(B) to develop a consensus among the members of the
advisory panel regarding the appropriateness of the
specific requirements of this title; and
(C) to prepare and submit to the Secretary, as part
of the report of the Secretary submitted under
subsection (d), a report summarizing the consensus (if
any) developed under subparagraph (B) or the reasons for
not reaching such a consensus.
(2) Participation.--
(A) Department representatives.--The Secretary shall
ensure that representatives from within the Department
of Health and Human Services that have expertise in the
area of maternal and child health or in outcomes
research are appointed to the advisory panel.
(B) Representatives of public and private sector
entities.--
(i) In general.--The Secretary shall ensure
that members of the advisory panel include
representatives of public and private sector
entities having knowledge or experience in one or
more of the following areas:
(I) Patient care.
(II) Patient education.
(III) Quality assurance.
(IV) Outcomes research.
(V) Consumer issues.
(ii) Requirement.--The panel shall include
representatives of each of the following
categories:
(I) Health care practitioners.
(II) Health plans.
(III) Hospitals.
(IV) Employers.
(V) States.
(VI) Consumers.
(c) Studies.--
(1) In general.--The Secretary shall conduct a study of--
(A) the factors affecting the continuum of care with
respect to maternal and child health care, including
outcomes following childbirth;
(B) the factors determining the length of hospital
stay following childbirth;
(C) the diversity of negative or positive outcomes
affecting mothers, infants, and families;
(D) the manner in which post natal care has changed
over time and the manner in which that care has adapted
or related to changes in the length of hospital stay,
taking into account--
[[Page 110 STAT. 2944]]
(i) the types of post natal care available and
the extent to which such care is accessed; and
(ii) the challenges associated with providing
post natal care to all populations, including
vulnerable populations, and solutions for
overcoming these challenges; and
(E) the financial incentives that may--
(i) impact the health of newborns and
mothers; and
(ii) influence the clinical decisionmaking of
health care providers.
(2) Resources.--The Secretary shall provide to the advisory
panel the resources necessary to carry out the duties of the
advisory panel.
(d) Reports.--
(1) In general.--The Secretary shall prepare and submit to
the Committee on Labor and Human Resources of the Senate and the
Committee on Commerce of the House of Representatives a report
that contains--
(A) a summary of the study conducted under sub-
section (c);
(B) a summary of the best practices used in the
public and private sectors for the care of newborns and
mothers;
(C) recommendations for improvements in prenatal
care, post natal care, delivery and follow-up care, and
whether the implementation of such improvements should
be accomplished by the private health care sector,
Federal or State governments, or any combination
thereof; and
(D) limitations on the databases in existence on the
date of the enactment of this Act.
(2) Deadlines.--The Secretary shall prepare and submit to
the Committees referred to in paragraph (1)--
(A) an initial report concerning the study conducted
under subsection (c) and elements described in paragraph
(1), not later than 18 months after the date of the
enactment of this Act;
(B) an interim report concerning such study and
elements not later than 3 years after the date of the
enactment of this Act; and
(C) a final report concerning such study and
elements not later than 5 years after the date of the
enactment of this Act.
(e) Termination of Panel.--The advisory panel shall terminate on the
date that occurs 60 days after the date on which the last report is
submitted under subsection (d).
TITLE <<NOTE: Mental Health Parity Act of 1996.>> VII--PARITY IN THE
APPLICATION OF CERTAIN LIMITS TO MENTAL HEALTH BENEFITS
Sec. 701. <<NOTE: 42 USC 201 note.>> Short Title.--This title may
be cited as the ``Mental Health Parity Act of 1996''.
Sec. 702. Amendments to the Employee Retirement Income Security Act
of 1974.--(a) In General.--Subpart B of part 7 of subtitle B of title I
of the Employee Retirement Income Security Act of 1974 (as added by
section 603(a)) is amended by adding at the end the following new
section:
[[Page 110 STAT. 2945]]
``SEC. 712. <<NOTE: 29 USC 1185a.>> PARITY IN THE APPLICATION OF
CERTAIN LIMITS TO
MENTAL HEALTH BENEFITS.
``(a) In General.--
``(1) Aggregate lifetime limits.--In the case of a group
health plan (or health insurance coverage offered in connection
with such a plan) that provides both medical and surgical
benefits and mental health benefits--
``(A) No lifetime limit.--If the plan or coverage
does not include an aggregate lifetime limit on
substantially all medical and surgical benefits, the
plan or coverage may not impose any aggregate lifetime
limit on mental health benefits.
``(B) Lifetime limit.--If the plan or coverage
includes an aggregate lifetime limit on substantially
all medical and surgical benefits (in this paragraph
referred to as the `applicable lifetime limit'), the
plan or coverage shall either--
``(i) apply the applicable lifetime limit both
to the medical and surgical benefits to which it
otherwise would apply and to mental health
benefits and not distinguish in the application of
such limit between such medical and surgical
benefits and mental health benefits; or
``(ii) not include any aggregate lifetime
limit on mental health benefits that is less than
the applicable lifetime limit.
``(C) Rule in case of different limits.--In the case
of a plan or coverage that is not described in
subparagraph (A) or (B) and that includes no or
different aggregate lifetime limits on different
categories of medical and surgical benefits, the
Secretary shall establish rules under which subparagraph
(B) is applied to such plan or coverage with respect to
mental health benefits by substituting for the
applicable lifetime limit an average aggregate lifetime
limit that is computed taking into account the weighted
average of the aggregate lifetime limits applicable to
such categories.
``(2) Annual limits.--In the case of a group health plan (or
health insurance coverage offered in connection with such a
plan) that provides both medical and surgical benefits and
mental health benefits--
``(A) No annual limit.--If the plan or coverage does
not include an annual limit on substantially all medical
and surgical benefits, the plan or coverage may not
impose any annual limit on mental health benefits.
``(B) Annual limit.--If the plan or coverage
includes an annual limit on substantially all medical
and surgical benefits (in this paragraph referred to as
the `applicable annual limit'), the plan or coverage
shall either--
``(i) apply the applicable annual limit both
to medical and surgical benefits to which it
otherwise would apply and to mental health
benefits and not distinguish in the application of
such limit between such medical and surgical
benefits and mental health benefits; or
``(ii) not include any annual limit on mental
health benefits that is less than the applicable
annual limit.
[[Page 110 STAT. 2946]]
``(C) Rule in case of different limits.--In the case
of a plan or coverage that is not described in
subparagraph (A) or (B) and that includes no or
different annual limits on different categories of
medical and surgical benefits, the Secretary shall
establish rules under which subparagraph (B) is applied
to such plan or coverage with respect to mental health
benefits by substituting for the applicable annual limit
an average annual limit that is computed taking into
account the weighted average of the annual limits
applicable to such categories.
``(b) Construction.--Nothing in this section shall be
construed--
``(1) as requiring a group health plan (or health insurance
coverage offered in connection with such a plan) to provide any
mental health benefits; or
``(2) in the case of a group health plan (or health
insurance coverage offered in connection with such a plan) that
provides mental health benefits, as affecting the terms and
conditions (including cost sharing, limits on numbers of visits
or days of coverage, and requirements relating to medical
necessity) relating to the amount, duration, or scope of mental
health benefits under the plan or coverage, except as
specifically provided in subsection (a) (in regard to parity in
the imposition of aggregate lifetime limits and annual limits
for mental health benefits).
``(c) Exemptions.--
``(1) Small employer exemption.--
``(A) In general.--This section shall not apply to
any group health plan (and group health insurance
coverage offered in connection with a group health plan)
for any plan year of a small employer.
``(B) Small employer.--For purposes of subparagraph
(A), the term `small employer' means, in connection with
a group health plan with respect to a calendar year and
a plan year, an employer who employed an average of at
least 2 but not more than 50 employees on business days
during the preceding calendar year and who employs at
least 2 employees on the first day of the plan year.
``(C) Application of certain rules in determination
of employer size.--For purposes of this paragraph--
``(i) Application of aggregation rule for
employers.--Rules similar to the rules under
subsections (b), (c), (m), and (o) of section 414
of the Internal Revenue Code of 1986 shall apply
for purposes of treating persons as a single
employer.
``(ii) Employers not in existence in preceding
year.--In the case of an employer which was not in
existence throughout the preceding calendar year,
the determination of whether such employer is a
small employer shall be based on the average
number of employees that it is reasonably expected
such employer will employ on business days in the
current calendar year.
``(iii) Predecessors.--Any reference in this
paragraph to an employer shall include a reference
to any predecessor of such employer.
[[Page 110 STAT. 2947]]
``(2) Increased cost exemption.--This section shall not
apply with respect to a group health plan (or health insurance
coverage offered in connection with a group health plan) if the
application of this section to such plan (or to such coverage)
results in an increase in the cost under the plan (or for such
coverage) of at least 1 percent.
``(d) Separate Application to Each Option Offered.--In the case of a
group health plan that offers a participant or beneficiary two or more
benefit package options under the plan, the requirements of this section
shall be applied separately with respect to each such option.
``(e) Definitions.--For purposes of this section--
``(1) Aggregate lifetime limit.--The term `aggregate
lifetime limit' means, with respect to benefits under a group
health plan or health insurance coverage, a dollar limitation on
the total amount that may be paid with respect to such benefits
under the plan or health insurance coverage with respect to an
individual or other coverage unit.
``(2) Annual limit.--The term `annual limit' means, with
respect to benefits under a group health plan or health
insurance coverage, a dollar limitation on the total amount of
benefits that may be paid with respect to such benefits in a 12-
month period under the plan or health insurance coverage with
respect to an individual or other coverage unit.
``(3) Medical or surgical benefits.--The term `medical or
surgical benefits' means benefits with respect to
medical or surgical services, as defined under the terms of the
plan or coverage (as the case may be), but does not include
mental health benefits.
``(4) Mental health benefits.--The term `mental health
benefits' means benefits with respect to mental health services,
as defined under the terms of the plan or coverage (as the case
may be), but does not include benefits with respect to treatment
of substance abuse or chemical dependency.
``(f) Sunset.--This section shall not apply to benefits for services
furnished on or after September 30, 2001.''.
(b) Clerical Amendment.--The table of contents in section 1 of such
Act, as amended by section 603 of this Act, is amended by inserting
after the item relating to section 711 the following new item:
``Sec. 712. Parity in the application of certain limits to mental health
benefits.''.
(c) <<NOTE: Applicability. 29 USC 1183b note.>> Effective Date.--
The amendments made by this section shall apply with respect to group
health plans for plan years beginning on or after January 1, 1998.
Sec. 703. Amendments to the Public Health Service Act Relating to
the Group Market.--(a) In General.--Subpart 2 of part A of title XXVII
of the Public Health Service Act (as added by section 604(a)) is amended
by adding at the end the following new section:
``SEC. 2705. <<NOTE: 42 USC 300gg-5.>> PARITY IN THE APPLICATION OF
CERTAIN LIMITS TO
MENTAL HEALTH BENEFITS.
``(a) In General.--
``(1) Aggregate lifetime limits.--In the case of a group
health plan (or health insurance coverage offered in connection
with such a plan) that provides both medical and surgical
benefits and mental health benefits--
[[Page 110 STAT. 2948]]
``(A) No lifetime limit.--If the plan or coverage
does not include an aggregate lifetime limit on
substantially all medical and surgical benefits, the
plan or coverage may not impose any aggregate lifetime
limit on mental health benefits.
``(B) Lifetime limit.--If the plan or coverage
includes an aggregate lifetime limit on substantially
all medical and surgical benefits (in this paragraph
referred to as the `applicable lifetime limit'), the
plan or coverage shall either--
``(i) apply the applicable lifetime limit both
to the medical and surgical benefits to which it
otherwise would apply and to mental health
benefits and not distinguish in the application of
such limit between such medical and surgical
benefits and mental health benefits; or
``(ii) not include any aggregate lifetime
limit on mental health benefits that is less than
the applicable lifetime limit.
``(C) Rule in case of different limits.--In the case
of a plan or coverage that is not described in
subparagraph (A) or (B) and that includes no or
different aggregate lifetime limits on different
categories of medical and surgical benefits, the
Secretary shall establish rules under which subparagraph
(B) is applied to such plan or coverage with respect to
mental health benefits by substituting for the
applicable lifetime limit an average aggregate lifetime
limit that is computed taking into account the weighted
average of the aggregate lifetime limits applicable to
such categories.
``(2) Annual limits.--In the case of a group health plan (or
health insurance coverage offered in connection with such a
plan) that provides both medical and surgical benefits and
mental health benefits--
``(A) No annual limit.--If the plan or coverage does
not include an annual limit on substantially all medical
and surgical benefits, the plan or coverage may not
impose any annual limit on mental health benefits.
``(B) Annual limit.--If the plan or coverage
includes an annual limit on substantially all medical
and surgical benefits (in this paragraph referred to as
the `applicable annual limit'), the plan or coverage
shall either--
``(i) apply the applicable annual limit both
to medical and surgical benefits to which it
otherwise would apply and to mental health
benefits and not distinguish in the application of
such limit between such medical and surgical
benefits and mental health benefits; or
``(ii) not include any annual limit on mental
health benefits that is less than the applicable
annual limit.
``(C) Rule in case of different limits.--In the case
of a plan or coverage that is not described in
subparagraph (A) or (B) and that includes no or
different annual limits on different categories of
medical and surgical benefits, the Secretary shall
establish rules under which subparagraph (B) is applied
to such plan or coverage with respect to mental health
benefits by substituting for the applicable annual limit
an average annual limit that is computed
[[Page 110 STAT. 2949]]
taking into account the weighted average of the annual
limits applicable to such categories.
``(b) Construction.--Nothing in this section shall be
construed--
``(1) as requiring a group health plan (or health insurance
coverage offered in connection with such a plan) to provide any
mental health benefits; or
``(2) in the case of a group health plan (or health
insurance coverage offered in connection with such a plan) that
provides mental health benefits, as affecting the terms and
conditions (including cost sharing, limits on numbers of visits
or days of coverage, and requirements relating to medical
necessity) relating to the amount, duration, or scope of mental
health benefits under the plan or coverage, except as
specifically provided in subsection (a) (in regard to parity in
the imposition of aggregate lifetime limits and annual limits
for mental health benefits).
``(c) Exemptions.--
``(1) Small employer exemption.--This section shall not
apply to any group health plan (and group health insurance
coverage offered in connection with a group health plan) for any
plan year of a small employer.
``(2) Increased cost exemption.--This section shall not
apply with respect to a group health plan (or health insurance
coverage offered in connection with a group health plan) if the
application of this section to such plan (or to such coverage)
results in an increase in the cost under the plan (or for such
coverage) of at least 1 percent.
``(d) Separate Application to Each Option Offered.--In the case of a
group health plan that offers a participant or beneficiary two or more
benefit package options under the plan, the requirements of this section
shall be applied separately with respect to each such option.
``(e) Definitions.--For purposes of this section--
``(1) Aggregate lifetime limit.--The term `aggregate
lifetime limit' means, with respect to benefits under a group
health plan or health insurance coverage, a dollar limitation on
the total amount that may be paid with respect to such benefits
under the plan or health insurance coverage with respect to an
individual or other coverage unit.
``(2) Annual limit.--The term `annual limit' means, with
respect to benefits under a group health plan or health
insurance coverage, a dollar limitation on the total amount of
benefits that may be paid with respect to such benefits in a 12-
month period under the plan or health insurance coverage with
respect to an individual or other coverage unit.
``(3) Medical or surgical benefits.--The term `medical or
surgical benefits' means benefits with respect to
medical or surgical services, as defined under the terms of the
plan or coverage (as the case may be), but does not include
mental health benefits.
``(4) Mental health benefits.--The term `mental health
benefits' means benefits with respect to mental health services,
as defined under the terms of the plan or coverage (as the case
may be), but does not include benefits with respect to treatment
of substance abuse or chemical dependency.
[[Page 110 STAT. 2950]]
``(f) Sunset.--This section shall not apply to benefits for services
furnished on or after September 30, 2001.''.
(b) <<NOTE: Applicability. 42 USC 300gg-5 note.>> Effective Date.--
The amendments made by this section shall apply with respect to group
health plans for plan years beginning on or after January 1, 1998.
This Act may be cited as the ``Departments of Veterans Affairs and
Housing and Urban Development, and Independent Agencies Appropriations
Act, 1997''.
Approved September 26, 1996.
LEGISLATIVE HISTORY--H.R. 3666:
---------------------------------------------------------------------------
HOUSE REPORTS: Nos. 104-628 (Comm. on Appropriations) and 104-812 (Comm.
of Conference).
SENATE REPORTS: No. 104-318 (Comm. on Appropriations).
CONGRESSIONAL RECORD, Vol. 142 (1996):
June 25, 26, considered and passed House.
Sept. 3-5, considered and passed Senate, amended.
Sept. 24, House agreed to conference report.
Sept. 25, Senate agreed to conference report.
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 32 (1996):
Sept. 26, Presidential remarks and statement.
<all>