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   104th Congress 1st 
         Session        HOUSE OF REPRESENTATIVES        Report
                                                       104-280
_______________________________________________________________________

                                     


         SEVEN-YEAR BALANCED BUDGET RECONCILIATION ACT OF 1995

                               ----------                              

                              R E P O R T

                                 of the

                        COMMITTEE ON THE BUDGET
                        HOUSE OF REPRESENTATIVES

                              to accompany

                               H.R. 2491

  A BILL TO PROVIDE FOR RECONCILIATION PURSUANT TO SECTION 105 OF THE 
        CONCURRENT RESOLUTION ON THE BUDGET FOR FISCAL YEAR 1996

                             together with

               MINORITY, ADDITIONAL, AND DISSENTING VIEWS

                                     



                                Volume I
                              Titles I-XII

October 17, 1995.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed
SEVEN -YEAR BALANCED BUDGET RECONCILIATION ACT OF 1995 --VOLUME I
   104th Congress 1st   HOUSE OF REPRESENTATIVES        Report
         Session
                                                       104-280
_______________________________________________________________________


 
  SEVEN-YEAR BALANCED BUDGET RECONCILIATION ACT OF 1995  --  VOLUME I

                               __________

                              R E P O R T

                                 of the

                        COMMITTEE ON THE BUDGET
                        HOUSE OF REPRESENTATIVES

                              to accompany


                                H.R. 2491

  A BILL TO PROVIDE FOR RECONCILIATION PURSUANT TO SECTION 105 OF THE 
        CONCURRENT RESOLUTION ON THE BUDGET FOR FISCAL YEAR 1996



                             together with



               MINORITY, ADDITIONAL, AND DISSENTING VIEWS






                                Volume I



                              Titles I-XII

October 17, 1995.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed
                        COMMITTEE ON THE BUDGET

  JOHN R. KASICH, Ohio, Chairman
MARTIN OLAV SABO, Minnesota,         DAVID L. HOBSON, Ohio
  Ranking Minority Member            ROBERT S. WALKER, Pennsylvania,
CHARLES W. STENHOLM, Texas             Vice Chairman
LOUISE McINTOSH SLAUGHTER,           JIM KOLBE, Arizona
  New York                           CHRISTOPHER SHAYS, Connecticut
MIKE PARKER, Mississippi             WALLY HERGER, California
WILLIAM J. COYNE, Pennsylvania       JIM BUNNING, Kentucky
ALAN B. MOLLOHAN, West Virginia      LAMAR S. SMITH, Texas
JERRY F. COSTELLO, Illinois          WAYNE ALLARD, Colorado
HARRY JOHNSTON, Florida              DAN MILLER, Florida
PATSY T. MINK, Hawaii                RICK LAZIO, New York
BILL ORTON, Utah                     BOB FRANKS, New Jersey
EARL POMEROY, North Dakota           NICK SMITH, Michigan
GLEN BROWDER, Alabama                BOB INGLIS, South Carolina
LYNN C. WOOLSEY, California          MARTIN R. HOKE, Ohio
JOHN W. OLVER, Massachusetts         SUSAN MOLINARI, New York
LUCILLE ROYBAL-ALLARD, California    JIM NUSSLE, Iowa
CARRIE P. MEEK, Florida              PETER HOEKSTRA, Michigan
LYNN N. RIVERS, Michigan             STEVE LARGENT, Oklahoma
LLOYD DOGGETT, Texas                 SUE MYRICK, North Carolina
                                     SAM BROWNBACK, Kansas
                                     JOHN SHADEGG, Arizona
                                     GEORGE P. RADANOVICH, California
                                     CHARLES F. BASS, New Hampshire

                           Professional Staff

  Richard E. May, Staff Director
 Eileen M. Baumgartner, Minority 
          Staff Director


                   V O L U M E   I   C O N T E N T S

                              ----------                              

                          Legislative Language

                                                                   Page
Title I--Provisions of General Applicability.....................     2
Title II--Committee on Banking and Financial Services............     2
Title III--Committee on Commerce.................................    28
Title IV--Committee on Economic and Educational Opportunities....    47
Title V--Committee on Government Reform and Oversight............    56
Title VI--Committee on International Relations...................    56
Title VII--Committee on the Judiciary............................    57
Title VIII--Committee on National Security.......................    58
Title IX--Committee on Resources.................................    61
Title X--Committee on Transportation and Infrastructure..........   127
Title XI--Committee on Veterans' Affairs.........................   164
Title XII--Committee on Ways and Means--Trade....................   171

                            Report Language

Introduction.....................................................   185
Title II--Committee on Banking and Financial Services............   191
Title III--Committee on Commerce.................................   221
Title IV--Committee on Economic and Educational Opportunities....   335
Title VI--Committee on International Relations...................   419
Title VII--Committee on the Judiciary............................   527
Title VIII--Committee on National Security.......................   535
Title IX--Committee on Resources.................................   553
Title X--Committee on Transportation and Infrastructure..........   727
Title XI--Committee on Veterans' Affairs.........................   877
Title XII--Committee on Ways and Means--Trade....................   929
                                                                       
104th Congress                                            Rept. 104-280
                        HOUSE OF REPRESENTATIVES

 1st Session                                                   Volume I
_______________________________________________________________________



PROVIDING FOR RECONCILIATION PURSUANT TO SECTION 105 OF THE CONCURRENT 
             RESOLUTION ON THE BUDGET FOR FISCAL YEAR 1996

_______________________________________________________________________


October 17, 1995.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______


             Mr. Kasich, from the Committee on the Budget,

                        submitted the following

                              R E P O R T

                             together with

               MINORITY, ADDITIONAL, AND DISSENTING VIEWS

                        [To accompany H.R. 2491]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on the Budget, to whom reconciliation 
recommendations were submitted pursuant to section 105 of House 
Concurrent Resolution 67, the concurrent resolution on the 
budget for fiscal year 1996, having considered the same, report 
the bill without recommendation.

              TITLE I--PROVISIONS OF GENERAL APPLICABILITY

SECTION 1001. SHORT TITLE.

    This Act may be cited as the ``Seven-Year Balanced Budget 
Reconciliation Act of 1995''.

SEC. 1002. TABLE OF TITLES.

    This Act is organized into titles as follows:

Title I--Provisions of General Applicability
Title II--Committee on Banking and Financial Services
Title III--Committee on Commerce
Title IV--Committee on Economic and Educational Opportunities
Title V--Committee on Government Reform and Oversight
Title VI--Committee on International Relations
Title VII--Committee on the Judiciary
Title VIII--Committee on National Security
Title IX--Committee on Resources
Title X--Committee on Transportation and Infrastructure
Title XI--Committee on Veterans' Affairs
Title XII--Committee on Ways and Means-Trade
Title XIII--Committee on Ways and Means-Revenues
Title XIV--Committee on Ways and Means-Tax Simplification
Title XV--Medicare
Title XVI--Transformation of the Medicaid Program
Title XVII--Reorganization of the Department of Commerce
Title XVIII--Welfare Reform
Title XIX--Contract Tax Provisions
Title XX--Budget Process

         TITLE II--COMMITTEE ON BANKING AND FINANCIAL SERVICES

SEC. 2001. TABLE OF CONTENTS.

    The table of contents for this title is as follows:

                     Subtitle A--Housing Provisions

Sec. 2101. Termination of RTC and FDIC affordable housing programs.
Sec. 2102. Elimination of FHA assignment program and foreclosure 
relief.
Sec. 2103. Reform of HUD-owned multifamily property disposition 
program.
Sec. 2104. Recapture of rural housing loan subsidies by Rural Housing 
and Community Development Service.
Sec. 2105. Reduction of section 8 annual adjustment factors for units 
without tenant turnover.

                 Subtitle B--Thrift Charter Conversion

Sec. 2200. Short title.

 Chapter 1--Bank Insurance Fund and Savings Association Insurance Fund

Sec. 2201. Special assessment.
Sec. 2202. Assessments on insured depository institutions.
Sec. 2203. Merger of Bank Insurance Fund and Savings Association 
Insurance Fund after recapitalization of SAIF.
Sec. 2204. Refund of amounts in deposit insurance fund in excess of 
designated reserve amount.
Sec. 2205. Assessments authorized only if needed to maintain the 
reserve ratio of a deposit insurance fund.

          Chapter 2--Status Of Banks and Savings Associations

Sec. 2221. Termination of Federal savings associations; treatment of 
State savings associations as banks for purposes of Federal banking 
law.
Sec. 2222. Treatment of certain activities and affiliations of bank 
holding companies resulting from this Act.
Sec. 2223. Transition provisions for activities of savings associations 
which convert into or become treated as banks.
Sec. 2224. Registration of bank holding companies resulting from 
conversions of savings associations to banks or treatment of savings 
associations as banks.
Sec. 2225. Additional transition provisions and special rules.
Sec. 2226. Technical and conforming amendments.
Sec. 2227. References to savings associations and State banks in 
Federal law.
Sec. 2228. Repeal of Home Owners' Loan Act.
Sec. 2229. Effective date; definitions.

       Chapter 3--Transfer Of Functions, Personnel, and Property

Sec. 2241. Office of Thrift Supervision abolished.
Sec. 2242. Determination of transferred functions and employees.
Sec. 2243. Savings provisions.
Sec. 2244. References in Federal law to Director of the Office of 
Thrift Supervision.
Sec. 2245. Reconfiguration of board of directors of FDIC as a result of 
removal of Director of the Office of Thrift Supervision.

                 Chapter 4--Loan Loss Reserve Treatment

Sec. 2261. Sense of the Congress.

           Subtitle C--Community Reinvestment Act Amendments

Sec. 2301. Expression of congressional intent.
Sec. 2302. Community Reinvestment Act exemption.
Sec. 2303. Self-certification of CRA compliance.
Sec. 2304. Community input and conclusive rating.
Sec. 2305. Special purpose financial institutions.
Sec. 2306. Increased incentives for lending to low- and moderate-income 
communities.
Sec. 2307. Prohibition on additional reporting under CRA.
Sec. 2308. Technical amendment.
Sec. 2309. Duplicative reporting.
Sec. 2310. CRA congressional oversight.
Sec. 2311. Consultation among examiners.
Sec. 2312. Limitation on regulations.

                     Subtitle A--Housing Provisions

SEC. 2101. TERMINATION OF RTC AND FDIC AFFORDABLE HOUSING PROGRAMS.

    (a) Repeal of Unified Program and Transfer of RTC Windup Authority 
to HUD.--Section 21A(c) of the Federal Home Loan Bank Act (12 U.S.C. 
1441a(c)) is amended by striking paragraph (17) and inserting the 
following new paragraph:
            ``(17) Transfer of authority.--The Secretary shall assume, 
        not later than December 31, 1995, and thereafter shall carry 
        out, any remaining authority and responsibilities of the 
        Corporation to recapture excess proceeds from resale of 
        properties and to monitor and enforce low-income occupancy 
        requirements or rent limitations under this subsection and 
        shall assume any direct or contingent liability of the 
        Corporation to carry out such authority and 
        responsibilities.''.
    (b) Termination of RTC Affordable Housing Program.--Section 21A(c) 
of the Federal Home Loan Bank Act (12 U.S.C. 1441a(c)) is amended by 
adding at the end the following new paragraph:
            ``(18) Termination.--
                    ``(A) In General.--On and after the date of the 
                enactment of the Seven-Year Balanced Budget 
                Reconciliation Act of 1995, the provisions of this 
                subsection (other than paragraph (17)) shall not apply 
                with respect to any eligible residential property or 
                eligible condominium property.
                    ``(B) Savings provision.--Notwithstanding 
                subparagraph (A), the provisions of this subsection 
                shall continue to apply on and after such date of 
                enactment to any eligible residential property or 
                eligible condominium property that--
                            ``(i) has been sold or otherwise disposed 
                        of by the Corporation before such date of 
                        enactment; or
                            ``(ii) is subject to a contract of sale or 
                        other disposition entered into before such date 
                        of enactment.''.
    (c) Termination of Affordable Housing Advisory Board.--Section 
14(b)(9) of the Resolution Trust Corporation Completion Act (12 U.S.C. 
1831q note) is amended by striking ``September 30, 1998'' and inserting 
``September 30, 1995''.
    (d) Repeal of FDIC Program and Transfer of Windup Authority to 
HUD.--
            (1) Repeal.--Section 40 of the Federal Deposit Insurance 
        Act (12 U.S.C. 1831q) is hereby repealed.
            (2) Transfer of windup authority.--Notwithstanding 
        paragraph (1)--
                    (A) effective December 31, 1995, the Secretary 
                shall carry out any remaining authority and 
                responsibilities of the Federal Deposit Insurance 
                Corporation under section 40 of the Federal Deposit 
                Insurance Act to recapture excess proceeds from resale 
                of properties and to monitor and enforce low-income 
                occupancy requirements or rent limitations under such 
                section and shall assume any direct or contingent 
                liability of the Corporation to carry out such 
                authority and responsibilities; and
                    (B) the Federal Deposit Insurance Corporation shall 
                consummate any sales of property under section 40 of 
                such Act that were pending under contracts of sale on 
                September 30, 1995.
    (e) FDIC Disposition of Assets as Conservator or Receiver.--Section 
11(d)(13)(E) of the Federal Deposit Insurance Act (12 U.S.C. 
1821(d)(13)(E)) is amended--
            (1) in clause (iii), by inserting ``and'' after the 
        semicolon;
            (2) in clause (iv), by striking ``; and'' and inserting a 
        period; and
            (3) by striking clause (v).
    (f) Disposition of FDIC Assets.--Section 13(d)(3)(D) of the Federal 
Deposit Insurance Act (12 U.S.C. 1823(d)(3)(D)) is amended--
            (1) in clause (iii), by inserting ``and'' after the 
        semicolon;
            (2) in clause (iv), by striking ``; and'' and inserting a 
        period; and
            (3) by striking clause (v).

SEC. 2102. ELIMINATION OF FHA ASSIGNMENT PROGRAM AND FORECLOSURE 
                    RELIEF.

    (a) Elimination of TMAP and Assignment Program.--Section 230 of the 
National Housing Act (12 U.S.C. 1715u) is hereby repealed.
    (b) Prohibition of Foreclosure Avoidance Relief.--Section 204 of 
the National Housing Act (12 U.S.C. 1710) is amended by adding at the 
end the following new subsection:
    ``(m) Prohibition of Foreclosure Avoidance Relief.--Notwithstanding 
any provision of this section, any other provision of this Act, section 
2 of the Housing Act of 1949, section 2 of the Housing and Urban 
Development Act of 1968, or any other provision of law, after September 
30, 1995, the Secretary of Housing and Urban Development may not 
provide foreclosure avoidance relief to any mortgagor who has defaulted 
in making payments under a mortgage covering a 1-, 2-, 3-, or 4-family 
residence insured under this Act.''.

SEC. 2103. REFORM OF HUD-OWNED MULTIFAMILY PROPERTY DISPOSITION 
                    PROGRAM.

    (a) In General.--Effective October 1, 1995, section 203 of the 
Housing and Community Development Amendments of 1978 (12 U.S.C. 1701z-
11) is amended to read as follows:

``SEC. 203. MANAGEMENT AND DISPOSITION OF HUD-OWNED MULTIFAMILY HOUSING 
                    PROJECTS.

    ``(a) In General.--The Secretary of Housing and Urban Development 
may manage and dispose of (1) multifamily housing projects that are 
owned by the Secretary or that are subject to mortgages held by the 
Secretary, and (2) mortgages on multifamily housing projects that are 
held by the Secretary, without regard to any other provision of law.
    ``(b) Authority to Delegate.--The Secretary of Housing and Urban 
Development may delegate to one or more entities the authority to carry 
out some or all of the functions and responsibilities of the Secretary 
in connection with the foreclosure of mortgages on multifamily housing 
projects held by the Secretary.
    ``(c) Definition.--For purposes of this section, the term 
`multifamily housing project' means any multifamily rental housing 
project which is, or prior to acquisition by the Secretary was, 
assisted or insured under the National Housing Act, or was subject to a 
loan under section 202 of the Housing Act of 1959.''.
    (b) Conforming Amendments.--
            (1) Nondiscrimination against certificate and voucher 
        holders.--Section 183(c) of the Housing and Community 
        Development Act of 1987 (42 U.S.C. 1437f note) is amended by 
        striking ``section 203(i)(2) of the Housing and Community 
        Development Amendments of 1978, as amended by section 181(h) of 
        this Act'' and inserting ``section 203(b) of the Housing and 
        Community Development Amendments of 1978 (as in effect before 
        October 1, 1995)''.
            (2) LIHPRH act of 1990.--Section 212(c) of the Low-Income 
        Housing Preservation and Resident Homeownership Act of 1990 (12 
        U.S.C. 4102(c)) is amended by striking the last sentence.
            (3) Hope homeownership program.--Section 427 of the 
        Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 
        12877) is amended by striking ``subject to--'' and all that 
        follows and inserting ``subject to the Low-Income Housing 
        Preservation and Resident Homeownership Act of 1990.''.
            (4) FHA multifamily housing mortgage insurance.--Section 
        207(k) of the National Housing Act (12 U.S.C. 1713(k)) is 
        amended by striking the third sentence.
            (5) Multifamily mortgage foreclosure act of 1981.--Section 
        367(b)(2) of the Multifamily Mortgage Foreclosure Act of 1981 
        (12 U.S.C.3706(b)(2)) is amended--
                    (A) by striking subparagraph (B); and
                    (B) by striking ``(A)''.
            (6) Preventing mortgage defaults on insured multifamily 
        projects.--Section 103(h)(2)(B) of the Multifamily Housing 
        Property Disposition Reform Act of 1994 (12 U.S.C. 1715z-1a 
        note) is amended by inserting ``(as in effect before October 1, 
        1995)'' after ``1978''.

SEC. 2104. RECAPTURE OF RURAL HOUSING LOAN SUBSIDIES BY RURAL HOUSING 
                    AND COMMUNITY DEVELOPMENT SERVICE.

    The first sentence of section 521(a)(1)(D)(i) of the Housing Act of 
1949 (42 U.S.C. 1490a(a)(1)(D)(i)) is amended by inserting ``upon the 
repayment of any loan made under this title or'' after ``assistance 
rendered''.

SEC. 2105. REDUCTION OF SECTION 8 ANNUAL ADJUSTMENT FACTORS FOR UNITS 
                    WITHOUT TENANT TURNOVER.

    Paragraph (2)(A) of section 8(c) of the United States Housing Act 
of 1937 (42 U.S.C. 1437f(c)(2)(A)) is amended by striking the last 
sentence.

                 Subtitle B--Thrift Charter Conversion

SEC. 2200. SHORT TITLE.

    This subtitle may be cited as the ``Thrift Charter Conversion Act 
of 1995''.

 CHAPTER 1--BANK INSURANCE FUND AND SAVINGS ASSOCIATION INSURANCE FUND

SEC. 2201. SPECIAL ASSESSMENT.

    Section 7(b)(6) of the Federal Deposit Insurance Act (12 U.S.C. 
1817(b)(6)) is amended--
            (1) by redesignating clauses (i), (ii), and (iii) of 
        subparagraph (A) as subclauses (I), (II), and (III), 
        respectively;
            (2) by redesignating subparagraphs (A) and (B) as clauses 
        (i) and (ii), respectively;
            (3) by moving the left margin of such clauses and 
        subclauses (as so redesignated) 2 ems to the right;
            (4) by striking ``special assessments.--In addition to'' 
        and inserting ``special assessments.--
                    ``(A) In general.--In addition to''; and
            (5) by adding at the end the following new subparagraphs:
                    ``(B) Single additional special assessment with 
                respect to certain accounts.--
                            ``(i) In general.--The Corporation shall 
                        impose, on the basis of such factors as the 
                        Board of Directors considers to be appropriate, 
                        a single special assessment on the institutions 
                        described in the following subclauses (other 
                        than institutions exempt under subparagraph 
                        (C)):
                                    ``(I) Each Savings Association 
                                Insurance Fund member (including any 
                                Savings Association Insurance Fund 
                                member referred to in section 
                                5(d)(2)(G)).
                                    ``(II) Each Bank Insurance Fund 
                                member which has deposits which are 
                                treated, under section 5(d)(3), as 
                                deposits which are insured by the 
                                Savings Association Insurance Fund.
                            ``(ii) Amount of assessment.--The 
                        assessment imposed under clause (i) shall be in 
                        an amount equal to such percentage of the 
                        Savings Association Insurance Fund assessment 
                        base (of the institutions subject to such 
                        assessment) as of March 31, 1995, as the Board 
                        of Directors determines, in the Board of 
                        Directors' discretion, to be necessary in order 
                        for the reserve ratio of the Savings 
                        Association Insurance Fund to meet the 
                        designated reserve ratio on the 1st business 
                        day of January, 1996.
                            ``(iii) Deposit of assessment.--
                        Notwithstanding any other provision of law, the 
                        proceeds of any assessment imposed under clause 
                        (i) shall be deposited in the Savings 
                        Association Insurance Fund.
                            ``(iv) Date payment due.--The special 
                        assessment imposed under this subparagraph 
                        shall be--
                                    ``(I) due on the 1st business day 
                                of January, 1996; and
                                    ``(II) paid to the Corporation on 
                                the later of the due date or such other 
                                date as the Corporation may prescribe 
                                which may not be later than the end of 
                                the 60-day period beginning on the date 
                                of the Thrift Charter Conversion Act of 
                                1995.
                            ``(v) Savings association insurance fund 
                        assessment base defined.--For purposes of this 
                        subparagraph, the term Savings Association 
                        Insurance Fund assessment base means--
                                    ``(I) the assessment base of 
                                Savings Association Insurance Fund 
                                members on which assessments are 
                                imposed under the risk-based assessment 
                                system established pursuant to 
                                paragraph (1); and
                                    ``(II) in the case of an 
                                institution described in clause 
                                (i)(II), the adjusted attributable 
                                deposit amount determined under 
                                subparagraph (C) of section 5(d)(3) for 
                                purposes of subparagraph (B)(i) of such 
                                section.
                    ``(C) Special rules for certain exempt 
                institutions.--
                            ``(i) In general.--The Board of Directors 
                        may exempt any weak insured depository 
                        institution from the payment of the assessment 
                        imposed under subparagraph (B)(i) if the 
                        exemption would reduce risk to the Savings 
                        Association Insurance Fund.
                            ``(ii) Continuation of assessment rates 
                        applicable as of june 30, 1995.--
                        Notwithstanding any other provision of this 
                        subsection or any determination by the 
                        Corporation pursuant to paragraph (2), the 
                        semiannual assessment rate applicable under 
                        paragraph (2) during the period beginning on 
                        January 1, 1996, and ending on December 31, 
                        1999, with respect to any insured depository 
                        institution which receives an exemption under 
                        clause (i) shall be the semiannual assessment 
                        rate which would be applicable to such 
                        institution under paragraph (2) if such 
                        assessment rate were calculated in the manner 
                        in which semiannual assessment rates for 
                        Savings Association Insurance Fund members were 
                        determined by the Corporation under such 
                        paragraph as of June 30, 1995.
                            ``(iii) Special rule for oakar banks.--If 
                        an insured depository institution to which 
                        clause (ii) applies is an institution described 
                        in subparagraph (B)(i)(II), section 5(d)(3) (as 
                        in effect on September 13, 1995) shall continue 
                        to apply with respect to such institution for 
                        purposes of clause (ii) without regard to the 
                        repeal of such section by section 2202(c) of 
                        the Thrift Charter Conversion Act of 1995.
                            ``(iv) Deposit of assessment.--Assessments 
                        imposed under paragraph (2) in accordance with 
                        clause (i) on depository institutions to which 
                        such clause applies shall be deposited--
                                    ``(I) in the Savings Association 
                                Insurance Fund until such fund is 
                                merged into the deposit insurance fund 
                                pursuant to section 2203(a)(2) of the 
                                Thrift Charter Conversion Act of 1995; 
                                and
                                    ``(II) after such merger, in the 
                                deposit insurance fund.
                            ``(v) Guidelines.--
                                    ``(I) Guidelines required.--Not 
                                later than 30 days after the date of 
                                the enactment of the Thrift Charter 
                                Conversion Act of 1995, the Board of 
                                Directors shall prescribe guidelines 
                                containing the criteria to be used by 
                                the Board of Directors in making any 
                                determination under clause (i).
                                    ``(II) Publication.--The guidelines 
                                prescribed under subclause (I) shall be 
                                published in the Federal Register.
                    ``(D) Pro rata payment of special assessment by 
                exempt institutions authorized.--In the case of any 
                depository institution which receives an exemption 
                under subparagraph (C)(i) from the special assessment 
                imposed under subparagraph (B) and any successor to 
                such institution, subparagraph (C)(ii) shall cease to 
                apply with respect to such institution as of the date 
                on which the institution makes a payment to the 
                Corporation, on such terms as the Board of Directors 
                may prescribe, in an amount equal to the product of--
                            ``(i) 12.5 percent of the product of--
                                    ``(I) the Savings Association 
                                Insurance Fund assessment base of the 
                                institution which would have been used 
                                in the calculation of the amount of 
                                such special assessment if the 
                                institution had not received the 
                                exemption from such assessment; and
                                    ``(II) the percentage rate 
                                calculated by the Board of Directors 
                                under subparagraph (B)(ii) for use in 
                                determining the amount of the special 
                                assessment for depository institutions 
                                which did not receive an exemption 
                                under subparagraph (C); and
                            ``(ii) the whole number of full semiannual 
                        periods which begin after the date of such 
                        payment and end before January 1, 2000.
                    ``(E) Assessment for certain deposits.--
                            ``(i) In general.--Notwithstanding any 
                        other provision of law, in carrying out the 
                        special assessment under subparagraph (B), the 
                        Corporation may set assessment rates on the 
                        basis of the factors described in clause (iii) 
                        for deposits treated under section 5(d)(3) as 
                        deposits insured by the Savings Association 
                        Insurance Fund.
                            ``(ii) Minimum rate.--Notwithstanding 
                        clause (i), any rate assessed under such clause 
                        may not be less than 2/3 of the assessment rate 
                        imposed under subparagraph (B).
                            ``(iii) Factors.--In setting any assessment 
                        rate under clause (i), the Corporation shall 
                        consider the following factors:
                                    ``(I) The extent to which deposits 
                                treated under section 5(d)(3) as 
                                deposits insured by the Savings 
                                Association Insurance Fund do not 
                                reflect the actual amount of deposits 
                                insured by such fund because of the 
                                growth attribution rule contained in 
                                clause (iii) of such section.
                                    ``(II) The ability of an insured 
                                depository institution to demonstrate 
                                with deposit data the amount of actual 
                                deposits which should be treated as 
                                deposits insured by the Savings 
                                Association Insurance Fund 
                                notwithstanding the growth attribution 
                                rule referred to in subclause (I).
                            ``(iv) No net budget effect.--
                        Notwithstanding any other provision of this 
                        subparagraph, the Corporation shall not set any 
                        assessment rate under clause (i) that would 
                        result in an increased budget outlay or a 
                        decrease in offsetting receipts under this 
                        paragraph.''.

SEC. 2202. ASSESSMENTS ON INSURED DEPOSITORY INSTITUTIONS.

    (a) Financing Corporation Assessments on all FDIC-Insured 
Depository Institutions.--Section 21(f) of the Federal Home Loan Bank 
Act (12 U.S.C. 1441(f)) is amended--
            (1) in the portion of paragraph (2) which precedes 
        subparagraph (A)--
                    (A) by striking ``each Savings Association 
                Insurance Fund member'' and inserting ``each insured 
                depository institution (as defined in section 3(c)(2) 
                of the Federal Deposit Insurance Act)''; and
                    (B) by striking ``such members'' and inserting 
                ``such institutions''; and
            (2) by striking ``, except that--'' and all that follows 
        through the end of the paragraph and inserting ``, except that 
        the Financing Corporation shall have first priority to make the 
        assessment.''.
    (b) Assessment Rates for SAIF Members May Not Be Less Than 
Assessment Rates for BIF Members.--Section 7(b)(2)(F) of the Federal 
Deposit Insurance Act (12 U.S.C. 1817(b)(2)(F)) is amended--
            (1) by striking ``and'' at the end of clause (i);
            (2) by striking the period at the end of clause (ii) and 
        inserting ``; and''; and
            (3) by adding at the end the following new clause:
                            ``(iii) notwithstanding any other provision 
                        of this subsection, assessment rates for 
                        Savings Association Insurance Fund members may 
                        not be less than assessment rates for Bank 
                        Insurance Fund members.''.
    (c) Repeal of Exit Moratorium and Oakar Bank Provisions.--Effective 
January 1, 1998, section 5(d) of the Federal Deposit Insurance Act (12 
U.S.C. 1815(d)) is amended by striking paragraphs (2) and (3).
    (d) Technical and Conforming Amendments.--
            (1) Section 7(b)(2)(D) of the Federal Deposit Insurance Act 
        (12 U.S.C. 1817(b)(2)(D)) is amended by striking ``Savings 
        Association Insurance Fund members'' and inserting ``members of 
        a deposit insurance fund''.
            (2) Section 21(k) of the Federal Home Loan Bank Act (12 
        U.S.C. 1441(k)) is amended--
                    (A) by striking paragraph (1); and
                    (B) by redesignating paragraphs (2) and (3) as 
                paragraphs (1) and (2), respectively.
    (e) Effective Date.--The amendments made by subsections (a), (b), 
and (d) shall take effect on January 1, 1996.

SEC. 2203. MERGER OF BANK INSURANCE FUND AND SAVINGS ASSOCIATION 
                    INSURANCE FUND AFTER RECAPITALIZATION OF SAIF.

    (a) Establishment of Deposit Insurance Fund.--
            (1) In general.--Effective January 1, 1998, section 
        11(a)(5) of the Federal Deposit Insurance Act (12 U.S.C. 
        1821(a)(5)) is amended to read as follows:
            ``(5) Deposit insurance fund.--
                    ``(A) Establishment.--There is established a fund 
                to be known as the deposit insurance fund which shall--
                            ``(i) be maintained and administered by the 
                        Corporation; and
                            ``(ii) initially consist of the assets and 
                        liabilities of the Bank Insurance Fund and 
                        Savings Association Insurance Fund which have 
                        been merged by the Corporation into the deposit 
                        insurance fund pursuant to section 2203(a)(2) 
                        of the Thrift Charter Conversion Act of 1995, 
                        other than any assets of the Savings 
                        Association Insurance Fund which have been 
                        deposited in the special reserve of the deposit 
                        insurance fund pursuant to section 2203(b)(2) 
                        of such Act.
                    ``(B) Uses.--The deposit insurance fund shall be 
                available to the Corporation for use in carrying out 
                the insurance purposes of the Corporation in accordance 
                with this Act with respect to insured depository 
                institutions.
                    ``(C) Deposits.--All amounts assessed against 
                insured depository institutions by the Corporation 
                shall be deposited into the deposit insurance fund.''.
            (2) Merger by corporation.--Except with respect to any 
        assets of the Savings Association Insurance Fund which are 
        required to be deposited in the special reserve of the deposit 
        insurance fund pursuant to subsection (b)(2), the Corporation 
        shall merge the Bank Insurance Fund and the Savings Association 
        Insurance Fund on January 1, 1998, into the deposit insurance 
        fund established by the amendment made by paragraph (1).
    (b) Establishment of Special Reserve of the Deposit Insurance 
Fund.--
            (1) In general.--Effective January 1, 1998, section 
        11(a)(6) of the Federal Deposit Insurance Act (12 U.S.C. 
        1821(a)(6)) is amended to read as follows:
            ``(6) Special reserve of the deposit insurance fund.--
                    ``(A) In general.--There is established a fund to 
                be known as the special reserve of the deposit 
                insurance fund which shall--
                            ``(i) be maintained and administered by the 
                        Corporation; and
                            ``(ii) initially consist of amounts 
                        deposited in the special reserve pursuant to 
                        section 2203(b)(2) of the Thrift Charter 
                        Conversion Act of 1995.
                    ``(B) Emergency use of special reserve.--
                            ``(i) Use authorized.--Subject to clause 
                        (ii) and notwithstanding subparagraph (C), the 
                        Corporation may, in the sole discretion of the 
                        Board of Directors, transfer amounts from the 
                        special reserve for deposit in the deposit 
                        insurance fund for use in accordance with 
                        paragraph (5)(B).
                            ``(ii) Conditions on transfer.--The Board 
                        of Directors may authorize a transfer under 
                        clause (i) only if--
                                    ``(I) the Board of Directors 
                                determines that the reserve ratio of 
                                the deposit insurance fund is less than 
                                50 percent of the designated reserve 
                                ratio; and
                                    ``(II) the Board of Directors finds 
                                that the reserve ratio of the deposit 
                                insurance will likely be less than the 
                                designated reserve ratio of the fund 
                                for each of the 4 calendar quarters 
                                beginning after the date of such 
                                determination.
                    ``(C) No refunds or other uses authorized.--Except 
                as provided in subparagraph (B), the Corporation may 
                not make any payment from the special reserve, make any 
                refund or provide any credit to any insured depository 
                institution with respect to any amount in the special 
                reserve, or use any amount in the special reserve for 
                any other purpose (including the use of any such amount 
                as security for the repayment of any obligation of the 
                Corporation).
                    ``(D) Exclusion of special reserve in calculating 
                the reserve ratio.--No amount in the special reserve 
                may be taken into account in calculating the reserve 
                ratio of the deposit insurance fund under section 7.''.
            (2) Transfer and deposit by corporation.--If, at the time 
        of the merger of the Bank Insurance Fund and the Savings 
        Association Insurance Fund pursuant to subsection (a)(2), the 
        reserve ratio of the Savings Association Insurance Fund exceeds 
        the designated reserve ratio, the Corporation shall transfer 
        from such fund to the special reserve of the deposit insurance 
        fund established by the amendment made by paragraph (1) an 
        amount equal to the amount which causes the reserve ratio of 
        the Savings Association Insurance Fund to exceed the designated 
        reserve ratio.
    (c) Technical and Conforming Amendments.--
            (1) Section 3(y) of the Federal Deposit Insurance Act (12 
        U.S.C. 1813(y)) is amended by striking ``the Bank Insurance 
        Fund or the Savings Association Insurance Fund, as 
        appropriate'' and inserting ``the deposit insurance fund 
        established under section 11(a)(5)''.
            (2) Section 11(a) of the Federal Deposit Insurance Act (12 
        U.S.C. 1821(a)) is amended by striking paragraphs (4)(A) and 
        (7).
            (3) Section 5(d)(1) of the Federal Deposit Insurance Act 
        (12 U.S.C. 1815(d)(1)) is amended--
                    (A) in subparagraph (A), by striking ``reserve 
                ratios'' and all that follows through the period and 
                inserting ``the reserve ratio of the deposit insurance 
                fund.'';
                    (B) by striking subparagraph (B); and
                    (C) by redesignating subparagraph (C) as 
                subparagraph (B).
            (4) Section 7 of the Federal Deposit Insurance Act (12 
        U.S.C. 1817) is amended by striking subsection (l).
            (5) Section 7(b)(2) of the Federal Deposit Insurance Act 
        (12 U.S.C. 1817(b)(2)) is amended--
                    (A) by striking subparagraphs (B), (F), and (G);
                    (B) in clauses (i) and (iv) of subparagraph (A), by 
                striking ``each deposit insurance fund'' and inserting 
                ``the deposit insurance fund'';
                    (C) in subparagraph (A)(iii), by striking ``a 
                deposit insurance fund'' and inserting ``the deposit 
                insurance fund''; and
                    (D) by inserting after subparagraph (E) the 
                following new subparagraph:
                    ``(F) Reserve ratio defined.--For purposes of this 
                subsection, the term `reserve ratio' means the ratio of 
                the net worth of the deposit insurance fund to the 
                aggregate estimated insured deposits held in all 
                insured depository institutions.''.
            (6) Section 7(b)(3) of the Federal Deposit Insurance Act 
        (12 U.S.C. 1817(b)(3)) is amended--
                    (A) in subparagraph (A) by striking ``any deposit 
                insurance fund'' and inserting ``the deposit insurance 
                fund''; and
                    (B) by striking subparagraphs (C) and (D).
            (7) Subparagraph (A) of section 7(b)(6) of the Federal 
        Deposit Insurance Act (12 U.S.C. 1817(b)(6)) (as so 
        redesignated by section 2201 of this subtitle) is amended--
                    (A) in clause (i)--
                            (i) by inserting ``or'' after the semicolon 
                        at the end of subclause (I);
                            (ii) by striking subclause (II); and
                            (iii) by striking ``; and'' at the end of 
                        subclause (III) and inserting a period; and
                    (B) by striking clause (ii).
            (8) Section 11(a)(4)(B) of the Federal Deposit Insurance 
        Act (12 U.S.C. 1821(a)(4)(B)) is amended by striking ``Bank 
        Insurance Fund and the Savings Association Insurance Fund'' and 
        inserting ``deposit insurance fund''.
            (9) Paragraph (1) of section 11(f) of the Federal Deposit 
        Insurance Act (12 U.S.C. 1821(f)) is amended by striking 
        ``depositor, except that--'' and all that follows through the 
        period at the end of the paragraph and inserting 
        ``depositor.''.
            (10) Section 11(i)(3) of the Federal Deposit Insurance Act 
        (12 U.S.C. 1821(i)(3)) is amended--
                    (A) by striking subparagraph (B); and
                    (B) in subparagraph (C), by striking 
                ``subparagraphs (A) and (B)'' and inserting 
                ``subparagraph (A)''.
            (11) Section 11A(a)(3) of the Federal Deposit Insurance Act 
        (12 U.S.C. 1821a(a)(3)) is amended by striking ``Bank Insurance 
        Fund, the Savings Association Insurance Fund,'' and inserting 
        ``deposit insurance fund''.
            (12) Section 11A(f) of the Federal Deposit Insurance Act 
        (12 U.S.C. 1821a(f)) is amended by striking ``Savings 
        Association Insurance Fund'' and inserting ``deposit insurance 
        fund''.
            (13) Section 13(a)(1) of the Federal Deposit Insurance Act 
        (12 U.S.C. 1823(a)(1)) is amended by striking ``Bank Insurance 
        Fund, the Savings Association Insurance Fund,'' and inserting 
        ``deposit insurance fund, the special reserve of the deposit 
        insurance fund,''.
            (14) Section 13(c)(4)(G)(ii) of the Federal Deposit 
        Insurance Act (12 U.S.C. 1823(c)(4)(G)(ii)) is amended--
                    (A) by striking ``appropriate insurance fund'' and 
                inserting ``deposit insurance fund'';
                    (B) by striking ``the members of the insurance fund 
                (of which such institution is a member)'' and inserting 
                ``insured depository institutions'';
                    (C) by striking ``each member's'' and inserting 
                ``each insured depository institution's''; and
                    (D) by striking ``the member's'' each place such 
                term appears and inserting ``the institution's''.
            (15) Section 13(c) of the Federal Deposit Insurance Act (12 
        U.S.C. 1823(c)) is amended by striking paragraph (11).
            (16) Section 13(h) of the Federal Deposit Insurance Act (12 
        U.S.C. 1823(h)) is amended by striking ``Bank Insurance Fund'' 
        and inserting ``deposit insurance fund''.
            (17) Section 14(a) of the Federal Deposit Insurance Act (12 
        U.S.C. 1824(a)) is amended--
                    (A) by striking ``Bank Insurance Fund or the 
                Savings Association Insurance Fund'' and inserting 
                ``deposit insurance fund''; and
                    (B) by striking ``each such fund'' and inserting 
                ``the fund''.
            (18) Section 14(b) of the Federal Deposit Insurance Act (12 
        U.S.C. 1824(b)) is amended by striking ``Bank Insurance Fund or 
        Savings Association Insurance Fund'' and inserting ``deposit 
        insurance fund''.
            (19) Section 14(c) of the Federal Deposit Insurance Act (12 
        U.S.C. 1824(c)) is amended by striking paragraph (3).
            (20) Section 14 of the Federal Deposit Insurance Act (12 
        U.S.C. 1824) is amended by striking subsection (d).
            (21) Section 15(c)(5) of the Federal Deposit Insurance Act 
        (12 U.S.C. 1825(c)(5)) is amended--
                    (A) by striking ``Bank Insurance Fund or Savings 
                Association Insurance Fund, respectively,'' and 
                inserting ``deposit insurance fund'';
                    (B) by striking ``Bank Insurance Fund or Savings 
                Association Insurance Fund, respectively;'' and 
                inserting ``deposit insurance fund;''; and
                    (C) by striking ``Bank Insurance Fund or the 
                Savings Association Insurance Fund, respectively,'' and 
                inserting ``deposit insurance fund,''.
            (22) Section 17(a)(1) of the Federal Deposit Insurance Act 
        (12 U.S.C. 1827(a)(1)) is amended by striking ``Bank Insurance 
        Fund, the Savings Association Insurance Fund,'' each place such 
        term appears and inserting ``deposit insurance fund''.
            (23) Section 17(d) of the Federal Deposit Insurance Act (12 
        U.S.C. 1827(d)) is amended by striking ``Bank Insurance Fund, 
        the Savings Association Insurance Fund,'' each place such term 
        appears and inserting ``deposit insurance fund''.
            (24) The heading for section 17(a) of the Federal Deposit 
        Insurance Act (12 U.S.C. 1827(a)) is amended by striking ``BIF, 
        SAIF,'' and inserting ``the Deposit Insurance Fund''.
            (25) Subsections (a)(1) and (d)(1)(A) of section 24 of the 
        Federal Deposit Insurance Act (12 U.S.C. 1831a) are each 
        amended by striking ``appropriate''.
            (26) Section 24(e)(2) of the Federal Deposit Insurance Act 
        (12 U.S.C. 1831a(e)(2)) is amended--
                    (A) in subparagraph (A), by striking ``of which 
                such banks are members''; and
                    (B) in subparagraph (B)(ii), by striking ``of which 
                such bank is a member''.
            (27) Section 24(f)(6)(B) of the Federal Deposit Insurance 
        Act (12 U.S.C. 1831a(f)(6)(B)) is amended by striking ``of 
        which such bank is a member''.
            (28) Section 31 of the Federal Deposit Insurance Act (12 
        U.S.C. 1831h) is hereby repealed.
            (29) Section 36(i)(3) of the Federal Deposit Insurance Act 
        (12 U.S.C. 1831m(i)(3)) is amended by striking ``affected''.
            (30) Section 38 of the Federal Deposit Insurance Act (12 
        U.S.C. 1831o) is amended by striking subsection (o).
            (31) Section 21B(f)(2)(C)(ii) of the Federal Home Loan Bank 
        Act (12 U.S.C. 1441b(f)(2)(C)(ii)) is amended to read as 
        follows:
                            ``(C) Payments by federal home loan 
                        banks.--To the extent the amounts available 
                        pursuant to subparagraphs (A) and (B) are 
                        insufficient to cover the amount of interest 
                        payments, each Federal home loan bank shall pay 
                        to the Funding Corporation each calendar year 
                        an amount equal to 22.63 percent of the bank's 
                        net earnings for the year for which such amount 
                        is required to be paid.''.
    (d) Effective Date of Amendments.--The amendments made by 
subsection (c) shall take effect on January 1, 1998.

SEC. 2204. REFUND OF AMOUNTS IN DEPOSIT INSURANCE FUND IN EXCESS OF 
                    DESIGNATED RESERVE AMOUNT.

    Subsection (e) of section 7 of the Federal Deposit Insurance Act 
(12 U.S.C. 1817(e)) is amended to read as follows:
    ``(e) Refunds.--
            ``(1) Overpayments.--In the case of any payment of an 
        assessment by an insured depository institution in excess of 
        the amount due to the Corporation, the Corporation may--
                    ``(A) refund the amount of the excess payment to 
                the insured depository institution; or
                    ``(B) credit such excess amount toward the payment 
                of subsequent semiannual assessments until such credit 
                is exhausted.
            ``(2) Balance in insurance fund in excess of designated 
        reserve.--
                    ``(A) In general.--Subject to subparagraph (B), if 
                as of the end of any semiannual period the amount of 
                the actual reserves in--
                            ``(i) the Bank Insurance Fund (until the 
                        merger of such fund into the deposit insurance 
                        fund pursuant to section 2203(a)(2) of the 
                        Thrift Charter Conversion Act of 1995); or
                            ``(ii) the deposit insurance fund (after 
                        the establishment of such fund under section 
                        2203(a)(1) of such Act),
                exceeds the balance required to meet the designated 
                reserve ratio applicable with respect to such fund, 
                such excess amount shall be refunded to members of the 
                fund by the Corporation on such basis as the Board of 
                Directors determines to be appropriate, taking into 
                account the factors considered under the risk-based 
                assessment system.
                    ``(B) Refund not to exceed previous semiannual 
                assessment.--The amount of any refund under this 
                paragraph to any member of a deposit insurance fund for 
                any semiannual period may not exceed the total amount 
                of assessments paid by such member to the insurance 
                fund with respect to such period.''.

SEC. 2205. ASSESSMENTS AUTHORIZED ONLY IF NEEDED TO MAINTAIN THE 
                    RESERVE RATIO OF A DEPOSIT INSURANCE FUND.

    (a) In General.--Section 7(b)(2)(A)(i) of the Federal Deposit 
Insurance Act (12 U.S.C. 1817(b)(2)(A)(i)) is amended in the portion of 
such section preceding subclause (I) by inserting ``when necessary, and 
only to the extent necessary'' after ``insured depository 
institutions''.
    (b) Limitation on Assessment.--Section 7(b)(2)(A)(iii) of the 
Federal Deposit Insurance Act (12 U.S.C. 1817(b)(2)(A)(iii)) is amended 
to read as follows:
                            ``(iii) Limitation on assessment.--The 
                        Board of Directors shall not set semiannual 
                        assessments with respect to a deposit insurance 
                        fund in excess of the amount needed--
                                    ``(I) to maintain the reserve ratio 
                                of the fund at the designated reserve 
                                ratio; or
                                    ``(II) if the reserve ratio is less 
                                than the designated reserve ratio, to 
                                increase the reserve ratio to the 
                                designated reserve ratio.''.

          CHAPTER 2--STATUS OF BANKS AND SAVINGS ASSOCIATIONS

SEC. 2221. TERMINATION OF FEDERAL SAVINGS ASSOCIATIONS; TREATMENT OF 
                    STATE SAVINGS ASSOCIATIONS AS BANKS FOR PURPOSES OF 
                    FEDERAL BANKING LAW.

    (a) Termination of Federal Savings Association Charters.--
            (1) In general.--Each Federal savings association shall--
                    (A) convert to a national bank charter;
                    (B) convert to a State depository institution 
                charter; or
                    (C) surrender the charter of such savings 
                association and liquidate the institution.
            (2) Conversion to national bank by operation of law.--If 
        any Federal savings association has not taken any action 
        required under paragraph (1) as of January 1, 1998, the savings 
        association shall--
                    (A) become a national bank on such date by 
                operation of law;
                    (B) immediately file articles of association and an 
                organizational certificate with the Comptroller of the 
                Currency in accordance with sections 5133, 5134, and 
                5135 of the Revised Statutes of the United States; and
                    (C) cease to exist as a Federal savings association 
                as of such date.
            (3) Prohibition on new charters of federal savings 
        associations.--The Director of the Office of Thrift Supervision 
        may not grant any charter for a Federal savings association for 
        which an application was received after the date of the 
        enactment of this Act.
    (b) Treatment of State Savings Associations as Banks For Purposes 
of Federal Banking Law.--
            (1) Amendments to federal deposit insurance act.--Section 3 
        of the Federal Deposit Insurance Act (12 U.S.C. 1813) is 
        amended--
                    (A) by striking paragraph (2) of subsection (a) and 
                inserting the following new paragraph:
            ``(2) State bank.--
                    ``(A) In general.--The term `State bank' means any 
                bank, banking association, trust company, savings bank, 
                industrial bank (or similar depository institution 
                which the Board of Directors finds to be operating 
                substantially in the same manner as an industrial 
                bank), building and loan association, savings and loan 
                association, homestead association, cooperative bank, 
                or other banking institution--
                            ``(i) which is engaged in the business of 
                        receiving deposits, other than trust funds (as 
                        defined in this section); and
                            ``(ii) which--
                                    ``(I) is incorporated under the 
                                laws of any State;
                                    ``(II) is organized and operating 
                                according to the laws of the State in 
                                which such institution is chartered or 
                                organized; or
                                    ``(III) is operating under the Code 
                                of Law for the District of Columbia 
                                (except a national bank).
                    ``(B) Certain insured banks included.--The term 
                `State bank' includes any cooperative bank or other 
                unincorporated bank the deposits of which were insured 
                by the Corporation on the day before the date of the 
                enactment of the Financial Institutions Reform, 
                Recovery, and Enforcement Act of 1989.
                    ``(C) Certain uninsured banks excluded.--The term 
                `State bank' does not include any cooperative bank or 
                other unincorporated bank the deposits of which were 
                not insured by the Corporation on the day before the 
                date of the enactment of the Financial Institutions 
                Reform, Recovery, and Enforcement Act of 1989.''; and
                    (B) in subsection (q)--
                            (i) by inserting ``and'' after the 
                        semicolon at the end of paragraph (2);
                            (ii) by striking ``; and'' at the end of 
                        paragraph (3) and inserting a period; and
                            (iii) by striking paragraph (4).
            (2) Amendments to the bank holding company act of 1956.--
        Section 2 of the Bank Holding Company Act of 1956 (12 U.S.C. 
        1841) is amended--
                    (A) by striking subparagraph (E) of subsection 
                (a)(5); and
                    (B) by striking subparagraphs (B) and (J) of 
                subsection (c)(2).
            (3) Amendments to the federal reserve act.--The 2d and 3d 
        paragraphs of the 1st section of the Federal Reserve Act (12 
        U.S.C. 221) are each amended by inserting ``(as defined in 
        section 3(a)(2) of the Federal Deposit Insurance Act)'' after 
        ``State bank''.

SEC. 2222. TREATMENT OF CERTAIN ACTIVITIES AND AFFILIATIONS OF BANK 
                    HOLDING COMPANIES RESULTING FROM THIS ACT.

    Section 4 of the Bank Holding Company Act of 1956 (12 U.S.C. 1843) 
is amended by adding at the end the following new subsection:
    ``(k) Treatment of Companies Resulting From Savings and Loan 
Holding Companies.--
            ``(1) In general.--Notwithstanding any other provision of 
        this section (other than paragraph (5)) or any other provision 
        of Federal law including sections 20 and 32 of the Banking Act 
        of 1933, a qualified bank holding company may, after such 
        company becomes a bank holding company--
                    ``(A) maintain or enter into any nonbanking 
                affiliation which such company was authorized to 
                maintain or enter into as of September 22, 1995, or was 
                authorized to maintain following a merger of insured 
                depository institution subsidiaries pursuant to an 
                application filed no later than such date; and
                    ``(B) engage, directly or through any affiliate 
                described in subparagraph (A) which is not a bank, in 
                any activity in which such company or any affiliate 
                described in subparagraph (A) was authorized to engage 
                as of September 22, 1995, or in which such company was 
                authorized to engage following a merger of insured 
                depository institution subsidiaries pursuant to an 
                application filed no later than such date,
        if the requirements of paragraph (4) are met.
            ``(2) Qualified bank holding company defined.--For purposes 
        of this subsection, the term `qualified bank holding company' 
        means--
                    ``(A) any company which--
                            ``(i) as of September 13, 1995, is a 
                        savings and loan holding company and is not a 
                        bank holding company; and
                            ``(ii) becomes a bank holding company after 
                        such date; and
                    ``(B) any bank holding company which as of 
                September 13, 1995--
                            ``(i) is a savings and loan holding 
                        company; and
                            ``(ii) is exempt from this section pursuant 
                        to an order issued by the Board under 
                        subsection (d).
            ``(3) No loss of subsection (d) exemption.--No qualified 
        bank holding company described in paragraph (2)(B) shall lose 
        the grounds for the exemption under subsection (d) because a 
        savings association which such company controlled, directly or 
        indirectly, as of September 13, 1995, becomes a bank after such 
        date so long as such bank continues to meet the requirements of 
        subparagraphs (A) and (B) of paragraph (4).
            ``(4) Prerequisites for continuation of grandfathered 
        activities and affiliations.--This subsection shall cease to 
        apply with respect to a qualified bank holding company if, at 
        any time after such company first meets the definition of a 
        qualified bank holding company--
                    ``(A) any insured depository institution controlled 
                by such company which, as of the day before the company 
                first meets the definition of a qualified bank holding 
                company, was subject to the requirements contained in 
                section 10(m) of the Home Owners' Loan Act, as in 
                effect on such date, (and regulations in effect on such 
                date under such section) for treatment as a qualified 
                thrift lender under such section fails to meet such 
                requirements;
                    ``(B) any insured depository institution controlled 
                by such company fails to comply with any limitation or 
                restriction on the type or amounts of loans or 
                investments of the institution to which such 
                institution was subject as of the date of the enactment 
                of the Thrift Charter Conversion Act of 1995; or
                    ``(C) the company or any subsidiary of the company 
                acquires more than 5 percent of the shares or assets of 
                any bank or insured institution after September 13, 
                1995.
            ``(5) Nontransferable.--This subsection shall not apply 
        with respect to any qualified bank holding company if, after 
        September 13, 1995, any person acquires, directly or 
        indirectly, control of the company or the company is the 
        subject of any merger, consolidation, or other similar 
        transaction.
            ``(6) Prohibition on certain insured depository 
        institutions identifying themselves as national banks.--
                    ``(A) In general.--Notwithstanding the requirement 
                of section 5134 of the Revised Statutes of the United 
                States--
                            ``(i) the name of an insured depository 
                        institution subsidiary of a qualified bank 
                        holding company which--
                                    ``(I) as of the date of the 
                                enactment of the Thrift Charter 
                                Conversion Act of 1995, is a savings 
                                and loan holding company described in 
                                section 10(c)(3) of the Home Owners' 
                                Loan Act (as in effect on such date); 
                                and
                                    ``(II) is subject to the 
                                restrictions contained in paragraph 
                                (3),
                        may not include the term `national'; and
                            ``(ii) such insured depository institution 
                        may not be identified as a national bank on any 
                        sign displayed by the institution or in any 
                        advertisement or other publication of the 
                        institution.
                    ``(B) Depository institution not liable for 
                fraudulent misrepresentation for not representing 
                itself as a national bank.--An insured depository 
                institution which is subject to subparagraph (A) shall 
                not be liable for any civil or criminal penalty under 
                any Federal or State consumer protection law, or in any 
                criminal or civil action, for fraudulently 
                misrepresenting the nature of the charter of the 
                institution, for falsely advertising the status of the 
                institution, for making a false statement with respect 
                to the status of the institution, or for any similar 
                offense by reason of the institution's compliance with 
                such subparagraph.
            ``(7) Enforcement.--In addition to any other power of the 
        Board, the Board may enforce compliance with the provisions of 
        this subsection with respect to any qualified bank holding 
        company and any bank controlled by such company under section 8 
        of the Federal Deposit Insurance Act.''.

SEC. 2223. TRANSITION PROVISIONS FOR ACTIVITIES OF SAVINGS ASSOCIATIONS 
                    WHICH CONVERT INTO OR BECOME TREATED AS BANKS.

    Notwithstanding any other provision of Federal law, any insured 
depository institution which, as of September 13, 1995, is a savings 
association (as defined in section 3(b) of the Federal Deposit 
Insurance Act (as in effect on such date)) and after such date converts 
to a national or State bank charter or becomes treated as a State bank 
pursuant to the amendment made by section 2221(b) may continue to 
engage, directly or indirectly, in any activity in which such 
institution was lawfully engaged as of such date during the 5-year 
period beginning on the effective date of such conversion or the 
effective date of such amendments, as the case may be.

SEC. 2224. REGISTRATION OF BANK HOLDING COMPANIES RESULTING FROM 
                    CONVERSIONS OF SAVINGS ASSOCIATIONS TO BANKS OR 
                    TREATMENT OF SAVINGS ASSOCIATIONS AS BANKS.

    Section 3 of the Bank Holding Company Act of 1956 (12 U.S.C. 1842) 
is amended by adding at the end the following new subsections:
    ``(h) Registration of Certain Bank Holding Companies.--A company 
which, as of September 13, 1995, is a savings and loan holding company 
(as defined in section 10(a)(1)(D) of Home Owners' Loan Act (as in 
effect on such date)) and is not a bank holding company shall not be 
required to obtain the approval of the Board under subsection (a) to 
become a bank holding company after September 13, 1995, as a result of 
the conversion of any insured depository institution subsidiary of such 
company into a bank or by virtue of the treatment of any insured 
depository institution subsidiary of such company as a bank pursuant to 
the amendments made by the Thrift Charter Conversion Act of 1995, if 
such company--
            ``(1) registers as a bank holding company with the Board in 
        accordance with section 5(a); and
            ``(2) does not acquire, directly or indirectly, ownership 
        or control of any additional insured depository institution or 
        other company in connection with such conversion or treatment.
    ``(i) Regulation of Qualified Bank Holding Companies.--The Board 
shall regulate qualified bank holding companies (as defined in section 
4(k)(2)) in a manner consistent with--
            ``(1) the regulation of such companies by the Director of 
        the Office of Thrift Supervision before the date of the 
        enactment of the Thrift Charter Conversion Act of 1995; and
            ``(2) the safety and soundness of insured depository 
        institution subsidiaries of such companies.''.

SEC. 2225. ADDITIONAL TRANSITION PROVISIONS AND SPECIAL RULES.

    (a) Mutual National Banks Authorized; Conversion of Mutual Savings 
Associations Into National Banks.--
            (1) In general.--Chapter one of title LXII of the Revised 
        Statutes of the United States (12 U.S.C. 21 et seq.) is amended 
        by inserting after section 5133 the following new section:

``SEC. 5133A. MUTUAL NATIONAL BANKS.

    ``(a) In General.--Notwithstanding the paragraph designated the 
``Third'' of section 5134, the Comptroller of the Currency may charter 
national banks organized in the mutual form either de novo or through a 
conversion of any stock national or State bank (as defined in section 3 
of the Federal Deposit Insurance Act) or any State mutual bank or 
credit union, subject to regulations prescribed by the Comptroller of 
the Currency in accordance with this section.
    ``(b) Regulations.--
            ``(1) Transition rules.--National banks organized in the 
        mutual form shall be subject to the regulations of the Director 
        of the Office of Thrift Supervision governing corporate 
        organization, governance, and conversion of mutual 
        institutions, as in effect on September 13, 1995, including 
        parts 543, 544, 546, 563b, and 563c of chapter V of title 12 of 
        the Code of Federal Regulations (as in effect on such date), 
        during the 3-year period beginning on the date of the enactment 
        of the Thrift Charter Conversion Act of 1995.
            ``(2) Regulations of the comptroller.--The Comptroller of 
        the Currency shall prescribe appropriate regulations for 
        national banks organized in the mutual form, effective as of 
        the end of the 3-year period referred to in paragraph (1).
            ``(3) Applicability of capital stock requirements.--The 
        Comptroller of the Currency shall prescribe regulations 
        regarding the manner in which requirements of title LXII of the 
        Revised Statutes of the United States with respect to capital 
        stock, and limitations imposed on national banks under such 
        title based on capital stock, shall apply to national banks 
        organized in mutual form pursuant to subsection (a).
    ``(c) Conversions.--
            ``(1) Conversion to stock national bank.--Subject to 
        subsection (b)(1) and, after the end of the 3-year period 
        referred to in such subsection, such regulations as the 
        Comptroller of the Currency may prescribe for the protection of 
        depositors' rights and for any other purpose the Comptroller of 
        the Currency may consider appropriate, any national bank which 
        is organized in mutual form pursuant to paragraph (1) may 
        reorganize as a stock national bank.
            ``(2) Conversions to state banks.--Any national mutual bank 
        may convert to a State bank charter in accordance with 
        regulations prescribed by the Comptroller of the Currency and 
        applicable State law.''.
            (2) Mutual bank holding companies.--Subsection (g) of 
        section 3 of the Bank Holding Company Act of 1956 (12 U.S.C. 
        1842(g)) is amended to read as follows:
    ``(g) Mutual Bank Holding Companies.--
            ``(1) In general.--A national mutual bank may reorganize so 
        as to become a holding company by--
                    ``(A) chartering an interim national bank, the 
                stock of which is to be wholly owned, except as 
                otherwise provided in this section, by the national 
                mutual bank; and
                    ``(B) transferring the substantial part of the 
                national mutual bank's assets and liabilities, 
                including all of the bank's insured liabilities, to the 
                interim national bank.
            ``(2) Directors and certain account holders' approval of 
        plan required.--A reorganization is not authorized under this 
        subsection unless--
                    ``(A) a plan providing for such reorganization has 
                been approved by a majority of the board of directors 
                of the national mutual bank; and
                    ``(B) in the case of a national mutual bank in 
                which holders of accounts and obligors exercise voting 
                rights, such plan has been submitted to and approved by 
                a majority of such individuals at a meeting held at the 
                call of the directors in accordance with the procedures 
                prescribed by the bank's charter and bylaws.
            ``(3) Notice to the board; disapproval period.--
                    ``(A) Notice required.--
                            ``(i) In general.--At least 60 days before 
                        taking any action described in paragraph (1), a 
                        national mutual bank seeking to establish a 
                        mutual holding company shall provide written 
                        notice to the Board.
                            ``(ii) Contents of notice.--The notice 
                        shall contain such relevant information as the 
                        Board shall require by regulation or by 
                        specific request in connection with any 
                        particular notice.
                    ``(B) Transaction allowed if not disapproved.--
                Unless the Board within such 60-day notice period 
                disapproves the proposed holding company formation, or 
                extends for another 30 days the period during which 
                such disapproval may be issued, the national mutual 
                bank providing such notice may proceed with the 
                transaction, if the requirements of paragraph (2) have 
                been met.
                    ``(C) Grounds for disapproval.--The Board may 
                disapprove any proposed holding company formation only 
                if--
                            ``(i) such disapproval is necessary to 
                        prevent unsafe or unsound practices;
                            ``(ii) the financial or management 
                        resources of the national mutual bank involved 
                        warrant disapproval;
                            ``(iii) the national mutual bank fails to 
                        furnish the information required under 
                        subparagraph (A); or
                            ``(iv) the national mutual bank fails to 
                        comply with the requirement of paragraph (2).
                    ``(D) Retention of capital assets.--In connection 
                with the transaction described in paragraph (1), a 
                national mutual bank may, subject to the approval of 
                the Board, retain capital assets at the holding company 
                level to the extent that the capital retained at the 
                holding company is in excess of the amount of capital 
                required in order for the interim national bank to meet 
                all relevant capital standards established by the 
                Comptroller of the Currency for national banks.
            ``(4) Ownership.--
                    ``(A) In general.--Persons having ownership rights 
                in the national mutual bank under section 5133A of the 
                Revised Statutes of the United States (including 
                paragraph 575.5 of chapter V of title 12 of the Code of 
                Federal Regulations, as in effect on September 13, 
                1995, and applicable to national mutual banks pursuant 
                to such section) or State law shall have the same 
                ownership rights with respect to the mutual holding 
                company.
                    ``(B) Holders of certain accounts.--Holders of 
                savings, demand, or other accounts of--
                            ``(i) a national bank chartered as part of 
                        a transaction described in paragraph (1); or
                            ``(ii) a mutual bank acquired pursuant to 
                        paragraph (5)(B),
                shall have the same ownership rights with respect to 
                the mutual holding company as persons described in 
                subparagraph (A) of this paragraph.
            ``(5) Permitted activities.--A mutual holding company may 
        engage only in the following activities:
                    ``(A) Investing in the stock of a national or State 
                bank.
                    ``(B) Acquiring a mutual bank through the merger of 
                such bank into a national bank subsidiary of such 
                holding company or an interim national bank subsidiary 
                of such holding company.
                    ``(C) Subject to paragraph (6), merging with or 
                acquiring another holding company, one of whose 
                subsidiaries is a national mutual bank.
                    ``(D) Investing in a corporation the capital stock 
                of which is available for purchase by a national mutual 
                bank under Federal law or under the law of any State 
                where the home office of any subsidiary bank is 
                located.
                    ``(E) Engaging in the activities permitted under 
                section 4(c).
            ``(6) Limitations on certain activities of acquired holding 
        companies.--
                    ``(A) New activities.--If a mutual holding company 
                acquires or merges with another holding company under 
                paragraph (5)(C), the holding company acquired or the 
                holding company resulting from such merger or 
                acquisition may only invest in assets and engage in 
                activities which are authorized under paragraph (5).
                    ``(B) Grace period for divesting prohibited assets 
                or discontinuing prohibited activities.--Not later than 
                2 years following a merger or acquisition described in 
                paragraph (5)(C), the acquired holding company or the 
                holding company resulting from such merger or 
                acquisition shall--
                            ``(i) dispose of any asset which is an 
                        asset in which a mutual holding company may not 
                        invest under paragraph (5); and
                            ``(ii) cease any activity which is an 
                        activity in which a mutual holding company may 
                        not engage under paragraph (5).
            ``(7) Chartering and other requirements.--
                    ``(A) In general.--A mutual holding company shall 
                be chartered by the Board and shall be subject to such 
                regulations as the Board may prescribe.
                    ``(B) Other requirements.--Unless the context 
                otherwise requires, a mutual holding company shall be 
                subject to the other requirements of this Act regarding 
                regulation of holding companies.
            ``(8) Capital improvement.--
                    ``(A) Pledge of stock of savings association 
                subsidiary.--This section shall not prohibit a mutual 
                holding company from pledging all or a portion of the 
                stock of a national bank chartered as part of a 
                transaction described in paragraph (1) to raise capital 
                for such bank.
                    ``(B) Issuance of nonvoting shares.--No provision 
                of this Act shall be construed as prohibiting a 
                national bank chartered as part of a transaction 
                described in paragraph (1) from issuing any nonvoting 
                shares or less than 50 percent of the voting shares of 
                such bank to any person other than the mutual holding 
                company.
            ``(9) Insolvency and liquidation.--
                    ``(A) In general.--Notwithstanding any provision of 
                law, upon--
                            ``(i) the default of any national bank--
                                    ``(I) the stock of which is owned 
                                by any mutual holding company; and
                                    ``(II) which was chartered in a 
                                transaction described in paragraph (1);
                            ``(ii) the default of a mutual holding 
                        company; or
                            ``(iii) a foreclosure on a pledge by a 
                        mutual holding company described in paragraph 
                        (8)(A),
                a trustee shall be appointed receiver of such mutual 
                holding company and such trustee shall have the 
                authority to liquidate the assets of, and satisfy the 
                liabilities of, such mutual holding company pursuant to 
                title 11, United States Code.
                    ``(B) Distribution of net proceeds.--Except as 
                provided in subparagraph (C), the net proceeds of any 
                liquidation of any mutual holding company pursuant to 
                subparagraph (A) shall be transferred to persons who 
                hold ownership interests in such mutual holding 
                company.
                    ``(C) Recovery by corporation.--If the Corporation 
                incurs a loss as a result of the default of any savings 
                association subsidiary of a mutual holding company 
                which is liquidated pursuant to subparagraph (A), the 
                Corporation shall succeed to the ownership interests of 
                the depositors of such savings association in the 
                mutual holding company, to the extent of the 
                Corporation's loss.
            ``(10) State mutual bank holding company.--
                    ``(A) In general.--Notwithstanding any provision of 
                Federal law, a State bank operating in mutual form may 
                reorganize so as to form a holding company under State 
                law.
                    ``(B) Regulation of state mutual holding company.--
                A corporation organized as a holding company in 
                accordance with subparagraph (A) shall be regulated on 
                the same terms and be subject to the same limitations 
                as any other holding company which controls a bank.
            ``(11) Regulations.--
                    ``(A) Transition rules.--Mutual bank holding 
                companies organized under this subsection shall be 
                subject to the regulations of the Director of the 
                Office of Thrift Supervision governing corporate 
                organization, governance, and conversion of mutual 
                institutions, as in effect on September 13, 1995, 
                including part 575 of chapter V of title 12 of the Code 
                of Federal Regulations (as in effect on such date), 
                during the 3-year period beginning on the date of the 
                enactment of the Thrift Charter Conversion Act of 1995.
                    ``(B) Regulations of the board.--The Board shall 
                prescribe appropriate regulations for mutual holding 
                companies, effective at the end of the 3-year period 
                referred to in subparagraph (A).
            ``(12) Definitions.--For purposes of this subsection--
                    ``(A) Mutual holding company.--The term `mutual 
                holding company' means a corporation organized as a 
                holding company under this subsection.
                    ``(B) Default.--The term `default' means an 
                adjudication or other official determination of a court 
                of competent jurisdiction or other public authority 
                pursuant to which a conservator, receiver, or other 
                legal custodian is appointed.
                    ``(C) National mutual bank.--The term `national 
                mutual bank' means a national bank organized in mutual 
                form under section 5133A of the Revised Statutes of the 
                United States.''.
            (3) Limitation on federal regulation of state banks.--
        Except as otherwise provided in Federal law, the Comptroller of 
        the Currency, Board of Governors of the Federal Reserve System, 
        and Federal Deposit Insurance Corporation may not adopt or 
        enforce any regulation which contravenes the corporate 
        governance rules prescribed by State law or regulation for 
        State banks unless the Comptroller, Board, or Corporation finds 
        that such Federal regulation is necessary to assure the safety 
        and soundness of such State banks.
            (4) Conversions of mutual savings associations to mutual 
        national banks by operation of law.--Notwithstanding any other 
        provision of Federal or State law, any savings association (as 
        defined in section 3 of the Federal Deposit Insurance Act (as 
        in effect on September 13, 1995)) which is organized in mutual 
        form as of the date of the enactment of this Act may become a 
        national mutual bank by operation of law if the association--
                    (A) files the articles of association and 
                organization certificate with the Comptroller of the 
                Currency before January 1, 1998, in accordance with 
                chapter one of title LXII of the Revised Statutes of 
                the United States; and
                    (B) provides such other document or information as 
                the Comptroller of the Currency may prescribe in 
                regulations consistent with this section and section 
                5133A of the Revised Statutes of the United States (as 
                added by paragraph (1) of this subsection).
            (5) Clerical amendment.--The table of sections for chapter 
        one of title LXII of the Revised Statutes of the United States 
        (12 U.S.C. 21 et seq.) is amended by inserting after the item 
        relating to section 5133 the following new item:

``5133A.  Mutual national banks.''.

    (b) Membership in Federal Home Loan Banks.--Any insured depository 
institution which--
            (1) as of the date of the enactment of this Act, is a 
        Federal savings association which, pursuant to section 6(e) of 
        the Federal Home Loan Bank Act, may not voluntarily withdraw 
        from membership in a Federal home loan bank; and
            (2) after such date converts from a Federal savings 
        association to a national bank,
shall continue to be subject to the prohibition under such section on 
voluntary withdrawal from such membership as though such bank were 
still a Federal savings association until the bank ceases to be a 
national bank.
    (c) Branches.--
            (1) In general.--Notwithstanding any provision of the 
        Federal Deposit Insurance Act, the Bank Holding Company Act of 
        1956, or any other Federal or State law, any depository 
        institution which--
                    (A) as of the date of the enactment of this Act, is 
                a savings association; and
                    (B) becomes a bank before January 1, 1998, or, 
                pursuant to the amendments made by this subsection, is 
                treated as a bank as of such date under the Federal 
                Deposit Insurance Act,
        and any depository institution or bank holding company which 
        acquires such depository institution, may continue, after the 
        depository institution becomes or commences to be treated as a 
        bank, to operate any branch which the savings association 
        operated as a branch on September 13, 1995.
            (2) No additional branches.--Paragraph (1) shall not be 
        construed as authorizing the establishment, acquisition, or 
        operation of any additional branch of a depository institution 
        in any State by virtue of the operation by such institution of 
        a branch in such State pursuant to such paragraph except to the 
        extent such establishment, acquisition, or operation is 
        permitted under the Federal Deposit Insurance Act, Bank Holding 
        Company Act of 1956, and any other applicable Federal or State 
        law without regard to such branch.
    (d) Transition Provision Relating to Limitations on Loans to 1 
Borrower.--Section 5200 of the Revised Statutes of the United States 
(12 U.S.C. 84) is amended by adding at the end the following new 
subsection:
    ``(e) Transition Provision for Savings Associations Converting to 
National Banks.--In the case of any depository institution which, as of 
September 13, 1995, is a savings association (as defined in section 
3(b) of the Federal Deposit Insurance Act (as in effect on such date)) 
and becomes a national bank on or before January 1, 1998, any loan, or 
legally binding commitment to make a loan, made or entered into by such 
institution which is outstanding on the date the institution becomes a 
national bank may continue to be held without regard to any limitation 
contained in this section during the 3-year period beginning on such 
date.''.

SEC. 2226. TECHNICAL AND CONFORMING AMENDMENTS.

    (a) Amendments to the Federal Deposit Insurance Act.--
            (1) Section 3(z) of the Federal Deposit Insurance Act (12 
        U.S.C. 1813(z)) is amended by striking ``the Director of the 
        Office of Thrift Supervision,''.
            (2) Section 8(b) of the Federal Deposit Insurance Act (12 
        U.S.C. 1818(b)) is amended by striking paragraph (9).
            (3) Section 13 of the Federal Deposit Insurance Act (12 
        U.S.C. 1823) is amended by striking subsection (k).
            (4) Subsections (c)(2) and (i)(2) of section 18 of the 
        Federal Deposit Insurance Act (12 U.S.C. 1828) are each 
        amended--
                    (A) in subparagraph (B), by inserting ``and'' after 
                the semicolon;
                    (B) in subparagraph (C), by striking ``; and'' and 
                inserting a period; and
                    (C) by striking subparagraph (D).
            (5) Section 18 of the Federal Deposit Insurance Act (12 
        U.S.C. 1828) is amended by striking subsection (m).
            (6) The Federal Deposit Insurance Act (12 U.S.C. 1811 et 
        seq.) is amended by striking section 28.
    (b) Amendments to the Bank Holding Company Act of 1956.--
            (1) Section 2 of the Bank Holding Company Act of 1956 (12 
        U.S.C. 1841) is amended by striking subsections (i) and (j).
            (2) Section 4(c)(8) of the Bank Holding Company Act of 1956 
        (12 U.S.C. 1843(c)(8)) is amended by striking the sentence 
        preceding the penultimate sentence.
            (3) Section 4(f) of the Bank Holding Company Act of 1956 
        (12 U.S.C. 1843(f)) is amended--
                    (A) in paragraph (2)(A)(i), by striking ``or an 
                insured institution'' and all that follows through ``of 
                this subsection)'';
                    (B) in paragraph (2)(A)(ii)--
                            (i) by striking ``or a savings 
                        association'' where such term appears in the 
                        portion of such paragraph which precedes 
                        subclause (I);
                            (ii) by inserting ``and'' at the end of 
                        subclause (VI);
                            (iii) by striking subclauses (VIII), (IX), 
                        and (X); and
                            (iv) by striking ``(V), and (VIII)'', where 
                        such term appears in the portion of such 
                        paragraph which appears after the end of 
                        subclause (VII), and inserting ``and (V)''; and
                    (C) by striking paragraphs (10), (11), (12), and 
                (13).
            (4) Section 4(i) of the Bank Holding Company Act of 1956 
        (12 U.S.C. 1843(i)) is amended--
                    (A) by striking paragraphs (1) and (2); and
                    (B) in paragraph (3)(A), by striking ``any Federal 
                savings association'' and all that follows through the 
                period at the end of such paragraph and inserting 
                ``such association was authorized to engage under this 
                section as of September 15, 1995.''.
    (c) Other Technical and Conforming Amendments.--
            (1) Section 804(a) of the Alternative Mortgage Transaction 
        Parity Act of 1982 (12 U.S.C. 3803) is amended--
                    (A) in the portion of such subsection which 
                precedes paragraph (1)--
                            (i) by striking ``, and other nonfederally 
                        chartered housing creditors,''; and
                            (ii) by inserting ``and in order to permit 
                        other nonfederally chartered housing creditors 
                        to make, purchase, and enforce alternative 
                        mortgage transactions,'' after ``enforcing 
                        alternative mortgage transactions, ''; and
                    (B) in paragraph (1), by inserting ``(as such term 
                is defined in section 3(a) of the Federal Deposit 
                Insurance Act)'' after ``with respect to banks''.
            (2) Section 205 of the Depository Institution Management 
        Interlocks Act (12 U.S.C. 3204) is amended--
                    (A) in the portion of paragraph (8)(A) which 
                precedes clause (i), by striking ``A diversified 
                savings'' and all that follows through ``with respect 
                to'' and inserting ``A depository institution holding 
                company which, as of September 13, 1995, and at all 
                times thereafter, is a diversified savings and loan 
                holding company (as defined in section 10(1)(F) of Home 
                Owners' Loan Act, as such section is in effect on such 
                date) with respect to''; and
                    (B) by striking paragraph (9).
            (3) Section 19(b)(1)(A) of the Federal Reserve Act (12 
        U.S.C. 461(b)(1)(A)) is amended--
                    (A) by inserting ``and'' after the semicolon at the 
                end of clause (v); and
                    (B) by striking clause (vi).
            (4) Subparagraphs (A), (B), (C) of section 10(e)(5) of the 
        Federal Home Loan Bank Act (12 U.S.C. 1430(e)(5)) are each 
        amended by inserting before the period at the end ``(as such 
        section is in effect on September 13, 1995)''.

SEC. 2227. REFERENCES TO SAVINGS ASSOCIATIONS AND STATE BANKS IN 
                    FEDERAL LAW.

    Effective January 1, 1998, any reference in any Federal banking law 
to--
            (1) the term ``savings association'' shall be deemed to be 
        a reference to a bank as defined in section 3(a) of the Federal 
        Deposit Insurance Act; and
            (2) the term ``State bank'' shall be deemed to include any 
        depository institution included in the definition of such term 
        in section 3(a)(2) of such Act.

SEC. 2228. REPEAL OF HOME OWNERS' LOAN ACT.

    Effective January 1, 1998, the Home Owners' Loan Act (12 U.S.C. 
1461 et seq.) is hereby repealed.

SEC. 2229. EFFECTIVE DATE; DEFINITIONS.

    (a) Effective Date of Amendments.--The amendments made by this 
chapter shall take effect on January 1, 1998.
    (b) Definitions.--For purposes of this chapter, the terms 
``appropriate Federal banking agency'', ``bank holding company'', 
``depository institution'', ``Federal savings association'', ``insured 
depository institution'', ``savings association'', and ``State bank'' 
have the same meanings as in section 3 of the Federal Deposit Insurance 
Act (as in effect on the date of the enactment of this Act).

       CHAPTER 3--TRANSFER OF FUNCTIONS, PERSONNEL, AND PROPERTY

SEC. 2241. OFFICE OF THRIFT SUPERVISION ABOLISHED.

    Effective January 1, 1998, the Office of Thrift Supervision and the 
position of Director of the Office of Thrift Supervision are hereby 
abolished.

SEC. 2242. DETERMINATION OF TRANSFERRED FUNCTIONS AND EMPLOYEES.

    (a) All Office of Thrift Supervision Employees Shall Be 
Transferred.--All employees of the Office of Thrift Supervision shall 
be identified for transfer under subsection (b) to the Office of the 
Comptroller of the Currency, the Federal Deposit Insurance Corporation, 
or the Board of Governors of the Federal Reserve System.
    (b) Functions and Employees Transferred.--
            (1) In general.--The Director of the Office of Thrift 
        Supervision, the Comptroller of the Currency, the Chairperson 
        of the Federal Deposit Insurance Corporation, and the Chairman 
        of the Board of Governors of the Federal Reserve System shall 
        jointly determine the functions or activities of the Office of 
        Thrift Supervision, and the number of employees of such Office 
        necessary to perform or support such functions or activities, 
        which are transferred from the Office to the Office of the 
        Comptroller of the Currency, the Federal Deposit Insurance 
        Corporation, or the Board of Governors of the Federal Reserve 
        System, as the case may be.
            (2) Allocation of employees.--The Comptroller of the 
        Currency, the Chairperson of the Federal Deposit Insurance 
        Corporation, and the Chairman of the Board of Governors of the 
        Federal Reserve System shall allocate the employees of the 
        Office of Thrift Supervision consistent with the number 
        determined pursuant to paragraph (1) in a manner which such 
        Comptroller, Chairperson, and Chairman, in their sole 
        discretion, deem equitable, except that, within work units, the 
        agency preferences of individual employees shall be 
        accommodated as far as possible.
    (c) Disposition of Affairs.--
            (1) In general.--In winding up the affairs of the Office of 
        Thrift Supervision, the Director of the Office of Thrift 
        Supervision shall consult and cooperate with the Comptroller of 
        the Currency, the Federal Deposit Insurance Corporation, and 
        the Board of Governors of the Federal Reserve System, as the 
        case may be, to facilitate the orderly transfer of the 
        functions to such Comptroller, Corporation, or Board.
            (2) Continuing authority of director of the office of 
        thrift supervision.--Except as provided in paragraph (1), no 
        provision of this subtitle shall be construed as affecting the 
        authority vested in the Director of the Office of Thrift 
        Supervision before the date of enactment of this Act which is 
        necessary to carry out the duties of the position until the 
        date upon which the position of Director of the Office of 
        Thrift Supervision is abolished.
            (3) Continuation of agency services.--Any agency, 
        department, or other instrumentality of the United States, or 
        any successor to any such agency, department, or 
        instrumentality, which was providing support services to the 
        Director of the Office of Thrift Supervision on the day before 
        the date such position is abolished shall--
                    (A) continue to provide such services on a 
                reimbursable basis, in accordance with the terms of the 
                arrangement pursuant to which such services were 
                provided until the arrangement is modified or 
                terminated in accordance with such terms, except that 
                effective January 1, 1998, the Comptroller of the 
                Currency, the Federal Deposit Insurance Corporation, or 
                the Board of Governors of the Federal Reserve System, 
                as the case may be, shall be substituted for the 
                Director of the Office of Thrift Supervision as a party 
                to the arrangement; and
                    (B) consult with the Comptroller, the Corporation, 
                or the Board to coordinate and facilitate a prompt and 
                reasonable transition.
    (d) Transfer of Property.--Effective January 1, 1998, all property 
of the Office of Thrift Supervision shall be transferred to the 
Comptroller of the Currency, the Federal Deposit Insurance Corporation, 
or the Board of Governors of the Federal Reserve System, as determined 
in accordance with subsections (a) and (b).

SEC. 2243. SAVINGS PROVISIONS.

    (a) Existing Rights, Duties, and Obligations Not Affected.--No 
provision of this title shall be construed as affecting the validity of 
any right, duty, or obligation of the United States, the Director of 
the Office of Thrift Supervision, or any person, which existed on the 
day before the date upon which the position of Director of the Office 
of Thrift Supervision and the Office of Thrift Supervision are 
abolished.
    (b) Continuation of Suits.--No action or other proceeding commenced 
by or against the Director of the Office of Thrift Supervision shall 
abate by reason of enactment of this Act, except that, effective 
January 1, 1998, the Comptroller of the Currency, the Federal Deposit 
Insurance Corporation, or the Board of Governors of the Federal Reserve 
System, as the case may be, shall be substituted as a party to any such 
action or proceeding.
    (c) Continuation of Administrative Rules.--All orders, resolutions, 
determinations, regulations, interpretative rules, other 
interpretations, guidelines, procedures, supervisory and enforcement 
actions, and other advisory material (other than any regulation 
implementing or prescribed pursuant to section 3(f) of the Home Owners' 
Loan Act (as in effect on September 13, 1995)) which--
            (1) have been issued, made, prescribed, or permitted to 
        become effective by the Office of Thrift Supervision, and
            (2) are in effect on December 31, 1996, (or become 
        effective after such date pursuant to the terms of the order, 
        resolution, determination, rule, other interpretation, 
        guideline, procedure, supervisory or enforcement action, and 
        other advisory material, as in effect on such date), shall--
                    (A) continue in effect according to the terms of 
                such orders, resolutions, determinations, regulations, 
                interpretative rules, other interpretations, 
                guidelines, procedures, supervisory or enforcement 
                actions, or other advisory material;
                    (B) be administered by the Comptroller of the 
                Currency, the Federal Deposit Insurance Corporation, or 
                the Board of Governors of the Federal Reserve System; 
                and
                    (C) be enforceable by or against the Comptroller of 
                the Currency, the Federal Deposit Insurance 
                Corporation, or the Board of Governors of the Federal 
                Reserve System until modified, terminated, set aside, 
                or superseded in accordance with applicable law by the 
                Comptroller, Corporation, or Board, by any court of 
                competent jurisdiction, or by operation of law.
    (d) Treatment of References in Adjustable Rate Mortgages Issued 
Before FIRREA.--For purposes of section 402(e) of Financial 
Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 
1437 note), any reference in such section to--
                    (A) the Director of the Office of Thrift 
                Supervision shall be deemed to be a reference to the 
                Secretary of the Treasury; and
                    (B) a Savings Association Insurance Fund member 
                shall be deemed to be a reference to an insured 
                depository institution (as defined in section 3 of the 
                Federal Deposit Insurance Act).
    (e) Treatment of References in Adjustable Rate Mortgage Instruments 
Issued After FIRREA.--
            (1) In general.--For purposes of adjustable rate mortgage 
        instruments that are in effect as of the date of enactment of 
        this Act, any reference in the instrument to the Director of 
        the Office of Thrift Supervision or Savings Association 
        Insurance Fund members shall be treated as a reference to the 
        Secretary of the Treasury or insured depository institutions 
        (as defined in section 3 of the Federal Deposit Insurance Act), 
        as appropriate.
            (2) Substitution for indexes.--If any index used to 
        calculate the applicable interest rate on any adjustable rate 
        mortgage instrument is no longer calculated and made available 
        as a direct or indirect result of the enactment of this Act, 
        any index--
                    (A) made available by the Secretary of the 
                Treasury; or
                    (B) determined by the Secretary of the Treasury, 
                pursuant to paragraph (4), to be substantially similar 
                to the index which is no longer calculated or made 
                available,
        may be substituted by the holder of any such adjustable rate 
        mortgage instrument upon notice to the borrower.
            (3) Agency action required to provide continued 
        availability of indexes.--Promptly after the enactment of this 
        subsection, the Secretary of the Treasury, the Chairperson of 
        the Federal Deposit Insurance Corporation, and the Comptroller 
        of the Currency shall take such action as may be necessary to 
        assure that the indexes prepared by the Director of the Office 
        of Thrift Supervision immediately prior to the enactment of 
        this subsection and used to calculate the interest rate on 
        adjustable rate mortgage instruments continue to be available.
            (4) Requirements relating to substitute indexes.--If any 
        agency can no longer make available an index pursuant to 
        paragraph (3), an index that is substantially similar to such 
        index may be substituted for such index for purposes of 
        paragraph (2) if the Secretary of the Treasury determines, 
        after notice and opportunity for comment, that--
                    (A) the new index is based upon data substantially 
                similar to that of the original index; and
                    (B) the substitution of the new index will result 
                in an interest rate substantially similar to the rate 
                in effect at the time the original index became 
                unavailable.

SEC. 2244. REFERENCES IN FEDERAL LAW TO DIRECTOR OF THE OFFICE OF 
                    THRIFT SUPERVISION.

    Any reference in any Federal law to the Director of the Office of 
Thrift Supervision or the Office of Thrift Supervision shall be deemed 
to be a reference to the appropriate Federal banking agency (as defined 
in section 3(q) of the Federal Deposit Insurance Act).

SEC. 2245. RECONFIGURATION OF BOARD OF DIRECTORS OF FDIC AS A RESULT OF 
                    REMOVAL OF DIRECTOR OF THE OFFICE OF THRIFT 
                    SUPERVISION.

    (a) In General.--Section 2(a)(1) of the Federal Deposit Insurance 
Act (12 U.S.C. 1812(a)(1)) is amended to read as follows:
            ``(1) In general.--The management of the Corporation shall 
        be vested in a Board of Directors consisting of 3 members--
                    ``(A) 1 of whom shall be the Comptroller of the 
                Currency; and
                    ``(B) 2 of whom shall be appointed by the 
                President, by and with the advice and consent of the 
                Senate, from among individuals who are citizens of the 
                United States.''.
    (b) Technical and Conforming Amendments.--
            (1) Section 2(a)(2) of the Federal Deposit Insurance Act 
        (12 U.S.C. 1812(a)(2)) is amended--
                    (A) by striking ``February 28, 1993'' and inserting 
                ``January 1, 1998''; and
                    (B) by striking ``3'' and inserting ``2''.
            (2) Section 2(d)(2) of the Federal Deposit Insurance Act 
        (12 U.S.C. 1812(d)(2)) is amended--
                    (A) by striking ``or the office of Director of the 
                Office of Thrift Supervision'';
                    (B) by striking ``or such Director'';
                    (C) by striking ``or the Acting Director of the 
                Office of Thrift Supervision, as the case may be''; and
                    (D) by striking ``or Director''.
    (c) Effective Date.--The amendments made by subsections (a) and (b) 
shall take effect on January 1, 1998.
    (d) Designation of Abolished Position.--Unless there is a vacancy 
in the position of an appointed member of the Board of Directors as of 
January 1, 1998, the President, consistent with the requirements of 
section 2(a)(2) of the Federal Deposit Insurance Act, shall designate 
which of the 3 positions of appointed member of such Board of Directors 
shall be abolished pursuant to the amendment made by subsection (a).

                 CHAPTER 4--LOAN LOSS RESERVE TREATMENT

SEC. 2261. SENSE OF THE CONGRESS.

    It is the sense of the Congress that--
            (1) one of the major obstacles to the conversion of thrift 
        institutions into banks is the tax treatment of bad debt 
        reserve deductions of thrift institutions;
            (2) as part of a comprehensive solution to the merger of 
        the Federal deposit insurance funds and thrift and bank 
        charters, section 593 of the Internal Revenue Code of 1986 
        should be repealed; and
            (3) the repeal of section 593 of the Internal Revenue Code 
        of 1986 should be accomplished in such a fashion as would 
        neither threaten the economic viability of thrift institutions 
        which convert to bank charters nor cause the Federal Treasury 
        to lose revenue.

           Subtitle C--Community Reinvestment Act Amendments

SEC. 2301. EXPRESSION OF CONGRESSIONAL INTENT.

    Subsection (b) of section 802 of the Community Reinvestment Act of 
1977 (12 U.S.C. 2901) is amended to read as follows:
    ``(b) It is the purpose of this title to require each appropriate 
Federal financial supervisory agency to use its authority, when 
examining financial institutions, to encourage such institutions to 
help meet the credit needs of the local communities in which they are 
chartered consistent with the safe and sound operation of such 
institutions. When examining financial institutions, a supervisory 
agency shall not impose additional burden, recordkeeping, or reporting 
upon such institutions.''.

SEC. 2302. COMMUNITY REINVESTMENT ACT EXEMPTION.

    The Community Reinvestment Act of 1977 (12 U.S.C. 2901 et seq.) is 
amended by adding at the end the following new section:

``SEC. 809. TREATMENT OF SMALL FINANCIAL INSTITUTIONS.

    ``(a) In General.--In lieu of being evaluated under section 806A 
and receiving a written evaluation under section 807, an eligible 
regulated financial institution shall make a notice, signed by the 
president, available to the public that--
            ``(1) lists the type of credit and services that the 
        institution provides to help meet the credit needs of the local 
        community; and
            ``(2) states that the institution helps meet the credit 
        needs of the local communities in which the institution 
        operates, including low- and moderate-income neighborhoods.
    ``(b) Eligible regulated financial institutions.--
            ``(1) In general.--A regulated financial institution shall 
        be eligible for purposes of subsection (a) if the institution 
        and any bank holding company which controls such institution 
        have aggregate assets of not more than $100,000,000.
            ``(2) Annual adjustment.--The dollar amount in paragraph 
        (1) shall be adjusted annually after December 31, 1994, by the 
        annual percentage increase in the Consumer Price Index for 
        Urban Wage Earners and Clerical Workers published by the Bureau 
        of Labor Statistics.
    ``(c) Exemption From Other Requirements.--A regulated financial 
institution which has complied with the notice requirements of 
subsection (a) shall not be subject to section 804 and any regulations 
prescribed under section 806.''.

SEC. 2303. SELF-CERTIFICATION OF CRA COMPLIANCE.

    Section 804 of the Community Reinvestment Act of 1977 (12 U.S.C. 
2903) is amended by adding at the end the following new subsection (c):
    ``(c) Self-Certification of CRA Compliance.--
            ``(1) Certification.--In lieu of being evaluated under 
        section 806A and receiving a written evaluation under section 
        807, a qualifying financial institution may elect to self-
        certify to the appropriate Federal financial supervisory agency 
        that such institution is in compliance with the goals of this 
        title.
            ``(2) Qualifying institution.--
                    ``(A) In general.--For purposes of paragraph (1), 
                the term `qualifying institution' means a financial 
                institution which--
                            ``(i) has not more than $250 million in 
                        assets;
                            ``(ii) has not been found to have engaged 
                        in a pattern or practice of illegal 
                        discrimination under the Fair Housing Act or 
                        the Equal Credit Opportunity Act for the 
                        preceding 5-year calendar period; and
                            ``(iii) received rating under section 
                        807(b)(2) of `satisfactory' or `outstanding' in 
                        the most recent evaluation of such institution 
                        under this title.
                    ``(B) Annual adjustment.--The dollar amount in 
                subparagraph (A) shall be adjusted annually after 
                December 31, 1994, by the annual percentage increase in 
                the Consumer Price Index for Urban Wage Earners and 
                Clerical Workers published by the Bureau of Labor 
                Statistics.
            ``(3) Public notice.--
                    ``(A) In general.--A qualifying institution shall 
                maintain in every branch a public notice stating that--
                            ``(i) the institution has self-certified 
                        that the institution is satisfactorily helping 
                        to meet the credit needs of its community;
                            ``(ii) the institution maintains--
                                    ``(I) at the main office of such 
                                institution, a public file which 
                                contains a copy of the self-
                                certification to the appropriate 
                                Federal financial supervisory agency; 
                                and
                                    ``(II) a map delineating the 
                                community served by the institution;
                            ``(iii) a list of the types of credit and 
                        services that the institution provides to the 
                        community served by the institution;
                            ``(iv) such other information that the 
                        institution believes demonstrates the 
                        institution's record of helping to meet the 
                        credit needs of its community; and
                            ``(v) every public comment or letter to the 
                        institution (and any response by the 
                        institution) received within the previous 2-
                        year period about the record of the institution 
                        of helping to meet the credit needs of its 
                        community.
                    ``(B) Public file.--A qualifying institution shall 
                maintain a public file containing the contents 
                described in this paragraph at the institution's main 
                office.
            ``(4) Rating.--
                    ``(A) In general.--A qualifying institution shall 
                be deemed to have a rating of a `satisfactory record of 
                meeting community credit needs' for the purposes of 
                this section and section 806A(c).
                    ``(B) Publication.--Each Federal financial 
                supervisory agency shall publish in the Federal 
                Register once each month a list of institutions that 
                have self-certified during the previous month.
                    ``(C) Publication constitutes disclosure.--
                Publication of the name of the institution in the 
                Federal Register as having self-certified shall 
                constitute disclosure of the rating of the institution 
                to the public for purposes of sections 806A and 807.
            ``(5) Regulatory review.--
                    ``(A) Assessment.--During each examination for 
                safety and soundness, a qualifying institution's 
                supervisory agency shall, as part of the agency's 
                review of the institution's loans, assess whether the 
                institution's basis for its self-certification is 
                reasonable based on the public notice and the 
                information contained in the public file pursuant to 
                paragraph (3).
                    ``(B) Examination if self-certification is not 
                reasonable.--If the agency determines that the 
                institution's basis for the institution's self-
                certification is not reasonable, the agency shall 
                schedule an examination of the institution for the 
                purpose of assessing the institution's record of 
                helping to meet the credit needs of its community.
                    ``(C) Revocation of self-certification.--If an 
                assessment pursuant to subparagraph (B) results in a 
                less than `satisfactory' rating, the agency shall 
                revoke the institution's self-certification and 
                substitute a written evaluation as provided under 
                section 807.
                    ``(D) Period of ineligibility for self-
                certification.--An institution whose self-certification 
                has been revoked may not self-certify pursuant to this 
                subsection during the 5 years succeeding the year in 
                which the self-certification is revoked.
                    ``(E) Subsequent eligibility.--After the end of the 
                period of ineligibility described in subparagraph (D), 
                an institution which meets the requirements for self-
                certification may elect to self-certify.
            ``(6) Prohibition on additional requirements.--No 
        appropriate Federal financial supervisory agency may impose any 
        additional requirements, whether by regulation or otherwise, 
        relating to the self-certification procedure under this 
        subsection.''.

SEC. 2304. COMMUNITY INPUT AND CONCLUSIVE RATING.

    (a) Conforming Amendment.--Section 804(a) of the Community 
Reinvestment Act of 1977 (12 U.S.C. 2903) is amended by inserting 
``conducted in accordance with section 806A,'' after ``financial 
institution,''.
    (b) Community Input and Conclusive Rating.--The Community 
Reinvestment Act of 1977 (12 U.S.C. 2901 et seq.) is amended by 
inserting after section 806 the following new section:

``SEC. 806A. COMMUNITY INPUT AND CONCLUSIVE RATING.

    ``(a) Publication of Exam Schedule and Opportunity for Comment.--
            ``(1) Publication of notice.--Each appropriate Federal 
        financial supervisory agency shall--
                    ``(A) publish in the Federal Register, 30 days 
                before the beginning of a calendar quarter, a listing 
                of institutions scheduled for evaluation for compliance 
                with this title during such calendar quarter; and
                    ``(B) provide opportunity for written comments from 
                the community on the performance, under this title, of 
                each institution scheduled for evaluation.
            ``(2) Comment period.--Written comments may not be 
        submitted to an appropriate Federal financial supervisory 
        agency pursuant to paragraph (1) after the end of the 30-day 
        period beginning on the first day of the calendar quarter.
            ``(3) Copy of comments.--The agency shall provide a copy of 
        such comments to the institution.
    ``(b) Evaluation.--The appropriate Federal financial supervisory 
agency shall--
            ``(1) evaluate the institution in accordance with the 
        standards contained in section 804; and
            ``(2) prepare and publish a written evaluation of the 
        institution as required under section 807.
    ``(c) Reconsideration of Rating.--
            ``(1) Request for reconsideration.--A reconsideration of an 
        institution's rating referred to in section 807(b)(1)(C), may 
        be requested within 30 days of the rating's disclosure to the 
        public.
            ``(2) Procedures for request.--Any such request shall be 
        made in writing and filed with the appropriate Federal 
        financial supervisory agency, and may be filed by the 
        institution or a member of the community.
            ``(3) Basis for request.--Any request for reconsideration 
        under this subsection shall be based on significant issues of a 
        substantive nature which are relevant to the delineated 
        community of the institution and, in the case of a request by a 
        member of the community, shall be limited to issues previously 
        raised in comments submitted pursuant to subsection (a).
            ``(4) Completion of review.--The appropriate Federal 
        financial supervisory agency shall complete any requested 
        reconsideration within 30 days of the filing of the request.
    ``(d) Conclusive Rating.--
            ``(1) In general.--An institution's rating shall become 
        conclusive on the later of--
                    ``(A) 30 days after the rating is disclosed to the 
                public; or
                    ``(B) the completion of any requested 
                reconsideration by the Federal financial supervisory 
                agency.
            ``(2) Rating conclusive of meeting community credit 
        needs.--An institution's rating shall be the conclusive 
        assessment of the institution's record of meeting the credit 
        needs of its community for purposes of section 804 until the 
        institution's next rating, developed pursuant to an 
        examination, becomes conclusive.
            ``(3) Safe harbor.--Institutions which have received a 
        `satisfactory' or `outstanding' rating shall be deemed to have 
        met the purposes of section 804.
            ``(4) Rule of construction.--Notwithstanding any other 
        provision of law, no provision of this section shall be 
        construed as granting a cause of action to any person.''.
    (c) Overall Evaluation of Institution.--Paragraph (2) of section 
804(a) of the Community Reinvestment Act of 1977 (12 U.S.C. 2903(a)) is 
amended to read as follows:
            ``(2) take such record into account in the overall 
        evaluation of the condition of the institution by the 
        appropriate Federal financial supervisory agency.''.

SEC. 2305. SPECIAL PURPOSE FINANCIAL INSTITUTIONS.

    (a) In General.--Section 804 of the Community Reinvestment Act of 
1977 (12 U.S.C. 2903) is amended by inserting after subsection (c) (as 
added by section 2303 of this subtitle) the following new subsection:
    ``(d) Special Purpose Institutions.--
            ``(1) In general.--In conducting assessments pursuant to 
        this section at any special purpose institution, the 
        appropriate Federal financial supervisory agency shall--
                    ``(A) consider the nature of business such 
                institution is involved in; and
                    ``(B) assess and take into account the record of 
                the institution commensurate with the amount of 
                deposits (as defined in section 3(1) of the Federal 
                Deposit Insurance Act) received by such institution.
            ``(2) Standards.--Each appropriate Federal financial 
        supervisory agency shall develop standards under which special 
        purpose institutions may be deemed to have complied with the 
        requirements of this title which are consistent with the 
        specific nature of such businesses.''.
    (b) Special Purpose Institution Defined.--Section 803 of the 
Community Reinvestment Act of 1977 (12 U.S.C. 2902) is amended by 
adding at the end the following new paragraph:
            ``(5) Special purpose institutions.--The term `special 
        purpose institution' means a financial institution that does 
        not generally accept deposits from the public in amounts of 
        less than $100,000, such as wholesale, credit card, and trust 
        institutions.''.

SEC. 2306. INCREASED INCENTIVES FOR LENDING TO LOW- AND MODERATE-INCOME 
                    COMMUNITIES.

    (a) In General.--Section 804(b) of the Community Reinvestment Act 
of 1977 (12 U.S.C. 2903(b)) is amended to read as follows:
    ``(b) Positive Consideration of Certain Loans and Investments.--In 
assessing and taking into account the records of a regulated financial 
institution under subsection (a), the appropriate Federal financial 
supervisory agency shall--
            ``(1) consider as a positive factor, consistent with the 
        safe and sound operation of the institution, the institution's 
        investment in or loan to--
                    ``(A) any minority depository institution or 
                women's depository institution (as such terms are 
                defined in section 808(b)) or any low-income credit 
                union;
                    ``(B) any joint venture or other entity or project 
                which promotes the public welfare in any distressed 
                community (as defined by such agency) whether or not 
                the distressed community is located in the local 
                community in which the regulated financial institution 
                is chartered to do business; and
                    ``(C) targeted low- and moderate-income 
                communities, including real property loans to such 
                communities; and
            ``(2) consider equally with other factors capital 
        investment, loan participation, and other ventures undertaken 
        by the institution in cooperation with--
                    ``(A) minority- and women-owned financial 
                institutions and low-income credit unions to the extent 
                that these activities help meet the credit needs of the 
                local communities in which such institutions are 
                chartered; and
                    ``(B) community development corporations in 
                extending credit and other financial services 
                principally to low- and moderate-income persons and 
                small businesses to the extent that such community 
                development corporations help meet the credit needs of 
                the local communities served by the majority-owned 
                institution.''.
    (b) Amendment to Definitions.--Section 803 of the Community 
Reinvestment Act of 1977 (12 U.S.C. 2902) is amended by inserting after 
paragraph (5) (as added by section 2305(b) of this subtitle) the 
following new paragraph:
            ``(6) State bank supervisor.--The term `State bank 
        supervisor' has the same meaning as in section 3(r) of the 
        Federal Deposit Insurance Act.''.
    (c) Technical Correction.--The 1st of the 2 paragraphs designated 
as paragraph (2) of section 803 of the Community Reinvestment Act of 
1977 (12 U.S.C. 2902) is amended to read as follows:
                    ``(D) the Director of the Office of Thrift 
                Supervision with respect to any savings association 
                (the deposits of which are insured by the Federal 
                Deposit Insurance Corporation) and any savings and loan 
                holding company (other than a company which is a bank 
                holding company);''.

SEC. 2307. PROHIBITION ON ADDITIONAL REPORTING UNDER CRA.

    Section 806 of the Community Reinvestment Act of 1977 (12 U.S.C. 
2905) is amended to read as follows:

``SEC. 806. REGULATIONS.

    ``(a) In General.--
            ``(1) Publication requirement.--Regulations to carry out 
        the purposes of this title shall be published by each 
        appropriate Federal financial supervisory agency.
            ``(2) Prohibition on additional recordkeeping.--Regulations 
        prescribed and policy statements, commentary, examiner 
        guidance, or other supervisory material issued under this title 
        shall not impose any additional recordkeeping on a financial 
        institution.
            ``(3) Prohibition on loan data collection.--No loan data 
        may be required to be collected and reported by a financial 
        institution and no such data may be made public by any Federal 
        financial supervisory agency under this title.''.

SEC. 2308. TECHNICAL AMENDMENT.

    Section 807(b)(1)(B) of the Community Reinvestment Act (12 U.S.C. 
2906) is amended by striking ``The information'' and inserting ``In the 
case of a regulated financial institution that maintains domestic 
branches in 2 or more States, the information''.

SEC. 2309. DUPLICATIVE REPORTING.

    Section 10(g) of the Federal Home Loan Bank Act (12 U.S.C. 1430(g)) 
is amended by adding at the end the following new paragraph (3):
            ``(3) Special rule.--This subsection shall not apply to 
        members receiving a grade of `outstanding' or `satisfactory' 
        under section 807 of the Community Reinvestment Act of 1977.''.

SEC. 2310. CRA CONGRESSIONAL OVERSIGHT.

    (a) Sense of Congress Relating to Aggressive Oversight.--It is the 
sense of the Congress that the appropriate committees of the House of 
Representatives and the Senate should exercise aggressive oversight of 
the adoption and implementation of any regulation by any appropriate 
Federal financial supervisory agency under the Community Reinvestment 
Act of 1977 after the date of the enactment of this Act.
    (b) Agency Reports Required.--
            (1) In general.--Each appropriate Federal financial 
        supervisory agency shall submit a report to the Congress by 
        December 31, 1996, and by December 31, 1997, on the 
        implementation of all regulations prescribed by such agency 
        under the Community Reinvestment Act of 1977 after the date of 
        the enactment of this Act.
            (2) Requirements relating to preparation of reports.--In 
        preparing each report required under paragraph (1), each 
        appropriate Federal financial supervisory agency shall--
                    (A) solicit and include comments from regulated 
                financial institutions with respect to the regulations 
                which are the subject of the report; and
                    (B) include quantifiable measures of the cost 
                savings achieved under the regulations which are the 
                subject of the report and the effectiveness of such 
                regulations in achieving the purposes of the Community 
                Reinvestment Act of 1977.
            (3) Definitions.--For purposes of this section, the terms 
        ``appropriate Federal financial supervisory agency'' and 
        ``regulated financial institution'' have the same meanings as 
        in section 803 of the Community Reinvestment Act of 1977.

SEC. 2311. CONSULTATION AMONG EXAMINERS.

    Section 10 of the Federal Deposit Insurance Act (12 U.S.C. 1820) is 
amended by adding at the end the following new subsection:
    ``(j) Consultation Among Examiners.--
            ``(1) In general.--Each appropriate Federal banking agency 
        shall take such action as may be necessary to ensure that 
        examiners employed by the agency--
                    ``(A) consult on examination activities with 
                respect to any depository institution; and
                    ``(B) achieve an agreement and resolve any 
                inconsistencies on the recommendations to be given to 
                such institution as a consequence of any examinations.
            ``(2) Examiner-in-charge.--Each agency shall consider 
        appointing an examiner-in-charge with respect to a depository 
        institution to ensure consultation on examination activities 
        among all of the agency's examiners involved in examinations of 
        such institution.''.

SEC. 2312. LIMITATION ON REGULATIONS.

    Section 806 of the Community Reinvestment Act of 1977 (12 U.S.C. 
2905) (as amended by section 2307) is amended by adding at the end the 
following new subsections:
    ``(b) Limitation on Regulations.--No regulation may be prescribed 
under this title by any Federal agency which would--
            ``(1) require any regulated financial institution to--
                    ``(A) make any loan or enter into any other 
                agreement on the basis of any discriminatory criteria 
                prohibited under any law of the United States; or
                    ``(B) make any loan to, or enter into any other 
                agreement with, any uncreditworthy person that would 
                jeopardize the safety and soundness of such 
                institution; or
            ``(2) prevent or hinder in any way a financial 
        institution's full responsibility to provide credit to all 
        segments of the community.
    ``(c) Encourage Loans to Creditworthy Borrowers.--Regulations 
prescribed under this title shall encourage regulated financial 
institutions to make loans and extend credit to all creditworthy 
persons, consistent with safety and soundness.''.

                    TITLE III--COMMITTEE ON COMMERCE

                       Subtitle A--Communications

                      CHAPTER 1--SPECTRUM AUCTIONS

SEC. 3001. SPECTRUM AUCTIONS.

    (a) Extension and Expansion of Auction Authority.--
            (1) Amendments.--Section 309(j) of the Communications Act 
        of 1934 (47 U.S.C. 309(j)) is amended--
                    (A) by striking paragraphs (1) and (2) and 
                inserting in lieu thereof the following:
            ``(1) General authority.--If, consistent with the 
        obligations described in paragraph (6)(E), mutually exclusive 
        applications are accepted for any initial license or 
        construction permit which will involve an exclusive use of the 
        electromagnetic spectrum, then the Commission shall grant such 
        license or permit to a qualified applicant through a system of 
        competitive bidding that meets the requirements of this 
        subsection.
            ``(2) Exemptions.--The competitive bidding authority 
        granted by this subsection shall not apply to licenses or 
        construction permits issued by the Commission--
                    ``(A) that, as the result of the Commission 
                carrying out the obligations described in paragraph 
                (6)(E), are not mutually exclusive;
                    ``(B) for public safety radio services, including 
                non-Government uses that protect the safety of life, 
                health, and property and that are not made commercially 
                available to the public; or
                    ``(C) for initial licenses or construction permits 
                for new terrestrial digital television services 
                assigned by the Commission to existing terrestrial 
                broadcast licensees to replace their current television 
                licenses.''; and
                    (B) by striking ``1998'' in paragraph (11) and 
                inserting ``2002''.
            (2) Conforming amendment.--Subsection (i) of section 309 of 
        such Act is repealed.
            (3) Effective date.--The amendment made by paragraph (1)(A) 
        shall not apply with respect to any license or permit for which 
        the Federal Communications Commission has accepted mutually 
        exclusive applications on or before the date of enactment of 
        this Act.
    (b) Commission Obligation To Make Additional Spectrum Available by 
Auction.--
            (1) In general.--The Federal Communications Commission 
        shall complete all actions necessary to permit the assignment, 
        by September 30, 2002, by competitive bidding pursuant to 
        section 309(j) of the Communications Act of 1934 (47 U.S.C. 
        309(j)) of licenses for the use of bands of frequencies that--
                    (A) individually span not less than 25 megahertz, 
                unless a combination of smaller bands can, 
                notwithstanding the provisions of paragraph (7) of such 
                section, reasonably be expected to produce greater 
                receipts;
                    (B) in the aggregate span not less than 100 
                megahertz;
                    (C) are located below 3 gigahertz; and
                    (D) have not, as of the date of enactment of this 
                Act--
                            (i) been designated by Commission 
                        regulation for assignment pursuant to such 
                        section; or
                            (ii) been identified by the Secretary of 
                        Commerce pursuant to section 113 of the 
                        National Telecommunications and Information 
                        Administration Organization Act.
                The Commission shall conduct the competitive bidding 
                for not less than one-half of such aggregate spectrum 
                by September 30, 2000.
            (2) Criteria for reassignment.--In making available bands 
        of frequencies for competitive bidding pursuant to paragraph 
        (1), the Commission shall--
                    (A) seek to promote the most efficient use of the 
                spectrum;
                    (B) take into account the cost to incumbent 
                licensees of relocating existing uses to other bands of 
                frequencies or other means of communication;
                    (C) take into account the needs of public safety 
                radio services; and
                    (D) comply with the requirements of international 
                agreements concerning spectrum allocations.
            (3) Notification to ntia.--The Commission shall notify the 
        Secretary of Commerce if--
                    (A) the Commission is not able to provide for the 
                effective relocation of incumbent licensees to bands of 
                frequencies that are available to the Commission for 
                assignment; and
                    (B) the Commission has identified bands of 
                frequencies that are--
                            (i) suitable for the relocation of such 
                        licensees; and
                            (ii) allocated for Federal Government use, 
                        but that could be reallocated pursuant to part 
                        B of the National Telecommunications and 
                        Information Administration Organization Act (as 
                        amended by this Act).
    (c) Identification and Reallocation of Frequencies.--The National 
Telecommunications and Information Administration Organization Act (47 
U.S.C. 901 et seq.) is amended--
            (1) in section 113, by adding at the end the following new 
        subsection:
    ``(f) Additional Reallocation Report.--If the Secretary receives a 
notice from the Commission pursuant to section 3001(b)(3) of the Seven-
Year Balanced Budget Reconciliation Act of 1995, the Secretary shall 
prepare and submit to the President and the Congress a report 
recommending for reallocation for use other than by Federal Government 
stations under section 305 of the 1934 Act (47 U.S.C. 305), bands of 
frequencies that are suitable for the uses identified in the 
Commission's notice.'';
            (2) in section 114(a)(1), by striking ``(a) or (d)(1)'' and 
        inserting ``(a), (d)(1), or (f)''.
    (d) Completion of C-Block PCS Auction.--The Federal Communications 
Commission shall commence the Broadband Personal Communications 
Services C-Block auction described in the Commission's Sixth Report and 
Order in DP Docket 93-253 (FCC 93-510, released July 18, 1995) not 
later than December 4, 1995. The Commission's competitive bidding rules 
governing such auction, as set forth in such Sixth Report and Order, 
are hereby ratified and adopted as a matter of Federal law.
    (e) Modification of Auction Policy To Preserve Auction Value of 
Spectrum.--The voluntary negotiation period for relocating fixed 
microwave licensees to frequency bands other than those allocated for 
licensed emerging technology services (including licensed personal 
communications services), established by the Commission's Third Report 
and Order in ET Docket No. 92-9, shall expire one year after the date 
of acceptance by the Commission of applications for such licensed 
emerging technology services. The mandatory negotiation period for 
relocating fixed microwave licensees to frequency bands other than 
those allocated for licensed emerging technology services (including 
licensed personal communications services), established in such Third 
Report and Order, shall expire two years after the date of acceptance 
by the Commission of applications for such licensed emerging technology 
services.
    (f) Identification and Reallocation of Auctionable Frequencies.--
The National Telecommunications and Information Administration 
Organization Act (47 U.S.C. 901 et seq.) is amended--
            (1) in section 113(b)--
                    (A) by striking the heading of paragraph (1) and 
                inserting ``Initial reallocation report'';
                    (B) by inserting ``in the first report required by 
                subsection (a)'' after ``recommend for reallocation'' 
                in paragraph (1);
                    (C) by inserting ``or (3)'' after ``paragraph (1)'' 
                each place it appears in paragraph (2); and
                    (D) by inserting after paragraph (2) the following 
                new paragraph:
            ``(3) Second reallocation report.--In accordance with the 
        provisions of this section, the Secretary shall recommend for 
        reallocation in the second report required by subsection (a), 
        for use other than by Federal Government stations under section 
        305 of the 1934 Act (47 U.S.C. 305), a single frequency band 
        that spans not less than an additional 20 megahertz, that is 
        located below 3 gigahertz, and that meets the criteria 
        specified in paragraphs (1) through (5) of subsection (a).''; 
        and
            (2) in section 115--
                    (A) in subsection (b), by striking ``the report 
                required by section 113(a)'' and inserting ``the 
                initial reallocation report required by section 
                113(a)''; and
                    (B) by adding at the end the following new 
                subsection:
    ``(c) Allocation and Assignment of Frequencies Identified in the 
Second Reallocation Report.--With respect to the frequencies made 
available for reallocation pursuant to section 113(b)(3), the 
Commission shall, not later than 1 year after receipt of the second 
reallocation report required by such section, prepare, submit to the 
President and the Congress, and implement, a plan for the allocation 
and assignment under the 1934 Act of such frequencies. Such plan shall 
propose the immediate allocation and assignment of all such frequencies 
in accordance with section 309(j).''.

       CHAPTER 2--FEDERAL COMMUNICATIONS COMMISSION AUTHORIZATION

SEC. 3011. SHORT TITLE.

    This chapter may be cited as the ``Federal Communications 
Commission Authorization Act of 1995''.

SEC. 3012. EXTENSION OF AUTHORITY.

    (a) Authorization of Appropriations.--Section 6 of the 
Communications Act of 1934 (47 U.S.C. 156) is amended to read as 
follows:

``SEC. 6. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated for the administration of 
this Act by the Commission $186,000,000 for fiscal year 1996, together 
with such sums as may be necessary for increases resulting from 
adjustments in salary, pay, retirement, other employee benefits 
required by law, and other nondiscretionary costs, for fiscal year 
1996. Of the sum appropriated in each fiscal year under this section, a 
portion, in an amount determined under sections 8(b) and 9(b), shall be 
derived from fees authorized by sections 8 and 9.''.
    (b) Travel and Reimbursement Program.--Section 4(g)(2) of the 
Communications Act of 1934 (47 U.S.C. 154(g)(2)) is amended to read as 
follows:
    ``(2) The Commission shall submit to the appropriate committees of 
Congress, and publish in the Federal Register, semiannual reports 
specifying the reimbursements which the Commission has accepted under 
section 1353 of title 31, United States Code.''.
    (c) Communications Support From Older Americans.--Section 6(a) of 
the Federal Communications Commission Authorization Act of 1988 (47 
U.S.C. 154 note) is amended by striking ``fiscal years 1992 and 1993'' 
and inserting ``fiscal year 1996''.

SEC. 3013. APPLICATION FEES.

    (a) Adjustment of Application Fee Schedule.--Section 8(b) of the 
Communications Act of 1934 (47 U.S.C. 158(b)) is amended to read as 
follows:
    ``(b)(1) For fiscal year 1996 and each fiscal year thereafter, the 
Commission shall, by regulation, modify the application fees by 
proportionate increases or decreases so as to result in estimated total 
collections for the fiscal year equal to--
            ``(A) $40,000,000; plus
            ``(B) an additional amount, specified in an appropriation 
        Act for the Commission for that fiscal year to be collected and 
        credited to such appropriation, not to exceed the amount by 
        which the necessary expenses for the costs described in 
        paragraph (5) exceeds $40,000,000.
    ``(2) In making adjustments pursuant to this paragraph the 
Commission may round such fees to the nearest $5.00 in the case of fees 
under $100, or to the nearest $20 in the case of fees of $100 or more. 
The Commission shall transmit to the Congress notification of any 
adjustment made pursuant to this paragraph immediately upon the 
adoption of such adjustment.
    ``(3) The Commission is authorized to continue to collect fees at 
the prior year's rate until the effective date of fee adjustments or 
amendments made pursuant to paragraphs (1) and (4).
    ``(4) The Commission shall, by regulation, add, delete, or 
reclassify services, categories, applications, or other filings subject 
to application fees to reflect additions, deletions, or changes in the 
nature of its services or authorization of service processes as a 
consequence of Commission rulemaking proceedings or changes in law.
    ``(5) Any modified fees established under paragraph (4) shall be 
derived by determining the full-time equivalent number of employees 
performing application activities, adjusted to take into account other 
expenses that are reasonably related to the cost of processing the 
application or filing, including all executive and legal costs incurred 
by the Commission in the discharge of these functions, and other 
factors that the Commission determines are necessary in the public 
interest. The Commission shall--
            ``(A) transmit to the Congress notification of any proposed 
        modification made pursuant to this paragraph immediately upon 
        adoption of such proposal; and
            ``(B) transmit to the Congress notification of any 
        modification made pursuant to this paragraph immediately upon 
        adoption of such modification.
    ``(6) Increases or decreases in application fees made pursuant to 
this subsection shall not be subject to judicial review.''.
    (b) Treatment of Additional Collections.--Section 8(e) of such Act 
is amended to read as follows:
    ``(e) Of the moneys received from fees authorized under this 
section--
            ``(1) $40,000,000 shall be deposited in the general fund of 
        the Treasury to reimburse the United States for amounts 
        appropriated for use by the Commission in carrying out its 
        functions under this Act; and
            ``(2) the remainder shall be deposited as an offsetting 
        collection in, and credited to, the account providing 
        appropriations to carry out the functions of the Commission.''.
    (c) Schedule of Application Fees for PCS.--The schedule of 
application fees in section 8(g) of such Act is amended by adding, at 
the end of the portion under the heading ``common carrier services'', 
the following new item:

``23. Personal communications services
        ``a. Initial or new application....................     230.00 
        ``b. Amendment to pending application..............      35.00 
        ``c. Application for assignment or transfer of          230.00 
            control.
        ``d. Application for renewal of license............      35.00 
        ``e. Request for special temporary authority.......     200.00 
        ``f. Notification of completion of construction....      35.00 
        ``g. Request to combine service areas..............    50.00''.

    (d) Vanity Call Signs.--
            (1) Lifetime license fees.--
                    (A) Amendment.--The schedule of application fees in 
                section 8(g) of such Act is further amended by adding, 
                at the end of the portion under the heading ``private 
                radio services'', the following new item:

  ``11. Amateur vanity call signs..........................   150.00''.

                    (B) Treatment of receipts.--Moneys received from 
                fees established under the amendment made by this 
                subsection shall be deposited as an offsetting 
                collection in, and credited to, the account providing 
                appropriations to carry out the functions of the 
                Commission.
            (2) Termination of annual regulatory fees.--The schedule of 
        regulatory fees in section 9(g) of such Act (47 U.S.C. 159(g)) 
        is amended by striking the following item from the fees 
        applicable to the Private Radio Bureau:

                                                                        
                                                                        
                                                                        
                              ``Amateur vanity call-signs.          7''.
                                                                        


SEC. 3014. REGULATORY FEES.

    (a) Executive and Legal Costs.--Section 9(a)(1) of the 
Communications Act of 1934 (47 U.S.C. 159(a)(1)) is amended by 
inserting before the period at the end the following: ``, and all 
executive and legal costs incurred by the Commission in the discharge 
of these functions''.
    (b) Establishment and Adjustment.--Section 9(b) of such Act is 
amended--
            (1) in paragraph (4)(B), by striking ``90 days'' and 
        inserting ``45 days''; and
            (2) by adding at the end the following new paragraph:
            ``(5) Effective date of adjustments.--The Commission is 
        authorized to continue to collect fees at the prior year's rate 
        until the effective date of fee adjustments or amendments made 
        pursuant to paragraph (2) or (3).''.
    (c) Regulatory Fees for Satellite TV Operations.--The schedule of 
regulatory fees in section 9(g) of such Act is amended, in the fees 
applicable to the Mass Media Bureau, by inserting after each of the 
items pertaining to construction permits in the fees applicable to VHF 
commercial and UHF commercial TV the following new item:

                                                                        
                                                                        
                                                                        
                                ``Terrestrial television                
                                 satellite operations.....        500''.
                                                                        


    (d) Governmental entities use for common carrier purposes.--Section 
9(h) of such Act is amended by adding at the end the following new 
sentence: ``The exceptions provided by this subsection for governmental 
entities shall not be applicable to any services that are provided on a 
commercial basis in competition with another carrier.''.
    (e) Information Required in Connection With Adjustment of 
Regulatory Fees.--Title I of such Act is amended--
            (1) in section 9, by striking subsection (i); and
            (2) by inserting after section 9 the following new section:

``SEC. 10. ACCOUNTING SYSTEM AND ADJUSTMENT INFORMATION.

    ``(a) Accounting System Required.--The Commission shall develop 
accounting systems for the purposes of making the adjustments 
authorized by sections 8 and 9. The Commission shall annually prepare 
and submit to the Congress an analysis of such systems and shall 
annually afford interested persons the opportunity to submit comments 
concerning the allocation of the costs of performing the functions 
described in section 8(a)(5) and 9(a)(1) in making such adjustments in 
the schedules required by sections 8 and 9.
    ``(b) Information Required in Connection with Adjustment of 
Application and Regulatory Fees.--
            ``(1) Schedule of requested amounts.--No later than May 1 
        of each calendar year, the Commission shall prepare and 
        transmit to the Committees of Congress responsible for the 
        Commission's authorization and appropriations a detailed 
        schedule of the amounts requested by the President's budget to 
        be appropriated for the ensuing fiscal year for the activities 
        described in sections 8(a)(5) and 9(a)(1), allocated by 
        bureaus, divisions, and offices of the Commission.
            ``(2) Explanatory statement.--If the Commission anticipates 
        increases in the application fees or regulatory fees applicable 
        to any applicant, licensee, or unit subject to payment of fees, 
        the Commission shall submit to the Congress by May 1 of such 
        calendar year a statement explaining the relationship between 
        any such increases and either (A) increases in the amounts 
        requested to be appropriated for Commission activities in 
        connection with such applicants, licensees, or units subject to 
        payment of fees, or (B) additional activities to be performed 
        with respect to such applicants, licensees, or units.
            ``(3) Definition.--For purposes of this subsection, the 
        term `amount requested by the President's budget' shall include 
        any adjustments to such requests that are made by May 1 of such 
        calendar year. If any such adjustment is made after May 1, the 
        Commission shall provide such Committees with updated schedules 
        and statements containing the information required by this 
        subsection within 10 days after the date of any such 
        adjustment.''.

SEC. 3015. INSPECTION OF SHIP RADIO STATIONS.

    (a) Authority To Designate Entities To Inspect.--Section 4(f)(3) of 
the Communications Act of 1934 (47 U.S.C. 154(f)(3)) is amended by 
inserting before the period at the end the following: ``: And provided 
further, That, in the alternative, an entity designated by the 
Commission may make the inspections referred to in this paragraph''.
    (b) Conduct of Inspections.--Section 362(b) of such Act (47 U.S.C. 
362(b)) is amended to read as follows:
    ``(b) Every ship of the United States that is subject to this part 
shall have the equipment and apparatus prescribed therein inspected at 
least once each year by the Commission or an entity designated by the 
Commission. If, after such inspection, the Commission is satisfied that 
all relevant provisions of this Act and the station license have been 
complied with, the fact shall be certified to on the station license by 
the Commission. The Commissionshall make such additional inspections at 
frequent intervals as the Commission determines may be necessary to 
ensure compliance with the requirements of this Act. The Commission 
may, upon a finding that the public interest could be served thereby--
            ``(1) waive the annual inspection required under this 
        section for a period of up to 90 days for the sole purpose of 
        enabling a vessel to complete its voyage and proceed to a port 
        in the United States where an inspection can be held; or
            ``(2) waive the annual inspection required under this 
        section for a vessel that is in compliance with the radio 
        provisions of the Safety Convention and that is operating 
        solely in waters beyond the jurisdiction of the United States, 
        provided that such inspection shall be performed within 30 days 
        of such vessel's return to the United States.''.
    (c) Inspection By Other Entities.--Section 385 of such Act (47 
U.S.C. 385) is amended by inserting ``or an entity designated by the 
Commission'' after ``The Commission''.

SEC. 3016. EXPEDITED ITFS PROCESSING.

    Section 5(c)(1) of the Communications Act of 1934 (47 U.S.C. 
155(c)(1)) is amended by striking the last sentence and inserting the 
following: ``Except for cases involving the authorization of service in 
the Instructional Television Fixed Service, or as otherwise provided in 
this Act, nothing in this paragraph shall authorize the Commission to 
provide for the conduct, by any person or persons other than persons 
referred to in paragraph (2) or (3) of section 556(b) of title 5, 
United States Code, of any hearing to which such section applies.''.

SEC. 3017. TARIFF REJECTION AUTHORITY.

    Section 203(d) of the Communications Act of 1934 (47 U.S.C. 203(d)) 
is amended by inserting after the first sentence the following new 
sentences: ``The Commission may, after affording interested parties an 
opportunity to comment, reject a proposed tariff filing in whole or in 
part, if the filing or any part thereof is patently unlawful. In 
evaluating whether a proposed tariff filing is patently unlawful, the 
Commission may consider additional information filed by the carrier or 
any interested party and shall presume the facts alleged by the carrier 
to be true.''.

SEC. 3018. REFUND AUTHORITY.

    Title II of the Communications Act of 1934 (47 U.S.C. 201 et seq.) 
is amended by adding at the end thereof the following new section:

``SEC. 230. REFUND AUTHORITY.

    ``In addition to any other provision of this Act under which the 
Commission may order refunds, the Commission may require by order the 
refund of such portion of any charge by any carrier or carriers as 
results from a violation of section 220 (a), (b), or (d) or 221 (c) or 
(d) or of any of the rules promulgated pursuant to such sections or 
pursuant to section 215, 218, or 219. Such refunds shall be ordered 
only to the extent that the Commission or a court finds that such 
violation resulted in unlawful charges and shall be made to such 
persons or classes of persons as the Commission determines reasonably 
represent the persons from whom amounts were improperly received by 
reason of such violation. No refunds shall be required under this 
section unless--
            ``(1) the Commission issues an order advising the carrier 
        of its potential refund liability and provides the carrier with 
        an opportunity to file written comments as to why refunds 
        should not be required; and
            ``(2) such order is issued not later than 5 years after the 
        date the charge was paid.
In the case of a continuing violation, a violation shall be considered 
to occur on each date that the violation is repeated.''.

SEC. 3019. LICENSING OF AVIATION AND MARITIME SERVICES BY RULE.

    Section 307(e) of the Communications Act of 1934 (47 U.S.C. 307(e)) 
is amended to read as follows:
    ``(e)(1) Notwithstanding any license requirement established in 
this Act, if the Commission determines that such authorization serves 
the public interest, convenience, and necessity, the Commission may by 
rule authorize the operation of radio stations without individual 
licenses in the following radio services: (A) the aviation radio 
service for aircraft stations operated on domestic flights when such 
aircraft are not otherwise required to carry a radio station; and (B) 
the maritime radio service for ship stations navigated on domestic 
voyages when such ships are not otherwise required to carry a radio 
station.
    ``(2) Any radio station operator who is authorized by the 
Commission to operate without an individual license shall comply with 
all other provisions of this Act and with rules prescribed by the 
Commission under this Act.
    ``(3) For purposes of this subsection, the terms `aircraft station' 
and `ship station' shall have the meanings given them by the Commission 
by rule.''.

SEC. 3020. AUCTION TECHNICAL AMENDMENTS.

    (a) Funding Availability.--Section 309(j)(8)(B) of the 
Communications Act of 1934 (47 U.S.C. 309(j)(8)(B)) is amended by 
adding at the end the following new sentence: ``Such offsetting 
collections are authorized to remain available until expended.''.
    (b) Escrow of Deposits.--Section 309(j)(8) of such Act is further 
amended by adding at the end the following new subparagraph:
                    ``(C) Escrow of deposit.--The Commission is 
                authorized, based on the competitive bidding 
                methodology selected, to provide for the deposit of 
                moneys for bids in an interest-bearing account until 
                such time as the Commission accepts a deposit from the 
                high bidder. All interest earned on bid moneys received 
                from the winning bidder shall be deposited into the 
                general fund of the Treasury. All interest earned on 
                bid moneys deposited from unsuccessful bidders, less 
                any applicable fees and penalties, shall be paid to 
                those bidders.''.

SEC. 3021. FORFEITURES FOR VIOLATIONS IMPERILING SAFETY OF LIFE.

    (a) Administrative Sanctions.--Section 312(a) of the Communications 
Act of 1934 (47 U.S.C. 312(a)) is amended--
            (1) by striking ``or'' at the end of paragraph (6);
            (2) by striking the period at the end of paragraph (7) and 
        inserting ``; or''; and
            (3) by adding at the end the following new paragraph:
            ``(8) for failure to comply with any requirement of this 
        Act or the Commission's rules that imperils the safety of 
        life.''.
    (b) Forfeitures.--Section 503(b)(1) of such Act (47 U.S.C. 
503(b)(1)) is amended--
            (1) by striking ``or'' at the end of subparagraph (C);
            (2) by striking the semicolon at the end of subparagraph 
        (D) and inserting ``; or''; and
            (3) by adding after subparagraph (D) the following new 
        subparagraph:
            ``(E) failed to comply with any requirement of this Act or 
        the Commission's rules that imperils the safety of life;''.

SEC. 3022. USE OF EXPERTS AND CONSULTANTS.

    Section 4(f)(1) of the Communications Act of 1934 (47 U.S.C. 154) 
is amended by adding at the end thereof the following: ``The Commission 
may also procure the services of experts and consultants in accordance 
with section 3109 of title 5, United States Code, relating to 
appointments in the Federal Service, at rates of compensation for 
individuals not to exceed the daily rate equivalent to the maximum rate 
payable for senior-level positions under section 5276 of title 5, 
United States Code.''.

SEC. 3023. STATUTE OF LIMITATIONS FOR FORFEITURE PROCEEDINGS AGAINST 
                    COMMON CARRIERS.

    Section 503(b)(6) of the Communications Act of 1934 (47 U.S.C. 
503(b)(6)) is amended--
            (1) by striking ``or'' at the end of subparagraph (A);
            (2) by inserting ``and is not a common carrier'' after 
        ``title III of this Act'' in subparagraph (B);
            (3) by redesignating subparagraph (B) as subparagraph (C); 
        and
            (4) by inserting after subparagraph (A) the following new 
        subparagraph:
            ``(B) such person is a common carrier and the required 
        notice of apparent liability is issued more than 5 years after 
        the date the violation charged occurred; or''.

SEC. 3024. UTILIZATION OF FM BAND FOR ASSISTIVE DEVICES FOR HEARING 
                    IMPAIRED INDIVIDUALS.

    Within 6 months after the date of enactment of this Act, the 
Federal Communications Commission shall report to the Congress on the 
existing and future use of the FM band to facilitate the use of 
auditory assistive devices for individuals with hearing impairments. In 
preparing such report, the Commission shall consider--
            (1) the potential for utilizing FM band auditory assistive 
        devices to comply with the American with Disabilities Act;
            (2) the impact on such compliance of the vulnerability of 
        such devices to harmful interference from radio licensees; and
            (3) alternative frequency allocations that could facilitate 
        such compliance.

SEC. 3025. TECHNICAL AMENDMENT.

    Section 302(d)(1) of the Communications Act of 1934 (47 U.S.C. 
309(d)(1)) is amended--
            (1) in subparagraph (A), by striking ``allocated to the 
        domestic cellular radio telecommunications service'' and 
        inserting ``utilized to provide commercial mobile service (as 
        defined in section 332(d))''; and
            (2) in subparagraph (C), by striking ``cellular'' and 
        inserting ``commercial mobile service''.

        Subtitle B--Nuclear Regulatory Commission Annual Charge

SEC. 3031. NUCLEAR REGULATORY COMMISSION ANNUAL CHARGES.

    Section 6101(a)(3) of the Omnibus Budget Reconciliation Act of 1990 
(42 U.S.C. 2214(a)(3)) is amended by striking ``September 30, 1998'' 
and inserting ``September 30, 2002''.

            Subtitle C--United States Enrichment Corporation

SEC. 3035. SHORT TITLE AND REFERENCE.

    (a) Short Title.--This subtitle may be cited as the ``USEC 
Privatization Act''.
    (b) Reference.--Except as otherwise expressly provided, whenever in 
this subtitle an amendment or repeal is expressed in terms of an 
amendment to, or repeal of, a section or other provision, the reference 
shall be considered to be made to a section or other provision of the 
Atomic Energy Act of 1954 (42 U.S.C. 2011 et seq.).

SEC. 3036. PRODUCTION FACILITY.

    Paragraph v. of section 11 (42 U.S.C. 2014 v.) is amended by 
striking ``or the construction and operation of a uranium enrichment 
production facility using Atomic Vapor Laser Isotope Separation 
technology''.

SEC. 3037. DEFINITIONS.

    Section 1201 (42 U.S.C. 2297) is amended--
            (1) in paragraph (4), by inserting before the period the 
        following: ``and any successor corporation established through 
        privatization of the Corporation'';
            (2) by redesignating paragraphs (10) through (13) as 
        paragraphs (14) through (17), respectively, and by inserting 
        after paragraph (9) the following new paragraphs:
            ``(10) The term `low-level radioactive waste' has the 
        meaning given such term in section 102(9) of the Low-Level 
        Radioactive Waste Policy Amendments Act of 1985 (42 U.S.C. 
        2021b(9)).
            ``(11) The term `mixed waste' has the meaning given such 
        term in section 1004(41) of the Solid Waste Disposal Act (42 
        U.S.C. 6903(41)).
            ``(12) The term `privatization' means the transfer of 
        ownership of the Corporation to private investors pursuant to 
        chapter 25.
            ``(13) The term `privatization date' means the date on 
        which 100 percent of ownership of the Corporation has been 
        transferred to private investors.'';
            (3) by inserting after paragraph (17) (as redesignated) the 
        following new paragraph:
            ``(18) The term `transition date' means July 1, 1993.'';
            (4) by redesignating the unredesignated paragraph (14) as 
        paragraph (19); and
            (5) by adding the following new paragraphs after paragraph 
        (19):
            ``(20) The term `gaseous diffusion plants' means the 
        Paducah Gaseous Diffusion Plant at Paducah, Kentucky and the 
        Portsmouth Gaseous Diffusion Plant at Piketon, Ohio.
            ``(21) The term `private corporation' means the corporation 
        established under section 1503.
            ``(22) The term `Russian HEU agreement' means the Agreement 
        Between the Government of the United States of America and the 
        Government of the Russian Federation Concerning the Disposition 
        of Highly Enriched Uranium Extracted from Nuclear Weapons, 
        dated February 18, 1993.
            ``(23) The term `Suspension Agreement' means the Agreement 
        to Suspend the Antidumping Investigation on Uranium from the 
        Russian Federation, as amended.''.

SEC. 3038. EMPLOYEES OF THE CORPORATION.

    (a) Paragraphs (1) and (2).--Section 1305(e) (42 U.S.C. 2297b-4(e)) 
is amended by striking paragraphs (1) and (2) and inserting in thereof 
the following:
            ``(1) In general.--
                    ``(A) Privatization shall not diminish the accrued, 
                vested pension benefits of employees of the 
                Corporation's operating contractor at the two gaseous 
                diffusion plants.
                    ``(B) In the event that the private corporation 
                terminates or changes the contractor at either or both 
                of the gaseous diffusion plants, the plan sponsor or 
                other appropriate fiduciary of the pension plan 
                covering employees of the prior operating contractor 
                shall arrange for the transfer of all plan assets and 
                liabilities relating to accrued pension benefits of 
                such plan's participants and beneficiaries from such 
                plan to a pension plan sponsored by the new contractor 
                or the private corporation, as the case may be.
                    ``(C) Any employer (including the private 
                corporation or any contractor of the private 
                corporation) at a gaseous diffusion plant shall abide 
                by the terms of any unexpired collective bargaining 
                agreement covering employees in bargaining units at the 
                plant and in effect on the privatization date until the 
                expiration of the agreement.
                    ``(D) In the event of a plant closing or mass 
                layoff (as such terms are defined in section 2101(a)(2) 
                and (3) of title 29, United States Code) at either of 
                the gaseous diffusion plants, the Secretary of Energy 
                shall treat such plant as a Department of Energy 
                defense nuclear facility and any person employed by an 
                operating contractor on the privatization date at 
                either plant as a Department of Energy employee for 
                purposes of sections 3161 through 3163 of the National 
                Defense Authorization Act for Fiscal Year 1993 (42 
                U.S.C. 7274h-7274j).
                    ``(E) The Department of Energy and the private 
                corporation shall continue to fund postretirement 
                health benefits for persons employed by an operating 
                contractor at either of the gaseous diffusion plants at 
                substantially the same level of coverage as eligible 
                retirees are entitled to receive on the privatization 
                date, consistent with clauses (i) through (iii), except 
                that the Department of Energy, the private corporations 
                and the operating contractor shall have the right to 
                implement cost-saving measures, including (but not 
                limited to) preferred provider organizations, managed 
                care programs, mandatory second opinions before surgery 
                or other medical procedures, and mandatory use of 
                generic drugs, that do not materially diminish the 
                overall quality of the medical care provided--
                            ``(i) persons eligible for this coverage 
                        shall be limited to persons who retired from 
                        active employment at one of the gaseous 
                        diffusion plants as of the privatization date, 
                        as vested participants in a pension plan 
                        maintained either by the Corporation's 
                        operating contractor or by a contractor 
                        employed prior to July 1, 1993, by the 
                        Department of Energy to operate either of the 
                        gaseous diffusion plants and persons who, as of 
                        the privatization date, are employed by the 
                        Corporation's operating contractor and are 
                        vested participants in a pension plan 
                        maintained either by the Corporation's 
                        operating contractor or by a contractor 
                        employed prior to July 1, 1993, by the 
                        Department of Energy to operate either of the 
                        gaseous diffusion plants;
                            ``(ii) for persons who retired from 
                        employment with an operating contractor prior 
                        to July 1, 1993, the Department of Energy shall 
                        fund the entire cost of postretirement health 
                        benefits; and
                            ``(iii) for persons who retire from 
                        employment with an operating contractor after 
                        July 1, 1993, the Department of Energy and the 
                        private corporation shall fund the cost of 
                        postretirement health benefits in proportion to 
                        the retired persons' years and months of 
                        service at a gaseous diffusion plant under 
                        their respective management.''.
    (b) Paragraph (4).--Paragraph (4) of section 1305(e) (42 U.S.C. 
2297b-4(e)(4)) is amended--
            (1) by striking ``and detailees'' in the heading;
            (2) by striking the first sentence;
            (3) in the second sentence, by inserting ``from other 
        Federal employment'' after ``transfer to the Corporation''; and
            (4) by striking the last sentence.

SEC. 3039. MARKETING AND CONTRACTING AUTHORITY.

    (a) Marketing Authority.--Section 1401(a) (42 U.S.C. 2297c(a)) is 
amended effective on the privatization date (as defined in section 
1201(13) of the Atomic Energy Act of 1954)--
            (1) by amending the subsection heading to read ``Marketing 
        Authority.--''; and
            (2) by striking the first sentence.
    (b) Transfer of Contracts.--Section 1401(b) (42 U.S.C. 2297c(b)) is 
amended--
            (1) in paragraph (2)(B), by adding at the end the 
        following: ``The privatization of the Corporation shall not 
        affect the terms of, or the rights or obligations of the 
        parties to, any such power purchase contract.''; and
            (2) by adding at the end the following:
            ``(3) Effect of transfer.--
                    ``(A) As a result of the transfer pursuant to 
                paragraph (1), all rights, privileges, and benefits 
                under such contracts, agreements, and leases, including 
                the right to amend, modify, extend, revise, or 
                terminate any of such contracts, agreements, or leases 
                were irrevocably assigned to the Corporation for its 
                exclusive benefit.
                    ``(B) Notwithstanding the transfer pursuant to 
                paragraph (1), the United States shall remain obligated 
                to the parties to the contracts, agreements, and leases 
                transferred pursuant to paragraph (1) for the 
                performance of the obligations of the United States 
                thereunder during the term thereof. The Corporation 
                shall reimburse the United States for any amount paid 
                by the United States in respect of such obligations 
                arising after the privatization date to the extent such 
                amount is a legal and valid obligation of the 
                Corporation then due.
                    ``(C) After the privatization date, upon any 
                material amendment, modification, extension, revision, 
                replacement, or termination of any contract, agreement, 
                or lease transferred under paragraph (1), the United 
                States shall be released from further obligation under 
                such contract, agreement, or lease, except that such 
                action shall not release the United States from 
                obligations arising under such contract, agreement, or 
                lease prior to such time.''.
    (c) Pricing.--Section 1402 (42 U.S.C. 2297c-1) is amended to read 
as follows:

``SEC. 1402. PRICING.

    ``The Corporation shall establish prices for its products, 
materials, and services provided to customers on a basis that will 
allow it to attain the normal business objectives of a profitmaking 
corporation.''.
    (d) Leasing of Gaseous Diffusion Facilities of Department.--
Effective on the privatization date (as defined in section 1201(13) of 
the Atomic Energy Act of 1954), section 1403 (42 U.S.C. 2297c-2) is 
amended by adding at the end the following:
    ``(h) Low-Level Radioactive Waste and Mixed Waste.--
            ``(1) Responsibility of the department; costs.--
                    ``(A) With respect to low-level radioactive waste 
                and mixed waste generated by the Corporation as a 
                result of the operation of the facilities and related 
                property leased by the Corporation pursuant to 
                subsection (a) or as a result of treatment of such 
                wastes at a location other than the facilities and 
                related property leased by the Corporation pursuant to 
                subsection (a) the Department, at the request of the 
                Corporation, shall--
                            ``(i) accept for treatment or disposal of 
                        all such wastes for which treatment or disposal 
                        technologies and capacities exist, whether 
                        within the Department or elsewhere; and
                            ``(ii) accept for storage (or ultimately 
                        treatment or disposal) all such wastes for 
                        which treatment and disposal technologies or 
                        capacities do not exist, pending development of 
                        such technologies or availability of such 
                        capacities for such wastes.
                    ``(B) All low-level wastes and mixed wastes that 
                the Department accepts for treatment, storage, or 
                disposal pursuant to subparagraph (A) shall, for the 
                purpose of any permits, licenses, authorizations, 
                agreements, or orders involving the Department and 
                other Federal agencies or State or local governments, 
                be deemed to be generated by the Department and the 
                Department shall handle such wastes in accordance with 
                any such permits, licenses, authorizations, agreements, 
                or orders. The Department shall obtain any additional 
                permits, licenses, or authorizations necessary to 
                handle such wastes, shall amend any such agreements or 
                orders as necessary to handle such wastes, and shall 
                handle such wastes in accordance therewith.
                    ``(C) The Corporation shall reimburse the 
                Department for the treatment, storage, or disposal of 
                low-level radioactive waste or mixed waste pursuant to 
                subparagraph (A) in an amount equal to the Department's 
                costs but in no event greater than an amount equal to 
                that which would be charged by commercial, State, 
                regional, or interstate compact entities for treatment, 
                storage, or disposal of such waste.
            ``(2) Agreements with other persons.--The Corporation may 
        also enter into agreements for the treatment, storage, or 
        disposal of low-level radioactive waste and mixed waste 
        generated by the Corporation as a result of the operation of 
        the facilities and related property leased by the Corporation 
        pursuant to subsection (a) with any person other than the 
        Department that is authorized by applicable laws and 
        regulations to treat, store, or dispose of such wastes.''.
    (e) Liabilities.--
            (1) Subsection (a) of section 1406 (42 U.S.C. 2297c-5(a)) 
        is amended--
                    (A) by inserting ``and Privatization'' after 
                ``Transition'' in the heading; and
                    (B) by adding at the end the following: ``As of the 
                privatization date, all liabilities attributable to the 
                operation of the Corporation from the transition date 
                to the privatization date shall be direct liabilities 
                of the United States.''.
            (2) Subsection (b) of section 1406 (42 U.S.C. 2297c-5(b)) 
        is amended--
                    (A) by inserting ``and Privatization'' after 
                ``Transition'' in the heading; and
                    (B) by adding at the end the following: ``As of the 
                privatization date, any judgment entered against the 
                Corporation imposing liability arising out of the 
                operation of the Corporation from the transition date 
                to the privatization date shall be considered a 
                judgment against the United States.''.
            (3) Subsection (d) of section 1406 (42 U.S.C. 2297c-5(d)) 
        is amended--
                    (A) by inserting ``and Privatization'' after 
                ``Transition'' in the heading; and
                    (B) by striking ``the transition date'' and 
                inserting ``the privatization date (or, in the event 
                the privatization date does not occur, the transition 
                date)''.
    (f) Transfer of Uranium.--
            (1) Amendment.--Title II (42 U.S.C. 2297 et seq.) is 
        amended by redesignating section 1408 as section 1409 and by 
        inserting after section 1407 the following:

``SEC. 1408. URANIUM TRANSFERS AND SALES.

    ``(a) Transfers and Sales by the Secretary.--The Secretary shall 
not provide enrichment services or transfer or sell any uranium 
(including natural or enriched uranium in any form) to any person 
except as provided in this section.
    ``(b) Russian Heu.--
            (1) Tranfers.--Prior to December 31, 1996, the United 
        States Executive Agent under the Russian HEU Agreement shall 
        transfer to the Secretary without charge an amount of uranium 
        hexafluoride equivalent to the natural uranium component of 
        low-enriched uranium derived from at least 18 metric tons of 
        highly enriched uranium purchased from the Russian Executive 
        Agent under the Russian HEU Agreement. The quantity of such 
        uranium hexafluoride delivered to the Secretary shall be based 
        on a tails assay of 0.30 U235. Title to uranium hexafluoride 
        delivered to the Secretary pursuant to this paragraph shall 
        transfer to the Secretary upon delivery of such material to the 
        Secretary. Uranium hexafluoride delivered to the Secretary 
        pursuant to this paragraph shall be deemed to be of Russian 
        origin.
            ``(2) Contracts.--Within 7 years of the date of enactment 
        of the USEC Privatization Act, the Secretary shall enter into 
        contracts to sell the uranium hexafluoride transferred to the 
        Secretary pursuant to paragraph (1). Such uranium hexafluoride 
        shall be sold--
                    ``(A) at any time for use in the United States for 
                the purpose of overfeeding;
                    ``(B) at any time for use outside the United 
                States; and
                    ``(C) for consumption by end users in the United 
                States not prior to January 1, 2002, in volumes not to 
                exceed 3 million pounds U3O8 equivalent per year.
            ``(3) Uranium hexafluoride.--With respect to all low-
        enriched uranium that is delivered to the United States 
        Executive Agent under the Russian HEU Agreement after January 
        1, 1997, the United States Executive Agent shall, upon request 
        of the Russian Executive Agent, deliver to the Russian 
        Executive Agent an amount of uranium hexafluoride equivalent to 
        the natural uranium component of such low-enriched uranium 
        simultaneously with the delivery of such low-enriched uranium. 
        The quantity of such uranium hexafluoride delivered to the 
        Russian Executive Agent shall be based on a tails assay of 0.30 
        U235. Title to uranium hexafluoride delivered to the Russian 
        Executive Agent pursuant to this paragraph shall transfer to 
        the Russian Executive Agent upon delivery of such material to 
        the Russian Executive Agent at a North American facility 
        designated by the Russian Executive Agent. Uranium hexafluoride 
        delivered to the Russian Executive Agent pursuant to this 
        paragraph shall be deemed to be of Russian origin. Such uranium 
        hexafluoride may be sold to any person or entity consistent 
        with the limitations on delivery to end users set forth in this 
        subsection. Nothing in this subsection shall restrict the sale 
        of the conversion component of such uranium hexafluoride.
            ``(4) Independent party.--In the event that the Russian 
        Executive Agent does not request delivery of the natural 
        uranium component of any low-enriched uranium, as contemplated 
        in paragraph (3), within 90 days of the date such low-enriched 
        uranium is delivered to the United States Executive Agent, then 
        the United States Executive Agent shall engage an independent 
        party through a competitive selection process to auction an 
        amount of uranium hexafluoride equivalent to the natural 
        uranium component of such low-enriched uranium. Such 
        independent party shall sell such uranium hexafluoride to any 
        person or entity consistent with the limitations set forth in 
        this subsection. The independent entity shall pay to the 
        Russian Executive Agent the proceeds of any such auction less 
        all transaction and other administrative costs. The quantity of 
        such uranium hexafluoride auctioned shall be based on a tails 
        assay of 0.30 U235. Title to uranium hexafluoride auctioned 
        pursuant to this paragraph shall transfer to the buyer of such 
        material upon delivery of such material to the buyer. Uranium 
        hexafluoride auctioned pursuant to this paragraph shall be 
        deemed to be of Russian origin.
            ``(5) Consumption.--Except as provided in paragraphs (6) 
        and (7), uranium hexafluoride delivered to the Secretary under 
        paragraph (1) or the Russian Executive Agent under paragraph 
        (3) or auctioned pursuant to paragraph (4), may not be 
        delivered for consumption by end users in the United States 
        prior to January 1, 1998 and thereafter only in accordance with 
        the following schedule:

                                    Annual Maximum Deliveries to End 
                                            Users
``Year                              (millions lbs. U3O8 
                                            equivalent)
    1998-
                                        2 million lbs. U3O8 
                                                equivalent
    1999-
                                        4 million lbs. U3O8 
                                                equivalent
    2000-
                                        6 million lbs. U3O8 
                                                equivalent
    2001-
                                        8 million lbs. U3O8 
                                                equivalent
    2002-
                                        10 million lbs. U3O8 
                                                equivalent
    2003-
                                        12 million lbs. U3O8 
                                                equivalent
    2004-
                                        14 million lbs. U3O8 
                                                equivalent
    2005 and each year thereafter
                                        16 million lbs. U3O8 
                                                equivalent

            ``(6) Matched Sales.--Uranium hexafluoride delivered to the 
        Secretary under paragraph (1) or the Russian Executive Agent 
        under paragraph (3) or auctioned pursuant to paragraph (4) may 
        be sold at any time as Russian-origin natural uranium in a sale 
        with an equal portion of U.S.-origin natural uranium pursuant 
        to the Suspension Agreement and in such case shall not be 
        counted against the annual maximum deliveries set forth in 
        paragraph (5).
            ``(7) Overfeeding.--Uranium hexafluoride delivered to the 
        Secretary under paragraph (1) or the Russian Executive Agent 
        under paragraph (3) or auctioned pursuant to paragraph (4) may 
        be sold at any time for use in the United States for the 
        purpose of overfeeding in the operations of enrichment 
        facilities.
    ``(c) Transfers to the corporation.--(1) Before the privatization 
date, the Secretary may transfer to the Corporation without charge the 
low enriched uranium from up to 50 metric tons of highly enriched 
uranium and up to 7,000 metric tons of natural uranium, subject to the 
restrictions in subsection (b)(2).
    ``(2) The Corporation (or its successor) may not deliver for 
commercial end use--
            ``(A) any of the natural uranium transferred under this 
        subsection before January 1, 1998;
            ``(B) more than 10 percent of the natural uranium (by 
        uranium hexafluoride equivalent content) transferred under this 
        subsection or more than 4 million pounds, whichever is less, in 
        any calendar year after 1997; or
            ``(C) more than 800,000 separative work units of low-
        enriched uranium transferred under this subsection in any 
        calendar year.
    ``(d) Inventory Sales.--(1) In addition to the transfers authorized 
under subsection (b), the Secretary may, from time to time, sell 
natural and low-enriched uranium (including low-enriched uranium 
derived from highly enriched uranium) from the Department of Energy s 
stockpile.
    ``(2) Except as provided in subsections (b) and (d), no sale or 
transfer of natural or low-enriched uranium shall be made unless--
            ``(A) the President determines that the material is not 
        necessary to national security needs,
            ``(B) the Secretary determines that the sale of the 
        material will not have an adverse impact on the domestic 
        uranium mining and enrichment industries, taking into account 
        the sales of uranium under the Russian HEU Agreement and the 
        Suspension Agreement, and
            ``(C) the price paid to the Secretary will not be less than 
        the fair market value of the material.
    ``(e) Government Transfers.--Notwithstanding subsection (c), the 
Secretary may transfer or sell low-enriched uranium--
            ``(1) to a federal agency if the material is transferred 
        for the use of the receiving agency without any resale or 
        transfer to another entity and the material does not meet 
        commercial specifications;
            ``(2) to any person for national security purposes, as 
        determined by the Secretary; or
            ``(3) to any state or local agency or nonprofit, 
        charitable, or educational institution for use other than the 
        generation of electricity for commercial use.''.
            (2) Conforming Amendment.--The table of contents for 
        chapter 24 is amended by redesignating the item relating to 
        section 1408 as the item relating to section 1409 and by 
        inserting after the item for section 1407 the following:

``Sec. 1408. Uranium transfers and sales.''.

SEC. 3040. PRIVATIZATION OF THE CORPORATION.

    (a) Establishment of Private Corporation.--Chapter 25 (42 U.S.C. 
2297d et seq.) is amended by adding at the end the following new 
section:

``SEC. 1503. ESTABLISHMENT OF PRIVATE CORPORATION.

    ``(a) Establishment.--
            ``(1) In general.--In order to facilitate privatization, 
        the Corporation may provide for the establishment of a private 
        corporation organized under the laws of any of the several 
        States. Such corporation shall have among its purposes the 
        following:
                    ``(A) To help maintain a reliable and economical 
                domestic source of uranium enrichment services.
                    ``(B) To undertake any and all activities as 
                provided in its corporate charter.
            ``(2) Authorities.--The corporation established pursuant to 
        paragraph (1) shall be authorized to--
                    ``(A) enrich uranium, provide for uranium to be 
                enriched by others, or acquire enriched uranium 
                (including low-enriched uranium derived from highly 
                enriched uranium);
                    ``(B) conduct, or provide for conducting, those 
                research and development activities related to uranium 
                enrichment and related processes and activities the 
                corporation considers necessary or advisable to 
                maintain itself as a commercial enterprise operating on 
                a profitable and efficient basis;
                    ``(C) enter into transactions regarding uranium, 
                enriched uranium, or depleted uranium with--
                            ``(i) persons licensed under section 53, 
                        63, 103, or 104 in accordance with the licenses 
                        held by those persons;
                            ``(ii) persons in accordance with, and 
                        within the period of, an agreement for 
                        cooperation arranged under section 123; or
                            ``(iii) persons otherwise authorized by law 
                        to enter into such transactions;
                    ``(D) enter into contracts with persons licensed 
                under section 53, 63, 103, or 104, for as long as the 
                corporation considers necessary or desirable, to 
                provide uranium or uranium enrichment and related 
                services;
                    ``(E) enter into contracts to provide uranium or 
                uranium enrichment and related services in accordance 
                with, and within the period of, an agreement for 
                cooperation arranged under section 123 or as otherwise 
                authorized by law; and
                    ``(F) take any and all such other actions as are 
                permitted by the law of the jurisdiction of 
                incorporation of the corporation.
            ``(3) Transfer of assets.--For purposes of implementing the 
        privatization, the Corporation may transfer some or all of its 
        assets and obligations to the corporation established pursuant 
        to this section, including--
                    ``(A) all of the Corporation's assets and 
                obligations, including all of the Corporation's rights, 
                duties, and obligations accruing subsequent to the 
                privatization date under contracts, agreements, and 
                leases entered into by the Corporation before the 
                privatization date, including all uranium enrichment 
                contracts and power purchase contracts;
                    ``(B) all funds in accounts of the Corporation held 
                by the Treasury or on deposit with any bank or other 
                financial institution;
                    ``(C) all of the Corporation's rights, duties, and 
                obligations, accruing subsequent to the privatization 
                date, under the power purchase contracts covered by 
                section 1401(b)(2)(B);
                    ``(D) all of the Corporation's rights, duties, and 
                obligations, accruing subsequent to the privatization 
                date, under the lease agreement between the Department 
                and the Corporation executed by the Department and the 
                Corporation pursuant to section 1403; and
                    ``(E) all of the Corporation's records, including 
                all of the papers and other documentary materials, 
                regardless of physical form or chharacteristics, made 
                or received by the Corporation.
            ``(4) Merger or consolidation.--For purposes of 
        implementing the privatization, the Corporation may merge or 
        consolidate with the corporation established pursuant to 
        subsection (a)(1) if such action is contemplated by the plan 
        for privatization approved by the President under section 
        1502(b). The Board shall have exclusive authority to approve 
        such merger or consolidation and to take all further actions 
        necessary to consummate such merger or consolidation, and no 
        action by or in respect of shareholders shall be required. The 
        merger or consolidation shall be effected in accordance with, 
        and have the effects of a merger or consolidation under, the 
        laws of the jurisdiction of incorporation of the surviving 
        corporation, and all rights and benefits provided under this 
        title to the Corporation shall apply to the surviving 
        corporation as if it were the Corporation.
    ``(b) OSHA Requirements.--For purposes of the regulation of 
radiological and nonradiological hazards under the Occupational Safety 
and Health Act of 1970, the corporation established pursuant to 
subsection (a)(1) shall be treated in the same manner as other 
employers licensed by the Nuclear Regulatory Commission. Any 
interagency agreement entered into between the Nuclear Regulatory 
Commission and the Occupational Safety and Health Administration 
governing the scope of their respective regulatory authorities shall 
apply to the corporation as if the corporation were a Nuclear 
Regulatory Commission licensee.
    ``(c) Legal Status of Private Corporation.--
            ``(1) Not federal agency.--The corporation established 
        pursuant to subsection (a)(1) shall not be an agency, 
        instrumentality, or establishment of the United States 
        Government and shall not be a Government corporation or 
        Government-controlled corporation.
            ``(2) No recourse against united states.--Obligations of 
        the corporation established pursuant to subsection (a)(1) shall 
        not be obligations of, or guaranteed as to principal or 
        interest by, the Corporation or the United States, and the 
        obligations shall so plainly state.
            ``(3) No claims court jurisdiction.--No action under 
        section 1491 of title 28, United States Code, shall be 
        allowable against the United States based on the actions of the 
        corporation established pursuant to subsection (a)(1).
    ``(d) Board of Director's Election After Public Offering.--In the 
event that the privatization is implemented by means of a public 
offering, an election of the members of the board of directors of the 
Corporation by the shareholders shall be conducted before the end of 
the 1-year period beginning the date shares are first offered to the 
public pursuant to such public offering.
    ``(e) Adequate Proceeds.--The Secretary of Energy shall not allow 
the privatization of the Corporation unless before the sale date the 
Secretary determines that the estimated sum of the gross proceeds from 
the sale of the Corporation will be an adequate amount.''.
    (b) Ownership Limitations.--Chapter 25 (as amended by subsection 
(a)) is amended by adding at the end the following new section:

``SEC. 1504. OWNERSHIP LIMITATIONS.

    ``(a) Securities Limitation.--In the event that the privatization 
is implemented by means of a public offering, during a period of 3 
years beginning on the privatization date, no person, directly or 
indirectly, may acquire or hold securities representing more than 10 
percent of the total votes of all outstanding voting securities of the 
Corporation.
    ``(b) Application.--Subsection (a) shall not apply--
            ``(1) to any employee stock ownership plan of the 
        Corporation,
            ``(2) to underwriting syndicates holding shares for resale, 
        or
            ``(3) in the case of shares beneficially held for others, 
        to commercial banks, broker-dealers, clearing corporations, or 
        other nominees.
    ``(c) Acquisitions.--No director, officer, or employee of the 
Corporation may acquire any securities, or any right to acquire 
securities, of the Corporation--
            ``(1) in the public offering of securities of the 
        Corporation in the implementation of the privatization,
            ``(2) pursuant to any agreement, arrangement, or 
        understanding entered into before the privatization date, or
            ``(3) before the election of directors of the Corporation 
        under section 1503(d) on any terms more favorable than those 
        offered to the general public.''.
    (c) Exemption From Liability.--Chapter 25 (as amended by subsection 
(b)) is amended by adding at the end the following new section:

``SEC. 1505. EXEMPTION FROM LIABILITY.

    ``(a) In General.--No director, officer, employee, or agent of the 
Corporation shall be liable, for money damages or otherwise, to any 
party if, with respect to the subject matter of the action, suit, or 
proceeding, such person was fulfilling a duty, in connection with any 
action taken in connection with the privatization, which such person in 
good faith reasonably believed to be required by law or vested in such 
person.
    ``(b) Exception.--The privatization shall be subject to the 
Securities Act of 1933 and the Securities Exchange Act of 1934. The 
exemption set forth in subsection (a) shall not apply to claims arising 
under such Acts or under the Constitution or laws of any State, 
territory, or possession of the United States relating to transactions 
in securities, which claims are in connection with a public offering 
implementing the privatization.
    ``(c) Securities Laws Applicable.--Any offering or sale of 
securities by the corporation established pursuant to section 
1503(a)(1) shall be subject to the Securities Act of 1933, the 
Securities Exchange Act of 1934 and the provisions of the Constitution 
and laws of any State, territory, or possession of the United States 
relating to transactions in securities.''.
    (d) Resolution of Certain Issues.--Chapter 25 (as amended by 
subsection (c)) is amended by adding at the end the following new 
section:

``SEC. 1506. RESOLUTION OF CERTAIN ISSUES.

    ``(a) Corporation Actions.--Notwithstanding any provision of any 
agreement to which the Corporation is a party, the Corporation shall 
not be considered to be in breach, default, or violation of any such 
agreement because of any provision of this chapter or any action the 
Corporation is required to take under this chapter.
    ``(b) Right To Sue Withdrawn.--The United States hereby withdraws 
any stated or implied consent for the United States, or any agent or 
officer of the United States, to be sued by any person for any legal, 
equitable, or other relief with respect to any claim arising out of, or 
resulting from, acts or omissions under this chapter.''.
    (e) Additional Provisions.--Chapter 25 (as amended by subsection 
(d)) is amended by adding at the end the following:

``SEC. 1507. APPLICATION OF PRIVATIZATION PROCEEDS.

    ``The proceeds from the privatization shall be included in the 
budget baseline required by the Balanced Budget and Emergency Deficit 
Control Act of 1985 and shall be counted as an offset to direct 
spending for purposes of section 252 of such Act, notwithstanding 
section 257(e) of such Act.''.
    (f) Conforming Amendment.--The table of contents for chapter 25 is 
amended by inserting after the item for section 1502 the following:

``Sec. 1503. Establishment of Private Corporation.
``Sec. 1504. Ownership Limitations.
``Sec. 1505. Exemption from Liability.
``Sec. 1506. Resolution of Certain Issues.
``Sec. 1507. Application of Privatization Proceeds.''.

    (g) Section 193 (42 U.S.C. 2243) is amended by adding at the end 
the following:
    ``(f) Limitation.--If the privatization of the United States 
Enrichment Corporation results in the Corporation being--
            ``(1) owned, controlled, or dominated by a foreign 
        corporation or a foreign government, or
            ``(2) otherwise inimical to the common defense or security 
        of the United States,
any license held by the Corporation under sections 53 and 63 shall be 
terminated.''.
    (h) Period for Congressional Review.--Section 1502(d) (42 U.S.C. 
2297d-1(d)) is amended by striking ``less than 60 days after 
notification of the Congress'' and inserting ``less than 60 days after 
the date of the report to Congress by the Comptroller General under 
subsection (c)''.

SEC. 3041. PERIODIC CERTIFICATION OF COMPLIANCE.

    Section 1701(c)(2) (42 U.S.C. 2297f(c)(2)) is amended by striking 
``Annual application for certificate of compliance.--The Corporation 
shall apply at least annually to the Nuclear Regulatory Commission for 
a certificate of compliance under paragraph (1).'' and inserting 
``Periodic application for certificate of compliance.--The Corporation 
shall apply to the Nuclear Regulatory Commission for a certificate of 
compliance under paragraph (1) periodically, as determined by the 
Nuclear Regulatory Commission, but not less than every 5 years.''.

SEC. 3042. LICENSING OF OTHER TECHNOLOGIES.

    Subsection (a) of section 1702 (42 U.S.C. 2297f-1(a)) is amended by 
striking ``other than'' and inserting ``including''.

SEC. 3043. CONFORMING AMENDMENTS.

    (a) Repeals in Atomic Energy Act of 1954 as of the Privatization 
Date.--
            (1) Repeals.--As of the privatization date (as defined in 
        section 1201(13) of the Atomic Energy Act of 1954), the 
        following sections (as in effect on such privatization date) of 
        the Atomic Energy Act of 1954 are repealed:
                    (A) Section 1202.
                    (B) Sections 1301 through 1304.
                    (C) Sections 1306 through 1316.
                    (D) Sections 1404 and 1405.
                    (E) Section 1601.
                    (F) Sections 1603 through 1607.
            (2) Conforming amendment.--The table of contents of such 
        Act is amended by repealing the items referring to sections 
        repealed by paragraph (1).
    (b) Statutory Modifications.--As of such privatization date, the 
following shall take effect:
            (1) For purposes of title I of the Atomic Energy Act of 
        1954, all references in such Act to the ``United States 
        Enrichment Corporation'' shall be deemed to be references to 
        the corporation established pursuant to section 1503 of the 
        Atomic Energy Act of 1954 (as added by section 3036(a)).
            (2) Section 1018(1) of the Energy Policy Act of 1992 (42 
        U.S.C. 2296b-7(1)) is amended by striking ``the United States'' 
        and all that follows through the period and inserting ``the 
        corporation referred to in section 1201(4) of the Atomic Energy 
        Act of 1954.''.
            (3) Section 9101(3) of title 31, United States Code, is 
        amended by striking subparagraph (N), as added by section 
        902(b) of Public Law 102-486.
    (c) Revision of Section 1305.--As of such privatization date, 
section 1305 of the Atomic Energy Act of 1954 (42 U.S.C 2297b-4) is 
amended--
            (1) by repealing subsections (a), (b), (c), and (d), and
            (2) in subsection (e)--
                    (A) by striking the subsection designation and 
                heading,
                    (B) by redesignating paragraph (1) (as added by 
                section 3038(a)) as subsection (a), striking ``In 
                general.--'' and inserting ``In General.--'', 
                redesignating subparagraphs (A) through (E) as 
                paragraphs (1) through (5) (redesignating in such 
                paragraph, clauses (i) through (iii) as subparagraphs 
                (A) through (C)), striking ``clauses (i) through 
                (iii)'' in paragraph (5) and inserting ``subparagraphs 
                (A) through (C)'', and by moving the margins 2-ems to 
                the left,
                    (C) by striking paragraph (3), and
                    (D) by redesignating paragraph (4) (as amended by 
                section 3038(b)) as subsection (b), and by moving the 
                margins 2-ems to the left.

               Subtitle D--Waste Isolation Pilot Project

SEC. 3045. SHORT TITLE AND REFERENCE.

    (a) Short Title.--This subtitle may be cited as the ``Waste 
Isolation Pilot Plant Land Withdrawal Amendment Act''.
    (b) Reference.--Except as otherwise expressly provided, whenever in 
this subtitle an amendment or repeal is expressed in terms of an 
amendment to, or repeal of, a section or other provision, the reference 
shall be considered to be made to a section or other provision of the 
Waste Isolation Pilot Plant Land Withdrawal Act (Public Law 102-579).

SEC. 3046. DEFINITIONS.

    Paragraphs (18) and (19) of section 2 are repealed.

SEC. 3047. TEST PHASE AND RETRIEVAL PLANS.

    Section 5 is repealed.

SEC. 3048. TEST PHASE ACTIVITIES.

    Section 6 is amended--
            (1) by repealing subsections (a) and (b),
            (2) by repealing paragraph (1) of subsection (c),
            (3) by repealing subparagraph (A) of paragraph (2) of 
        subsection (c),
            (4) by redesignating subsection (c) as subsection (a), by 
        striking the subsection heading and the matter before paragraph 
        (1) and inserting ``Study.--The following study shall be 
        conducted:'', by striking ``(2) Remote-handled waste.--'', by 
        striking ``(B) Study.--'', and by redesignating clauses (i), 
        (ii), and (iii) as paragraphs (1), (2), and (3), respectively, 
        and moving them 4-ems to the left, and
            (5) by redesignating subsection (d) as subsection (b).

SEC. 3049. DISPOSAL OPERATIONS.

    Section 7(b) is repealed.

SEC. 3050. ENVIRONMENTAL PROTECTION AGENCY DISPOSAL REGULATIONS.

    (a) Section 8(d)(1).--Section 8(d)(1) is amended by striking 
subparagraphs (B), (C), and (D) and by adding after subparagraph (A) 
the following:
                    ``(B) Comments of Administrator.--Within 2 months 
                of receipt of the application under subparagraph (A), 
                the Administrator shall provide the Secretary with any 
                comments on the Secretary's application. Within one 
                month of the receipt of such comments, the Secretary 
                shall, to the extent practicable, incorporate the 
                Administrator's comments in the Secretary's 
                application. The comments of the Administrator provided 
                to the Secretary should also be transmitted to the 
                appropriate committees of jurisdiction in the House of 
                Representatives and the Senate.''.
    (b) Section 8(d) (2), (3).--Section 8(d) is amended by striking 
paragraphs (2) and (3), by striking ``(1) Compliance with disposal 
regulations.--'', and by redesignating subparagraphs (A) and (B) of 
paragraph (1), as amended by subsection (a), as paragraphs (1) and (2), 
respectively, and moving them 2-ems to the left.
    (c) Section 8(f).--Subsection (f) of section 8 is amended--
            (1) by amending the subsection heading to read ``Periodic 
        Review'', and
            (2) by amending paragraph (2) to read as follows:
            ``(2) Review by the administrator.--The Administrator 
        shall, not later than 6 months after receiving a submission 
        under paragraph (1), comment on whether or not the WIPP 
        facility continues to be in compliance with the final 
        disposition regulations.''.
    (d) Section 8(g).--Section 8(g) is amended to read as follows:
    ``(g) Engineered and Natural Barriers, Etc.--The Secretary should 
determine whether or not engineered barriers or natural barriers, or 
both, will be required at WIPP consistent with regulations published as 
part 191 of 40 C.F.R.''.

SEC. 3051. COMPLIANCE WITH ENVIRONMENTAL LAWS AND REGULATIONS.

    (a) Section 9(a)(1).--Section 9(a)(1) is amended by adding after 
and below subparagraph (H) the following:
        ``With respect to transuranic mixed waste designated by the 
        Secretary for disposal at WIPP, such waste is exempt from the 
        land disposal restrictions published at part 268 of 40 C.F.R. 
        because compliance with the environmental radiation protection 
        standards published at part 191 of 40 C.F.R. renders compliance 
        with the land disposal restrictions unnecessary to achieve 
        desired environmental protection and a no migration variance is 
        not required for disposal of transuranic mixed waste at 
        WIPP.''.
    (b) Section 9(b).--Subsection (b) of section 9 is repealed.
    (c) Sections 9(c), (d).--Subsections (c) and (d) of section 9 are 
repealed.

SEC. 3052. RETRIEVABILITY.

    Section 10 is amended to read as follows:

``SEC. 10. TRANSURANIC WASTE.

    ``It is the intent of Congress that a decision will be made by the 
Secretary with respect to the disposal of transuranic waste no later 
than March 31, 1997.''.

SEC. 3053. DECOMMISSIONING OF WIPP.

    Section 13 is amended--
            (1) by repealing subsection (a), and
            (2) in subsection (b), by striking ``(b) Management Plan 
        for the Withdrawal After Decommissioning.--Within 5 years after 
        the date of the enactment of this Act, the'' and inserting 
        ``The''.

SEC. 3054. ECONOMIC ASSISTANCE AND MISCELLANEOUS PAYMENTS.

    Section 15(a) is amended--
            (1) by striking ``to the Secretary for payments to the 
        State $20,000,000 for each of the 15 fiscal years beginning 
        with the fiscal year in which the transport of transuranic 
        waste to WIPP is initiated'' and inserting ``to the State 
        $20,000,000 for each of the 15 fiscal years beginning with the 
        date of the enactment of the Waste Isolation Pilot Plant Land 
        Withdrawal Amendment Act'', and
            (2) by adding at the end the following: ``An appropriation 
        to the State shall be in addition to any appropriation for 
        WIPP.''.

SEC. 3055. NON-DEFENSE WASTE.

    Section 7(a) is amended by redesignating paragraph (3) as paragraph 
(4) and by inserting after paragraph (2) the following:
            ``(3) Nondefense waste.--Within the capacity prescribed by 
        paragraph (4), WIPP may receive transuranic waste from the 
        Secretary which did not result from a defense activity.''.

                  Subtitle E--Naval Petroleum Reserves

SEC. 3071. SHORT TITLE.

    This subtitle may be cited as the ``Naval Petroleum Reserve 
Privatization Act of 1995''.

SEC. 3072. SALE OF NAVAL PETROLEUM RESERVES.

    (a) Sale of Reserves Required.--Chapter 641 of title 10, United 
States Code, is amended by inserting after section 7421 the following 
new section:

``Sec. 7421a. Sale of naval petroleum reserves

    ``(a) Sale Required.--(1) Notwithstanding any other provision of 
this chapter, the Secretary shall sell all right, title, and interest 
of the United States in and to the lands owned or controlled by the 
United States inside the naval petroleum and oil shale reserves 
established by this chapter. In the case of Naval Petroleum Reserve 
Numbered 1, the lands to be sold shall include sections 16 and 36 of 
township 30 south, range 23 east, Mount Diablo Principal Meridian, 
California.
    ``(2) Not later than December 31, 1996, the Secretary shall enter 
into one or more contracts for the sale of all of the interest of the 
United States in the naval petroleum reserves.
    ``(b) Timing and Administration of Sale.--(1) Not later than 
January 1, 1996, the Secretary shall retain the services of five 
independent experts in the valuation of oil and gas fields to conduct 
separate assessments, in a manner consistent with commercial practices, 
of the fair market value of the interest of the United States in each 
naval petroleum reserve. In making their assessments for each naval 
petroleum reserve, the independent experts shall consider (among other 
factors) all equipment and facilities to be included in the sale, the 
net present value of the reserve, and the net present value of the 
anticipated revenue stream that the Secretary determines the Treasury 
would receive from the reserve if it were not sold, adjusted for any 
anticipated increases in tax revenues that would result if it were 
sold. The independent experts shall complete their assessments not 
later than July 1, 1996. In setting the minimum acceptable price for 
each naval petroleum reserve, the Secretary shall consider the average 
of the five assessments regarding the reserve or, if more advantageous 
to the Government, the average of three assessments after excluding the 
high and low assessments.
    ``(2) Not later than March 1, 1996, the Secretary shall retain the 
services of an investment banker to independently administer, in a 
manner consistent with commercial practices and in a manner that 
maximizes sale proceeds to the Government, the sale of the naval 
petroleum reserves under this section. The Secretary may enter into the 
contracts required under this paragraph and paragraph (1) on a 
noncompetitive basis.
    ``(3) Not later than August 1, 1996, the sales administrator 
selected under paragraph (2) shall complete a draft contract for the 
sale of each naval petroleum reserve, which shall accompany the 
invitation for bids and describe the terms and provisions of the sale 
of the interest of the United States in the reserve. Each draft 
contract shall identify all equipment and facilities to be included in 
the sales. Each draft contract, including the terms and provisions of 
the sale of the interest of the United States in the naval petroleum 
reserves, shall be subject to review and approval by the Secretary, the 
Secretary of the Treasury, and the Director of the Office of Management 
and Budget.
    ``(4) Not later than September 1, 1996, the Secretary shall publish 
an invitation for bids for the purchase of the naval petroleum 
reserves.
    ``(5) Not later than November 1, 1996, the Secretary shall accept 
the highest responsible offer for purchase of the interest of the 
United States in the naval petroleum reserves, or a particular reserve, 
that meets or exceeds the minimum acceptable price determined under 
paragraph (1). The Secretary may accept an offer for only a portion of 
a reserve so long as the entire reserve is still sold under this 
section at a price that meets or exceeds the minimum acceptable price.
    ``(c) Future Liabilities.--The United States shall hold harmless 
and fully indemnify the purchaser of the interest of the United States 
in a naval petroleum reserve from and against any claim or liability as 
a result of ownership in the reserve by the United States.
    ``(d) Special Rules Preparatory to Sale of Naval Petroleum Reserve 
Numbered 1.--(1) Not later than June 1, 1996, the Secretary shall 
finalize equity interests of the known oil and gas zones in Naval 
Petroleum Reserve Numbered 1 in the manner provided by this subsection.
    ``(2) The Secretary shall retain the services of an independent 
petroleum engineer, mutually acceptable to the equity owners, who shall 
prepare a recommendation on final equity figures. The Secretary may 
accept the recommendation of the independent petroleum engineer for 
final equity in each known oil and gas zone and establish final equity 
interest in the Naval Petroleum Reserve Numbered 1 in accordance with 
such recommendation, or the Secretary may use such other method to 
establish final equity interest in that reserve as the Secretary 
considers appropriate. The Secretary may enter into the contract 
required under this paragraph on a noncompetitive basis.
    ``(3) If, on the effective date of this section, there is an 
ongoing equity redetermination dispute between the equity owners under 
section 9(b) of the unit plan contract, such dispute shall be resolved 
in the manner provided in the unit plan contract not later than June 1, 
1996. Such resolution shall be considered final for all purposes under 
this section.
    ``(4) In this section, the term `unit plan contract' means the unit 
plan contract between equity owners of the lands within the boundaries 
of Naval Petroleum Reserve Numbered 1 (Elk Hills) entered into on June 
19, 1944.
    ``(e) Production Allocation Regarding Naval Petroleum Reserve 
Numbered 1.--(1) As part of the contract for purchase of Naval 
Petroleum Reserve Numbered 1, the purchaser of the interest of the 
United States in that reserve shall agree to make up to 25 percent of 
the purchaser's share of annual petroleum production from the purchased 
lands available for sale to small refiners, which do not have their own 
adequate sources of supply of petroleum, for processing or use only in 
their own refineries. None of the reserved production sold to small 
refiners may be resold in kind. The purchaser of that reserve may 
reduce the quantity of petroleum reserved under this subsection in the 
event of an insufficient number of qualified bids. The seller of this 
petroleum production has the right to refuse bids that are less than 
the prevailing market price of comparable oil.
    ``(2) The purchaser of Naval Petroleum Reserve Numbered 1 shall 
also agree to ensure that the terms of every sale of the purchaser's 
share of annual petroleum production from the purchased lands shall be 
so structured as to give full and equal opportunity for the acquisition 
of petroleum by all interested persons, including major and independent 
oil producers and refiners alike.
    ``(f) Maintaining Production Pending Sale of Naval Petroleum 
Reserve Numbered 1.--Until the sale of Naval Petroleum Reserve Numbered 
1 is completed under this section, the Secretary shall continue to 
produce that reserve at the maximum daily oil or gas rate from a 
reservoir, which will permit maximum economic development of the 
reservoir consistent with sound oil field engineering practices in 
accordance with section 3 of the unit plan contract. The definition of 
maximum efficient rate in section 7420(6) of this title shall not apply 
to Naval Petroleum Reserve Numbered 1.
    ``(g) Effect on Existing Contracts.--(1) In the case of any 
contract, in effect on the effective date of this section, for the 
purchase of production from any part of the United States' share of the 
naval petroleum reserves, the sale of the interest of the United States 
in the reserves shall be subject to the contract for a period of three 
months after the closing date of the sale or until termination of the 
contract, whichever occurs first. The term of any contract entered into 
after the effective date of this section for the purchase of such 
production shall not exceed the anticipated closing date for the sale 
of the reserve.
    ``(2) In the case of Naval Petroleum Reserve Numbered 1, the 
Secretary shall exercise the termination procedures provided in the 
contract between the United States and Bechtel Petroleum Operation, 
Inc., Contract Number DE-ACO1-85FE60520 so that the contract terminates 
not later than the date of closing of the sale of that reserve.
    ``(3) In the case of Naval Petroleum Reserve Numbered 1, the 
Secretary shall exercise the termination procedures provided in the 
unit plan contract so that the unit plan contract terminates not later 
than the date of closing of the sale of that reserve.
    ``(h) Set Aside of Sale Proceeds on Account of California Claims 
Regarding Naval Petroleum Reserve Numbered 1.--(1) An amount equal to 
seven percent of the proceeds from the sale of Naval Petroleum Reserve 
Numbered 1 shall be retained in a special account in the Treasury for 
the purpose of paying any amount that may be owed by the United States 
as a result of legal action in connection with claims against the 
United States by the State of California and the Teachers' Retirement 
Fund of the State of California with respect to lands within Naval 
Petroleum Reserve Numbered 1, including sections 16 and 36 of township 
30 south, range 23 east, Mount Diablo Principal Meridian, California, 
or production or proceeds of sale from that reserve.
    ``(2) In determining the amount of the proceeds arising from the 
sale of Naval Petroleum Reserve Numbered 1, the Secretary shall deduct 
the costs incurred to conduct the sale of that reserve.
    ``(3) A payment may be made from the special account only to the 
extent that the aggregate amount of such payment is provided for in 
advance in an appropriations Act.
    ``(i) Effect on Antitrust Laws.--Nothing in this section shall be 
construed to alter the application of the antitrust laws of the United 
States to the purchaser of a naval petroleum reserve or to the lands in 
the naval petroleum reserves subject to sale under this section upon 
the completion of the sale.
    ``(j) Preservation of Private Right, Title, and Interest.--Nothing 
in this section shall be construed to adversely affect the ownership 
interest of any other entity having any right, title, and interest in 
and to lands within the boundaries of the naval petroleum reserves.
    ``(k) Congressional Notification.--Section 7431 of this title shall 
not apply to the sale of the naval petroleum reserves under this 
section. However, the Secretary may not enter into a contract for the 
sale of a naval petroleum reserve until the end of the 15-day period 
beginning on the date on which the Secretary notifies the Committee on 
Armed Services of the Senate and the Committee on National Security and 
the Committee on Commerce of the House of Representatives that the 
Secretary has accepted an offer under subsection (b)(5) for the sale of 
that reserve.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
7421 the following new item:

``7421a. Sale of naval petroleum reserves.''.

     TITLE IV--COMMITTEE ON ECONOMIC AND EDUCATIONAL OPPORTUNITIES

SEC. 4000. TABLE OF CONTENTS.

    The table of contents for this title is as follows:

     TITLE IV--COMMITTEE ON ECONOMIC AND EDUCATIONAL OPPORTUNITIES

                      Subtitle A--Higher Education

Sec. 4001. Short title; effective date.
Sec. 4002. Termination of direct lending.
Sec. 4003. Elimination of grace period interest subsidies.
Sec. 4004. Plus program reductions.
Sec. 4005. Loan transfer fee.
Sec. 4006. Lender fees to guaranty agencies.
Sec. 4007. Additional loan program changes.
Sec. 4008. Use of reserve funds to purchase defaulted loans.
Sec. 4009. Extension of period a guaranty agency must hold a defaulted 
loan.
Sec. 4010. Privatization of College Construction Loan Insurance 
Association.
Sec. 4011. Eligible institution.
Sec. 4012. Extension of program duration.

          Subtitle B--Davis-Bacon and Service Contract Repeals

Sec. 4101. Davis-Bacon Act.
Sec. 4102. Service Contract Act of 1965.

   Subtitle C--Provisions Relating to the Employee Retirement Income 
                          Security Act of 1974

Sec. 4201. Waiver of minimum period for joint and survivor annuity 
explanation before annuity starting date.

                      Subtitle A--Higher Education

SEC. 4001. SHORT TITLE; EFFECTIVE DATE.

    (a) Short Title.--This subtitle may be cited as the ``Higher 
Education Program Efficiency Act of 1995''.
    (b) Effective Date.--Except as otherwise provided therein, the 
amendments made by this subtitle shall take effect on January 1, 1996.

SEC. 4002. TERMINATION OF DIRECT LENDING.

    (a) Termination of Authority.--
            (1) Program authority.--Section 451(a) of the Higher 
        Education Act of 1965 (20 U.S.C. 1087a(a)) is amended by 
        inserting ``and ending June 30, 1996'' after ``period beginning 
        July 1, 1994''.
            (2) Termination of funding.--Section 452 of such Act (20 
        U.S.C. 1087b) is amended by adding at the end the following new 
        subsection:
    ``(e) Termination of Funding.--The Secretary shall not provide 
funds under this section for loans for any academic year beginning on 
or after July 1, 1996. The Secretary shall not pay any fees pursuant to 
subsection (b) of this section on or after January 1, 1996.''.
            (3) Termination of authority to enter new agreements.--
        Section 453(a) of such Act (20 U.S.C. 1087c(a)) is amended--
                    (A) in paragraph (1), by inserting ``and ending 
                before July 1, 1996'' after ``academic years beginning 
                on or after July 1, 1994'';
                    (B) in paragraph (2)--
                            (i) by inserting ``and'' after the 
                        semicolon at the end of subparagraph (A);
                            (ii) by striking the semicolon at the end 
                        of subparagraph (B) and inserting a period; and
                            (iii) by striking subparagraphs (C) and 
                        (D); and
                    (C) by striking paragraph (3) and redesignating 
                paragraph (4) as paragraph (3).
    (b) Administrative Cost Amendments.--Section 458 of such Act (20 
U.S.C. 1087h) of such Act is amended--
            (1) by striking subsection (d);
            (2) by redesignating subsections (b) and (c) as subsections 
        (f) and (g), respectively; and
            (3) by striking subsection (a) and inserting the following:
    ``(a) In General.--
            ``(1) Direct administrative costs.--Each fiscal year there 
        shall be available to the Secretary of Education, from funds 
        not otherwise appropriated, funds to be obligated for the 
        subsidy costs of direct administrative costs under this part, 
        subject to subsection (b) of this section.
            ``(2) Indirect administrative costs.--There shall also be 
        available from funds available from funds not otherwise 
        appropriated, funds to be obligated for indirect administrative 
        costs under this part and part B, subject to subsection (c) of 
        this section, not to exceed (from such funds not otherwise 
        appropriated) $260,000,000 in fiscal year 1994, $345,000,000 in 
        fiscal year 1995, $110,000,000 in fiscal year 1996 (of which 
        $40,000,000 shall be available for administrative cost 
        allowances for guaranty agencies for October through December 
        of 1995), and $70,000,000 in each of the fiscal years 1997 
        through 2002.
            ``(3) Reduction.--The amount authorized to be made 
        available for fiscal year 1997 under paragraph (2) shall be 
        reduced by the amount of any unobligated unexpended funds 
        available to carry out this subsection for any fiscal year 
        prior to fiscal year 1996.
    ``(b) Subsidy Costs.--For purposes of this section, `subsidy cost' 
means the estimated long-term cost to the Federal Government of direct 
administrative expenses calculated on a net present value basis.
    ``(c) Direct Administrative Expenses.--For purposes of this 
section, `direct administrative expenses' shall consist of the cost 
of--
            ``(1) activities related to credit extension, loan 
        origination, loan servicing, management of contractors, and 
        payments to contractors, other government entities, and program 
        participants;
            ``(2) collection of delinquent loans; and
            ``(3) write-off and closeout of loans.
    ``(d) Indirect Administrative Expenses.--For purposes of this 
section, `indirect administrative expenses' shall consist of the cost 
of--
            ``(1) personnel engaged in developing program regulations, 
        policy, and administrative guidelines;
            ``(2) audits of institutions and contractors;
            ``(3) program reviews; and
            ``(4) other oversight of the program.
    ``(e) Limitation on Part D Expenditures.--For any fiscal year, 
expenditures for indirect administrative expenses and for loan 
servicing for loans made pursuant to this part shall not exceed 30 
percent of funds available pursuant to paragraph (2) for such fiscal 
year.''.
    (c) Elimination of Transition to Direct Loans.--Such Act is further 
amended--
            (1) in section 422(c)(7) (20 U.S.C. 1072(c)(7))--
                    (A) by striking ``during the transition'' and all 
                that follows through ``part D of this title'' in 
                subparagraph (A); and
                    (B) by striking ``section 428(c)(10)(F)(v)'' in 
                subparagraph (B) and inserting ``section 
                428(c)(9)(F)(v)'';
            (2) in section 428(c)(8) (20 U.S.C. 1078(c)(8)), by 
        striking subparagraph (B) and inserting the following:
            ``(B) Prior to making such determination for any guaranty 
        agency, the Secretary shall, in consultation with the guaranty 
        agency, develop criteria to determine whether such guaranty 
        agency has made adequate collection efforts. In determining 
        whether a guaranty agency's collection efforts have met such 
        criteria, the Secretary shall consider the agency's record of 
        success in collecting on defaulted loans, the age of the loans, 
        and the amount of recent payments received on the loans.'';
            (3) in section 428(c)(9)(E)--
                    (A) by inserting ``or'' after the semicolon at the 
                end of clause (iv);
                    (B) by striking ``; or'' at the end of clause (v) 
                and inserting a period; and
                    (C) by striking clause (vi);
            (4) in clause (vii) of section 428(c)(9)(F)--
                    (A) by inserting ``and'' before ``to avoid 
                disruption''; and
                    (B) by striking ``, and to ensure an orderly 
                transition'' and all that follows through the end of 
                such clause and inserting a period;
            (5) in section 428(c)(9)(K), by striking ``the progress of 
        the transition from the loan programs under this part to'' and 
        inserting ``the integrity and administration of'';
            (6) in section 428(e)(1)(B)(ii), by striking ``during the 
        transition'' and all that follows through ``part D of this 
        title'';
            (7) in section 428(e)(3), by striking ``of transition'';
            (8) in section 428(j)(3)--
                    (A) by striking ``during transition to direct 
                lending''; and
                    (B) by striking ``during the transition'' and all 
                that follows through ``part D of this title,'' in 
                subparagraph (A) and inserting a comma;
            (9) in section 453(c)(2) (20 U.S.C. 1087c(c)(2)), by 
        striking ``Transition'' and inserting ``Institutional'';
            (10) in section 453(c), by striking paragraph (3); and
            (11) in section 456(b) (20 U.S.C. 1087f(b))--
                    (A) by inserting ``and'' after the semicolon at the 
                end of paragraph (3);
                    (B) by striking paragraph (4);
                    (C) by redesignating paragraph (5) as paragraph 
                (4); and
                    (D) in such paragraph (4) (as redesignated), by 
                striking ``successful operation'' and inserting 
                ``integrity and efficiency''.
    (d) Additional Conforming Amendments.--
            (1) Ability of part d borrowers to obtain federal stafford 
        consolidation loans.--Section 428C(a)(4) of such Act (20 U.S.C. 
        1078-3(a)(4)) is amended--
                    (A) by redesignating subparagraphs (C) and (D) as 
                subparagraphs (D) and (E); and
                    (B) by inserting after subparagraph (B) the 
                following new subparagraph:
                    ``(C) made under part D of this title;''.
            (2) Conforming amendments.--Section 428C(b) of such Act (20 
        U.S.C. 1078-3(b)) is amended by striking paragraph (5).

SEC. 4003. ELIMINATION OF GRACE PERIOD INTEREST SUBSIDIES.

    Section 428(a)(3) of the Higher Education Act of 1965 (20 U.S.C. 
1078(a)(3)) is amended by adding at the end the following new 
subparagraph:
            ``(C) Notwithstanding subparagraph (A), no portion of the 
        interest which accrues after the student ceases to carry at an 
        eligible institution at least one-half the normal full-time 
        academic workload (as determined by the institution) and prior 
        to the beginning of the repayment period of the loan shall be 
        paid by the Secretary under this subsection on any loan made on 
        or after January 1, 1996. Interest on the unpaid principal 
        amount of any such loan during the interval described in the 
        preceding sentence shall, at the option of the borrower--
                    ``(i) be paid monthly or quarterly, or
                    ``(ii) be added by the lender to the principal 
                amount of the loan at the commencement of the repayment 
                period.''.

SEC. 4004. PLUS PROGRAM REDUCTIONS.

    (a) Loan Limits.--Section 428B(b) of the Higher Education Act of 
1965 (20 U.S.C. 1078-2(b)) is amended--
            (1) by striking ``(b) Limitation Based on Need.--'' and 
        inserting the following:
    ``(b) Annual Limits.--
            ``(1) Limitation based on need.--'';
            (2) by inserting before the last sentence thereof the 
        following:
            ``(3) Limitation computed on basis of actual payments.--''; 
        and
            (3) by inserting before paragraph (3) (as designated by the 
        amendment made by paragraph (2) of this subsection) the 
        following new paragraph:
            ``(2) Dollar limitation.--Subject to paragraph (1), the 
        maximum amount parents may borrow for one student in any 
        academic year or its equivalent (as defined by regulations of 
        the Secretary) is $15,000.''.
    (b) Interest Rebate.--Section 428B of such Act is further amended 
by adding at the end the following new subsection:
    ``(f) Interest Rebate.--
            ``(1) Rebate required.--Each holder of a loan under this 
        section made on or after the date of enactment of this 
        subsection, shall pay, on June 30 and December 31 of each year, 
        to the Secretary a rebate of subsidies in an amount equal to 
        0.8 percent of the outstanding principal balance of loans held 
        on such date. Payment of such rebate shall be made not later 
        than 60 days after each such date.
            ``(2) Deposit of rebates.--The Secretary shall deposit all 
        fees collected pursuant to paragraph (1) into the insurance 
        fund established in section 431.''.
    (c) Plus Loans Interest Rates.--Section 427A(c)(4) of such Act (20 
U.S.C. 1077a(c)(4)) is amended by adding at the end the following new 
subparagraph:
            ``(F) Notwithstanding subparagraphs (A), (D), and (E), for 
        any loan made pursuant to section 428B for which the first 
        disbursement is made on or after January 1, 1996--
                    ``(i) subparagraph (B) shall be applied by 
                substituting `4.0' for `3.25'; and
                    ``(ii) the interest rate shall not exceed 11 
                percent.''.
    (d) Conforming Amendment.--Section 427A(h) of such Act (20 U.S.C. 
1077a(h)) is amended--
            (1) by striking paragraph (2); and
            (2) by redesignating paragraph (3) as paragraph (2).

SEC. 4005. LOAN TRANSFER FEE.

    Section 428(b)(2) of the Higher Education Act of 1965 (20 U.S.C. 
1078(b)(2)) is amended--
            (1) by striking ``and'' at the end of subparagraph (E);
            (2) by striking the period at the end of subparagraph (F) 
        and inserting ``; and''; and
            (3) by adding at the end thereof the following new 
        subparagraph:
                    ``(G) provide that, if a lender or holder, on or 
                after January 1, 1996, sells, transfers, or assigns a 
                loan under this part, then the transferee shall pay to 
                the Secretary a transfer fee in an amount equal to 0.20 
                percent of the principal of the loan, which transfer 
                fee shall be deposited into the insurance fund 
                established in section 431, except that the provisions 
                of this subparagraph shall not apply to any such sale, 
                transfer, or assignment by a lender or holder to such 
                lender's or holder's affiliate or pursuant to a merger 
                or other consolidation transaction.''.

SEC. 4006. LENDER FEES TO GUARANTY AGENCIES.

    Subsection (f) of section 428 of the Higher Education Act of 1965 
(20 U.S.C. 1078(f)) is amended to read as follows:
    ``(f) Payments of Certain Costs.--
            ``(1) Payments from lenders.--With respect to any loan 
        under this part for which the first disbursement is made on or 
        after January 1, 1996, the originating lender shall remit to 
        the guaranty agency which guarantees the loan, a fee equal to 
        0.70 percent of the principal amount of the loan.
            ``(2) Use of payments.--Payments made pursuant to paragraph 
        (1) shall be used for the purposes of--
                    ``(A) the administrative costs of collections of 
                loans;
                    ``(B) the administrative costs of preclaim 
                assistance and other predefault activities;
                    ``(C) the administrative costs of monitoring the 
                enrollment and repayment status of students; and
                    ``(D) other such costs related to the student loan 
                insurance program.
            ``(3) Timing of payments.--Payments made pursuant to 
        paragraph (1) shall be made at the time insurance premiums on 
        such loans are paid to the guaranty agency.
            ``(4) Prohibition on pass-through.--No part of any payments 
        required by this section shall be assessed or collected, 
        directly or indirectly, from any borrower under this part.''.

SEC. 4007. ADDITIONAL LOAN PROGRAM CHANGES.

    (a) Reserve Funds.--
            (1) Amendments to section 422.--Section 422 of the Higher 
        Education Act of 1965 (20 U.S.C. 1072) is amended--
                    (A) in the last sentence of subsection (a)(2), by 
                striking ``Except as provided in section 428(c)(10)(E) 
                or (F), such unencumbered'' and inserting ``Such'';
                    (B) in subsection (g)(1), by striking ``or the 
                program authorized by part D of this title'' each place 
                it appears;
                    (C) in subsection (g)(1)(D), by striking ``(A) or 
                (B)'' and inserting ``(A), (B), or (C)''; and
                    (D) in subsection (g), by striking paragraph (4) 
                and inserting the following:
            ``(4) Disposition of funds returned to or recovered by the 
        secretary.--Any funds that are returned to or otherwise 
        recovered by the Secretary pursuant to this subsection shall be 
        returned to the Treasury of the United States for purposes of 
        reducing the Federal debt and shall be deposited into the 
        special account under section 3113(d) of title 31, United 
        States Code.''.
            (2) Amendments to section 428.--Section 428(c)(9)(A) of 
        such Act (20 U.S.C. 1078(c)(9)(A)) is amended--
                    (A) by inserting ``and'' after the semicolon at the 
                end of clause (i);
                    (B) by striking ``; and'' at the end of clause (ii) 
                and inserting a period; and
                    (C) by striking clause (iii).
    (b) Application for Part B Loans Using Free Federal Application.--
            (1) Single form required.--Section 483(a) of such Act (20 
        U.S.C. 1090(a)) is amended--
                    (A) in paragraph (1)--
                            (i) by inserting ``B,'' after ``assistance 
                        under parts A,'';
                            (ii) by striking ``and to determine the 
                        need of a student for the purpose of part B of 
                        this title''; and
                            (iii) by striking the last sentence and 
                        inserting the following: ``Such form may be in 
                        an electronic or any other format (subject to 
                        section 485B) in order to facilitate use by 
                        borrowers and institutions.''; and
                    (B) in paragraph (3), by striking ``and States 
                shall receive,'' and inserting ``, any guaranty agency 
                authorized by any such institution, and States shall 
                receive, at their request and''.
            (2) Use of electronic forms.--Section 483(a) of such Act is 
        further amended by adding the following new paragraph after 
        paragraph (4):
            ``(5) Electronic forms.--(A) The Secretary, in cooperation 
        with representatives of institutions of higher education, 
        eligible lenders, and guaranty agencies, shall prescribe an 
        electronic version of the form described in subsection (a)(1). 
        Such electronic form shall not require signatures to be 
        collected at the time such form is submitted if the data 
        contained in the electronic form is certified in one or more 
        separate writings. The Secretary shall prescribe the initial 
        electronic form not later than 90 days after the date of 
        enactment of this paragraph.
            ``(B) Nothing in this Act shall preclude the use of the 
        electronic form prescribed under subparagraph (A) through 
        software developed, produced, distributed (including by 
        diskette, modem or network communication, or otherwise) or 
        collected by eligible lenders, guaranty agencies, eligible 
        institutions, or consortia thereof. Such organization or 
        consortium shall submit such electronic form to the Secretary 
        for review prior to its use. If such electronic form is 
        inconsistent with the provisions of this part, the Secretary 
        shall notify the submitting organization or consortium of his 
        objection within 30 days of such submission, and shall 
        specifically identify the necessary changes. In the absence of 
        such an objection the organization or consortium may use the 
        electronic form as submitted. No fee may be charged in 
        connection with use of the electronic form, or of any other 
        electronic forms used in conjunction with such form in applying 
        for Federal or State student financial assistance.''.
    (c) Amendments to Eligible Lender Definition.--Section 435(d)(1) of 
such Act (20 U.S.C. 1085) is amended--
            (1) by inserting before the semicolon at the end of 
        subparagraph (A) the following: ``; and in determining whether 
        the making or holding of loans to students and parents under 
        this part is the primary consumer credit function of the 
        eligible lender, loans made or held as trustee or in a trust 
        capacity for the benefit of a third party shall not be 
        considered'';
            (2) by striking ``and'' at the end of subparagraph (I);
            (3) in subparagraph (J), by striking the period and 
        inserting ``; and''; and
            (4) by adding at the end the following new subparagraph:
                    ``(K) a wholly owned subsidiary of a publicly-held 
                holding company which, as of the date of enactment of 
                this subparagraph, through one or more subsidiaries (i) 
                acts as a finance company, and (ii) participates in the 
                program authorized by this part pursuant to 
                subparagraph (C).''.
    (d) Additional Amendments to Section 428.--
            (1) Amendments.--Section 428 of such Act is further 
        amended--
                    (A) in subsection (b)(1)(G), by striking ``98 
                percent'' and inserting ``95 percent'';
                    (B) in subsection (b)(1)(X), by striking ``section 
                428(c)(10)'' and inserting ``section 428(c)(9)'';
                    (C) in subsection (c)(1)(A), by striking ``98 
                percent'' and inserting ``96 percent'';
                    (D) in subsection (c)(1)(B)(i), by striking ``88 
                percent'' and inserting ``86 percent'';
                    (E) in subsection (c)(1)(B)(ii), by striking ``78 
                percent'' and inserting ``76 percent'';
                    (F) in subsection (c)(9)(C)(ii), by striking ``80 
                percent'' and inserting ``76 percent'';
                    (G) in subsection (c)(9)(I) by inserting ``on the 
                record'' after ``for a hearing'';
                    (H) in subsection (j)(2)(A), by striking ``60'' and 
                inserting ``15'';
                    (I) in subsection (j)(2)(B), by striking ``two 
                rejections'' and inserting ``one rejection''; and
                    (J) in subsection (l)--
                            (i) by striking paragraph (2); and
                            (ii) by striking ``(1) Assistance 
                        required.--''.
            (2) Effective date.--The amendments made by paragraph (1) 
        of this subsection shall apply to loans on which the first 
        disbursement of principal is made on or after January 1, 1996.
    (e) Reinsurance Percentage Under Section 428I.--Section 428I of 
such Act (20 U.S.C. 1078-9) is amended in subsection (b)(1)--
            (1) by striking ``100 percent'' in the heading and 
        inserting ``95 percent''; and
            (2) by striking ``100 percent'' and inserting ``95 
        percent''.
    (f) Loan Fees From Lenders.--Section 438(d)(2) of such Act (20 
U.S.C. 1087-1(d)(2)) is amended to read as follows:
            ``(2) Amount of loan fees.--The amount of the loan fee 
        which shall be deducted under paragraph (1) shall be--
                    ``(A) 0.50 percent of the principal amount of the 
                loan, for any loan under this part for which the first 
                disbursement was made on or after October 1, 1993, and 
                before January 1, 1996; or
                    ``(B) 0.30 percent of the principal amount of the 
                loan, for any loan under this part for which the first 
                disbursement was made on or after January 1, 1996.''.
    (g) Small Lender Audit Exemption.--Section 428(b)(1)(U)(iii) of 
such Act (20 U.S.C. 1078(b)(1)(U)(iii)) is amended--
            (1) by inserting ``in the case of any lender that 
        originates or holds more than $5,000,000 in principal on loans 
        made under this title in any fiscal year,'' before ``for (I)'';
            (2) by inserting ``such'' before ``lender at least once'';
            (3) by inserting ``such'' before ``a lender that is 
        audited''; and
            (4) by striking ``if the lender'' and inserting ``if such 
        lender''.

SEC. 4008. USE OF RESERVE FUNDS TO PURCHASE DEFAULTED LOANS.

    Section 422 of the Higher Education Act of 1965 (20 U.S.C. 1072) is 
amended by adding at the end the following new subsection:
    ``(h) Use of Reserve Funds to Purchase Defaulted Loans.--
            ``(1) In general.--Except as provided in paragraph (2), a 
        guaranty agency shall use not less than 50 percent of such 
        agency's reserve funds to purchase and hold defaulted loans 
        that are guaranteed by such agency and for which a claim for 
        insurance is filed with such agency by an eligible lender after 
        the date of enactment of this subsection. The amount of such 
        purchases shall be considered as reserve funds under this 
        section and used in the calculation of the minimum reserve 
        level under section 428(c)(9).
            ``(2) Special rule.--A guaranty agency shall not be 
        required to use its reserve funds to purchase and hold 
        defaulted loans in accordance with paragraph (1) to the extent 
        that--
                    ``(A) the dollar volume of insurance claims filed 
                with such agency does not amount to 50 percent of such 
                agency's available reserve funds; or
                    ``(B) such use is prohibited by State law; or
                    ``(C) such use will compromise the ability of the 
                guaranty agency to pay program expenses.''.

SEC. 4009. EXTENSION OF PERIOD A GUARANTY AGENCY MUST HOLD A DEFAULTED 
                    LOAN.

    (a) Exemption for Extended Holding Period.--The last sentence of 
section 428(c)(1)(A) of the Higher Education Act of 1965 (20 U.S.C. 
1078(c)(1)(A)) is amended by striking out ``A guaranty agency'' and 
inserting ``Except as provided in section 428K, a guaranty agency''.
    (b) New Extended Holding Period Program.--Part B of title IV of 
such Act (20 U.S.C. 1071 et seq.) is amended by inserting after section 
428J the following new section:

``SEC. 428K. GUARANTOR PURCHASE OF CLAIMS WITH RESERVE FUNDS.

    ``(a) Loans Subject to Extended Holding Period.--Except as provided 
in subsection (b), a guaranty agency shall file a claim for 
reimbursement with respect to losses (resulting from the default of a 
student borrower) subject to reimbursement by the Secretary pursuant to 
section 428(c)(1) not less than 180 days nor more than 225 days after 
the guaranty agency discharges such agency's insurance obligation on a 
loan insured under this part. Such claim shall include losses on the 
unpaid principal and accrued interest of any such loan, including 
interest accrued from the date of such discharge to the date such 
agency files the claim for reimbursement from the Secretary.
    ``(b) Loans Excluded From Extended Holding.--A guaranty agency may 
file a claim with respect to losses subject to reimbursement by the 
Secretary pursuant to section 428(c)(1) prior to 180 days after the 
date the guaranty agency discharges such agency's insurance obligation 
on a loan insured under this part, if--
            ``(1) such agency used 50 percent or more of such agency's 
        reserve funds to purchase or hold loans in accordance with 
        section 422(h);
            ``(2) such claim is based on an inability to locate the 
        borrower and the guaranty agency certifies to the Secretary 
        that--
                    ``(A) diligent attempts were made to locate the 
                borrower through the use of reasonable skip-tracing 
                techniques in accordance with section 428(c)(2)(G); and
                    ``(B) such skip-tracing attempts to locate the 
                borrower were unsuccessful; or
            ``(3) the guaranty agency determines that the borrower is 
        unlikely to possess the financial resources to begin repaying 
        the loan prior to 180 days after default by the borrower.
    ``(c) Guaranty Agency Efforts During Extended Holding Period.--A 
guaranty agency shall attempt to bring a loan described in subsection 
(a) into repayment status prior to 180 days after the date the guaranty 
agency discharges its insurance obligation on the loan, so that no 
claim for reimbursement by the Secretary is necessary. Upon securing 
payment satisfactory to the guaranty agency during the 180-day period, 
such agency shall, if practicable, sell such loan to an eligible 
lender. Such loan shall not be sold to an eligible lender that the 
guaranty agency determines has substantially failed to exercise the due 
diligence required of lenders under this part.
    ``(d) Regulation Prohibited.--The Secretary shall not regulate the 
collection activities of a guaranty agency with respect to a loan 
described in subsection (a) for which reinsurance has not been paid 
under section 428(c)(1).''.

SEC. 4010. PRIVATIZATION OF COLLEGE CONSTRUCTION LOAN INSURANCE 
                    ASSOCIATION.

    (a) Repeal of Statutory Restrictions.--Part D of title VII of the 
Higher Education Act of 1965 (20 U.S.C. 1132f et seq.) is repealed.
    (b) Status of the Corporation.--
            (1) Status of the corporation.--The Corporation shall not 
        be an agency, instrumentality, or establishment of the United 
        States Government and shall not be a ``Government corporation'' 
        nor a ``Government controlled corporation'' as defined in 
        section 103 of title 5, United States Code. No action under 
        section 1491 of title 28, United States Code (commonly known as 
        the Tucker Act) shall be allowable against the United States 
        based on the actions of the Corporation.
            (2) Corporate powers.--The Corporation shall have the power 
        to engage in any business or other activities for which 
        corporations may be organized under the laws of any State of 
        the United States or the District of Columbia. The Corporation 
        shall have the power to enter into contracts, to execute 
        instruments, to incur liabilities, to provide products and 
        services, and to do all things as are necessary or incidental 
        to the proper management of its affairs and the efficient 
        operation of a private, for-profit business.
            (3) Limitation on ownership of stock.--Except as provided 
        in subsection (d)(2) of this section, no stock of the 
        Corporation may be sold or issued to an agency, 
        instrumentality, or establishment of the United States 
        Government, to a Government corporation or a Government 
        controlled corporation (as such terms are defined in section 
        103 of title 5, United States Code), or to a Government 
        sponsored enterprise (as such term is defined in section 622 of 
        title 2, United States Code). The Student Loan Marketing 
        Association shall not own any stock of the Corporation, except 
        that it may retain the stock it owns on the date of enactment. 
        The Student Loan Marketing Association shall not control the 
        operation of the Corporation, except that the Student Loan 
        Marketing Association may participate in the election of 
        directors as a shareholder, and may continue to exercise its 
        right to appoint directors under section 754 of the Higher 
        Education Act of 1965 as long as that section is in effect. The 
        Student Loan Marketing Association shall not provide financial 
        support or guarantees to the Corporation. Notwithstanding the 
        prohibitions in this subsection, the United States may pursue 
        any remedy against a holder of the Corporation's stock to which 
        it would otherwise be entitled.
    (c) Related Privatization Requirements.--
            (1) Notice requirements.--During the 5-year period 
        following the date of the enactment of this Act, the 
        Corporation shall include in any document offering the 
        Corporation's securities, in any contracts for insurance, 
        guarantee, or reinsurance of obligations, and in any 
        advertisement or promotional material, a statement that--
                    (A) the Corporation is not a Government-sponsored 
                enterprise or instrumentality of the United States; and
                    (B) the Corporation's obligations are not 
                guaranteed by the full faith and credit of the United 
                States.
            (2) Corporate charter.--The Corporation's charter shall be 
        amended as necessary and without delay to conform the 
        requirements of this Act.
            (3) Corporate name.--The name of the Corporation, or of any 
        direct or indirect subsidiary thereof, may not contain the term 
        ``College Construction Loan Insurance Association''.
            (4) Articles of incorporation.--The Corporation shall amend 
        its articles of incorporation without delay to reflect that one 
        of the purposes of the Corporation shall be to guarantee, 
        insure and reinsure bonds, leases, and other evidences of debt 
        of educational institutions, including Historically Black 
        Colleges and Universities and other academic institutions which 
        are ranked in the lower investment grade category using a 
        nationally recognized credit rating system.
            (5) Transition requirements.--
                    (A) Requirements until stock sale.--Notwithstanding 
                subsection (a), the requirements of section 754 of the 
                Higher Education Act of 1965 (20 U.S.C. 1132f-3), as in 
                existence as of the day before enactment of this Act, 
                shall continue to be effective until the day 
                immediately following the date of closing of the 
                purchase of the Secretary's stock (or the date of 
                closing of the final purchase, in the case of multiple 
                transactions) pursuant to subsection (d) of this 
                section.
                    (B) Reports after stock sale.--The Corporation 
                shall, not later than March 30 of the first full 
                calendar year immediately following the sale pursuant 
                to subsection (d), and each of the 2 succeeding years, 
                submit to the Secretary of Education a report 
                describing the Corporation's efforts to assist in the 
                financing of education facilities projects, including 
                projects for elementary, secondary, and postsecondary 
                educational institution infrastructure, and detailing, 
                on a project-by-project basis, the Corporation's 
                business dealings with educational institutions that 
                are rated by a nationally recognized statistical rating 
                organization at or below the organization's third 
                highest ratings.
    (d) Sale of Federally Owned Stock.--
            (1) Sale of stock required.--The Secretary of the Treasury 
        shall make every effort to sell, pursuant to section 324 of 
        title 31, United States Code, the stock of the Corporation 
        owned by the Secretary of Education not later than 6 months 
        after the date of the enactment of this Act.
            (2) Purchase by the corporation.--In the event that the 
        Secretary of the Treasury is unable to sell the stock, or any 
        portion thereof, at a price acceptable to the Secretary of 
        Education and the Secretary of the Treasury, the Corporation 
        shall purchase, within the period specified in paragraph (1), 
        such stock at a price determined by the Secretary of the 
        Treasury and acceptable to the Corporation based on independent 
        appraisal by one or more nationally recognized financial firms, 
        except that such price shall not exceed the value of the 
        Secretary's stock as determined by the Congressional Budget 
        Office in House Report 104-153, dated June 22, 1995. Such firms 
        shall be selected by the Secretary of the Treasury in 
        consultation with the Secretary of Education and the 
        Corporation.
    (e) Assistance by the Corporation.--The Corporation shall provide 
such assistance as the Secretary of the Treasury and the Secretary of 
Education may require to facilitate the sale of the stock under this 
section.
    (f) Definition.--As used in this section, the term ``Corporation'' 
means the Corporation established pursuant to the provision of law 
repealed by subsection (a).

SEC. 4011. ELIGIBLE INSTITUTION.

    (a) Amendments.--Section 481(b) of the Higher Education Act of 1965 
(20 U.S.C. 1088(b)) is amended--
            (1) by inserting before the period at the end of the first 
        sentence the following: ``on the basis of a review by the 
        institution's independent auditor using generally accepted 
        accounting principles''; and
            (2) by inserting after the end of such first sentence the 
        following new sentences: ``For the purposes of clause (6), 
        revenues from sources that are not derived from funds provided 
        under this title include revenues from programs of education or 
        training that do not meet the definition of an eligible program 
        in subsection (e), but are provided on a contractual basis 
        under Federal, State, or local training programs, or to 
        business and industry. For the purposes of determining whether 
        an institution meets the requirements of clause (6), the 
        Secretary shall not consider the financial information of any 
        institution for a fiscal year began on or before April 30, 
        1994.''.
    (b) Effective Date.--Notwithstanding section 713 of this Act, the 
amendments made by subsection (a) shall apply to any determination made 
on or after July 1, 1994, by the Secretary of Education pursuant to 
section 481(b)(6) of the Higher Education Act of 1965.

SEC. 4012. EXTENSION OF PROGRAM DURATION.

    Part B of title IV of the Higher Education Act of 1965 is amended--
            (1) in section 424(a) (20 U.S.C. 1074(a)), by striking 
        ``1998'' and inserting ``2002'';
            (2) in section 428(a)(5) (20 U.S.C. 1078(a)(5))--
                    (A) by striking ``2002'' and inserting ``2006''; 
                and
                    (B) by striking ``1998'' and inserting ``2002''; 
                and
            (3) in section 428C(e) (20 U.S.C. 1078-3(e)), by striking 
        the first sentence and inserting ``The authority to make loans 
        under this section expires at the close of September 30, 
        2002.''.

          Subtitle B--Davis-Bacon and Service Contract Repeals

SEC. 4101. DAVIS-BACON ACT.

    (a) Repeal.--The Act of March 3, 1931 (40 U.S.C. 276a et seq.) 
(commonly referred to as the Davis-Bacon Act) is repealed.
    (b) References.--Any reference in any law to a wage requirement of 
the Act of March 3, 1931, shall, 45 days after the date of the 
enactment of this Act, be null and void.
    (c) Effective Date.--The amendment made by subsection (a) shall 
take effect 45 days after the date of the enactment of this Act but 
shall not affect any contract in existence on the expiration of such 
days or made pursuant to an invitation for bids outstanding on the 
expiration of such days.

SEC. 4102. SERVICE CONTRACT ACT OF 1965.

    (a) Repeal.--The Service Contract Act of 1965 (41 U.S.C. 351 et 
seq.) is repealed.
    (b) Application.--The amendment made by subsection (a) shall not 
apply to a contract which was entered into before the 45th day after 
the date of the enactment of this Act and to which the Service Contract 
Act of 1965 applied.

   Subtitle C--Provisions Relating to the Employee Retirement Income 
                          Security Act of 1974

SEC. 4201. WAIVER OF MINIMUM PERIOD FOR JOINT AND SURVIVOR ANNUITY 
                    EXPLANATION BEFORE ANNUITY STARTING DATE.

    (a) General Rule.--For purposes of section 205(c)(3)(A) of the 
Employee Retirement Income Security Act of 1974 (29 U.S.C. 
1055(c)(3)(A)), the minimum period prescribed by the Secretary of the 
Treasury between the date that the explanation referred to in such 
section is provided and the annuity starting date shall not apply if 
waived by the participant and, if applicable, the participant's spouse.
    (b) Effective Date.--Subsection (a) shall apply to plan years 
beginning after December 31, 1995.

         TITLE V--COMMITTEE ON GOVERNMENT REFORM AND OVERSIGHT

                         [Text to be inserted]

             TITLE VI--COMMITTEE ON INTERNATIONAL RELATIONS

SEC. 6001. RECOVERY OF COSTS OF HEALTH CARE SERVICES FOR PERSONNEL OF 
                    THE FOREIGN SERVICE OF THE UNITED STATES AND OTHER 
                    ELIGIBLE INDIVIDUALS.

    (a) Authorities.--Section 904 of the Foreign Service Act of 1980 
(22 U.S.C. 4084) is amended--
            (1) in subsection (a) by--
                    (A) striking ``and'' before ``members of the 
                families of such members and employees''; and
                    (B) by inserting immediately before the period ``, 
                and for care provided abroad) such other persons as are 
                designated by the Secretary of State, except that such 
                persons shall be considered persons other than covered 
                beneficiaries for purposes of subsections (g) and 
                (h)'';
            (2) in subsection (d) by inserting ``, subject to the 
        provisions of subsections (g) and (h)'' after ``treatment''; 
        and
            (3) by adding the following new subsections:
    ``(g)(1) In the case of a person who is a covered beneficiary, the 
Secretary of State is authorized to collect from a third-party payer 
the reasonable costs incurred by the Department of State on behalf of 
such person for health care services to the same extent that the 
covered beneficiary would be eligible to receive reimbursement or 
indemnification from the third-party payer for such costs.
    ``(2) If the insurance policy, plan, contract, or similar agreement 
of that third-party payer includes a requirement for a deductible or 
copayment by the beneficiary of the plan, then the Secretary of State 
may collect from the third-party payer only the reasonable costs of the 
care provided less the deductible or copayment amount.
    ``(3) A covered beneficiary shall not be required to pay any 
deductible or copayment for health care services under this subsection.
    ``(4) No provision of any insurance, medical service, or health 
plan contract or agreement having the effect of excluding from coverage 
or limiting payment of charges for care in the following circumstances 
shall operate to prevent collection by the Secretary of State under 
paragraph (1)--
            ``(A) care provided directly or indirectly by a 
        governmental entity;
            ``(B) care provided to an individual who has not paid a 
        required deductible or copayment; or
            ``(C) care provided by a provider with which the third-
        party payer has no participation agreement.
    ``(5) No law of any State, or of any political subdivision of a 
State, and no provision of any contract or agreement shall operate to 
prevent or hinder recovery or collection by the United States under 
this section.
    ``(6) As to the authority provided in paragraph (1) of this 
subsection--
            ``(A) the United States shall be subrogated to any right or 
        claim that the covered beneficiary may have against a third-
        party payer;
            ``(B) the United States may institute and prosecute legal 
        proceedings against a third-party payer to enforce a right of 
        the United States under this subsection; and
            ``(C) the Secretary may compromise, settle, or waive a 
        claim of the United States under this subsection.
    ``(7) The Secretary shall prescribe regulations for the 
administration of this subsection and subsection (h). Such regulations 
shall provide for computation of the reasonable cost of health care 
services.
    ``(8) Regulations prescribed under this subsection shall provide 
that medical records of a covered beneficiary receiving health care 
under this subsection shall be made available for inspection and review 
by representatives of the payer from which collection by the United 
States is sought for the sole purpose of permitting the third party to 
verify--
            ``(A) that the care or services for which recovery or 
        collection is sought were furnished to the covered beneficiary; 
        and
            ``(B) that the provisions of such care or services to the 
        covered beneficiary meets criteria generally applicable under 
        the health plan contract involved, except that this paragraph 
        shall be subject to the provisions of paragraphs (2) and (4).
    ``(9) Amounts collected under this subsection or under subsection 
(h) from a third party payer or from any other payer shall be deposited 
in the Treasury as a miscellaneous offsetting receipt.
    ``(10) For purposes of this section--
            ``(A) the term `covered beneficiary' means an individual 
        eligible to receive health care under this section whose health 
        care costs are to be paid by a third-party payer under a 
        contractual agreement with such payer;
            ``(B) the term `services', as used in `health care 
        services' includes products; and
            ``(C) the term `third-party payer' means an entity that 
        provides a fee-for-service insurance policy, contract, or 
        similar agreement through the Federal Employees Health Benefit 
        program, under which the expenses of health care services for 
        individuals are paid.
    ``(h) In the case of a person, other than a covered beneficiary, 
who receives health care services pursuant to this section, the 
Secretary of State is authorized to collect from such person the 
reasonable costs of health care services incurred by the Department of 
State on behalf of such person. The United States shall have the same 
rights against persons subject to the provisions of this subsection as 
against third-party payers covered by subsection (g).''.
    (b) Effective Date.--The authorities of this section shall be 
effective beginning on the date of the enactment of this Act.

SEC. 6002. ENACTMENT INTO LAW OF DIVISION A OF H.R. 1561.

    Division A of H.R. 1561, as passed the House of Representatives on 
June 8, 1995 (relating to consolidation of foreign affairs agencies), 
is hereby enacted into law.

                 TITLE VII--COMMITTEE ON THE JUDICIARY

SEC. 7001. PATENT AND TRADEMARK FEES.

    Section 10101 of the Omnibus Budget Reconciliation Act of 1990 (35 
U.S.C. 41 note) is amended--
            (1) in subsection (a) by striking ``1998'' and inserting 
        ``2002'';
            (2) in subsection (b)(2) by striking ``1998'' and inserting 
        ``2002''; and
            (3) in subsection (c)--
                    (A) by striking ``through 1998'' and inserting 
                ``through 2002''; and
                    (B) by adding at the end the following:
            ``(9) $119,000,000 in fiscal year 1999.
            ``(10) $119,000,000 in fiscal year 2000.
            ``(11) $119,000,000 in fiscal year 2001.
            ``(12) $119,000,000 in fiscal year 2002.''.

               TITLE VIII--COMMITTEE ON NATIONAL SECURITY

                    Subtitle A--Military Retired Pay

SEC. 8001. ELIMINATION OF DISPARITY BETWEEN EFFECTIVE DATES FOR 
                    MILITARY AND CIVILIAN RETIREE COST-OF-LIVING 
                    ADJUSTMENTS FOR FISCAL YEARS 1996, 1997, AND 1998.

    (a) Conformance With Schedule for Civil Service COLAs.--
Subparagraph (B) of section 1401a(b)(2) of title 10, United States 
Code, is amended--
            (1) by striking out ``through 1998'' the first place it 
        appears and all that follows through ``In the case of'' the 
        second place it appears and inserting in lieu thereof ``through 
        1996.--In the case of'';
            (2) by striking ``of 1994, 1995, 1996, or 1997'' and 
        inserting in lieu thereof ``of 1993, 1994, or 1995''; and
            (3) by striking out ``September'' and inserting in lieu 
        thereof ``March''.
    (b) Repeal of Prior Conditional Enactment.--Section 8114A(b) of 
Public Law 103-335 (108 Stat. 2648) is repealed.

                  Subtitle B--Naval Petroleum Reserves

SEC. 8011. SALE OF NAVAL PETROLEUM RESERVES.

    (a) Sale of Reserves Required.--Chapter 641 of title 10, United 
States Code, is amended by inserting after section 7421 the following 
new section:

``Sec. 7421a. Sale of naval petroleum reserves

    ``(a) Sale Required.--(1) Notwithstanding any other provision of 
this chapter, the Secretary shall sell all right, title, and interest 
of the United States in and to the lands owned or controlled by the 
United States inside the naval petroleum and oil shale reserves 
established by this chapter. In the case of Naval Petroleum Reserve 
Numbered 1, the lands to be sold shall include sections 16 and 36 of 
township 30 south, range 23 east, Mount Diablo Principal Meridian, 
California.
    ``(2) Not later than September 30, 1996, the Secretary shall enter 
into one or more contracts for the sale of all of the interest of the 
United States in the naval petroleum reserves.
    ``(b) Timing and Administration of Sale.--(1) Not later than 
January 1, 1996, the Secretary shall retain the services of five 
independent experts in the valuation of oil and gas fields to conduct 
separate assessments, in a manner consistent with commercial practices, 
of the fair market value of the interest of the United States in each 
naval petroleum reserve. In making their assessments for each naval 
petroleum reserve, the independent experts shall consider (among other 
factors) all equipment and facilities to be included in the sale, the 
net present value of the reserve, and the net present value of the 
anticipated revenue stream that the Secretary determines the Treasury 
would receive from the reserve if it were not sold, adjusted for any 
anticipated increases in tax revenues that would result if it were 
sold. The independent experts shall complete their assessments not 
later than June 1, 1996. In setting the minimum acceptable price for 
each naval petroleum reserve, the Secretary shall consider the average 
of the five assessments regarding the reserve or, if more advantageous 
to the Government, the average of three assessments after excluding the 
high and low assessments.
    ``(2) Not later than March 1, 1996, the Secretary shall retain the 
services of an investment banker to independently administer, in a 
manner consistent with commercial practices and in a manner that 
maximizes sale proceeds to the Government, the sale of the naval 
petroleum reserves under this section. The Secretary may enter into the 
contracts required under this paragraph and paragraph (1) on a 
noncompetitive basis.
    ``(3) Not later than June 1, 1996, the sales administrator selected 
under paragraph (2) shall complete a draft contract for the sale of 
each naval petroleum reserve, which shall accompany the invitation for 
bids and describe the terms and provisions of the sale of the interest 
of the United States in the reserve. Each draft contract shall identify 
all equipment and facilities to be included in the sales. Each draft 
contract, including the terms and provisions of the sale of the 
interest of the United States in the naval petroleum reserves, shall be 
subject to review and approval by the Secretary, the Secretary of the 
Treasury, and the Director of the Office of Management and Budget.
    ``(4) Not later than July 1, 1996, the Secretary shall publish an 
invitation for bids for the purchase of the naval petroleum reserves.
    ``(5) Not later than September 1, 1996, the Secretary shall accept 
the highest responsible offer for purchase of the interest of the 
United States in the naval petroleum reserves, or a particular reserve, 
that meets or exceeds the minimum acceptable price determined under 
paragraph (1). The Secretary may accept an offer for only a portion of 
a reserve so long as the entire reserve is still sold under this 
section at a price that meets or exceeds the minimum acceptable price.
    ``(c) Future Liabilities.--To effectuate the sale of the interest 
of the United States in a naval petroleum reserve, the Secretary may 
extend such indemnities and warranties as the Secretary considers 
reasonable and necessary to protect the purchaser from claims arising 
from the ownership in the reserve by the United States.
    ``(d) Special Rules Preparatory to Sale of Naval Petroleum Reserve 
Numbered 1.--(1) Not later than June 1, 1996, the Secretary shall 
finalize equity interests of the known oil and gas zones in Naval 
Petroleum Reserve Numbered 1 in the manner provided by this subsection.
    ``(2) The Secretary shall retain the services of an independent 
petroleum engineer, mutually acceptable to the equity owners, who shall 
prepare a recommendation on final equity figures. The Secretary may 
accept the recommendation of the independent petroleum engineer for 
final equity in each known oil and gas zone and establish final equity 
interest in the Naval Petroleum Reserve Numbered 1 in accordance with 
such recommendation, or the Secretary may use such other method to 
establish final equity interest in that reserve as the Secretary 
considers appropriate. The Secretary may enter into the contract 
required under this paragraph on a noncompetitive basis.
    ``(3) If, on the effective date of this section, there is an 
ongoing equity redetermination dispute between the equity owners under 
section 9(b) of the unit plan contract, such dispute shall be resolved 
in the manner provided in the unit plan contract not later than June 1, 
1996. Such resolution shall be considered final for all purposes under 
this section.
    ``(4) In this section, the term `unit plan contract' means the unit 
plan contract between equity owners of the lands within the boundaries 
of Naval Petroleum Reserve Numbered 1 (Elk Hills) entered into on June 
19, 1944.
    ``(e) Production Allocation Regarding Naval Petroleum Reserve 
Numbered 1.--(1) As part of the contract for purchase of Naval 
Petroleum Reserve Numbered 1, the purchaser of the interest of the 
United States in that reserve shall agree to make up to 25 percent of 
the purchaser's share of annual petroleum production from the purchased 
lands available for sale to small refiners, which do not have their own 
adequate sources of supply of petroleum, for processing or use only in 
their own refineries. None of the reserved production sold to small 
refiners may be resold in kind. The purchaser of that reserve may 
reduce the quantity of petroleum reserved under this subsection in the 
event of an insufficient number of qualified bids. The seller of this 
petroleum production has the right to refuse bids that are less than 
the prevailing market price of comparable oil.
    ``(2) The purchaser of Naval Petroleum Reserve Numbered 1 shall 
also agree to ensure that the terms of every sale of the purchaser's 
share of annual petroleum production from the purchased lands shall be 
so structured as to give full and equal opportunity for the acquisition 
of petroleum by all interested persons, including major and independent 
oil producers and refiners alike.
    ``(f) Maintaining Production Pending Sale of Naval Petroleum 
Reserve Numbered 1.--Until the sale of Naval Petroleum Reserve Numbered 
1 is completed under this section, the Secretary shall continue to 
produce that reserve at the maximum daily oil or gas rate from a 
reservoir, which will permit maximum economic development of the 
reservoir consistent with sound oil field engineering practices in 
accordance with section 3 of the unit plan contract. The definition of 
maximum efficient rate in section 7420(6) of this title shall not apply 
to Naval Petroleum Reserve Numbered 1.
    ``(g) Effect on Existing Contracts.--(1) In the case of any 
contract, in effect on the effective date of this section, for the 
purchase of production from any part of the United States' share of the 
naval petroleum reserves, the sale of the interest of the United States 
in the reserves shall be subject to the contract for a period of three 
months after the closing date of the sale or until termination of the 
contract, whichever occurs first. The term of any contract entered into 
after the effective date of this section for the purchase of such 
production shall not exceed the anticipated closing date for the sale 
of the reserve.
    ``(2) In the case of Naval Petroleum Reserve Numbered 1, the 
Secretary shall exercise the termination procedures provided in the 
contract between the United States and Bechtel Petroleum Operation, 
Inc., Contract Number DE-ACO1-85FE60520 so that the contract terminates 
not later than the date of closing of the sale of that reserve.
    ``(3) In the case of Naval Petroleum Reserve Numbered 1, the 
Secretary shall exercise the termination procedures provided in the 
unit plan contract so that the unit plan contract terminates not later 
than the date of closing of the sale of that reserve.
    ``(h) Offer of Settlement of State of California Claims Regarding 
Naval Petroleum Reserve Numbered 1.--(1) In connection with the sale of 
Naval Petroleum Reserve Numbered 1, the Secretary shall offer to settle 
all claims against the United States by the State of California and the 
Teachers' Retirement Fund of the State of California with respect to 
lands within that reserve, including sections 16 and 36 of township 30 
south, range 23 east, Mount Diablo Principal Meridian, California, or 
production or proceeds of sale from that reserve. Subject to paragraph 
(2), the Secretary shall offer in settlement of such claims--
            ``(A) a payment from funds provided for this purpose in 
        advance in appropriation Acts;
            ``(B) a grant of land pursuant to sections 2275 and 2276 of 
        the Revised Statutes of the United States (43 U.S.C. 851 and 
        852) so long as such land is not generating revenue for the 
        United States;
            ``(C) any other option that would not be inconsistent with 
        the Congressional Budget Act of 1974 (2 U.S.C. 621 et seq.); or
            ``(D) any combination of subparagraphs (A), (B), and (C).
    ``(2) The value of any payment, grant, or option (or combination 
thereof) offered as settlement under paragraph (1) may not exceed an 
amount equal to seven percent of the proceeds from the sale of Naval 
Petroleum Reserve Numbered 1, after deducting the costs incurred to 
conduct the sale of that reserve.
    ``(3) Acceptance of the settlement offered under paragraph (1) 
shall be subject to the condition that all claims against the United 
States by the State of California or the Teachers' Retirement Fund of 
the State of California are released with respect to lands within the 
Naval Petroleum Reserve Numbered 1, including sections 16 and 36 of 
township 30 south, range 23 east, Mount Diablo Principal Meridian, 
California, or production or proceeds of sale from that reserve. The 
Secretary may specify the manner in which the release of such claims 
shall be evidenced.
    ``(i) Effect on Antitrust Laws.--Nothing in this section shall be 
construed to alter the application of the antitrust laws of the United 
States to the purchaser of a naval petroleum reserve or to the lands in 
the naval petroleum reserves subject to sale under this section upon 
the completion of the sale.
    ``(j) Preservation of Private Right, Title, and Interest.--Nothing 
in this section shall be construed to adversely affect the ownership 
interest of any other entity having any right, title, and interest in 
and to lands within the boundaries of the naval petroleum reserves.
    ``(k) Congressional Notification.--Section 7431 of this title shall 
not apply to the sale of the naval petroleum reserves under this 
section. However, the Secretary may not enter into a contract for the 
sale of a naval petroleum reserve until the end of the 15-day period 
beginning on the date on which the Secretary notifies the Committee on 
Armed Services of the Senate and the Committee on National Security and 
the Committee on Commerce of the House of Representatives that the 
Secretary has accepted an offer under subsection (b)(5) for the sale of 
that reserve.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
7421 the following new item:

``7421a. Sale of naval petroleum reserves.''.

                 Subtitle C--National Defense Stockpile

SEC. 8021. DISPOSAL OF CERTAIN MATERIALS IN NATIONAL DEFENSE STOCKPILE 
                    FOR DEFICIT REDUCTION.

    (a) Disposals Required.--(1) During fiscal year 1996, the President 
shall dispose of all cobalt contained in the National Defense Stockpile 
that, as the date of the enactment of this Act, is authorized for 
disposal under any law (other than this Act).
    (2) In addition to the disposal of cobalt under paragraph (1), the 
President shall dispose of additional quantities of cobalt and 
quantities of aluminum, ferro columbium, germanium, palladium, 
platinum, and rubber contained in the National Defense Stockpile so as 
to result in receipts to the United States in amounts equal to--
            (A) $21,000,000 during the fiscal year ending September 30, 
        1996;
            (B) $338,000,000 during the five-fiscal year period ending 
        on September 30, 2000; and
            (C) $649,000,000 during the seven-fiscal year period ending 
        on September 30, 2002.
    (3) The President is not required to include the disposal of the 
materials identified in paragraph (2) in an annual materials plan for 
the National Defense Stockpile. Disposals made under this section may 
be made without consideration of the requirements of an annual 
materials plan.
    (b) Limitation on Disposal Quantity.--The total quantities of 
materials authorized for disposal by the President under subsection 
(a)(2) may not exceed the amounts set forth in the following table:


                     Authorized Stockpile Disposals                     
------------------------------------------------------------------------
   Material for disposal                              Quantity          
------------------------------------------------------------------------
Aluminum..................................  62,881 short tons           
Cobalt....................................  42,482,323 pounds contained 
Ferro Columbium...........................  930,911 pounds contained    
Germanium.................................  68,207 kilograms            
Palladium.................................  1,264,601 troy ounces       
Platinum..................................  452,641 troy ounces         
Rubber....................................  125,138 long tons           
------------------------------------------------------------------------

    (c) Deposit of Receipts.--Notwithstanding section 9 of the 
Strategic and Critical Materials Stock Piling Act (50 U.S.C. 98h), 
funds received as a result of the disposal of materials under 
subsection (a)(2) shall be deposited into the general fund of the 
Treasury for the purpose of deficit reduction.
    (d) Relationship to Other Disposal Authority.--The disposal 
authority provided in subsection (a)(2) is new disposal authority and 
is in addition to, and shall not affect, any other disposal authority 
provided by law regarding the materials specified in such subsection.
    (e) Termination of Disposal Authority.--The President may not use 
the disposal authority provided in subsection (a)(2) after the date on 
which the total amount of receipts specified in subparagraph (C) of 
such subsection is achieved.
    (f) Definition.--The term ``National Defense Stockpile'' means the 
National Defense Stockpile provided for in section 4 of the Strategic 
and Critical Materials Stock Piling Act (50 U.S.C. 98c).

                    TITLE IX--COMMITTEE ON RESOURCES

SEC. 9000. TABLE OF CONTENTS.

    The table of contents for this title is as follows:

                    TITLE IX--COMMITTEE ON RESOURCES

Sec. 9000. Table of contents.

              Subtitle A--Alaska and Helium Privatization

                             Part 1--Alaska

Sec. 9001. Exports of Alaskan North Slope oil.
Sec. 9002. Arctic Coastal Plain leasing and revenue.
Sec. 9003. Alaska Power Administration sale.

                      Part 2--Helium Privatization

Sec. 9011. Short title.
Sec. 9012. Amendment of Helium Act.
Sec. 9013. Authority of Secretary.
Sec. 9014. Sale of crude helium.
Sec. 9015. Elimination of stockpile.
Sec. 9016. Repeal of authority to borrow.
Sec. 9017. Reports.
Sec. 9018. Land conveyance in Potter County, Texas.

                      Subtitle B--Water and Power

                Part 1--Power Marketing Administrations

Sec. 9201. Short title.
Sec. 9202. Sale of the Southeastern Power Administration.
Sec. 9203. Federal Energy Regulatory Commission jurisdiction.
Sec. 9204. Evaluation of sales of Southwestern Power Administration and 
Western Area Power Administration facilities.
Sec. 9205. Bonneville Power Administration appropriations refinancing.

                          Part 2--Reclamation

Sec. 9211. Prepayment of certain repayment contracts between the United 
States and the Central Utah Water Conservancy District.
Sec. 9212. Treatment of city of Folsom as a Central Valley Project 
contractor.
Sec. 9213. Sly Park.
Sec. 9214. Hetch Hetchy Dam.

         Subtitle C--National Parks, Forests, and Public Lands

                       Part 1--Concession Reform

Sec. 9301. Short title.
Sec. 9302. Purpose.
Sec. 9303. Definitions.
Sec. 9304. Nature and types of concession authorizations.
Sec. 9305. Competitive selection process for concession service 
agreements.
Sec. 9306. Concessioner evaluations.
Sec. 9307. Capital improvements.
Sec. 9308. Duration of concession authorization.
Sec. 9309. Rates and charges to the public.
Sec. 9310. Transferability of concession authorizations.
Sec. 9311. Fees charged by the United States for concession 
authorizations.
Sec. 9312. Disposition of fees.
Sec. 9313. Dispute resolution.
Sec. 9314. Recordkeeping.
Sec. 9315. Application of general governmental acquisition 
requirements.
Sec. 9316. Rules of construction.
Sec. 9317. Regulations.
Sec. 9318. Relationship to other existing laws.

                   Part 2--National Forest Ski Areas

Sec. 9321. Privatization of Forest Service ski areas.
Sec. 9322. Ski area permit fees and withdrawal of ski areas from 
operation of mining laws.

                   Part 3--Domestic Livestock Grazing

Sec. 9331. Applicable regulations.
Sec. 9332. Fees and charges.
Sec. 9333. Animal unit month.
Sec. 9334. Term of grazing permits or grazing leases.
Sec. 9335. Conformance with land use plan.
Sec. 9336. Effective date.

     Part 4--Regional Disposal Facility of Southwestern Low Level 
                   Radioactive Waste Disposal Compact

Sec. 9341. Conveyance of property.
Sec. 9342. Conveyance of easements.

                        Subtitle D--Territories

          Part 1--Commonwealth of the Northern Mariana Islands

Sec. 9401. Termination of annual direct grant assistance.

            Part 2--Territorial Administrative Cessation Act

Sec. 9421. Short title.
Sec. 9422. Congressional findings.
Sec. 9423. Elimination of Office of Territorial and International 
Affairs.
Sec. 9424. Certain activities not funded.

                          Subtitle E--Minerals

                        Part 1--Hardrock Mining

Sec. 9501. Findings and purpose.
Sec. 9502. Patents under the general mining law.
Sec. 9503. Royalty under the general mining law.
Sec. 9504. Mineral materials.
Sec. 9505. Claim maintenance requirements.

                 Part 2--Federal Oil and Gas Royalties

Sec. 9511. Short title.
Sec. 9512. Definitions.
Sec. 9513. Limitation periods.
Sec. 9514. Adjustment and refunds.
Sec. 9515. Required recordkeeping.
Sec. 9516. Royalty interest, penalties, and payments.
Sec. 9517. Limitation on assessments.
Sec. 9518. Alternatives for marginal properties.
Sec. 9519. Royalty in kind.
Sec. 9520. Royalty simplification and cost-effective audit and 
collection requirements.
Sec. 9521. Repeals.
Sec. 9522. Delegation to States.
Sec. 9523. Performance standard.
Sec. 9524. Indian lands.
Sec. 9525. Private lands.
Sec. 9526. Effective date.

                  Subtitle F--Indian Gaming and Health

                         Part 1--Indian Gaming

Sec. 9601. Indian gaming.

                    Part 2--Indian Health: Medicaid

Sec. 9611. Health care facilities.
Sec. 9612. Provider reimbursement.
Sec. 9613. Study.

                    Part 3--Indian Health: Medicare

Sec. 9621. Health care facilities.
Sec. 9622. Provider reimbursement.

                        Subtitle G--Consultation

Sec. 9701. Consultation.

                          Subtitle H--Mapping

Sec. 9801. Short title.
Sec. 9802. Surveying and mapping contracting program.
Sec. 9803. Inventory of activities.
Sec. 9804. Plan to increase use of contracts.
Sec. 9805. Reports.
Sec. 9806. Definitions.

                Subtitle I--National Park System Reform

Sec. 9901. Short title.
Sec. 9902. Definitions.

                   Part 1--National Park System Plan

Sec. 9911. Preparation of National Park System plan.
Sec. 9912. Management review of National Park System.
Sec. 9913. National Park System Review Commission.
Sec. 9914. Subsequent Act of Congress required to modify or terminate a 
park.
Sec. 9915. Authorization of appropriations.
Sec. 9916. Commendation and protection of National Park rangers.

                     Part 2--New Area Establishment

Sec. 9921. Study of new Park System areas.

              Subtitle A--Alaska and Helium Privatization

                             PART 1--ALASKA

SEC. 9001. EXPORTS OF ALASKAN NORTH SLOPE OIL.

    (a) Amendment of Mineral Leasing Act.--Section 28(s) of the Mineral 
Leasing Act (30 U.S.C. 185(s)) is amended to read as follows:
                  ``exports of alaskan north slope oil
    ``(s)(1) Subject to paragraphs (2) through (6) of this subsection 
and notwithstanding any other provision of this Act or any other 
provision of law (including any regulation) applicable to the export of 
oil transported by pipeline over right-of-way granted pursuant to 
section 203 of the Trans-Alaska Pipeline Authorization Act (43 U.S.C. 
1652), such oil may be exported unless the President finds that 
exportation of this oil is not in the national interest. The President 
shall make his national interest determination within 5 months after 
the date of enactment of this subsection. In evaluating whether exports 
of this oil are in the national interest, the President shall at a 
minimum consider--
            ``(A) whether exports of this oil would diminish the total 
        quantity or quality of petroleum available to the United 
        States;
            ``(B) the results of an appropriate environmental review, 
        including consideration of appropriate measures to mitigate any 
        potential adverse effects of exports of this oil on the 
        environment, which shall be completed within four months of the 
        date of the enactment of this subsection; and
            ``(C) whether exports of this oil are likely to cause 
        sustained material oil supply shortages or sustained oil prices 
        significantly above world market levels that would cause 
        sustained material adverse employment effects in the United 
        States or that would cause substantial harm to consumers, 
        including in noncontiguous States and Pacific territories.
If the President determines that exports of this oil are in the 
national interest, he may impose such terms and conditions (other than 
a volume limitation) as are necessary or appropriate to ensure that 
such exports are consistent with the national interest.
    ``(2) Except in the case of oil exported to a country with which 
the United States entered into a bilateral international oil supply 
agreement before November 26, 1979, or to a country pursuant to the 
International Emergency Oil Sharing Plan of the International Energy 
Agency, any oil transported by pipeline over right-of-way granted 
pursuant to section 203 of the Trans-Alaska Pipeline Authorization Act 
(43 U.S.C. 1652) shall, when exported, be transported by a vessel 
documented under the laws of the United States and owned by a citizen 
of the United States (as determined in accordance with section 2 of the 
Shipping Act, 1916 (46 U.S.C. App. 802)).
    ``(3) Nothing in this subsection shall restrict the authority of 
the President under the Constitution, the International Emergency 
Economic Powers Act (50 U.S.C. 1701 et seq.), or the National 
Emergencies Act (50 U.S.C. 1601 et seq.) to prohibit exports of this 
oil or under Part B of title II of the Energy Policy and Conservation 
Act (42 U.S.C. 6271-76).
    ``(4) The Secretary of Commerce shall issue any rules necessary for 
implementation of the President's national interest determination, 
including any licensing requirements and conditions, within 30 days of 
the date of such determination by the President. The Secretary of 
Commerce shall consult with the Secretary of Energy in administering 
the provisions of this subsection.
    ``(5) If the Secretary of Commerce finds that exporting oil under 
authority of this subsection has caused sustained material oil supply 
shortages or sustained oil prices significantly above world market 
levels and further finds that these supply shortages or price increases 
have caused or are likely to cause sustained material adverse 
employment effects in the United States, the Secretary of Commerce, in 
consultation with the Secretary of Energy, shall recommend, and the 
President may take, appropriate action concerning exports of this oil, 
which may include modifying or revoking authority to export such oil.
    ``(6) Administrative action under this subsection is not subject to 
sections 551 and 553 through 559 of title 5, United States Code.''.
    (b) GAO Report.--
            (1) Review.--The Comptroller General of the United States 
        shall conduct a review of energy production in California and 
        Alaska and the effects of Alaskan North Slope oil exports, if 
        any, on consumers, independent refiners, and shipbuilding and 
        ship repair yards on the West Coast and in Hawaii. The 
        Comptroller General shall commence this review 2 years after 
        the date of enactment of this Act and, within 6 months after 
        commencing the review, shall provide a report to the Committee 
        on Resources and the Committee on Commerce of the House of 
        Representatives and the Committee on Energy and Natural 
        Resources of the Senate.
            (2) Contents of Report.--The report shall contain a 
        statement of the principal findings of the review and 
        recommendations for Congress and the President to address job 
        loss in the shipbuilding and ship repair industry on the West 
        Coast, as well as adverse impacts on consumers and refiners on 
        the West Coast and in Hawaii, that the Comptroller General 
        attributes to Alaska North Slope oil exports.

SEC. 9002. ARCTIC COASTAL PLAIN LEASING AND REVENUE.

    (a) Purpose.--It is the purpose of this section to reduce the 
Federal deficit by an estimated $1,300,000,000 over the next 5 years. 
This revenue will be derived from competitive bonus bids for oil and 
gas leases in the Coastal Plain area of Alaska's North Slope.
    (b) Definitions.--For the purposes of this section:
            (1) The term ``Secretary'' means the Secretary of the 
        Interior.
            (2) The term ``Coastal Plain'' means that portion of the 
        Arctic National Wildlife Refuge identified in section 
        1002(b)(1) of the Alaska National Interest Lands Conservation 
        Act of 1980 (Public Law 96-487; 16 U.S.C. 3142(b)(1)) 
        consisting of approximately 1,549,000 acres.
    (c) Compatibility.--Congress hereby determines that the oil and gas 
leasing program and activities authorized by this section in the 
Coastal Plain are compatible with the purposes for which the Arctic 
National Wildlife Refuge was established, and that no further findings 
or decisions are required to implement this determination.
    (d) Authorization.--(1) Congress hereby authorizes and directs the 
Secretary to establish and promptly implement a program to assure the 
expeditious competitive leasing exploration, development, production, 
and transportation of the oil and gas resources of the Coastal Plain. 
Regulations to implement this program and to govern oil and gas 
leasing, exploration, development and production shall be promulgated 
by the Secretary within 6 months of the date of enactment of this 
section.
    (2) The Coastal Plain leasing program required by paragraph (1) 
shall include the following:
            (A) The first lease sale of not less than 200,000 acres 
        shall be conducted within 12 months of the date of enactment of 
        this section.
            (B) The lease sales shall be based upon an industry 
        nomination process.
            (C) The Secretary is directed to grant to the highest 
        responsible qualified bidder or bidders by competitive bidding, 
        under regulations promulgated in advance, any oil and gas lease 
        on unleased Federal lands within the Coastal Plain. These 
        regulations may provide for the deposit of cash bids in an 
        interest-bearing account until the Secretary accepts the bids, 
        with interest earned paid to the General Treasury for bids that 
        are accepted, and to the unsuccessful bidders for bids that are 
        rejected.
            (D) Royalty payments shall not be less than 12\1/2\ 
        percent, and rental payments shall be prescribed by the 
        Secretary.
            (E) The Attorney General of the United States and the 
        Federal Trade Commission may conduct such review of lease terms 
        and lease sale activities as are necessary to ensure compliance 
        with the antitrust laws.
            (F) The size of lease tracts may be up to 11,520 acres but 
        not less than 2,560 acres, as determined by the Secretary, 
        except that the Secretary may lease smaller tracts if he 
        determines smaller tracts are necessary to promote a more 
        competitive leasing program or are necessary in certain 
        locations to mitigate reasonably foreseeable impacts on the 
        environment.
            (G) Each lease shall be issued for an initial period of up 
        to 10 years and shall be extended as long as oil or gas is 
        produced in paying quantities from the lease or unit area to 
        which the lease is committed or as drilling or reworking 
        operations as approved by the Secretary are conducted thereon.
            (H) The Secretary is authorized and directed to promulgate 
        regulations and to include terms in leases to ensure that--
                    (i) activities are conducted pursuant to an 
                approved exploration or development plan;
                    (ii) lessees secure an appropriate performance bond 
                to cover activities;
                    (iii) provision is made for the suspension, 
                cancellation, assignment, relinquishment and 
                unitization of leases; and
                    (iv) the Secretary has access to lease information 
                and that confidential, privileged or proprietary 
                information furnished by lessees is adequately 
                protected.
    (e) Judicial Review.--Any complaint filed seeking judicial review 
of an action of the Secretary in promulgating any regulation under this 
section may be filed only in the United States Court of Appeals for the 
District of Columbia, and such complaint shall be filed within 90 days 
from the date of such promulgation, or after such date if such 
complaint is based solely on grounds arising after such 90th day, in 
which case the complaint must be filed within 90 days after the 
complainant knew or reasonably should have known of the grounds for the 
complaint. Any complaint seeking judicial review of any other actions 
of the Secretary under this section may be filed in any appropriate 
district court of the United States, and such complaint must be filed 
within 90 days from the date of the action being challenged, or after 
such date if such complaint is based solely on grounds arising after 
such 90th day, in which case the complaint must be filed within 90 days 
after the complainant knew or reasonably should have known of the 
grounds for the complaint.
    (f) Administration.--(1) Section 1003 of the Alaska National 
Interest Lands Conservation Act of 1980 (94 Stat. 2452; 16 U.S.C. 3143) 
is repealed.
    (2) This section shall be considered the primary land management 
authorization for all activities associated with exploration, 
development, and production from the Coastal Plain. No land management 
review, determination, or other action shall be required except as 
specifically authorized by this section.
    (g) Protection of Fish and Wildlife Resources and Other 
Environmental Values.--(1) Before conducting a competitive oil and gas 
lease sale under this section, the Secretary shall promulgate, within 6 
months, as provided in subsection (d)(1), such rules and regulations as 
are necessary to ensure that oil and gas exploration, development, 
production, and transportation activities undertaken in the Coastal 
Plain achieve the reasonable protection of the fish and wildlife 
resources, environment and subsistence uses of the Coastal Plain.
    (2) The Secretary shall administer the provisions of this section 
through regulations and lease terms that the Secretary determines to be 
necessary to mitigate reasonably foreseeable and significantly adverse 
effects on the fish and wildlife, surface resources and subsistence 
resources of the Coastal Plain.
    (3)(A) The Secretary, after consultation with the State of Alaska, 
the city of Kaktovik, Alaska, and the North Slope Borough, is 
authorized to close to leasing and designate up to 30,000 acres of the 
Coastal Plain as Special Areas if the Secretary determines that these 
lands are of such unique character and interest so as to require 
special management and regulatory protection. The Secretary shall 
notify the Committee on Energy and Natural Resources of the Senate and 
the Committee on Resources of the House of Representatives 90 days in 
advance of making such designations. The Secretary may permit leasing 
of all or portions of any lands within the Coastal Plain designated as 
Special Areas by setting lease terms that limit or condition surface 
use and occupancy by lessees of such lands but permit the use of 
horizontal drilling technology from sites on leases located outside the 
designated Special Areas.
    (B) Notwithstanding any other provision of law or any international 
agreement to which the United States is a party, the Secretary's sole 
authority to close lands within the Coastal Plain to oil and gas 
leasing and to exploration, development, and production as provided for 
in this part is set forth in subparagraph (A).
    (4) The Secretary shall, in consultation with the State of Alaska, 
the city of Kaktovik, Alaska, and the North Slope Borough, develop 
guidelines to encourage the siting of facilities having common use 
characteristics (service bases, ports and docks, airports, major 
pipelines and roads) in a manner which leads to facility consolidation, 
avoids unnecessary duplication, utilizes existing facilities, minimizes 
impacts on fish, wildlife, habitat and the subsistence activities of 
residents of Native communities, and avoids disruption of the lives of 
the residents of the Village of Kaktovik and other communities.
    (5) Notwithstanding title XI of the Alaska National Interest Lands 
Conservation Act of 1980 (94 Stat. 2457; 16 U.S.C. 3161 et seq.), the 
Secretary is authorized and directed to grant, under sections 28(a) 
through (t) and (v) through (y) of the Mineral Leasing Act (30 U.S.C. 
185), rights-of-way and easements across the Coastal Plain for the 
purposes of this section, for pipeline construction, and the 
transportation of oil and gas and related purposes.
    (6) The Secretary is authorized to close, on a seasonal basis, 
portions of the Coastal Plain to exploratory drilling activities as 
necessary to protect caribou calving areas and other species of fish 
and wildlife.
    (h) Application of Environmental Laws.--The ``Final Legislative 
Environmental Impact Statement'' (April 1987) prepared pursuant to 
section 1002 of the Alaska National Interest Lands Conservation Act of 
1980 (94 Stat. 2449; 16 U.S.C. 3142) and section 102(2)(C) of the 
National Environmental Policy Act of 1969 (89 Stat. 424; 42 U.S.C. 
4332(2)(C)) is hereby determined to be adequate and legally sufficient 
for all actions authorized pursuant to this section, including all 
phases of oil and gas leasing, exploration, development, production, 
transportation and related activities, including the granting of 
rights-of-way, use permits and other authorizations.
    (i) New Revenues.--(1) Notwithstanding any other provision of law, 
all revenues received from competitive bids, sales, bonuses, royalties, 
rents, fees, interest or other income derived from the leasing of oil 
and gas resources within the Coastal Plain shall be deposited into the 
Treasury of the United States: Provided, That 50 percent of all such 
Coastal Plain revenues shall be paid by the Secretary of the Treasury 
semiannually, on March 30th and on September 30th of each year, to the 
State of Alaska.
    (2) On March 1st of each year following the date of enactment of 
this section, the Secretary shall prepare and submit to the Congress an 
annual report on the revenues derived and on the leasing program 
authorized by this section.
    (j) Conveyance.--Notwithstanding the provisions of section 
1302(h)(2) of the Alaska National Interest Lands Conservation Act (16 
U.S.C. 3192(h)(2)), the Secretary is authorized and directed to convey 
(1) to the Kaktovik Inupiat Corporation the surface estate of the lands 
described in paragraph 2 of Public Land Order 6959, to the extent 
necessary to fulfill the corporation's entitlement under section 12 of 
the Alaska Native Claims Settlement Act (43 U.S.C. 1611), and (2) to 
the Arctic Slope Regional Corporation the subsurface estate beneath 
such surface estate pursuant to the August 9, 1983, agreement between 
the Arctic Slope Regional Corporation and the United States of America.
    (k) Penalty.--Any person, including any Federal official, who fails 
to comply with any provision or mandate of this section, a lease term, 
or a regulation promulgated under this section, after notice of such 
failure and expiration of a reasonable period for corrective action, 
shall be liable, after hearing, for a civil penalty of not more than 
$10,000 for each day of the continuance of such failure.
    (l) Community Assistance.--There is hereby established a Community 
Assistance Fund in the Treasury which shall be maintained at a level of 
$5,000,000 annually from the Federal share of Coastal Plain revenues 
and shall be available to the Secretary for the purposes of this 
section. Organized boroughs, other municipal subdivisions of the State 
of Alaska, and recognized Indian Reorganization Act entities which are 
impacted by activities authorized under this section shall be eligible, 
on application to the Secretary, for local assistance from the 
Community Assistance Fund for needed social services and to provide 
public services and facilities required in connection with supporting 
exploration and development of the Coastal Plain.
    (m) Employment and Contracting.--As a condition of any leases, 
permits, or other Federal authorizations granted or issued pursuant to 
this section, a recipient of those leases, permits, or authorizations 
shall be required to use its best efforts to assure that the lessee and 
its agents and contractors provide a fair share of employment and 
contracting for Alaska Natives and Alaska Native Corporations from 
throughout the State.
    (n) Use of ANWR Revenues.--
            (1) Establishment of endowment.--There is hereby 
        established in the general fund of the Treasury a separate 
        account which shall be known as the National Endowment for Fish 
        and Wildlife.
            (2) Contents.--(A) Except as provided in subparagraph (B), 
        the Endowment shall consist of revenues received from the 
        following sources:
                    (i) Gifts, devises, and bequests to the Endowment.
                    (ii) Amounts appropriated by the Congress to the 
                Endowment.
                    (iii) Any revenues deposited into the Treasury of 
                the United States under subsection (i), from the 
                Federal share of revenues derived from oil and gas 
                leasing within the Coastal Plain, that exceed 
                $1,300,000,000.
            (B) After the Endowment has reached a level of $250,000,000 
        in principal, further payments to the Endowment shall consist 
        only of the following:
                    (i) Gifts, devises, and bequests to the Endowment.
                    (ii) Amounts appropriated by the Congress to the 
                Endowment.
                    (iii) 5 percent of the Federal royalties derived 
                from commercial production of oil and gas on Federal 
                leases on the Coastal Plain.
            (3) Establishment of fish and wildlife conservation 
        commission.--(A) To carry out the purposes of this subsection, 
        there is hereby established a commission to be known as the 
        Fish and Wildlife Conservation Commission.
            (B) The Commission shall consist of--
                    (i) the Secretary of the Interior, who shall be the 
                chairman,
                    (ii) 3 Members of the Senate selected by the 
                President of the Senate, and
                    (iii) 3 Members of the House of Representatives 
                selected by the Speaker.
            (C) At least 1 member of the Commission selected from each 
        House of Congress shall be a member of the minority party in 
        that House.
            (D) Any Member of the House of Representatives who is a 
        member of the Commission, if reelected to the succeeding 
        Congress, may serve on the Commission notwithstanding the 
        expiration of a Congress.
            (E) Any vacancy on the Commission shall be filled in the 
        same manner as the original appointment.
            (4) Expenditures by commission.--(A) The Fish and Wildlife 
        Commission may make expenditures from the Endowment for the 
        following fish and wildlife conservation purposes:
                    (i) Acquisition of important habitat lands for 
                endangered species or threatened species from owners of 
                private property. Such lands may be acquired solely on 
                a willing seller basis and shall be managed by the 
                Secretary of the Interior for the conservation of such 
                species pursuant to the terms of section 5 of the 
                Endangered Species Act of 1973 (16 U.S.C. 1534).
                    (ii) Provision of funding for purposes authorized 
                under the Endangered Species Act of 1973.
                    (iii) Provision of funds to the North American 
                Wetlands Conservation Fund pursuant to the North 
                American Wetlands Conservation Act (16 U.S.C. 4401 et 
                seq.).
            (B) The amount expended under subparagraph (A)(iii) each 
        fiscal year shall equal or exceed 25 percent of the total 
        expenditures from the Endowment in that fiscal year.
            (C) The Secretary of the Interior may not recommend any 
        lands or interest in lands for purchase or other forms of 
        acquisition using funds made available under the terms of this 
        section unless the Secretary of the Interior--
                    (i) has determined that such lands are necessary 
                for the conservation of endangered species or other 
                fish and wildlife; and
                    (ii) has consulted with the county or other unit of 
                local government in which such lands are located and 
                with the Governor of the State concerned.
            (D) Land or an interest in land may not be acquired with 
        moneys from the Endowment unless--
                    (i) the acquisition thereof has been approved by 
                the Governor of the State in which the land is located; 
                and
                    (ii) the owner of the land or interest has offered 
                the land or interest for acquisition under this 
                subsection and consented to the acquisition.
            (5) Annual report.--The Commission shall, through its 
        chairman, annually report in detail to the Congress, by not 
        later than the first Monday in December, regarding the 
        operations of the Commission during the preceding fiscal year.
            (6) State law.--The jurisdiction of any State, both civil 
        and criminal, over persons upon areas acquired under this 
        subsection shall not be changed or otherwise affected by reason 
        of the acquisition and administration of the areas by the 
        United States as endangered species habitat. Nothing in this 
        subsection is intended to interfere with the operation of the 
        game laws of the States.
            (7) Administration of areas acquired.--Areas of lands, 
        waters, or interest therein acquired or reserved pursuant to 
        this subsection shall, unless otherwise provided by law, be 
        administered by the Secretary of the Interior under rules and 
        regulations prescribed by the Secretary to conserve and protect 
        endangered species in accordance with the Endangered Species 
        Act of 1973, or to restore or develop adequate wildlife 
        habitat.
            (8) Definitions.--In this subsection:
                    (A) The term ``Commission'' means the Fish and 
                Wildlife Conservation Commission established by this 
                subsection.
                    (B) The term ``Endowment'' means the National 
                Endowment for Fish and Wildlife established by this 
                subsection.
            (9) Conforming amendment.--Section 7 of the North American 
        Wetlands Conservation Act of 1989 (16 U.S.C. 4406) is amended 
        by adding at the end the following:
    ``(e) Fish and Wildlife Commission Funding.--In addition to the 
amounts made available under subsections (a), (b), and (c) of this 
section, the Council may receive funds from the Fish and Wildlife 
Commission to carry out the purposes of this Act. Use of such funds 
shall not be subject to the cost allocation requirements of section 8 
of this Act.''.

SEC. 9003. ALASKA POWER ADMINISTRATION SALE.

    (a) Definitions.--For purposes of this section:
            (1) The term ``Eklutna assets'' means the Eklutna 
        Hydroelectric Project and related assets as described in 
        section 4 and Exhibit A of the Eklutna Purchase Agreement.
            (2) The term ``Eklutna Purchase Agreement'' means the 
        August 2, 1989, Eklutna Purchase Agreement between the Alaska 
        Power Administration of the Department of Energy and the 
        Eklutna Purchasers, together with any amendments thereto which 
        were adopted before the enactment of this section.
            (3) The term ``Eklutna Purchasers'' means the Municipality 
        of Anchorage doing business as Municipal Light and Power, the 
        Chugach Electric Association, Inc. and the Matanuska Electric 
        Association, Inc.
            (4) The term ``Secretary'' means the Secretary of Energy 
        except where otherwise specified.
            (5) The term ``Snettishan assets'' means the Snettisham 
        Hydroelectric Project and related assets as described in 
        section 4 and Exhibit A of the Snettisham Purchase Agreement.
            (6) The term ``Snettisham Purchase Agreement'' means the 
        February 10, 1989, Snettisham Purchase Agreement between the 
        Alaska Power Administration of the Department of Energy and the 
        Alaska Power Authority and its successors in interest, together 
        with any amendments thereto which were adopted before the 
        enactment of this section.
    (b) Sale of Snettisham and Eklunta Assets.--
            (1) Snettisham.--The Secretary is authorized and directed 
        to sell and transfer the Snettisham assets to the State of 
        Alaska in accordance with the terms of this section and the 
        Snettisham Purchase Agreement.
            (2) Eklutna.--The Secretary is authorized and directed to 
        sell and transfer the Eklutna assets to the Eklutna Purchasers 
        in accordance with the terms of this section and the Eklutna 
        Purchase Agreement.
            (3) Cooperation of other agencies.--Other departments, 
        agencies, and instrumentalities of the United States shall 
        cooperate with the Secretary in implementing the sales and 
        transfers under this section.
            (4) Authorization of appropriations; contributed funds.--
        (A) There are authorized to be appropriated such sums as may be 
        necessary to prepare, survey, or acquire Snettisham and Eklutna 
        assets for sale and transfer under this section. Such 
        preparations and acquisitions shall provide sufficient title in 
        the assets to ensure beneficial use, enjoyment, and occupancy 
        thereof to the purchasers.
            (B) Notwithstanding any other provision of law, the Alaska 
        Power Administration is authorized to receive, administer, and 
        expend such contributed funds as may be provided by the Eklutna 
        Purchasers or customers or the Snettisham Purchasers or 
        customers for the purposes of upgrading, improving, 
        maintaining, or administering Eklutna or Snettisham. Upon the 
        termination of the Alaska Power Administration required under 
        subsection (d), the Secretary of Energy shall administer and 
        expend any remaining balances of such contributed funds for the 
        purposes intended by the contributors.
    (c) General Provisions.--
            (1) Rights-of-way and other lands for the eklutna 
        project.--With respect to Eklutna lands described in Exhibit A 
        of the Eklutna Purchase Agreement:
                    (A) The Secretary of the Interior shall issue 
                rights-of-way to the Alaska Power Administration for 
                subsequent reassignment to the Eklutna Purchasers at no 
                cost to the Eklutna Purchasers.
                    (B) Such rights-of-way shall remain effective for a 
                period equal to the life of the Eklutna hydroelectric 
                project as extended by improvements, repairs, renewals, 
                or replacements.
                    (C) Such rights-of-way shall be sufficient for the 
                operation, maintenance, repair, and replacement of, and 
                access to, the facilities of the Eklutna hydroelectric 
                project located on military lands and lands managed by 
                the Bureau of Land Management, including land selected 
                by, but not yet conveyed to, the State of Alaska.
                    (D) If the Eklutna Purchasers subsequently sell or 
                transfer the Eklutna hydroelectric project to private 
                ownership, the Bureau of Land Management may assess 
                reasonable and customary fees for continued use of the 
                rights-of-way on lands managed by the Bureau of Land 
                Management and military lands in accordance with 
                applicable law.
                    (E) The Secretary shall transfer fee title to lands 
                at Anchorage Substation to the Eklutna Purchasers at no 
                additional cost if the Secretary of the Interior 
                determines that pending claims to and selections of 
                those lands are invalid or relinquished.
                    (F) With respect only to the Eklutna lands 
                identified in Exhibit A of the Eklutna Purchase 
                Agreement, the State of Alaska may select, and the 
                Secretary of the Interior shall convey, to the State, 
                improved lands under the selection entitlements in 
                section 6 of the Alaska Statehood Act (Public Law 85-
                508; 72 Stat. 339) and the North Anchorage Land 
                Agreement of January 31, 1983. The conveyance of such 
                lands is subject to the rights-of-way provided to the 
                Eklutna Purchasers under subparagraph (A).
            (2) Lands for the snettisham project.--With respect to the 
        Snettisham lands identified in Exhibit A of the Snettisham 
        Purchase Agreement, the State of Alaska may select, and the 
        Secretary of the Interior shall convey to the State, improved 
        lands under the selection entitlement in section 6 of the 
        Alaska Statehood Act (Public Law 85-508; 72 Stat. 339).
            (3) Effect on state selections.--Notwithstanding the 
        expiration of the right of the State of Alaska to make 
        selections under section 6 of the Alaska Statehood Act (Public 
        Law 85-508; 72 Stat. 339), the State of Alaska may select lands 
        authorized for selection under this section or any Purchase 
        Agreement incorporated into or ratified by this section. The 
        State shall complete such selections within one year after the 
        date of the enactment of this section. The Secretary of the 
        Interior shall convey lands selected by the State under this 
        section notwithstanding the limitation contained in section 
        6(b) of the Alaska Statehood Act (Public Law 85-508; 72 Stat. 
        339) regarding the occupancy, appropriation, or reservation of 
        selected lands. Nothing in this subsection shall be construed 
        to authorize the Secretary of the Interior to convey to the 
        State of Alaska a total acreage of selected lands in excess of 
        the total acreage which could be transferred to the State of 
        Alaska pursuant to the Alaska Statehood Act (Public Law 85-508; 
        72 Stat. 339), and other applicable law.
            (4) Repeal of act of august 9, 1955.--The Act of August 9, 
        1955 (69 Stat. 618), concerning water resources investigations 
        in Alaska, is repealed.
            (5) Treatment of asset sale.--The sales of assets under 
        this section shall not be considered a disposal of Federal 
        surplus property under the Federal Property and Administrative 
        Services Act of 1949 (40 U.S.C. 484) or the Surplus Property 
        Act of 1944 (50 U.S.C. App. 1622).
            (6) Application of certain laws.--(A) The Act of July 31, 
        1950 (64 Stat. 382), shall cease to apply on the date, as 
        determined by the Secretary, when all Eklutna assets have been 
        conveyed to the Eklutna Purchasers.
            (B) Section 204 of the Flood Control Act of 1962 (Public 
        Law 87-874; 76 Stat. 1193) shall cease to apply effective on 
        the date, as determined by the Secretary, when all Snettisham 
        assets have been conveyed to the State of Alaska.
    (d) Termination of Alaska Power Administration.--
            (1) Termination of alaska power administation.--Not later 
        than one year after both of the sales authorized in this 
        section have occurred, as measured by the Transaction Dates 
        stipulated in the Purchase Agreements, the Secretary shall--
                    (A) complete the business of, and close out, the 
                Alaska Power Administration;
                    (B) prepare and submit to Congress a report 
                documenting the sales; and
                    (C) return unobligated balances of funds 
                appropriated for the Alaska Power Administration to the 
                Treasury of the United States.
            (2) DOE organization act.--Section 302(a) of the Department 
        of Energy Organization Act (42 U.S.C. 7152(a)) is amended as 
        follows:
                    (A) In paragraph (1)--
                            (i) by striking out subparagraph (C); and
                            (ii) by redesignating subparagraphs (D), 
                        (E), and (F) as subparagraphs (C), (D), and (E) 
                        respectively.
                    (B) In paragraph (2), by striking out ``the 
                Bonneville Power Administration, and the Alaska Power 
                Administration'' and inserting in lieu thereof ``and 
                the Bonneville Power Administration''.
        The amendments made by this paragraph shall take effect on the 
        date on which the Secretary submits the report referred to in 
        subparagraph (B) of paragraph (1).
    (e) Proceeds.--The proceeds from the sale of Snettisham and Eklutna 
assets under this section shall be credited to miscellaneous receipts 
in the Treasury.

                      PART 2--HELIUM PRIVATIZATION

SEC. 9011. SHORT TITLE.

    This part may be cited as the ``Helium Privatization Act of 1995''.

SEC. 9012. AMENDMENT OF HELIUM ACT.

    Except as otherwise expressly provided, whenever in this part an 
amendment or repeal is expressed in terms of an amendment to, or repeal 
of, a section or other provision, the reference shall be considered to 
be made to a section or other provision of the Helium Act (50 U.S.C. 
167 to 167n).

SEC. 9013. AUTHORITY OF SECRETARY.

    Sections 3, 4, and 5 are amended to read as follows:

``SEC. 3. AUTHORITY OF SECRETARY.

    ``(a) Extraction and Disposal of Helium on Federal Lands.--(1) The 
Secretary may enter into agreements with private parties for the 
recovery and disposal of helium on Federal lands upon such terms and 
conditions as he deems fair, reasonable and necessary. The Secretary 
may grant leasehold rights to any such helium. The Secretary may not 
enter into any agreement by which the Secretary sells such helium other 
than to a private party with whom the Secretary has an agreement for 
recovery and disposal of helium. Such agreements may be subject to such 
rules and regulations as may be prescribed by the Secretary.
    ``(2) Any agreement under this subsection shall be subject to the 
existing rights of any affected Federal oil and gas lessee. Each such 
agreement (and any extension or renewal thereof) shall contain such 
terms and conditions as deemed appropriate by the Secretary.
    ``(3) This subsection shall not in any manner affect or diminish 
the rights and obligations of the Secretary and private parties under 
agreements to dispose of helium produced from Federal lands in 
existence at the enactment of the Helium Privatization Act of 1995 
except to the extent that such agreements are renewed or extended after 
such date.
    ``(b) Storage, Transportation, and Sale.--The Secretary is 
authorized to store, transport, and sell helium only in accordance with 
this Act.
    ``(c) Monitoring and Reporting.--The Secretary is authorized to 
monitor helium production and helium reserves in the United States and 
to periodically prepare reports regarding the amounts of helium 
produced and the quantity of crude helium in storage in the United 
States.

``SEC. 4. STORAGE, TRANSPORTATION, AND WITHDRAWAL OF CRUDE HELIUM.

    ``(a) Storage, Transportation, and Withdrawal.--The Secretary is 
authorized to store and transport crude helium and to maintain and 
operate existing crude helium storage at the Bureau of Mines Cliffside 
Field, together with related helium transportation and withdrawal 
facilities.
    ``(b) Cessation of Production, Refining, and Marketing.--Effective 
18 months after the date of enactment of the Helium Privatization Act 
of 1995, the Secretary shall cease producing, refining and marketing 
refined helium and shall cease carrying out all other activities 
relating to helium which the Secretary was authorized to carry out 
under this Act before the date of enactment of the Helium Privatization 
Act of 1995, except those activities described in subsection (a). The 
amount of helium reserves owned by the United States and stored in the 
Bureau of Mines Cliffside Field at such date of cessation, less 
600,000,000 cubic feet, shall be the helium reserves owned by the 
United States required to be sold pursuant to section 8(b) hereof.
    ``(c) Disposal of Facilities.--(1) Within two years after the date 
on which the Secretary ceases producing, refining and marketing refined 
helium and ceases all other activities relating to helium in accordance 
with subsection (b), the Secretary shall dispose of all facilities, 
equipment, and other real and personal property, together with all 
interests therein, held by the United States for the purpose of 
producing, refining and marketing refined helium. The disposal of such 
property shall be in accordance with the provisions of law governing 
the disposal of excess or surplus properties of the United States.
    ``(2) All proceeds accruing to the United States by reason of the 
sale or other disposal of such property shall be treated as moneys 
received under this chapter for purposes of section 6(f). All costs 
associated with such sale and disposal (including costs associated with 
termination of personnel) and with the cessation of activities under 
subsection (b) shall be paid from amounts available in the helium 
production fund established under section 6(f).
    ``(3) Paragraph (1) shall not apply to any facilities, equipment, 
or other real or personal property, or any interest therein, necessary 
for the storage and transportation of crude helium or any equipment 
needed to maintain the purity, quality control, and quality assurance 
of helium in the reserve.
    ``(d) Existing Contracts.--All contracts which were entered into by 
any person with the Secretary for the purchase by such person from the 
Secretary of refined helium and which are in effect on the date of the 
enactment of the Helium Privatization Act of 1995 shall remain in force 
and effect until the date on which the facilities referred to in 
subsection (c) are disposed of. Any costs associated with the 
termination of such contracts shall be paid from the helium production 
fund established under section 6(f).

``SEC. 5. FEES FOR STORAGE, TRANSPORTATION AND WITHDRAWAL.

    ``Whenever the Secretary provides helium storage, withdrawal, or 
transportation services to any person, the Secretary is authorized and 
directed to impose fees on such person to reimburse the Secretary for 
the full costs of providing such storage, transportation, and 
withdrawal. All such fees received by the Secretary shall be treated as 
moneys received under this Act for purposes of section 6(f).''.

SEC. 9014. SALE OF CRUDE HELIUM.

    Section 6 is amended as follows:
            (1) Subsection (a) is amended by striking out ``from the 
        Secretary'' and inserting ``from persons who have entered into 
        enforceable contracts to purchase an equivalent amount of crude 
        helium from the Secretary''.
            (2) Subsection (b) is amended by inserting ``crude'' before 
        ``helium'' and by adding the following at the end thereof: 
        ``Except as may be required by reason of subsection (a), the 
        Secretary shall not make sales of crude helium under this 
        section in such amounts as will disrupt the market price of 
        crude helium.''.
            (3) Subsection (c) is amended by inserting ``crude'' before 
        ``helium'' the first place it appears and by striking 
        ``together with interest as provided in subsection (d) of this 
        section'' and all that follows down through the period at the 
        end of such subsection and inserting the following:
``all funds required to be repaid to the United States as of October 1, 
1995, under this section (hereinafter referred to as `repayable 
amounts'). The price at which crude helium is sold by the Secretary 
shall not be less than the amount determined by the Secretary as 
follows:
            ``(1) Divide the outstanding amount of such repayable 
        amounts by the volume (in mcf) of crude helium owned by the 
        United States and stored in the Bureau of Mines Cliffside Field 
        at the time of the sale concerned.
            ``(2) Adjust the amount determined under paragraph (1) by 
        the Consumer Price Index for years beginning after December 31, 
        1995.''.
            (4) Subsection (d) is amended to read as follows:
    ``(d) Extraction of Helium From Deposits on Federal Lands.--All 
moneys received by the Secretary from the sale or disposition of helium 
on Federal lands shall be paid to the Treasury and credited against the 
amounts required to be repaid to the Treasury under subsection (c) of 
this section.''.
            (5) Subsection (e) is repealed.
            (6) Subsection (f) is amended by inserting ``(1)'' after 
        ``(f)'' and by adding the following at the end thereof:
    ``(2) Within 7 days after the commencement of each fiscal year 
after the disposal of the facilities referred to in section 4(c), all 
amounts in such fund in excess of $2,000,000 (or such lesser sum as the 
Secretary deems necessary to carry out this Act during such fiscal 
year) shall be paid to the Treasury and credited as provided in 
paragraph (1). Upon repayment of all amounts referred to in subsection 
(c), the fund established under this section shall be terminated and 
all moneys received under this Act shall be deposited in the Treasury 
as General Revenues.''.

SEC. 9015. ELIMINATION OF STOCKPILE.

    Section 8 is amended to read as follows:

``SEC. 8. ELIMINATION OF STOCKPILE.

    ``(a) Review of Reserves.--The Secretary shall review annually the 
known helium reserves in the United States and make a determination as 
to the expected life of the domestic helium reserves (other than 
Federally owned helium stored at the Cliffside Reservoir) at that time.
    ``(b) Stockpile Sales.--Not later than January 1, 2005, the 
Secretary shall commence offering for sale crude helium from helium 
reserves owned by the United States in such minimum annual amounts as 
would be necessary to dispose of all such helium reserves in excess of 
600,000,000 cubic feet (mcf) on a straight-line basis between such date 
and January 1, 2015: Provided, That the minimum price for all such 
sales, as determined by the Secretary in consultation with the helium 
industry, shall be such as will ensure repayment of the amounts 
required to be repaid to the Treasury under section 6(c), and provided 
further that the minimum annual sales requirement may be deferred only 
if, and to the extent that, the Secretary is unable to arrange sales at 
the minimum price. The sales shall be at such times during each year 
and in such lots as the Secretary determines, in consultation with the 
helium industry, are necessary to carry out this subsection with 
minimum market disruption.
    ``(c) Discovery of Additional Reserves.--The discovery of 
additional helium reserves shall not affect the duty of the Secretary 
to make sales of helium as provided in subsection (b), as the case may 
be.''.

SEC. 9016. REPEAL OF AUTHORITY TO BORROW.

    Sections 12 and 15 are repealed.

SEC. 9017. REPORTS.

    Section 16 is amended by redesignating existing section 16 as 
section 16(a) and inserting the following at the end thereof:
    ``(b)(1) The Inspector General of the Department of the Interior 
shall cause to be prepared, not later than March 31 following each 
fiscal year commencing with the date of enactment of the Helium 
Privatization Act of 1995, annual financial statements for the Helium 
Operations of the Bureau of Mines. The Director of the Bureau of Mines 
shall cooperate with the Inspector General in fulfilling this 
requirement, and shall provide him with such personnel and accounting 
assistance as may be necessary for that purpose. The financial 
statements shall be audited by the General Accounting Office, and a 
report on such audit shall be delivered by the General Accounting 
Office to the Secretary of the Interior and Congress, not later than 
June 30 following the end of the fiscal year for which they are 
prepared. The audit shall be prepared in accordance with generally 
accepted government auditing standards.
    ``(2) The financial statements shall be comprised of the following:
            ``(A) A balance sheet reflecting the overall financial 
        position of the Helium Operations, including assets and 
        liabilities thereof;
            ``(B) the Statement of Operations, reflecting the fiscal 
        period results of the Helium Operations;
            ``(C) a statement cash flows or changes in financial 
        position of the Helium Operations; and
            ``(D) a reconciliation of budget reports of the Helium 
        Operations.
    ``(3) The Statement of Operations shall include but not be limited 
to the revenues from, and costs of, sales of crude helium, the storage 
and transportation of crude helium, the production, refining and 
marketing of refined helium, and the maintenance and operation of 
helium storage facilities at the Bureau of Mines Cliffside Field. The 
term `revenues' for this purpose shall exclude (A) royalties paid to 
the United States for production of helium or other extraction of 
resources, except to the extent that the Helium Operations incur direct 
costs in connection therewith, and (B) proceeds from sales of assets 
other than inventory. The term `expenses' shall include, but not be 
limited to (i) all labor costs of the Bureau of Mines Helium 
Operations, and of the Department of the Interior in connection 
therewith, and (ii) for financial reporting purposes but not in 
connection with the determination of sales prices in section 6(c), all 
current-period interest on outstanding repayable amounts (as described 
in section 6(c)) calculated at the same rates as such interest was 
calculated prior to the enactment of the Helium Privatization Act of 
1995.
    ``(4) The balance sheet shall include, but not be limited to, on 
the asset side, the present discounted market value of crude helium 
reserves; and on the liability side, the accrued liability for 
principal and interest on debt to the United States. For financial 
reporting purposes but not in connection with the determination of 
sales prices in section 6(c), the balance sheet shall also include 
accrued but unpaid interest on outstanding repayable amounts (as 
described in section 6(c)) through the date of the report, calculated 
at the same rates as such interest was calculated prior to the 
enactment of the Helium Privatization Act of 1995.''.

SEC. 9018. LAND CONVEYANCE IN POTTER COUNTY, TEXAS.

    (a) In General.--The Secretary of the Interior shall transfer all 
right, title, and interest of the United States in and to the parcel of 
land described in subsection (b) to the Texas Plains Girl Scout Council 
for consideration of $1, reserving to the United States such easements 
as may be necessary for pipeline rights-of-way.
    (b) Land Description.--The parcel of land referred to in subsection 
(a) is all those certain lots, tracts or parcels of land lying and 
being situated in the County of Potter and State of Texas, and being 
the East Three Hundred Thirty-One (E331) acres out of Section Seventy-
eight (78) in Block Nine (9), B.S. & F. Survey, (sometimes known as the 
G. D. Landis pasture) Potter County, Texas, located by certificate No. 
1/39 and evidenced by letters patents Nos. 411 and 412 issued by the 
State of Texas under date of November 23, 1937, and of record in Vol. 
66A of the Patent Records of the State of Texas. The metes and bounds 
description of such lands is as follows:
            (1) First tract.--One Hundred Seventy-one (171) acres of 
        land known as the North part of the East part of said survey 
        Seventy-eight (78) aforesaid, described by metes and bounds as 
        follows:
                Beginning at a stone 20 x 12 x 3 inches marked X, set 
                by W. D. Twichell in 1905, for the Northeast corner of 
                this survey and the Northwest corner of Section 59;
                Thence, South 0 degrees 12 minutes East with the West 
                line of said Section 59, 999.4 varas to the Northeast 
                corner of the South 160 acres of East half of Section 
                78:
                Thence, North 89 degrees 47 minutes West with the North 
                line of the South 150 acres of the East half, 956.8 
                varas to a point in the East line of the West half 
                Section 78:
                Thence North 0 degrees 10 minutes West with the East 
                line of the West half 999.4 varas to a stone 18 x 14 x 
                3 inches in the middle of the South line of Section 79;
                Thence South 89 degrees 47 minutes East 965 varas to 
                the place of beginning.
            (2) Second tract.--One Hundred Sixty (160) acres of land 
        known as the South part of the East part of said survey No. 
        Seventy-eight (78) described by metes and bounds as follows:
                Beginning at the Southwest corner of Section 59, a 
                stone marked X and a pile of stones;
                Thence North 89 degrees 47 minutes West with the North 
                line of Section 77, 966.5 varas to the Southeast corner 
                of the West half of Section 78;Thence North 0 degrees 
                10 minutes West with the East line of the West half of 
                Section 78;
                Thence South 89 degrees 47 minutes East 965.8 varas to 
                a point in the East line of Section 78;
                Thence South 0 degrees 12 minutes East 934.6 varas to 
                the place of beginning.
        Containing an area of 331 acres, more or less.

                      Subtitle B--Water and Power

                PART 1--POWER MARKETING ADMINISTRATIONS

SEC. 9201. SHORT TITLE.

    This part may be cited as the ``Power Administration Act''.

SEC. 9202. SALE OF THE SOUTHEASTERN POWER ADMINISTRATION.

    (a) Sale of the Southeastern Power Administration Assets.--The 
Secretary of Energy (hereafter in this part referred to as the 
``Secretary'') is authorized and directed to sell the facilities used 
to generate the electric power marketed by the Southeastern Power 
Administration, including all dams, locks, reservoirs, and related 
transmission and generation structures, equipment, facilities and real 
property (including rights-of-way) which are used in connection with 
the operation of such power generation facilities. The sale shall also 
include all contracts, marketing agreements, and any and all other 
rights, interests, and obligations held or owed by the Southeastern 
Power Administration. Each sale shall be subject to all existing 
storage rights in such reservoirs acquired by local interests pursuant 
to the Water Supply Act of 1958 (Public Law 85-500; 43 U.S.C. 390b) and 
sections 1, 2, and 3 of Public Law 88-140 (43 U.S.C. 390c through 390e) 
for water supply or other purposes and all such rights shall survive 
such sale; all obligations of the United States under contracts with 
such local interests for the use of such storage shall be assumed by 
any purchaser so that such local interests may continue to operate and 
utilize their storage in accordance with their existing contracts with 
the United States without entering into an additional contract with the 
United States or the purchaser, notwithstanding any provision of law or 
contract to the contrary. In order to assure that the facilities are 
transferred in a manner that provides a reasonable payment to the 
United States, sales under this section shall be made through a 
competitive bidding process open to all bidders determined by the 
Secretary to be financially qualified and who have the experience and 
resources necessary to manage the transferred assets. No facility or 
group of facilities may be sold for an amount less than the minimum bid 
established and published by the Secretary. The minimum bid shall be 
equal to the net present value of the outstanding debt repayable to the 
United States and attributable to the facility or group of facilities 
concerned.
    (b) Cooperation of Other Agencies.--The heads of other affected 
Federal departments and agencies shall assist the Secretary in 
implementing the sales authorized by this section. Upon receiving a 
written request from the Secretary, the head of any such department or 
agency having administrative jurisdiction over any facility to be sold 
under this section shall transfer (at such time as may be specified by 
the Secretary in such request) such facility to the Secretary for 
purposes of effectuating such sale.
    (c) Financial and Bid Management Advisor.--
            (1) Retention of advisor.--Within six months of the date of 
        enactment of this Act, the Secretary shall retain an 
        experienced private sector firm to serve as financial and bid 
        management advisor (hereinafter ``advisor'') to the Secretary 
        with respect to such sales. The advisor shall not have any 
        substantial financial interest in the existing assets, their 
        operation or the ultimate purchasers.
            (2) Notice.--Within six months after the date of enactment 
        of this Act, the Secretary shall also publish a notice in the 
        Federal Register soliciting all parties which have an 
        operational or ownership interest in the Southeast Power 
        Administration to provide evidence of such interest within 90 
        days of the published notice.
            (3) Advisor's report.--Within six months of being retained 
        by the Secretary and based on information provided by the 
        Secretary and the information obtained in paragraph (2), the 
        advisor shall provide to the Secretary a report containing each 
        of the following:
                    (A) A plan for the competitive sale of all assets 
                and interests, held by the Southeastern Power 
                Administration, out of Federal ownership and operation.
                    (B) An estimate of the net present value of the 
                income expected to be derived over the next 50 years 
                from each facility or group of facilities to be sold 
                under this section.
                    (C) An estimate of the net present value of the 
                expenses expected to be incurred over the next 50 years 
                in connection with each facility or group of facilities 
                to be sold under this section.
                    (D) a comparison between the net of subparagraphs 
                (A) and (B) and the net present value of the 
                outstanding debt which the Federal government 
                attributes to the asset being sold.
                    (E) The options for the grouping of facilities to 
                be sold under this section. The transfer shall be 
                structured to transfer assets and interests of the 
                Southeast Power Administration by watershed or by 
                project unless the Advisor can provide satisfactory 
                information to the Secretary that another alternative 
                should be used. Groupings of assets shall specifically 
                be designed to transfer all assets in a manner that 
                provides reasonable payment to the United States of all 
                assets within the Southeast Power Administration.
    (d) Proceeds.--The Secretary is directed to use up to $6,000,000 
from unobligated balances available to the Department of Energy to fund 
any sale preparation costs or studies provided for in this section, and 
shall provide an accounting of all sale preparation costs and studies 
to the Committee on Resources of the House of Representatives and to 
the Committee on Energy and Natural Resources of the Senate within 60 
days after completion of the sale or study. The proceeds of any sale of 
a facility or group of facilities under this section shall be used 
first to offset the costs of carrying out such sale or study and the 
remaining net proceeds shall be deemed to extinguish the outstanding 
debt repayable to the United States and attributable to such facility 
or group of facilities. Any portion of such net proceeds which exceeds 
the net present value of the outstanding debt repayable to the United 
States and attributable to the facility or group of facilities 
concerned shall be deposited in the Treasury of the United States as 
miscellaneous receipts.
    (e) Treatment of Sales for Purposes of Certain Laws.--The sales of 
assets under this part shall not be considered a disposal of Federal 
surplus property under the following provisions of law:
            (1) Section 203 of the Federal Property and Administrative 
        Services Act of 1949 (40 U.S.C. 484).
            (2) Section 13 of the Surplus Property Act of 1944 (50 
        U.S.C. App. 1622).
    (f) Existing Contracts, Uses, Etc.--All sales of assets and rights 
under this section shall be subject to all contracts, debt obligations 
to non-Federal entities, and other binding agreements which apply, as 
of the date of such sale, to the facilities concerned and to the sale 
of electric power from such facilities. The purchaser of each such 
facility shall assume all liabilities and obligations of the United 
States under such contracts, obligations or other agreements. The 
Southeastern Power Administration shall not, after the date of 
enactment of this Act, enter into a long-term agreement, contract, or 
other long-term obligation or responsibility, except to the extent that 
such an obligation is essential to the continued operation of the 
Southeastern Power Administration or will significantly enhance or 
maintain the value of a facility after it is transferred. The United 
States shall remain responsible for concluding all lawsuits associated 
with the assets which are the subject of a transfer and which are 
extant as of the date of the enactment of this Act, whether in its 
capacity of plaintiff or defendant. Any right, title, or interest of 
the United States which exists at the conclusion of such lawsuits and 
which would otherwise have been transferred, but for the lawsuit, shall 
be transferred to the party in interest who acquired the related asset 
from the United States. The United States shall remain responsible for 
any outstanding Indian trust responsibilities, unless the transfer in 
question specifically identifies the obligation being transferred.
    (g) Report to FERC.--Not later than June 30, 1997, the Secretary 
shall provide each of the following to the Federal Energy Regulatory 
Commission each of the following:
            (1) A description of--
                    (A) all the assets tangible and intangible that 
                comprise each hydroelectric project to be sold under 
                this section;
                    (B) the existing terms of operation with respect to 
                such hydroelectric project; and
                    (C) any other interest being proposed for transfer.
            (2) The information pertaining to such hydroelectric 
        project required by title 18 of the Code of Federal 
        Regulations, subparts B and F, or G, as appropriate, except 
        exhibit E.
            (3) The date when an offer for purchase of the assets must 
        be submitted.
    (h) Notice of Sale and Solicitation of Bids.--Not later than March 
31, 1998, the Secretary shall publish a notice in the Federal Register 
which includes each of the following:
            (1) A description of--
                    (A) all the assets tangible and intangible that 
                comprise each hydroelectric project to be sold under 
                this section;
                    (B) the existing terms of operation with respect to 
                such hydroelectric project; and
                    (C) any other interest being proposed for transfer.
            (2) The date, time, and conditions of the bids that must be 
        met to submit a successful bid for the assets to be sold under 
        this part.
            (3) The terms and conditions identified in the proposed 
        license provided from the Federal Energy Regulatory Commission 
        to the Secretary under this part.
    (i) Date of Sale.--All sales under this section shall be completed 
between July 1, 1999, and September 30, 1999.
    (j) Termination of the Southeastern Power Administration.--
Following the sale of all facilities referred to in subsection (a), the 
Secretary shall complete the business of and close out the Southeast 
Power Administration and return the unexpended balances of funds 
appropriated for the Administration to the Treasury of the United 
States. To the extent practical, the purchasers under this section 
should, consistent with good business practices, attempt to offer to 
employ those former employees of the Southeastern Power Administration 
who are necessary to the continued operation of such facilities 
following the sale of the facilities.

SEC. 9203. FEDERAL ENERGY REGULATORY COMMISSION JURISDICTION.

    (a) Regulation of Rates and Charges.--All rates and charges 
established for the wholesale sale of electric power from facilities 
sold under section 9202 shall be subject to part 2 of the Federal Power 
Act. This subsection shall take effect upon the expiration of any 
contract which is applicable to the sale of such electric power on the 
date of the sale of the facility concerned. In approving, disapproving 
or establishing rates and charges for the sale of electric power from 
any facility sold under section 9202, the Federal Energy Regulatory 
Commission shall determine the extent to which any proposed increase in 
any such rate or charge is attributable to the sale of such facility. 
The Commission shall disallow any such increase to the extent the 
increase is attributable to such sale and is greater than \1/2\ of the 
increase (between the date of sale of the facility and the date on 
which the application for a rate increase is filed) in the Consumer 
Price Index (published by the Bureau of Labor Statistics) for the 
region in which such power is sold. For purposes of determining the 
amount of a proposed increase in a rate or charge for the sale of 
electric power from any facility sold under section 9202, the increase 
shall be measured from the rates and charges in effect on date of the 
sale of the facility. This subsection applies to all wholesale 
purchasers who, for the calendar year ending immediately prior to the 
year in which this Act is enacted, received at least 20 percent of 
their power from the Southeastern Power Administration.
    (b) Original License.--Not later than January 1, 1998, the Federal 
Energy Regulatory Commission shall provide the Secretary with a 
proposed license for each hydroelectric project to be sold under 
section 9202. Not later than September 30, 1999, the Commission shall 
issue to the purchaser of each hydroelectric project sold under section 
9202 a license under part I of the Federal Power Act (16 U.S.C. 791a-
823b) authorizing the continued operation and maintenance of such 
project for a term of 30 years. Such license shall--
            (1) be for the project purposes established by the existing 
        terms of operation and shall be consistent with the proposed 
        license provided to the Secretary;
            (2) be conditioned upon the requirement that the licensed 
        project continue to be operated and maintained in accordance 
        with the existing terms of operation, except that the licensee 
        may make improvements to the project which increase capacity 
        without amendment to the license so long as existing minimum 
        flows are not affected;
            (3) be subject only to the appropriate standard ``L-Form'' 
        license conditions, published at 54 FPC 1792-1928 (1975), 
        except that the license may not be reopened for any purpose for 
        the first 10 years of the license;
            (4) provide a 10-year period for the licensee to meet the 
        Commission's dam safety regulations, set forth at title 18 of 
        the Code of Federal Regulations, part 12;
            (5) not be subject to: the word ``constructed'' in section 
        3(10), the 4 provisos of section 4(e); section 6 to the extent 
        it requires the licensee's acceptance of those terms and 
        conditions of the Act that this subsection waives; section 
        10(e) as it concerns annual charges for the use and occupancy 
        of Federal lands and facilities; section 10(f), section 10(j), 
        section 18, section 19, section 20, and section 22 of the 
        Federal Power Act (16 U.S.C. 796(10), 797(e), 799, 803(e), 
        803(f), 803(j), 811, 812, 813, and 815); and
            (6) contain minimum flow restrictions no more restrictive 
        than those currently in effect, if any, such minimum flow 
        restrictions may not be altered during the primary term of the 
        license.
    (c) Acts Applicable to Licensing.--The issuance of a license 
pursuant to subsection (b) shall not be subject to the provisions of 
the Federal Land Policy and Management Act of 1976, section 2402 of the 
Energy Policy Act of 1992, the National Environmental Policy Act of 
1969, the Endangered Species Act of 1973, the Wild and Scenic Rivers 
Act, the Federal Water Pollution Control Act, the National Historic 
Preservation Act, the Coastal Zone Management Act, the Fish and 
Wildlife Coordination Act, or any other Act otherwise applicable to the 
licensing of the projects.
    (d) Effect of License.--A license issued under subsection (b)--
            (1) is deemed to meet the licensing standards of the 
        Federal Power Act, including section 10(a) and the last 
        sentence of section 4(e) (16 U.S.C. 797(e)); and
            (2) shall constitute the sole and exclusive source for a 
        transferred hydroelectric project of authorizations and 
        requirements with respect to project operation.
    (e) Reservations.--Any power site reservation established by the 
President, the Department of the Interior, or pursuant to section 24 of 
the Federal Power Act (16 U.S.C. 818), or any other law, which exists 
on any lands, whether Federally or privately owned, that are included 
within the final project boundaries of a transferred hydroelectric 
project as approved by the Commission shall be vacated by operation of 
law upon issuance of a license for such project.
    (f) Relicensing.--All requirements of part I of the Federal Power 
Act and of any other Act applicable to the licensing of a hydroelectric 
project shall apply to a transferred hydroelectric project upon 
expiration of an original license issued under this section.
    (g) Definitions.--For purposes of this section:
            (1) The term ``Commission'' means the Federal Energy 
        Regulatory Commission.
            (2) The term ``existing terms of operation'' means any 
        applicable statutes, executive department regulations, orders, 
        rule curves and the like, memoranda of agreement, and 
        contractual arrangements pertaining to a transferred 
        hydroelectric project that were in effect as of the date of 
        enactment of this Act.
            (3) The term ``transferred hydroelectric project'' means 
        the facilities, land, and other assets sold or to be sold to a 
        transferee under this part and noticed by the Secretary, 
        including any such land, facilities, or assets that comprise a 
        project as defined in section 3(11) of the Federal Power Act 
        (16 U.S.C. 796(11)).

SEC. 9204. EVALUATION OF SALES OF SOUTHWESTERN POWER ADMINISTRATION AND 
                    WESTERN AREA POWER ADMINISTRATION FACILITIES.

    (a) Enabling Federal Studies.--Section 505 of the Energy and Water 
Development Appropriations Act of 1993 (Public Law 102-377) is hereby 
repealed.
    (b) Evaluation of Issues.--The Secretary of Energy and the 
Secretary of the Interior shall enter into arrangements with an 
experienced private sector firm to serve as advisor to the Secretary 
with respect to the sale of the facilities used to generate and 
transmit the electric power marketed by the Southwestern Power 
Administration and the Western Area Power Administration, including all 
dams, locks, reservoirs, transmission and related structures, 
equipment, facilities and all real and tangible property (including 
rights-of-way) which are used in connection with such power generation 
and transmission facilities. Prior to December 31, 1996, the advisor 
shall provide to the Secretary and the Congress a report identifying 
all recipients of water and power from such facilities, all contracts, 
debt obligations, equity interests, and other binding agreements which 
apply to the facilities concerned and to the sale of electric power 
from such facilities, all assets tangible and intangible, all 
applicable requirements relating to environmental mitigation, Indian 
trust responsibilities, land ownership or use rights relevant to the 
proposed transfers which could terminate based on a transfer out of 
Federal ownership, and navigational requirements which affect the 
operation of such facilities. Such evaluation shall also include an 
evaluation of the tax consequences, and the revenue impacts of such 
consequences for the United States, of possible arrangements for the 
sale of such facilities to potential transferees. The report shall also 
investigate alternative groupings of the facilities for purposes of 
sale in order to determine which groupings would be most desirable for 
purposes of effectuating such sales. Proposed transfers should be 
structured by watershed or by project unless the advisor can provide 
satisfactory information to the Secretary that another alternative 
should be used. Asset groupings shall specifically be designed to 
effectuate the maximum return for all of the assets.

SEC. 9205. BONNEVILLE POWER ADMINISTRATION APPROPRIATIONS REFINANCING.

    (a) Definitions.--For the purposes of this section:
            (1) The term ``Administrator'' means the Administrator of 
        the Bonneville Power Administration.
            (2) The term ``capital investment'' means a capitalized 
        cost funded by Federal appropriations that--
                    (A) is for a project, facility, or separable unit 
                or feature of a project or facility;
                    (B) is a cost for which the Administrator is 
                required by law to establish rates to repay to the 
                United States Treasury through the sale of electric 
                power, transmission, or other services;
                    (C) excludes a Federal irrigation investment; and
                    (D) excludes an investment financed by the current 
                revenues of the Administrator or by bonds issued and 
                sold, or authorized to be issued and sold, by the 
                Administrator under section 13 of the Federal Columbia 
                River Transmission System Act (16 U.S.C. 838(k)).
            (3) The term ``new capital investment'' means a capital 
        investment for a project, facility, or separable unit or 
        feature of a project or facility, placed in service after 
        September 30, 1995.
            (4) The term ``old capital investment'' means a capital 
        investment whose capitalized cost--
                    (A) was incurred, but not repaid, before October 1, 
                1995; and
                    (B) was for a project, facility, or separable unit 
                or feature of a project or facility, placed in service 
                before October 1, 1995.
            (5) The term ``repayment date'' means the end of the period 
        within which the Administrator's rates are to assure the 
        repayment of the principal amount of a capital investment.
            (6) The term ``Treasury rate'' means--
                    (A) for an old capital investment, a rate 
                determined by the Secretary of the Treasury, taking 
                into consideration prevailing market yields, during the 
                month preceding October 1, 1995, on outstanding 
                interest-bearing obligations of the United States with 
                periods to maturity comparable to the period between 
                October 1, 1995, and the repayment date for the old 
                capital investment; and
                    (B) for a new capital investment, a rate determined 
                by the Secretary of the Treasury, taking into 
                consideration prevailing market yields, during the 
                month preceding the beginning of the fiscal year in 
                which the related project, facility, or separable unit 
                or feature is placed in service, on outstanding 
                interest-bearing obligations of the United States with 
                periods to maturity comparable to the period between 
                the beginning of the fiscal year and the repayment date 
                for the new capital investment.
    (b) New Principal Amounts.--(1) Effective October 1, 1995, an old 
capital investment shall have a new principal amount that is the sum 
of--
            (A) the present value of the old payment amounts for the 
        old capital investment, calculated using a discount rate equal 
        to the Treasury rate for the old capital investment; and
            (B) an amount equal to $100,000,000 multiplied by a 
        fraction whose numerator is the principal amount of the old 
        payment amounts for the old capital investment and whose 
        denominator is the sum of the principal amounts of the old 
        payment amounts for all old capital investments.
    (2) With the approval of the Secretary of the Treasury based solely 
on consistency with this Act, the Administrator shall determine the new 
principal amounts under paragraph (1) and the assignment of interest 
rates to the new principal amounts under subsection (c).
    (3) For the purposes of this section, ``old payment amounts'' 
means, for an old capital investment, the annual interest and principal 
that the Administrator would have paid to the United States Treasury 
from October 1, 1995, if this section were not enacted, assuming that--
            (A) the principal were repaid--
                    (i) on the repayment date the Administrator 
                assigned before October 1, 1993, to the old capital 
                investment, or
                    (ii) with respect to an old capital investment for 
                which the Administrator has not assigned a repayment 
                date before October 1, 1993, on a repayment date the 
                Administrator shall assign to the old capital 
                investment in accordance with paragraph 10(d)(1) of the 
                version of Department of Energy Order RA 6120.2 in 
                effect on October 1, 1993; and
            (B) interest were paid--
                    (i) at the interest rate the Administrator assigned 
                before October 1, 1993, to the old capital investment, 
                or
                    (ii) with respect to an old capital investment for 
                which the Administrator has not assigned an interest 
                rate before October 1, 1993, at a rate determined by 
                the Secretary of the Treasury, taking into 
                consideration prevailing market yields, during the 
                month preceding the beginning of the fiscal year in 
                which the related project, facility, or separable unit 
                or feature is placed in service, on outstanding 
                interest-bearing obligations of the United States with 
                periods to maturity comparable to the period between 
                the beginning of the fiscal year and the repayment date 
                for the old capital investment.
    (c) Interest Rate for New Principal Amounts.--As of October 1, 
1995, the unpaid balance on the new principal amount established for an 
old capital investment under subsection (b) shall bear interest 
annually at the Treasury rate for the old capital investment until the 
earlier of the date that the new principal amount is repaid or the 
repayment date for the new principal amount.
    (d) Repayment Dates.--As of October 1, 1995, the repayment date for 
the new principal amount established for an old capital investment 
under subsection (b) shall be no earlier than the repayment date for 
the old capital investment assumed in subsection (b)(3)(A).
    (e) Prepayment Limitations.--During the period October 1, 1995, 
through September 30, 2000, the total new principal amounts of old 
capital investments, as established under subsection (b), that the 
Administrator may pay before their respective repayment dates shall not 
exceed $100,000,000.
    (f) Interest Rates for New Capital Investments During 
Construction.--(1) The principal amount of a new capital investment 
includes interest in each fiscal year of construction of the related 
project, facility, or separable unit or feature at a rate equal to the 
one-year rate for the fiscal year on the sum of--
            (A) construction expenditures that were made from the date 
        construction commenced through the end of the fiscal year, and
            (B) accrued interest during construction.
    (2) The Administrator shall not be required to pay, during 
construction of the project, facility, or separable unit or feature, 
the interest calculated, accrued, and capitalized under paragraph (1).
    (3) For the purposes of this subsection, ``one-year rate'' for a 
fiscal year means a rate determined by the Secretary of the Treasury, 
taking into consideration prevailing market yields, during the month 
preceding the beginning of the fiscal year, on outstanding interest-
bearing obligations of the United States with periods to maturity of 
approximately one year.
    (g) Interest Rates for New Capital Investments.--The unpaid balance 
on the principal amount of a new capital investment bears interest at 
the Treasury rate for the new capital investment from the date the 
related project, facility, or separable unit or feature is placed in 
service until the earlier of the date the new capital investment is 
repaid or the repayment date for the new capital investment.
    (h) Credits to Administrator's Payments to the United States 
Treasury.--The Confederated Tribe of the Colville Reservation Grand 
Coulee Dam Settlement Act (Public Law 103-436) is amended by striking 
section 6 and inserting the following:

``SEC. 6. CREDITS TO ADMINISTRATOR'S PAYMENTS TO THE UNITED STATES 
                    TREASURY.

    ``(a) In General.--So long as the Adminisatrator makes annual 
payments to the tribes under the settlement agreement, the 
Administrator shall apply against amounts otherwise payable by the 
Administrator to the United States Treasury a credit that reduces the 
Administrator's payment in the amount and for each fiscal year as 
follows: $15,250,000 in fiscal year 1996; $15,860,000 in fiscal year 
1997; $16,490,000 in fiscal year 1998; $17,150,000 in fiscal year 1999; 
$17,840,000 in fiscal year 2000; and $4,100,000 in each succeeding 
fiscal year.
    ``(b) Definitions.--For the purposes of this section--
            ``(1) The term `settlement agreement' means that settlement 
        agreement between the United States of America and the 
        Confederated Tribes of the Colville Reservation signed by the 
        Tribes on April 16, 1994, and by the United States of America 
        on April 21, 1994, which settlement agreement resolves claims 
        of the Tribes in Docket 181-D of the Indian Claims Commission, 
        which docket has been transferred to the United States Court of 
        Federal Claims; and
            ``(2) The term `Tribes' means the Confederated Tribes of 
        the Colville Reservation, a Federally recognized Indian 
        Tribe.''.
    (i) Contract Provisions.--In each contract of the Administrator 
that provides for the Administrator to sell electric power, 
transmission, or related services, and that is in effect after 
September 30, 1995, the Administrator shall offer to include, or as the 
case may be, shall offer to amend to include, provisions specifying 
that after September 30, 1995--
            (1) the Administrator shall establish rates and charges on 
        the basis that--
                    (A) the principal amount of an old capital 
                investment shall be no greater than the new principal 
                amount established under subsection (b);
                    (B) the interest rate applicable to the unpaid 
                balance of the new principal amount of an old capital 
                investment shall be no greater than the interest rate 
                established under subsection (c);
                    (C) any payment of principal of an old capital 
                investment shall reduce the outstanding principal 
                balance of the old capital investment in the amount of 
                the payment at the time the payment is tendered; and
                    (D) any payment of interest on the unpaid balance 
                of the new principal amount of an old capital 
                investment shall be a credit against the appropriate 
                interest account in the amount of the payment at the 
                time the payment is tendered;
            (2) apart from charges necessary to repay the new principal 
        amount of an old capital investment as established under 
        subsection (b), and to pay the interest on the principal amount 
        under subsection (c), no amount may be charged for return to 
        the United States Treasury as repayment for or return on an old 
        capital investment, whether by way of rate, rent, lease 
        payment, assessment, user charge, or any other fee;
            (3) amounts provided under section 1304 of title 31, United 
        States Code, shall be available to pay, and shall be the sole 
        source for payment of, a judgment against or settlement by the 
        Administrator or the United States on a claim for a breach of 
        the contract provisions required by this Act; and
            (4) the contract provisions specified in this Act shall 
        not--
                    (A) preclude the Administrator from recovering, 
                through rates or other means, any tax that is generally 
                imposed on electric utilities in the United States, or
                    (B) affect the Administrator's authority under 
                applicable law, including section 7(g) of the Pacific 
                Northwest Electric Power Planning and Conservation Act 
                (16 U.S.C. 839e(g)), to--
                            (i) allocate costs and benefits, including 
                        but not limited to fish and wildlife costs, to 
                        rates or resources, or
                            (ii) design rates.
    (j) Savings Provisions.--(1) This section does not affect the 
obligation of the Administrator to repay the principal associated with 
each capital investment, and to pay interest on the principal, only 
from the ``Administrator's net proceeds,'' as defined in section 13 of 
the Federal Columbia River Transmission System Act (16 U.S.C. 838k(b)).
    (2) Except as provided in subsection (e) of this section, this 
section does not affect the authority of the Administrator to pay all 
or a portion of the principal amount associated with a capital 
investment before the repayment date for the principal amount.
    (k) DOE Study.--(1) The Administrator shall undertake a study to 
determine the effect that increases in the rates for electric power 
sales made by the Administrator may have on the customer base of the 
Bonneville Power Administration. Such study shall identify other 
sources of electric power that may be available to customers of the 
Bonneville Power Administration and shall estimate the level at which 
higher rates for power sales by the Administration may result in the 
loss of customers by the Administration.
    (2) The Administrator shall undertake a study to determine the 
total prior costs incurred by the Bonneville Power Administration for 
compliance with the provisions of the Endangered Species Act of 1973 
and the total future costs anticipated to be incurred by the 
Administration for compliance with such provisions.
    (3) The Administrator shall submit the results of the studies 
undertaken under this section to the Congress within 180 days after the 
date of the enactment of this Act.

                          PART 2--RECLAMATION

SEC. 9211. PREPAYMENT OF CERTAIN REPAYMENT CONTRACTS BETWEEN THE UNITED 
                    STATES AND THE CENTRAL UTAH WATER CONSERVANCY 
                    DISTRICT.

    The second sentence of section 210 of the Central Utah Project 
Completion Act (106 Stat. 4624) is amended to read as follows: ``The 
Secretary of the Interior shall allow for prepayment of the repayment 
contract between the United States and the Central Utah Water 
Conservancy District dated December 28, 1965, and supplemented on 
November 26, 1985, providing for repayment of the municipal and 
industrial water delivery facilities for which repayment is provided 
pursuant to such contract, under such terms and conditions as the 
Secretary deems appropriate to protect the interest of the United 
States, which shall be similar to the terms and conditions contained in 
the supplemental contract that provided for the prepayment of the 
Jordan Aqueduct dated October 28, 1993. The District shall exercise its 
right to prepayment pursuant to this section by the end of fiscal year 
2002.''.

SEC. 9212. TREATMENT OF CITY OF FOLSOM AS A CENTRAL VALLEY PROJECT 
                    CONTRACTOR.

    For the purposes of being considered eligible to be a transferee of 
Central Valley Project water to be used for municipal and industrial 
purposes, the city of Folsom, California, shall be treated as a Central 
Valley Project contractor as of November 1, 1990.

SEC. 9213. SLY PARK.

    (a) Short Title.--This section may be cited as the ``Sly Park Unit 
Conveyance Act''.
    (b) Definitions.--For purposes of this section:
            (1) The term ``El Dorado Irrigation District'' or 
        ``District'' means a political subdivision of the State of 
        California duly organized, existing, and acting pursuant to the 
        laws thereof with its principal place of business in the city 
        of Placerville, El Dorado County, California.
            (2) The term ``Secretary'' means the Secretary of the 
        Interior.
            (3) The term ``Sly Park Unit'' means the Sly Park Dam and 
        Reservoir, Camp Creek Diversion Dam and Tunnel and conduits and 
        canals as authorized under the American River Act of October 
        14, 1949 (63 Stat. 852), together with all other facilities 
        owned by the United States including those used to convey and 
        store water delivered from Sly Park, as well as all recreation 
        facilities associated thereto.
    (c) Sale of the Sly Park Unit.--
            (1) In general.--The Secretary shall, within one year after 
        the date of enactment of this Act, sell and convey to the El 
        Dorado Irrigation District the Sly Park Unit. Within such one-
        year period, the Secretary shall also transfer and assign the 
        water rights relating to the Sly Park Unit held in trust by the 
        Secretary for diversion and storage under California State 
        permits numbered 2631, 5645A, 10473, and 10474 to the El Dorado 
        Irrigation District.
            (2) Sale price.--The sale price shall not exceed--
                    (A) the construction costs ($30,926,230), as 
                included in the accounts of the Secretary, plus
                    (B) interest on the construction costs allocated to 
                domestic use, at the authorized rate included in 
                enactment of the Act of October 14, 1949 (63 Stat. 
                852), up to an agreed upon date, less
                    (C) all revenues to date as collected under the 
                terms of the contract between the United States and the 
                El Dorado Irrigation District, estimated at $9,146,885.
            (3) Terms of payment.--The Secretary shall provide for a 
        payment of the purchase price under paragraph (2) on terms not 
        to exceed 20 years. The interest rate to be paid by the 
        District shall be the authorized rate included in the Act of 
        October 14, 1949 (63 Stat. 852). Section 213(c) of the 
        Reclamation Reform Act of 1982 (43 U.S.C. 390mm(c)) shall not 
        apply to the purchase of the Sly Park Unit under this section.
            (4) Conveyance.--Upon signing the agreement to carry out 
        the sale required by this section, the Secretary shall convey 
        and assign to the El Dorado Irrigation District all right, 
        title, and interest of the United States in and to the Sly Park 
        Unit.
            (5) No additional environmental impact.--The Congress 
        specifically finds that (A) the sale, conveyance and assignment 
        of the Sly Park Unit and water rights under this section 
        involves the transfer of the ownership and operation of an 
        existing ongoing water project, (B) the Sly Park Unit 
        operation, facilities and water rights have been, and after the 
        sale and transfer will continue to be, committed to maximum 
        reasonable and beneficial use for existing services, and (C) 
        the sale, conveyance and assignment of the Sly Park Unit and 
        water rights does not involve any additional growth or 
        expansion of the project or other environmental impacts. 
        Consequently, the sale, conveyance and assignment of the Sly 
        Park Unit and water rights shall not be subject to 
        environmental review pursuant to the National Environmental 
        Policy Act of 1969 (42 U.S.C. 4332) or endangered species 
        review or consultation pursuant to section 7 of the Endangered 
        Species Act of 1973 (16 U.S.C. 1536).

SEC. 9214. HETCH HETCHY DAM.

    Section 7 of the Act of December 19, 1913 (38 Stat. 242), is 
amended--
            (1) by striking ``$30,000'' in the first sentence and 
        inserting ``$8,000,000'', and
            (2) by amending the second and third sentences to read as 
        follows: ``These funds shall be placed in a separate fund by 
        the United States and, notwithstanding any other provision of 
        law, shall not be available for obligation or expenditure until 
        appropriated by the Congress. The highest priority use of the 
        funds shall be for annual operation of Yosemite National Park, 
        with the remainder of any funds to be used to fund operations 
        of other national parks in the State of California.''.

         Subtitle C--National Parks, Forests, and Public Lands

                       PART 1--CONCESSION REFORM

SEC. 9301. SHORT TITLE.

    This part may be cited as the ``Visitor Facilities and Services 
Enhancement Act of 1995''.

SEC. 9302. PURPOSE.

    The purpose of this part is to ensure that quality visitor 
facilities and services are provided by the Federal land management 
agencies (Forest Service, United States Fish and Wildlife Service, 
National Park Service, Bureau of Land Management, Bureau of Reclamation 
and United States Army Corps of Engineers). Each Federal land 
management agency shall implement a program to encourage appropriate 
development and operation of services and facilities for the 
accommodation of visitors. The program implemented by each such agency 
shall consist of actions which--
            (1) recognize the importance of the private sector in 
        providing a quality visitor experience on Federal lands by 
        encouraging private sector investments for facilities and 
        services on Federal lands under a fair and competitive process;
            (2) establish the basis for an effective relationship 
        between the land management agencies and private businesses 
        operating on public lands and waters in efforts to serve the 
        public and to protect the resources of these areas;
            (3) measure quality and value of services provided by 
        concessioners and provide incentives for consistent excellence.
            (4) ensure a fair return to the Federal Government; and
            (5) are consistent among the various agencies to the extent 
        practicable in order to increase efficiency of the Federal 
        Government and simplify requirements for concessioners.

SEC. 9303. DEFINITIONS.

    For the purposes of this part:
            (1) The term ``adjusted gross receipts'' means gross 
        receipts less revenue derived from goods and services provided 
        on other than Federal lands or conveyed to units of Government 
        for hunting or fishing licenses or for entrance or recreation 
        fees, or from such other exclusions as the Secretary concerned 
        might apply.
            (2) The term ``agency head'' means the head of an agency or 
        his or her designated representative.
            (3) The term ``concessioner'' means a person or other 
        entity acting under a concession authorization which provides 
        public services, facilities, or activities on Federal lands or 
        waters pursuant to a concession services agreement or 
        concession license.
            (4) The term ``concession license'' means a written 
        contract between the agency head and the concessioner which 
        sets forth the terms and conditions under which the 
        concessioner is authorized to provide recreation services or 
        activities on a limited basis as well as the rights and 
        obligations of the Federal Government.
            (5) The term ``concession service agreement'' means a 
        written contract between the agency head and the concessioner 
        which sets forth the terms and conditions under which the 
        concessioner is authorized to provide visitor services, 
        facilities, or activities as well as the rights and obligations 
        of the Federal Government.
            (6) The term ``gross receipts'' means revenue from goods or 
        services provided by concession services, facilities, or 
        activities on Federal lands and waters.
            (7) The term ``performance incentive'' means a credit based 
        on past performance toward the score awarded by the Secretary 
        to a concessioner's proposal submitted in response to a 
        solicitation for the reissuance of such contract.
            (8) The term ``proposal'' means the complete submission for 
        a concession service agreement offered in response to the 
        solicitation for such concession service agreement.
            (9) The term ``prospectus'' means a document or documents 
        issued by the Secretary concerned and included with a 
        solicitation which sets forth the minimum requirements for the 
        award of a concession service agreement.
            (10) The term ``Secretary concerned'' means--
                    (A) the Secretary of the Interior with respect to 
                the United States Fish and Wildlife Service, National 
                Park Service, Bureau of Land Management, and Bureau of 
                Reclamation;
                    (B) the Secretary of Agriculture with respect to 
                the Forest Service; and
                    (C) the Secretary of the Army with respect to the 
                United States Army Corps of Engineers.
            (11) The term ``solicitation'' means a request by the 
        Secretary concerned for proposals in response to a prospectus.

SEC. 9304. NATURE AND TYPES OF CONCESSION AUTHORIZATIONS.

    (a) In General.--The Secretary concerned may enter into concession 
authorizations, as follows:
            (1) Concession services agreement.--A concession service 
        agreement shall be entered into for all concessions where the 
        Secretary concerned makes a finding that the provision of 
        concession services is in the interest of the Federal 
        Government and issues either a competitive offering for 
        concession services, facilities or activities or a 
        noncompetitive offering for such services, facilities, or 
        activities based on a finding that due to special circumstances 
        it is not in the public interest of the United States to award 
        a concession service agreement on a competitive basis. Where 
        the concessioner develops or uses fixed facilities on Federal 
        lands, the Secretary concerned shall issue a lease.
            (2) Concession license.--Whenever the Secretary concerned 
        makes a finding that public enjoyment of Federal lands would be 
        enhanced through the provision of concession services and that 
        there exists no need to limit the number of concessioners 
        providing such services, he shall consider entering into a 
        concession license with a qualified concessioner. Activities 
        covered under a concession license would typically be one-time, 
        intermittent, or infrequently scheduled. The Secretary 
        concerned may not limit the number of concession licenses 
        issued for the same types of activities in a particular 
        geographic area. The Secretary concerned shall monitor such 
        concession licenses to determine whether issuance of a 
        concession service agreement would be a more appropriate 
        authorization.
            (3) Lands under multiple jurisdictions.--The Secretaries of 
        the Departments concerned shall designate an agency to be the 
        lead agency concerning concessions which conduct a single 
        operation on lands or waters under the jurisdiction of more 
        than one agency. Unless otherwise agreed to by each such 
        Secretary concerned, the lead agency shall be that agency under 
        whose jurisdiction the concessioner generates the greatest 
        amount of gross receipts. The agency so designated shall issue 
        a single authorization and collect a single fee under 
        paragraphs (1) and (2) for such operation. Such authorization 
        shall provide for use in a manner consistent with the plans and 
        policies for each agency.
    (b) Leases of Areas to States and State Third Party Agreement Not 
Covered.--This part does not apply to leases or licenses of entire 
areas to States or other political subdivisions or to any third party 
agreement issued by any such State or political subdivisions with 
respect to such entire area.

SEC. 9305. COMPETITIVE SELECTION PROCESS FOR CONCESSION SERVICE 
                    AGREEMENTS.

    (a) Award to Best Proposal.--The Secretary shall enter into, and 
reissue, a concession service agreement with the person whom the 
Secretary determines in accordance with this section submits the best 
proposal through a competitive process as defined in this section.
    (b) Solicitation and Prospectus.--The Secretary concerned shall 
prepare a solicitation and prospectus which describes the concession 
service opportunity and shall publish, in appropriate locations, 
announcements of the availability of the solicitation, prospectus, and 
the concession service opportunity. The solicitation shall include (but 
need not be limited to) the following:
            (1) A description of the services and facilities to be 
        provided by the concessioner.
            (2) The level of capital investment required by the 
        concessioner (if any).
            (3) Terms and conditions of the concession service 
        agreement.
            (4) Minimum facilities and services to be provided by the 
        Secretary to the concessioner and the public.
            (5) Minimum fees to the United States.
    (c) Factors and Minimum Standards in Determining Best Proposal.--
The prospectus shall assign a weight to each factor indentified therein 
related to the importance of such factor in the selection process. 
Points shall be awarded for each such factor, based on the relative 
strength of the proposal concerning that factor. In determining the 
best proposal, the Secretary concerned shall take into consideration 
(but shall not be limited to) the following, including whether the 
proposal meets the minimum requirements (if any) of the Secretary for 
each of the following:
            (1) Responsiveness to the prospectus.
            (2) Quality of visitor services taking into account the 
        nature of equipment and facilities to be provided.
            (3) Experience and performance in providing similar 
        services. This factor shall account for not less than 20 
        percent of the maximum points available under any prospectus. 
        Where the Secretary concerned determines it to be warranted to 
        provide for a high quality visitor experience, the prospectus 
        for a concession service agreement shall provide greater weight 
        to this factor based on such aspects of the concession service 
        agreement as scope or size, complexity, nature of technical 
        skills required, and site-specific knowledge of the area. The 
        similarity of the qualifying experience outlined in the 
        proposal to the nature of the services required under the 
        concession service agreement and the length of such qualifying 
        experience shall be the basis for awarding points for this 
        factor.
            (4) Record of resource protection (as appropriate for 
        services and activities with potential to impact natural or 
        cultural resources).
            (5) Financial capability.
            (6) Fees to the United States.
    (d) Selection Process.--The process for selecting the best proposal 
shall consist of the following:
            (1) First, the Secretary concerned shall identify those 
        proposals which meet the minimum standards (if any) for the 
        factors identified under subsection (c).
            (2) Second, the Secretary concerned shall evaluate all 
        proposals identified under paragraph (1), considering all 
        factors identified under subsection (c), as well as performance 
        incentives earned under section 9306(c) and renewal penalties 
        incurred under section 9306(d).
            (3) Third, the Secretary concerned shall offer the 
        concession service agreement to the best qualified applicant as 
        determined by the evaluation under paragraph (2).
    (e) Inapplicability of NEPA to Temporary Extensions and Similar 
Reissuance of Concessions Agreements.--The temporary extension of a 
concession authorization, or reissuance of a concession authorization 
to provide concession services similar in nature and amount to 
concession services provided under the previous authorization, is 
hereby determined to be a categorical exclusion as provided for under 
the National Environmental Policy Act of 1969 (42 U.S.C. 4331 et seq.).
    (f) Provision for Additional Related Services.--The Secretary 
concerned may modify the concession service agreement to allow 
concessioners to provide services closely related to such agreement, if 
the Secretary concerned determines that such changes would enhance the 
safety or enjoyment of visitors and would not unduly restrict the award 
of future concession service agreements.

SEC. 9306. CONCESSIONER EVALUATIONS.

    (a) In General.--The Secretary concerned shall develop a program of 
evaluations of the concessioners operating under a concession service 
agreement who are providing visitor services in areas under the 
jurisdiction of the Secretary. The evaluations shall be on an annual 
basis over the duration of the concession service agreement. In 
developing the evaluation program, the Secretary concerned shall seek 
broad public input from concessioners, State agencies, and other 
interested persons. The evaluation program shall--
            (1) include the four program areas of: quality of visitor 
        services provided; resource protection (as applicable); 
        financial performance; and compliance with concession service 
        agreement provisions and pertinent laws and regulations;
            (2) define three levels of performance--
                    (A) good, which shall be defined as a level of 
                performance which exceeds the requirements outlined in 
                the prospectus, but which is attainable;
                    (B) satisfactory, which shall be defined as meeting 
                the requirements as contained in the prospectus; and
                    (C) unsatisfactory, which shall be defined as not 
                meeting the requirements contained in the prospectus;
            (3) be based on criteria which--
                    (A) are objective, measurable, and attainable; and
                    (B) shall include as applicable general standards 
                for all concession operations, industry-specific 
                standards, and standards developed by the Secretary 
                concerned in consultation with the concessioner for 
                each concession service agreement;
            (4) be designed in such a manner that the annual evaluation 
        represents the overall performance of the concessioner without 
        undue weight to matters of limited importance; and
            (5) take into account factors beyond the control of the 
        concessioner, such as general market and other economic 
        fluctuations, as well as weather and other natural phenomena, 
        so that such factors may not be used as a justification for 
        denial of performance incentives.
    (b) Annual Evaluations.--
            (1) Requirements.--The Secretary concerned shall at least 
        semiannually review the performance of each concessioner and 
        shall assign an overall rating for each concessioner for each 
        year. The procedure for any performance evaluation shall be 
        provided to the concessioner prior to the beginning of any 
        evaluation period. Such procedure shall provide for adequate 
        notification of the concessioner prior to any on-site 
        evaluation and permit a representative of the concessioner to 
        observe the evaluation. The concessioner shall be entitled to a 
        complete explanation of any rating given. If the Secretary's 
        performance evaluation for any year results in an 
        unsatisfactory rating of the concessioner, the Secretary 
        concerned shall so notify the concessioner, in writing. Such 
        notification shall identify the nature of conditions which 
        require corrective action and shall provide the concessioner 
        with a list of corrective actions necessary to meet the 
        standards.
            (2) Suspension, revocation, and termination of 
        authorization.--The Secretary concerned may suspend, revoke, or 
        terminate a concession authorization if the concessioner fails 
        to correct the conditions identified by the Secretary within 
        the limitations established by the Secretary at the time notice 
        of the unsatisfactory rating is provided to the concessioner. 
        The Secretary may immediately suspend or revoke a concession 
        authorization where necessary to protect the public health or 
        welfare.
    (c) Performance incentives.--
            (1) In evaluating the performance of a concessioner, the 
        incumbent concessioner is entitled to a performance incentive 
        of--
                    (A) one percent of the maximum points available 
                under such evaluations for performance in each year in 
                which the concessioner's annual performance is rated 
                good, as specified in subsection (a)(2)(A), and
                    (B) a one-time three year merit term extension upon 
                a finding that a concessioner has been rated as good in 
                each annual performance evaluation through the term of 
                the concession service agreement.
            (2) A performance incentive awarded under paragraph (1)(A) 
        may not exceed 10 percent of the maximum points available under 
        such evaluations over the life of the concession service 
        agreement.
    (d) Renewal penalty.--In evaluating the performance of a 
concessioner, a concessioner shall be penalized one percent of the 
maximum points available under such evaluation for performance in each 
year in which the concessioner's annual performance is found to be 
unsatisfactory.

SEC. 9307. CAPITAL IMPROVEMENTS.

    (a) Private Sector Development.--It is the policy of the United 
States to encourage the private sector to develop, own, and maintain to 
the extent possible such public recreation facilities which would 
enhance public use and enjoyment of Federal lands as are contained in 
approved plans developed by the Secretary concerned. Under the terms of 
this part, concessioners may only construct or finance construction 
under terms of section 9312 such public facilities on Federal lands as 
are to be used by the concessioner under the terms of their concession 
service agreement or facilities which are necessary for the 
concessioner to administer such public facilities on Federal lands.
    (b) Investment Interest.--
            (1) In general.--A concessioner, who is required or 
        authorized under a concession service agreement pursuant to 
        this part to acquire or construct any structure, improvement, 
        or fixture pursuant to such agreement on Federal lands shall 
        have an investment interest therein, to the extent provided by 
        the agreement and this part. Such investment interest shall not 
        be extinguished by the expiration of such agreement. Such 
        investment interest may be assigned, transferred, encumbered or 
        relinquished.
            (2) Limitation.--Such investment interest shall not be 
        construed to include or imply any authority, privilege, or 
        right to operate or engage in any business or other activity, 
        and the use of any improvement in which the concessioner has an 
        investment interest shall be wholly subject to the applicable 
        provisions of the concession service agreement and of laws and 
        regulations relating to the area.
            (3) Federal property.--The agreement shall specify which 
        new improvements required under terms of the concession service 
        agreement, if any, shall become the property of the Federal 
        Government at the end of the agreement. No concession service 
        agreement shall provide for a concessioner to obtain an 
        investment interest in any building which is wholly owned by 
        the Federal Government. Title to the land on which such 
        structure, improvement, or fixture is placed shall remain in 
        the United States.
    (c) Sale of Assets.--If the existing concessioner is not selected 
as the best qualified applicant at the time of reissuance of a 
concession service agreement, the Secretary concerned shall require the 
new concessioner to buy the investment interest of the existing 
concessioner.
    (d) Closure of Concessioner Facilities.--In the event of a decision 
by the Secretary concerned, that the public interest, by reason of 
public and safety considerations or for other reasons beyond the 
control of the concessioner, requires the discontinuation or closure of 
facilities in which the concessioner has an investment interest, the 
Secretary shall compensate the concessioner in the amount equal to the 
value of the investment interest.
    (e) Determination of Value of Investment Interest.--For purposes of 
this part, the investment interest of any capital improvement at the 
end of the concession service agreement period is the actual cost of 
construction of such capital improvement adjusted from the completion 
of such construction by changes in the Consumer Price Index (selected 
in the same manner as such Index is selected under section 9311(c)(2)) 
less depreciation evidenced by the condition and prospective 
serviceability in comparison with a new unit of like kind, but not to 
exceed fair market value. Such value shall be determined by appraisal 
and included in any prospectus.

SEC. 9308. DURATION OF CONCESSION AUTHORIZATION.

    (a) Concession Service Agreement.--The standard term of a 
concession service agreement shall be ten years. The Secretary 
concerned may issue a concession service agreement for less than ten 
years if he determines (in his discretion) that the average annual 
gross receipts over the life of the concession service agreement would 
be less than $100,000. The Secretary concerned may not issue a 
concession service agreement for less than five years. The Secretary 
concerned shall issue a concession service agreement for longer than 
ten years if the Secretary determines (in his discretion) that such 
longer term is in the public interest or necessary due to the extent of 
investment and associated financing requirements and to meet the 
obligations assumed. The term for a concession service agreement may 
not exceed 30 years.
    (b) Concession License.--The term for a concession license may not 
exceed two years.
    (c) Temporary Extension.--The Secretary may agree to temporary 
extensions of concession service agreements for up to two years on a 
noncompetitive basis to avoid interruption of services to the public.

SEC. 9309. RATES AND CHARGES TO THE PUBLIC.

    In general, rates and charges to the public shall be set by the 
concessioner. For concession service agreements only, a concessioner's 
rates and charges to the public shall be subject to the approval of the 
Secretary concerned in those instances where the Secretary determines 
that sufficient competition for such facilities and services does not 
exist within or in close proximity to the area in which the 
concessioner operates. In those instances, the concession service 
agreement shall state that the reasonableness of the concessioner's 
rates and charges to the public shall be reviewed and approved by the 
Secretary concerned primarily by comparison with those rates and 
charges for facilities and services of comparable character under 
similar conditions, with due consideration for length of season, 
seasonal variations, average percentage of occupancy, accessibility, 
availability and costs of labor and materials, type of patronage, and 
other factors deemed significant by the Secretary concerned. Such 
review shall be completed within 90 days of receipt of all necessary 
information, or the requirement for the Secretary's approval shall be 
waived and such rates and charges as proposed by the concessioner 
considered to be approved for immediate use.

SEC. 9310. TRANSFERABILITY OF CONCESSION AUTHORIZATIONS.

    (a) Concession Service Agreements.--
            (1) Approval required.--A concession service agreement is 
        transferable or assignable only upon the approval of the 
        Secretary concerned, which approval may not be unreasonably 
        withheld or delayed. The Secretary may not approve any such 
        transfer or assignment if the Secretary determines that the 
        prospective concessioner is or is likely to be unable to 
        completely satisfy all of the material requirements, terms, and 
        conditions of the agreement or that the terms of the transfer 
        or assignment would preclude providing appropriate facilities 
        or services to the public at reasonable rates.
            (2) Consideration period.--If the Secretary fails to 
        approve or disapprove a transfer or assignment under paragraph 
        (1) within 90 days after the date on which the Secretary 
        receives all necessary information requested by the Secretary 
        with respect to such transfer, the transfer or assignment shall 
        be deemed approved.
            (3) No modification of terms and conditions.--The terms and 
        conditions of the concessions service agreement shall not be 
        subject to modification by reason of any transfer or assignment 
        under this section.
            (4) Performance incentive.--Upon approval of the sale or 
        transfer, the prospective concessioner shall be entitled to the 
        benefit of performance incentives earned by the previous 
        concessioner.
    (b) Concession License.--A concession license may not be 
transferred.

SEC. 9311. FEES CHARGED BY THE UNITED STATES FOR CONCESSION 
                    AUTHORIZATIONS.

    (a) In General.--The Secretary concerned shall charge a fee for the 
privilege of providing concession services pursuant to this part. The 
fee for any concession service agreement may include any of the 
following:
            (1) An annual cash payment for the privilege of providing 
        concession services.
            (2) The amount required for capital improvements required 
        pursuant to section 9307(a).
            (3) Fees for rental or lease of Government-owned facilities 
        or lands occupied by the concessioner.
            (4) Expenditures for maintenance of or improvements to 
        Government-owned facilities occupied by the concessioner.
    (b) Establishment of Amount.--
            (1) Minimum acceptable fee.--The Secretary concerned shall 
        establish a minimum fee for each applicable category specified 
        in paragraphs (1) through (4) of subsection (a) which is 
        acceptable to the Secretary under this section and shall 
        include the minimum fee in the prospectus under section 9305. 
        This fee shall be based on historical data, where available, as 
        well as industry-specific and other market data available to 
        the Secretary concerned.
            (2) Final fee.--Except as provided by paragraph (3), the 
        final fee shall be the amount bid by the selected applicant 
        under section 9305.
            (3) Substantially similar services in a specific geographic 
        area.--Where the Secretary concerned simultaneously offers 
        authorizations for more than one river runner, outfitter, or 
        guide concession operation to provide substantially similar 
        services in a defined geographic area, the concession fee for 
        all such concessioners shall be specified by the Secretary 
        concerned in the prospectus. The Secretary concerned shall base 
        the fee on historical data, where available, as well as on 
        industry-specific and other market data available to the 
        Secretary concerned or may establish a charge per user day.
    (c) Adjustment of Fees.--
            (1) In general.--The amount of any fee for the term of the 
        concession service agreement shall be set at the beginning of 
        the concession authorization and may only be modified on the 
        basis of inflation, if the annual payment is not determined by 
        a percentage of adjusted gross receipts (as measured by changes 
        in the Consumer Price Index), to reflect substantial changes 
        from the conditions specified in the prospectus, or in the 
        event of an unforeseen disaster.
            (2) CPI.--For the purposes of adjustments for inflation 
        under paragraph (1), the Federal agencies shall select a 
        Consumer Price Index published by the Bureau of Labor 
        Statistics and shall use such index in a consistent manner.
    (d) Concession License Fee.--The fee for a concession license shall 
at least cover the program administrative costs and may not be changed 
over the term of the license.

SEC. 9312. DISPOSITION OF FEES.

    (a) Concession Improvement Account.--
            (1) In general.--The Secretary concerned shall, whenever 
        the concession service agreement requires or authorizes the 
        concessioner to make capital improvements or occupy Government-
        owned facilities, require the concessioner to establish a 
        concession improvement account. The concessioner shall deposit 
        into this account--
                    (A) all funds for capital improvements as specified 
                in the concession service agreement;
                    (B) all funds for maintenance of or improvements to 
                Government-owned facilities occupied by the 
                concessioner; and
                    (C) all amounts received from the Secretary 
                concerned pursuant to subsection (b).
            (2) Terms and conditions.--The account shall be maintained 
        by the concessioner in an interest bearing account in a 
        Federally insured financial institution. The concessioner shall 
        maintain the account separately from any other funds or 
        accounts and shall not commingle the monies in the account with 
        any other moneys. The Secretary concerned may establish such 
        other terms, conditions, or requirements as the Secretary 
        determines to be necessary to ensure the financial integrity of 
        the account.
            (3) Disbursements.--The concessioner shall make 
        disbursements from the account for improvements and other 
        activities, only as specified in the concession service 
        agreement and subsection (b)(2)(C).
            (4) Records.--The concessioner shall maintain proper 
        records for all disbursements made from the account. Such 
        records shall include (but not be limited to) invoices, bank 
        statements, canceled checks, and such other information as the 
        Secretary concerned determines to be necessary.
            (5) Annual financial statement.--The concessioner shall 
        annually submit to the Secretary concerned a statement 
        reflecting total activity in the account for the preceding 
        financial year. The statement shall reflect monthly deposits, 
        expenditures by project, interest earned, and such other 
        information as the Secretary concerned requires.
            (6) Transfer of remaining balance.--Upon the termination of 
        a concession authorization, or upon the transfer of a 
        concession service agreement, any remaining balance in the 
        account shall be transferred by the concessioner to the 
        successor concessioner, to be used solely as set forth in this 
        subsection. In the event there is no successor concessioner, 
        the account balance shall be deposited in the Treasury as 
        miscellaneous receipts.
    (b) Amounts Received Relating to Privilege of Providing Concession 
Services and Rental of Government-owned Facilities.--
            (1) Deposit into treasury.--The Secretary concerned shall 
        deposit into the Treasury of the United States as miscellaneous 
        receipts amounts received for a fiscal year for the privilege 
        of providing concession services and the rental of Government-
        owned facilities up to the amount specified in the table in 
        paragraph (3) for the National Park Service for that fiscal 
        year. For the other agencies covered under this part, the 
        Secretary concerned shall develop a schedule of anticipated 
        receipts to be deposited to the Treasury and submit such 
        schedule to the appropriate Congressional committees within 18 
        months of the date of enactment of this Act. Nothing in this 
        part shall be construed to modify any provision of law relating 
        to sharing of Federal receipts with any other level of 
        Government.
            (2) Deposit into concession improvement accounts.--(A) 
        Amounts received by the Secretary concerned for a fiscal year 
        for the privilege of providing concession services and the use 
        of Government-owned facilities which exceed the amount 
        specified in the table in paragraph (3) for that fiscal year 
        shall be available for deposit in the succeeding fiscal year 
        into concession improvement accounts.
            (B) Of the amounts available for deposit into concession 
        improvement accounts, the Secretary shall make available to 
        each concessioner a percentage of such excess amounts which 
        bears the same ratio as the amount paid by the concessioner to 
        the Secretary concerned for a fiscal year for the privilege of 
        providing concession services and the use of Government-owned 
        facilities bears to the total amount paid to the Secretary 
        concerned by all concessioners for that fiscal year for such 
        privilege on an agency-wide basis.
            (C) Amounts made available to a concessioner under this 
        paragraph may be used only for expenditures on visitor services 
        and facilities at the area at which the funds were generated.
            (3) Deposit into concession improvement accounts.--The 
        table referred to in paragraph (2), expressed by fiscal year on 
        an agency basis, is as follows:

                         National Park Service

                Fiscal year:
                                                               Amount: 
                        1997.........................      $15,800,000 
                        1998.........................      $21,100,000 
                        1999.........................      $26,700,000 
                        2000.........................      $32,300,000 
                        2001.........................      $38,200,000 
                        2002.........................      $44,400,000.

    (c) Audit Requirement.--Beginning with fiscal year 1998, the 
Inspector General of the Department concerned shall conduct a biennial 
audit of concession fees generated pursuant to this part. The Inspector 
General shall make a determination as to whether concession fees are 
being collected and expended in accordance with this part and shall 
submit copies of each audit to the Committee on Resources of the House 
of Representatives and the Committee on Energy and Natural Resources of 
the Senate.

SEC. 9313. DISPUTE RESOLUTION.

    (a) Board of Contract Appeals.--The Board of Contract Appeals 
within each Department shall adjudicate disputes between the Federal 
Government and concessioners arising under this part, including 
disputes regarding the revocation, suspension, or termination of a 
concession authorization, transfers of concession service agreements, 
and performance evaluations of concessions. Such disputes shall be 
subject to the Contract Disputes Act of 1978 (41 U.S.C. 601 et seq.). 
The expiration of a concession authorization shall not be subject to 
appeal to the Board.
    (b) Administrative Review.--Appeals of decisions may be taken to 
the Board of Contract Appeals after one level of review of decisions 
made within an agency.
    (c) Expedited Procedure.--Appeals of decisions to suspend, revoke, 
or terminate a concession authorization shall be considered under an 
expedited procedure, as provided by the Secretary concerned by 
regulation.
    (d) Judicial Review.--
            (1) In general.--A person may seek judicial review of 
        decisions made by the Board. Such review shall be conducted by 
        the court with jurisdiction on a de novo basis.
            (2) Concession service agreements.--Judicial review of 
        decisions rendered by the Board regarding concession service 
        agreements shall be to the United States Court of Federal 
        Claims in accordance with section 1491 of title 28, United 
        States Code (commonly referred to as the ``Tucker Act'').
            (3) Concession licenses.--Judicial review of decisions 
        rendered by the Board regarding concession licenses shall be to 
        the appropriate Federal District Court.
    (d) Inapplicability of Certain Provisions.--Disputes arising under 
this part shall not be subject to the jurisdiction of the General 
Accounting Office to review bid protests under the Competition in 
Contracting Act of 1984.

SEC. 9314. RECORDKEEPING.

    (a) Maintenance and Access.--Each concessioner shall keep such 
records as the Secretary concerned may prescribe to enable the 
Secretary to determine that all terms of the concession authorization 
have been and are being faithfully performed, and the Secretary and his 
duly authorized representatives shall, for the purpose of audit and 
examination, have access at reasonable times and locations to such 
records and to other books, documents, and papers of the concessioner 
pertinent to the concession authorization and all the terms and 
conditions thereof.
    (b) Access by Comptroller General.--The Comptroller General of the 
United States or any of his duly authorized representatives shall, 
until the expiration of five calendar years after the close of the 
business year of each concessioner have access to and the right to 
examine any pertinent books, documents, papers, and records of the 
concessioner related to the concession authorization involved.

SEC. 9315. APPLICATION OF GENERAL GOVERNMENTAL ACQUISITION 
                    REQUIREMENTS.

    The following laws and regulations shall not apply to concession 
service agreements and concession licenses under this part:
            (1) Title III of the Federal Property and Administrative 
        Services Act of 1949 (41 U.S.C. 251-266).
            (2) The Office of Federal Procurement Policy Act (41 U.S.C. 
        401 et seq.).
            (3) The Federal Acquisition Streamlining Act of 1994 
        (Public Law 103-355).
            (4) The Brooks Automatic Data Processing Act (40 U.S.C. 
        759).
            (5) Chapters 137 and 141 of title 10, United States Code.
            (6) The Federal Acquisition Regulation and any laws not 
        listed in paragraphs (1) through (5) providing authority to 
        promulgate regulations in the Federal Acquisition Regulation.
            (7) The Act of June 20, 1936 (20 U.S.C. 107; commonly 
        referred to as the ``Randolph-Sheppard Act'') and the Service 
        Contract Act of 1965 (41 U.S.C. 351 et seq.).

SEC. 9316. RULES OF CONSTRUCTION.

    Concession programs of an agency on Federal lands and waters 
subject to this part shall be fully consistent with the agency's 
mission and laws applicable to the agency. Nothing in this part shall 
be construed as limiting or restricting any right, title, or interest 
of the United States in any land or resources.

SEC. 9317. REGULATIONS.

    (a) In General.--Pursuant to enactment of this part, no new 
concession authorization may be issued, nor may any existing concession 
authorization remain in effect after two years after the date of the 
enactment of this Act, unless regulations fully implementing this part 
are in effect. During such two-year period, the Secretary may only 
extend an existing concession authorization for a period ending at the 
end of such two-year period. Such extensions shall be made in 
accordance with the applicable provisions of law specified in section 
9318, as such provisions were in effect on the day before the date of 
the enactment of this Act. The Secretary of the Interior, Secretary of 
Agriculture, and Secretary of the Army shall develop a single set of 
regulations which specify a uniform set of recordkeeping requirements 
for all concessioners with respect to implementation of this part.
    (b) Qualifications of Agency Personnel Assigned Concession 
Management Duties.--The Secretary, by regulation under subsection (a) 
and taking into account the provisions of this part, shall specify the 
minimum training and qualifications required for agency personnel 
assigned predominantly to concession management duties, including (but 
not limited to) competency in business management, public health and 
safety, and the delivery of quality customer services.

SEC. 9318. RELATIONSHIP TO OTHER EXISTING LAWS.

    (a) Repeals.--
            (1) The Act entitled ``An Act relating to the establishment 
        of concession policies in the areas administered by the 
        National Park Service and for other purposes'' (16 U.S.C. 20-
        20g) approved October 9, 1965, is repealed.
            (2) The last paragraph under the heading ``forest service'' 
        in the Act of March 4, 1915 (38 Stat. 1101), as amended by the 
        Act of July 28, 1956 (chap. 771; 70 Stat. 708) (16 U.S.C. 497), 
        is repealed.
            (3) Section 7 of the Act of April 24, 1950 (16 U.S.C. 580d) 
        is repealed.
    (b) Superseded Provisions.--The provisions of this part shall 
supersede the provisions of the following Acts as they pertain to 
concessions management:
            (1) The Federal Land Policy and Management Act of 1976 
        (Oct. 21, 1976).
            (2) Public Law 87-714 (16 U.S.C. 460k et seq.; commonly 
        known as the ``Refuge Recreation Act'').
            (3) The National Wildlife Refuge System Administration Act 
        of 1966 (16 U.S.C. 668dd).
    (c) Conforming Amendment.--The fourth sentence of section 3 of the 
Act of August 25, 1916 (16 U.S.C. 3; 39 Stat. 535), is amended by 
striking all through ``no natural'' and inserting in lieu thereof ``No 
natural''.
    (d) Modified Provisions.--The second sentence of section 4 of the 
Act entitled ``An Act authorizing the construction of certain public 
works on rivers and harbors for flood control, and for other purposes'' 
(16 U.S.C. 460d) is amended by inserting ``, except for commercial 
concessions purposes'' the first place it appears after ``public 
interest''.
    (e) Savings.--
            (1) In general.--The repeal of any provision, the 
        superseding of any provision, and the amendment of any 
        provision, of an Act referred to in subsections (a), (b), or 
        (c) shall not affect the validity of any authorizations entered 
        into under any such Act. The provisions of this part shall 
        apply to any such authorizations, except to the extent such 
        provisions are inconsistent with the express terms and 
        conditions of such authorizations.
            (2) Right of renewal.--The right of renewal explicitly 
        provided for by any concession contract under any such 
        provision shall be preserved for a single renewal of a contract 
        following the enactment of, or concession authorization under, 
        this part.
            (3) Value of capital improvements or possessory interest.--
        Nothing in this part shall be construed to change the value of 
        existing capital improvements or possessory interest as 
        identified in concession contracts entered into before the 
        enactment of this Act.
            (4) ANILCA.--Nothing in this part shall be construed to 
        amend, supersede or otherwise affect any provision of the 
        Alaska National Interest Lands Conservation Act (16 U.S.C. 3101 
        et seq.) relating to revenue-producing visitor services.
            (5) Ski area permits.--No provision of this part shall 
        apply to any ski area permittee operating on lands administered 
        by the Forest Service.
            (6) Procedures for considering existing concessioners in 
        reissuance of contracts.--In the case of any concession 
        contract which has expired prior to the date of the enactment 
        of this Act, or within five years after the date of the 
        enactment of this Act, the incumbent concessioner shall be 
        entitled to a one-time bonus of five percent of the maximum 
        points available in the reissuance of a previous concession 
        authorization. For any concession contract entered into prior 
        to the date of enactment of this Act, which is projected to 
        terminate five years or later after the enactment of this Act, 
        any concessioner shall be entitled to a performance incentive 
        as outlined in this part. The concessioner shall be entitled to 
        an evaluation for the purposes of section 9306 of good for each 
        year in which the Secretary concerned does not complete an 
        evaluation as provided for in this part.

                   PART 2--NATIONAL FOREST SKI AREAS

SEC. 9321. PRIVATIZATION OF FOREST SERVICE SKI AREAS.

    (a) Authorization To Sell.--
            (1) In general.--Not later than five years after the date 
        of enactment of this part, the Secretary of Agriculture shall 
        offer to sell not less than 40 ski areas to the qualifying ski 
        area operator. Any such sale shall provide for continuation of 
        public access for diverse recreational uses. The Secretary 
        shall offer such areas for sale only after consultation with 
        State and local governments. Any such sale shall be at fair 
        market value and, subject to valid existing rights, shall 
        transfer all right, title, and interest of the United States in 
        and to the lands. In any such sale, the Secretary shall 
        establish the minimum acceptable bid based on the appraised 
        fair market value of such lands.
            (2) Qualifying lands.--For the purposes of subsection (a), 
        lands are qualifying concession lands if such lands are--
                    (A) subject to a lease on the date of the enactment 
                of this Act for use as a ski area with improvements 
                with a fair market value greater than $2,000,000; and
                    (B) located either adjacent to the boundary of the 
                Federal lands or adjacent to other significant private 
                inholdings.
    (b) Appraisal.--
            (1) In general.--The Secretary shall provide for an 
        independent appraisal of the lands and interests therein to be 
        transferred pursuant to subsection (a). The appraiser shall--
                    (A) utilize nationally recognized appraisal 
                standards, including to the extent appropriate the 
                uniform appraisal standards for Federal land 
                acquisition; and
                    (B) not include the value of any improvement placed 
                on the lands by the concessioner.
            (2) Appraisal report.--The appraiser shall submit a 
        detailed report to the Secretary.
    (c) Additional Lands.--In addition to the national forest ski area, 
the Secretary may transfer by sale or exchange additional National 
Forest System lands for the purpose of adding such lands to and 
operating them as part of a ski area sold under subsection (a). The 
transfer of additional lands under this subsection shall be in 
accordance with this part and the laws generally applicable to the 
National Forest System.
    (d) Use of Proceeds by the Appropriate Secretary.--The Secretary 
may retain 50 percent of the funds generated through sales under this 
section to acquire other high priority lands identified for acquisition 
in any forest land and resource management plan. The remaining 50 
percent of such amount shall be deposited in the Treasury as 
miscellaneous receipts.

SEC. 9322. SKI AREA PERMIT FEES AND WITHDRAWAL OF SKI AREAS FROM 
                    OPERATION OF MINING LAWS.

    The National Forest Ski Area Permit Act of 1986 (16 U.S.C. 497b) is 
amended by adding at the end the following new sections:

``SEC. 4. SKI AREA PERMIT FEES.

    ``(a) Ski Area Permit Fee.--
            ``(1) In general.--Except as provided by paragraph (2), 
        after the date of the enactment of this section, the fee for 
        all ski area permits on National Forest System lands shall be 
        calculated, charged, and paid only as set forth in subsection 
        (b).
            ``(2) Exception.--Paragraph (1) does not apply to any ski 
        area where the existing permit in effect on the date of 
        enactment of this section specifies a different method to 
        calculate the fee. In any such situation the terms of such 
        permit shall prevail, unless the permit holder notifies the 
        Forest Service that the permit holder agrees to adopt the 
        method of fee calculation specified in this section. The Forest 
        Service should encourage such permit holders to consider 
        adopting the new method of fee calculation in order to reduce 
        its administrative costs.
    ``(b) Method of Calculation.--
            ``(1) Determination of adjusted gross revenue subject to 
        fee.--The Secretary of Agriculture shall calculate the ski area 
        permit fee to be charged a ski area permittee by first 
        determining the permittee's adjusted gross revenue to be 
        subject to the permit fee. The permittee's adjusted gross 
        revenue is equal to the sum of the following:
                    ``(A) The permittee's gross revenues from alpine 
                lift ticket and alpine season pass sales plus revenue 
                from alpine ski school operations, with such total 
                multiplied by the permittee's slope transport feet 
                percentage on National Forest System lands.
                    ``(B) The permittee's gross revenues from nordic 
                ski use pass sales and nordic ski school operations, 
                with such total multiplied by the permittee's 
                percentage of nordic trails on National Forest System 
                lands.
                    ``(C) The permittee's gross revenues from ancillary 
                facilities physically located on National Forest System 
                lands, including all permittee or subpermittee lodging, 
                food service, rental shops, parking, and other 
                ancillary operations.
            ``(2) Determination of ski area permit fee.--The Secretary 
        shall determine the ski area permit fee to be charged a ski 
        area permittee by multiplying adjusted gross revenue determined 
        under paragraph (1) for the permittee by the following 
        percentages for each revenue bracket and adding the total for 
        each revenue bracket:
                    ``(A) 1.5 percent of all adjusted gross revenue 
                below $3,000,000.
                    ``(B) 2.5 percent for adjusted gross revenue 
                between $3,000,000 and $15,000,000.
                    ``(C) 2.75 percent for adjusted gross revenue 
                between $15,000,000 and $50,000,000.
                    ``(D) 4.0 percent for the amount of adjusted gross 
                revenue that exceeds $50,000,000.
            ``(3) Slope transport feet percentage.--In cases where ski 
        areas are only partially located on National Forest System 
        lands, the slope transport feet percentage on national forest 
        land referred to in paragraph (1) shall be calculated as 
        generally described in the Forest Service Manual in effect as 
        of January 1, 1992.
            ``(4) Annual adjustment of adjusted gross revenue.--In 
        order to insure that the ski area permit fee set forth in this 
        subsection remains fair and equitable to both the United States 
        and ski area permittees, the Secretary shall adjust, on an 
        annual basis, the adjusted gross revenue figures for each 
        revenue bracket in subparagraphs (A) through (D) of paragraph 
        (2) by the percent increase or decrease in the national 
        Consumer Price Index for the preceding calendar year.
    ``(c) Minimum Fee.--In cases where an area of National Forest 
System land is under a ski area permit but the permittee does not have 
revenue or sales qualifying for fee payment pursuant to subsection (a), 
the permittee shall pay an annual minimum fee of $2 for each acre of 
National Forest System land under permit. Rental fees imposed under 
this subsection shall be paid at the time specified in subsection (d).
    ``(d) Time for Payment.--The fee set forth in subsection (b) shall 
be due on June 1 of each year and shall be paid or prepaid by the 
permittee on a monthly, quarterly, annual, or other schedule as 
determined appropriate by the Secretary in consultation with the 
permittee. It is the intention of Congress that unless mutually agreed 
otherwise by the Secretary and the permittee, the payment or prepayment 
schedule shall conform to the permittee's schedule in effect prior to 
the enactment of this section. To simplify bookkeeping and fee 
calculation burdens on the permittee and the Forest Service, the 
Secretary shall each year provide the permittee with a standardized 
form and worksheets (including annual fee calculations brackets and 
rates) to be utilized for fee calculation and submitted with the fee 
payment. Information provided on such forms shall be compiled by the 
Secretary annually and kept in the Office of the Chief, United States 
Forest Service.
    ``(e) Definitions.--To simplify bookkeeping and administrative 
burdens on ski area permittees and the Forest Service, as used in this 
section, the terms `revenue' and `sales' mean actual income from sales. 
Such terms do not include sales of operating equipment, refunds, rent 
paid to the permittee by sublessees, sponsor contributions to special 
events or any amounts attributable to employee gratuities, discounts, 
complimentary lift tickets, or other goods or services (except for 
bartered goods) for which the permittee does not receive money.
    ``(f) Effective Date for Fees.--The ski area permit fees as 
provided under this section shall become effective on July 1, 1996, and 
cover receipts retroactive to July 1, 1995. If a ski area permittee has 
paid fees for the 12-month period ending on June 30, 1996, under the 
graduated rate fee system formula in effect prior to the date of the 
enactment of this section, such fees shall be credited toward the new 
ski area permit fee due for that period under this section.
    ``(g) Report on Fair Market Value.--No later than five years after 
the date of enactment of this section and every 10 years thereafter, 
the Secretary shall submit to the Committee on Energy and Natural 
Resources of the United States Senate and the Committees of Agriculture 
and Resources of the United States House of Representatives a report 
analyzing whether the ski area permit fee system legislated by this 
section is returning a fair market value rental to the United States 
together with any recommendations the Secretary may have for 
modifications in the system.
    ``(h) Transition Period.--Where the new fee provided for in this 
section results in an increase in permit fee greater than one percent 
of the permittee's adjusted gross revenue (as defined in subsection 
(b)(1)), the new fee shall be phased in over a three year period in a 
manner providing for increases of approximately equal increments.
    ``(i) Applicability of NEPA to Reissuance of Ski Area Permits.--The 
reissuance of a ski area permit to provide activities similar in nature 
and amount to the activities provided under the previous permit is 
hereby determined to be a categorical exclusion as provided for under 
the National Environmental Policy Act of 1969 (42 U.S.C. 4331 et seq.).

``SEC. 5. WITHDRAWAL OF SKI AREAS FROM OPERATION OF MINING LAWS.

    ``Subject to valid existing rights, all lands located within the 
boundaries of ski area permits issued prior to, on, or after the date 
of the enactment of this section pursuant to the authority of the Act 
of March 4, 1915 (16 U.S.C. 497), the Act of June 4, 1897 (16 U.S.C. 
473 et seq.), or section 3 of this Act are hereby and henceforth 
automatically withdrawn from all forms of appropriation under the 
mining laws and from disposition under all laws pertaining to mineral 
and geothermal leasing. Such withdrawal shall continue for the full 
term of the permit and any modification, reissuance, or renewal of the 
permit. Such withdrawal shall be canceled automatically upon expiration 
or other termination of the permit unless, at the request of the 
Secretary of Agriculture, the Secretary of the Interior determines to 
continue the withdrawal. Upon cancellation of the withdrawal, the land 
shall be automatically restored to all appropriation not otherwise 
restricted under the public land laws.''.

                   PART 3--DOMESTIC LIVESTOCK GRAZING

SEC. 9331. APPLICABLE REGULATIONS.

    (a) BLM Lands.--Except as otherwise provided by this part, grazing 
of domestic livestock on lands administered by the Bureau of Land 
Management shall be in accordance with part 1780 and part 4100 of title 
43, Code of Federal Regulations, as in effect on January 1, 1995.
    (b) Forest Service Lands.--Except as otherwise provided by this 
part, grazing of domestic livestock on lands administered by the Forest 
Service shall, to the extent possible, be in accordance with 
regulations, which the Secretary of Agriculture shall promulgate, which 
are substantially similar to the regulations referred to in subsection 
(a). Regulations promulgated under this subsection may differ from the 
regulations referred to in subsection (a) to the extent necessary to 
conform to the laws governing the National Forest System (other than 
this part).
    (c) Federal Lands.--For the purposes of this part, the term 
``Federal lands'' means lands administered by the Bureau of Land 
Management and lands administered by the Forest Service.

SEC. 9332. FEES AND CHARGES.

    (a) Basic Fee.--The basic fee for each animal unit month in a 
grazing fee year to be determined by the Bureau of Land Management and 
the Forest Service shall be equal to the 3-year average of the total 
gross value of production for beef cattle, as compiled by the Economic 
Research Service of the Department of Agriculture in accordance with 
subsection (b) on the basis of economic data published by the Service 
in the Economic Indicators of the Farm Sector: Cost of Production--
Major Field Crops & Livestock and Dairy for the 3 years preceding the 
grazing fee year, multiplied by the 10 year average of the United 
States Treasury Securities 6-month bill ``new issue'' rate and divided 
by 12.
    (b) Criteria.--The Economic Research Service of the Department of 
Agriculture shall continue to compile the gross production value of 
production of beef cattle as reported in a dollar per bred cow basis in 
the ``U.S. Cow-Calf Production Cash Costs and Returns''.
    (c) Surcharge.--
            (1) In general.--A surcharge shall be added to the grazing 
        fee billings for authorized grazing of livestock owned by 
        persons other than the permittee or lessee except where--
                    (A) such use is made by livestock owned by a 
                spouse, child, or grandchild or their respective spouse 
                of the permittee and lessee; or
                    (B) the permittee or lessee is unable to make full 
                grazing use, as authorized by a grazing permit or 
                lease, due to the infirmed condition or death of the 
                permittee or lessee.
            (2) Treatment as additional fee.--The surcharge shall be 
        over and above any other fees that may be charged for using 
        public land forage.
            (3) Prior payment required.--Surcharges shall be paid prior 
        to grazing use.
            (4) Amount.--The surcharge for authorized pasturing of 
        livestock owned by persons other than the permittee or lessee 
        shall be equal to 25 percent of the difference between the 
        current year's Federal grazing fee and the prior year's private 
        grazing land lease rate per AUM for the appropriate State as 
        compiled by the National Agricultural Statistics Service.
            (5) In general.--The Bureau of Land Management and the 
        Forest Service shall make a determination under subsection (a) 
        based on the following information gathered by the National 
        Agriculture Statistics Service of the Department of Agriculture 
        with respect to the largest single grazing lease of each 
        grazing operator (in terms of dollars):
                    (A) Whether the operator charged--
                            (i) per acre;
                            (ii) per head per month;
                            (iii) per pound of gain;
                            (iv) per hundredweight of gain; or
                            (v) by another measure, and the rate 
                        charged.
                    (B)(i) The estimated average pounds gained per 
                season for the grazing lease.
                    (ii) The total dollar amount estimated to be 
                realized from the grazing lease.
                    (iii) Grazing lease acreage.
                    (iv) The State and county where the grazing lease 
                is located.
                    (C) The classes of livestock grazed.
                    (D) The term of the grazing lease.
                    (E)(i) Whether grazing lease payments are paid if 
                no grazing occurred.
                    (ii) Whether the grazing lease contains a take or 
                pay provision.
                    (F) Additional information on whether the following 
                are provided by the landlord on a 5-year basis:
                            (i) Fencing maintenance.
                            (ii) Animal management and oversight.
                            (iii) Water maintenance.
                            (iv) Salt and minerals.
                            (v) Other service (specified).
                            (vi) No services.
                            (vii) Hunting.
                            (viii) Fishing.
                            (ix) Other (specified).
                            (x) None.
            (6) Private native rangeland.--For the purpose of 
        determining rates for grazing leases of private native 
        rangeland, rates for irrigated pasture, crop aftermath, and 
        dryland winter wheat shall be excluded.

SEC. 9333. ANIMAL UNIT MONTH.

    (a) Definition of Animal Unit Month.--The term ``animal unit 
month'' means 1 month's use and occupancy of range by--
            (1) 1 cow, bull, steer, heifer, horse, burro, or mule, 7 
        sheep, or 7 goats, each of which is 6 months of age or older on 
        the date on which the animal begins grazing on Federal land;
            (2) any such animal regardless of age if the animal is 
        weaned on the date on which the animal begins grazing on 
        Federal land; and
            (3) any such animal that will become 12 months of age 
        during the period of use authorized under a grazing permit or 
        grazing lease.
    (b) Livestock Not Counted.--There shall not be counted as an animal 
unit month the use of Federal land for grazing by an animal that is 
less than 6 months of age on the date on which the animal begins 
grazing on Federal land and is the natural progeny of an animal on 
which a grazing fee is paid if the animal is removed from the Federal 
land before becoming 12 months of age.

SEC. 9334. TERM OF GRAZING PERMITS OR GRAZING LEASES.

    A grazing permit or grazing lease shall be issued for a term of 15 
years unless--
            (1) the land is pending disposal;
            (2) the land will be devoted to a public purpose that 
        precludes grazing prior to the end of 15 years; or
            (3) the Secretary determines that it would be in the best 
        interest of sound land management to specify a shorter term, if 
        the decision to specify a shorter term is supported by 
        appropriate and accepted resource analysis and evaluation.

SEC. 9335. CONFORMANCE WITH LAND USE PLAN.

    Livestock grazing activities and management actions approved by the 
Secretary of the Interior or the Secretary of Agriculture, as the case 
may be--
            (1) may include any such activities as are not clearly 
        prohibited by a land use plan; and
            (2) shall not require any consideration under the National 
        Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) in 
        addition to the studies supporting the land use plan.

SEC. 9336. EFFECTIVE DATE.

    This part shall apply to grazing on Federal lands on and after the 
date of the enactment of this Act.

     PART 4--REGIONAL DISPOSAL FACILITY OF SOUTHWESTERN LOW LEVEL 
                   RADIOACTIVE WASTE DISPOSAL COMPACT

SEC. 9341. CONVEYANCE OF PROPERTY.

    (a) Conveyance.--Upon the tendering of $500,000 on behalf of the 
State of California and the release of the United States by the State 
of California from any liability for claims relating to the property 
described in subsection (b), all right, title and interest of the 
United States in and to said lands and improvements thereon are 
conveyed to the Department of Health Services of the State of 
California: Provided, That the property shall revert to the United 
States if the property is not used as a low-level radioactive waste 
disposal facility.
    (b) Description.--The lands conveyed are those depicted on a map 
designated USGS 7.5 minute quadrangle, west of Flattop Mtn, CA 1984, 
entitled ``Location Map for Ward Valley Site'', located in San 
Bernardino Meridian, Township 9 North, Range 19 East.
    (c) Title.--The Secretary of the Interior shall issue evidence of 
title pursuant to this Act notwithstanding any other provision of law. 
The Southwestern Low-Level Radioactive Waste Disposal Compact's Ward 
Valley regional disposal facility and transfer of the land are in 
compliance with any applicable provisions of section 7 of Endangered 
Species Act of 1973 (16 U.S.C. 1536) and the National Environmental 
Policy Act of 1969 (42 U.S.C. 4332).
    (d) Deposit of Funds.--Sums received pursuant to subsection (a) 
shall be deposited as miscellaneous receipts in the Treasury of the 
United States.
    (e) Expiration of Authority.--This authority expires October 1, 
2010.

SEC. 9342. CONVEYANCE OF EASEMENTS.

    Concurrent with the conveyance property described in section 
9341(b) to the Department of Health Services of the State of 
California, all necessary easements for utilities and ingress and 
egress to said lands described in section 9341(b) of this Act and the 
right to improve those easements, are also conveyed to the Department 
of Health Services of the State of California: Provided, That the 
Department of Health Services right-of-way easements revert to the 
United States if the lands referenced in section 9341 are not licensed 
and used as a low-level radioactive waste disposal facility.

                        Subtitle D--Territories

          PART 1--COMMONWEALTH OF THE NORTHERN MARIANA ISLANDS

SEC. 9401. TERMINATION OF ANNUAL DIRECT GRANT ASSISTANCE.

    (a) Termination.--Pursuant to section 704(d) of the Covenant to 
Establish a Commonwealth of the Northern Mariana Islands in Political 
Union with the United States of America (48 U.S.C. 1681 note), the 
annual payments under section 702 of the Covenant shall terminate as of 
September 30, 1995.
    (b) Repeal.--Sections 3 and 4 of the Act of March 24, 1976 (Public 
Law 94-241; 48 U.S.C. 1681 note), as amended, are repealed, effective 
October 1, 1995.
    (c) Removal of Authority To Obligate Certain Funds.--Amounts 
appropriated under title VII of the Covenant to Establish a 
Commonwealth of the Northern Mariana Islands in Political Union with 
the United States of America, and under sections 3 and 4 of Public Law 
94-241 (48 U.S.C. 1681), which are not obligated as of the date of the 
enactment of this Act may not be obligated after such date.
    (d) Conforming Amendments.--Section 5 of such Act (48 U.S.C. 1681 
note) is amended--
            (1) by striking out ``agreement identified in section 3 of 
        this Act'' and inserting in lieu thereof ``Agreement of the 
        Special Representatives on Future United States Financial 
        Assistance for the Government of the Northern Mariana Islands, 
        executed July 10, 1985, between the special representative of 
        the President of the United States and the special 
        representatives of the Governor of the Northern Mariana 
        Islands''; and
            (2) by striking out ``Committee on Interior and Insular 
        Affairs'' and inserting in lieu thereof ``Committee on 
        Resources''.

            PART 2--TERRITORIAL ADMINISTRATIVE CESSATION ACT

SEC. 9421. SHORT TITLE.

    This part may be cited as the ``Territorial Administrative 
Cessation Act''.

SEC. 9422. CONGRESSIONAL FINDINGS.

    The Congress finds that--
            (1) each of the four political subdivisions of the United 
        Nations Trust Territory of the Pacific Islands, known as the 
        Japanese Mandated Islands, have successfully entered into 
        distinct self-governing entities, thereby culminating in the 
        final termination of the Trusteeship and the end of the 
        trusteeship responsibilities of the United States as 
        administering authority of the Trust Territory on October 1, 
        1994;
            (2) the United States territories have developed 
        progressively increased local self-government over the past 
        five decades;
            (3) the territories predominantly deal directly with 
        Federal agencies and departments, as a State would;
            (4) the administering responsibilities of the Department of 
        the Interior with respect to the insular areas has declined 
        substantially during the past five decades; and
            (5) Federal-territorial relations can be enhanced and 
        Federal fiscal conditions improved by the elimination of 
        unnecessary Federal bureaucracy.

SEC. 9423. ELIMINATION OF OFFICE OF TERRITORIAL AND INTERNATIONAL 
                    AFFAIRS.

    (a) In General.--The Office of Territorial and International 
Affairs of the Department of the Interior, established pursuant to the 
Order of the Secretary of the Interior 3046, of February 14, 1980, as 
amended, is hereby abolished.
    (b) Termination of Position of Assistant Secretary.--Section 5315 
of title 5, United States Code, is amended by striking ``Assistant 
Secretaries of the Interior (6)'' and inserting ``Assistant Secretaries 
of the Interior (5)''.
    (c) Effective Date.--Subsection (a) and the amendment made by 
subsection (b) shall take effect on the first day of the first fiscal 
year that begins after the date of the enactment of this Act.

SEC. 9424. CERTAIN ACTIVITIES NOT FUNDED.

    Amounts may not be made available for the following program 
activities for assistance to territories for fiscal years beginning 
after September 30, 1995, as identified under the appropriations 
account numbered 14-0412-0-1-808:
            (1) technical assistance, item 00.12;
            (2) maintenance assistance, item 00.14;
            (3) disaster fund, item 00.17; and
            (4) insular management controls, item 00.19.

                          Subtitle E--Minerals

                        PART 1--HARDROCK MINING

SEC. 9501. FINDINGS AND PURPOSE.

    (a) Findings.--Congress finds and declares that--
            (1) a secure and reliable supply of locatable minerals is 
        essential to the industrial base of the United States, national 
        security, and balance of trade;
            (2) many of the deposits of locatable minerals that may be 
        commercially developed are on Federal lands as that term is 
        defined in this Act, and are difficult and expensive to 
        discover, mine, extract and process;
            (3) the national need for locatable minerals will continue 
        to expand, and without a strong mining industry the demand for 
        the minerals will exceed domestic sources of supply;
            (4) mining of locatable minerals is an extremely high-risk, 
        capital-intensive endeavor, which, to attract necessary 
        investment, requires certainty and predictability in access to 
        Federal lands in establishment of mining titles, and in the 
        rights of owners of mining claims or sites to develop minerals;
            (5) the national interest is to foster and encourage 
        private enterprise in the development of a domestic minerals 
        industry to maintain and create high-paying jobs and the 
        various Federal, State, and local taxes paid by the mining 
        industry in the United States;
            (6) changes in the general mining laws of the United States 
        to provide more direct economic return to the United States and 
        greater protection of public resources are desirable, so long 
        as these changes do not act as a disincentive to development of 
        minerals, adversely affect employment in the mining industry or 
        in industries that provide goods and services required for 
        mining activities, interfere with a secure and reliable 
        domestic supply of minerals, or adversely affect the balance of 
        trade of the United States; and
            (7) mining claims, mill sites and tunnel sites located 
        under the general mining laws are property interests, and any 
        law or regulation that substantially impairs existing property 
        rights may expose the Federal Government to takings claims 
        under the fifth amendment to the United States Constitution.
    (b) Purpose.--It is the purpose of this subtitle to--
            (1) affirm and maintain the policy established in section 2 
        of the Mining and Minerals Policy Act of 1970;
            (2) promote exploration for and the development of a secure 
        and reliable domestic source of locatable minerals;
            (3) provide for increased Federal revenue from the location 
        and production of locatable minerals from Federal lands through 
        patent payments and royalties; and
            (4) recognize that unpatented mining claims, mill sites and 
        tunnel sites are property rights in the fullest sense and 
        avoid, to the greatest extent possible, claims of takings of 
        existing property rights under the general mining laws that 
        could require compensation under the fifth amendment to the 
        United States Constitution.

SEC. 9502. PATENTS UNDER THE GENERAL MINING LAW.

    (a) In General.--Any patent issued by the United States under the 
general mining laws after the date of the enactment of this Act for any 
interest in land covered by a mining claim or site under such laws 
shall be issued only--
            (1) upon payment by the owner of the mining claim or site 
        of the fair market value for the interest in the land owned by 
        the United States exclusive of, and without regard to, the 
        mineral deposits in the land or the use of such land for 
        mineral activities unless the requirements of subsection (b) 
        are met, and
            (2) subject to a reservation by the United States of the 
        royalty provided in section 9503(a), unless the requirements in 
        subsection (b) are met.
    (b) Patent Transition.--(1) Subsection (a) shall not apply to any 
mining claim or site if--
            (A) the claimant establishes that the claim or site 
        constituted a valid mining claim as of the date of the 
        enactment of this Act; and
            (B) the claimant has filed a patent application or mineral 
        survey application prior to the date of the enactment of this 
        Act, or files such an application with the Bureau of Land 
        Management before the date 2 years after the date of the 
        enactment of this Act. A patent application or mineral survey 
        application referred to in this subparagraph shall be deemed 
        timely, notwithstanding that the application may be corrected 
        or supplemented and resubmitted thereafter.
    (2) During the 2-year period in paragraph (1)(B), or while there is 
pending a mineral survey or patent application to which this subsection 
applies, an owner of the mining claim or site may continue work on a 
mining claim or site directed toward establishment and confirmation of 
entitlement to a patent, and may amend the application as necessary.
    (3) Where access to any mining claim or site has been denied or 
impeded by the action or inaction of any Federal official, agency, or 
court during all or part of the 5-year period preceding the date of 
enactment of this Act, including any mining claim or site within the 
area described in section 106 of Public Law 103-433, and the mining 
claim or site may require further exploration or development in order 
for the claimant to file a patent application or a mineral survey 
application and otherwise meet the requirements of paragraph (1), the 
claimant may, within 1 year after the date of enactment of this Act, 
submit a certified written statement to the Secretary describing the 
access denial or impediment, and shall then have a period of 10 years 
from the date of enactment of this Act or the termination of such 
access denial or impediment, whichever occurs first, to conduct such 
mineral exploration or development activities, file a patent 
application or mineral survey application, and otherwise meet the 
requirements of paragraph (1).
    (c) Payment Plan.--(1) Any owner grossing less than $500,000 
annually shall qualify for a payment plan. Upon completion of the 
patent process, the owner of the mining claim may purchase the surface 
estate under the following conditions:
            (A) Payment to be amortized over 5 years with 5 equal 
        annual payments, including principal and interest.
            (B) Interest shall be calculated per annum at a rate of 2 
        percent over the ``Treasury Current Value of Funds Rate'' on 
        the date of execution of the payment plan agreement.
    (2) The purchaser shall be notified by certified mail after 60 days 
of delinquent payments and have 90 days from receipt of notification to 
correct the delinquency. Repossession shall be by and under the laws of 
repossession, foreclosure, and replevin of the State wherein the land 
is situated.
    (d) Repeal of Patenting Moratorium; Processing of Patent 
Applications.--Sections ____ and ____ of Public Law ____ are hereby 
repealed. The Secretary of the Interior shall diligently process all 
patent applications under the general mining laws pending on the date 
of enactment and shall make determinations for all such applications 
regarding patent issuance within 2 years.

SEC. 9503. ROYALTY UNDER THE GENERAL MINING LAW.

    (a) In General.--The production and sale of locatable minerals 
(including associated minerals) from any unpatented mining claim (other 
than those from Federal lands to which subsection 9502(b) applies) or 
any mining claim patented under section 9502(a) shall be subject to a 
royalty of 3.5 percent on the net proceeds from such production mined 
and sold from such claim.
    (b) Royalty Exclusion.--(1) The royalty payable under this section 
shall be waived for any person or corporation with annual net proceeds 
from mineral production subject to subsection (a) of less than $50,000.
    (2) Where mining operations subject to this section are conducted 
in 2 or more places by 1 person or corporation, the operations shall be 
considered a single operation the aggregate net proceeds from which 
shall be subject to the $50,000 limitation set forth in this 
subsection.
    (3) No royalty shall be payable under this section with respect to 
minerals processed at a facility by the same person or entity which 
extracted the minerals if an urban development action grant has been 
made under section 119 of the Housing and Community Development Act of 
1974 with respect to any portion of such facility.
    (4) The obligation to pay royalties under this section shall accrue 
only upon the sale of locatable minerals or mineral products produced 
from a mining claim subject to such royalty, and not upon the 
stockpiling of the same for future processing.
    (c) Definitions.--For the purposes of this subtitle:
            (1) The term ``net proceeds'' means gross yield, less the 
        sum of the following deductions for costs incurred prior to 
        sale or value determination, and none other:
                    (A) The actual cost of extracting the locatable 
                mineral.
                    (B) The actual cost of transporting the locatable 
                mineral from the claim to the place or places of 
                reduction, beneficiation, refining, and sale.
                    (C) The actual cost of crushing, processing, 
                reduction, beneficiation, refining, and sale of the 
                locatable mineral.
                    (D) The actual cost of marketing and delivering the 
                locatable mineral and the conversion of the locatable 
                mineral into money.
                    (E) The actual cost of maintenance and repairs of--
                            (i) all machinery, equipment, apparatus, 
                        and facilities used in the mine;
                            (ii) all crushing, milling, leaching, 
                        refining, smelting, and reduction works, 
                        plants, and facilities; and
                            (iii) all facilities and equipment for 
                        transportation.
                    (F) The actual cost for support personnel and 
                support services at the mine site, including without 
                limitation, accounting, assaying, drafting and mapping, 
                computer services, surveying, housing, camp, and office 
                expenses, safety, and security.
                    (G) The actual cost of engineering, sampling, and 
                assaying pertaining to development and production.
                    (H) The actual cost of permitting, reclamation, 
                environmental compliance and monitoring.
                    (I) The actual cost of fire and other insurance on 
                the machinery, equipment, apparatus, works, plants, and 
                facilities mentioned in subparagraph (E).
                    (J) Depreciation of the original capitalized cost 
                of the machinery, equipment, apparatus, works, plants, 
                and facilities listed in subparagraph (E). The annual 
                depreciation charge shall consist of amortization of 
                the original cost in the manner consistent with the 
                Internal Revenue Code of 1986, as amended from time to 
                time. The probable life of the property represented by 
                the original cost must be considered in computing the 
                depreciation charge.
                    (K) All money expended for premiums for industrial 
                insurance, and the owner paid cost of hospital and 
                medical attention and accident benefits and group 
                insurance for all employees engaged in the production 
                or processing of locatable minerals.
                    (L) All money paid as contributions or payments 
                under State unemployment compensation law, all money 
                paid as contributions under the Federal Social Security 
                Act, and all money paid to State government in real 
                property taxes and severance or other taxes measured or 
                levied on production, or Federal excise tax payments 
                and payments as fees or charges for use of the Federal 
                lands from which the locatable minerals are produced.
                    (M) The actual cost of the developmental work in or 
                about the mine or upon a group of mines when operated 
                as a unit.
            (2) The term ``gross yield'' shall having the following 
        meaning:
                    (A) In the case of sales of gold and silver ore, 
                concentrates or bullion, or the sales of other 
                locatable minerals in the form of ore or concentrates, 
                the term ``gross yield'' means the actual proceeds of 
                sale of such ore, concentrates or bullion.
                    (B) In the case of sales of beneficiated products 
                from locatable minerals other than those subject to 
                subparagraph (A) (including cathode, anode or copper 
                rod or wire, or other products fabricated from the 
                locatable minerals), the term ``gross yield'' means the 
                gross income from mining derived from the first 
                commercially marketable product determined in the same 
                manner as under section 613 of the Internal Revenue 
                Code of 1986.
                    (C) If ore, concentrates, beneficiated or 
                fabricated products, or locatable minerals are used or 
                consumed and are not sold in an arms length 
                transaction, the term ``gross yield'' means the 
                reasonable fair market value of the ore, concentrates, 
                beneficiated or fabricated products at the mine or 
                wellhead determined from the first applicable of the 
                following:
                            (i) Published or other competitive selling 
                        prices of locatable minerals of like kind and 
                        grade.
                            (ii) Any proceeds of sale.
                            (iii) Value received in exchange for any 
                        thing or service.
                            (iv) The value of any locatable minerals in 
                        kind or used or consumed in a manufacturing 
                        process or in providing a service.
                Without limiting the foregoing, the profits or losses 
                incurred in connection with forward sales, futures or 
                commodity options trading, metal loans, or any other 
                price hedging or speculative activity or arrangement 
                shall not be included in gross yield.
            (3) The term ``Secretary'' means the Secretary of the 
        Interior.
    (d) Limitations and Allocations of Net Proceeds, Gross Yield, and 
Allowable Costs.--(1) The deductions listed in subsection (c)(1) are 
intended to allow a reasonable allowance for overhead. Such deductions 
shall not include any expenditures for salaries, or any portion of 
salaries, of any person not actually engaged in--
            (A) the working of the mine;
            (B) the operating of the leach pads, ponds, plants, mills, 
        smelters, or reduction works;
            (C) the operating of the facilities or equipment for 
        transportation; or
            (D) superintending the management of any of those 
        operations described in subparagraphs (A) through (C).
    (2) Ores or solutions of locatable minerals subject to the royalty 
requirements of this section may be extracted from mines comprised of 
mining claims and lands other than mining claims and ore or solutions 
of locatable minerals subject to the royalty requirements of this 
section may be commingled with ores or solutions from lands other than 
mining claims. In any such case, for purposes of determining the amount 
of royalties payable under this section--
            (A) the operator shall first sample, weigh or measure, and 
        assay the same in accordance with accepted industry standards; 
        and
            (B) gross yield, allowable costs and net proceeds for 
        royalty purposes shall be allocated in proportion to mineral 
        products recovered from the mining claims in accordance with 
        accepted industry standards.
    (e) Liability for Royalty Payments.--The owner or co-owners of a 
mining claim subject to a royalty under this section shall be liable 
for such royalty to the extent of the interest in such claim owned. As 
used in this subsection, the terms ``owner'' and ``co-owner'' mean the 
person or persons owning the right to mine locatable minerals from such 
claim and receiving the net proceeds of such sale. No person who makes 
any royalty payment attributable to the interest of the owner or co-
owners liable therefor shall become liable to the United States for 
such royalty as a result of making such payment on behalf of such owner 
or co-owners.
    (f) Time and Manner of Payment.--(1) Royalty payments for 
production from any mining claim subject to the royalty payable under 
this section shall be due to the United States at the end of the month 
following the end of the calendar quarter in which the net proceeds 
from the sale of such production are received by the owner or co-
owners. Royalty payments may be made based upon good faith estimates of 
the gross yield, net proceeds and the quantity of ore, concentrates, or 
other beneficiated or fabricated products of locatable minerals, 
subject to adjustment when the actual annual gross yield, net proceeds 
and quantity are determined by the owner of the mining claim or site or 
co-owners.
    (2) Each royalty payment or adjustment shall be accompanied by a 
statement containing each of the following:
            (A) The name and Bureau of Land Management serial number of 
        the mining claim or claims from which ores, concentrates, 
        solutions or beneficiated products of locatable minerals 
        subject to the royalty required in this section were produced 
        and sold for the period covered by such payment or adjustment.
            (B) The estimated (or actual, if determined) quantity of 
        such ore, concentrates, solutions or beneficiated or fabricated 
        products produced and sold from such mining claim or claims for 
        such period.
            (C) The estimated (or actual, if determined) gross yield 
        from the production and sale of such ore, concentrates, 
        solutions or beneficiated products for such period.
            (D) The estimated (or actual, if determined) net proceeds 
        from the production and sale of such ores, concentrates, 
        solutions or beneficiated products for such period, including 
        an itemization of the applicable deductions described in 
        subsection (c)(1).
            (E) The estimated (or actual, if determined) royalty due to 
        the United States, or adjustment due to the United States or 
        such owner or co-owners, for such period.
    (3) In lieu of receiving a refund under subsection (h), the owner 
or co-owners may elect to apply any adjustment due to such owner or co-
owners as an offset against royalties due from such owner or co-owners 
to the United States under this Act, regardless of whether such 
royalties are due for production and sale from the same mining claim or 
claims.
    (g) Recordkeeping and Reporting Requirements.--(1) An owner, 
operator, or other person directly involved in the conduct of mineral 
activities, transportation, purchase, or sale of locatable minerals, 
concentrates, or products derived therefrom, subject to the royalty 
under this section, through the point of royalty computation, shall 
establish and maintain any records, make any reports, and provide any 
information that the Secretary may reasonably require for the purposes 
of implementing this section or determining compliance with regulations 
or orders under this section. Upon the request of the Secretary when 
conducting an audit or investigation pursuant to subsection (i), the 
appropriate records, reports, or information required by this 
subsection shall be made available for inspection and duplication by 
the Secretary.
    (2) Records required by the Secretary under this section shall be 
maintained for 3 years after the records are generated unless the 
Secretary notifies the record holder that he or she has initiated an 
audit or investigation specifically identifying and involving such 
records and that such records must be maintained for a longer period. 
When an audit or investigation is under way, such records shall be 
maintained until the earlier of the date that the Secretary releases 
the record holder of the obligation to maintain such records or the 
date that the limitations period applicable to such audit or 
investigation under subsection (i) expires.
    (h) Interest Assessments.--(1) If royalty payments under this 
section are not received by the Secretary on the date that such 
payments are due, or if such payments are less than the amount due, the 
Secretary shall charge interest on such unpaid amount. Interest under 
this subsection shall be computed at the rate published by the 
Department of the Treasury as the ``Treasury Current Value of Funds 
Rate.'' In the case of an underpayment or partial payment, interest 
shall be computed and charged only on the amount of the deficiency and 
not on the total amount, and only for the number of days such payment 
is late. No other late payment or underpayment charge or penalty shall 
be charged with respect to royalties under this section.
    (2) In any case in which royalty payments are made in excess of the 
amount due, or amounts are held by the Secretary pending the outcome of 
any appeal in which the Secretary does not prevail, the Secretary shall 
promptly refund such overpayments or pay such amounts to the person or 
persons entitled thereto, together with interest thereon for the number 
of days such overpayment or amounts were held by the Secretary, with 
the addition of interest charged against the United States computed at 
the rate published by the Department of the Treasury as the ``Treasury 
Current Value of Funds Rate.''
    (i) Audits, Payment Demands and Limitations.--(1) The Secretary may 
conduct, after notice, any audit reasonably necessary and appropriate 
to verify the payments required under this section.
    (2) The Secretary shall send or issue any billing or demand letter 
for royalty due on locatable minerals produced and sold from any mining 
claim subject to royalty required by this section not later than 3 
years after the date such royalty was due and must specifically 
identify the production involved, the royalty allegedly due and the 
basis for the claim. No action, proceeding or claim for royalty due on 
locatable minerals produced and sold, or relating to such production, 
may be brought by the United States, including but not limited to any 
claim for additional royalties or claim of the right to offset the 
amount of such additional royalties against amounts owed to any person 
by the United States, unless judicial suit or administrative 
proceedings are commenced to recover specific amounts claimed to be due 
prior to the expiration of 3 years from the date such royalty is 
alleged to have been due.
    (j) Transitional Rules.--Any mining claim for which a patent is 
issued pursuant to section 9502(b) shall not be subject to the 
obligation to pay the royalty pursuant to this section. Royalty 
payments for any claim processed under section 9502(b) shall be 
suspended pending final determination of the right to patent. For any 
such claim that is determined not to qualify for the issuance of a 
patent under section 9502(b), royalties shall be payable under this 
section on production after the date of enactment of this Act, plus 
interest computed at the rate published by the Department of the 
Treasury as the ``Treasury Current Value of Funds Rate'' on production 
after such date of enactment and before the date of such determination.
    (k) Disbursement of Revenues.--The receipts from royalties 
collected under this section shall be disbursed as follows:
            (1) Two-thirds of such receipts shall be paid into the 
        Treasury of the United States and deposited as miscellaneous 
        receipts.
            (2) One-third of such receipts shall be paid by the 
        Secretary of the Treasury to the State in which the mining 
        claim from which production occurred is located.
    (l) No Implied Covenants.--The owner of a mining claim subject to 
the provisions of this title shall have no obligation, express or 
implied, to explore for, develop, produce or market locatable minerals 
as a result of the obligation to pay a royalty hereunder, and the 
timing, nature, extent and manner of exploring, developing, mining and 
marketing such locatable minerals shall be in the sole discretion of 
the claim owner.

SEC. 9504. MINERAL MATERIALS.

    (a) Determinations.--Section 3 of the Act of July 23, 1955 (30 
U.S.C. 611), is amended as follows:
            (1) Insert ``(a)'' before the first sentence.
            (2) Add the following new subsection at the end thereof:
    ``(b)(1) Subject to valid existing rights, after the date of 
enactment of this subsection, notwithstanding the reference to common 
varieties in subsection (a) and to the exception to such term relating 
to a deposit of materials with some property giving it distinct and 
special value, all deposits of mineral materials referred to in such 
subsection, including the block pumice referred to in such subsection, 
shall be subject to disposal only under the terms and conditions of the 
Materials Act of 1947.
    ``(2) For purposes of paragraph (1), the term `valid existing 
rights' means that a mining claim located for any such mineral material 
had some property giving it the distinct and special value referred to 
in subsection (a), or as the case may be, met the definition of block 
pumice referred to in such subsection, was properly located and 
maintained under the general mining laws prior to the date of the 
enactment of this subsection, and was supported by a discovery of a 
valuable mineral deposit within the meaning of the general mining laws 
as in effect immediately prior to such date of enactment and that such 
claim continues to be valid under this Act.''.
    (b) Identified Deposits.--In order to assure that the Secretary has 
the authority to provide for the development of mineral materials 
which, in order to justify the investment necessary for the development 
of the appropriate mine, quarry or other workings and related 
facilities, may require longer and more secure tenure than is provided 
by sales contracts under the Act entitled ``An Act to provide for the 
disposal of materials on the public lands of the United States'', 
approved July 31, 1947 (30 U.S.C. 602), and in order to provide 
flexibility with regard to the manner of disposition of mineral 
materials section 2 of such Act is amended by adding at the end the 
following:
    ``(b) Identified Deposits.--(1) Lands known to contain valuable 
deposits of mineral materials subject to this Act and subsequent 
amendments and not covered by any contract, permit, or lease under this 
section shall also be subject to disposition by lease under this Act by 
the Secretary of the Interior through advertisement, competitive 
bidding, or such other methods as he may by general regulations adopt, 
and in such reasonably compact areas as he shall fix.
    ``(2) All leases will be conditioned upon--
            ``(A) the payment by the lessee of such royalty as may be 
        fixed in the lease, not less than two percent of the quantity 
        or gross value of the output of mineral materials, and
            ``(B) the payment in advance of a rental of 25 cents per 
        acre for the first calendar year or fraction thereof; 50 cents 
        per acre for the second, third, fourth, and fifth years, 
        respectively; and $1 per acre per annum thereafter during the 
        continuance of the lease, such rental for that year being 
        credited against royalties accruing for that year.
    ``(3)(A) Any lease issued under this subsection shall be for a term 
of 20 years and so long thereafter as the lessee complies with the 
terms and conditions of the lease and upon the further condition that 
at the end of each 20-year period succeeding the date of the lease such 
reasonable adjustment of the terms and conditions thereof may be made 
therein as may be prescribed by the Secretary of the Interior unless 
otherwise provided by law at the expiration of such periods.
    ``(B) Leases shall be conditioned upon a minimum annual production 
or the payment of a minimum royalty in lieu thereof, except when 
production is interrupted by strikes, the elements, or casualties not 
attributable to the lessee.
    ``(C) The Secretary of the Interior may permit suspension of 
operations under any such leases when marketing conditions are such 
that the leases cannot be operated except at a loss.
    ``(D) The Secretary upon application by the lessee prior to the 
expiration of any existing lease in good standing shall amend such 
lease to provide for the same tenure and to contain the same 
conditions, including adjustment at the end of each 20-year period 
succeeding the date of said lease, as provided for in this subsection.
    ``(c) Other Lands.--(1) The Secretary of the Interior is hereby 
authorized, under such rules and regulations as he may prescribe, to 
grant to any qualified applicant a prospecting permit which shall give 
the exclusive right to prospect for mineral materials in lands 
belonging to the United States which are not subject to subsection (b), 
and are not covered by a contract, permit, or lease under this Act, 
except that a prospecting permit shall not exceed a period of 2 years 
and the area to be included in such a permit shall not exceed 2,560 
acres of land in reasonably compact form.
    ``(2) The Secretary of the Interior shall reserve and may exercise 
the authority to cancel any prospecting permit upon failure by the 
permittee to exercise due diligence in the prosecution of the 
prospecting work in accordance with the terms and conditions stated in 
the permit, and shall insert in every such permit issued under the 
provisions of this Act appropriate provisions for its cancellation by 
him.
    ``(3) Upon showing to the satisfaction of the Secretary of the 
Interior that valuable deposits of one of the mineral materials subject 
to the Materials Act of 1947 have been discovered by the permittee 
within the area covered by his permit, and that such land is valuable 
therefor, the permittee shall be entitled to a lease for any or all of 
the land embraced in the prospecting permit, at a royalty of not less 
than two percent of the quantity or gross value of the output of the 
mineral materials at the point of shipment to market, such lease to be 
taken in compact form by legal subdivisions of the public land surveys, 
or if the land be not surveyed, by survey executed at the cost of the 
permittee in accordance with regulations prescribed by the Secretary of 
the Interior.''.
    (d) Mineral Materials Disposal Clarification.--Section 4 of the Act 
of July 23, 1955 (30 U.S.C. 612), as amended as follows:
            (1) In subsection (b) insert ``and mineral material'' after 
        ``vegetative''.
            (2) In subsection (c) insert ``and mineral material'' after 
        ``vegetative''.
    (e) Conforming Amendment.--Section 1 of the Act of July 31, 1947, 
entitled ``An Act to provide for the disposal of materials on the 
public lands of the United States'' (30 U.S.C. 601 and following) is 
amended by striking ``common varieties of'' in the first sentence.
    (f) Short Titles.--
            (1) Surface resources.--The Act of July 23, 1955, is 
        amended by inserting after section 7 the following new section:
    ``Sec. 8. This Act may be cited as the `Surface Resources Act of 
1955'.''.
            (2) Mineral materials.--The Act of July 31, 1947, entitled 
        ``An Act to provide for the disposal of materials on the public 
        lands of the United States'' (30 U.S.C. 601 and following) is 
        amended by inserting after section 4 the following new section:
    ``Sec. 5. This Act may be cited as the `Materials Act of 1947'.''.
    (g) Repeals.--(1) Subject to valid existing rights, the Act of 
August 4, 1892 (27 Stat. 348, 30 U.S.C. 161), commonly known as the 
Building Stone Act, is hereby repealed.
    (2) Subject to valid existing rights, the Act of January 31, 1901 
(30 U.S.C. 162), commonly known as the Saline Placer Act, is hereby 
repealed.
    (h) Authorization for Disposal of Mineral Materials by Contract.--
Section 2(a) of the Act entitled ``An Act to provide for the disposal 
of materials on the public lands of the United States'', approved July 
31, 1947 (30 U.S.C. 602(a)), is amended--
            (1) by striking the period at the end of paragraph (3) and 
        inserting ``or, if''; and
            (2) by adding after paragraph (3) the following:
            ``(4) the material is a mineral material.''.
    (i) Sodium.--Section 24 of the Mineral Leasing Act (30 U.S.C. 181 
et seq.) is amended by inserting after ``2 per centum'' in each place 
it appears the following: ``and not greater than five and one-half per 
centum''. Any rate under section 24 of the Mineral Leasing Act (30 
U.S.C. 181) in excess of five and one-half per centum shall not be 
allowed unless the following conditions are met:
            (1) the Secretary, in consultation with the Secretary of 
        Commerce and the United States Trade Representative, finds that 
        any increase in the royalty rate for sodium will not have an 
        adverse effect on the export of domestically produced soda ash;
            (2) the Secretary reports this finding of no ``adverse 
        effect'' to Congress and recommends an additional proposed 
        royalty rate increase; and
            (3) the Congress, within 360 days, approves the Secretary's 
        recommendation.
The Secretary shall, within 90 days, offer for competitive bid all 
tracts for which there are applications pending on sodium leases.

SEC. 9505. CLAIM MAINTENANCE REQUIREMENTS.

    (a) Maintenance Fees.--
            (1) Annual maintenance fee.--After the date of enactment of 
        this Act, the owner of each unpatented mining claim or site 
        located pursuant to the general mining laws, whether located 
        before or after the enactment of this Act, shall pay to the 
        Secretary in advance on or before September 1 of each year, 
        until a patent has been issued therefor, an annual maintenance 
        fee per mining claim or site.
            (2) Initial maintenance fee.--The owner of each unpatented 
        mining claim or site located after the date of enactment of 
        this Act pursuant to the general mining laws shall pay to the 
        Secretary, at the time the copy of the notice or certificate of 
        location is filed with the Bureau of Land Management pursuant 
        to section 314(b) of the Federal Land Policy and Management Act 
        of 1976 (43 U.S.C. 1744(b)), the location fee required under 
        subsection (i) of this section, in lieu of the annual 
        maintenance fee of $100 per mining claim or site for the 
        assessment year which includes the date of location of such 
        mining claim or site.
            (3) Exemption.--The owner of any mining claim or site who 
        certifies in writing to the Secretary on or before the first 
        day of any assessment year that access to such mining claim or 
        site was denied or impeded during the prior assessment year by 
        the action or inaction of any local, State, or Federal 
        governmental officer, agency, or court, or by any Indian tribal 
        authority, shall be exempt from the annual maintenance fee 
        requirements of paragraph (1) for the assessment year following 
        the filing of the certification.
            (4) Amount of annual maintenance fee.--For each assessment 
        year the annual maintenance fee payable under paragraph (1) for 
        a claim or site referred to in paragraph (1) shall be in the 
        amount specified in Table 1.
      

                                 TABLE 1                                
------------------------------------------------------------------------
                                                  Amount of Fee Per Site
                Assessment Year                          or Claim       
------------------------------------------------------------------------
1 through 3....................................       $100 per year     
4 through 5....................................       $150 per year     
6 through 10...................................       $200 per year     
11 through 15..................................       $300 per year     
16 and thereafter..............................       $500 per year     
------------------------------------------------------------------------

For purposes of applying Table 1 in the case of claims filed before the 
enactment of this Act, the portion of the assessment year in which this 
Act is enacted shall be treated as the first assessment year.
            (5) Effect of forfeiture.--No owner or co-owner of a mining 
        claim or site which has been forfeited because the maintenance 
        fee has not been paid and no person who is a related person of 
        any such owner or co-owner may relocate a new claim on any part 
        of lands located within the forfeited claim for a period of 18 
        months after the date of forfeiture.
            (6) Deposit of fees.--The full amount of all fees paid 
        under this subsection shall be deposited in the General Fund of 
        the Treasury.
    (b) Annual Labor.--(1) Amounts expended on activities that qualify 
as annual labor under the general mining laws may be credited on a 
dollar for dollar basis towards up to 75 percent of the annual 
maintenance fee payable under this section for the following assessment 
year.
    (2) Subject to the 75 percent limit set forth in paragraph (1), the 
excess of amounts expended for annual labor performed in any one year 
over such 75 percent limit may be applied to the maintenance fee due in 
subsequent years for a period of up to three years.
    (3) In order to receive credit under this subsection for annual 
labor work or excess annual labor, the description and value of the 
work must be included in the statement required in subsection (e) and 
the statement must be timely filed.
    (4) Annual labor performed on an individual mining claim or site 
within a group of contiguous claims may be credited towards the 
aggregate amount of maintenance fees due on all of the contiguous 
claims within that group.
    (c) Work Qualifying as Annual Labor.--(1) Only work which directly 
benefits or develops a mining claim or facilitates the extraction of 
ore qualifies as annual labor. Acceptable labor and improvements 
include any of the following:
            (A) Drilling or excavating, including ore extraction.
            (B) Mining costs directly associated with the production of 
        ore.
            (C) Prospecting work which benefits the location or a 
        contiguous location.
            (D) Development work toward an actual mine, such as shafts, 
        tunnels, crosscuts and drifts, settling ponds and dams.
            (E) Bringing in water for direct mining or milling 
        purposes.
            (F) Clearing of brush, timber, debris, or overburden where 
        necessary to facilitate the extraction or processing of 
        minerals.
            (G) Construction of trails, roads, or landing strips 
        providing access to claims.
            (H) Construction costs of worker housing, mills, and 
        equipment storage buildings where reasonably necessary for the 
        development of the location.
            (I) Reasonable value of the use of equipment for 
        prospecting, mining, or development purposes on the location.
            (J) Repairs of equipment used for prospecting, sampling, or 
        production of minerals provided that such equipment has been on 
        site during the assessment year.
            (K) Cost of moving workers, materials, and equipment among 
        contiguous locations.
            (L) Watchman services of a bona fide employed watchman on 
        the property where reasonably necessary to protect mining 
        equipment of substantial value.
            (M) Activities covered under section 1 of the Act of 
        September 2, 1958 (30 U.S.C. 28-1), as amended.
            (N) Reclamation conducted pursuant to State or Federal 
        surface management regulations.
            (O) Other activities which the Secretary may determine 
        qualify as annual labor.
    (2) The following activities do not qualify as annual labor:
            (A) Work involved in maintaining the location such as 
        brushing and marking boundaries or replacing corner posts and 
        location notices.
            (B) Transportation of workers to or from the location.
            (C) Prospecting or exploration work not conducted within 
        the location or a contiguous location.
    (d) Amendments of Public Law 85-876.--The Act of September 2, 1958 
(Public Law 85-876; 30 U.S.C. 28-1), is amended as follows:
            (1) Section 1 is amended by inserting ``mineral activities, 
        environmental baseline monitoring, and'' after ``without being 
        limited to'' and before ``geological, geochemical and 
        geophysical surveys'' and by striking ``Such'' at the beginning 
        of the last sentence and inserting ``Airborne''.
            (2) Section 2(d) is amended by inserting ``environmental 
        baseline monitoring or'' after ``experience to conduct'' and 
        before ``geological, geochemical or geophysical surveys''.
            (3) Section 2 is amended by adding at the end of the 
        following new subsection at the end thereof:
    ``(e) The term `environmental baseline monitoring' means activities 
for collecting, reviewing and analyzing information concerning soil, 
vegetation, wildlife, mineral, air, water, cultural, historical, 
archaeological or other resources related to planning for or complying 
with Federal and State environmental or permitting requirements 
applicable to potential or proposed mineral activities on the 
claim(s).''.
    (e) Maintenance Fee Statement.--Each payment under subsection (a) 
of this section shall be accompanied by a statement which reasonably 
identifies the mining claim or site for which the maintenance fee is 
being paid. The statement required under this subsection shall be in 
lieu of any annual filing requirements for mining claims or sites, 
under any other Federal law, but shall not supersede any such filing 
requirement under applicable State law.
    (f) Annual Labor Report.--When the value of annual labor is 
credited towards part or all of the maintenance fee, subject to the 75-
percent limit set forth in subsection (b)(1), the following shall 
apply:
            (1) The maintenance fee statement required in subsection 
        (e) must also state the dates of performance of the labor, 
        describe the character and total value of the improvements made 
        or the labor performed, the amount of labor used as a credit 
        toward the maintenance fee for the current year, and the value 
        of excess labor performed in previous years which is to be 
        applied to the maintenance fee for the current year.
            (2) Documentation which reasonably supports the activities 
        or improvements claimed must accompany the maintenance fee 
        statement. Such documentation may include, but is not limited 
        to, copies of maps showing sample locations, drill locations, 
        or survey data; environmental baseline data; reports on 
        geology, geochemistry, or geophysics by qualified experts; 
        drill results; or engineering reports by qualified engineers.
            (3) All supporting material filed pursuant to paragraph (2) 
        shall remain confidential in accordance with section 552 of 
        title 5 of the United States Code as long as the location is 
        maintained and for a period of one year after the location is 
        abandoned, after which all data filed shall be considered 
        public information.
    (g) Effect of Compliance as Against Subsequent Locators.--(1) 
Except as provided in paragraph (2), after the date of enactment of 
this Act, compliance with the requirements of this section shall, from 
the time the location notice or certificate is posted on the land under 
applicable State law, confer upon the owner of any unpatented mining 
claim or site, whether located before or after the date of enactment of 
this Act, an exclusive right of possession, as against subsequent 
locators, of the land included in such mining claim or site under the 
general mining laws. If more than one mining claim or site owned or 
controlled by the same claim or site owner covers substantially the 
same land, by reason of the location of one or more mining claims or 
sites on such land, the amendment or relocation of any such mining 
claim or site, or otherwise, such exclusive right of possession shall 
extend to all such mining claims or sites, effective from the time the 
location notice or certificate for the initial mining claim or site was 
posted on such land under applicable State law. The order of location, 
amendment, or relocation of any such mining claims or sites on such 
land shall not affect the validity of any such mining claim or site. 
Such owner of the mining claim or site shall not be required to be in 
actual, physical occupation of such land and shall not be required to 
exclude rival locators from such land. Such exclusive right of 
possession shall be subject to applicable Federal law, including the 
Multiple Mineral Development Act of 1954 (30 U.S.C. 521-31), the 
Materials Act of 1947 (30 U.S.C. 601-604) and the Surface Resources Act 
of 1955 (30 U.S.C. 611-15) to the extent applicable, and shall neither 
enlarge nor diminish any rights of such owner of the mining claim or 
site as against the United States in such land. This paragraph shall 
supersede the common law doctrine of pedis possessio.
    (2) Conflicts over the right of exclusive possession of land 
included in any mining claim or site shall be determined in proceedings 
between owners of mining claims or sites under the provisions of 
section 910 of the Revised Statutes (30 U.S.C. 53) and other applicable 
law, including but not limited to each of the following:
            (A) Any conflict based upon circumstances existing as of 
        the date of enactment of this Act between mining claims or 
        sites located before the date of enactment of this Act, shall 
        be resolved under the law in effect on the day prior to the 
        date of enactment of this Act, including the common law 
        doctrine of pedis possessio.
            (B) Any conflict arising on or after the date of enactment 
        of this Act between mining claims or sites located before, on 
        or after the date of enactment over whether either owner of the 
        mining claim or site has complied with the requirements of this 
        section, shall be resolved under this Act.
    (h) Failure of Co-Owner To Contribute.--Upon the failure of any one 
or more of several co-owners of any mining claim or site to contribute 
such co-owner or owners' portion of any location or maintenance fee 
payable under this section, any co-owner who has paid such fee may, 
after the payment due date, serve the delinquent co-owner or owners 
with notice of such failure in writing or, if such delinquent co-owner 
or owners cannot be located after reasonable efforts, by publication in 
a general circulation newspaper published in a location nearest the 
mining claim or site at least once a week for at least 90 days. If at 
the expiration of 90 days after such notice in writing or by 
publication, any delinquent co-owner fails or refuses to contribute the 
owed portion, such co-owner or owners' interest shall become the 
property of the owner or co-owners who have paid the required fee.
    (i) Location Fee.--The owner of each unpatented mining claim or 
site located on or after the date of enactment of this Act pursuant to 
the general mining laws shall pay to the Secretary, at the time the 
notice or certificate of location is filed with the Bureau of Land 
Management pursuant to subsection 314(b) of the Federal Land Policy and 
Management Act of 1976 (43 U.S.C. 1744(b)), a location fee of $25.00 
per mining claim or site. The full amount of all fees paid under this 
subsection shall be deposited in the General Fund of the Treasury. 
Effective on the date of the enactment of this Act, section 10102 of 
the Omnibus Budget Reconciliation Act of 1993 (107 Stat. 406; 30 U.S.C. 
28g) is repealed.
    (j) Credit Against Maintenance Fee.--(1) Except as provided in 
paragraph (2), the annual maintenance fee payable for any unpatented 
mining claim or site for any assessment year shall be reduced by the 
amount of royalty paid by such claimholder for such mining claim or 
site, or for any contiguous mining claim or site, during the prior 
assessment year.
    (2) Royalties paid during any assessment year prior to the first 
full assessment year commencing after the enactment of this Act shall 
not reduce the amount of any maintenance fee.
    (k) Oil Shale Claims Subject to Claim Maintenance Fee Under Energy 
Policy Act of 1992.--This section shall not apply to any oil shale 
claims for which a fee is required to be paid under paragraph 
2511(e)(2) of the Energy Policy Act of 1992 (30 U.S.C. 242(e)(2)).
    (l) Failure To Comply.--The failure of the owner of the mining 
claim or site to pay any claim maintenance fee or location fee for a 
mining claim or site on or before the date such payment is due under 
this section shall constitute forfeiture of the mining claim or site 
and such mining claim or site shall be null and void, effective as of 
the day after the date such payment is due, except that if such 
maintenance fee or location fee is paid or tendered on or before the 
30th day after such payment was due under subsection of this section, 
such mining claim or site shall not be forfeited or null or void, and 
such maintenance fee or location fee shall be deemed timely paid.
    (m) Amendment of FLPMA Filing Requirements.--(1) Section 314(a) of 
the Federal Land Policy and Management Act of 1976 (43 U.S.C. 1744(a)) 
is hereby repealed.
    (2) Section 314(c) of the Federal Land Policy and Management Act of 
1976 (43 U.S.C. 1744(c)) is amended to read as follows:
    ``(c) Failure To File as Constituting Forfeiture; Defective or 
Untimely Filing.--The failure to timely file the copy of the notice or 
certificate of location as required by subsection (b) shall constitute 
forfeiture of the mining claim and such claim shall be null and void by 
operation of law; except that it shall not be considered a failure to 
file if the notice or certificate of location is defective or not 
timely filed for record under other State or Federal laws permitting or 
requiring the filing or recording thereof, or if the copy of the notice 
or certificate is filed by or on behalf of some but not all of the 
owners of the claim.''.
    (n) Related Persons.--As used in this section, the term ``related 
persons'' includes--
            (1) the spouse and dependent children (as defined in 
        section 152 of the Internal Revenue Code of 1986), of the owner 
        of the mining claim or site; and
            (2) a person controlled by, controlling, or under common 
        control with the owner of the mining claim or site.
    (o) Repeal.--Section 10101 of the Omnibus Budget Reconciliation Act 
of 1993 (107 Stat. 406; 30 U.S.C. 28g) is repealed, effective with 
respect to assessment year commencing after the enactment of this Act.
    (p) Periodic Review of Fee Structure.--Beginning in the year 2005 
and at 10 year intervals thereafter, the Secretary shall review the 
costs incurred by the Secretary to administer mining claims for 
locatable minerals under the general mining laws and the structure and 
level of maintenance and location fees received by the Secretary with 
respect to such claims. The Secretary shall determine if the revenues 
from such fees is adequate to cover such costs, taking inflation and 
other appropriate factors into account. The Secretary shall submit the 
results of each such review to the Congress, together with such 
legislative recommendations as the Secretary deems appropriate.

                 PART 2--FEDERAL OIL AND GAS ROYALTIES

SEC. 9511. SHORT TITLE.

    This part may be cited as the ``Federal Oil and Gas Royalty 
Simplification and Fairness Act of 1995''.

SEC. 9512. DEFINITIONS.

    (a) In General.--Section 3 of the Federal Oil and Gas Royalty 
Management Act of 1982 (30 U.S.C. 1701 et seq.) is amended--
            (1) by amending paragraph (7) to read as follows:
            ``(7) `lessee' means any person to whom the United States, 
        an Indian tribe, or an Indian allottee issues a lease or any 
        person to whom operating rights have been assigned;''; and
            (2) by striking ``and'' at the end of paragraph (15), by 
        striking the period at the end of paragraph (16) and inserting 
        a semicolon, and by adding at the end the following:
            ``(17) `adjustment' means an amendment to a previously 
        filed report on an obligation, and any additional payment or 
        credit, if any, applicable thereto, to rectify an underpayment 
        or overpayment on a lease;
            ``(18) `administrative proceeding' means any agency process 
        in which a demand, decision or order issued by the Secretary is 
        subject to appeal or has been appealed;
            ``(19) `assessment' means any fee or charge levied or 
        imposed by the Secretary or the United States other than--
                    ``(A) the principal amount of any royalty, minimum 
                royalty, rental, bonus, net profit share or proceed of 
                sale;
                    ``(B) any interest; or
                    ``(C) any civil or criminal penalty;
            ``(20) `commence' means--
                    ``(A) with respect to a judicial proceeding, the 
                service of a complaint, petition, counterclaim, 
                crossclaim, or other pleading seeking affirmative 
                relief or seeking credit or recoupment; or
                    ``(B) with respect to a demand, the receipt by the 
                Secretary or a lessee of the demand;
            ``(21) `credit' means the application of an overpayment (in 
        whole or in part) against an obligation which has become due to 
        discharge, cancel or reduce the obligation;
            ``(22) `demand' means--
                    ``(A) an order to pay issued by the Secretary; or
                    ``(B) a separate written request by a lessee which 
                asserts an obligation due the lessee,
        but does not mean any royalty or production report, or any 
        information contained therein, required by the Secretary;
            ``(23) `obligation' means--
                    ``(A) any duty of the Secretary or the United 
                States--
                            ``(i) to take oil or gas royalty in kind; 
                        or
                            ``(ii) to pay, refund, offset, or credit 
                        monies including but not limited to--
                                    ``(I) the principal amount of any 
                                royalty, minimum royalty, rental, 
                                bonus, net profit share or proceed of 
                                sale; or
                                    ``(II) any interest;
                    ``(B) any duty of a lessee--
                            ``(i) to deliver oil or gas royalty in 
                        kind; or
                            ``(ii) to pay, offset or credit monies 
                        including but not limited to--
                                    ``(I) the principal amount of any 
                                royalty, minimum royalty, rental, 
                                bonus, net profit share or proceed of 
                                sale;
                                    ``(II) any interest;
                                    ``(III) any penalty; or
                                    ``(IV) any assessment,
        which arises from or relates to any lease administered by the 
        Secretary for, or any mineral leasing law related to, the 
        exploration, production and development of oil or gas on 
        Federal lands or the Outer Continental Shelf;
            ``(24) `order to pay' means a written order issued by the 
        Secretary or the United States which--
                    ``(A) asserts a definite and quantified obligation; 
                and
                    ``(B) specifically identifies the obligation by 
                lease, production month and amount of such obligation 
                ordered to be paid, as well as the reason or reasons 
                such obligation is claimed to be due,
        but such term does not include any other communication or 
        action by or on behalf of the Secretary or the United States;
            ``(25) `overpayment' means any payment by a lessee in 
        excess of an amount legally required to be paid on an 
        obligation and includes the portion of any estimated payment 
        for a production month that is in excess of the royalties due 
        for that month;
            ``(26) `payment' means satisfaction, in whole or in part, 
        of an obligation;
            ``(27) `penalty' means a statutorily authorized civil fine 
        levied or imposed by the Secretary or the United States for a 
        violation of this Act, any mineral leasing law, or a term or 
        provision of a lease administered by the Secretary;
            ``(28) `refund' means the return of an overpayment by the 
        Secretary or the United States by the drawing of funds from the 
        United States Treasury;
            ``(29) `State concerned' means, with respect to a lease, a 
        State which receives a portion of royalties under this Act from 
        such lease; and
            ``(30) `underpayment' means any payment or nonpayment by a 
        lessee that is less than the amount legally required to be paid 
        on an obligation.''.
    (b) Lessee Liability.--Section 102(a) of the Federal Oil and Gas 
Royalty Management Act of 1982 (30 U.S.C. 1712(a)) is amended to read 
as follows:
    ``(a) A lessee who is required to make any royalty or other payment 
under a lease or under the mineral leasing laws, shall make such 
payments in the time and manner as may be specified by the Secretary. A 
lessee may designate a person to act on the lessee's behalf and shall 
notify the Secretary in writing of such designation. The person to whom 
the United States issues a lease or the person by whom operating rights 
are currently owned, but not both, shall remain primarily liable for 
its obligations.''.

SEC. 9513. LIMITATION PERIODS.

    (a) In General.--The Federal Oil and Gas Royalty Management Act of 
1982 (30 U.S.C. 1701 et seq.) is amended by adding after section 114 
the following new section:

``SEC. 115. LIMITATION PERIODS AND AGENCY ACTIONS.

    ``(a) In General.--A judicial proceeding or demand which arises 
from, or relates to an obligation, shall be commenced within six years 
from the date on which the obligation becomes due and if not so 
commenced shall be barred, except as otherwise provided by this 
section.
    ``(b) Obligation Becomes Due.--
            ``(1) In general.--For purposes of this Act, an obligation 
        becomes due when the right to enforce the obligation is fixed.
            ``(2) Royalty obligations.--The right to enforce the 
        royalty obligation for a production month for a lease is fixed 
        for purposes of this Act on the last day of the calendar month 
        following the month in which oil or gas is produced.
            ``(3) Royalty payment.--The right to collect a royalty 
        payment for an obligation for a production month for a lease is 
        fixed for purposes of this Act on the last day of the second 
        calendar month following the month in which gas is produced, to 
        be phased in by the Secretary in a manner which does not have a 
        negative impact on the Federal budget.
    ``(c) Tolling of Limitation Period.--The running of the limitation 
period under subsection (a) shall not be suspended, tolled, extended, 
or enlarged for any obligation for any reason by any action, including 
an action by the Secretary or the United States, other than the 
following:
            ``(1) Tolling agreement.--A written agreement executed 
        during the limitation period between the Secretary and a lessee 
        which tolls the limitation period for the amount of time during 
        which the agreement is in effect.
            ``(2) Subpoena.--The issuance of a subpoena in accordance 
        with the provisions of section 107(c) shall toll the limitation 
        period with respect to the obligation which is the subject of a 
        subpoena only for the period beginning on the date the lessee 
        receives the subpoena and ending on the date on which (A) the 
        lessee has produced such subpoenaed records for the subject 
        obligation, (B) the Secretary receives written notice that the 
        subpoenaed records for the subject obligation are not in 
        existence or are not in the lessee's possession or control, or 
        (C) a court has determined in a final decision that such 
        records are not required to be produced, whichever occurs 
        first.
            ``(3) Fraud or concealment.--Any fraud or concealment by a 
        lessee in an attempt to defeat or evade an obligation in which 
        case the limitation period shall be tolled for the period of 
        such fraud or such concealment.
            ``(4) Tolling request.--A written tolling request from a 
        lessee based upon the lessee's representation that the lessee's 
        entitlement to an overpayment has not been finally determined. 
        The limitation period shall be tolled pursuant to this 
        paragraph from the date the Secretary receives the tolling 
        request until the earlier of the end of the requested period or 
        12 months after the date the Secretary receives the tolling 
        request, but is subject to successive 12-month renewals by the 
        lessee made prior to the expiration of the then applicable 12-
        month period. The tolling request shall be sufficient if it 
        identifies--
                    ``(A) the person who made the potential 
                overpayment;
                    ``(B) the leases and production months involved in 
                the potential overpayment; and
                    ``(C) the reasons the lessee believes that it may 
                later be entitled to a refund of the overpayment.
            ``(5) Order to perform a restructured accounting.--The 
        issuance of a notice under section 107(d)(4) that the lessee 
        has not adequately performed a restructured accounting shall 
        toll the limitation period with respect to the obligation which 
        is the subject of the notice only for the period beginning on 
        the date the lessee receives the notice and ending on the date 
        on which (A) the Secretary receives written notice the 
        accounting or otherrequirement has been performed, or (B) a 
        court has determined in a final decision that the lessee is not 
        required to perform the accounting, whichever occurs first.
    ``(d) Termination of Limitations Period.--The limitations period 
shall be terminated in the event--
            ``(1) the Secretary has notified the lessee in writing that 
        a time period is closed to further audit; or
            ``(2) the Secretary and a lessee have so agreed in writing.
    ``(e) Final Agency Action.--
            ``(1) 3-year period.--The Secretary shall issue a final 
        decision in any administrative proceeding, including any 
        administrative proceedings pending on the date of enactment of 
        the Federal Oil and Gas Royalty Simplification and Fairness Act 
        of 1995, within three years from the date such proceeding was 
        initiated or three years from the date of such enactment, 
        whichever is later. The three-year period may be extended by 
        any period of time agreed upon in writing by the Secretary and 
        the lessee.
            ``(2) Effect of failure to issue decision.--
                    ``(A) In general.--If no such decision has been 
                issued by the Secretary within the three-year period 
                referred to in paragraph (1)--
                            ``(i) the Secretary shall be deemed to have 
                        issued and granted a decision in favor of the 
                        lessee or lessees as to any nonmonetary 
                        obligation and any monetary obligation the 
                        principal amount of which is less than $2,500; 
                        and
                            ``(ii) the Secretary shall be deemed to 
                        have issued a final decision in favor of the 
                        Secretary, which decision shall be deemed to 
                        affirm those issues for which the agency 
                        rendered a decision prior to the end of such 
                        period, as to any monetary obligation the 
                        principal amount of which is $2,500 or more, 
                        and the lessee shall have a right to a de novo 
                        judicial review of such deemed final decision.
                    ``(B) No precedential effect on other 
                proceedings.--Deemed decisions under subparagraph (A) 
                shall have no precedential effect in any judicial or 
                administrative proceeding or for any other purpose.
    ``(f) Administrative Settlement.--During the pendency of any 
administrative proceeding, the parties shall hold at least one 
settlement consultation for the purpose of discussing disputed matters 
between the parties. For purposes of settlement, the Secretary may take 
such action as is appropriate to compromise and settle a disputed 
obligation, including interest and allowing offsetting of obligations 
among leases. The Secretary and the State concerned shall seek to 
resolve disputes with a lessee in as expeditious a manner as possible, 
through settlement negotiations and other alternative dispute 
resolution processes methods. If any dispute involving an obligation 
due is not resolved by the end of the six-year period beginning on the 
date the obligation became due, the amount of interest otherwise 
payable with respect to the obligation shall accrue after such six-year 
period at the rate--
            ``(1) for purposes of section 111(h), reduced each year 
        thereafter by two additional percentage points from the rate in 
        effect under this subsection for the previous year (but not 
        less than zero); and
            ``(2) for purposes of section 111(a), reduced each year 
        thereafter by one additional percentage point from the rate in 
        effect under this subsection for the previous year (but not 
        less than zero).
    ``(g) Limitation on Certain Actions.--When an action on or 
enforcement of an obligation under the mineral leasing laws is barred 
under this section--
            ``(1) no other or further action regarding that obligation, 
        including (but not limited to) the issuance of any order, 
        request, demand or other communication seeking any document, 
        accounting, determination, calculation, recalculation, payment, 
        principal, interest, assessment, or penalty or the initiation, 
        pursuit or completion of an audit with respect to that 
        obligation may be taken; and
            ``(2) no other equitable or legal remedy, whether under 
        statute or common law, with respect to an action on or an 
        enforcement of said obligation may be pursued.
    ``(h) Judicial Review.--In the event a demand subject to this 
section is timely commenced, a judicial proceeding challenging the 
final agency action with respect to such demand shall be deemed timely 
so long as such judicial proceeding is commenced within 180 days from 
receipt of notice by the lessee of the final agency action.
    ``(i) Implementation of Final Decision.--In the event a judicial 
proceeding or demand subject to this section is timely commenced and 
thereafter the limitation period in this section lapses during the 
pendency of such proceeding, any party to such proceeding shall not be 
barred from taking such action as is required or necessary to implement 
a final unappealable judicial or administrative decision, including any 
action required or necessary to implement such decision by the recovery 
or recoupment of an underpayment or overpayment by means of refund or 
credit.
    ``(j) Stay of Payment Obligation Pending Review.--Any party ordered 
by the Secretary or the United States to pay any obligation (other than 
an assessment) shall be entitled to a stay of such payment without bond 
or other surety instrument pending an administrative or judicial 
proceeding if the party periodically demonstrates to the satisfaction 
of the Secretary that such party is financially solvent or otherwise 
able to pay the obligation. In the event the party is not able to so 
demonstrate, the Secretary may require a bond or other surety 
instrument satisfactory to cover the obligation. Any party ordered by 
the Secretary to pay an assessment shall be entitled to a stay without 
bond or other surety instrument.
    ``(k) Inapplicability of the Other Statutes of Limitation.--The 
limitations set forth in sections 2401, 2415, 2416, and 2462 of title 
28, United States Code, section 42 of the Mineral Leasing Act (30 
U.S.C. 226-2) and section 3716 of title 31, United States Code, shall 
not apply to any obligation to which this Act applies.''.
    (b) Subpoena.--Section 107 of the Federal Oil and Gas Royalty 
Management Act of 1982 (30 U.S.C. 1717) is amended by adding at the end 
the following:
    ``(c) Rules Regarding Issuance of Subpoena Relating to Reporting 
and Payment of an Obligation Due.--
            ``(1) In general.--A subpoena which requires a lessee to 
        produce records necessary to determine the proper reporting and 
        payment of an obligation due the Secretary may be issued under 
        this section only by an Assistant Secretary of the Interior and 
        an acting Assistant Secretary of the Interior who is a schedule 
        C employee (as defined by section 213.3301 of title 5, Code of 
        Federal Regulations) and may not be delegated.
            ``(2) Prior written request required.--A subpoena described 
        in paragraph (1) may only be issued against a lessee during the 
        limitation period provided in section 115 and only after the 
        Secretary has in writing requested the records from the lessee 
        related to the obligation which is the subject of the subpoena 
        and has determined that--
                    ``(A) the lessee has failed to respond within a 
                reasonable period of time to the Secretary's written 
                request for such records necessary for an audit, 
                investigation or other inquiry made in accordance with 
                the Secretary's responsibilities under this Act;
                    ``(B) the lessee has in writing denied the 
                Secretary's written request to produce such records in 
                the lessee's possession or control necessary for an 
                audit, investigation or other inquiry made in 
                accordance with the Secretary's responsibilities under 
                this Act; or
                    ``(C) the lessee has unreasonably delayed in 
                producing records necessary for an audit, investigation 
                or other inquiry made in accordance with the 
                Secretary's responsibilities under this Act after the 
                Secretary's written request.
            ``(3) Reasonable period for compliance with written 
        request.--In seeking records, the Secretary shall afford the 
        lessee a reasonable period of time after a written request by 
        the Secretary in which to provide such records prior to the 
        issuance of any subpoena.''.
    (c) Restructured Accounting.--Section 107 of the Federal Oil and 
Gas Royalty Management Act of 1982 (30 U.S.C. 1717), as amended by 
subsection (b) of this section, is amended by adding at the end the 
following:
    ``(d) Restructured Accounting.--
            ``(1) In general.--The Secretary shall issue an order to 
        perform a restructured accounting when the Secretary determines 
        during an in-depth audit of a lessee that the lessee should 
        recalculate royalty due on an obligation based upon the 
        Secretary's finding that the lessee has made identified 
        underpayments or overpayments which are demonstrated by the 
        Secretary to be based upon repeated, systemic reporting errors 
        for a significant number of leases or a single lease for a 
        significant number of reporting months with the same type of 
        error which constitutes a pattern of violations and which are 
        likely to result in either significant underpayments or 
        overpayments.
            ``(2) Delegation.--The power of the Secretary to issue an 
        order to perform a restructured accounting may not be delegated 
        below the most senior career professional position having 
        responsibility for the royalty management program, which 
        position is currently designated as the `Associate Director for 
        Royalty Management'. An order to perform a restructured 
        accounting shall--
                    ``(A) be issued within a reasonable period of time 
                from when the audit identifies the systemic, reporting 
                errors;
                    ``(B) specify the reasons and factual bases for 
                such order; and
                    ``(C) be specifically identified as an `order to 
                perform a restructured accounting'.
            ``(3) Order to perform.--An order to perform a restructured 
        accounting shall not include any other communication or action 
        by or on behalf of the Secretary or the United States.
            ``(4) Notice.--If a lessee fails to adequately perform a 
        restructured accounting pursuant to this subsection, a notice 
        shall be issued to the lessee that the restructured accounting 
        has not been adequately performed. Such notice may be issued 
        under this section only by an Assistant Secretary of the 
        Interior or an acting Assistant Secretary of the Interior who 
        is a schedule C employee (as defined by section 213.3301 of 
        title 5, Code of Federal Regulations) and may not be 
        delegated.''.
    (d) State Suits.--Section 204 of the Federal Oil and Gas Royalty 
Management Act of 1982 (30 U.S.C. 1751) is amended by adding at the end 
the following:
    ``(d) With respect to an obligation, a State bringing an action 
under this section shall enjoy no greater rights than the Secretary 
enjoys under this Act.''.
    (e) Clerical Amendment.--The table of contents in section 1 of such 
Act (30 U.S.C. 1701) is amended by adding after the item relating to 
section 114 the following new item:

``Sec. 115. Limitation periods and agency actions.''.

SEC. 9514. ADJUSTMENT AND REFUNDS.

    (a) In General.--The Federal Oil and Gas Royalty Management Act of 
1982 (30 U.S.C. 1701 et seq.) is amended by adding after section 111 
the following new section:

``SEC. 111A. ADJUSTMENTS AND REFUNDS.

    ``(a) Adjustments.--
            ``(1) If, during the adjustment period, a lessee determines 
        that an adjustment or refund request is necessary to correct an 
        underpayment or overpayment of an obligation, the lessee shall 
        make such adjustment or request a refund within a reasonable 
        period of time and only during the adjustment period. The 
        filing of a royalty report which reflects the underpayment or 
        overpayment of an obligation shall constitute prior written 
        notice to the Secretary of an adjustment.
            ``(2)(A) For any adjustment, the lessee shall calculate and 
        report the interest due attributable to such adjustment at the 
        same time the lessee adjusts the principal amount of the 
        subject obligation, except as provided by subparagraph (B).
            ``(B) In the case of a lessee on whom the Secretary 
        determines that subparagraph (A) would impose a hardship, the 
        Secretary shall calculate the interest due and notify the 
        lessee within a reasonable time of the amount of interest due, 
        unless such lessee elects to calculate and report interest in 
        accordance with subparagraph (A).
            ``(3) An adjustment or a request for a refund for an 
        obligation may be made after the adjustment period only upon 
        written notice to and approval by the Secretary during an audit 
        of the period which includes the production month for which the 
        adjustment is being made. If an overpayment is identified 
        during an audit, then the Secretary shall allow a credit or 
        refund in the amount of the overpayment.
            ``(4) For purposes of this section, the adjustment period 
        for any obligation shall be the five-year period following the 
        date on which an obligation became due. The adjustment period 
        shall be suspended, tolled, extended, enlarged, or terminated 
        by the same actions as the limitation period in section 115.
    ``(b) Refunds.--
            ``(1) In general.--A request for refund is sufficient if 
        it--
                    ``(A) is made in writing to the Secretary and, for 
                purposes of section 115, is specifically identified as 
                a demand;
                    ``(B) identifies the person entitled to such 
                refund;
                    ``(C) provides the Secretary information that 
                reasonably enables the Secretary to identify the 
                overpayment for which such refund is sought; and
                    ``(D) provides the reasons why the payment was an 
                overpayment.
            ``(2) Payment by secretary of the treasury.--The Secretary 
        shall certify the amount of the refund to be paid under 
        paragraph (1) to the Secretary of the Treasury who shall make 
        such refund. Such refund shall be paid from amounts received as 
        current receipts from sales, bonuses, royalties (including 
        interest charges collected under this section) and rentals of 
        the public lands and the Outer Continental Shelf under the 
        provisions of the Mineral Leasing Act and the Outer Continental 
        Shelf Lands Act, which are not payable to a State or the 
        Reclamation Fund. The portion of any such refund attributable 
        to any amounts previously disbursed to a State, the Reclamation 
        Fund, or any recipient prescribed by law shall be deducted from 
        the next disbursements to that recipient made under the 
        applicable law. Such amounts deducted from subsequent 
        disbursements shall be credited to miscellaneous receipts in 
        the Treasury.
            ``(3) Payment period.--A refund under this subsection shall 
        be paid or denied (with an explanation of the reasons for the 
        denial) within 120 days of the date on which the request for 
        refund is received by the Secretary. Such refund shall be 
        subject to later audit by the Secretary and subject to the 
        provisions of this Act.
            ``(4) Prohibition against reduction of refunds or 
        credits.--In no event shall the Secretary directly or 
        indirectly claim any amount or amounts against, or reduce any 
        refund or credit (or interest accrued thereon) by the amount of 
        any obligation the enforcement of which is barred by section 
        115.''.
    (b) Clerical Amendment.--The table of contents in section 1 of such 
Act (30 U.S.C. 1701) is amended by adding after the item relating to 
section 111 the following new item:

``Sec. 111A. Adjustments and refunds.''.

SEC. 9515. REQUIRED RECORDKEEPING.

    Section 103 of the Federal Oil and Gas Royalty Management Act of 
1982 (30 U.S.C. 1713(b)) is amended by adding at the end the following:
    ``(c) Records required by the Secretary for the purpose of 
determining compliance with any applicable mineral leasing law, lease 
provision, regulation or order with respect to oil and gas leases from 
Federal lands or the Outer Continental Shelf shall be maintained for 
the same period of time during which a judicial proceeding or demand 
may be commenced under section 115(a). If a judicial proceeding or 
demand is timely commenced, the record holder shall maintain such 
records until the final nonappealable decision in such judicial 
proceeding is made, or with respect to that demand is rendered, unless 
the Secretary authorizes in writing an earlier release of the 
requirement to maintain such records. Notwithstanding anything herein 
to the contrary, under no circumstance shall a record holder be 
required to maintain or produce any record relating to an obligation 
for any time period which is barred by the applicable limitation in 
section 115.''.

SEC. 9516. ROYALTY INTEREST, PENALTIES, AND PAYMENTS.

    (a) Period.--Section 111(f) of the Federal Oil and Gas Royalty 
Management Act of 1982 (30 U.S.C. 1721(f)) is amended to read as 
follows:
    ``(f) Upon a determination that it will further the effective and 
efficient performance of his duties and responsibilities, the Secretary 
may waive or forego such interest in whole or in part. Interest shall 
be charged under this section only for the number of days a payment is 
late.''.
    (b) Lessee Interest.--Section 111 of the Federal Oil and Gas 
Royalty Management Act of 1982 (30 U.S.C. 1721) is amended by adding 
after subsection (g) the following:
    ``(h) Interest shall be allowed and the Secretary shall pay or 
credit such interest on any overpayment, with such interest to accrue 
from the date such overpayment was made, at the rate obtained by 
applying the provisions of subparagraphs (A) and (B) of section 
6621(a)(1) of the Internal Revenue Code of 1986. Interest which has 
accrued on any overpayment may be applied to reduce an underpayment. 
This subsection applies to overpayments made later than six months 
after the date of enactment of this subsection or September 1, 1996, 
whichever is later. Such interest shall be paid from amounts received 
as current receipts from sales, bonuses, royalties (including interest 
charges collected under this section) and rentals of the public lands 
and the Outer Continental Shelf under the provisions of the Mineral 
Leasing Act, and the Outer Continental Shelf Lands Act, which are not 
payable to a State or the Reclamation Fund. The portion of any such 
interest payment attributable to any amounts previously disbursed to a 
State, the Reclamation Fund, or any other recipient designated by law 
shall be deducted from the next disbursements to that recipient made 
under the applicable law. Such amounts deducted from subsequent 
disbursements shall be credited to miscellaneous receipts in the 
Treasury.''.
    (c) Limitation on Interest.--Section 111 of such Act, as amended by 
subsection (b) of this Act, is further amended by adding at the end the 
following:
    ``(i) Upon a determination by the Secretary that an excessive 
overpayment (based upon all obligations of a lessee for a given 
reporting month) was made for the sole purpose of receiving interest, 
interest shall not be paid on the excessive amount of such overpayment. 
For purposes of this Act, an `excessive overpayment' shall be the 
amount that any overpayment a lessee pays for a given reporting month 
(excluding payments for demands for obligations as a result of judicial 
or administrative proceedings for settlement agreements and for other 
similar payments) for the aggregate of all of its Federal leases 
exceeds 25 percent of the total royalties paid that month for those 
leases.''.
    (d) Estimated Payment.--Section 111 of such Act, as amended by 
subsections (b) and (c) of this Act, is further amended by adding at 
the end the following:
    ``(j) A lessee may make a payment for the approximate amount of 
royalties (hereinafter in this subsection `estimated payment') that 
would otherwise be due to the Secretary for such lease to avoid 
underpayment or nonpayment interest charges. When an estimated payment 
is made, actual royalties become due at the end of the month following 
the period covered by the estimated payment. If the lessee makes a 
payment for such actual royalties, the lessee may apply the estimated 
payment to future royalties. Any estimated payment may be adjusted, 
recouped, or reinstated at any time by the lessee.''.
    (e) Volume Allocation of Oil and Gas Production.--Section 111 of 
such Act (30 U.S.C. 1721), as amended by subsections (b) through (d) of 
this Act, is amended by adding at the end the following:
    ``(k)(1) Except as otherwise provided by this subsection--
            ``(A) a lessee of a lease in a unit or communitization 
        agreement which contains only Federal leases with the same 
        royalty rate and funds distribution must report and pay 
        royalties on oil and gas production for each production month 
        based on the actual volume of production sold by or on behalf 
        of that lessee;
            ``(B) a lessee of a lease in any other unit or 
        communitization agreement must report and pay royalties on oil 
        and gas production for each production month based on the 
        volume of oil and gas produced from such agreement and 
        allocated to the lease in accordance with the terms of the 
        agreement; and
            ``(C) a lessee of a lease that is not contained in a unit 
        or communitization agreement must report and pay royalties on 
        oil and gas production for each production month based on the 
        actual volume of production sold by or on behalf of that 
        lessee.
    ``(2) This subsection applies only to requirements for reporting 
and paying royalties. Nothing in this subsection is intended to alter a 
lessee's liability for royalties on oil or gas production based on the 
share of production allocated to the lease in accordance with the terms 
of the lease, a unit or communitization agreement, or any other 
agreement.
    ``(3) For any unit or communitization agreement, if all lessees 
contractually agree to an alternative method of royalty reporting and 
payment, the lessees may submit such alternative method to the 
Secretary for approval and make payments in accordance with such 
approved alternative method so long as such alternative method does not 
reduce the amount of the royalty obligation.
    ``(4) The Secretary shall grant an exception from the reporting and 
payment requirements for marginal properties by allowing for any 
calendar year or portion thereof royalties to be paid each month based 
on the volume of production sold. Interest shall not accrue on the 
difference for the entire calendar year or portion thereof between the 
amount of oil and gas actually sold and the share of production 
allocated to the lease until the beginning of the month following 
calendar year or portion thereof. Any additional royalties due or 
overpaid royalties and associated interest shall be paid, refunded, or 
credited within six months after the end of each calendar year in which 
royalties are paid based on volumes of production sold. For the purpose 
of this subsection, the term `marginal property' means a lease that 
produces on average the combined equivalent of less than 15 barrels of 
oil per day or 90 thousand cubic feet of gas per day, or a combination 
thereof, determined by dividing the average daily production of 
domestic crude oil and domestic natural gas from producing wells on 
such lease by the number of such wells, unless the Secretary, together 
with the State concerned, determines that a different production is 
more appropriate.
    ``(5) Not later than two years after the date of the enactment of 
this subsection, the Secretary shall issue any appropriate demand for 
all outstanding royalty payment disputes regarding who is required to 
report and pay royalties on production from units and communitization 
agreements outstanding on the date of the enactment of this subsection, 
and collect royalty amounts owed on such production.''.
    (f) Production Allocation.--Section 111 of such Act (30 U.S.C. 
1721), as amended by subsections (b) through (e) of this Act, is 
amended by adding at the end the following:
    ``(l) The Secretary shall issue all determinations of allocations 
of production for units and communitization agreements within 120 days 
of a request for determination. If the Secretary fails to issue a 
determination within such 120-day period, the Secretary shall waive 
interest due on obligations subject to the determination until the end 
of the month following the month in which the determination is made.''.

SEC. 9517. LIMITATION ON ASSESSMENTS.

    Section 111 of the Federal Oil and Gas Royalty Management Act of 
1982 (30 U.S.C. 1721), as amended by section 9516, is further amended 
by adding at the end the following:
    ``(m)(1) After the date of enactment of this subsection, the 
Secretary shall not impose any assessment for any late payment or 
underpayment. After the date of enactment of this subsection, the 
Secretary may impose an assessment only for erroneous reports submitted 
by lessees subject to the limitations of paragraph (2). Nothing in this 
section shall prohibit the Secretary from imposing penalties or 
interest under other sections of this Act for late payments or 
underpayments.
    ``(2) No assessment for erroneous reports shall be imposed for 18 
months following the date of enactment of this subsection, or until the 
Secretary issues a final rule which provides for imposition of an 
assessment only on a lessee who chronically submits erroneous reports 
and which establishes what constitutes chronic errors for a lessee, 
whichever is later. However, if the Secretary determines during that 
18-month period that the reporting error rate for all reporters for all 
Federal leases has increased by one-third for three consecutive report 
months for either production reporting or royalty reporting over the 12 
months preceding the date of enactment of this subsection, the 
Secretary may impose an assessment for erroneous reports only for the 
increased category of report under regulations in effect on the date of 
enactment of this subsection.''.

SEC. 9518. ALTERNATIVES FOR MARGINAL PROPERTIES.

    (a) In General.--The Federal Oil and Gas Royalty Management Act of 
1982 (30 U.S.C. 1701 et seq.), as amended by section 9513 of this Act, 
is further amended by adding at the end the following:

``SEC. 116. ALTERNATIVES FOR MARGINAL PROPERTIES.

    ``(a) Selling the Revenue Stream.--
            ``(1) In general.--Notwithstanding the provisions of any 
        lease to the contrary, upon request of the lessee or a State 
        under section 205(g), the Secretary shall authorize a lessee 
        for a marginal property and for a lease, the administration of 
        which is not cost-effective for the Secretary to administer, to 
        make a prepayment in lieu of royalty payments under the lease 
        for the remainder of the lease term. For the purposes of this 
        section, the term `marginal property' has the same meaning 
        given such term in section 111(k)(4), unless the Secretary, 
        together with each State in which such marginal production 
        occurs, determines that a different definition of marginal 
        property better achieves the purpose of this section.
            ``(2) Marginal properties.--For marginal properties, 
        prepayments under paragraph (1) shall begin--
                    ``(A) in the case of those properties producing on 
                average $500 or less per month in total royalties to 
                the United States, two years after the date of the 
                enactment of this section;
                    ``(B) in the case of those properties producing on 
                average more than $500 but $1,000 or less per month in 
                total royalties to the United States, three years after 
                the date of the enactment of this section;
                    ``(C) in the case of those properties producing on 
                average more than $1,000 but $1,500 or less per month 
                in total royalties to the United States, four years 
                after the date of the enactment of this section; and
                    ``(D) in the case of those properties not described 
                in subparagraphs (A) through (C), five years after the 
                date of the enactment of this section.
            ``(3) Administration not cost-effective.--For a lease, the 
        administration of which is not cost-effective for the Secretary 
        to administer, prepayments under paragraph (1) shall begin on 
        the date of the enactment of this section.
            ``(4) Satisfaction of royalty obligation.--A lessee who 
        makes a prepayment under this section shall have satisfied in 
        full its obligation to pay royalty on production from the lease 
        or a portion of a lease and shall not be required to submit any 
        royalty reports to the Secretary. The prepayment shall be 
        shared by the Secretary with any State or other recipient to 
        the same extent as any royalty payment for such lease.
            ``(5) Valuation.--The prepayment authorized under this 
        section shall only occur if the Secretary, the State concerned, 
        and the lessee determine that such prepayment is based on the 
        present value of the projected remaining royalties from the 
        production from the lease, based on appropriate nominal 
        discount rate for a comparable term. Prior to accepting such 
        prepayment, the Secretary and State concerned shall agree that 
        such prepayment is in the best interest of the United States 
        and the State concerned.
    ``(b) Alternative Accounting and Auditing Requirements.--
            ``(1) In general.--Within one year after the date of the 
        enactment of this section, for the marginal properties 
        referenced in subsection (a)(1), the Secretary shall provide 
        accounting, reporting, and auditing relief that will encourage 
        lessees to continue to produce and develop such properties: 
        Provided, That such relief will only be available to lessees in 
        a State that concurs. Prior to granting such relief, the 
        Secretary and the State concerned shall agree that the type of 
        marginal wells and relief provided under this paragraph is in 
        the best interest of the United States and the State concerned.
            ``(2) Payment date.--For leases subject to this section, 
        the Secretary may allow royalties to be paid later than the 
        time specified in the lease.''.
    (b) Clerical Amendment.--The table of contents in section 1 of such 
Act (30 U.S.C. 1701) is amended by adding after the item relating to 
section 115 the following new item:

``Sec. 116. Alternatives for marginal properties.''.

SEC. 9519. ROYALTY IN KIND.

    (a) In General.--
            (1) OCS.--Section 27(a)(1) of the Outer Continental Shelf 
        Lands Act (43 U.S.C. 1353(a)(1)) is amended by adding at the 
        end the following:
``Any royalty or net profit share of oil or gas accruing to the United 
States under any such lease, at the Secretary's option, may be taken in 
kind at or near the lease (unless the lease expressly provides for 
delivery at a different location) upon prior written notice given 
reasonably in advance by the Secretary to the lessee. Once the United 
States has commenced taking royalty in kind, it shall continue to do so 
until a reasonable time after the Secretary has provided written notice 
reasonably in advance to the lessee that it will resume taking royalty 
in value. Delivery of royalty in kind by the lessee shall satisfy in 
full the lessee's royalty obligation. Once the oil or gas is delivered, 
the lessee shall not be subject to the reporting and recordkeeping 
requirements under section 103 for its share of oil and gas production 
other than records necessary to verify the quantity of oil or gas 
delivered.''.
            (2) Onshore.--Section 36 of the Mineral Leasing Act (30 
        U.S.C. 192) is amended by adding at the end the following 
        undesignated paragraph:
    ``Notwithstanding the provisions of the previous paragraph, any 
royalty or net profit share of oil or gas accruing to the United States 
under any lease issued or maintained by the Secretary for the 
exploration, production and development of oil and gas on Federal 
lands, at the Secretary's option, may be taken in kind at or near the 
lease (unless the lease expressly provides for delivery at a different 
location) after prior written notice given reasonably in advance by the 
Secretary to the lessee. Once the United States has commenced taking 
royalty in kind, it shall continue to do so until a reasonable time 
after the Secretary has provided written notice reasonably in advance 
to the lessee that it will resume taking royalty in value. Delivery of 
royalty in kind by the lessee shall satisfy in full the lessee's 
royalty obligation. Once the oil or gas is delivered, the lessee shall 
not be subject to the reporting and recordkeeping requirements under 
section 103 for its share of oil and gas production other than records 
necessary to verify the quantity of oil or gas delivered.''.
    (b) Sale.--Sections 27(b)(1) and (c)(1) of the Outer Continental 
Shelf Lands Act (43 U.S.C. 1353(c)(1)) are each amended by striking 
``competitive bidding for not more than its regulated price, or, if no 
regulated price applies, not less than its fair market value'' and 
inserting ``competitive bidding or private sale''.

SEC. 9520. ROYALTY SIMPLIFICATION AND COST-EFFECTIVE AUDIT AND 
                    COLLECTION REQUIREMENTS.

    (a) In General.--Section 101 of the Federal Oil and Gas Royalty 
Management Act of 1982 (30 U.S.C. 1711) is amended by adding at the end 
the following:
    ``(d)(1) For the purpose of reducing costs and increasing net 
royalties to the United States and the States, the Secretary, in 
consultation with States concerned, shall, within one year after the 
date of the enactment of this subsection, streamline and simplify 
current royalty management requirements and practices, including 
royalty reporting, instructions, audits and collections. This 
streamlining and simplification shall specifically include--
            ``(A) elimination of all unnecessary royalty and production 
        reports;
            ``(B) modification and simplification of remaining reports 
        and associated instructions to eliminate redundant or 
        unnecessary reports and information that are provided or can be 
        obtained from other required reports, forms, computer databases 
        or government agencies;
            ``(C) elimination or modifications of accounting, 
        reporting, audit and collection requirements that are not cost-
        effective, particularly those associated with de minimis 
        monetary amounts;
            ``(D) implementation of specific recommendations and 
        comments contained in Secretarial sponsored teams, rulemakings, 
        and studies or those participated in by the Secretary to the 
        extent these recommendations simplify and streamline royalty 
        management requirements without adversely affecting the 
        Secretary's ability to meet obligations under this Act or other 
        mineral leasing statutes;
            ``(E) recommendations and comments submitted by interested 
        parties to the extent these recommendations and comments 
        simplify and streamline royalty management requirements without 
        adversely affecting the Secretary's ability to meet obligations 
        under this Act or other mineral leasing statutes.
    ``(2) The Secretary shall submit to the Congress a progress report 
on the implementation of this section within six months from date of 
enactment of this Act, and a final report within 12 months from date of 
enactment of this Act. These reports shall include--
            ``(A) a description of the extent to which the Secretary 
        has implemented the requirements in paragraph (1), including a 
        list of specific initiatives implemented;
            ``(B) a list and description of additional initiatives 
        identified by the Secretary to simplify and streamline royalty 
        management requirements and practices; and
            ``(C) cost savings of implemented initiatives including 
        impact on net-receipts sharing for States.
    ``(3) If the Secretary and the State concerned determines that the 
cost of accounting and auditing for and collecting of any obligation 
due for any oil and gas production exceeds the amount of the obligation 
to be collected, the Secretary shall waive such obligation.
    ``(4) The Secretary and the State concerned shall not perform 
accounting, reporting, or audit activities if the Secretary and the 
State concerned determines that the cost of conducting the activity 
exceeds the expected amount to be collected by the activity.
    ``(5) The Secretary and the State concerned shall develop a 
reporting and audit strategy which eliminates multiple or redundant 
reporting of information.''.
    (b) Paperwork Reduction.--Section 107 of the Federal Oil and Gas 
Royalty Management Act of 1982 (30 U.S.C. 1717), as amended by section 
9513(b) and (c), is amended by adding at the end the following:
    ``(e) Paperwork Reduction.--Administrative actions and 
investigations (including, but not limited to, accounting collection 
and audits) under this Act involving obligations shall be subject to 
section 3518(c)(1)(B) of title 44, United States Code.''.

SEC. 9521. REPEALS.

    (a) FOGRMA.--Section 307 of the Federal Oil and Gas Royalty 
Management Act of 1982 (30 U.S.C. 1755), is repealed. Section 1 of such 
Act (relating to the table of contents) is amended by striking out the 
item relating to section 307.
    (b) OCSLA.--Effective on the date of the enactment of this Act, 
section 10 of the Outer Continental Shelf Lands Act (43 U.S.C. 1339) is 
repealed.

SEC. 9522. DELEGATION TO STATES.

    (a) General Authority.--Section 205(a) of the Federal Oil and Gas 
Royalty Management Act of 1982 (30 U.S.C. 1735(a)) is amended to read 
as follows:
    ``(a) Upon written request of any State, the Secretary is 
authorized to delegate, in accordance with the provisions of this 
section, all or part of the authorities and responsibilities of the 
Secretary under this Act to conduct inspections, such production and 
royalty accounting duties and responsibilities as the Secretary 
determines are legally delegable, all audit coverage, and 
investigations to any State with respect to all Federal lands within 
the State.''.
    (b) Standardized Reporting.--Section 205(b) of such Act (30 U.S.C. 
1735(b)) is amended--
            (1) by striking ``and'' at the end of paragraph (2);
            (2) by striking the comma at the end of paragraph (3) and 
        inserting ``; and''; and
            (3) by inserting after paragraph (3) the following:
            ``(4) the State agrees to adopt Federal standardized 
        reporting for Federal royalty accounting and collection 
        purposes,''.
    (c) Cost Effective Collection of De Minimis Royalty Amounts.--
Section 205 of such Act (30 U.S.C. 1735) is amended by adding at the 
end the following:
    ``(g) Upon written request of any State, the Secretary is 
authorized to delegate for any year the responsibility to collect 
royalties from all Federal leases within the State if the average 
amount per year of mineral revenues received by the State on all such 
leases under all Federal mineral leasing laws for the previous five 
years is less than $100,000. The State may also request that the 
Secretary sell the revenue stream from all or part of the Federal 
leases within the State in accordance with section 116 of the Federal 
Oil and Gas Royalty Management Act of 1982, as added by section 9518 of 
the Federal Oil and Gas Royalty Simplification and Fairness Act of 
1995.''.

SEC. 9523. PERFORMANCE STANDARD.

    Section 109 of the Federal Oil and Gas Royalty Management Act of 
1982 (30 U.S.C. 1719) is amended in subsections (c) and (d), by 
striking ``knowingly or willfully'' and inserting ``by willful 
misconduct or gross negligence'' each place it appears.

SEC. 9524. INDIAN LANDS.

    The amendments made by this part shall not apply with respect to 
Indian lands, and the provisions of the Federal Oil and Gas Royalty 
Management Act of 1982 as in effect on the day before the date of 
enactment of this Act shall continue to apply after such date with 
respect to Indian lands.

SEC. 9525. PRIVATE LANDS.

    This part shall not apply to any privately owned minerals.

SEC. 9526. EFFECTIVE DATE.

    Except as provided by section 115(e), section 111(h), section 
111(k)(5), and section 116 of the Federal Oil and Gas Royalty 
Management Act of 1982 (as added by this part), this part, and the 
amendments made by this part, shall apply with respect to the 
production of oil and gas after the first day of the month following 
the date of the enactment of this Act.

                  Subtitle F--Indian Gaming and Health

                         PART 1--INDIAN GAMING

SEC. 9601. INDIAN GAMING.

    (a) Commission Funding.--Section 18(a) of the Indian Gaming 
Regulatory Act (25 U.S.C. 2717(a)) is amended by striking out 
``$1,500,000'' each place it appears and inserting in lieu thereof 
``$2,500,000''.
    (b) Authorization of Appropriations.--Section 19(a) of the Indian 
Gaming Regulatory Act (25 U.S.C. 2718(a)) is amended by striking out 
all after ``(a)'' and inserting in lieu thereof the following: 
``Notwithstanding the provisions of section 18, no funds may be 
authorized to be appropriated for the operation of the Commission.''.

                    PART 2--INDIAN HEALTH: MEDICAID

SEC. 9611. HEALTH CARE FACILITIES.

    (a) Treatment of Payments.--Section 402 of the Indian Health Care 
Improvement Act (25 U.S.C. 1642) is amended--
            (1) in the first sentence of subsection (a), by inserting 
        ``, Indian Tribe, tribal organization, or urban Indian 
        organization'' after ``Service'' each place it appears; and
            (2) in the second sentence of subsection (a), by inserting 
        ``, Indian Tribe, tribal organization, or urban Indian 
        organization'' after ``facilities of the Service''.
    (b) Eligibility for Reimbursement.--Section 1911 of the Social 
Security Act (42 U.S.C. 1396j) is amended in subsection (a), by 
inserting ``, Indian Tribe, tribal organization, or urban Indian 
organization'' after ``Indian Health Service''.

SEC. 9612. PROVIDER REIMBURSEMENT.

    Section 402 of the Indian Health Care Improvement Act (25 U.S.C. 
1642) is amended by adding the following new subsections:
    ``(c) Notwithstanding any other provision of law, a health program 
of the Indian Health Service, an Indian tribe, tribal organization, or 
urban Indian organization, that is eligible for reimbursement for 
medical assistance under title XIX of the Social Security Act shall be 
eligible to participate in, and receive reimbursement for medical 
assistance provided to individuals served under any State plan 
authorized under any law which succeeds such title XIX on the same 
basis as any other health care provider in the State in which the 
health program of the Indian Health Service, an Indian tribe, tribal 
organization, or urban Indian organization is operated.
    ``(d) Nothing in this section, or any other law, shall prevent an 
Indian eligible for services through an Indian health program from 
participating in any State plan authorized under any law which succeeds 
such title XIX.
    ``(e) Nothing in this section, or any other law, shall authorize a 
State to deny or limit payments to any provider for medical assistance 
for items or services to Indians.
    ``(f) Any State that authorizes a health plan under any law which 
succeeds such title XIX or applies for a waiver under section 1115 of 
title XIX of the Social Security Act shall consult with the Indian 
tribes located within the State in the development of the health plan's 
standards.''.

SEC. 9613. STUDY.

    The Secretary of Health and Human Services shall conduct a 
comprehensive study of the number of Indians eligible to receive 
services under title XIX of the Social Security Act, the number of 
Indians actually receiving such services, and the effect upon Indians 
of eliminating the entitlement status of title XIX and transferring 
funding under that title to the States, and shall provide 
recommendations for the improvement of such services to eligible 
Indians. The Secretary shall submit the report to Congress no later 
than June 1, 1996.

                    PART 3--INDIAN HEALTH: MEDICARE

SEC. 9621. HEALTH CARE FACILITIES.

    (a) Tribal Facilities.--Section 401(a) of the Indian Health Care 
Improvement Act (25 U.S.C 1641(a)) is amended by striking ``a hospital 
or skilled nursing facility of the Service (whether operated by the 
Service or by an Indian tribe or tribal organization pursuant to a 
contract under the Indian Self-Determination Act)'' and inserting 
``facility of the Service, Indian tribe, tribal organization, or urban 
Indian organization''.
    (b) Eligibility for Reimbursement.--Section 1880(a) of the Social 
Security Act (42 U.S.C. 1395qq) is amended--
            (1) by striking ``hospital or skilled nursing'';
            (2) by inserting ``, Indian Tribe, tribal organization, or 
        urban Indian organization'' after ``Indian Health Service''; 
        and
            (3) by striking ``generally to hospitals or skilled nursing 
        facilities (as the case may be)''.

SEC. 9622. PROVIDER REIMBURSEMENT.

    Section 401 of the Indian Health Care Improvement Act (25 U.S.C. 
1641) is amended by adding the following new subsection:
    ``(c) Notwithstanding any other provision of law, a health program 
of the Indian Health Service, an Indian tribe, tribal organization, or 
urban Indian organization, that is eligible for reimbursement for 
medical assistance under title XVIII of the Social Security Act shall 
be eligible to participate in, and receive reimbursement for medical 
assistance provided to individuals served under any plan offered under 
the Medicare Plus plan on the same basis as any other health care 
provider in the State in which the health program of the Indian Health 
Service, an Indian tribe, tribal organization, or urban Indian 
organization is operated.''.

                        Subtitle G--Consultation

SEC. 9701. CONSULTATION.

    Section 7(d) of the Endangered Species Act of 1973 (16 U.S.C. 
1536(d)) is amended to read as follows:
    ``(d) Limitation on Commitment of Resources.--After initiation of 
consultation required under subsection (a)(2) of this section, the 
Federal agency and the permit or license applicant shall not make any 
irreversible or irretrievable commitment of resources with respect to 
the agency action which has the effect of foreclosing the formulation 
or implementation of any reasonable and prudent alternative measures 
which would not violate subsection (a)(2) of this section. This 
limitation on the commitment of resources is only applicable to 
consultations regarding site-specific projects and activities, and 
shall not apply to any consultation regarding an agency's periodic or 
long-term planning activities, mission or policy statements, 
programmatic documents, or general policies, regulations, or 
activities, whether or not such consultation has previously been 
initiated pursuant to a court order, and regardless of the date on 
which consultation was ordered or initiated.''.

                          Subtitle H--Mapping

SEC. 9801. SHORT TITLE.

    This subtitle may be cited as the ``Department of the Interior 
Surveying and Mapping Efficiency and Economic Opportunity Act of 
1995''.

SEC. 9802. SURVEYING AND MAPPING CONTRACTING PROGRAM.

    In order to provide private firms, including small and small 
disadvantaged businesses, ample opportunities to provide quality 
services to the Department of the Interior (hereinafter referred to as 
the ``Department''), the Secretary of the Interior (hereinafter 
referred to as the ``Secretary'') shall conduct a surveying and mapping 
contracting program.

SEC. 9803. INVENTORY OF ACTIVITIES.

    (a) Publication of Inventory.--Not later than 90 days after the 
date of enactment of this Act, the Secretary, in consultation with the 
Administrator of the Office of Federal Procurement Policy, the 
Administrator of the Small Business Administration and the trade 
association of private surveying and mapping firms, shall publish an 
inventory of surveying and mapping activities in the Department of the 
Interior for the last fiscal year completed prior to the date of 
enactment of this Act.
    (b) Items Included.--The inventory shall include each of the 
following:
            (1) The total dollar value of surveying and mapping 
        activities in each agency of the Department.
            (2) The total dollar value of surveying and mapping 
        activities in each agency of the Department performed by 
        contract with private sector firms.
            (3) The total dollar value of surveying and mapping 
        activities in each agency of the Department performed by 
        personnel of the Department.
            (4) The total dollar value of surveying and mapping 
        activities in each agency of the Department performed for any 
        other department or agency of the Federal Government.
            (5) The total dollar value of surveying and mapping 
        activities in each agency of the Department performed for any 
        State or political subdivision thereof, or for any foreign 
        government.
            (6) The total number of personnel involved in surveying and 
        mapping activities in each agency of the Department.

SEC. 9804. PLAN TO INCREASE USE OF CONTRACTS.

    (a) Establishment.--Based on the inventory conducted pursuant to 
section 9803 of this Act, not later than 180 days after the date of 
enactment of this Act, the Secretary, in consultation with the 
Administrator of the Office of Federal Procurement Policy, the 
Administrator of the Small Business Administration and the trade 
association of private surveying and mapping firms, shall develop and 
implement a plan to increase the use of contracts with private firms 
for surveying and mapping services.
    (b) Items Included in Plan.--The plan established pursuant to 
subsection (a) of this section shall include, but not be limited to 
each of the following:
            (1) A reduction of surveying and mapping activities by 
        personnel in the Department that duplicate capabilities 
        available by contract from the private sector.
            (2) A reduction of acquisition and maintenance of surveying 
        and mapping equipment that duplicate capabilities and capital 
        investment already made by the private sector.
            (3) The elimination of unfair Government competition in 
        activities in which the Department uses its personnel to 
        perform surveying and mapping for which it shares the cost 
        with, is reimbursed for, or makes a grant to any other agency 
        of the Federal Government, a State or political subdivision 
        thereof, or a foreign government, for such activities, when 
        such activities can be obtained by contract from the private 
        sector.
            (4) The use of contracts to perform surveying and mapping 
        requirements of the Department created through attrition.
            (5) The enhancement of the leadership role of the 
        Department of the Interior in--
                    (A) the preparation of standards and 
                specifications;
                    (B) research in surveying and mapping 
                instrumentation and procedures, and the prompt transfer 
                of technology to the private sector;
                    (C) providing technical guidance, coordination, 
                cost sharing, cooperative efforts and administration in 
                the use of Federal funds for surveying and mapping 
                activities, and the development of geographic 
                information systems, that are performed by the private 
                sector by the contract to Federal, State, and local 
                government agencies;
                    (D) establishing a schedule with quantifiable goals 
                for increasing the use of contracts with private sector 
                for current and future surveying and mapping 
                activities; and
                    (E) using Department personnel to perform only 
                those surveying and mapping activities that are 
                inherently governmental in nature, necessary to keep 
                current the skills of such personnel for evaluating 
                contractor performance and administering contracts, and 
                to perform basic research.

SEC. 9805. REPORTS.

    The Secretary shall transmit to the Committee on Resources of the 
House of Representatives and the Committee on Energy and Natural 
Resources of the Senate a report on implementation of the program not 
later than January 15 of each year.

SEC. 9806. DEFINITIONS.

    As used in this subtitle:
            (1) The term ``surveying and mapping'' means collecting, 
        storing, retrieving, or disseminating graphical or digital data 
        depicting natural or man-made physical features, phenomena and 
        boundaries of the earth and any information related thereto, 
        including but not limited to data shown on or in relation to 
        surveys, maps, and charts.
            (2) The ``contract'' means an instrument to retain private 
        firms with licensed, certified, or otherwise qualified 
        professionals in such fields as surveying, photogrammetry, 
        cartography, and geodesy, which shall be awarded in accordance 
        with the selection procedures in title IX of the Federal 
        Property and Administrative Services Act of 1949 (40 U.S.C. 541 
        and following).

                Subtitle I--National Park System Reform

SEC. 9901. SHORT TITLE.

    This subtitle may be cited as the ``National Park System Reform Act 
of 1995''.

SEC. 9902. DEFINITIONS.

    As used in this subtitle:
            (1) The term ``Secretary'' means the Secretary of the 
        Interior.
            (2) The term ``Plan'' means the National Park System Plan 
        developed under section 101.
            (3) The term ``Commission'' means the National Park System 
        Review Commission established pursuant to section 103.
            (4) The term ``Congressional resources committees'' means 
        the Committee on Resources of the House of Representatives and 
        the Committee on Energy and Natural Resources of the Senate.

                   PART 1--NATIONAL PARK SYSTEM PLAN

SEC. 9911. PREPARATION OF NATIONAL PARK SYSTEM PLAN.

    (a) Preparation of Plan.--The Secretary of the Interior, acting 
through the Director of the National Park Service, shall prepare a 
National Park System Plan to guide the direction of the National Park 
System into the next century. The Plan shall include each of the 
following:
            (1) Identification of goals and objectives for use in 
        defining the mission and role of the National Park Service and 
        the National Park System in preserving our Nation's heritage, 
        relative to other efforts at the Federal, State, local, and 
        private levels. This statement shall include a refinement for 
        the definition of ``nationally significant'' for purposes of 
        inclusion in the National Park System.
            (2) Criteria to be used in determining which themes and 
        types of resources are appropriate for representation in the 
        National Park System, as well as criteria for judging 
        individual sites, areas, and themes that are appropriate for 
        inclusion as units of the National Park System.
            (3) Identification of what constitutes adequate 
        representation of a particular resource type or theme in the 
        National Park System.
            (4) Identification of which aspects of the Nation's 
        heritage are adequately represented in the existing National 
        Park System.
            (5) Identification of appropriate aspects of the Nation's 
        heritage not currently or adequately represented in the 
        National Park System.
            (6) Priorities of the themes and types of resources which 
        should be added to the National Park System in order to provide 
        more complete representation of our Nation's heritage.
            (7) A thorough analysis of the role of the National Park 
        System and the National Park Service with respect to (but not 
        limited to) conservation of natural areas and ecosystems; 
        preservation of industrial America; preservation of intangible 
        cultural heritage such as arts, music, and folklife; 
        presidential sites; open space protection; and provision of 
        outdoor recreation opportunities.
            (8) A comprehensive financial management plan for the 
        National Park System which identifies all funding available to 
        the agency, how funds will be allocated to support various 
        programs, and the level of service to be provided.
    (b) Public Participation and Consultation.--During the preparation 
of the Plan under subsection (a), the Secretary shall ensure broad 
public participation in a manner which, at a minimum, consists of the 
following two elements:
            (1) Solicitation of the views of the American public with 
        regard to the future of the National Park System. Opportunities 
        for public participation shall be made available throughout the 
        planning process and shall include specific regional public 
        meetings.
            (2) Consultation with other Federal land management 
        agencies, State and local officials, resource management, 
        recreation and scholarly organizations, and other interested 
        parties as the Secretary deems advisable.
    (c) Transmittal of Report.--Prior to the end of the second complete 
fiscal year commencing after the date of enactment of this Act, the 
Secretary shall transmit the Plan developed under this section to the 
Congressional resources committees.
    (d) Congressional Approval.--Unless Congress enacts a joint 
resolution rejecting all or modifying part of the Plan within 180 
calendar days after the date of its transmittal to Congress, the Plan 
shall be deemed approved.
    (e) Identification of Units of the National Park System.--The 
Secretary shall submit to the Congressional resources committees an 
official list of areas or units of the National Park System within 180 
days after the date of the enactment of this Act. The Secretary shall 
establish a set of criteria for the purpose of developing such list and 
shall transmit those criteria to the Congressional resources 
committees.
    (f) Authority To Establish Units of the National Park System.--
After the enactment of this Act, units or areas of the National Park 
System may only be established pursuant to an Act of Congress or by 
Presidential action in accordance with the Act entitled ``An Act for 
the preservation of American antiquities'' (16 U.S.C. 431 et seq.).

SEC. 9912. MANAGEMENT REVIEW OF NATIONAL PARK SYSTEM.

    (a) Selection Criteria.--(1) The Secretary shall, not later than 45 
days after transmittal of the Plan under section 9911(c), publish in 
the Federal Register and transmit to the Congressional resources 
committees the criteria proposed to be used by the Department of the 
Interior in reviewing existing units of the National Park System under 
this section. The Secretary shall provide an opportunity for public 
comment on the proposed criteria for a period of at least 30 days.
    (2)(A) The Secretary shall, within 60 days of the transmittal of 
proposed criteria under paragraph (1), publish in the Federal Register 
and transmit to the Congressional resources committees the final 
criteria to be used in carrying out this section. Except as provided in 
subparagraph (B), such criteria shall be the final criteria to be used 
unless disapproved by a joint resolution of Congress enacted not more 
than 30 legislative days after receipt of the final criteria. For the 
purpose of the preceding sentence, the term ``legislative day'' means a 
day on which both Houses of Congress are in session.
    (B) The Secretary may amend such criteria, but such amendments may 
not become effective until they have been published in the Federal 
Register, opened to public comment for at least 30 days, and 
transmitted to the Congressional resources committees in final form.
    (b) Review.--(1)(A) Using the Plan deemed to be approved pursuant 
to section 9911(d) and the criteria developed pursuant to subsection 
(a), the Secretary shall review the existing National Park System to 
determine whether any existing units or significant portions of such 
units do not conform to the Plan. For any such areas, the Secretary 
shall determine whether there are more appropriate alternatives for 
managing all or a portion of such units, including through partnerships 
or direct management by States, local governments, other agencies and 
the private sector.
    (B) The Secretary shall develop a report which contains a list of 
any unit of the National Park System where National Park Service 
management should be terminated and a list of any portion of units 
where National Park Service management should be modified as a result 
of nonconformance with the Plan. No area or portion of an area which 
Congress has designated as a national park may be included in the 
report.
    (2) Should any such unit or portion of such unit not be recommended 
for continued National Park Service management, the Secretary shall 
make recommendations regarding management by an entity or entities 
other than the National Park Service.
    (3) For any such unit or portion of such unit determined to have 
national significance, prior to including such unit or portion of such 
unit on a list under paragraph (1), the Secretary shall identify 
feasible alternatives to National Park Service management which will 
protect the resources of and assure continued public access to the 
unit.
    (c) Consultation.--In developing the report referred to in 
subsection (b), the Secretary shall consult with other Federal land 
management agencies, State and local officials, resource management, 
recreation and scholarly organizations, and other interested parties as 
the Secretary deems advisable.
    (d) Transmittal.--Not later than 18 months after the Plan has been 
deemed approved, the Secretary shall transmit the report developed 
under this section simultaneously to the Congressional resources 
committees and the Commission. The report shall contain the 
recommendations of the Secretary for termination of National Park 
Service management for any unit of the National Park System that is 
determined not to conform with the Plan, a list of portions of units 
where National Park Service management should be modified, and the 
recommendations for alternative management by an entity or entities 
other than the National Park Service for such unit.

SEC. 9913. NATIONAL PARK SYSTEM REVIEW COMMISSION.

    (a) Establishment of Commission; Duties.--(1) Following completion 
of the Plan as specified in section 9911, a National Park System Review 
Commission shall be established.
    (2) The Commission shall either review the report developed under 
section 9912 or, if the Secretary fails to develop and transmit such 
report, develop the report itself. In conducting its review (or 
developing the report, if necessary), the Commission shall be subject 
to the provisions of sections 9912(b) and (c) in the same manner as 
such provisions apply to the Secretary. If the Secretary develops and 
transmits the report, the review of the Commission shall be limited to 
the manner in which the criteria have been applied to the existing 
National Park System. In addition the Commission shall seek broad 
public input and ensure the opportunity for input from persons who 
would be directly affected by recommendations regarding National Park 
System units identified in its report.
    (3) Within 2 years after the date of its establishment, the 
Commission shall prepare and transmit to the Congressional resources 
committees a report of its work under paragraph (2) in which the 
Commission recommends a list of National Park System units where 
National Park Service management should be terminated and a list of 
portions of units where National Park Service management should be 
modified.
    (b) Membership and Appointment.--The Commission shall consist of 11 
members, each of whom shall have substantial familiarity with, and 
understanding of, the National Park System and related fields. In 
addition, the Commission members shall have expertise in natural 
sciences, history, archaeology, and outdoor recreation. Five members of 
the Commission, one of whom shall be the Director of the National Park 
Service, shall be appointed by the Secretary. Two members shall be 
appointed by the Speaker of the United States House of Representatives 
in consultation with the chairman of the Committee on Resources, and 
one member shall be appointed by the Minority Leader of the House or 
Representatives in consultation with the ranking minority member of the 
Committee on Resources. Two members shall be appointed by the President 
pro tempore of the United States Senate, in consultation with the 
chairman of the Committee on Energy and Natural Resources and one 
member shall be appointed by the Minority Leader of the Senate in 
consultation with the ranking minority member of the Committee on 
Energy and Natural Resources. Each member shall be appointed within 
three months after the completion of the Plan as specified in section 
101.
    (c) Chair.--The Commission shall elect a chair from among its 
members.
    (d) Vacancies.--Vacancies occurring on the Commission shall not 
affect the authority of the remaining members of the Commission to 
carry out the functions of the Commission. Any vacancy in the 
Commission shall be promptly filled in the same manner in which the 
original appointment was made.
    (e) Quorum.--A simple majority of Commission members shall 
constitute a quorum.
    (f) Meetings.--The Commission shall meet at least quarterly or upon 
the call of the chair or a majority of the members of the Commission.
    (g) Compensation.--Members of the Commission shall serve without 
compensation as such. Members of the Commission, when engaged in 
official Commission business, shall be entitled to travel expenses, 
including per diem in lieu of subsistence, in the same manner as 
persons employed intermittently in government service under section 
5703 of title 5, United States Code.
    (h) Termination.--The Commission established pursuant to this 
section shall terminate 90 days after the transmittal of the report to 
Congress as provided in subsection (a).
    (i) Limitation on National Park Service Staff.--The Commission may 
hire staff to carry out its assigned responsibilities. Not more than 
one-half of the professional staff of the Commission shall be made up 
of current employees of the National Park Service.
    (j) Staff of Other Agencies.--Upon the request of the Commission, 
the head of any Federal agency may detail, on a reimbursable basis, any 
of the personnel of such agency to the Commission to assist the 
Commission.
    (k) Experts and Consultants.--Subject to such rules as may be 
adopted by the Commission, the Commission may procure temporary and 
intermittent services to the same extent as authorized by section 
3109(b) of title 5, United States Code, but at rates determined by the 
Commission to be advisable.
    (l) Powers of the Commission.--(1) The Commission shall for the 
purpose of carrying out this title hold such public hearings, sit and 
act at such times and places, take such testimony, and receive such 
evidence as the Commission deems advisable.
    (2) The Commission may make such bylaws, rules, and regulations, 
consistent with this part, as it considers necessary to carry out its 
functions under this part.
    (3) When so authorized by the Commission, any member or agent of 
the Commission may take any action which the Commission is authorized 
to take by this section.
    (4) The Commission may use the United States mails in the same 
manner and upon the same conditions as other departments and agencies 
of the United States.
    (5) The Secretary shall provide to the Commission any information 
available to the Secretary and requested by the Commission regarding 
the Plan and any other information requested by the Commission which is 
relevant to the duties of the Commission and available to the 
Secretary.

SEC. 9914. SUBSEQUENT ACT OF CONGRESS REQUIRED TO MODIFY OR TERMINATE A 
                    PARK.

    Nothing in this part shall be construed as modifying or terminating 
any unit of the National Park System without a subsequent Act of 
Congress. This limitation shall not limit any existing authority of the 
Secretary.

SEC. 9915. AUTHORIZATION OF APPROPRIATIONS.

    There are hereby authorized to be appropriated $2,000,000 to carry 
out the purposes of this part.

SEC. 9916. COMMENDATION AND PROTECTION OF NATIONAL PARK RANGERS.

    (a) Finding.--The Congress recognizes the dedication, expertise and 
courage of the men and women who serve as rangers and other employees 
of the National Park Service and finds their service to the protection 
of our park resources and the safety of the hundreds of millions of 
Americans who visit our national parks each year to be indispensable.
    (b) Protection of National Park Service Employees.--As soon as 
possible as part of the report developed under section 9911, the 
Secretary shall report on the procedures that have been instituted to 
report to the United States Attorney or other appropriate law 
enforcement official any intimidation, threats, or acts of violence 
against employees of the National Park Service related to their duties.

                     PART 2--NEW AREA ESTABLISHMENT

SEC. 9921. STUDY OF NEW PARK SYSTEM AREAS.

    Section 8 of the Act of August 18, 1970, entitled ``An Act to 
improve the Administration of the National Park System by the Secretary 
of the Interior, and to clarify the authorities applicable to the 
system, and for other purposes'' (16 U.S.C. 1a-1 and following) is 
amended as follows:
            (1) By inserting ``General Authority.--'' after ``(a)''.
            (2) By striking the second through the sixth sentences of 
        subsection (a).
            (3) By redesignating the last two sentences of subsection 
        (a) as subsection (f) and inserting in the first of such 
        sentences before the words ``For the purposes of carrying'' the 
        following: ``(f) Authorization of Appropriations.--''.
            (4) By striking subsection (b).
            (5) By inserting the following after subsection (a):
    ``(b) Studies of Areas for Potential Addition.--(1) At the 
beginning of each calendar year, along with the annual budget 
submission, the Secretary shall submit to the Committee on Resources of 
the House of Representatives and to the Committee on Energy and Natural 
Resources of the United States Senate a list of areas recommended for 
study for potential inclusion in the National Park System.
    ``(2) In developing the list to be submitted under this subsection, 
the Secretary shall give consideration to those areas that have the 
greatest potential to meet the established criteria of national 
significance, suitability, and feasibility. The Secretary shall give 
special consideration to themes, sites, and resources not already 
adequately represented in the National Park System as identified in the 
National Park System Plan to be developed under section 101 of the 
National Park System Reform Act of 1995.
    ``(3) No study of the potential of an area for inclusion in the 
National Park System may be initiated after the date of enactment of 
this subsection, except as provided by specific authorization of an Act 
of Congress.
    ``(4) Nothing in this Act shall limit the authority of the National 
Park Service to conduct preliminary resource assessments, gather data 
on potential study areas, provide technical and planning assistance, 
prepare or process nominations for administrative designations, update 
previous studies, or complete reconnaissance surveys of individual 
areas requiring a total expenditure of less than $25,000.
    ``(5) Nothing in this section shall be construed to apply to or to 
affect or alter the study of any river segment for potential addition 
to the national wild and scenic rivers system or to apply to or to 
affect or alter the study of any trail for potential addition to the 
national trails system.
    ``(c) Report.--(1) The Secretary shall complete the study for each 
area for potential inclusion in the National Park System within 3 
complete fiscal years following the date of enactment of specific 
legislation providing for the study of such area. Each study under this 
section shall be prepared with appropriate opportunity for public 
involvement, including at least one public meeting in the vicinity of 
the area under study, and after reasonable efforts to notify 
potentially affected landowners and State and local governments.
    ``(2) In conducting the study, the Secretary shall consider whether 
the area under study--
            ``(A) possesses nationally significant natural or cultural 
        resources, or outstanding recreational opportunities, and that 
        the area represents one of the most important examples of a 
        particular resource type in the country; and
            ``(B) is a suitable and feasible addition to the system.
    ``(3) Each study--
            ``(A) shall consider the following factors with regard to 
        the area being studied--
                    ``(i) the rarity and integrity of the resources;
                    ``(ii) the threats to those resources;
                    ``(iii) whether similar resources are already 
                protected in the National Park System or in other 
                public or private ownership;
                    ``(iv) the public use potential;
                    ``(v) the interpretive and educational potential;
                    ``(vi) costs associated with acquisition, 
                development and operation;
                    ``(vii) the socioeconomic impacts of any 
                designation;
                    ``(viii) the level of local and general public 
                support, and
                    ``(ix) whether the area is of appropriate 
                configuration to ensure long-term resource protection 
                and visitor use;
            ``(B) shall consider whether direct National Park Service 
        management or alternative protection by other public agencies 
        or the private sector is appropriate for the area;
            ``(C) shall identify what alternative or combination of 
        alternatives would in the professional judgment of the Director 
        of the National Park Service be most effective and efficient in 
        protecting significant resources and providing for public 
        enjoyment; and
            ``(D) may include any other information which the Secretary 
        deems to be relevant.
    ``(4) Each study shall be completed in compliance with the National 
Environmental Policy Act of 1969.
    ``(5) The letter transmitting each completed study to Congress 
shall contain a recommendation regarding the Secretary's preferred 
management option for the area.
    ``(d) New Area Study Office.--The Secretary shall establish a 
single office to be assigned to prepare all new area studies and to 
implement other functions of this section.
    ``(e) List of Areas.--At the beginning of each calendar year, along 
with the annual budget submission, the Secretary shall submit to the 
Committee on Resources of the House of Representatives and to the 
Committee on Energy and Natural Resources of the United States Senate a 
list of areas which have been previously studied which contain 
primarily historical resources, and a list of areas which have been 
previously studied which contain primarily natural resources, in 
numerical order of priority for addition to the National Park System. 
In developing the lists, the Secretary should consider threats to 
resource values, cost escalation factors, and other factors listed in 
subsection (c) of this section. The Secretary should only include on 
the lists areas for which the supporting data is current and 
accurate.''.

        TITLE X--COMMITTEE ON TRANSPORTATION AND INFRASTRUCTURE

                      Subtitle A--Water Resources

SEC. 10001. COMMERCIAL CONCESSIONS AT CORPS OF ENGINEERS PROJECTS.

    Notwithstanding part 1 of subtitle C of title IX of this Act, the 
Secretary of the Army shall not modify any concession service 
agreement, concession license, or similar instrument (or any policy or 
procedure relating to such agreement, license, or agreement) except to 
the extent that such modification is permitted under laws in effect on 
the day before the date of the enactment of this Act.

SEC. 10002. PROHIBITION ON SALE OF CORPS OF ENGINEERS PROJECTS.

    (a) Prohibition.--Notwithstanding part 1 of subtitle B of title IX 
of this Act, the sale of any project or project feature operated by the 
Corps of Engineers (including any dam, lock, reservoir, related 
transmission and generation structures, equipment, facilities, and real 
property) is prohibited.
    (b) Cooperation With Purchasers of Electric Power.--
            (1) In general.--Subject to paragraph (2), the Secretary of 
        the Army shall cooperate, to the maximum extent practicable, 
        with a non-Federal purchaser of electric power generated at any 
        project under the jurisdiction of the Secretary to facilitate 
        the purchaser's access to, operation of, and maintenance, 
        repair, rehabilitation, and replacement of hydroelectric power 
        facilities at the project.
            (2) Continued effectiveness of project purposes.--In 
        carrying out paragraph (1), the Secretary shall take such 
        actions as may be necessary to ensure that each project 
        referred to in paragraph (1) continues to operate in accordance 
        with the authorized purpose or purposes of the project.

SEC. 10003. FEMA RADIOLOGICAL EMERGENCY PREPAREDNESS FEES.

    (a) In General.--The Director of the Federal Emergency Management 
Agency may assess and collect fees applicable to persons subject to 
radiological emergency preparedness regulations issued by the Director.
    (b) Requirements.--The assessment and collection of fees by the 
Director under subsection (a) shall be fair and equitable and shall 
reflect the full amount of costs to the Agency of providing 
radiological emergency planning, preparedness, response, and associated 
services. Such fees shall be assessed by the Director in a manner which 
reflects the use of resources of the Agency for classes of regulated 
persons and the administrative costs of collecting such fees.
    (c) Amount of Fees.--The aggregate amount of fees assessed under 
subsection (a) in a fiscal year shall approximate, but not be less 
than, 100 percent of the amounts anticipated by the Director to be 
obligated for the radiological emergency preparedness program of the 
Agency for such fiscal year.
    (d) Deposit of Fees in Treasury.--Fees received pursuant to 
subsection (a) shall be deposited in the general fund of the Treasury 
as offsetting receipts.
    (e) Expiration of Authority.--The authority of the Director to 
assess and collect fees under subsection (a) shall expire on September 
30, 2002.

                   Subtitle B--Ocean Shipping Reform

SEC. 10201. SHORT TITLE.

    This subtitle may be cited as the ``Ocean Shipping Reform Act of 
1995''.

                    CHAPTER 1--OCEAN SHIPPING REFORM

SEC. 10211. PURPOSES.

    Section 2 of the Shipping Act of 1984 (46 U.S.C. App. 1701) is 
amended--
            (1) by striking ``and'' at the end of paragraph (2);
            (2) by striking the period at the end of paragraph (3) and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(4) to permit carriers and shippers to develop 
        transportation arrangements to meet their specific needs.''.

SEC. 10212. DEFINITIONS.

    Section 3 of the Shipping Act of 1984 (46 U.S.C. App. 1702) is 
amended--
            (1) effective January 1, 1997--
                    (A) by striking paragraph (9); and
                    (B) by redesignating paragraphs (10) through (19) 
                as paragraphs (9) through (18), respectively; and
            (2) effective June 1, 1997--
                    (A) by striking paragraph (4);
                    (B) in paragraph (7) by striking ``a common 
                tariff;'' and inserting ``a common schedule of 
                transportation rates, charges, classifications, rules, 
                and practices;'';
                    (C) by striking paragraph (10) (as redesignated by 
                paragraph (1) of this section);
                    (D) by striking paragraph (13) (as redesignated by 
                paragraph (1) of this section);
                    (E) by striking paragraph (16) (as redesignated by 
                paragraph (1) of this section);
                    (F) by striking paragraph (18) (as redesignated by 
                paragraph (1) of this section) and inserting the 
                following:
            ``(18) `ocean freight forwarder' means a person that--
                    ``(A)(i) in the United States, dispatches shipments 
                from the United States via a common carrier and books 
                or otherwise arranges space for those shipments on 
                behalf of shippers; or
                    ``(ii) processes the documentation or performs 
                related activities incident to those shipments; or
                    ``(B) acts as a common carrier that does not 
                operate the vessels by which the ocean transportation 
                is provided, and is a shipper in its relationship with 
                an ocean common carrier.'';
                    (G) by striking paragraph (21);
                    (H) in paragraph (23)--
                            (i) by striking ``or'' the second place it 
                        appears and inserting a comma; and
                            (ii) by striking the period and inserting 
                        ``, a shippers' association, or an ocean 
                        freight forwarder that accepts responsibility 
                        for payment of the ocean freight.'';
                    (I) by striking paragraph (24) and inserting the 
                following:
            ``(24) `shippers' association' means a group of shippers 
        that consolidates or distributes freight, on a nonprofit basis 
        for the members of the group in order to secure carload, 
        truckload, or other volume rates or ocean transportation 
        contracts.''; and
                    (J) by inserting after paragraph (18) (as 
                redesignated by paragraph (1) of this section) the 
                following:
            ``(19) `ocean transportation contract' means a contract in 
        writing separate from the bill of lading or receipt between 1 
        or more common carriers or a conference and 1 or more shippers 
        to provide specified services under specified rates and 
        conditions.''.

SEC. 10213. AGREEMENTS WITHIN THE SCOPE OF THE ACT.

    Effective June 1, 1997, section 4(a) of the Shipping Act of 1984 
(46 U.S.C. App. 1703(a)) is amended--
            (1) in paragraph (5) by striking ``non-vessel-operating 
        common carriers'' and inserting ``ocean freight forwarders''; 
        and
            (2) by striking paragraph (7) and inserting the following:
            ``(7) discuss any matter related to ocean transportation 
        contracts, and enter ocean transportation contracts and 
        agreements related to those contracts.''.

SEC. 10214. AGREEMENTS.

    Section 5 of the Shipping Act of 1984 (46 U.S.C. App. 1704) is 
amended--
            (1) effective January 1, 1997--
                    (A) in subsection (b)(4) by striking ``at the 
                request of any member, require an independent neutral 
                body to police fully'' and inserting ``state the 
                provisions, if any, for the policing of'';
                    (B) in subsection (b)(7) by striking ``and'' at the 
                end;
                    (C) in subsection (b)(8) by striking the period and 
                inserting ``; and''; and
                    (D) by adding at the end of subsection (b) the 
                following:
            ``(9) provide that a member of the conference may enter 
        individual and independent negotiations and may conclude 
        individual and independent service contracts under section 8 of 
        this Act.'';
            (2) effective June 1, 1997--
                    (A) by striking subsection (b)(8) and inserting the 
                following:
            ``(8) provide that any member of the conference may take 
        independent action on any rate or service item agreed upon by 
        the conference for transportation provided under section 8(a) 
        of this Act upon not more than 3 business days' notice to the 
        conference, and that the conference will provide the new rate 
        or service item for use by that member, effective no later than 
        3 business days after receipt of that notice, and by any other 
        member that notifies the conference that it elects to adopt the 
        independent rate or service item on or after its effective 
        date, in lieu of the existing conference provision for that 
        rate or service item;'';
                    (B) in subsection (b)(9) by striking ``service'' 
                and inserting ``ocean transportation'' and by striking 
                the period at the end and inserting ``; and'';
                    (C) by adding at the end of subsection (b) the 
                following:
            ``(10) prohibit the conference from--
                    ``(A) prohibiting or restricting the members of the 
                conference from engaging in individual negotiations for 
                ocean transportation contracts under section 8(b) with 
                1 or more shippers; and
                    ``(B) issuing mandatory rules or requirements 
                affecting ocean transportation contracts that may be 
                entered by 1 or more members of the conference, except 
                that a conference may require that a member of the 
                conference disclose the existence of an existing 
                individual ocean transportation contract or 
                negotiations on an ocean transportation contract, when 
                the conference enters negotiations on an ocean 
                transportation contract with the same shipper.''; and
                    (D) in subsection (e) by striking ``carrier that 
                are required to be set forth in a tariff,'' and 
                inserting ``carrier,''.

SEC. 10215. EXEMPTION FROM ANTITRUST LAWS.

    Section 7 of the Shipping Act of 1984 (46 U.S.C. App. 1706) is 
amended--
            (1) by striking subsection (a)(6) and inserting the 
        following:
            ``(6) subject to section 20(e)(2) of this Act, any 
        agreement, modification, or cancellation, in effect before the 
        effective date of this Act and any tariff, rate, fare, charge, 
        classification, rule, or regulation explanatory thereof 
        implementing that agreement, modification, or cancellation.''; 
        and
            (2) in subsection (c)(1) by striking ``agency'' and 
        inserting ``agency, department,''.

SEC. 10216. COMMON AND CONTRACT CARRIAGE.

    (a) In General.--Effective June 1, 1997--
            (1) section 502 of the High Seas Driftnet Fisheries 
        Enforcement Act (46 U.S.C. App. 1707a) is repealed; and
            (2) section 8 of the Shipping Act of 1984 (46 U.S.C. App. 
        1707) is amended to read as follows:

``SEC. 8. COMMON AND CONTRACT CARRIAGE.

    ``(a) Common Carriage.--
            ``(1) A common carrier and a conference shall make 
        available a schedule of transportation rates which shall 
        include the rates, terms, and conditions for transportation 
        services not governed by an ocean transportation contract, and 
        shall provide the schedule of transportation rates, in writing, 
        upon the request of any person. A common carrier and a 
        conference may assess a reasonable charge for complying with a 
        request for a rate, term, and condition, except that the charge 
        may not exceed the cost of providing the information requested.
            ``(2) A dispute between a common carrier or conference and 
        a person as to the applicability of the rates, terms, and 
        conditions for ocean transportation services shall be decided 
        in an appropriate State or Federal court of competent 
        jurisdiction, unless the parties otherwise agree.
            ``(3) A claim concerning a rate for ocean transportation 
        services which involves false billing, false classification, 
        false weighing, false report of weight, or false measurement 
        shall be decided in an appropriate State or Federal court of 
        competent jurisdiction, unless the parties otherwise agree.
    ``(b) Contract Carriage.--
            ``(1) 1 or more common carriers or a conference may enter 
        into an ocean transportation contract with 1 or more shippers. 
        A common carrier may enter into ocean transportation contracts 
        without limitations concerning the number of ocean 
        transportation contracts or the amount of cargo or space 
        involved. The status of a common carrier as an ocean common 
        carrier is not affected by the number or terms of ocean 
        transportation contracts entered.
            ``(2) A party to an ocean transportation contract entered 
        under this section shall have no duty in connection with 
        services provided under the contract other than the duties 
        specified by the terms of the contract.
            ``(3)(A) An ocean transportation contract or the 
        transportation provided under that contract may not be 
        challenged in any court on the grounds that the contract 
        violates a provision of this Act.
            ``(B) The exclusive remedy for an alleged breach of an 
        ocean transportation contract is an action in an appropriate 
        State or Federal court of competent jurisdiction, unless the 
        parties otherwise agree.
            ``(4) The requirements and prohibitions concerning 
        contracting by conferences contained in sections 5(b)(9) and 
        (10) of this Act shall also apply to any agreement among one or 
        more ocean common carriers that is filed under section 5(a) of 
        this Act.''.
    (b) Confidentiality of Contracts.--Effective January 1, 1998, 
section 8(b) of the Shipping Act of 1984 (46 U.S.C. App. 1707(b)), as 
amended by subsection (a) of this section, is amended by adding at the 
end the following:
            ``(5) A contract entered under this section may be made on 
        a confidential basis, upon agreement of the parties. An ocean 
        common carrier that is a member of a conference agreement may 
        not be prohibited or restricted from agreeing with 1 or more 
        shippers that the parties to the contract will not disclose the 
        rates, services, terms, or conditions of that contract to any 
        other member of the agreement, to the conference, to any other 
        carrier, shipper, conference, or to any other third party.''.

SEC. 10217. PROHIBITED ACTS.

    Section 10 of the Shipping Act of 1984 (46 U.S.C. App. 1709) is 
amended--
            (1) effective January 1, 1997, in subsection (b)--
                    (A) by striking paragraph (1) and inserting the 
                following:
            ``(1) except for service contracts, subject a person, 
        place, port, or shipper to unreasonable discrimination;''; and
                    (B) by striking paragraphs (2), (3), (4), and (8);
            (2) effective June 1, 1997, by striking subsection (b) and 
        inserting the following:
    ``(b) Common Carriers.--No common carrier, either alone or in 
conjunction with any other person, directly or indirectly, may--
            ``(1) except for ocean transportation contracts, subject a 
        person, place, port, or shipper to unreasonable discrimination;
            ``(2) retaliate against any shipper by refusing, or 
        threatening to refuse, cargo space accommodations when 
        available, or resort to other unfair or unjustly discriminatory 
        methods because the shipper has patronized another carrier or 
        has filed a complaint, or for any other reason;
            ``(3) employ any fighting ship;
            ``(4) subject any particular person, locality, class, or 
        type of shipper or description of traffic to an unreasonable 
        refusal to deal;
            ``(5) refuse to negotiate with a shippers' association;
            ``(6) knowingly and willfully accept cargo from or 
        transport cargo for the account of an ocean freight forwarder 
        that does not have a bond, insurance, or other surety as 
        required by section 19;
            ``(7) knowingly and willfully enter into an ocean 
        transportation contract with an ocean freight forwarder or in 
        which an ocean freight forwarder is listed as an affiliate that 
        does not have a bond, insurance, or other surety as required by 
        section 19; or
            ``(8)(A) knowingly disclose, offer, solicit, or receive any 
        information concerning the nature, kind, quantity, destination, 
        consignee, or routing of any property tendered or delivered to 
        a common carrier without the consent of the shipper or 
        consignee if that information--
                    ``(i) may be used to the detriment or prejudice of 
                the shipper or consignee;
                    ``(ii) may improperly disclose its business 
                transaction to a competitor; or
                    ``(iii) may be used to the detriment or prejudice 
                of any common carrier;
        except that nothing in this paragraph shall be construed to 
        prevent providing the information, in response to legal 
        process, to the United States, or to an independent neutral 
        body operating within the scope of its authority to fulfill the 
        policing obligations of the parties to an agreement effective 
        under this Act. Nor shall it be prohibited for any ocean common 
        carrier that is a party to a conference agreement approved 
        under this Act, or any receiver, trustee, lessee, agent, or 
        employee of that carrier, or any other person authorized by 
        that carrier to receive information, to give information to the 
        conference or any person, firm, corporation, or agency 
        designated by the conference or to prevent the conference or 
        its designee from soliciting or receiving information for the 
        purpose of determining whether a shipper or consignee has 
        breached an agreement with a conference or for the purpose of 
        determining whether a member of the conference has breached the 
        conference agreement or for the purpose of compiling statistics 
        of cargo movement, but the use of that information for any 
        other purpose prohibited by this Act or any other Act is 
        prohibited; and
            ``(B) after December 31, 1997, the rates, services, terms, 
        and conditions of an ocean transportation contract may not be 
        disclosed under this paragraph if the contract has been made on 
        a confidential basis under section 8(b) of this Act.
The exclusive remedy for a disclosure under this paragraph shall be an 
action for breach of contract as provided in section 8(b)(3) of this 
Act.'';
            (3) effective June 1, 1997--
                    (A) by striking subsection (c)(1) and inserting the 
                following:
                    ``(1) boycott, take any concerted action resulting 
                in an unreasonable refusal to deal, or implement a 
                policy or practice that results in an unreasonable 
                refusal to deal;'';
                    (B) in subsection (c)(5) by inserting ``as defined 
                in section 3(14)(A) of this Act'' after ``freight 
                forwarder''; and
                    (C) in subsection (c)(6) by striking ``a service 
                contract.'' and inserting ``an ocean transportation 
                contract.''; and
            (4) effective June 1, 1997, in subsection (d)(3) by 
        striking ``subsection (b) (11), (12), and (16)'' and inserting 
        ``paragraphs (1), (4), and (8) of subsection (b)''.

SEC. 10218. REPARATIONS.

    Effective June 1, 1997, section 11(g) of the Shipping Act of 1984 
(46 U.S.C. App. 1710(g)) is amended--
            (1) by inserting ``or counter-complainant'' after 
        ``complainant'' the second place it appears;
            (2) by striking ``10(b) (5) or (7)'' and inserting ``10(b) 
        (2) or (3)''; and
            (3) by striking the last sentence.

SEC. 10219. FOREIGN LAWS AND PRACTICES.

    Effective on June 1, 1997, section 10002 of the Foreign Shipping 
Practices Act of 1988 (46 U.S.C. App. 1710a) is amended--
            (1) in subsection (a)(1)--
                    (A) by striking `` `non-vessel-operating common 
                carrier',''; and
                    (B) by inserting `` `ocean freight forwarder','' 
                after `` `ocean common carrier','';
            (2) in subsection (a)(4) by striking ``non-vessel-operating 
        common carrier operations,'';
            (3) in subsection (e)(1) by striking subparagraphs (B), 
        (C), and (D) and inserting the following:
            ``(B) suspension, in whole or in part, of the right of an 
        ocean common carrier to operate under any agreement filed with 
        the Secretary, including agreements authorizing preferential 
        treatment at terminals, preferential terminal leases, space 
        chartering, or pooling of cargo or revenues with other ocean 
        common carriers; and
            ``(C) a fee, not to exceed $1,000,000 per voyage.''; and
            (4) in subsection (h) by striking ``section 13(b)(5) of the 
        Shipping Act of 1984 (46 U.S.C. App. 1712(b)(5))'' and 
        inserting ``section 13(b)(2) of the Shipping Act of 1984 (46 
        U.S.C. App. 1712(b)(2))''.

SEC. 10220. PENALTIES.

    Effective June 1, 1997, section 13 of the Shipping Act of 1984 (46 
U.S.C. App. 1712) is amended--
            (1) in subsection (b)--
                    (A) by striking paragraphs (1) and (3) and 
                redesignating paragraphs (2), (4), (5), and (6) as 
                paragraphs (1), (2), (3), and (4), respectively;
                    (B) by striking paragraph (1), as so redesignated, 
                and inserting the following:
            ``(1) If the Secretary finds, after notice and an 
        opportunity for a hearing, that a common carrier has failed to 
        supply information ordered to be produced or compelled by 
        subpoena under section 12 of this Act, the Secretary may 
        request that the Secretary of the Treasury refuse or revoke any 
        clearance required for a vessel operated by that common 
        carrier. Upon request by the Secretary, the Secretary of the 
        Treasury shall, with respect to the vessel concerned, refuse or 
        revoke any clearance required by section 4197 of the Revised 
        Statutes of the United States (46 U.S.C. App. 91).''; and
                    (C) in paragraph (3), as so redesignated, by 
                striking ``finds appropriate,'' and all that follows 
                through the period at the end and inserting ``finds 
                appropriate including the imposition of the penalties 
                authorized under paragraph (2).''; and
            (2) in subsection (f)(1) by striking ``section 10 (a)(1), 
        (b)(1), or (b)(4)'' and inserting ``section 10(a)(1)''.

SEC. 10221. REPORTS.

    (a) In General.--Effective January 1, 1997, section 15 of the 
Shipping Act of 1984 (46 U.S.C. App. 1714) is amended--
            (1) in the section heading by striking ``and 
        certificates'';
            (2) by striking ``(a) Reports.--''; and
            (3) by striking subsection (b).
    (b) Clerical Amendment.--The table of contents contained in the 
first section of such Act (46 U.S.C. App. 1701) is amended by striking 
the item relating to section 15 and inserting the following:

``Sec. 15. Reports.''.

SEC. 10222. REGULATIONS.

    Section 17 of the Shipping Act of 1984 (46 U.S.C. App. 1716) is 
amended--
            (1) by striking ``(a)''; and
            (2) by striking subsection (b).

SEC. 10223. REPEAL.

    (a) Repeal.--Section 18 of the Shipping Act of 1984 (46 U.S.C. App. 
1717) is repealed.
    (b) Clerical Amendment.--The table of contents contained in the 
first section of such Act (46 U.S.C. App. 1701) is amended by striking 
the item relating to section 18.

SEC. 10224. OCEAN FREIGHT FORWARDERS.

    Effective June 1, 1997, section 19 of the Shipping Act of 1984 (46 
U.S.C. App. 1718) is amended--
            (1) by striking subsection (a) and inserting the following:
    ``(a) License.--No person in the United States may act as an ocean 
freight forwarder unless that person holds a license issued by the 
Commission. The Commission shall issue a forwarder's license to any 
person that the Commission determines to be qualified by experience and 
character to render forwarding services.'';
            (2) by redesignating subsections (b), (c), and (d) as 
        subsections (c), (d), and (e), respectively;
            (3) by inserting after subsection (a) the following:
    ``(b) Financial Responsibility.--
            ``(1) No person may act as an ocean freight forwarder 
        unless that person furnishes a bond, proof of insurance, or 
        other surety in a form and amount determined by the Commission 
        to insure financial responsibility that is issued by a surety 
        company found acceptable by the Secretary of the Treasury.
            ``(2) A bond, insurance, or other surety obtained pursuant 
        to this section shall be available to pay any judgment for 
        damages against an ocean freight forwarder arising from its 
        transportation-related activities under this Act or order for 
        reparation issued pursuant to section 11 or 14 of this Act.
            ``(3) An ocean freight forwarder not domiciled in the 
        United States shall designate a resident agent in the United 
        States for receipt of service of judicial and administrative 
        process, including subpoenas.'';
            (4) in subsection (c), as redesignated by paragraph (2) of 
        this section, by striking ``a bond in accordance with 
        subsection (a)(2)'' and inserting ``a bond, proof of insurance, 
        or other surety in accordance with subsection (b)(1)''; and
            (5) in subsection (e), as redesignated by paragraph (2) of 
        this section--
                    (A) by striking paragraph (3) and redesignating 
                paragraph (4) as paragraph (3); and
                    (B) by adding at the end the following:
            ``(4) No conference or group of 2 or more ocean common 
        carriers in the foreign commerce of the United States that is 
        authorized to agree upon the level of compensation paid to an 
        ocean freight forwarder, as defined in section 3(18)(A) of this 
        Act, may--
                    ``(A) deny to any member of the conference or group 
                the right, upon notice of not more than 3 business 
                days, to take independent action on any level of 
                compensation paid to an ocean freight forwarder; or
                    ``(B) agree to limit the payment of compensation to 
                an ocean freight forwarder, as defined in section 
                3(18)(A) of this Act, to less than 1.25 percent of the 
                aggregate of all rates and charges which are applicable 
                under a common schedule of transportation rates 
                provided under section 8(a) of this Act, and which are 
                assessed against the cargo on which the forwarding 
                services are provided.''.

SEC. 10225. EFFECTS ON CERTAIN AGREEMENTS AND CONTRACTS.

    Section 20(e) of the Shipping Act of 1984 (46 U.S.C. App. 1719) is 
amended to read as follows:
    ``(e) Savings Provisions.--
            ``(1) Each service contract entered into by a shipper and 
        an ocean common carrier or conference before the date of the 
        enactment of the Ocean Shipping Reform Act of 1995 may remain 
        in full force and effect according to its terms.
            ``(2) This Act and the amendments made by this Act shall 
        not affect any suit--
                    ``(A) filed before the date of the enactment of the 
                Ocean Shipping Reform Act of 1995;
                    ``(B) with respect to claims arising out of conduct 
                engaged in before the date of the enactment of the 
                Ocean Shipping Reform Act of 1995, filed within 1 year 
                after the date of the enactment of the Ocean Shipping 
                Reform Act of 1995;
                    ``(C) with respect to claims arising out of conduct 
                engaged in after the date of the enactment of the Ocean 
                Shipping Reform Act of 1995 but before January 1, 1997, 
                pertaining to a violation of section 10(b) (1), (2), 
                (3), (4), or (8), as in effect before January 1, 1997, 
                filed by June 1, 1997;
                    ``(D) with respect to claims pertaining to the 
                failure of a common carrier or conference to file its 
                tariffs or service contracts in accordance with this 
                Act in the period beginning January 1, 1997, and ending 
                June 1, 1997, filed by December 31, 1997; or
                    ``(E) with respect to claims arising out of conduct 
                engaged in on or after the date of the enactment of the 
                Ocean Shipping Reform Act of 1995 but before June 1, 
                1997, filed by December 31, 1997.''.

SEC. 10226. REPEAL.

    (a) Repeal.--Effective June 1, 1997, section 23 of the Shipping Act 
of 1984 (46 U.S.C. App. 1721) is repealed.
    (b) Clerical Amendment.--Effective June 1, 1997, the table of 
contents contained in the first section of such Act (46 U.S.C. App. 
1701) is amended by striking the item relating to section 23.

SEC. 10227. MARINE TERMINAL OPERATOR SCHEDULES.

    (a) In General.--Effective June 1, 1997, the Shipping Act of 1984 
(46 U.S.C. App. 1701 et seq.) is amended by adding at the end the 
following:

``SEC. 24. MARINE TERMINAL OPERATOR SCHEDULES.

    ``A marine terminal operator shall make available to the public a 
schedule of rates, regulations, and practices, including limitations of 
liability, pertaining to receiving, delivering, handling, or storing 
property at its marine terminal. The schedule shall be enforceable as 
an implied contract, without proof of actual knowledge of its 
provisions, for any activity by the marine terminal operator that is 
taken to--
            ``(1) efficiently transfer property between transportation 
        modes;
            ``(2) protect property from damage or loss;
            ``(3) comply with any governmental requirement; or
            ``(4) store property in excess of the terms of any other 
        contract or agreement, if any, entered into by the marine 
        terminal operator.''.
    (b) Clerical Amendment.--The table of contents contained in the 
first section of such Act (46 U.S.C. App. 1701) is amended by adding at 
the end the following:

``Sec. 24. Marine terminal operator schedules.''.

               CHAPTER 2--CONTROLLED CARRIERS AMENDMENTS

SEC. 10231. CONTROLLED CARRIERS.

    Effective June 1, 1997, section 9 of the Shipping Act of 1984 (46 
U.S.C. App. 1708) is amended--
            (1)(A) in the first sentence of subsection (a)--
                    (i) by striking ``in its tariffs or service 
                contracts filed with the Commission''; and
                    (ii) by striking ``in those tariffs or service 
                contracts''; and
            (B) in the last sentence of subsection (a) by striking 
        ``filed by a controlled carrier'';
            (2) in paragraphs (1) and (2) of subsection (b) by striking 
        ``filed'' and inserting ``published'';
            (3) in subsection (c) by striking the first sentence;
            (4) by striking subsection (d) and inserting the following:
    ``(d) Within 120 days of the receipt of information requested by 
the Secretary under this section, the Secretary shall determine whether 
the rates, charges, classifications, rules, or regulations of a 
controlled carrier may be unjust and unreasonable. If so, the Secretary 
shall issue an order to the controlled carrier to show cause why those 
rates, charges, classifications, rules, or regulations should not be 
approved. Pending a determination, the Secretary may suspend the rates, 
charges, classifications, rules, or regulations at any time. No period 
of suspension may be greater than 180 days. Whenever the Secretary has 
suspended any rates, charges, classifications, rules, or regulations 
under this subsection, the affected carrier may publish and, after 
notification to the Secretary, assess new rates, charges, 
classifications, rules, or regulations--except that the Secretary may 
reject the new rates, charges, classifications, rules, or regulations 
if the Secretary determines that they are unreasonable.'';
            (5) in subsection (f) by striking ``This'' and inserting 
        ``Subject to subsection (g), this''; and
            (6) by adding at the end the following:
    ``(g) The rate standards, information submissions, remedies, 
reviews, and penalties in this section shall also apply to ocean common 
carriers that are not controlled, but who have been determined by the 
Secretary to be structurally or financially affiliated with 
nontransportation entities or organizations (government or private) in 
such a way as to affect their pricing or marketplace behavior in an 
unfair, predatory, or anticompetitive way that disadvantages an ocean 
common carrier or carriers. The Secretary may make such determinations 
upon request of any person or upon the Secretary's own motion, after 
conducting an investigation and a public hearing.
    ``(h) The Secretary shall issue regulations by June 1, 1997, that 
prescribe the procedures and requirements that would govern how price 
and other information is to be submitted by controlled carriers and 
carriers subject to determinations made under subsection (g) when such 
information would be needed to determine whether prices charged by 
these carriers are unfair, predatory, or anticompetitive.
    ``(i) In any instance where information provided to the Secretary 
under this section does not result in an affirmative finding or 
enforcement action by the Secretary that information may not be made 
public and shall be exempt from disclosure under section 552 of title 
5, United States Code, except as may be relevant to an administrative 
or judicial action or proceeding. This section does not prevent 
disclosure to either body of Congress or to a duly authorized committee 
or subcommittee of Congress.''.

SEC. 10232. NEGOTIATING STRATEGY TO REDUCE GOVERNMENT OWNERSHIP AND 
                    CONTROL OF COMMON CARRIERS.

    Not later than January 1, 1997, the Secretary of Transportation 
shall develop, submit to Congress, and begin implementing a negotiation 
strategy to persuade foreign governments to divest themselves of 
ownership and control of ocean common carriers (as that term is defined 
in section 3(18) of the Shipping Act of 1984 (46 U.S.C. App. 1702).

SEC. 10233. ANNUAL REPORT BY THE SECRETARY.

    Not later than September 30, 1998, and annually thereafter, the 
Secretary shall report to Congress on the actions taken under the 
Foreign Shipping Practices Act (46 U.S.C. App. 1708), section 9 of the 
Shipping Act of 1984 (46 U.S.C. App. 1708), and section 10232 of this 
Act and the effect on United States maritime employment of laws, rules, 
regulations, policies, or practices of foreign governments, or any 
practices of foreign carriers or other persons providing maritime or 
maritime-related services in a foreign country that result in the 
existence of conditions that adversely affect the operations of United 
States carriers in United States oceanborne trade.

       CHAPTER 3--ELIMINATION OF THE FEDERAL MARITIME COMMISSION

SEC. 10241. PLAN FOR AGENCY TERMINATION.

    (a) In General.--No later than 30 days after the date of the 
enactment of this Act, the Director of the Office of Management and 
Budget, in consultation with the Secretary of Transportation, shall 
submit to Congress a plan to eliminate the Federal Maritime Commission 
no later than October 1, 1997. The plan shall include a timetable for 
the transfer of remaining functions of the Federal Maritime Commission 
to the Secretary of Transportation beginning as soon as feasible in 
fiscal year 1996. The plan shall also address matters related to 
personnel and other resources necessary for the Secretary of 
Transportation to perform the remaining functions of the Federal 
Maritime Commission.
    (b) Implementation.--The Director of the Office of Management and 
Budget shall implement the plan to eliminate the Federal Maritime 
Commission submitted to Congress under subsection (a) beginning as soon 
as feasible in fiscal year 1996.
    (c) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as may be necessary to carry out this subtitle 
and the amendments made by this subtitle.

             Subtitle C--Midewin National Tallgrass Prairie

                     CHAPTER 1--GENERAL PROVISIONS

SEC. 10301. SHORT TITLE.

    This subtitle may be cited as the ``Illinois Land Conservation Act 
of 1995''.

SEC. 10302. DEFINITIONS.

    For purposes of this subtitle, the following definitions apply:
            (1) Administrator.--The term ``Administrator'' means the 
        Administrator of the United States Environmental Protection 
        Agency.
            (2) Agricultural purposes.--The term ``agricultural 
        purposes'' means the use of land for row crops, pasture, hay, 
        and grazing.
            (3) Arsenal.--The term ``Arsenal'' means the Joliet Army 
        Ammunition Plant located in the State of Illinois.
            (4) CERCLA.--The term ``CERCLA'' means the Comprehensive 
        Environmental Response, Compensation, and Liability Act of 1980 
        (42 U.S.C. 9601 et seq.).
            (5) Defense environmental restoration program.--The term 
        ``Defense Environmental Restoration Program'' means the program 
        of environmental restoration for defense installations 
        established by the Secretary of Defense under section 2701 of 
        title 10, United States Code.
            (6) Environmental law.--The term ``environmental law'' 
        means all applicable Federal, State, and local laws, 
        regulations, and requirements related to protection of human 
        health, natural and cultural resources, or the environment, 
        including CERCLA, the Solid Waste Disposal Act (42 U.S.C. 6901 
        et seq.), the Federal Water Pollution Control Act (33 U.S.C. 
        1251 et seq.), the Clean Air Act (42 U.S.C. 7401 et seq.), the 
        Federal Insecticide, Fungicide, and Rodenticide Act (7 U.S.C. 
        136 et seq.), the Toxic Substances Control Act (15 U.S.C. 2601 
        et seq.), and the Safe Drinking Water Act (42 U.S.C. 300f et 
        seq.).
            (7) Hazardous waste.--The term ``hazardous substance'' has 
        the meaning given such term by section 101(14) of CERCLA (42 
        U.S.C. 9601(14)).
            (8) MNP.--The term ``MNP'' means the Midewin National 
        Tallgrass Prairie established pursuant to section 10314 and 
        managed as a part of the National Forest System.
            (9) National cemetery.--The term ``national cemetery'' 
        means a cemetery established and operated as part of the 
        National Cemetery System of the Department of Veterans Affairs 
        and subject to the provisions of chapter 24 of title 38, United 
        States Code.
            (10) Person.--The term ``person'' has the meaning given 
        such term by section 101(21) of CERCLA (42 U.S.C. 9601(21)).
            (11) Pollutant or contaminant.--The term ``pollutant or 
        contaminant'' has the meaning given such term by section 
        101(33) of CERCLA (42 U.S.C. 9601(33)).
            (12) Release.--The term ``release'' has the meaning given 
        such term by section 101(22) of CERCLA (42 U.S.C. 9601(22)).
            (13) Response action.--The term ``response action'' has the 
        meaning given the term ``response'' by section 101(25) of 
        CERCLA (42 U.S.C. 9601(25)).

   CHAPTER 2--CONVERSION OF JOLIET ARMY AMMUNITION PLANT TO MIDEWIN 
                       NATIONAL TALLGRASS PRAIRIE

SEC. 10311. PRINCIPLES OF TRANSFER.

    (a) Land Use Plan.--The Congress ratifies in principle the 
proposals generally identified by the land use plan which was developed 
by the Joliet Arsenal Citizen Planning Commission and unanimously 
approved on May 30, 1995.
    (b) Transfer Without Reimbursement.--The area constituting the 
Midewin National Tallgrass Prairie shall be transferred, without 
reimbursement, to the Secretary of Agriculture.
    (c) Management of MNP.--Management by the Secretary of Agriculture 
of those portions of the Arsenal transferred to the Secretary under 
this subtitle shall be in accordance with sections 10314 and 10315 
regarding the Midewin National Tallgrass Prairie.
    (d) Security Measures.--The Secretary of the Army and the Secretary 
of Agriculture shall each provide and maintain physical and other 
security measures on such portion of the Arsenal as is under the 
administrative jurisdiction of such Secretary. Such security measures 
(which may include fences and natural barriers) shall include measures 
to prevent members of the public from gaining unauthorized access to 
such portions of the Arsenal as are under the administrative 
jurisdiction of such Secretary and that may endanger health or safety.
    (e) Cooperative Agreements.--The Secretary of the Army, the 
Secretary of Agriculture, and the Administrator are individually and 
collectively authorized to enter into cooperative agreements and 
memoranda of understanding among each other and with other affected 
Federal agencies, State and local governments, private organizations, 
and corporations to carry out the purposes for which the Midewin 
National Tallgrass Prairie is established.
    (f) Interim Activities of the Secretary of Agriculture.--Prior to 
transfer and subject to such reasonable terms and conditions as the 
Secretary of the Army may prescribe, the Secretary of Agriculture may 
enter upon the Arsenal property for purposes related to planning, 
resource inventory, fish and wildlife habitat manipulation (which may 
include prescribed burning), and other such activities consistent with 
the purposes for which the Midewin National Tallgrass Prairie is 
established.

SEC. 10312. TRANSFER OF MANAGEMENT RESPONSIBILITIES AND JURISDICTION 
                    OVER ARSENAL.

    (a) Initial Transfer of Jurisdiction.--Within 6 months after the 
date of the enactment of this Act, the Secretary of the Army shall 
effect the transfer of those portions of the Arsenal property 
identified for transfer to the Secretary of Agriculture pursuant to 
subsection (d). The Secretary of the Army shall transfer to the 
Secretary of Agriculture only those portions of the Arsenal for which 
the Secretary of the Army and the Administrator concur that no further 
action is required under any environmental law and which therefore have 
been eliminated from the areas to be further studied pursuant to the 
Defense Environmental Restoration Program for the Arsenal. Within 4 
months after the date of the enactment of this Act, the Secretary of 
the Army and the Administrator shall provide to the Secretary of 
Agriculture all existing documentation supporting such finding and all 
existing information relating to the environmental conditions of the 
portions of the Arsenal to be transferred to the Secretary of 
Agriculture pursuant to this subsection.
    (b) Additional Transfers.--The Secretary of the Army shall transfer 
to the Secretary of Agriculture in accordance with section 10316(c) any 
portion of the property generally identified in subsection (d) and not 
transferred under subsection (a) after the Secretary of the Army and 
the Administrator concur that no further action is required at that 
portion of property under any environmental law and that such portion 
is therefore eliminated from the areas to be further studied pursuant 
to the Defense Environmental Restoration Program for the Arsenal. At 
least 2 months before any transfer under this subsection, the Secretary 
of the Army and the Administrator shall provide to the Secretary of 
Agriculture all existing documentation supporting such finding and all 
existing information relating to the environmental conditions of the 
portion of the Arsenal to be transferred. Transfer of jurisdiction 
pursuant to this subsection may be accomplished on a parcel-by-parcel 
basis.
    (c) Effect on Continued Responsibilities and Liability of Secretary 
of the Army.--Subsections (a) and (b), and their requirements, shall 
not in any way affect the responsibilities and liabilities of the 
Secretary of the Army specified in section 10313.
    (d) Identification of Portions for Transfer for MNP.--The lands to 
be transferred to the Secretary of Agriculture under subsections (a) 
and (b) shall be identified on a map or maps which shall be agreed to 
by the Secretary of the Army and the Secretary of Agriculture. 
Generally, the land to be transferred to the Secretary of Agriculture 
shall be all the real property and improvements comprising the Arsenal, 
except for lands and facilities described in subsection (e) or 
designated for transfer or disposal under section 10316 or chapter 3.
    (e) Property Used for Environmental Cleanup.--
            (1) Retention.--The Secretary of the Army shall retain 
        jurisdiction, authority, and control over real property at the 
        Arsenal to be used for--
                    (A) water treatment;
                    (B) the treatment, storage, or disposal of any 
                hazardous substance, pollutant or contaminant, 
                hazardous material, or petroleum products or their 
                derivatives;
                    (C) other purposes related to any response action 
                at the Arsenal; and
                    (D) other actions required at the Arsenal under any 
                environmental law to remediate contamination or 
                conditions of noncompliance with any environmental law.
            (2) Conditions.--The Secretary of the Army shall consult 
        with the Secretary of Agriculture regarding the identification 
        and management of the real property retained under this 
        subsection and ensure that activities carried out on that 
        property are consistent, to the extent practicable, with the 
        purposes for which the Midewin National Tallgrass Prairie is 
        established, as specified in section 10314(c), and with the 
        other provisions of sections 10314 and 10315.
            (3) Priority of response actions.--In the case of any 
        conflict between management of the property by the Secretary of 
        Agriculture and any response action, or any other action 
        required under any other environmental law, including actions 
        to remediate petroleum products of their derivatives, the 
        response action or other action shall take priority.
    (f) Surveys.--All costs of necessary surveys for the transfer of 
jurisdiction of Arsenal property from the Secretary of the Army to the 
Secretary of Agriculture shall be borne by the Secretary of 
Agriculture.

SEC. 10313. CONTINUATION OF RESPONSIBILITY AND LIABILITY OF SECRETARY 
                    OF THE ARMY FOR ENVIRONMENTAL CLEANUP.

    (a) Responsibility.--The liabilities and responsibilities of the 
Secretary of the Army under any environmental law shall not transfer 
under any circumstances to the Secretary of Agriculture as a result of 
the property transfers made under section 10312 or section 10316, or as 
a result of interim activities of the Secretary of Agriculture on 
Arsenal property under section 10311(f). With respect to the real 
property at the Arsenal, the Secretary of the Army shall remain liable 
for and continue to carry out--
            (1) all response actions required under CERCLA at or 
        related to the property;
            (2) all remediation actions required under any other 
        environmental law at or related to the property; and
            (3) all actions required under any other environmental law 
        to remediate petroleum products or their derivatives (including 
        motor oil and aviation fuel) at or related to the property.
    (b) Liability.--
            (1) In general.--Nothing in this Act shall be construed to 
        effect, modify, amend, repeal, alter, limit, or otherwise 
        change, directly or indirectly, the responsibilities or 
        liabilities under any environmental law of any person 
        (including the Secretary of Agriculture), except as provided in 
        paragraph (3) with respect to the Secretary of Agriculture.
            (2) Liability of secretary of the army.--The Secretary of 
        the Army shall retain any obligation or other liability at the 
        Arsenal that the Secretary may have under CERCLA and other 
        environmental laws. Following transfer of any portions of the 
        Arsenal pursuant to this Act, the Secretary of the Army shall 
        be accorded all easements and access to such property as may be 
        reasonably required to carry out such obligation or satisfy 
        such liability.
            (3) Special rules for secretary of agriculture.--The 
        Secretary of Agriculture shall not be responsible or liable 
        under any environmental law for matters which are in any way 
        related directly or indirectly to activities of the Secretary 
        of the Army, or any party acting under the authority of the 
        Secretary in connection with the Defense Environmental 
        Restoration Program, at the Arsenal and which are for any of 
        the following:
                    (A) Costs of response actions required under CERCLA 
                at or related to the Arsenal.
                    (B) Costs, penalties, or fines related to 
                noncompliance with any environmental law at or related 
                to the Arsenal or related to the presence, release, or 
                threat of release of any hazardous substance, 
                pollutant, contaminant, hazardous waste or hazardous 
                material of any kind at or related to the Arsenal, 
                including contamination resulting from migration of 
                hazardous substances, pollutants, contaminants, 
                hazardous materials, or petroleum products or their 
                derivatives disposed during activities of the 
                Department of the Army.
                    (C) Costs of actions necessary to remedy such 
                noncompliance or other problem specified in 
                subparagraph (B).
    (c) Payment of Response Action Costs.--Any Federal department or 
agency that had or has operations at the Arsenal resulting in the 
release or threatened release of hazardous substances, pollutants, or 
contaminants shall pay the cost of related response actions, or related 
actions under other environmental laws, including actions to remediate 
petroleum products or their derivatives.
    (d) Consultation.--The Secretary of Agriculture shall consult with 
the Secretary of the Army with respect to the Secretary of 
Agriculture's management of real property included in the Midewin 
National Tallgrass Prairie subject to any response action or other 
action at the Arsenal being carried out by or under the authority of 
the Secretary of the Army under any environmental law. The Secretary of 
Agriculture shall consult with the Secretary of the Army prior to 
undertaking any activities on the Midewin National Tallgrass Prairie 
that may disturb the property to ensure that such activities will not 
exacerbate contamination problems or interfere with performance by the 
Secretary of the Army of response actions at the property. In carrying 
out response actions at the Arsenal, the Secretary of the Army shall 
consult with the Secretary of Agriculture to ensure that such actions 
are carried out in a manner consistent with the purposes for which the 
Midewin National Tallgrass Prairie is established, as specified in 
section 10314(c), and the other provisions of sections 10314 and 10315.

SEC. 10314. ESTABLISHMENT AND ADMINISTRATION OF MIDEWIN NATIONAL 
                    TALLGRASS PRAIRIE.

    (a) Establishment.--On the effective date of the initial transfer 
of jurisdiction of portions of the Arsenal to the Secretary of 
Agriculture under section 10312(a), the Secretary of Agriculture shall 
establish the Midewin National Tallgrass Prairie. The MNP shall--
            (1) be administered by the Secretary of Agriculture; and
            (2) consist of the real property so transferred and such 
        other portions of the Arsenal subsequently transferred under 
        section 10312(b) or 10316.
    (b) Administration.--
            (1) In general.--The Secretary of Agriculture shall manage 
        the Midewin National Tallgrass Prairie as a part of the 
        National Forest System in accordance with this Act and the 
        laws, rules, and regulations pertaining to the National Forest 
        System, except that the Bankhead-Jones Farm Tenant Act of 1937 
        (7 U.S.C. 1010-1012) shall not apply to the MNP.
            (2) Initial management activities.--In order to expedite 
        the administration and public use of the Midewin National 
        Tallgrass Prairie, the Secretary of Agriculture may conduct 
        management activities at the MNP to effectuate the purposes for 
        which the MNP is established, as specified in subsection (c), 
        in advance of the development of a land and resource management 
        plan for the MNP.
            (3) Land and resource management plan.--In developing a 
        land and resource management plan for the Midewin National 
        Tallgrass Prairie, the Secretary of Agriculture shall consult 
        with the Illinois Department of Conservation and local 
        governments adjacent to the MNP and provide an opportunity for 
        public comment. Any parcel transferred to the Secretary of 
        Agriculture under this Act after the development of a land and 
        resource management plan for the MNP may be managed in 
        accordance with such plan without need for an amendment to the 
        plan.
    (c) Purposes of the Midewin National Tallgrass Prairie.--The 
Midewin National Tallgrass Prairie is established to be managed for 
National Forest System purposes, including the following:
            (1) To manage the land and water resources of the MNP in a 
        manner that will conserve and enhance the native populations 
        and habitats of fish, wildlife, and plants.
            (2) To provide opportunities for scientific, environmental, 
        and land use education and research.
            (3) To allow the continuation of agricultural uses of lands 
        within the MNP consistent with section 10315(b).
            (4) To provide a variety of recreation opportunities that 
        are not inconsistent with the preceding purposes.
    (d) Other Land Acquisition for MNP.--
            (1) Land acquisition funds.--Notwithstanding section 7 of 
        the Land and Water Conservation Fund Act of 1965 (16 U.S.C. 
        460l-9), monies appropriated from the Land and Water 
        Conservation Fund established under section 2 of such Act (16 
        U.S.C. 460l-5) shall be available for acquisition of lands and 
        interests in land for inclusion in the Midewin National 
        Tallgrass Prairie.
            (2) Acquisition of private lands.--Acquisition of private 
        lands for inclusion in the Midewin National Tallgrass Prairie 
        shall be on a willing seller basis only.
    (e) Cooperation With States, Local Governments and Other 
Entities.--In the management of the Midewin National Tallgrass Prairie, 
the Secretary of Agriculture is authorized and encouraged to cooperate 
with appropriate Federal, State, and local governmental agencies, 
private organizations and corporations. Such cooperation may include 
cooperative agreements as well as the exercise of the existing 
authorities of the Secretary under the Cooperative Forestry Assistance 
Act of 1978 and the Forest and Rangeland Renewable Resources Research 
Act of 1978. The objects of such cooperation may include public 
education, land and resource protection and cooperative management 
among government, corporate, and private landowners in a manner which 
furthers the purposes for which the Midewin National Tallgrass Prairie 
is established.

SEC. 10315. SPECIAL MANAGEMENT REQUIREMENTS FOR MIDEWIN NATIONAL 
                    TALLGRASS PRAIRIE.

    (a) Prohibition Against the Construction of New Through Roads.--No 
new construction of any highway, public road, or any part of the 
interstate system, whether Federal, State, or local, shall be permitted 
through or across any portion of the Midewin National Tallgrass 
Prairie. Nothing herein shall preclude construction and maintenance of 
roads for use within the MNP or the granting of authorizations for 
utility rights-of-way under applicable Federal law or preclude such 
access as is necessary. Nothing herein shall preclude necessary access 
by the Secretary of the Army for purposes of restoration and cleanup as 
provided in this subtitle.
    (b) Agricultural Leases and Special Use Authorizations.--Within the 
Midewin National Tallgrass Prairie, use of the lands for agricultural 
purposes shall be permitted subject to the following terms and 
conditions:
            (1) If, at the time of transfer of jurisdiction under 
        section 10312, there exists any lease issued by the Department 
        of the Army, Department of Defense, or any other agency 
        thereof, for agricultural purposes upon the parcel transferred, 
        the Secretary of Agriculture, upon transfer of jurisdiction, 
        shall convert the lease to a special use authorization, the 
        terms of which shall be identical in substance to the lease 
        that existed prior to the transfer, including the expiration 
        date and any payments owed the United States.
            (2) The Secretary of Agriculture may issue special use 
        authorizations to persons for use of the Midewin National 
        Tallgrass Prairie for agricultural purposes. Special use 
        authorizations issued pursuant to this paragraph shall include 
        terms and conditions as the Secretary of Agriculture may deem 
        appropriate.
            (3) No agricultural special use authorization shall be 
        issued for agricultural purposes which has a term extending 
        beyond the date 20 years from the date of the enactment of this 
        Act, except that nothing in this Act shall preclude the 
        Secretary of Agriculture from issuing agricultural special use 
        authorizations or grazing permits which are effective after 20 
        years from the date of the enactment of this Act for purposes 
        primarily related to erosion control, provision for food and 
        habitat for fish and wildlife, or other resource management 
        activities consistent with the purposes of the Midewin National 
        Tallgrass Prairie.
    (c) Treatment of Rental Fees.--Monies received pursuant to 
subsection (b) shall be subject to distribution to the State of 
Illinois and affected counties pursuant to the Acts of May 23, 1908, 
and March 1, 1911 (16 U.S.C. 500). All such monies not distributed 
pursuant to such Acts shall be deposited into the Treasury and shall 
constitute a special fund, which shall be available to the Secretary of 
Agriculture, in such amounts as are provided in advance in 
appropriation Acts, to cover the cost to the United States of such 
prairie-improvement work as the Secretary may direct. Any portion of 
any deposit made to the fund which the Secretary determines to be in 
excess of the cost of doing such work shall be transferred, upon such 
determination, to miscellaneous receipts, Forest Service Fund, as a 
National Forest receipt of the fiscal year in which such transfer is 
made.
    (d) User Fees.--The Secretary of Agriculture is authorized to 
charge reasonable fees for the admission, occupancy, and use of the 
Midewin National Tallgrass Prairie and may prescribe a fee schedule 
providing for reduced, or a waiver of, fees for persons or groups 
engaged in authorized activities including those providing volunteer 
services, research, or education. The Secretary shall permit admission, 
occupancy, and use at no additional charge for persons possessing a 
valid Golden Eagle Passport or Golden Age Passport.
    (e) Salvage of Improvements.--The Secretary of Agriculture may sell 
for salvage value any facilities and improvements which have been 
transferred to the Secretary pursuant to this subtitle.
    (f) Treatment of User Fees and Salvage Receipts.--Monies collected 
pursuant to subsections (d) and (e) shall be covered into the Treasury 
and constitute a special fund to be known as the Midewin National 
Tallgrass Prairie Restoration Fund. Deposits in the Midewin National 
Tallgrass Prairie Restoration Fund shall be available to the Secretary 
of Agriculture, in such amounts as are provided in advance in 
appropriation Acts, for restoration and administration of the Midewin 
National Tallgrass Prairie, including construction of a visitor and 
education center, restoration of ecosystems, construction of 
recreational facilities (such as trails), construction of 
administrative offices, and operation and maintenance of the MNP.

SEC. 10316. SPECIAL DISPOSAL RULES FOR CERTAIN ARSENAL PARCELS INTENDED 
                    FOR MNP.

    (a) Description of Parcels.--Except as provided in subsection (b), 
the following areas are designated for transfer or disposal pursuant to 
subsection (c):
            (1) Manufacturing Area--Study Area 1--Southern Ash Pile, 
        Study Area 2--Explosive Burning Ground, Study Area 3--Flashing 
        Grounds, Study Area 4--Lead Azide Area, Study Area 10--Toluene 
        Tank Farms, Study Area 11--Landfill, Study Area 12--Sellite 
        Manufacturing Area, Study Area 14--Former Pond Area, Study Area 
        15--Sewage Treatment Plant.
            (2) Load Assemble Packing Area--Group 61: Study Area L1, 
        Explosive Burning Ground: Study Area L2, Demolition Area: Study 
        Area L3, Landfill Area: Study Area L4, Salvage Yard: Study Area 
        L5, Group 1: Study Area L7, Group 2: Study Area L8, Group 3: 
        Study Area L9, Group 3A: Study Area L10, Group 4: Study Area 
        L14, Group 5: Study Area L15, Group 8: Study Area L18, Group 9: 
        Study Area L19, Group 27: Study Area L23, Group 62: Study Area 
        L25, PVC Area: Study Area L33, including all associated 
        inventoried buildings and structures as identified in the 
        Joliet Army Ammunition Plant Plantwide Building and Structures 
        Report and the contaminate study sites for both the 
        Manufacturing and Load Assembly and Packing sides of the Joliet 
        Arsenal as delineated in the Dames and Moore Final Report, 
        Proposed Future Land Use Map, dated May 30, 1995.
    (b) Exception.--The parcels described in subsection (a) shall not 
include the property at the Arsenal designated for disposal under 
chapter 3.
    (c) Initial Offer to Secretary of Agriculture.--Within 6 months 
after the construction and installation of any remedial design approved 
by the Administrator and required for any lands described in subsection 
(a), the Administrator shall provide to the Secretary of Agriculture 
all existing information regarding the implementation of such remedy, 
including information regarding its effectiveness. Within 3 months 
after the Administrator provides such information to the Secretary of 
Agriculture, the Secretary of the Army shall offer the Secretary of 
Agriculture the option of accepting a transfer of the areas described 
in subsection (a), without reimbursement, to be added to the Midewin 
National Tallgrass Prairie and subject to the terms and conditions, 
including the limitations on liability, contained in this subtitle. In 
the event the Secretary of Agriculture declines such offer, the 
property may be disposed of as the Secretary of the Army would 
ordinarily dispose of such property under applicable provisions of law. 
Any sale or other transfer of property conducted pursuant to this 
subsection may be accomplished on a parcel-by-parcel basis.

    CHAPTER 3--OTHER REAL PROPERTY DISPOSALS INVOLVING JOLIET ARMY 
                            AMMUNITION PLANT

SEC. 10321. DISPOSAL OF CERTAIN REAL PROPERTY AT ARSENAL FOR A NATIONAL 
                    CEMETERY.

    (a) Transfer Required.--Subject to section 10331, the Secretary of 
the Army shall transfer, without reimbursement, to the Secretary of 
Veterans Affairs the parcel of real property at the Arsenal described 
in subsection (b) for use as a national cemetery.
    (b) Description of Property.--The real property to be transferred 
under subsection (a) is a parcel of real property at the Arsenal 
consisting of approximately 982 acres, the approximate legal 
description of which includes part of sections 30 and 31 Jackson 
Township, T34N R10E, and part of sections 25 and 36 Channahon Township, 
T34N R9E, Will County, Illinois, as depicted in the Arsenal Land Use 
Concept.
    (c) Security Measures.--The Secretary of Veterans Affairs shall 
provide and maintain physical and other security measures on the real 
property transferred under subsection (a). Such security measures 
(which may include fences and natural barriers) shall include measures 
to prevent members of the public from gaining unauthorized access to 
the portion of the Arsenal that is under the administrative 
jurisdiction of the Secretary of Veterans Affairs and that may endanger 
health or safety.
    (d) Surveys.--All costs of necessary surveys for the transfer of 
jurisdiction of Arsenal properties from the Secretary of the Army to 
the Secretary of Veterans Affairs shall be borne solely by the 
Secretary of Veterans Affairs.

SEC. 10322. DISPOSAL OF CERTAIN REAL PROPERTY AT ARSENAL FOR A COUNTY 
                    LANDFILL.

    (a) Transfer Required.--Subject to section 10331, the Secretary of 
the Army shall transfer, without compensation, to Will County, 
Illinois, all right, title, and interest of the United States in and to 
the parcel of real property at the Arsenal described in subsection (b), 
which shall be operated as a landfill by the County.
    (b) Description of Property.--The real property to be transferred 
under subsection (a) is a parcel of real property at the Arsenal 
consisting of approximately 455 acres, the approximate legal 
description of which includes part of sections 8 and 17, Florence 
Township, T33N R10E, Will County, Illinois, as depicted in the Arsenal 
Land Use Concept.
    (c) Condition on Conveyance.--The conveyance shall be subject to 
the condition that the Army (or its agents or assigns) may use the 
landfill established on the real property transferred under subsection 
(a) for the disposal of construction debris, refuse, and other 
nonhazardous materials from the restoration and cleanup of the Arsenal 
property as provided for in this Act. Such use shall be at no cost to 
the Federal Government.
    (d) Reversionary Interest.--During the 5-year period beginning on 
the date the Secretary of the Army makes the conveyance under 
subsection (a), if the Secretary of the Army determines that the 
conveyed real property is not being operated as a landfill or that Will 
County, Illinois, is in violation of the condition specified in 
subsection (c), then, at the option of the United States, all right, 
title, and interest in and to the property, including improvements 
thereon, shall be subject to reversion to the United States. In the 
event the United States exercises its option to cause the property to 
revert, the United States shall have the right of immediate entry onto 
the property. Any determination of the Secretary of the Army under this 
subsection shall be made on the record after an opportunity for a 
hearing.
    (e) Surveys.--All costs of necessary surveys for the transfer of 
real property under this section shall be borne by Will County, 
Illinois.
    (f) Additional Terms and Conditions.--The Secretary of the Army may 
require such additional terms and conditions in connection with the 
conveyance under this section as the Secretary of the Army considers 
appropriate to protect the interests of the United States.

SEC. 10323. DISPOSAL OF CERTAIN REAL PROPERTY AT ARSENAL FOR ECONOMIC 
                    DEVELOPMENT.

    (a) Transfer Required.--Subject to section 10331, the Secretary of 
the Army shall transfer to the State of Illinois, all right, title, and 
interest of the United States in and to the parcel of real property at 
the Arsenal described in subsection (b), which shall be used for 
economic redevelopment to replace all or a part of the economic 
activity lost at the Arsenal.
    (b) Description of Property.--The real property to be transferred 
under subsection (a) is a parcel of real property at the Arsenal 
consisting of--
            (1) approximately 1,900 acres, the approximate legal 
        description of which includes part of section 30, Jackson 
        Township, Township 34 North, Range 10 East, and sections or 
        parts of sections 24, 25, 26, 35, and 36, Township 34 North, 
        Range 9 East, in Channahon Township, an area of 9.77 acres 
        around the Des Plaines River Pump Station located in the 
        southeast quarter of section 15, Township 34 North, Range 9 
        East of the Third Principal Meridian, in Channahon Township, 
        and an area of 511 feet by 596 feet around the Kankakee River 
        Pump Station in the Northwest Quarter of section 5, Township 33 
        North, Range 9 East, east of the Third Principal Meridian in 
        Wilmington Township, containing 6.99 acres, located along the 
        easterly side of the Kankakee Cut-Off in Will County, Illinois, 
        as depicted in the Arsenal Re-Use Concept, and the connecting 
        piping to the northern industrial site, as described by the 
        United States Army Report of Availability, dated 13 December 
        1993; and
            (2) approximately 1,100 acres, the approximate legal 
        description of which includes part of sections 16, 17, 18 
        Florence Township, Township 33 North, Range 10 East, Will 
        County, Illinois, as depicted in the Arsenal Land Use Concept.
    (c) Consideration.--The transfer under subsection (a) shall be made 
without consideration. However, the transfer shall be subject to the 
condition that, if the State of Illinois reconveys all or any part of 
the transferred property to a non-Federal entity, the State shall pay 
to the United States an amount equal to the fair market value of the 
reconveyed property. The Secretary of the Army shall determine the fair 
market value of any property reconveyed by the State as of the time of 
the reconveyance, excluding the value of improvements made to the 
property by the State. The Secretary may treat a lease of the property 
as a reconveyance if the Secretary determines that the lease was used 
in an effort to avoid operation of this subsection. Amounts received 
under this subsection shall be deposited in the general fund of the 
Treasury for purposes of deficit reduction.
    (d) Other Conditions of Conveyance.--
            (1) Redevelopment authority.--The transfer under subsection 
        (a) shall be subject to the further condition that the Governor 
        of the State of Illinois establish a redevelopment authority to 
        be responsible for overseeing the economic redevelopment of the 
        transferred land.
            (2) Time for establishment.--To satisfy the condition 
        specified in paragraph (1), the redevelopment authority shall 
        be established within 1 year after the date of the enactment of 
        this Act.
    (e) Reversionary Interest.--During the 20-year period beginning on 
the date the Secretary of the Army makes the transfer under subsection 
(a), if the Secretary determines that a condition specified in 
subsection (c) or (d) is not being satisfied or that the transferred 
land is not being used for economic development purposes, then, at the 
option of the United States, all right, title, and interest in and to 
the property, including improvements thereon, shall be subject to 
reversion to the United States. In the event the United States 
exercises its option to cause the property to revert, the United States 
shall have the right of immediate entry onto the property. Any 
determination of the Secretary under this subsection shall be made on 
the record after an opportunity for a hearing.
    (f) Surveys.--All costs of necessary surveys for the transfer of 
real property under this section shall be borne by the State of 
Illinois.
    (g) Additional Terms and Conditions.--The Secretary of the Army may 
require such additional terms and conditions in connection with the 
transfer under this section as the Secretary considers appropriate to 
protect the interests of the United States.

                  CHAPTER 4--MISCELLANEOUS PROVISIONS

SEC. 10331. DEGREE OF ENVIRONMENTAL CLEANUP.

    (a) In General.--Nothing in this Act shall be construed to restrict 
or lessen the degree of cleanup at the Arsenal required to be carried 
out under provisions of any environmental law.
    (b) Response Action.--The establishment of the Midewin National 
Tallgrass Prairie under chapter 2 and the additional real property 
transfers and disposals required under chapter 3 shall not restrict or 
lessen in any way any response action or degree of cleanup under CERCLA 
or other environmental law, or any response action required under any 
environmental law to remediate petroleum products or their derivatives 
(including motor oil and aviation fuel), required to be carried out 
under the authority of the Secretary of the Army at the Arsenal and 
surrounding areas, except to the extent otherwise allowable under such 
laws.
    (c) Environmental Quality of Property.--Any contract for sale, 
deed, or other transfer of real property under chapter 3 shall be 
carried out in compliance with all applicable provisions of section 
120(h) of CERCLA and other environmental laws.

                  Subtitle D--Miscellaneous Provisions

SEC. 10401. EXTENSION OF HIGHER VESSEL TONNAGE DUTIES.

    (a) Extension of Duties.--Section 36 of the Act of August 5, 1909 
(36 Stat. 111; 46 App. U.S.C. 121), is amended by striking ``for fiscal 
years 1991, 1992, 1993, 1994, 1995, 1996, 1997, 1998,'' each place it 
appears and inserting ``for fiscal years through fiscal year 2002,''.
    (b) Conforming Amendment.--The Act entitled ``An Act concerning 
tonnage duties on vessels entering otherwise than by sea'', approved 
March 8, 1910 (36 Stat. 234; 46 App. U.S.C. 132), is amended by 
striking ``for fiscal years 1991, 1992, 1993, 1994, 1995, 1996, 1997, 
and 1998,'' and inserting ``for fiscal years through fiscal year 
2002,''.

SEC. 10402. SALE OF GOVERNORS ISLAND, NEW YORK.

    (a) In General.--Notwithstanding any other provision of law, the 
Administrator of General Services shall dispose of by sale at fair 
market value all rights, title, and interests of the United States in 
and to the land of, and improvements to, Governors Island, New York.
    (b) Right of First Refusal.--Before a sale is made under subsection 
(a) to any other parties, the State of New York and the city of New 
York shall be given the right of first refusal to purchase all or part 
of Governors Island. Such right may be exercised by either the State of 
New York or the city of New York or by both parties acting jointly.
    (c) Proceeds.--Proceeds from the disposal of Governors Island under 
subsection (a) shall be deposited in the general fund of the Treasury 
and credited as miscellaneous receipts.

SEC. 10403. SALE OF AIR RIGHTS.

    (a) In General.--Notwithstanding any other provision of law, the 
Administrator of General Services shall sell, at fair market value and 
in a manner to be determined by the Administrator, the air rights 
adjacent to Washington Union Station described in subsection (b), 
including air rights conveyed to the Administrator under subsection 
(d). The Administrator shall complete the sale by such date as is 
necessary to ensure that the proceeds from the sale will be deposited 
in accordance with subsection (c).
    (b) Description.--The air rights referred to in subsection (a) 
total approximately 16.5 acres and are depicted on the plat map of the 
District of Columbia as follows:
            (1) Part of lot 172, square 720.
            (2) Part of lots 172 and 823, square 720.
            (3) Part of lot 811, square 717.
    (c) Proceeds.--Before September 30, 1996, proceeds from the sale of 
air rights under subsection (a) shall be deposited in the general fund 
of the Treasury and credited as miscellaneous receipts.
    (d) Conveyance of Amtrak Air Rights.--
            (1) General rule.--As a condition of future Federal 
        financial assistance, Amtrak shall convey to the Administrator 
        of General Services on or before December 31, 1995, at no 
        charge, all of the air rights of Amtrak described in subsection 
        (b).
            (2) Failure to comply.--If Amtrak does not meet the 
        condition established by paragraph (1), Amtrak shall be 
        prohibited from obligating Federal funds after March 1, 1996.

SEC. 10404. COLLECTION OF PARKING FEES.

    (a) In General.--The Administrator of General Services shall issue 
regulations requiring each Executive agency to collect fees for the use 
of all parking facilities provided for the agency at Federal expense.
    (b) Specific Requirements.--The regulations--
            (1) shall include provisions under which any such user fee 
        shall be computed based on the fair market value of the use of 
        the parking facility involved; and
            (2) shall take effect on or before the 90th day after the 
        date of enactment of this Act.
    (c) Fees To Be Deposited in the Treasury.--All user fees collected 
under this section shall be deposited in the Treasury of the United 
States as miscellaneous receipts.
    (d) Prohibition on Use of Federal Funds.--No Federal funds may be 
used to pay any user fee collected under this section.
    (e) Executive Agency Defined.--In this section, the term 
``Executive agency'' has the meaning given such term by section 105 of 
title 5, United States Code.

    Subtitle E--Economic Development Administration and Appalachian 
                          Regional Commission

SEC. 10501. SHORT TITLE; EFFECTIVE DATE.

    (a) Short Title.--This subtitle may be cited as the ``Economic 
Development Partnership Act of 1995''.
    (b) Effective Date.--Except as otherwise expressly provided, this 
subtitle and the amendments made by this subtitle shall take effect 6 
months after the date of the enactment of this Act.

CHAPTER 1--TRANSFER OF FUNCTIONS OF ECONOMIC DEVELOPMENT ADMINISTRATION

SEC. 10511. REAUTHORIZATION OF PUBLIC WORKS AND ECONOMIC DEVELOPMENT 
                    ACT OF 1965.

    The Public Works and Economic Development Act of 1965 (40 U.S.C. 
3131 et seq.) is amended by striking all after the first section and 
inserting the following:

``SEC. 2. FINDINGS AND DECLARATION.

    ``(a) Findings.--Congress finds that--
            ``(1) the maintenance of the national economy at a high 
        level is vital to the best interests of the United States, but 
        that some of our regions, counties, and communities are 
        suffering substantial and persistent unemployment and 
        underemployment that cause hardship to many individuals and 
        their families, and waste invaluable human resources;
            ``(2) to overcome this problem the Federal Government, in 
        cooperation with the States, should help areas and regions of 
        substantial and persistent unemployment and underemployment to 
        take effective steps in planning and financing their public 
        works and economic development;
            ``(3) Federal financial assistance, including grants for 
        public works and development facilities to communities, 
        industries, enterprises, and individuals in areas needing 
        development should enable such areas to help themselves achieve 
        lasting improvement and enhance the domestic prosperity by the 
        establishment of stable and diversified local economies and 
        improved local conditions, if such assistance is preceded by 
        and consistent with sound, long-range economic planning; and
            ``(4) under the provisions of this Act, new employment 
        opportunities should be created by developing and expanding new 
        and existing public works and other facilities and resources 
        rather than by merely transferring jobs from one area of the 
        United States to another.
    ``(b) Declaration.--Congress declares that, in furtherance of 
maintaining the national economy at a high level--
            ``(1) the assistance authorized by this Act should be made 
        available to both rural and urban areas;
            ``(2) such assistance should be made available for planning 
        for economic development prior to the actual occurrences of 
        economic distress in order to avoid such condition; and
            ``(3) such assistance should be used for long-term economic 
        rehabilitation in areas where long-term economic deterioration 
        has occurred or is taking place.

               ``TITLE I--ECONOMIC DEVELOPMENT COMMISSION

``SEC. 101. ESTABLISHMENT OF ECONOMIC DEVELOPMENT COMMISSION.

    ``(a) Establishment.--There is established an Economic Development 
Commission which shall be an independent establishment in the executive 
branch.
    ``(b) Appointment of Federal Cochairman.--The Commission shall 
headed by a Federal Cochairman of the Economic Development Commission 
(hereinafter in this Act referred to as the `Federal Cochairman') who 
shall be appointed by the President by and with the advice and consent 
of the Senate.
    ``(c) Duties.--It shall be the duty of the Federal Cochairman to 
carry out duties vested in the Federal Cochairman under this Act.

``SEC. 102. ESTABLISHMENT OF REGIONAL COMMISSIONS.

    ``(a) Establishment.--The Federal Cochairman shall establish for 
each region established by section 106 an Economic Development Regional 
Commission (hereinafter in this Act referred to as a `Regional 
Commission').
    ``(b) Membership.--
            ``(1) In general.--Each Regional Commission shall be 
        composed of 1 Federal member and 1 State member from each 
        participating State in the region represented by the Regional 
        Commission.
            ``(2) Federal cochairman.--The Federal member of each 
        Regional Commission shall be the Federal Cochairman.
            ``(3) State members.--Each State member of a Regional 
        Commission shall be the chief executive officer of the State. 
        The State members of a Regional Commission shall elect a 
        Cochairman from among such State members for a term of not less 
        than 1 year.
            ``(4) Alternates.--
                    ``(A) State alternates.--Each State member of a 
                Regional Commission may have a single alternate 
                appointed by the chief executive officer of the State 
                from among members of the chief executive officer's 
                cabinet or the chief executive officer's personal 
                staff.
                    ``(B) Federal alternate.--The President, by and 
                with the advice and consent of the Senate, shall 
                appoint an alternate for the Federal Cochairman.
                    ``(C) Duties.--An alternate shall vote in the event 
                of the absence, death, disability, removal, or 
                resignation of the State or Federal representative for 
                which he or she is an alternate. A State alternate 
                shall not be counted toward the establishment of a 
                quorum of the Commission in any instance in which a 
                quorum of the State members is required to be present.
    ``(c) Decisionmaking.--
            ``(1) Voting.--Decisions by a Regional Commission shall 
        require an affirmative vote of the Federal Cochairman (or the 
        Federal Cochairman's alternate) and of the majority of the 
        State members.
            ``(2) Quorum.--No decision of a Regional Commission 
        involving Commission policy, developing investment strategies, 
        or allocating funds among States may be made without the 
        Federal Cochairman (or the Federal Cochairman's alternate) and 
        a quorum of the State members present. For purposes of this 
        Act, the Federal Cochairman (or the Federal Cochairman's 
        alternate) and a majority of the State members shall constitute 
        a quorum.
    ``(d) Pay.--
            ``(1) Federal cochairman.--The Federal Cochairman shall be 
        compensated by the Federal Government at the rate prescribed 
        for level III of the Executive Schedule under section 5314 of 
        title 5, United States Code.
            ``(2) Federal cochairman's alternate.--The Federal 
        Cochairman's alternate shall be compensated by the Federal 
        Government at the rate prescribed for level V of the Executive 
        Schedule under section 5316 of title 5, United States Code, and 
        when not serving as an alternate for the Federal Cochairman 
        shall perform such functions and duties as are delegated by the 
        Federal Cochairman.
            ``(3) State members and their alternates.--Each State 
        member and the State member's alternate shall be compensated by 
        the State which they represent at the rate established by law 
        of such State.

``SEC. 103. COOPERATION OF FEDERAL AGENCIES.

    ``Each Federal department and agency, in accordance with applicable 
laws and within the limits of available funds, shall cooperate with 
each Regional Commission in order to assist the Regional Commission in 
carrying out the functions of the Regional Commission.

``SEC. 104. ADMINISTRATIVE EXPENSES.

    ``(a) Payment by States.--Fifty percent of the administrative 
expenses of a Regional Commission (other than the expenses of the 
Federal Cochairman) shall be paid by the States in the region 
represented by the Regional Commission and the remaining 50 percent of 
such expenses shall be paid by the Federal Government. The expenses of 
the Federal Cochairman, the Federal Cochairman's alternate, and the 
Federal Cochairman's staff shall be paid solely by the Federal 
Government.
    ``(b) Determination of State Share.--The share of the 
administrative expenses to be paid by each State shall be determined by 
the Regional Commission. The Federal Cochairman shall not participate 
or vote in such determination.
    ``(c) Delinquent Payments.--No assistance authorized by this Act 
shall be furnished to any State or to any political subdivision or 
resident of a State, nor shall the State member of a Regional 
Commission participate or vote in any determination by the Regional 
Commission, while such State is delinquent in the payment of such 
State's share of the administrative expenses of the Regional 
Commission.

``SEC. 105. ADMINISTRATIVE POWERS.

    ``To carry out its duties under this Act, consistent with 
regulations issued by the Federal Cochairman, a Regional Commission may 
take any of the following actions:
            ``(1) Adopt, amend, and repeal bylaws and rules governing 
        the conduct of the Regional Commission's business and the 
        performance of its functions.
            ``(2) Appoint and fix the pay of an executive director and 
        such other personnel as may be necessary to enable the Regional 
        Commission to carry out its functions; except that the 
        compensation for any individual so appointed shall not exceed 
        the rate of basic pay for level V of the Executive Schedule and 
        no member, officer, or employee of the Regional Commission, 
        other than the Federal Cochairman, the Federal Cochairman's 
        alternate, employees of the Federal Cochairman, and any Federal 
        employees detailed under paragraph (3), shall be deemed a 
        Federal employee for any purpose.
            ``(3) Request the head of a Federal department or agency to 
        detail to temporary duty with the Regional Commission such 
        personnel within the administrative jurisdiction of such head 
        as the Regional Commission may need for carrying out its 
        functions, and each such detail shall be without loss of 
        seniority, pay, or other employee status.
            ``(4) Arrange for the services of personnel from any State 
        or local government or any subdivision or agency thereof, or 
        any intergovernmental agency.
            ``(5) Make arrangements, including contracts, with any 
        participating State government for inclusion in a suitable 
        retirement and employee benefits system of such of its 
        personnel as may not be eligible for, or continue in, another 
        governmental retirement or employee benefit system, or 
        otherwise provide for such coverage of its personnel. The 
        Director of the Office of Personnel Management is authorized to 
        contract with a Regional Commission for continued coverage of 
        any Regional Commission employee who, on a date in the 6-month 
        period ending on the date of Regional Commission employment, 
        was a Federal employee, in the retirement program and other 
        employee benefit programs of the Federal Government.
            ``(6) Accept, use, and dispose of gifts or donations of 
        services or property, real, personal, or mixed, tangible or 
        intangible.
            ``(7) Subject to the requirements of the Federal Property 
        and Administrative Services Act of 1949, enter into and perform 
        such contracts, leases, cooperative agreements, or other 
        transactions as may be necessary in carrying out the Regional 
        Commission's functions and on such terms as the Regional 
        Commission may deem appropriate, with any department, agency, 
        or instrumentality of the United States, or with any person, 
        firm, association, or corporation.
            ``(8) Take such other actions and incur such other expenses 
        as may be necessary and appropriate.

``SEC. 106. ESTABLISHMENT OF REGIONS.

    ``(a) In General.--For the purposes of this Act, there are 
established 8 regions of the United States as follows:
            ``(1) Region I.--Region I shall be composed of the States 
        of Alabama, Florida, Georgia, Kentucky, Mississippi, North 
        Carolina, South Carolina, and Tennessee.
            ``(2) Region II.--Region II shall be composed of the States 
        of Arkansas, Louisiana, New Mexico, Oklahoma, and Texas.
            ``(3) Region III.--Region III shall be composed of the 
        States of Illinois, Indiana, Michigan, Minnesota, Ohio, and 
        Wisconsin.
            ``(4) Region IV.--Region IV shall be composed of the States 
        of Colorado, Iowa, Kansas, Missouri, Montana, Nebraska, North 
        Dakota, South Dakota, Utah, and Wyoming.
            ``(5) Region V.--Region V shall be composed of the State of 
        California.
            ``(6) Region VI.--Region VI shall be composed of the States 
        of Alaska, Arizona, Hawaii, Idaho, Nevada, Oregon, and 
        Washington and American Samoa, Guam, the Marshall Islands, 
        Micronesia, and the Northern Mariana Islands.
            ``(7) Region VII.--Region VII shall be composed of the 
        States of Delaware, Maryland, New Jersey, New York, 
        Pennsylvania, Virginia, and West Virginia and the District of 
        Columbia.
            ``(8) Region VIII.--Region VIII shall be composed of the 
        States of Connecticut, Maine, Massachusetts, New Hampshire, 
        Rhode Island, and Vermont and Puerto Rico and the Virgin 
        Islands.
    ``(b) Participation Not Required.--No State shall be required to 
participate in any program under this Act.

     ``TITLE II--GRANTS FOR PUBLIC WORKS AND DEVELOPMENT FACILITIES

``SEC. 201. DIRECT AND SUPPLEMENTARY GRANTS.

    ``(a) In General.--Upon the application of any eligible recipient, 
a Regional Commission may--
            ``(1) make direct grants for the acquisition or development 
        of land and improvements for public works, public service, or 
        development facility usage, and the acquisition, design and 
        engineering, construction, rehabilitation, alteration, 
        expansion, or improvement of such facilities, including related 
        machinery and equipment, within an area described in section 
        502(a), if the Regional Commission finds that--
                    ``(A) the project for which financial assistance is 
                sought will directly or indirectly--
                            ``(i) tend to improve the opportunities, in 
                        the area where such project is or will be 
                        located, for the successful establishment or 
                        expansion of industrial or commercial plants or 
                        facilities;
                            ``(ii) otherwise assist in the creation of 
                        additional long-term employment opportunities 
                        for such area; or
                            ``(iii) primarily benefit the long-term 
                        unemployed and members of low-income families;
                    ``(B) the project for which a grant is requested 
                will fulfill a pressing need of the area, or part 
                thereof, in which it is, or will be, located;
                    ``(C) the area for which a project is to be 
                undertaken has an approved investment strategy as 
                provided by section 503 and such project is consistent 
                with such strategy; and
                    ``(D) in the case of an area described in section 
                502(a)(4), the project to be undertaken will provide 
                immediate useful work to unemployed and underemployed 
                persons in that area; and
            ``(2) make supplementary grants in order to enable the 
        States and other entities within areas described in section 
        502(a) to take maximum advantage of designated Federal grant-
        in-aid programs (as defined in subsection (c)(4)), direct 
        grants-in-aid authorized under this section, and Federal grant-
        in-aid programs authorized by the Watershed Protection and 
        Flood Prevention Act (68 Stat. 666), and the 11 watersheds 
        authorized by the Flood Control Act of December 22, 1944 (58 
        Stat. 887), for which they are eligible but for which, because 
        of their economic situation, they cannot supply the required 
        matching share.
    ``(b) Cost Sharing.--Subject to subsection (c), the amount of any 
direct grant under this subsection for any project shall not exceed 50 
percent of the cost of such project.
    ``(c) Requirements Applicable to Supplementary Grants.--
            ``(1) Amount of supplementary grants.--
                    ``(A) In general.--Except as provided by 
                subparagraph (B), the amount of any supplementary grant 
                under this section for any project shall not exceed the 
                applicable percentage established by regulations 
                promulgated by the Federal Cochairman, but in no event 
                shall the non-Federal share of the aggregate cost of 
                any such project (including assumptions of debt) be 
                less than 20 percent of such cost.
                    ``(B) Exceptions.--Notwithstanding subparagraph 
                (A)--
                            ``(i) in the case of a grant to an Indian 
                        tribe, a Regional Commission may reduce the 
                        non-Federal share below the percentage 
                        specified in subparagraph (A) or may waive the 
                        non-Federal share;
                            ``(ii) in the case of any State or a 
                        political subdivision of the State which the 
                        Regional Commission determines has exhausted 
                        its effective taxing and borrowing capacity, 
                        the Regional Commission shall reduce the non-
                        Federal share below the percentage specified in 
                        subparagraph (A) or shall waive the non-Federal 
                        share in the case of such a grant for a project 
                        in an area described in section 502(a)(4); and
                            ``(iii) in case of any community 
                        development corporation which the Regional 
                        Commission determines has exhausted its 
                        effective borrowing capacity, the Regional 
                        Commission may reduce the non-Federal share 
                        below the percentage specified in subparagraph 
                        (A) or waive the non-Federal share in the case 
                        of such a grant for a project in an area 
                        described in section 502(a)(4).
            ``(2) Form of supplementary grants.--Supplementary grants 
        shall be made by a Regional Commission, in accordance with such 
        regulations as the Federal Cochairman may prescribe, by 
        increasing the amounts of direct grants authorized under this 
        section or by the payment of funds appropriated under this Act 
        to the heads of the departments, agencies, and 
        instrumentalities of the Federal Government responsible for the 
        administration of the applicable Federal programs.
            ``(3) Federal share limitations specified in other laws.--
        Notwithstanding any requirement as to the amount or sources of 
        non-Federal funds that may otherwise be applicable to the 
        Federal program involved, funds provided under this subsection 
        shall be used for the sole purpose of increasing the Federal 
        contribution to specific projects in areas described in section 
        502(a) under such programs above the fixed maximum portion of 
        the cost of such project otherwise authorized by the applicable 
        law.
            ``(4) Designated federal grant-in-aid programs defined.--In 
        this subsection, the term `designated Federal grant-in-aid 
        programs' means such existing or future Federal grant-in-aid 
        programs assisting in the construction or equipping of 
        facilities as the Federal Cochairman may, in furtherance of the 
        purposes of this Act, designate as eligible for allocation of 
        funds under this section.
            ``(5) Consideration of relative need in determining 
        amount.--In determining the amount of any supplementary grant 
        available to any project under this section, a Regional 
        Commission shall take into consideration the relative needs of 
        the area and the nature of the projects to be assisted.
    ``(d) Regulations.--The Federal Cochairman shall prescribe rules, 
regulations, and procedures to carry out this section which will assure 
that adequate consideration is given to the relative needs of eligible 
areas. In prescribing such rules, regulations, and procedures the 
Federal Cochairman shall consider among other relevant factors--
            ``(1) the severity of the rates of unemployment in the 
        eligible areas and the duration of such unemployment; and
            ``(2) the income levels of families and the extent of 
        underemployment in eligible areas.
    ``(e) Review and Comment Upon Projects by Local Governmental 
Authorities.--The Federal Cochairman shall prescribe regulations which 
will assure that appropriate local governmental authorities have been 
given a reasonable opportunity to review and comment upon proposed 
projects under this section.

``SEC. 202. CONSTRUCTION COST INCREASES.

    ``In any case where a grant (including a supplemental grant) has 
been made by a Regional Commission under this title for a project and 
after such grant has been made but before completion of the project, 
the cost of such project based upon the designs and specifications 
which were the basis of the grant has been increased because of 
increases in costs, the amount of such grant may be increased by an 
amount equal to the percentage increase, as determined by the Regional 
Commission, in such costs, but in no event shall the percentage of the 
Federal share of such project exceed that originally provided for in 
such grant.

``SEC. 203. USE OF FUNDS IN PROJECTS CONSTRUCTED UNDER PROJECTED COST.

    ``In any case where a grant (including a supplemental grant) has 
been made by a Regional Commission under this title for a project, and 
after such grant has been made but before completion of the project, 
the cost of such project based upon the designs and specifications 
which were the basis of the grant has decreased because of decreases in 
costs, such underrun funds may be used to improve the project either 
directly or indirectly as determined by the Regional Commission.

``SEC. 204. CHANGED PROJECT CIRCUMSTANCES.

    ``In any case where a grant (including a supplemental grant) has 
been made by a Regional Commission under this title for a project, and 
after such grant has been made but before completion of the project, 
the purpose or scope of such project based upon the designs and 
specifications which were the basis of the grant has changed, the 
Regional Commission may approve the use of grant funds on such changed 
project if the Regional Commission determines that such changed project 
meets the requirements of this title and that such changes are 
necessary to enhance economic development in the area.

  ``TITLE III--SPECIAL ECONOMIC DEVELOPMENT AND ADJUSTMENT ASSISTANCE

``SEC. 301. STATEMENT OF PURPOSE.

    ``The purpose of this title to provide special economic development 
and adjustment assistance programs to help State and local areas meet 
special needs arising from actual or threatened severe unemployment 
arising from economic dislocation, including unemployment arising from 
actions of the Federal Government and from compliance with 
environmental requirements which remove economic activities from a 
locality, and economic adjustment problems resulting from severe 
changes in economic conditions (including long-term economic 
deterioration), and to encourage cooperative intergovernmental action 
to prevent or solve economic adjustment problems. Nothing in this title 
is intended to replace the efforts of the economic adjustment program 
of the Department of Defense.

``SEC. 302. GRANTS BY REGIONAL COMMISSIONS.

    ``(a) In General.--A Regional Commission is authorized to make 
grants directly to any eligible recipient in an area which the Regional 
Commission determines, in accordance with criteria to be established by 
the Federal Cochairman by regulation--
            ``(1) has experienced, or may reasonably be foreseen to be 
        about to experience, a special need to meet an expected rise in 
        unemployment, or other economic adjustment problems (including 
        those caused by any action or decision of the Federal 
        Government); or
            ``(2) has demonstrated long-term economic deterioration.
    ``(b) Purposes.--Amounts from grants under subsection (a) shall be 
used by an eligible recipient to carry out or develop an investment 
strategy which--
            ``(1) meets the requirements of section 503; and
            ``(2) is approved by the Regional Commission.
    ``(c) Types of Assistance.--In carrying out an investment strategy 
using amounts from grants under subsection (a), an eligible recipient 
may provide assistance for any of the following:
            ``(1) Public facilities.
            ``(2) Public services.
            ``(3) Business development.
            ``(4) Planning.
            ``(5) Research and technical assistance.
            ``(6) Administrative expenses.
            ``(7) Training.
            ``(8) Relocation of individuals and businesses.
            ``(9) Other assistance which demonstrably furthers the 
        economic adjustment objectives of this title.
    ``(d) Direct Expenditure or Redistribution by Recipient.--Amounts 
from grants under subsection (a) may be used in direct expenditures by 
the eligible recipient or through redistribution by the eligible 
recipient to public and private entities in grants, loans, loan 
guarantees, payments to reduce interest on loan guarantees, or other 
appropriate assistance, but no grant shall be made by an eligible 
recipient to a private profit-making entity.
    ``(e) Coordination.--A Regional Commission to the extent 
practicable shall coordinate the activities relating to the 
requirements for investment strategies and making grants and loans 
under this title with other Federal programs, States, economic 
development districts, and other appropriate planning and development 
organizations.
    ``(f) Base Closings and Realignments.--
            ``(1) Location of projects.--In any case in which a 
        Regional Commission determines a need for assistance under 
        subsection (a) due to the closure or realignment of a military 
        installation, the Regional Commission may make such assistance 
        available for projects to be carried out on the military 
        installation and for projects to be carried out in communities 
        adversely affected by the closure or realignment.
            ``(2) Interest in property.--Notwithstanding any other 
        provision of law, a Regional Commission may provide to an 
        eligible recipient any assistance available under this Act for 
        a project to be carried out on a military installation that is 
        closed or scheduled for closure or realignment without 
        requiring that the eligible recipient have title to the 
        property or a leasehold interest in the property for any 
        specified term.

``SEC. 303. ANNUAL REPORTS BY RECIPIENT.

    ``Each eligible recipient which receives assistance under this 
title from a Regional Commission shall annually during the period such 
assistance continue to make a full and complete report to the Regional 
Commission, in such manner as the Regional Commission shall prescribe, 
and such report shall contain an evaluation of the effectiveness of the 
economic assistance provided under this title in meeting the need it 
was designed to alleviate and the purposes of this title.

``SEC. 304. SALE OF FINANCIAL INSTRUMENTS IN REVOLVING LOAN FUNDS.

    ``Any loan, loan guarantee, equity, or other financial instrument 
in the portfolio of a revolving loan fund, including any financial 
instrument made available using amounts from a grant made before the 
effective date of the Economic Development Partnership Act of 1995, may 
be sold, encumbered, or pledged at the discretion of the grantee of the 
Fund, to a third party provided that the net proceeds of the 
transaction--
            ``(1) shall be deposited into the Fund and may only be used 
        for activities which are consistent with the purposes of this 
        title; and
            ``(2) shall be subject to the financial management, 
        accounting, reporting, and auditing standards which were 
        originally applicable to the grant.

``SEC. 305. TREATMENT OF REVOLVING LOAN FUNDS.

    ``(a) In General.--Amounts from grants made under this title which 
are used by an eligible recipient to establish a revolving loan fund 
shall not be treated, except as provided by subsection (b), as amounts 
derived from Federal funds for the purposes of any Federal law after 
such amounts are loaned from the fund to a borrower and repaid to the 
fund.
    ``(b) Exceptions.--Amounts described in subsection (a) which are 
loaned from a revolving loan fund to a borrower and repaid to the 
fund--
            ``(1) may only be used for activities which are consistent 
        with the purposes of this title; and
            ``(2) shall be subject to the financial management, 
        accounting, reporting, and auditing standards which were 
        originally applicable to the grant.
    ``(c) Regulations.--Not later than 30 days after the effective date 
of the Economic Development Partnership Act of 1995, the Federal 
Cochairman shall issue regulations to carry out subsection (a).
    ``(d) Public Review and Comment.--Before issuing any final 
guidelines or administrative manuals governing the operation of 
revolving loan funds established using amounts from grants under this 
title, the Federal Cochairman shall provide reasonable opportunity for 
public review of and comment on such guidelines and administrative 
manuals.
    ``(e) Applicability to Past Grants.--The requirements of this 
section applicable to amounts from grants made under this title shall 
also apply to amounts from grants made, before the effective date of 
the Economic Development Partnership Act of 1995, under title I of this 
Act, as in effect on the day before such effective date.

      ``TITLE IV--TECHNICAL ASSISTANCE, RESEARCH, AND INFORMATION

``SEC. 401. TECHNICAL ASSISTANCE.

    ``(a) In General.--In carrying out its duties under this Act, a 
Regional Commission may provide technical assistance which would be 
useful in alleviating or preventing conditions of excessive 
unemployment or underemployment to areas which the Regional Commission 
finds have substantial need for such assistance. Such assistance shall 
include project planning and feasibility studies, management and 
operational assistance, establishment of business outreach centers, and 
studies evaluating the needs of, and development potentialities for, 
economic growth of such areas.
    ``(b) Procedures and Terms.--
            ``(1) Manner of providing assistance.--Assistance may be 
        provided by a Regional Commission through--
                    ``(A) members of the Regional Commission's staff;
                    ``(B) the payment of funds authorized for this 
                section to departments or agencies of the Federal 
                Government;
                    ``(C) the employment of private individuals, 
                partnerships, firms, corporations, or suitable 
                institutions under contracts entered into for such 
                purposes; or
                    ``(D) grants-in-aid to appropriate public or 
                private nonprofit State, area, district, or local 
                organizations.
            ``(2) Repayment terms.--A Regional Commission, in its 
        discretion, may require the repayment of assistance provided 
        under this subsection and prescribe the terms and conditions of 
        such repayment.
    ``(c) Grants Covering Administrative Expenses.--
            ``(1) In general.--A Regional Commission may make grants to 
        defray not to exceed 75 percent of the administrative expenses 
        of organizations which the Regional Commission determines to be 
        qualified to receive grants-in-aid under subsections (a) and 
        (b); except that in the case of a grant under this subsection 
        to an Indian tribe, the Regional Commission is authorized to 
        defray up to 100 percent of such expenses.
            ``(2) Determination of non-federal share.--In determining 
        the amount of the non-Federal share of such costs or expenses, 
        a Regional Commission shall give due consideration to all 
        contributions both in cash and in kind, fairly evaluated, 
        including contributions of space, equipment, and services.
            ``(3) Use of grants with planning grants.--Where 
        practicable, grants-in-aid authorized under this subsection 
        shall be used in conjunction with other available planning 
        grants to assure adequate and effective planning and economical 
        use of funds.
    ``(d) Availability of Technical Information; Federal Procurement.--
A Regional Commission shall aid areas described in section 502(a) and 
other areas by furnishing to interested individuals, communities, 
industries, and enterprises within such areas any assistance, technical 
information, market research, or other forms of assistance, 
information, or advice which would be useful in alleviating or 
preventing conditions of excessive unemployment or underemployment 
within such areas. The Regional Commission may furnish the procurement 
divisions of the various departments, agencies, and other 
instrumentalities of the Federal Government with a list containing the 
names and addresses of business firms which are located in areas 
described in section 502(a) and which are desirous of obtaining 
Government contracts for the furnishing of supplies or services, and 
designating the supplies and services such firms are engaged in 
providing.

``SEC. 402. ECONOMIC DEVELOPMENT PLANNING.

    ``(a) Direct Grants.--
            ``(1) In general.--A Regional Commission may, upon 
        application of any State, or city, or other political 
        subdivision of a State, or sub-State planning and development 
        organization (including an area described in section 502(a) or 
        an economic development district), make direct grants to such 
        State, city, or other political subdivision, or organization to 
        pay up to 80 percent of the cost for economic development 
        planning.
            ``(2) Planning projects specifically included.--The 
        planning for cities, other political subdivisions, and sub-
        State planning and development organizations (including areas 
        described in section 502(a) and economic development districts) 
        assisted under this section shall include systematic efforts to 
        reduce unemployment and increase incomes.
            ``(3) Planning process.--The planning shall be a continuous 
        process involving public officials and private citizens in 
        analyzing local economies, defining development goals, 
        determining project opportunities, and formulating and 
        implementing a development program.
            ``(4) Coordination of assistance under section 401(c).--The 
        assistance available under this section may be provided in 
        addition to assistance available under section 401(c) but shall 
        not supplant such assistance.
    ``(b) Compliance With Review Procedure.--The planning assistance 
authorized under this title shall be used in conjunction with any other 
available Federal planning assistance to assure adequate and effective 
planning and economical use of funds.

            ``TITLE V--ELIGIBILITY AND INVESTMENT STRATEGIES

                         ``PART A--ELIGIBILITY

``SEC. 501. ELIGIBLE RECIPIENT DEFINED.

    ``In this Act, the term `eligible recipient' means an area 
described in section 502(a), an economic development district 
designated under section 510, an Indian tribe, a State, a city or other 
political subdivision of a State, or a consortium of such political 
subdivisions, or a public or private nonprofit organization or 
association acting in cooperation with officials of such political 
subdivisions.

``SEC. 502. AREA ELIGIBILITY.

    ``(a) Certification.--In order to be eligible for assistance under 
title II, an applicant seeking assistance to undertake a project in an 
area shall certify, as part of an application for such assistance, that 
the area on the date of submission of such application meets 1 or more 
of the following criteria:
            ``(1) The area has a per capita income of 80 percent or 
        less of the national average.
            ``(2) The area has an unemployment rate 1 percent above the 
        national average percentage for the most recent 24-month period 
        for which statistics are available.
            ``(3) The area has experienced or is about to experience a 
        sudden economic dislocation resulting in job loss that is 
        significant both in terms of the number of jobs eliminated and 
        the effect upon the employment rate of the area.
            ``(4) The area is a community or neighborhood (defined 
        without regard to political or other subdivisions or 
        boundaries) which the Federal Cochairman determines has one or 
        more of the following conditions:
                    ``(A) A large concentration of low-income persons.
                    ``(B) Rural areas having substantial out-migration.
                    ``(C) Substantial unemployment.
    ``(b) Documentation.--A certification made under subsection (a) 
shall be supported by Federal data, when available, and in other cases 
by data available through the State government. Such documentation 
shall be accepted by a Regional Commission unless it is determined to 
be inaccurate. The most recent statistics available shall be used.
    ``(c) Special Rule.--An area which a Regional Commission determines 
has 1 or more of the conditions described in subsection (a)(4)--
            ``(1) shall not be subject to the requirements of 
        subparagraphs (A) and (C) of section 201(a)(1); and
            ``(2) shall not be eligible to meet the requirements of 
        section 510(a)(1)(B).
    ``(d) Prior Designations.--Any designation of a redevelopment area 
made before the effective date of the Economic Development Partnership 
Act of 1995 shall not be effective after such effective date.

``SEC. 503. INVESTMENT STRATEGY.

    ``A Regional Commission may provide assistance under titles II and 
III to an applicant for a project only if the applicant submits to the 
Regional Commission, as part of an application for such assistance, and 
the Regional Commission approves an investment strategy which--
            ``(1) identifies the economic development problems to be 
        addressed using such assistance;
            ``(2) identifies past, present, and projected future 
        economic development investments in the area receiving such 
        assistance and public and private participants and sources of 
        funding for such investments;
            ``(3) sets forth a strategy for addressing the economic 
        problems identified pursuant to paragraph (1) and describes how 
        the strategy will solve such problems;
            ``(4) provides a description of the project necessary to 
        implement the strategy, estimates of costs, and timetables; and
            ``(5) provides a summary of public and private resources 
        expected to be available for the project.

``SEC. 504. APPROVAL OF PROJECTS.

    ``Only applications for grants or other assistance under this Act 
for specific projects shall be approved which are certified by the 
State member of the Regional Commission representing such applicant and 
determined by the Federal Cochairman--
            ``(1) to be included in a State investment strategy 
        approved by the Regional Commission;
            ``(2) to have adequate assurance that the project will be 
        properly administered, operated, and maintained; and
            ``(3) to otherwise meet the requirements for assistance 
        under this Act.

                ``PART B--ECONOMIC DEVELOPMENT DISTRICTS

``SEC. 510. DESIGNATION OF ECONOMIC DEVELOPMENT DISTRICTS AND ECONOMIC 
                    DEVELOPMENT CENTERS.

    ``(a) In General.--In order that economic development projects of 
broader geographic significance may be planned and carried out, a 
Regional Commission may--
            ``(1) designate appropriate `economic development 
        districts' within the United States with the concurrence of the 
        States in which such districts will be wholly or partially 
        located, if--
                    ``(A) the proposed district is of sufficient size 
                or population, and contains sufficient resources, to 
                foster economic development on a scale involving more 
                than a single area described in section 502(a);
                    ``(B) the proposed district contains at least 1 
                area described in section 502(a);
                    ``(C) the proposed district contains 1 or more 
                areas described in section 502(a) or economic 
                development centers identified in an approved district 
                investment strategy as having sufficient size and 
                potential to foster the economic growth activities 
                necessary to alleviate the distress of the areas 
                described in section 502(a) within the district; and
                    ``(D) the proposed district has a district 
                investment strategy which includes adequate land use 
                and transportation planning and contains a specific 
                program for district cooperation, self-help, and public 
                investment and is approved by the State or States 
                affected and by the Regional Commission;
            ``(2) designate as `economic development centers', in 
        accordance with such regulations as the Federal Cochairman 
        shall prescribe, such areas as the Regional Commission may deem 
        appropriate, if--
                    ``(A) the proposed center has been identified and 
                included in an approved district investment strategy 
                and recommended by the State or States affected for 
                such special designation;
                    ``(B) the proposed center is geographically and 
                economically so related to the district that its 
                economic growth may reasonably be expected to 
                contribute significantly to the alleviation of distress 
                in the areas described in section 502(a) of the 
                district; and
                    ``(C) the proposed center does not have a 
                population in excess of 250,000 according to the most 
                recent Federal census.
            ``(3) provide financial assistance in accordance with the 
        criteria of this Act, except as may be herein otherwise 
        provided, for projects in economic development centers 
        designated under subsection (a)(2), if--
                    ``(A) the project will further the objectives of 
                the investment strategy of the district in which it is 
                to be located:
                    ``(B) the project will enhance the economic growth 
                potential of the district or result in additional long-
                term employment opportunities commensurate with the 
                amount of Federal financial assistance requested; and
                    ``(C) the amount of Federal financial assistance 
                requested is reasonably related to the size, 
                population, and economic needs of the district;
            ``(4) subject to the 20 percent non-Federal share required 
        for any project by section 201(c), increase the amount of grant 
        assistance authorized by section 201 for projects within areas 
        described in section 502(a), by an amount not to exceed 10 
        percent of the aggregate cost of any such project, in 
        accordance with such regulations as the Federal Cochairman 
        shall prescribe if--
                    ``(A) the area described in section 502(a) is 
                situated within a designated economic development 
                district and is actively participating in the economic 
                development activities of the district; and
                    ``(B) the project is consistent with an approved 
                investment strategy.
    ``(b) Authorities.--In designating economic development districts 
and approving district investment strategies under subsection (a), a 
Regional Commission may, under regulations prescribed by the Federal 
Cochairman--
            ``(1) invite the several States to draw up proposed 
        district boundaries and to identify potential economic 
        development centers;
            ``(2) cooperate with the several States--
                    ``(A) in sponsoring and assisting district economic 
                planning and development groups; and
                    ``(B) in assisting such district groups to 
                formulate district investment strategies; and
            ``(3) encourage participation by appropriate local 
        governmental authorities in such economic development 
        districts.
    ``(c) Termination or Modification of Designations.--The Federal 
Cochairman shall by regulation prescribe standards for the termination 
or modification of economic development districts and economic 
development centers designated under the authority of this section.
    ``(d) Definitions.--In this Act, the following definitions apply:
            ``(1) Economic development district.--The term `economic 
        development district' refers to any area within the United 
        States composed of cooperating areas described in section 
        502(a) and, where appropriate, designated economic development 
        centers and neighboring counties or communities, which has been 
        designated by a Regional Commission as an economic development 
        district. Such term includes any economic development district 
        designated under section 403 of this Act, as in effect on the 
        day before the effective date of the Economic Development 
        Partnership Act of 1995.
            ``(2) Economic development center.--The term `economic 
        development center' refers to any area within the United States 
        which has been identified as an economic development center in 
        an approved investment strategy and which has been designated 
        by a Regional Commission as eligible for financial assistance 
        under this Act in accordance with the provisions of this 
        section.
            ``(3) Local government.--The term `local government' means 
        any city, county, town, parish, village, or other general-
        purpose political subdivision of a State.
    ``(e) Parts of Economic Development Districts Not Within Areas 
Described in Section 502(a).-- A Regional Commission is authorized to 
provide the financial assistance which is available to an area 
described in section 502(a) under this Act to those parts of an 
economic development district which are not within an area described in 
section 502(a), when such assistance will be of a substantial direct 
benefit to an area described in section 502(a) within such district. 
Such financial assistance shall be provided in the same manner and to 
the same extent as is provided in this Act for an area described in 
section 502(a); except that nothing in this subsection shall be 
construed to permit such parts to receive the increase in the amount of 
grant assistance authorized subsection (a)(4).

                       ``TITLE VI--ADMINISTRATION

``SEC. 601. FUNCTIONS OF ECONOMIC DEVELOPMENT COMMISSION.

    ``In administering the Economic Development Commission, the Federal 
Cochairman shall ensure that the Commission--
            ``(1) serves as a central information clearinghouse on 
        matters relating to economic development, economic adjustment, 
        disaster recovery, and defense conversion programs and 
        activities of the Federal and State governments, including 
        political subdivisions of the States; and
            ``(2) helps potential and actual applicants for economic 
        development, economic adjustment, disaster recovery, and 
        defense conversion assistance under Federal, State, and local 
        laws in locating and applying for such assistance, including 
        financial and technical assistance.

``SEC. 602. CONSULTATION WITH OTHER PERSONS AND AGENCIES.

    ``(a) Consultation on Problems Relating to Employment.--The Federal 
Cochairman is authorized from time to time to call together and confer 
with any persons, including representatives of labor, management, 
agriculture, and government, who can assist in meeting the problems of 
area and regional unemployment or underemployment.
    ``(b) Consultation on Administration of Act.--The Federal 
Cochairman may make provisions for such consultation with interested 
departments and agencies as the Federal Cochairman may deem appropriate 
in the performance of the functions vested in the Federal Cochairman by 
this Act.

``SEC. 603. ADMINISTRATION, OPERATION, AND MAINTENANCE.

    ``No Federal assistance shall be approved under this Act unless the 
Federal Cochairman is satisfied that the project for which Federal 
assistance is granted will be properly and efficiently administered, 
operated, and maintained.

``SEC. 604. TREATMENT OF ECONOMIC DEVELOPMENT ADMINISTRATION EMPLOYEES.

    ``In considering applications for employment at the Economic 
Development Commission or in a Regional Commission, preference shall be 
given to individuals who are employees of the Economic Development 
Administration on the effective date of the Economic Development 
Partnership Act of 1995.

                       ``TITLE VII--MISCELLANEOUS

``SEC. 701. POWERS OF FEDERAL COCHAIRMAN.

    ``(a) In General.--In performing the Federal Cochairman's duties 
under this Act, the Federal Cochairman is authorized to--
            ``(1) adopt, alter, and use a seal, which shall be 
        judicially noticed;
            ``(2) subject to the civil-service and classification laws, 
        select, employ, appoint, and fix the compensation of such 
        personnel as may be necessary to carry out the provisions of 
        this Act;
            ``(3) hold such hearings, sit and act at such times and 
        places, and take such testimony, as the Federal Cochairman may 
        deem advisable;
            ``(4) request directly from any executive department, 
        bureau, agency, board, commission, office, independent 
        establishment, or instrumentality information, suggestions, 
        estimates, and statistics needed to carry out the purposes of 
        this Act; and each department, bureau, agency, board, 
        commission, office, establishment, or instrumentality is 
        authorized to furnish such information, suggestions, estimates, 
        and statistics directly to the Federal Cochairman;
            ``(5) under regulations prescribed by the Federal 
        Cochairman, assign or sell at public or private sale, or 
        otherwise dispose of for cash or credit, in the Federal 
        Cochairman's discretion and upon such terms and conditions and 
        for such consideration as the Federal Cochairman determines to 
        be reasonable, any evidence of debt, contract, claim, personal 
        property, or security assigned to or held by the Federal 
        Cochairman in connection with assistance extended under this 
        Act, and collect or compromise all obligations assigned to or 
        held by the Federal Cochairman in connection with such 
        assistance until such time as such obligations may be referred 
        to the Attorney General for suit or collection;
            ``(6) deal with, complete, renovate, improve, modernize, 
        insure, rent, or sell for cash or credit, upon such terms and 
        conditions and for such consideration as the Federal Cochairman 
        determines to be reasonable, any real or personal property 
        conveyed to, or otherwise acquired by the Federal Cochairman in 
        connection with assistance extended under this Act;
            ``(7) pursue to final collection, by way of compromise or 
        other administrative action, prior to reference to the Attorney 
        General, all claims against third parties assigned to the 
        Federal Cochairman in connection with assistance extended this 
        Act;
            ``(8) acquire, in any lawful manner and in accordance with 
        the requirements of the Federal Property and Administrative 
        Services Act of 1949, any property (real, personal, or mixed, 
        tangible or intangible), whenever necessary or appropriate to 
        the conduct of the activities authorized under this Act;
            ``(9) in addition to any powers, functions, privileges, and 
        immunities otherwise vested in the Federal Cochairman, take any 
        action, including the procurement of the services of attorneys 
        by contract, determined by the Federal Cochairman to be 
        necessary or desirable in making, purchasing, servicing, 
        compromising, modifying, liquidating, or otherwise 
        administratively dealing with assets held in connection with 
        financial assistance extended under this Act;
            ``(10) employ experts and consultants or organizations as 
        authorized by section 3109 of title 5, United States Code, 
        compensate individuals so employed at rates not in excess of 
        $100 per diem, including travel time, and allow them, while 
        away from their homes or regular places of business, travel 
        expenses (including per diem in lieu of subsistence) as 
        authorized by section 5703 of title 5, United States Code, for 
        persons in the Government service employed intermittently, 
        while so employed, except that contracts for such employment 
        may be renewed annually;
            ``(11) sue and be sued in any court of record of a State 
        having general jurisdiction or in any United States district 
        court, and jurisdiction is conferred upon such district court 
        to determine such controversies without regard to the amount in 
        controversy; but no attachment, injunction, garnishment, or 
        other similar process, mesne or final, shall be issued against 
        the Federal Cochairman or the Federal Cochairman's property;
            ``(12) make discretionary grants, pursuant to authorities 
        otherwise available to a Regional Commission under this Act and 
        without regard to the requirements of section 504, to implement 
        significant regional initiatives, to take advantage of special 
        development opportunities, or to respond to emergency economic 
        distress in the region from the funds withheld from 
        distribution to the Regional Commissions; except that the 
        aggregate amount of such discretionary grants in any fiscal 
        year may not exceed 10 percent of the amounts appropriated 
        under title VIII for such fiscal year; and
            ``(13) establish such rules, regulations, and procedures as 
        the Federal Cochairman considers appropriate in carrying out 
        the provisions of this Act.
    ``(b) Deficiency Judgments.--The authority under subsection (a)(7) 
to pursue claims shall include the authority to obtain deficiency 
judgments or otherwise in the case of mortgages assigned to the Federal 
Cochairman.
    ``(c) Inapplicability of Certain Other Requirements.--Section 3709 
of the Revised Statutes of the United States shall not apply to any 
contract of hazard insurance or to any purchase or contract for 
services or supplies on account of property obtained by the Federal 
Cochairman as a result of assistance extended under this Act if the 
premium for the insurance or the amount of the insurance does not 
exceed $1,000.
    ``(d) Powers of Conveyance and Execution.--The power to convey and 
to execute, in the name of the Federal Cochairman, deeds of conveyance, 
deeds of release, assignments and satisfactions of mortgages, and any 
other written instrument relating to real or personal property or any 
interest therein acquired by the Federal Cochairman pursuant to the 
provisions of this Act may be exercised by the Federal Cochairman, or 
by any officer or agent appointed by the Federal Cochairman for such 
purpose, without the execution of any express delegation of power or 
power of attorney.

``SEC. 702. ALLOCATION OF FUNDS.

    The Federal Cochairman shall establish a formula for the equitable 
allocation among the Regional Commissions of amounts appropriated to 
carry out this Act.

``SEC. 703. PERFORMANCE MEASURES.

    ``The Federal Cochairman shall establish performance measures for 
grants and other assistance provided under this Act. Such performance 
measures shall be used to evaluate project proposals and conduct 
evaluations of projects receiving such assistance.

``SEC. 704. MAINTENANCE OF STANDARDS.

    ``The Federal Cochairman shall continue to implement and enforce 
the provisions of section 712 of this Act, as in effect on the day 
before the effective date of the Economic Development Partnership Act 
of 1995.

``SEC. 705. TRANSFER OF FUNCTIONS.

    ``The functions, powers, duties, and authorities and the assets, 
funds, contracts, loans, liabilities, commitments, authorizations, 
allocations, and records which are vested in or authorized to be 
transferred to the Secretary of the Treasury under section 29(b) of the 
Area Redevelopment Act, and all functions, powers, duties, and 
authorities under section 29(c) of such Act are hereby vested in the 
Federal Cochairman.

``SEC. 706. DEFINITION OF STATE.

    ``In this Act, the terms `State', `States', and `United States' 
include the several States and each of the other political entities 
included in a region established by section 106.

``SEC. 707. ANNUAL REPORT TO CONGRESS.

    ``The Federal Cochairman shall transmit a comprehensive and 
detailed annual report to Congress of the Federal Cochairman's and each 
Regional Commission's operations under this Act for each fiscal year 
beginning with the fiscal year ending September 30, 1996. Such report 
shall be printed and shall be transmitted to Congress not later than 
April 1 of the year following the fiscal year with respect to which 
such report is made.

``SEC. 708. USE OF OTHER FACILITIES.

    ``(a) Delegation of Functions to Other Federal Departments and 
Agencies.--The Federal Cochairman may delegate to the heads of other 
departments and agencies of the Federal Government any of the Federal 
Cochairman's functions, powers, and duties under this Act as the 
Federal Cochairman may deem appropriate, and to authorize the 
redelegation of such functions, powers, and duties by the heads of such 
departments and agencies.
    ``(b) Department and Agency Execution of Delegated Authority.--
Departments and agencies of the Federal Government shall exercise their 
powers, duties, and functions in such manner as will assist in carrying 
out the objectives of this Act.
    ``(c) Transfer Between Departments.--Funds authorized to be 
appropriated under this Act may be transferred between departments and 
agencies of the Government, if such funds are used for the purposes for 
which they are specifically authorized and appropriated.
    ``(d) Funds Transferred From Other Departments and Agencies.--In 
order to carry out the objectives of this Act, the Federal Cochairman 
may accept transfers of funds from other departments and agencies of 
the Federal Government if the funds are used for the purposes for which 
(and in accordance with the terms under which) the funds are 
specifically authorized and appropriated. Such transferred funds shall 
remain available until expended, and may be transferred to and merged 
with the appropriations under the heading `salaries and expenses' by 
the Federal Cochairman to the extent necessary to administer the 
program.

``SEC. 709. PENALTIES.

    ``(a) False Statements; Security Overvaluation.--Whoever makes any 
statement knowing it to be false, or whoever willfully overvalues any 
security, for the purpose of obtaining for such person or for any 
applicant any financial assistance under this Act or any extension of 
such assistance by renewal, deferment or action, or otherwise, or the 
acceptance, release, or substitution of security for such assistance, 
or for the purpose of influencing in any way the action of the Federal 
Cochairman or a Regional Commission or for the purpose of obtaining 
money, property, or anything of value, under this Act, shall be fined 
under title 18, United States Code, imprisoned for not more than 5 
years, or both.
    ``(b) Embezzlement and Fraud-Related Crimes.--Whoever, being 
connected in any capacity with the Federal Cochairman or a Regional 
Commission, in the administration of this Act--
            ``(1) embezzles, abstracts, purloins, or willfully 
        misapplies any moneys, funds, securities, or other things of 
        value, whether belonging to such person or pledged or otherwise 
        entrusted to such person;
            ``(2) with intent to defraud the Federal Cochairman or a 
        Regional Commission or any other body politic or corporate, or 
        any individual, or to deceive any officer, auditor, or 
        examiner, makes any false entry in any book, report, or 
        statement of or to the Federal Cochairman or a Regional 
        Commission, or without being duly authorized draws any orders 
        or issues, puts forth, or assigns any note, debenture, bond, or 
        other obligation, or draft, bill of exchange, mortgage, 
        judgment, or decree thereof;
            ``(3) with intent to defraud participates or shares in or 
        receives directly or indirectly any money, profit, property, or 
        benefit through any transaction, loan, grant, commission, 
        contract, or any other act of the Federal Cochairman or a 
        Regional Commission; or
            ``(4) gives any unauthorized information concerning any 
        future action of plan of the Federal Cochairman or a Regional 
        Commission which might affect the value of securities, or 
        having such knowledge invests or speculates, directly or 
        indirectly, in the securities or property of any company or 
        corporation receiving loans, grants, or other assistance from 
        the Federal Cochairman or a Regional Commission,
shall be fined under title 18, United States Code, imprisoned for not 
more than 5 years, or both.

``SEC. 710. EMPLOYMENT OF EXPEDITERS AND ADMINISTRATIVE EMPLOYEES.

    ``No financial assistance shall be extended by a Regional 
Commission under this Act to any business enterprise unless the owners, 
partners, or officers of such business enterprise--
            ``(1) certify to the Regional Commission the names of any 
        attorneys, agents, and other persons engaged by or on behalf of 
        such business enterprise for the purpose of expediting 
        applications made to the Regional Commission for assistance of 
        any sort, under this Act, and the fees paid or to be paid to 
        any such person; and
            ``(2) execute an agreement binding such business 
        enterprise, for a period of 2 years after such assistance is 
        rendered by the Regional Commission to such business 
        enterprise, to refrain from employing, tendering any office or 
        employment to, or retaining for professional services, any 
        person who, on the date such assistance or any part thereof was 
        rendered, or within the 1-year period ending on such date, 
        shall have served as an officer, attorney, agent, or employee, 
        occupying a position or engaging in activities which the 
        Regional Commission determines involves discretion with respect 
        to the granting of assistance under this Act.

``SEC. 711. PERSONAL FINANCIAL INTERESTS.

    ``(a) In General.--Except as permitted by subsection (b), no State 
member or alternate and no officer or employee of a Regional Commission 
shall participate personally and substantially as member, alternate, 
officer, or employee, through decision, approval, disapproval, 
recommendation, the rendering of advice, investigation, or otherwise, 
in any proceeding, application, request for a ruling or other 
determination, contract, claim, controversy, or other particular matter 
in which, to the individual's knowledge, the individual, the 
individual's spouse, minor child, partner, organization (other than a 
State or political subdivision thereof) in which the individual is 
serving as officer, director, trustee, partner, or employee, or any 
person or organization with whom the individual is serving as officer, 
director, trustee, partner, or employee, or any person or organization 
with whom the individual is negotiating or has any arrangement 
concerning prospective employment, has a financial interest. Any 
individual who shall violate the provisions of this subsection shall be 
fined under title 18, United States Code, imprisoned for not more than 
2 years, or both.
    ``(b) Exception.--Subsection (a) shall not apply if the State 
member, alternate, officer, or employee first advises the Regional 
Commission of the nature and circumstances of the proceeding, 
application, request for a ruling or other determination, contract, 
claim, controversy, or other particular matter and makes full 
disclosure of the financial interest and receives in advance a written 
determination made by the Regional Commission that the interest is not 
so substantial as to be deemed likely to affect the integrity of the 
services which the Regional Commission may expect from such State 
member, alternate, officer, or employee.
    ``(c) Salaries.--No State member or alternate of a Regional 
Commission shall receive any salary, or any contribution to or 
supplementation of salary for the individual's services on the Regional 
Commission from any source other than the State of the individual. No 
individual detailed to serve the Regional Commission under authority of 
section 105 shall receive any salary or any contribution to or 
supplementation of salary for the individual's services on the Regional 
Commission from any source other than the State, local, or 
intergovernmental department or agency from which he was detailed or 
from the Regional Commission. Any individual who shall violate the 
provisions of this subsection shall be fined under title 18, United 
States Code, imprisoned for not more than 1 year, or both.
    ``(d) Nonapplicability to Federal Officials.--Notwithstanding any 
other provision of this section, the Federal Cochairman (or the Federal 
Cochairman's alternate) and any Federal officers or employees detailed 
to duty with a Regional Commission pursuant to section 105 shall not be 
subject to such provisions but shall remain subject to sections 202 
through 209 of title 18, United States Code.
    ``(e) Authority To Rescind Certain Agreements.--A Regional 
Commission may, in the Regional Commission's discretion, declare void 
and rescind any agreement to extend financial assistance under this Act 
entered into by the Regional Commission in relation to which the 
Regional Commission finds that there has been a violation of subsection 
(a) or (c) of this section or any of the provisions of sections 202 
through 209 of title 18, United States Code.

``SEC. 712. MAINTENANCE OF RECORDS OF APPROVED APPLICATIONS FOR 
                    FINANCIAL ASSISTANCE; PUBLIC INSPECTION.

    ``(a) Maintenance of Record Required.--The Federal Cochairman shall 
maintain as a permanent part of the records of the Economic Development 
Commission a list of applications approved for financial assistance 
under this Act, which shall be kept available for public inspection 
during the regular business hours of the Economic Development 
Commission.
    ``(b) Posting to List.--The following information shall be posted 
in such list as soon as each application is approved:
            ``(1) The name of the applicant and, in the case of 
        corporate applications, the names of the officers and directors 
        thereof.
            ``(2) The amount and duration of the financial assistance 
        for which application is made.
            ``(3) The purposes for which the proceeds of the financial 
        assistance are to be used.

``SEC. 713. RECORDS AND AUDIT.

    ``(a) Recordkeeping and Disclosure Requirements.--Each recipient of 
assistance under this Act shall keep such records as the Federal 
Cochairman shall prescribe, including records which fully disclose the 
amount and the disposition by such recipient of the proceeds of such 
assistance, the total cost of the project or undertaking in connection 
with which such assistance is given or used, and the amount and nature 
of that portion of the cost of the project or undertaking supplied by 
other sources, and such other records as will facilitate an effective 
audit.
    ``(b) Access to Books for Examination and Audit.--The Federal 
Cochairman and the Comptroller General of the United States, or any of 
their duly authorized representatives, shall have access for the 
purpose of audit and examination to any books, documents, papers, and 
records of the recipient that are pertinent to assistance received 
under this Act.

``SEC. 714. PROHIBITION AGAINST A STATUTORY CONSTRUCTION WHICH MIGHT 
                    CAUSE DIMINUTION IN OTHER FEDERAL ASSISTANCE.

    ``All financial and technical assistance authorized under this Act 
shall be in addition to any Federal assistance previously authorized, 
and no provision of this Act shall be construed as authorizing or 
permitting any reduction or diminution in the proportional amount of 
Federal assistance to which any State or other entity eligible under 
this Act would otherwise be entitled under the provisions of any other 
Act.

``SEC. 715. ACCEPTANCE OF APPLICANTS' CERTIFICATIONS.

    ``A Regional Commission may accept, when deemed appropriate, the 
applicants' certifications to meet the requirements of this Act.

                         ``TITLE VIII--FUNDING

``SEC. 801. AUTHORIZATION OF APPROPRIATIONS

    ``There is authorized to be appropriated to carry out this Act 
$340,000,000 per fiscal year for each of fiscal years 1996, 1997, 1998, 
1999, and 2000. Such sums shall remain available until expended.

``SEC. 802. DEFENSE CONVERSION ACTIVITIES.

    ``In addition to the appropriations authorized by section 801, 
there are authorized to be appropriated to carry out this Act such sums 
as may be necessary to provide assistance for defense conversion 
activities. Such funding may include pilot projects for privatization 
and economic development activities for closed or realigned military 
installations. Such sums shall remain available until expended.''.

SEC. 10512. CONFORMING AMENDMENTS.

    Title 5, United States Code, is amended--
            (1) in section 5314 by adding at the end the following:
            ``Federal Cochairman of the Economic Development 
        Commission.''; and
            (2) in section 5316--
                    (A) by striking the following:
            ``Administrator for Economic Development.''; and
                    (B) by adding at the end the following:
            ``Alternate for the Federal Cochairman of the Economic 
        Development Commission.''.

SEC. 10513. SAVINGS PROVISIONS.

    (a) Legal Documents.--All orders, determinations, rules, 
regulations, permits, grants, loans, contracts, agreements, 
certificates, licenses, and privileges--
            (1) that have been issued, made, granted, or allowed to 
        become effective by the President, the Secretary of Commerce, 
        any officer or employee of any office transferred by this 
        chapter, or any other Government official, or by a court of 
        competent jurisdiction, in the performance of any function that 
        is transferred by this chapter; and
            (2) that are in effect on the effective date of such 
        transfer (or become effective after such date pursuant to their 
        terms as in effect on such effective date),
shall continue in effect according to their terms until modified, 
terminated, superseded, set aside, or revoked in accordance with law by 
the President, any other authorized official, a court of competent 
jurisdiction, or operation of law.
    (b) Proceedings.--This chapter shall not affect any proceedings or 
any application for any benefits, service, license, permit, 
certificate, or financial assistance pending on the date of the 
enactment of this Act before an office transferred by this chapter, but 
such proceedings and applications shall be continued. Orders shall be 
issued in such proceedings, appeals shall be taken therefrom, and 
payments shall be made pursuant to such orders, as if this chapter had 
not been enacted, and orders issued in any such proceeding shall 
continue in effect until modified, terminated, superseded, or revoked 
by a duly authorized official, by a court of competent jurisdiction, or 
by operation of law. Nothing in this subsection shall be considered to 
prohibit the discontinuance or modification of any such proceeding 
under the same terms and conditions and to the same extent that such 
proceeding could have been discontinued or modified if this chapter had 
not been enacted.
    (c) Suits.--This chapter shall not affect suits commenced before 
the date of the enactment of this Act, and in all such suits, 
proceeding shall be had, appeals taken, and judgments rendered in the 
same manner and with the same effect as if this chapter had not been 
enacted.
    (d) Nonabatement of Actions.--No suit, action, or other proceeding 
commenced by or against the Department of Commerce or the Secretary of 
Commerce, or by or against any individual in the official capacity of 
such individual as an officer or employee of an office transferred by 
this chapter, shall abate by reason of the enactment of this chapter.
    (e) Continuance of Suits.--If any officer of the Department of 
Commerce in the official capacity of such officer is party to a suit 
with respect to a function of the officer, and under this chapter such 
function is transferred to any other officer or office, then such suit 
shall be continued with the other officer or the head of such other 
office, as applicable, substituted or added as a party.

SEC. 10514. REFERENCES.

    Any reference in any other Federal law, Executive order, rule, 
regulation, or delegation of authority, or any document of or 
pertaining to an office from which a function is transferred by this 
chapter--
            (1) to the Secretary of Commerce or an officer of the 
        Department of Commerce, is deemed to refer to the head of the 
        department or office to which such function is transferred; or
            (2) to the Department of Commerce or an agency in the 
        Department of Commerce is deemed to refer to the department or 
        office to which such function is transferred.

              CHAPTER 2--APPALACHIAN REGIONAL DEVELOPMENT

SEC. 10521. FINDINGS AND PURPOSES.

    Section 2 of the Appalachian Regional Development Act of 1965 (40 
U.S.C. App. 2) is amended by adding at the end the following:
    ``(c) 1995 Findings and Purposes.--The Congress further finds and 
declares that, while substantial progress has been made in fulfilling 
many of the objectives of this Act, rapidly changing national and 
global economies over the past decade have created new problems and 
challenges for rural areas throughout the Nation and especially for the 
Appalachian region. It is, therefore, also the purpose of this Act to 
assist the region in providing the infrastructure necessary for 
economic and human resource development, in developing its industry, in 
building entrepreneurial communities, in generating a diversified 
regional economy, and in making its industrial and commercial resources 
more competitive in national and world markets. It is further the 
purpose of this Act to provide a framework for coordinating Federal, 
State, and local initiatives to respond to the economic competitive 
challenge through improving the skills of the region's workforce, 
adapting and applying new technologies for the region's businesses, and 
improving the access of the region's businesses to the technical and 
financial resources necessary to their development. Finally, it is the 
purpose of this Act to address the needs of severely and persistently 
distressed and underdeveloped areas of the region so as to provide a 
fairer opportunity for the people of the region to share the quality of 
life generally enjoyed by citizens across this Nation.''.

SEC. 10522. MEETINGS.

    (a) Annual Meeting Requirement.--Section 101(a) of the Appalachian 
Regional Development Act of 1965 (40 U.S.C. App. 101(a)) is amended by 
adding at the end the following: ``The Commission shall conduct at 
least one meeting each year with the Federal Cochairman and at least a 
majority of the State members present.''.
    (b) Additional Meetings by Electronic Means.--Section 101 of such 
Act (40 U.S.C. App. 101) is amended--
            (1) in subsection (a), as amended by subsection (a) of this 
        section, by adding at the end the following: ``The Commission 
        may conduct such additional meetings by electronic means as the 
        Commission considers advisable, including meetings to decide 
        matters requiring an affirmative vote.''; and
            (2) in subsection (c) by striking ``to be present'' at the 
        end of the fourth sentence.
    (c) Decisions Requiring a Quorum.--Section 101(b) of such Act (40 
U.S.C. App. 101(b)) is amended by striking the third sentence and 
inserting the following: ``No decision involving Commission policy, 
approval of State, regional, or subregional development plans or 
implementing investment programs, any modification or revision of the 
Appalachian Regional Commission Code, any allocation of funds among the 
State, or any designation of a distressed county or an economically 
competitive county may be made without a quorum of State members.''.

SEC. 10523. AUTHORIZATIONS FOR ADMINISTRATIVE EXPENSES.

    Section 105(b) of the Appalachian Regional Development Act of 1965 
(40 U.S.C. App. 105(b)) is amended to read as follows:
    ``(b) Authorization of Appropriations.--
            ``(1) In general.--There is authorized to be appropriated 
        to carry out this section $3,645,000 per fiscal year for each 
        of fiscal years 1996 through 2000. Such sums shall remain 
        available until expended.
            ``(2) Expenses of federal cochairman.--Of the amounts 
        appropriated pursuant to paragraph (1), not to exceed 
        $1,245,000 per fiscal year for each of fiscal years 1996 
        through 2000 shall be available for expenses of the Federal 
        Cochairman, the Federal Cochairman's alternate, and the Federal 
        Cochairman's staff.''.

SEC. 10524. ADMINISTRATIVE POWERS OF COMMISSION.

    (a) Authority To Lease.--Section 106(7) of the Appalachian Regional 
Development Act of 1965 (40 U.S.C. App. 106(7)) is amended--
            (1) by inserting ``subject to the requirements of the 
        Federal Property and Administrative Services Act of 1949,'' 
        after ``(7)'';
            (2) by striking ``notwithstanding any other provision of 
        law,''; and
            (3) by striking ``1982'' and inserting ``2000''.
    (b) Authority to Maintain Temporary Office.--Section 106(8) of such 
Act (40 U.S.C. App. 106(8)) is amended by inserting ``subject to the 
requirements of the Federal Property and Administrative Services Act of 
1949,'' after ``(8)''.

SEC. 10525. HIGHWAY SYSTEM.

    (a) Authorization of Appropriations.--Section 201(g) of the 
Appalachian Regional Development Act of 1965 (40 U.S.C. App. 201(g)) is 
amended to read as follows:
    ``(g) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $90,000,000 per fiscal year for 
each of fiscal years 1996 through 2000. Such sums shall remain 
available until expended.''.
    (b) Cost Sharing.--
            (1) In general.--Section 201(h)(1) of such Act (40 U.S.C. 
        App. 201(h)(1)) is amended by striking ``70 per centum'' and 
        inserting ``80 percent''.
            (2) Applicability.--The amendment made by paragraph (1) 
        shall apply to projects approved after March 31, 1979.

SEC. 10526. COST SHARING OF DEMONSTRATION HEALTH PROJECTS.

    (a) Operation Costs.--Section 202(c) of the Appalachian Regional 
Development Act of 1965 (40 U.S.C. App. 202(c)) is amended in the first 
sentence by striking ``100 per centum of the costs thereof'' and all 
that follows through the period at the end of the second sentence and 
inserting ``50 percent of the costs thereof (or 80 percent of such 
costs in the case of a project to be carried out in a county for which 
a distressed county designation is in effect under section 226).''.
    (b) Cost Sharing.--Section 202 of such Act (40 U.S.C. App. 202) is 
amended by adding at the end the following:
    ``(f) Maximum Commission Contribution After September 30, 1995.--
After September 30, 1995, not more than 50 percent of any project cost 
eligible for financial assistance under this section may be provided 
from funds appropriated to carry out this Act; except that such maximum 
Commission contribution may be increased to 80 percent, or to the 
percentage of the maximum Federal contribution authorized by this 
section, whichever is less, for a project to be carried out in a county 
for which a distressed county designation is in effect under section 
226.''.

SEC. 10527. REPEAL OF LAND STABILIZATION, CONSERVATION, AND EROSION 
                    CONTROL PROGRAM.

    Section 203 of the Appalachian Regional Development Act of 1965 (40 
U.S.C. App. 203) is repealed.

SEC. 10528. REPEAL OF TIMBER DEVELOPMENT PROGRAM.

    Section 204 of the Appalachian Regional Development Act of 1965 (40 
U.S.C. App. 204) is repealed.

SEC. 10529. REPEAL OF MINING AREA RESTORATION PROGRAM.

    Section 205 of the Appalachian Regional Development Act of 1965 (40 
U.S.C. App. 205) is repealed.

SEC. 10530. REPEAL OF WATER RESOURCE SURVEY.

    Section 206 of the Appalachian Regional Development Act of 1965 (40 
U.S.C. App. 206) is repealed.

SEC. 10531. COST SHARING OF HOUSING PROJECTS.

    (a) Loans.--Section 207(b) of the Appalachian Regional Development 
Act of 1965 (40 U.S.C. App. 207(b)) is amended by striking ``80 per 
centum'' and inserting ``50 percent (or 80 percent in the case of a 
project to be carried out in a county for which a distressed county 
designation is in effect under section 226)''.
    (b) Grants.--Section 207(c)(1) of such Act (40 U.S.C. 207(c)(1)) is 
amended by striking ``80 per centum'' and inserting ``50 percent (or 80 
percent in the case of a project to be carried out in a county for 
which a distressed county designation is in effect under section 
226)''.

SEC. 10532. REPEAL OF AIRPORT SAFETY IMPROVEMENTS PROGRAM.

    Section 208 of the Appalachian Regional Development Act of 1965 (40 
U.S.C. App. 208) is repealed.

SEC. 10533. COST SHARING OF VOCATIONAL EDUCATION AND EDUCATION 
                    DEMONSTRATION PROJECTS.

    (a) Operation Costs.--Section 211(b)(3) of the Appalachian Regional 
Development Act of 1965 (40 U.S.C. App. 211(b)(3)) is amended in the 
first sentence by striking ``100 per centum of the costs thereof'' and 
all that follows through the period at the end of the second sentence 
and inserting ``50 percent of the costs thereof (or 80 percent of such 
costs in the case of a project to be carried out in a county for which 
a distressed county designation is in effect under section 226).''
    (b) Cost Sharing.--Section 211 of such Act (40 U.S.C. App. 211) is 
amended by adding at the end the following:
    ``(c) Maximum Commission Contribution After September 30, 1995.--
After September 30, 1995, not more than 50 percent of any project cost 
eligible for financial assistance under this section may be provided 
from funds appropriated to carry out this Act; except that such maximum 
Commission contribution may be increased to 80 percent, or to the 
percentage of the maximum Federal contribution authorized by this 
section, whichever is less, for a project to be carried out in a county 
for which a distressed county designation is in effect under section 
226.''.

SEC. 10534. SEWAGE TREATMENT WORKS PROGRAM.

    Section 212 of the Appalachian Regional Development Act of 1965 (40 
U.S.C. App. 212) is repealed.

SEC. 10535. REPEAL OF AMENDMENTS TO HOUSING ACT OF 1954.

    Section 213 of the Appalachian Regional Development Act of 1965 (40 
U.S.C. App. 213) is repealed.

SEC. 10536. SUPPLEMENTS TO FEDERAL GRANT-IN-AID PROGRAMS.

    (a) Availability of Amounts.--The first sentence of section 214(a) 
of the Appalachian Regional Development Act of 1965 (40 U.S.C. App. 
214(a)) is amended by striking ``the President is authorized to provide 
funds to the Federal Cochairman to be used'' and inserting ``the 
Federal Cochairman may use amounts made available to carry out this 
section''.
    (b) Cost Sharing.--Section 214(b) of such Act (40 U.S.C. App. 
214(b)) is amended--
            (1) by striking ``(b)'' and inserting ``(b)(1)''; and
            (2) by adding at the end the following:
    ``(2) After September 30, 1995, not more than 50 percent of any 
project cost eligible for financial assistance under this section may 
be provided from funds appropriated to carry out this Act; except that 
such maximum Commission contribution may be increased to 80 percent for 
a project to be carried out in a county for which a distressed county 
designation is in effect under section 226.''.
    (c) Federal Grant-in-Aid Programs Defined.--The first sentence of 
section 214(c) of such Act (40 U.S.C. App. 214(c)) is amended by 
striking ``on or before December 31, 1980,''.
    (d) Limitation on Covered Road Projects.--The second sentence of 
section 214(c) of such Act is amended by inserting ``authorized by 
title 23, United States Code'' after ``road construction''.

SEC. 10537. PROGRAM DEVELOPMENT CRITERIA.

    (a) Considerations.--Section 224(a) of the Appalachian Regional 
Development Act of 1965 (40 U.S.C. App. 224(a)) is amended by inserting 
before the semicolon at the end of paragraph (1) the following: ``or in 
a severely and persistently distressed and underdeveloped county or 
area''.
    (b) Outcome Measurements.--Section 224(a) of such Act is further 
amended--
            (1) by striking the period at the end of paragraph (5) and 
        inserting ``; and''; and
            (2) by adding at the end the following:
            ``(6) the extent to which the project design provides for 
        detailed outcome measurements by which grant expenditures may 
        be justified.''.
    (c) Removal of Limitations.--Section 224(b) of such Act (40 U.S.C. 
App. 224(b)) is amended to read as follows:
    ``(b) Limitation.--No financial assistance made available under 
this Act may be used to assist establishments relocating from one area 
to another.''.

SEC. 10538. DISTRESSED AND ECONOMICALLY COMPETITIVE COUNTIES.

    Part C of title II of the Appalachian Regional Development Act of 
1965 (40 U.S.C. App. 221-225) is amended by adding at the end the 
following:

``SEC. 226. DISTRESSED AND ECONOMICALLY COMPETITIVE COUNTIES.

    ``(a) Designations.--Not later than 90 days after the effective 
date of the Economic Development Partnership Act of 1995, and annually 
thereafter, the Commission, in accordance with such criteria as the 
Commission may establish, shall--
            ``(1) designate as `distressed counties' those counties in 
        the region that are the most severely and persistently 
        distressed and underdeveloped; and
            ``(2) designate as `economically competitive counties' 
        those counties in the region which have attained substantial 
        economic parity with the rest of the Nation.
    ``(b) Period of Effectiveness.--In making annual designations under 
subsection (a), the Commission may discontinue an existing designation 
at the discretion of the Commission; except that any designation of a 
distressed county shall remain in effect for the 3-year period 
beginning on the date of the designation.
    ``(c) Funding Prohibition for Projects Located in Economically 
Competitive Counties.--
            ``(1) In general.--Except as provided by paragraph (2), no 
        funds may be provided under this Act for a project located in a 
        county for which an economically competitive county designation 
        is in effect under this section.
            ``(2) Exceptions.--The prohibition established by paragraph 
        (1) shall not apply to--
                    ``(A) projects on the Appalachian development 
                highway system authorized by section 201;
                    ``(B) local development district administrative 
                projects authorized by section 302(a)(1); or
                    ``(C) discretionary grants authorized by section 
                302(a).''.

SEC. 10539. GRANTS FOR ADMINISTRATIVE EXPENSES AND COMMISSION PROJECTS.

    (a) Availability of Amounts.--Section 302(a) of the Appalachian 
Regional Development Act of 1965 (40 U.S.C. App. 302(a)) is amended--
            (1) by striking ``The President'' and inserting ``The 
        Commission''; and
            (2) in paragraphs (1), (2), and (3) by striking ``to the 
        Commission'' each place it appears.
    (b) Cost Sharing.--Section 302(a) of such Act is further amended--
            (1) in paragraph (1) by striking ``75 per centum'' and 
        inserting ``50 percent''; and
            (2) by adding at the end the following: ``After September 
        30, 1995, not more than 50 percent of the cost of any activity 
        eligible for financial assistance under this section may be 
        provided from funds appropriated to carry out this Act (or 80 
        percent of such costs in the case of a project to be carried 
        out in a county for which a distressed county designation is in 
        effect under section 226); except that discretionary grants by 
        the Commission to implement significant regional initiatives, 
        to take advantage of special development opportunities, or to 
        respond to emergency economic distress in the region may be 
        made without regard to such percentage limitations. The 
        aggregate amount of discretionary grants referred to in the 
        preceding sentence in any fiscal year shall not exceed 10 
        percent of the amounts appropriated under section 401 for such 
        fiscal year.''.
    (c) Repeals.--Section 302 of such Act (40 U.S.C. App. 302) is 
amended--
            (1) by striking paragraphs (3) and (4) of subsection (b);
            (2) by striking subsection (d); and
            (3) by striking subsection (e).

SEC. 10540. AUTHORIZATION OF APPROPRIATIONS FOR GENERAL PROGRAM.

    Section 401 of the Appalachian Regional Development Act of 1965 (40 
U.S.C. App. 401) is amended to read as follows:

``SEC. 401. AUTHORIZATION OF APPROPRIATIONS.

    ``In addition to the appropriations authorized by section 105 for 
administrative expenses and by section 201(g) for the Appalachian 
development highway system and local access roads, there is authorized 
to be appropriated to the Commission to carry out this Act $88,355,000 
per fiscal year for each of fiscal years 1996 through 2000. Such sums 
shall remain available until expended.''.

SEC. 10541. EXTENSION OF TERMINATION DATE.

    Section 405 of the Appalachian Regional Development Act of 1965 (40 
U.S.C. App. 405) is amended by striking ``1982'' and inserting 
``2000''.

                TITLE XI--COMMITTEE ON VETERANS' AFFAIRS

SEC. 11001. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This title may be cited as the ``Veterans 
Reconciliation Act of 1995''.
    (b) Table of Contents.--The contents of this title are as follows:

                TITLE XI--COMMITTEE ON VETERANS' AFFAIRS

Sec. 11001. Short title; table of contents.

             Subtitle A--Extension of Temporary Authorities

Sec. 11011. Authority to require that certain veterans agree to make 
copayments in exchange for receiving health-care benefits.
Sec. 11012. Medical care cost recovery authority.
Sec. 11013. Income verification authority.
Sec. 11014. Limitation on pension for certain recipients of medicaid-
covered nursing home care.
Sec. 11015. Home loan fees.
Sec. 11016. Procedures applicable to liquidation sales on defaulted 
home loans guaranteed by the Department of Veterans Affairs.

                       Subtitle B--Other Matters

Sec. 11021. Revision to prescription drug copayment.
Sec. 11022. Rounding down of cost-of-living adjustments in compensation 
and DIC rates.
Sec. 11023. Revised standard for liability for injuries resulting from 
Department of Veterans Affairs treatment.
Sec. 11024. Enhanced loan asset sale authority.
Sec. 11025. Withholding of payments and benefits.

               Subtitle C--Health Care Eligibility Reform

Sec. 11031. Hospital care and medical services.
Sec. 11032. Extension of authority to priority health care for Persian 
Gulf veterans.
Sec. 11033. Prosthetics.
Sec. 11034. Management of health care.
Sec. 11035. Improved efficiency in health care resource management.
Sec. 11036. Sharing agreements for specialized medical resources.
Sec. 11037. Personnel furnishing shared resources.

             Subtitle A--Extension of Temporary Authorities

SEC. 11011. AUTHORITY TO REQUIRE THAT CERTAIN VETERANS AGREE TO MAKE 
                    COPAYMENTS IN EXCHANGE FOR RECEIVING HEALTH-CARE 
                    BENEFITS.

    (a) Hospital and Medical Care.--Section 8013(e) of the Omnibus 
Budget Reconciliation Act of 1990 (38 U.S.C. 1710 note) is amended by 
striking out ``September 30, 1998'' and inserting in lieu thereof 
``September 30, 2002''.
    (b) Outpatient Medications.--Section 1722A(c) of title 38, United 
States Code, is amended by striking out ``September 30, 1998'' and 
inserting in lieu thereof ``September 30, 2002''.

SEC. 11012. MEDICAL CARE COST RECOVERY AUTHORITY.

    Section 1729(a)(2)(E) of title 38, United States Code, is amended 
by striking out ``before October 1, 1998,'' and inserting ``before 
October 1, 2002,''.

SEC. 11013. INCOME VERIFICATION AUTHORITY.

    (a) Title 38.--Section 5317(g) of title 38, United States Code, is 
amended by striking out ``September 30, 1998'' and inserting in lieu 
thereof ``September 30, 2002''.
    (b) Internal Revenue Code of 1986.--Section 6103(l)(7)(D) of the 
Internal Revenue Code of 1986 is amended by striking out ``Clause 
(viii) shall not apply after September 30, 1998'' and inserting in lieu 
thereof ``Clause (viii) shall not apply after September 30, 2002''.

SEC. 11014. LIMITATION ON PENSION FOR CERTAIN RECIPIENTS OF MEDICAID-
                    COVERED NURSING HOME CARE.

    Section 5503(f)(7) of title 38, United States Code, is amended by 
striking out ``September 30, 1998'' and inserting in lieu thereof 
``September 30, 2002''.

SEC. 11015. HOME LOAN FEES.

    Section 3729(a) of title 38, United States Code, is amended--
            (1) in paragraph (4), by striking out ``October 1, 1998'' 
        and inserting in lieu thereof ``October 1, 2002''; and
            (2) in paragraph (5)(C), by striking out ``October 1, 
        1998'' and inserting in lieu thereof ``October 1, 2002''.

SEC. 11016. PROCEDURES APPLICABLE TO LIQUIDATION SALES ON DEFAULTED 
                    HOME LOANS GUARANTEED BY THE DEPARTMENT OF VETERANS 
                    AFFAIRS.

    Section 3732(c)(11) of title 38, United States Code, is amended by 
striking out ``October 1, 1998'' and inserting ``October 1, 2002''.

                       Subtitle B--Other Matters

SEC. 11021. REVISION TO PRESCRIPTION DRUG COPAYMENT.

    (a) Increase in Amount of Copayment.--Section 1722A(a) of title 38, 
United States Code, is amended--
            (1) in paragraph (1), by striking out ``$2'' and inserting 
        in lieu thereof ``$3'';
            (2) by striking out paragraph (2); and
            (3) by redesignating paragraph (3) as paragraph (2).
    (b) Recovery of Indebtedness.--(1) Section 5302 of such title is 
amended by adding at the end the following new subsection:
    ``(f) The Secretary may not waive under this section the recovery 
of any payment or the collection of any indebtedness owed under section 
1722A of this title.''.
    (2) The amendment made by paragraph (1) shall apply with respect to 
amounts that become due to the United States under section 1722A of 
title 38, United States Code, on or after the date of the enactment of 
this Act.

SEC. 11022. ROUNDING DOWN OF COST-OF-LIVING ADJUSTMENTS IN COMPENSATION 
                    AND DIC RATES.

    (a) Fiscal Year 1996 COLA.--(1) Effective as of December 1, 1995, 
the Secretary of Veterans Affairs shall recompute any increase in an 
adjustment that is otherwise provided by law to be effective during 
fiscal year 1996 in the rates of disability compensation and dependency 
and indemnity compensation paid by the Secretary as such rates were in 
effect on November 30, 1995. The recomputation shall provide for the 
same percentage increase as provided under such law, but with amounts 
so recomputed (if not a whole dollar amount) rounded down to the next 
lower whole dollar amount (rather than to the nearest whole dollar 
amount) and with each old-law DIC rate increased by the amount by which 
the new-law DIC rate is increased (rather than by a uniform 
percentage).
    (2) For purposes of paragraph (1):
            (A) The term ``old-law DIC rate'' means a dollar amount in 
        effect under section 1311(a)(3) of title 38, United States 
        Code.
            (B) The term ``new-law DIC rate'' means the dollar amount 
        in effect under section 1311(a)(1) of title 38, United States 
        Code.
    (b) Out-Year Compensation COLAs.--(1) Chapter 11 of title 38, 
United States Code, is amended by inserting after section 1102 the 
following new section:

``Sec. 1103. Cost-of-living adjustments

    ``(a) In the computation of cost-of-living adjustments for fiscal 
years 1997 through 2002 in the rates of, and dollar limitations 
applicable to, compensation payable under this chapter, such 
adjustments shall be made by a uniform percentage that is no more than 
the percentage equal to the social security increase for that fiscal 
year, with all increased monthly rates and limitations (other than 
increased rates or limitations equal to a whole dollar amount) rounded 
down to the next lower whole dollar amount.
    ``(b) For purposes of this section, the term `social security 
increase' means the percentage by which benefit amounts payable under 
title II of the Social Security Act (42 U.S.C. 401 et seq.) are 
increased for any fiscal year as a result of a determination under 
section 215(i) of such Act (42 U.S.C. 415(i)).''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 1102 the 
following new item:

``1103. Cost-of-living adjustments.''.

    (c) Out-Year DIC COLAs.--(1) Chapter 13 of title 38, United States 
Code, is amended by inserting after section 1302 the following new 
section:

``Sec. 1303. Cost-of-living adjustments

    ``(a) In the computation of cost-of-living adjustments for fiscal 
years 1997 through 2002 in the rates of dependency and indemnity 
compensation payable under this chapter, such adjustments (except as 
provided in subsection (b)) shall be made by a uniform percentage that 
is no more than the percentage equal to the social security increase 
for that fiscal year, with all increased monthly rates (other than 
increased rates equal to a whole dollar amount) rounded down to the 
next lower whole dollar amount.
    ``(b)(1) Cost-of-living adjustments for each of fiscal years 1997 
through 2002 in old-law DIC rates shall be in a whole dollar amount 
that is no greater than the amount by which the new-law DIC rate is 
increased for that fiscal year as determined under subsection (a).
    ``(2) For purposes of paragraph (1):
            ``(A) The term `old-law DIC rates' means the dollar amounts 
        in effect under section 1311(a)(3) of this title.
            ``(B) The term `new-law DIC rate' means the dollar amount 
        in effect under section 1311(a)(1) of this title.
    ``(c) For purposes of this section, the term `social security 
increase' means the percentage by which benefit amounts payable under 
title II of the Social Security Act (42 U.S.C. 401 et seq.) are 
increased for any fiscal year as a result of a determination under 
section 215(i) of such Act (42 U.S.C. 415(i)).''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 1302 the 
following new item:

``1303. Cost-of-living adjustments.''.

SEC. 11023. REVISED STANDARD FOR LIABILITY FOR INJURIES RESULTING FROM 
                    DEPARTMENT OF VETERANS AFFAIRS TREATMENT.

    (a) Revised Standard.--Section 1151 of title 38, United States 
Code, is amended--
            (1) by designating the second sentence as subsection (c);
            (2) 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 of a veteran or the qualifying death 
of a veteran in the same manner as if such disability or death were 
service-connected.
    ``(b)(1) For purposes of this section, a disability or death is a 
qualifying additional disability or a qualifying death only if the 
disability or death--
            ``(A) was caused by Department health care and was a 
        proximate result of--
                    ``(i) negligence on the part of the Department in 
                furnishing the Department health care; or
                    ``(ii) an event not reasonably foreseeable; or
            ``(B) was incurred as a proximate result of 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.
    ``(2) For purposes of this section, the term `Department health 
care' means hospital care, medical or surgical treatment, or an 
examination that is furnished under any law administered by the 
Secretary to a veteran by a Department employee or in a Department 
facility (as defined in section 1701(3)(A) of this title).
    ``(3) A disability or death of a veteran which is the result of the 
veteran's willful misconduct is not a qualifying disability or death 
for purposes of this section.''; and
            (3) by adding at the end the following:
    ``(d) Effective with respect to injuries, aggravations of injuries, 
and deaths occurring after September 30, 2002, a disability or death is 
a qualifying additional disability or a qualifying death for purposes 
of this section (notwithstanding the provisions of subsection (b)(1)) 
if the disability or death--
            ``(1) was the result of Department health care; or
            ``(2) was the result of the pursuit of a course of 
        vocational rehabilitation under chapter 31 of this title.''.
    (b) Conforming Amendments.--Subsection (c) of such section, as 
designated by subsection (a)(1), is amended--
            (1) by striking out ``, aggravation,'' both places it 
        appears; and
            (2) by striking out ``sentence'' and inserting in lieu 
        thereof ``subsection''.
    (c) Effective Date.--The amendments made by this section shall 
apply to any administrative or judicial determination of eligibility 
for benefits under section 1151 of title 38, United States Code, based 
on a claim that is received by the Secretary on or after October 1, 
1995, including any such determination based on an original application 
or an application seeking to reopen, revise, reconsider, or otherwise 
readjudicate any claim for benefits under section 1151 of that title or 
any predecessor provision of law.

SEC. 11024. ENHANCED LOAN ASSET SALE AUTHORITY.

    Section 3720(h)(2) of title 38, United States Code, is amended by 
striking out ``December 31, 1995'' and inserting in lieu thereof 
``September 30, 1996''.

SEC. 11025. WITHHOLDING OF PAYMENTS AND BENEFITS.

    (a) Notice Required in Lieu of Consent or Court Order.--Section 
3726 of title 38, United States Code, is amended by striking out 
``unless'' and all that follows and inserting in lieu thereof the 
following: ``unless the Secretary provides such veteran or surviving 
spouse with notice by certified mail with return receipt requested of 
the authority of the Secretary to waive the payment of indebtedness 
under section 5302(b) of this title. If the Secretary does not waive 
the entire amount of the liability, the Secretary shall then determine 
whether the veteran or surviving spouse should be released from 
liability under section 3713(b) of this title. If the Secretary 
determines that the veteran or surviving spouse should not be released 
from liability, the Secretary shall notify the veteran or surviving 
spouse of that determination and provide a notice of the procedure for 
appealing that determination, unless the Secretary has previously made 
such determination and notified the veteran or surviving spouse of the 
procedure for appealing the determination.''.
    (b) Conforming Amendment.--Section 5302(b) of such title is amended 
by inserting ``with return receipt requested'' after ``certified 
mail''.
    (c) Effective Date.--The amendments made by this section shall 
apply with respect to any indebtedness to the United States arising 
pursuant to chapter 37 of title 38, United States Code, before, on, or 
after the date of the enactment of this Act.

               Subtitle C--Health Care Eligibility Reform

SEC. 11031. HOSPITAL CARE AND MEDICAL SERVICES.

    (a) Eligibility for Care.--Section 1710(a) of title 38, United 
States Code, is amended by striking out paragraphs (1) and (2) and 
inserting the following:
    ``(a)(1) The Secretary shall, to the extent and in the amount 
provided in advance in appropriations Acts for these purposes, provide 
hospital care and medical services, and may provide nursing home care, 
which the Secretary determines is needed to any veteran--
            ``(A) with a compensable service-connected disability;
            ``(B) whose discharge or release from active military, 
        naval, or air service was for a compensable disability that was 
        incurred or aggravated in the line of duty;
            ``(C) who is in receipt of, or who, but for a suspension 
        pursuant to section 1151 of this title (or both a suspension 
        and the receipt of retired pay), would be entitled to 
        disability compensation, but only to the extent that such 
        veteran's continuing eligibility for such care is provided for 
        in the judgment or settlement provided for in such section;
            ``(D) who is a former prisoner of war;
            ``(E) of the Mexican border period or of World War I;
            ``(F) who was exposed to a toxic substance, radiation, or 
        environmental hazard, as provided in subsection (e); and
            ``(G) who is unable to defray the expenses of necessary 
        care as determined under section 1722(a) of this title.
    ``(2) In the case of a veteran who is not described in paragraph 
(1), the Secretary may, to the extent resources and facilities are 
available and subject to the provisions of subsection (f), furnish 
hospital care, medical services, and nursing home care which the 
Secretary determines is needed.''.
    (b) Conforming Amendments.--(1) Section 1710(e) of such title is 
amended--
            (A) in paragraph (1), by striking out ``hospital care and 
        nursing home care'' in subparagraphs (A), (B), and (C) and 
        inserting in lieu thereof ``hospital care, medical services, 
        and nursing home care'';
            (B) in paragraph (2), by inserting ``and medical services'' 
        after ``Hospital and nursing home care''; and
            (C) by striking out ``subsection (a)(1)(G) of this 
        section'' each place it appears and inserting in lieu thereof 
        ``subsection (a)(1)(F)''.
    (2) Chapter 17 of such title is amended--
            (A) by redesignating subsection (g) of section 1710 as 
        subsection (h); and
            (B) by transferring subsection (f) of section 1712 of such 
        title to section 1710 so as to appear after subsection (f), 
        redesignating such subsection as subsection (g), and amending 
        such subsection by striking out ``section 1710(a)(2) of this 
        title'' in paragraph (1) and inserting in lieu thereof 
        ``subsection (a)(2) of this section''.
    (3) Section 1712 of such title is amended--
            (A) by striking out subsections (a) and (i); and
            (B) by redesignating subsections (b), (c), (d), (h) and 
        (j), as subsections (a), (b), (c), (d), and (e), respectively.

SEC. 11032. EXTENSION OF AUTHORITY TO PRIORITY HEALTH CARE FOR PERSIAN 
                    GULF VETERANS.

    Section 1710(e)(3) of title 38, United States Code, is amended by 
striking out ``December 31, 1995'' and inserting in lieu thereof 
``December 31, 1998''.

SEC. 11033. PROSTHETICS.

    (a) Eligibility for Prosthetics.--Section 1701(6)(A)(i) of title 
38, United States Code, is amended--
            (1) by striking out ``(in the case of a person otherwise 
        receiving care or services under this chapter)'' and ``(except 
        under the conditions described in section 1712(a)(5)(A) of this 
        title),'';
            (2) by inserting ``(in the case of a person otherwise 
        receiving care or services under this chapter)'' before 
        ``wheelchairs,''; and
            (3) by inserting ``except that the Secretary may not 
        furnish sensori-neural aids other than in accordance with 
        guidelines which the Secretary shall prescribe,'' after 
        ``reasonable and necessary,''.
    (b) Regulations.--Not later than 30 days after the date of the 
enactment of this Act, the Secretary of Veterans Affairs shall 
prescribe the guidelines required by the amendments made by subsection 
(a) and shall furnish a copy of those guidelines to the Committees on 
Veterans' Affairs of the Senate and House of Representatives.

SEC. 11034. MANAGEMENT OF HEALTH CARE.

    (a) In General.--(1) Chapter 17 of title 38, United States Code, is 
amended by inserting after section 1704 the following new sections:

``Sec. 1705. Management of health care: patient enrollment system

    ``(a) In managing the provision of hospital care and medical 
services under section 1710(a)(1) of this title, the Secretary, in 
accordance with regulations the Secretary shall prescribe, shall 
establish and operate a system of annual patient enrollment. The 
Secretary shall manage the enrollment of veterans in accordance with 
the following priorities, in the order listed:
            ``(1) Veterans with service-connected disabilities rated 30 
        percent or greater.
            ``(2) Veterans who are former prisoners of war and veterans 
        with service connected disabilities rated 10 percent or 20 
        percent.
            ``(3) Veterans who are in receipt of increased pension 
        based on a need of regular aid and attendance or by reason of 
        being permanently housebound and other veterans who are 
        catastrophically disabled.
            ``(4) Veterans not covered by paragraphs (1) through (3) 
        who are unable to defray the expenses of necessary care as 
        determined under section 1722(a) of this title.
            ``(5) All other veterans eligible for hospital care, 
        medical services, and nursing home care under section 
        1710(a)(1) of this title.
    ``(b) In the design of an enrollment system under subsection (a), 
the Secretary--
            ``(1) shall ensure that the system will be managed in a 
        manner to ensure that the provision of care to enrollees is 
        timely and acceptable in quality;
            ``(2) may establish additional priorities within each 
        priority group specified in subsection (a), as the Secretary 
        determines necessary; and
            ``(3) may provide for exceptions to the specified 
        priorities where dictated by compelling medical reasons.

``Sec. 1706. Management of health care: other requirements

    ``(a) In managing the provision of hospital care and medical 
services under section 1710(a) of this title, the Secretary shall, to 
the extent feasible, design, establish and manage health care programs 
in such a manner as to promote cost-effective delivery of health care 
services in the most clinically appropriate setting.
    ``(b) In managing the provision of hospital care and medical 
services under section 1710(a) of this title, the Secretary--
            ``(1) may contract for hospital care and medical services 
        when Department facilities are not capable of furnishing such 
        care and services economically, and
            ``(2) shall make such rules and regulations regarding 
        acquisition procedures or policies as the Secretary considers 
        appropriate to provide such needed care and services.
    ``(c) In managing the provision of hospital care and medical 
services under section 1710(a) of this title, the Secretary shall 
ensure that the Department maintains its capacity to provide for the 
specialized treatment and rehabilitative needs of disabled veterans 
described in section 1710(a) of this title (including veterans with 
spinal cord dysfunction, blindness, amputations, and mental illness) 
within distinct programs or facilities of the Department that are 
dedicated to the specialized needs of those veterans in a manner that 
(1) affords those veterans reasonable access to care and services for 
those specialized needs, and (2) ensures that overall capacity of the 
Department to provide such services is not reduced below the capacity 
of the Department, nationwide, to provide those services, as of the 
date of the enactment of this section.
    ``(d) In managing the provision of hospital care and medical 
services under section 1710(a) of this title, the Secretary shall 
ensure that any veteran with a service-connected disability is provided 
all benefits under this chapter for which that veteran was eligible 
before the date of the enactment of this section.''.
    (2) The table of sections at the beginning of chapter 17 of such 
title is amended by inserting after the item relating to section 1704 
the following new items:

``1705. Management of health care: patient enrollment system.
``1706. Management of health care: other requirements.''.

    (b) Conforming Amendments to Section 1703.--(1) Section 1703 of 
such title is amended--
            (A) by striking out subsections (a) and (b); and
            (B) in subsection (c) by--
                    (i) striking out ``(c)'', and
                    (ii) striking out ``this section, sections'' and 
                inserting in lieu thereof ``sections 1710,''.
    (2)(A) The heading of such section is amended to read as follows:

``Sec. 1703. Annual report on furnishing of care and services by 
                    contract''.

    (B) The item relating to such section in the table of sections at 
the beginning of chapter 17 of such title is amended to read as 
follows:

``1703. Annual report on furnishing of care and services by 
contract.''.

SEC. 11035. IMPROVED EFFICIENCY IN HEALTH CARE RESOURCE MANAGEMENT.

    (a) Repeal of Sunset Provision.--Section 204 of the Veterans Health 
Care Act of 1992 (Public Law 102-585; 106 Stat. 4950) is repealed.
    (b) Cost Recovery.--Title II of such Act is further amended by 
adding at the end the following new section:

``SEC. 207. AUTHORITY TO BILL HEALTH-PLAN CONTRACTS.

    ``(a) Right To Recover.--In the case of a primary beneficiary (as 
described in section 201(2)(B)) who has coverage under a health-plan 
contract, as defined in section 1729(i)(1)(A) of title 38, United 
States Code, and who is furnished care or services by a Department 
medical facility pursuant to this title, the United States shall have 
the right to recover or collect charges for such care or services from 
such health-plan contract to the extent that the beneficiary (or the 
provider of the care or services) would be eligible to receive payment 
for such care or services from such health-plan contract if the care or 
services had not been furnished by a department or agency of the United 
States. Any funds received from such health-plan contract shall be 
credited to funds that have been allotted to the facility that 
furnished the care or services.
    ``(b) Enforcement.--The right of the United States to recover under 
such a beneficiary's health-plan contract shall be enforceable in the 
same manner as that provided by subsections (a)(3), (b), (c)(1), (d), 
(f), (h), and (i) of section 1729 of title 38, United States Code.''.

SEC. 11036. SHARING AGREEMENTS FOR SPECIALIZED MEDICAL RESOURCES.

    (a) Repeal of Section 8151.--(1) Subchapter IV of chapter 81 of 
title 38, United States Code, is amended--
            (A) by striking out section 8151; and
            (B) by redesignating sections 8152, 8153, 8154, 8155, 8156, 
        8157, and 8158 as sections 8151, 8152, 8153, 8154, 8155, 8156, 
        and 8157, respectively.
    (2) The table of sections at the beginning of chapter 81 is 
amended--
            (A) by striking out the item relating to section 8151; and
            (B) by revising the items relating to sections 8152, 8153, 
        8154, 8155, 8156, 8157, and 8158 to reflect the redesignations 
        by paragraph (1)(B).
    (b) Revised Authority for Sharing Agreements.--Section 8152 of such 
title, as redesignated by subsection (a)(1)(B), is amended--
            (1) in subsection (a)(1)(A)--
                    (A) by striking out ``specialized medical 
                resources'' and inserting in lieu thereof ``health-care 
                resources''; and
                    (B) by striking out ``other'' and all that follows 
                through ``medical schools'' and inserting in lieu 
                thereof ``any medical school, health-care provider, 
                health-care plan, insurer, or other entity or 
                individual'';
            (2) in subsection (a)(2) by striking out ``only'' and all 
        that follows through ``are not'' and inserting in lieu thereof 
        ``if such resources are not, or would not be,'';
            (3) in subsection (b), by striking out ``reciprocal 
        reimbursement'' in the first sentence and all that follows 
        through the period at the end of that sentence and inserting in 
        lieu thereof ``payment to the Department in accordance with 
        procedures that provide appropriate flexibility to negotiate 
        payment which is in the best interest of the Government.'';
            (4) in subsection (d), by striking out ``preclude such 
        payment, in accordance with--'' and all that follows through 
        ``to such facility therefor'' and inserting in lieu thereof 
        ``preclude such payment to such facility for such care or 
        services'';
            (5) by redesignating subsection (e) as subsection (f); and
            (6) by inserting after subsection (d) the following new 
        subsection (e):
    ``(e) The Secretary may make an arrangement that authorizes the 
furnishing of services by the Secretary under this section to 
individuals who are not veterans only if the Secretary determines--
            ``(1) that such an arrangement will not result in the 
        denial of, or a delay in providing access to, care to any 
        veteran at that facility; and
            ``(2) that such an arrangement--
                    ``(A) is necessary to maintain an acceptable level 
                and quality of service to veterans at that facility; or
                    ``(B) will result in the improvement of services to 
                eligible veterans at that facility.''.
    (c) Cross-Reference Amendments.--(1) Section 8110(c)(3)(A) of such 
title is amended by striking out ``8153'' and inserting in lieu thereof 
``8152''.
    (2) Subsection (b) of section 8154 of such title (as redesignated 
by subsection (a)(1)(B)) is amended by striking out ``section 8154'' 
and inserting in lieu thereof ``section 8153''.
    (3) Section 8156 of such title (as redesignated by subsection 
(a)(1)(B)) is amended--
            (A) in subsection (a), by striking out ``section 8153(a)'' 
        and inserting in lieu thereof ``section 8152(a)''; and
            (B) in subsection (b)(3), by striking out ``section 8153'' 
        and inserting in lieu thereof ``section 8152''.
    (4) Subsection (a) of section 8157 of such title (as redesignated 
by subsection (a)(1)(B)) is amended--
            (A) in the matter preceding paragraph (1), by striking out 
        ``section 8157'' and ``section 8153(a)'' and inserting in lieu 
        thereof ``section 8156'' and ``section 8152(a)'', respectively; 
        and
            (B) in paragraph (1), by striking out ``section 
        8157(b)(4)'' and inserting in lieu thereof ``section 
        8156(b)(4)''.

SEC. 11037. PERSONNEL FURNISHING SHARED RESOURCES.

    Section 712(b)(2) of title 38, United States Code, is amended--
            (1) by striking out ``the sum of--'' and inserting in lieu 
        thereof ``the sum of the following:'';
            (2) by capitalizing the first letter of the first word of 
        each of subparagraphs (A) and (B);
            (3) by striking out ``; and'' at the end of subparagraph 
        (A) and inserting in lieu thereof a period; and
            (4) by adding at the end the following:
                    ``(C) The number of such positions in the 
                Department during that fiscal year held by persons 
                involved in providing health-care resources under 
                section 8111 or 8152 of this title.''.

                            TITLE XII--TRADE

  Subtitle A--Technical Corrections and Miscellaneous Trade Provisions

SEC. 12001. PAYMENT OF DUTIES AND FEES.

    (a) Interest Accrual.--Section 505(c) of the Tariff Act of 1930 (19 
U.S.C. 1505(c)) is amended in the second sentence by inserting after 
``duties, fees, and interest'' the following: ``or, in a case in which 
a claim is made under section 520(d), from the date on which such claim 
is made,''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to claims made pursuant to section 520(d) of the Tariff Act of 
1930 on or after April 25, 1995.

SEC. 12002. OTHER TECHNICAL AND CONFORMING AMENDMENTS.

    (a) Examination of Books and Witnesses.--Section 509(a)(2) of the 
Tariff Act of 1930 (19 U.S.C. 1509(a)(2)) is amended by striking 
``(c)(1)(A)'' and inserting ``(d)(1)(A)''.
    (b) Requirement for Certificate for Importation of Alcoholic 
Liquors in Small Vessels.--Section 7 of the Act of August 5, 1935 (19 
U.S.C. 1707; 49 Stat. 520), is repealed.
    (c) Manifests.--Section 431(c)(1) of the Tariff Act of 1930 (19 
U.S.C. 1431(c)(1)) is amended in the matter preceding subparagraph (A) 
by striking ``such manifest'' and inserting ``a vessel manifest''.
    (d) Documentation for Entry of Merchandise.--Section 484(a)(1) of 
the Tariff Act of 1930 (19 U.S.C. 1484(a)(1)) is amended in the matter 
preceding subparagraph (A) by striking ``553, and 336(j)'' and 
inserting ``and 553''.
    (e) Penalties for Certain Violations.--Section 592 of the Tariff 
Act of 1930 (19 U.S.C. 1592) is amended--
            (1) in subsection (a)(1), by striking ``lawful duty'' and 
        inserting ``lawful duty, tax, or fee''; and
            (2) in subsections (b)(1)(A)(vi), (c)(2)(A)(ii), 
        (c)(3)(A)(ii), (c)(4)(A)(i), and (c)(4)(B) by striking ``lawful 
        duties'' each place it appears and inserting ``lawful duties, 
        taxes, and fees''.
    (f) Deprivation of Lawful Duties, Taxes, or Fees.--Section 592(d) 
of the Tariff Act of 1930 (19 U.S.C. 1592(d)) is amended by striking 
``or fees be restored'' and inserting ``and fees be restored''.
    (g) Reconciliation Treated as Entry for Recordkeeping.--
            (1) Section 401(s) of the Tariff Act of 1930 (19 U.S.C. 
        1401(s)) is amended by inserting ``recordkeeping,'' after 
        ``reliquidation,''.
            (2) Section 508(c)(1) of such Act (19 U.S.C. 1508(c)(1)) is 
        amended by inserting ``, filing of a reconciliation,'' after 
        ``entry''.
    (h) Extension of Liquidation.--Section 504(d) of the Tariff Act of 
1930 (19 U.S.C. 1504(d)) is amended by inserting ``, unless liquidation 
is extended under subsection (b),'' after ``shall liquidate the 
entry''.
    (i) Exemption From Duty for Personal and Household Goods 
Accompanying Returning Residents.--Section 321(a)(2)(B) of the Tariff 
Act of 1930 (19 U.S.C. 1321(a)(2)(B)) is amended by inserting ``, 
9804.00.65,'' after ``9804.00.30''.
    (j) Debt Collection.--Section 631(a) of the Tariff Act of 1930 (19 
U.S.C. 1631(a)) is amended--
            (1) by inserting after ``law,'' the following: ``including 
        section 3302 of title 31, United States Code, and subchapters I 
        and II of chapter 37 of such title,''; and
            (2) by inserting ``and the expenses associated with 
        recovering such indebtedness,'' after ``Government,''.
    (k) Examination of Books and Witnesses.--Section 509(b) of the 
Tariff Act of 1930 (19 U.S.C. 1509(b)) is amended in paragraphs (3) and 
(4) by striking ``appropriate regional commissioner'' and inserting 
``officer designated pursuant to regulations''.
    (l) Review of Protests.--Section 515(d) of the Tariff Act of 1930 
(19 U.S.C. 1515(d)) is amended by striking ``district director'' and 
inserting ``port director''.
    (m) Effective Date.--The amendments made by this section apply as 
of December 8, 1993.

SEC. 12003. CLARIFICATION REGARDING THE APPLICATION OF CUSTOMS USER 
                    FEES.

    (a) In General.--Subparagraph (D) of section 13031(b)(8) of the 
Consolidated Omnibus Budget Reconciliation Act of 1985 (19 U.S.C. 
58c(b)(8)(D)) is amended--
            (1) in clause (iv)--
                    (A) by striking ``subparagraph 9802.00.80 of such 
                Schedules'' and inserting ``heading 9802.00.80 of such 
                Schedule''; and
                    (B) by striking ``and'' at the end of clause (iv);
            (2) by striking the period at the end of clause (v) and 
        inserting ``; and''; and
            (3) by inserting after clause (v) the following new clause:
            ``(vi) in the case of merchandise entered from a foreign 
        trade zone (other than merchandise to which clause (v) 
        applies), be applied only to the value of the privileged or 
        nonprivileged foreign status merchandise under section 3 of the 
        Act of June 18, 1934 (commonly known as the Foreign Trade Zones 
        Act, 19 U.S.C. 81c).''.
    (b) Effective Date.--The amendments made by subsection (a) apply 
to--
            (1) any entry made from a foreign trade zone on or after 
        the 15th day after the date of the enactment of this Act; and
            (2) any entry made from a foreign trade zone after November 
        30, 1986, and before such 15th day if liquidation of the entry 
        was not final before such 15th day.
    (c) Application of Fees to Certain Agricultural Products.--The 
amendment made by section 111(b)(2)(D)(iv) of the Customs and Trade Act 
of 1990 shall apply to--
            (1) any entry made from a foreign trade zone on or after 
        the 15th day after the date of the enactment of this Act; and
            (2) any entry made from a foreign trade zone after November 
        30, 1986, and before such 15th day if the liquidation of the 
        entry was not final before such 15th day.

SEC. 12004. TECHNICAL AMENDMENT TO THE CUSTOMS AND TRADE ACT OF 1990.

    Subsection (b) of section 484H of the Customs and Trade Act of 1990 
(19 U.S.C. 1553 note) is amended by striking ``, or withdrawn from 
warehouse for consumption,'' and inserting ``for transportation in 
bond''.

SEC. 12005. TECHNICAL AMENDMENTS REGARDING CERTAIN BENEFICIARY 
                    COUNTRIES.

    (a) Caribbean Basin Economic Recovery Act.--Section 213(h)(1) of 
the Caribbean Basin Economic Recovery Act (19 U.S.C. 2703(h)(1)) is 
amended by adding at the end thereof the following flush sentence:
``The duty reductions provided for under this paragraph shall not apply 
to textile and apparel articles which are subject to textile 
agreements.''.
    (b) Andean Trade Preference Act.--Section 204(c)(1) of the Andean 
Trade Preference Act (19 U.S.C. 3203(c)(1)) is amended by adding at the 
end thereof the following flush sentence:
``The duty reductions provided for under this paragraph shall not apply 
to textile and apparel articles which are subject to textile 
agreements.''
    (c) Effective Date.--The amendments made by this section apply with 
respect to--
            (1) articles entered, or withdrawn from warehouse for 
        consumption, on or after the 15th day after the date of the 
        enactment of this Act, and
            (2) articles entered after December 31, 1991, and before 
        such 15th day, if the liquidation of the entry of such articles 
        was not final before such 15th day.

SEC. 12006. CLARIFICATION OF FEES FOR CERTAIN CUSTOMS SERVICES.

    (a) In General.--Section 13031(b)(9)(A) of the Consolidated Omnibus 
Budget Reconciliation Act of 1985 (19 U.S.C. 58c(b)(9)(A)) is amended--
            (1) by striking ``centralized hub facility or'' in clause 
        (i); and
            (2) in clause (ii)--
                    (A) by striking ``facility--'' and inserting 
                ``facility or centralized hub facility--'',
                    (B) by striking ``customs inspectional'' in 
                subclause (I), and
                    (C) by striking ``at the facility'' in subclause 
                (I) and inserting ``for the facility''.
    (b) Definitions.--Section 13031(b)(9)(B)(i) of the Consolidated 
Omnibus Budget Reconciliation Act of 1985 (19 U.S.C. 58c(b)(9)(B)(i)) 
is amended--
            (1) by striking ``, as in effect on July 30, 1990'', and
            (2) by adding at the end thereof the following new 
        sentence: ``Nothing in this paragraph shall be construed as 
        prohibiting the Secretary of the Treasury from processing 
        merchandise that is informally entered or released at any 
        centralized hub facility or express consignment carrier 
        facility during the normal operating hours of the Customs 
        Service, subject to reimbursement and payment under 
        subparagraph (A).''.
    (c) Citation.--Section 13031(b)(9)(B)(ii) of the Consolidated 
Omnibus Budget Reconciliation Act of 1985 (19 U.S.C. 58c(b)(9)(B)(ii)) 
is amended by striking ``section 236 of the Tariff and Trade Act of 
1984'' and inserting ``section 236 of the Trade and Tariff Act of 
1984''.

SEC. 12007. SPECIAL RULE FOR EXTENDING TIME FOR FILING DRAWBACK CLAIMS.

    Section 313(r) of the Tariff Act of 1930 (19 U.S.C. 1313(r)) is 
amended by adding at the end the following:
            ``(3)(A)(i) Subject to clause (ii), the Customs Service 
        may, notwithstanding the limitation set forth in paragraph (1), 
        extend the time for filing a drawback claim for a period not to 
        exceed 18 months, if--
                    ``(I) the claimant establishes to the satisfaction 
                of the Customs Service that the claimant was unable to 
                file the drawback claim because of an event declared by 
                the President to be a major disaster on or after 
                January 1, 1994; and
                    ``(II) the claimant files a request for such 
                extension with the Customs Service within one year from 
                the last day of the 3-year period referred to in 
                paragraph (1).
            ``(ii) In the case of a major disaster occurring on or 
        after January 1, 1994, and before the date of the enactment of 
        this paragraph--
                    ``(I) the Customs Service may extend the time for 
                filing the drawback claim for a period not to exceed 1 
                year; and
                    ``(II) the request under clause (i)(II) must be 
                filed not later than 1 year from the date of the 
                enactment of this paragraph.
            ``(B) If an extension is granted with respect to a request 
        filed under this paragraph, the periods of time for retaining 
        records set forth in subsection (t) of this section and section 
        508(c)(3) shall be extended for an additional 18 months or, in 
        a case to which subparagraph (A)(ii) applies, for a period not 
        to exceed 1 year from the date the claim is filed.
            ``(C) For purposes of this paragraph, the term `major 
        disaster' has the meaning given that term in section 102(2) of 
        the Robert T. Stafford Disaster Relief and Emergency Assistance 
        Act (42 U.S.C. 5122(2)).''.

SEC. 12008. TREATMENT OF CERTAIN ENTRIES.

    (a) Liquidation or Reliquidation of Entries.--Notwithstanding 
sections 514 and 520 of the Tariff Act of 1930 (19 U.S.C. 1514 and 
1520), and any other provision of law, the United States Customs 
Service shall liquidate or reliquidate those entry numbers made at New 
York, New York, which are listed in subsection (c), in accordance with 
the final results of the administrative review, covering the period 
from May 1, 1984, through March 31, 1985, undertaken by the 
International Trade Administration of the Department of Commerce for 
such entries (case number A-580-008).
    (b) Payment of Amounts Owed.--Any amounts owed by the United States 
pursuant to the liquidation or reliquidation of an entry under 
subsection (a) shall be paid by the Customs Service within 90 days 
after such liquidation or reliquidation.
    (c) Entry List.--The entries referred to in subsection (a) are the 
following:

                                                                        
                       Entry Number               Date of Entry         
                                                                        
                   84-4426808..........  August 29, 1984                
                   84-4427823..........  September 4, 1984              
                   84-4077985..........  July 25, 1984                  
                   84-4080859..........  August 3, 1984                 
                   84-4080817..........  August 3, 1984                 
                   84-4077723..........  August 1, 1984                 
                   84-4075194..........  July 10, 1984                  
                   84-4076481..........  July 17, 1984                  
                   84-4080930..........  August 9, 1984.                
                                                                        


SEC. 12009. TEMPORARY DUTY SUSPENSION FOR PERSONAL EFFECTS OF 
                    PARTICIPANTS IN CERTAIN WORLD ATHLETIC EVENTS.

    (a) In General.--Subchapter II of chapter 99 of the Harmonized 
Tariff Schedule of the United States is amended by inserting in 
numerical sequence the following new heading:

``                9902.98.05         Any of the following                                                                                               
                                      articles not                                                                                                      
                                      intended for sale                                                                                                 
                                      or distribution to                                                                                                
                                      the public:                                                                                                       
                                      personal effects of                                                                                               
                                      aliens who are                                                                                                    
                                      participants in,                                                                                                  
                                      officials of, or                                                                                                  
                                      accredited members                                                                                                
                                      of delegations to,                                                                                                
                                      the 1998 Goodwill                                                                                                 
                                      Games, and of                                                                                                     
                                      persons who are                                                                                                   
                                      immediate family                                                                                                  
                                      members of or                                                                                                     
                                      servants to any of                                                                                                
                                      the foregoing                                                                                                     
                                      persons; equipment                                                                                                
                                      and materials                                                                                                     
                                      imported in                                                                                                       
                                      connection with the                                                                                               
                                      foregoing event by                                                                                                
                                      or on behalf of the                                                                                               
                                      foregoing persons                                                                                                 
                                      or the organizing                                                                                                 
                                      committee of such                                                                                                 
                                      event; articles to                                                                                                
                                      be used in                                                                                                        
                                      exhibitions                                                                                                       
                                      depicting the                                                                                                     
                                      culture of a                                                                                                      
                                      country                                                                                                           
                                      participating in                                                                                                  
                                      such event; and, if                                                                                               
                                      consistent with the                                                                                               
                                      foregoing, such                                                                                                   
                                      other articles as                                                                                                 
                                      the Secretary of                                                                                                  
                                      the Treasury may                                                                                                  
                                      allow..............  Free              No change          Free              On or before 2/1/99            ''.    

      
    (b) Taxes and Fees Not To Apply.--The articles described in heading 
9902.98.05 of the Harmonized Tariff Schedule of the United States (as 
added by subsection (a)) shall be free of taxes and fees which may be 
otherwise applicable.
    (c) Effective Date.--The amendment made by this section applies to 
articles entered, or withdrawn from warehouse for consumption, on or 
after the 15th day after the date of the enactment of this Act.

SEC. 12010. MISCELLANEOUS TECHNICAL CORRECTIONS.

    (a) Drawback and Refunds.--Section 313(s)(2)(B) of the Tariff Act 
of 1930 (19 U.S.C. 1313(s)(2)(B)) is amended by striking ``successor'' 
the first place it appears and inserting ``predecessor''.
    (b) Trade Act of 1974.--Section 301(c)(4) of the Trade Act of 1974 
(19 U.S.C. 2411(c)(4)) is amended by striking ``(1)(C)(iii)'' and 
inserting ``(1)(D)(iii)''.

SEC. 12011. URUGUAY ROUND AGREEMENTS ACT.

    Section 405(b) of the Uruguay Round Agreements Act (19 U.S.C. 
3602(b)) is amended--
            (1) in paragraph (1) by striking ``1(a)'' and inserting 
        ``1(b)''; and
            (2) in paragraph (2) by striking ``1(b)'' and inserting 
        ``1(a)''.

SEC. 12012. FILING OF CERTIFICATIONS FOR CIVIL AIRCRAFT PARTS.

    General Note 6 of the Harmonized Tariff Schedule of the United 
States is amended--
            (1) by inserting ``or electronic'' after ``shall file a 
        written''; and
            (2) by striking ``with the appropriate customs officer'' 
        and inserting ``with the United States Customs Service''.

SEC. 12013. EXEMPTION REGARDING CERTAIN VESSEL REPAIRS.

    (a) Temporary Exemption Extended.--Section 484E(b)(2)(B) of the 
Customs and Trade Act of 1990 (19 U.S.C. 1466 note) is amended by 
striking ``December 31, 1992'' and inserting ``December 31, 1994''.
    (b) Effective Date.--The amendment made by this section applies to 
any entry made after December 31, 1992, and before January 1, 1995.

SEC. 12014. FEES FOR CERTAIN CUSTOMS SERVICES.

    (a) In General.--Section 13031(a)(5) of the Consolidated Omnibus 
Budget Reconciliation Act of 1985 (19 U.S.C. 58c(a)(5)) is amended--
            (1) in subparagraph (A), by inserting ``a place'' after 
        ``aircraft from''; and
            (2) in subparagraph (B), by striking ``subsection 
        (b)(1)(A)'' and inserting ``subsection (b)(1)(A)(i)''.
    (b) Limitation on Fees.--Section 13031(b)(1) of the Consolidated 
Omnibus Budget Reconciliation Act of 1985 (19 U.S.C. 58c(b)(1)) is 
amended to read as follows:
    ``(b) Limitations on Fees.--(1)(A) No fee may be charged under 
subsection (a) of this section for customs services provided in 
connection with--
            ``(i) the arrival of any passenger whose journey--
                    ``(I) originated in--
                            ``(aa) Canada,
                            ``(bb) Mexico,
                            ``(cc) a territory or possession of the 
                        United States, or
                            ``(dd) any adjacent island (within the 
                        meaning of section 101(b)(5) of the Immigration 
                        and Nationality Act (8 U.S.C. 1101(b)(5))), or
                    ``(II) originated in the United States and was 
                limited to--
                            ``(aa) Canada,
                            ``(bb) Mexico,
                            ``(cc) territories and possessions of the 
                        United States, and
                            ``(dd) such adjacent islands;
            ``(ii) the arrival of any railroad car the journey of which 
        originates and terminates in the same country, but only if no 
        passengers board or disembark from the train and no cargo is 
        loaded or unloaded from such car while the car is within any 
        country other than the country in which such car originates and 
        terminates;
            ``(iii) the arrival of any ferry; or
            ``(iv) the arrival of any passenger on board a commercial 
        vessel traveling only between ports which are within the 
        customs territory of the United States.
    ``(B) The exemption provided for in subparagraph (A) shall not 
apply in the case of the arrival of any passenger on board a commercial 
vessel whose journey originates and terminates at the same place in the 
United States if there are no intervening stops.
    ``(C) The exemption provided for in subparagraph (A)(i) shall not 
apply to fiscal years 1994, 1995, 1996, and 1997.''.
    (c) Fee Assessed Only Once.--Section 13031(b)(4) of the 
Consolidated Omnibus Budget Reconciliation Act of 1985 (19 U.S.C. 
58c(b)(4)) is amended--
            (1) by redesignating subparagraphs (A) and (B) as clauses 
        (i) and (ii), respectively;
            (2) by striking ``No fee'' and inserting ``(A) No fee''; 
        and
            (3) by adding at the end the following new subparagraph:
    ``(B) In the case of a commercial vessel making a single voyage 
involving 2 or more United States ports with respect to which the 
passengers would otherwise be charged a fee pursuant to subsection 
(a)(5), such fee shall be charged only 1 time for each passenger.''.
    (d) Effective Date.--The amendments made by this section shall take 
effect as if included in the amendments made by section 521 of the 
North American Free Trade Agreement Implementation Act.

SEC. 12015. TECHNICAL CORRECTION TO CERTAIN CHEMICAL DESCRIPTION.

    (a) Amendment to Subheading 2933.90.02.--The article description 
for subheading 2933.90.02 of the Harmonized Tariff Schedule of the 
United States is amended by striking ``(Quizalofop ethyl)''.
    (b) Effective Date.--
            (1) General rule.--The amendment made by this section 
        applies to articles entered, or withdrawn from warehouse for 
        consumption, on or after the 15th day after the date of the 
        enactment of this Act.
            (2) Retroactive provision.--Notwithstanding section 514 of 
        the Tariff Act of 1930 or any other provision of law, upon 
        proper request (which includes sufficient information to 
        identify and locate the entry) filed with the Customs Service 
        on or before the date that is 180 days after the date of the 
        enactment of this Act, any entry, or withdrawal from warehouse 
        for consumption, of an article that occurred--
                    (A) after December 31, 1994, and before the date 
                that is 15 days after the date of the enactment of this 
                Act, and
                    (B) with respect to which there would have been no 
                duty or a lesser duty if the amendment made by 
                subsection (a) applied to such entry or withdrawal,
        shall be liquidated or reliquidated as though such amendment 
        applied to such entry or withdrawal.

SEC. 12016. MARKING OF IMPORTED ARTICLES AND CONTAINERS.

  (a) In General.--Section 304 of the Tariff Act of 1930 (19 
U.S.C.1304) is amended--
            (1) by redesignating subsections (f), (g), (h), and (i) as 
        subsections (i), (j), (k), and (l), respectively, and
            (2) by inserting after subsection (e) the following new 
        subsections:
    ``(f) Marking of Metal Forgings.--The marking requirements of 
subsections (a) and (b) shall not apply to--
            ``(1) metal forgings that--
                    ``(A) are imported for processing into finished 
                hand tools in the United States, and
                    ``(B) have not been improved in condition beyond 
                rough burring, trimming, grinding, turning, hammering, 
                chiseling, or filing; and
            ``(2) hand tools made from metal forgings described in 
        paragraph (1).
    ``(g) Marking of Certain Coffee and Tea Products.--The marking 
requirements of subsections (a) and (b) shall not apply to articles 
described in subheading 0901.21, 0901.22, 0902.10, 0902.20, 0902.30, 
0902.40, 2101.10, or 2101.20 of the Harmonized Tariff Schedule of the 
United States, as in effect on January 1, 1995.
    ``(h) Marking of Spices.--The marking requirements of subsections 
(a) and (b) shall not apply to articles provided for under subheadings 
0904.11, 0904.12, 0904.20, 0905.00, 0906.10, 0906.20, 0907.00, 0908.10, 
0908.20, 0908.30, 0909.10, 0909.20, 0909.30, 0909.40, 0909.50, 0910.10, 
0910.20, 0910.30, 0910.40, 0910.50, 0910.91, 0910.99, 1106.20, 1207.40, 
1207.50, 1207.91, 1404.90, and 3302.10, and items classifiable in 
categories 0712.90.60, 0712.90.8080, 1209.91.2000, 1211.90.2000, 
1211.90.8040, 1211.90.8050, 1211.90.8090, 2006.00.3000, 2918.13.2000, 
3203.00.8000, 3301.90.1010, 3301.90.1020, and 3301.90.1050 of the 
Harmonized Tariff Schedule of the United States, as in effect on 
January 1, 1995.''.
    (b) Effective Date.--The amendments made by this section apply to 
goods entered, or withdrawn from warehouse for consumption, on or after 
the date of the enactment of this Act.

SEC. 12017. RELIQUIDATING ENTRY OF WARP KNITTING MACHINES.

    Notwithstanding section 514 of the Tariff Act of 1930 (19 U.S.C. 
1514) or any other provision of law, upon proper request filed with the 
Customs Service before the 180th day after the date of the enactment of 
this Act, the Secretary of the Treasury shall--
            (1) liquidate or reliquidate as duty free Entry No. 100-
        3022436-3, made on July 12, 1989, at the port of Charleston, 
        South Carolina; and
            (2) refund any duties and interest paid with respect to 
        such entry.

SEC. 12018. IDENTIFICATION OF TRADE EXPANSION PRIORITIES.

    Section 310(a)(1) of the Trade Act of 1974 (19 U.S.C. 2420(a)(1)) 
is amended by striking ``calendar year 1995'' and inserting ``each of 
calendar years 1995 through 2000''.

             Subtitle B--Generalized System of Preferences

SEC. 12101. SHORT TITLE.

    This subtitle may be cited as the ``GSP Renewal Act of 1995''.

SEC. 12102. GENERALIZED SYSTEM OF PREFERENCES.

    (a) In General.--Title V of the Trade Act of 1974 is amended to 
read as follows:

              ``TITLE V--GENERALIZED SYSTEM OF PREFERENCES

``SEC. 501. AUTHORITY TO EXTEND PREFERENCES.

    ``The President may provide duty-free treatment for any eligible 
article from any beneficiary developing country in accordance with the 
provisions of this title. In taking any such action, the President 
shall have due regard for--
            ``(1) the effect such action will have on furthering the 
        economic development of developing countries through the 
        expansion of their exports;
            ``(2) the extent to which other major developed countries 
        are undertaking a comparable effort to assist developing 
        countries by granting generalized preferences with respect to 
        imports of products of such countries;
            ``(3) the anticipated impact of such action on United 
        States producers of like or directly competitive products; and
            ``(4) the extent of the beneficiary developing country's 
        competitiveness with respect to eligible articles.

``SEC. 502. DESIGNATION OF BENEFICIARY DEVELOPING COUNTRIES.

    ``(a) Authority To Designate Countries.--
            ``(1) Beneficiary developing countries.--The President is 
        authorized to designate countries as beneficiary developing 
        countries for purposes of this title.
            ``(2) Least-developed beneficiary developing countries.--
        The President is authorized to designate any beneficiary 
        developing country as a least-developed beneficiary developing 
        country for purposes of this title, based on the considerations 
        in section 501 and subsection (c) of this section.
    ``(b) Countries Ineligible for Country Designation.--
            ``(1) Specific countries.--The following countries may not 
        be designated as beneficiary developing countries for purposes 
        of this title:
                    ``(A) Australia.
                    ``(B) Canada.
                    ``(C) European Union member states.
                    ``(D) Iceland.
                    ``(E) Japan.
                    ``(F) Monaco.
                    ``(G) New Zealand.
                    ``(H) Norway.
                    ``(I) Switzerland.
            ``(2) Other bases for ineligibility.--The President shall 
        not designate any country a beneficiary developing country 
        under this title if any of the following applies:
                    ``(A) Such country is a Communist country, unless--
                            ``(i) the products of such country receive 
                        nondiscriminatory treatment,
                            ``(ii) such country is a WTO Member (as 
                        such term is defined in section 2 of the 
                        Uruguay Round Agreements Act,) and a member of 
                        the International Monetary Fund, and
                            ``(iii) such country is not dominated or 
                        controlled by international communism.
                    ``(B) Such country is a party to an arrangement of 
                countries and participates in any action pursuant to 
                such arrangement, the effect of which is--
                            ``(i) to withhold supplies of vital 
                        commodity resources from international trade or 
                        to raise the price of such commodities to an 
                        unreasonable level, and
                            ``(ii) to cause serious disruption of the 
                        world economy.
                    ``(C) Such country affords preferential treatment 
                to the products of a developed country, other than the 
                United States, which has, or is likely to have, a 
                significant adverse effect on United States commerce.
                    ``(D)(i) Such country--
                            ``(I) has nationalized, expropriated, or 
                        otherwise seized ownership or control of 
                        property, including patents, trademarks, or 
                        copyrights, owned by a United States citizen or 
                        by a corporation, partnership, or association 
                        which is 50 percent or more beneficially owned 
                        by United States citizens,
                            ``(II) has taken steps to repudiate or 
                        nullify an existing contract or agreement with 
                        a United States citizen or a corporation, 
                        partnership, or association which is 50 percent 
                        or more beneficially owned by United States 
                        citizens, the effect of which is to 
                        nationalize, expropriate, or otherwise seize 
                        ownership or control of property, including 
                        patents, trademarks, or copyrights, so owned, 
                        or
                            ``(III) has imposed or enforced taxes or 
                        other exactions, restrictive maintenanceor 
operational conditions, or other measures with respect to property, 
including patents, trademarks, or copyrights, so owned, the effect of 
which is to nationalize, expropriate, or otherwise seize ownership or 
control of such property,
                unless clause (ii) applies.
                    ``(ii) This clause applies if the President 
                determines that--
                            ``(I) prompt, adequate, and effective 
                        compensation has been or is being made to the 
                        citizen, corporation, partnership, or 
                        association referred to in clause (i),
                            ``(II) good faith negotiations to provide 
                        prompt, adequate, and effective compensation 
                        under the applicable provisions of 
                        international law are in progress, or the 
                        country described in clause (i) is otherwise 
                        taking steps to discharge its obligations under 
                        international law with respect to such citizen, 
                        corporation, partnership, or association, or
                            ``(III) a dispute involving such citizen, 
                        corporation, partnership, or association over 
                        compensation for such a seizure has been 
                        submitted to arbitration under the provisions 
                        of the Convention for the Settlement of 
                        Investment Disputes, or in another mutually 
                        agreed upon forum,
                and the President promptly furnishes a copy of such 
                determination to the Senate and House of 
                Representatives.
                    ``(E) Such country fails to act in good faith in 
                recognizing as binding or in enforcing arbitral awards 
                in favor of United States citizens or a corporation, 
                partnership, or association which is 50 percent or more 
                beneficially owned by United States citizens, which 
                have been made by arbitrators appointed for each case 
                or by permanent arbitral bodies to which the parties 
                involved have submitted their dispute.
                    ``(F) Such country aids or abets, by granting 
                sanctuary from prosecution to, any individual or group 
                which has committed an act of international terrorism.
                    ``(G) Such country has not taken or is not taking 
                steps to afford internationally recognized worker 
                rights to workers in the country (including any 
                designated zone in that country).
        Subparagraphs (D), (E), (F), and (G) shall not prevent the 
        designation of any country as a beneficiary developing country 
        under this title if the President determines that such 
        designation will be in the national economic interest of the 
        United States and reports such determination to the Congress 
        with the reasons therefor.
    ``(c) Factors Affecting Country Designation.--In determining 
whether to designate any country as a beneficiary developing country 
under this title, the President shall take into account--
            ``(1) an expression by such country of its desire to be so 
        designated;
            ``(2) the level of economic development of such country, 
        including its per capita gross national product, the living 
        standards of its inhabitants, and any other economic factors 
        which the President deems appropriate;
            ``(3) the extent to which other major developed countries 
        are extending generalized preferential tariff treatment to such 
        country;
            ``(4) the extent to which such country has assured the 
        United States that it will provide equitable and reasonable 
        access to the markets and basic commodity resources of such 
        country and the extent to which such country has assured the 
        United States that it will refrain from engaging in 
        unreasonable export practices;
            ``(5) whether such country is providing