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104th Congress (1995-1996)

House Report 104-350

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This Report: To Accompany H.R.2491

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BALANCED BUDGET ACT OF 1995

104TH CONGRESS 1ST SESSION
HOUSE OF REPRESENTATIVES
Report

104-350

BALANCED BUDGET ACT OF 1995

CONFERENCE REPORT

to accompany

H.R. 2491

[Graphic image not available]

NOVEMBER 16 (legislative day of NOVEMBER 15), 1995- Ordered to be printed

20-873

1995
104TH CONGRESS 1ST SESSION
HOUSE OF REPRESENTATIVES
Report

104-350

BALANCED BUDGET ACT OF 1995

CONFERENCE REPORT

to accompany

H.R. 2491

[Graphic image not available]

NOVEMBER 16 (legislative day of NOVEMBER 15), 1995- Ordered to be printed

104TH CONGRESS

Report

HOUSE OF REPRESENTATIVES

1st Session

104-350
BALANCED BUDGET ACT OF 1995

November 16 (legislative day, NOVEMBER 15), 1995- Ordered to be printed

Mr. KASICH, from the committee of conference, submitted the following
CONFERENCE REPORT
[To accompany H.R. 2491]

The committee of conference on the disagreeing votes of the two Houses on the amendment of the Senate to the bill (H.R. 2491), to provide for reconciliation pursuant to section 105 of the concurrent resolution on the budget for fiscal year 1996, having met, after full and free conference, have agreed to recommend and do recommend to their respective Houses as follows:

That the House recede from its disagreement to the amendment of the Senate and agree to the same with an amendment as follows:

In lieu of the matter proposed to be inserted by the Senate amendment, insert the following:

SECTION 1. SHORT TITLE.

This Act may be cited as the `Balanced Budget Act of 1995'.

SEC. 2. TABLE OF TITLES.

This Act is organized into titles as follows:

Title I--Agriculture and Related Provisions
Title II--Banking, Housing, and Related Provisions
Title III--Communication and Spectrum Allocation Provisions
Title IV--Education and Related Provisions
Title V--Energy and Natural Resources Provisions
Title VI--Federal Retirement and Related Provisions
Title VII--Medicaid
Title VIII--Medicare
Title IX--Transportation and Related Provisions
Title X--Veterans and Related Provisions
Title XI--Revenues
Title XII--Teaching hospitals and graduate medical education; asset sales; welfare; and other provisions

TITLE I--AGRICULTURE AND RELATED PROVISIONS

SEC. 1001. SHORT TITLE; TABLE OF CONTENTS.

(a) SHORT TITLE- This title may be cited as the `Agricultural Reconciliation Act of 1995'.

(b) TABLE OF CONTENTS- The table of contents of this title is as follows:

Sec. 1001. Short title; table of contents.
Subtitle A--Agricultural Market Transition Program
Sec. 1101. Short title.
Sec. 1102. Definitions.
Sec. 1103. Production flexibility contracts.
Sec. 1104. Nonrecourse marketing assistance loans and loan deficiency payments.
Sec. 1105. Payment limitations.
Sec. 1106. Peanut program.
Sec. 1107. Sugar program.
Sec. 1108. Administration.
Sec. 1109. Elimination of permanent price support authority.
Sec. 1110. Effect of amendments.
Subtitle B--Conservation
Sec. 1201. Conservation.
Subtitle C--Agricultural Promotion and Export Programs
Sec. 1301. Market promotion program.
Sec. 1302. Export enhancement program.
Subtitle D--Miscellaneous
Sec. 1401. Crop insurance.
Sec. 1402. Collection and use of agricultural quarantine and inspection fees.
Sec. 1403. Commodity Credit Corporation interest rate.

Subtitle A--Agricultural Market Transition Program

SEC. 1101. SHORT TITLE.

This subtitle may be cited as the `Agricultural Market Transition Act'.

SEC. 1102. DEFINITIONS.

In this subtitle:

(1) CONSIDERED PLANTED- The term `considered planted' means acreage that is considered planted under title V of the Agricultural Act of 1949 (7 U.S.C. 1461 et seq.) (as in effect prior to the amendment made by section 1109(b)(2)).

(2) CONTRACT- The term `contract' means a production flexibility contract entered into under section 1103.

(3) CONTRACT ACREAGE- The term `contract acreage' means 1 or more crop acreage bases established for contract commodities under title V of the Agricultural Act of 1949 (as in effect prior to the amendment made by section 1109(b)(2)). If a crop acreage base was not enrolled in an annual program for the 1995 crop in order to increase crop acreage base, the contract acreage for the 1996 crop shall reflect the increased base acreage that would have been established under title V of the Act (as so in effect).

(4) CONTRACT COMMODITY- The term `contract commodity' means wheat, corn, grain sorghum, barley, oats, upland cotton, and rice.

(5) CONTRACT PAYMENT- The term `contract payment' means a payment made under section 1103 pursuant to a contract.

(6) FARM PROGRAM PAYMENT YIELD- The term `farm program payment yield' means the farm program payment yield established for the 1995 crop of a contract commodity under title V of the Agricultural Act of 1949 (as in effect prior to the amendment made by section 1109(b)(2)).

(7) LOAN COMMODITY- The term `loan commodity' means each contract commodity, extra long staple cotton, and oilseeds.

(8) OILSEED- The term `oilseed' means a crop of soybeans, sunflower seed, rapeseed, canola, safflower, flaxseed, mustard seed, or, if designated by the Secretary, other oilseeds.

(9) PROGRAM- The term `program' means the agricultural market transition program established under this subtitle.

(10) SECRETARY- The term `Secretary' means the Secretary of Agriculture.

SEC. 1103. PRODUCTION FLEXIBILITY CONTRACTS.

(a) CONTRACTS AUTHORIZED-

(1) OFFER AND TERMS- Beginning as soon as practicable after the date of the enactment of this subtitle, the Secretary shall offer to enter into a contract with an eligible owner or operator described in paragraph (2) on a farm containing eligible farmland. Under the terms of a contract, the owner or operator shall agree, in exchange for annual contract payments, to comply with--

(A) the conservation plan for the farm prepared in accordance with section 1212 of the Food Security Act of 1985 (16 U.S.C. 3812);

(B) wetland protection requirements applicable to the farm under subtitle C of title XII of the Act (16 U.S.C. 3821 et seq.); and

(C) the planting flexibility requirements of subsection (j).

(2) ELIGIBLE OWNERS AND OPERATORS DESCRIBED- The following persons shall be considered to be an owner or operator eligible to enter into a contract:

(A) An owner of eligible farmland who assumes all of the risk of producing a crop.

(B) An owner of eligible farmland who shares in the risk of producing a crop.

(C) An operator of eligible farmland with a share-rent lease of the eligible farmland, regardless of the length of the lease, if the owner enters into the same contract.

(D) An operator of eligible farmland who cash rents the eligible farmland under a lease expiring on or after September 30, 2002, in which case the consent of the owner is not required.

(E) An operator of eligible farmland who cash rents the eligible farmland under a lease expiring before September 30, 2002, if the owner consents to the contract.

(F) An owner of eligible farmland who cash rents the eligible farmland and the lease term expires before September 30, 2002, but only if the actual operator of the farm declines to enter into a contract. In the case of an owner covered by this subparagraph, contract payments shall not begin under a contract until the fiscal year following the fiscal year in which the lease held by the nonparticipating operator expires.

(G) An owner or operator described in a preceding subparagraph regardless of whether the owner or operator purchased catastrophic risk protection for a fall-planted 1996 crop under section 508(b) of the Federal Crop Insurance Act (7 U.S.C. 1508(b)).

(3) TENANTS AND SHARECROPPERS- In carrying out this section, the Secretary shall provide adequate safeguards to protect the interests of operators who are tenants and sharecroppers.

(b) ELEMENTS-

(1) TIME FOR CONTRACTING-

(A) DEADLINE- Except as provided in subparagraph (B), the Secretary may not enter into a contract after April 15, 1996.

(B) CONSERVATION RESERVE LANDS-

(i) IN GENERAL- At the beginning of each fiscal year, the Secretary shall allow an eligible owner or operator on a farm covered by a conservation reserve contract entered into under section 1231 of the Food Security Act of 1985 (16 U.S.C. 3831) that terminates after the date specified in subparagraph (A) to enter into or expand a production flexibility contract to cover the contract acreage of the farm that was subject to the former conservation reserve contract.

(ii) AMOUNT- Contract payments made for contract acreage under this subparagraph shall be made at the rate and amount applicable to the annual contract payment level for the applicable crop.

(2) DURATION OF CONTRACT-

(A) BEGINNING DATE- A contract shall begin with--

(i) the 1996 crop of a contract commodity; or

(ii) in the case of acreage that was subject to a conservation reserve contract described in paragraph (1)(B), the date the production flexibility contract was entered into or expanded to cover the acreage.

(B) ENDING DATE- A contract shall extend through the 2002 crop.

(3) ESTIMATION OF CONTRACT PAYMENTS- At the time the Secretary enters into a contract, the Secretary shall provide an estimate of the minimum contract payments anticipated to be made during at least the first fiscal year for which contract payments will be made.

(c) ELIGIBLE FARMLAND DESCRIBED- Land shall be considered to be farmland eligible for coverage under a contract only if the land has contract acreage attributable to the land and--

(1) for at least 1 of the 1991 through 1995 crops, at least a portion of the land was enrolled in the acreage reduction program authorized for a crop of a contract commodity under section 101B, 103B, 105B, or 107B of the Agricultural Act of 1949 (as in effect prior to the amendment made by section 1109(b)(2)) or was considered planted;

(2) was subject to a conservation reserve contract under section 1231 of the Food Security Act of 1985 (16 U.S.C. 3831) whose term expired, or was voluntarily terminated, on or after January 1, 1995; or

(3) is released from coverage under a conservation reserve contract by the Secretary during the period beginning on January 1, 1995, and ending on the date specified in subsection (b)(1)(A).

(d) TIME FOR PAYMENT-

(1) IN GENERAL- An annual contract payment shall be made not later than September 30 of each of fiscal years 1996 through 2002.

(2) ADVANCE PAYMENTS-

(A) FISCAL YEAR 1996- At the option of the owner or operator, 50 percent of the contract payment for fiscal year 1996 shall be made not later than 60 days after the date on which the owner or operator enters into a contract.

(B) SUBSEQUENT FISCAL YEARS- At the option of the owner or operator for fiscal year 1997 and each subsequent fiscal year, 50 percent of the annual contract payment shall be made on December 15.

(e) AMOUNTS AVAILABLE FOR CONTRACT PAYMENTS FOR EACH FISCAL YEAR-

(1) IN GENERAL- The Secretary shall expend on a fiscal year basis the following amounts to satisfy the obligations of the Secretary under all contracts:

(A) For fiscal year 1996, $5,570,000,000.

(B) For fiscal year 1997, $5,385,000,000.

(C) For fiscal year 1998, $5,800,000,000.

(D) For fiscal year 1999, $5,603,000,000.

(E) For fiscal year 2000, $5,130,000,000.

(F) For fiscal year 2001, $4,130,000,000.

(G) For fiscal year 2002, $4,008,000,000.

(2) ALLOCATION- The amount made available for a fiscal year under paragraph (1) shall be allocated as follows:

(A) For wheat, 26.26 percent.

(B) For corn, 46.22 percent.

(C) For grain sorghum, 5.11 percent.

(D) For barley, 2.16 percent.

(E) For oats, 0.15 percent.

(F) For upland cotton, 11.63 percent.

(G) For rice, 8.47 percent.

(3) ADJUSTMENT- The Secretary shall adjust the amounts allocated for each contract commodity under paragraph (2) for a particular fiscal year by--

(A) subtracting an amount equal to the amount, if any, necessary to satisfy payment requirements under sections 101B, 103B, 105B, and 107B of the Agricultural Act of 1949 (as in effect prior to the amendment made by section 1109(b)(2)) for the 1994 and 1995 crops of the commodity;

(B) adding an amount equal to the sum of all producer repayments of deficiency payments received under section 114(a)(2) of the Act (as so in effect) for the commodity;

(C) adding an amount equal to the sum of all contract payments withheld by the Secretary, at the request of producers, during the preceding fiscal year as an offset against producer repayments of deficiency payments otherwise required under section 114(a)(2) of the Act (as so in effect) for the commodity; and

(D) adding an amount equal to the sum of all refunds of contract payments received during the preceding fiscal year under subsection (h) for the commodity.

(f) DETERMINATION OF CONTRACT PAYMENTS-

(1) INDIVIDUAL PAYMENT QUANTITY OF CONTRACT COMMODITIES- For each contract, the payment quantity of a contract commodity for each fiscal year shall be equal to the product of--

(A) 85 percent of the contract acreage; and

(B) the farm program payment yield.

(2) ANNUAL PAYMENT QUANTITY OF CONTRACT COMMODITIES- The payment quantity of each contract commodity covered by all contracts for each fiscal year shall equal the sum of the amounts calculated under paragraph (1) for each individual contract.

(3) ANNUAL PAYMENT RATE- The payment rate for a contract commodity for each fiscal year shall be equal to--

(A) the amount made available under subsection (e) for the contract commodity for the fiscal year; divided by

(B) the amount determined under paragraph (2) for the fiscal year.

(4) ANNUAL PAYMENT AMOUNT- The amount to be paid under a contract in effect for each fiscal year with respect to a contract commodity shall be equal to the product of--

(A) the payment quantity determined under paragraph (1) with respect to the contract; and

(B) the payment rate in effect under paragraph (3).

(5) ASSIGNMENT OF CONTRACT PAYMENTS- The provisions of section 8(g) of the Soil Conservation and Domestic Allotment Act (16 U.S.C. 590h(g)) (relating to assignment of payments) shall apply to contract payments under this subsection. The owner or operator making the assignment, or the assignee, shall provide the Secretary with notice, in such manner as the Secretary may require in the contract, of any assignment made under this paragraph.

(6) SHARING OF CONTRACT PAYMENTS- The Secretary shall provide for the sharing of contract payments among the owners and operators subject to the contract on a fair and equitable basis.

(g) PAYMENT LIMITATION- The total amount of contract payments made to a person under a contract during any fiscal year may not exceed the payment limitations established under section 1105.

(h) EFFECT OF VIOLATION-

(1) TERMINATION OF CONTRACT- Except as provided in paragraph (2), if an owner or operator subject to a contract violates the conservation plan for the farm containing eligible farmland under the contract, wetland protection requirements applicable to the farm, or the planting flexibility requirements of subsection (j), the Secretary shall terminate the contract with respect to the owner or operator. On the termination, the owner or operator shall forfeit all rights to receive future contract payments and shall refund to the Secretary all contract payments received by the owner or operator during the period of the violation, together with interest on the contract payments as determined by the Secretary.

(2) REFUND OR ADJUSTMENT- If the Secretary determines that a violation does not warrant termination of the contract under paragraph (1), the Secretary may require the owner or operator subject to the contract--

(A) to refund to the Secretary that part of the contract payments received by the owner or operator during the period of the violation, together with interest on the contract payments as determined by the Secretary; or

(B) to accept a reduction in the amount of future contract payments that is proportionate to the severity of the violation, as determined by the Secretary.

(3) FORECLOSURE- An owner or operator subject to a contract may not be required to make repayments to the Secretary of amounts received under the contract if the contract acreage has been foreclosed on and the Secretary determines that forgiving the repayments is appropriate in order to provide fair and equitable treatment. This paragraph shall not void the responsibilities of such an owner or operator under the contract if the owner or operator continues or resumes operation, or control, of the contract acreage. On the resumption of operation or control over the contract acreage by the owner or operator, the provisions of the contract in effect on the date of the foreclosure shall apply.

(4) REVIEW- A determination of the Secretary under this subsection shall be considered to be an adverse decision for purposes of the availability of administrative review of the determination.

(i) TRANSFER OF INTEREST IN LANDS SUBJECT TO CONTRACT-

(1) EFFECT OF TRANSFER- Except as provided in paragraph (2), the transfer by an owner or operator subject to a contract of the right and interest of the owner or operator in the contract acreage shall result in the termination of the contract with respect to the acreage, effective on the date of the transfer, unless the transferee of the acreage agrees with the Secretary to assume all obligations of the contract. At the request of the transferee, the Secretary may modify the contract if the modifications are consistent with the objectives of this section as determined by the Secretary.

(2) EXCEPTION- If an owner or operator who is entitled to a contract payment dies, becomes incompetent, or is otherwise unable to receive the contract payment, the Secretary shall make the payment, in accordance with regulations prescribed by the Secretary.

(j) PLANTING FLEXIBILITY-

(1) PERMITTED CROPS- Subject to paragraph (2)(A), any commodity or crop may be planted on contract acreage.

(2) LIMITATIONS-

(A) IN GENERAL- Except as provided in subparagraph (B), the planting of any fruit or vegetable, and unlimited haying and grazing, shall be permitted on not more than 15 percent of the contract acreage.

(B) EXCEPTION- Subparagraph (A) shall not apply to the planting of contract commodities, lentils, mung beans, and dry peas on contract acreage.

(3) ALFALFA- The planting of alfalfa on contract acreage is unlimited, except that the quantity of acreage on which the contract payment of the owner or operator would otherwise be based shall be reduced for each acre planted to alfalfa in excess of the limitation in effect under paragraph (2)(A) for the contract.

(4) HAYING AND GRAZING- Subject to paragraphs (2) and (3), haying and grazing of contract acreage shall be permitted, except during any consecutive 5-month period that is established by the State committee established under section 8(b) of the Soil Conservation and Domestic Allotment Act (16 U.S.C. 590h(b)) for a State. The 5-month period shall be established during the period beginning April 1, and ending October 31, of a year. In the case of a natural disaster, the Secretary may permit unlimited haying and grazing on the contract acreage.

SEC. 1104. NONRECOURSE MARKETING ASSISTANCE LOANS AND LOAN DEFICIENCY PAYMENTS.

(a) AVAILABILITY OF NONRECOURSE LOANS-

(1) AVAILABILITY- For each of the 1996 through 2002 crops of each loan commodity, the Secretary shall make available to producers on a farm nonrecourse marketing assistance loans for loan commodities produced on the farm. The loans shall be made under terms and conditions that are prescribed by the Secretary and at the loan rate established under subsection (b) for the loan commodity.

(2) ELIGIBLE PRODUCTION- The following production shall be eligible for a marketing assistance loan under this section:

(A) In the case of a marketing assistance loan for a contract commodity, any production by a producer who has entered into a production flexibility contract.

(B) In the case of a marketing assistance loan for extra long staple cotton and oilseeds, any production.

(b) LOAN RATES-

(1) WHEAT-

(A) LOAN RATE- Subject to subparagraph (B), the loan rate for a marketing assistance loan for wheat shall be--

(i) not less than 85 percent of the simple average price received by producers of wheat, as determined by the Secretary, during the marketing years for the immediately preceding 5 crops of wheat, excluding the year in which the average price was the highest and the year in which the average price was the lowest in the period; but

(ii) not more than $2.58 per bushel.

(B) STOCKS TO USE RATIO ADJUSTMENT- If the Secretary estimates for any marketing year that the ratio of ending stocks of wheat to total use for the marketing year will be--

(i) equal to or greater than 30 percent, the Secretary may reduce the loan rate for wheat for the corresponding crop by an amount not to exceed 10 percent in any year;

(ii) less than 30 percent but not less than 15 percent, the Secretary may reduce the loan rate for wheat for the corresponding crop by an amount not to exceed 5 percent in any year; or

(iii) less than 15 percent, the Secretary may not reduce the loan rate for wheat for the corresponding crop.

(C) NO EFFECT ON FUTURE YEARS- Any reduction in the loan rate for wheat under subparagraph (B) shall not be considered in determining the loan rate for wheat for subsequent years.

(2) FEED GRAINS-

(A) LOAN RATE FOR CORN- Subject to subparagraph (B), the loan rate for a marketing assistance loan for corn shall be--

(i) not less than 85 percent of the simple average price received by producers of corn, as determined by the Secretary, during the marketing years for the immediately preceding 5 crops of corn, excluding the year in which the average price was the highest and the year in which the average price was the lowest in the period; but

(ii) not more than $1.89 per bushel.

(B) STOCKS TO USE RATIO ADJUSTMENT- If the Secretary estimates for any marketing year that the ratio of ending stocks of corn to total use for the marketing year will be--

(i) equal to or greater than 25 percent, the Secretary may reduce the loan rate for corn for the corresponding crop by an amount not to exceed 10 percent in any year;

(ii) less than 25 percent but not less than 12.5 percent, the Secretary may reduce the loan rate for corn for the corresponding crop by an amount not to exceed 5 percent in any year; or

(iii) less than 12.5 percent the Secretary may not reduce the loan rate for corn for the corresponding crop.

(C) NO EFFECT ON FUTURE YEARS- Any reduction in the loan rate for corn under subparagraph (B) shall not be considered in determining the loan rate for corn for subsequent years.

(D) OTHER FEED GRAINS- The loan rate for a marketing assistance loan for grain sorghum, barley, and oats, respectively, shall be established at such level as the Secretary determines is fair and reasonable in relation to the rate that loans are made available for corn, taking into consideration the feeding value of the commodity in relation to corn.

(3) UPLAND COTTON-

(A) LOAN RATE- Subject to subparagraph (B), the loan rate for a marketing assistance loan for upland cotton shall be established by the Secretary at such loan rate, per pound, as will reflect for the base quality of upland cotton, as determined by the Secretary, at average locations in the United States a rate that is not less than the smaller of--

(i) 85 percent of the average price (weighted by market and month) of the base quality of cotton as quoted in the designated United States spot markets during 3 years of the 5-year period ending July 31 in the year in which the loan rate is announced, excluding the year in which the average price was the highest and the year in which the average price was the lowest in the period; or

(ii) 90 percent of the average, for the 15-week period beginning July 1 of the year in which the loan rate is announced, of the 5 lowest-priced growths of the growths quoted for Middling 1 3/32 -inch cotton C.I.F. Northern Europe (adjusted downward by the average difference during the period April 15 through October 15 of the year in which the loan is announced between the average Northern European price quotation of such quality of cotton and the market quotations in the designated United States spot markets for the base quality of upland cotton), as determined by the Secretary.

(B) LIMITATIONS- The loan rate for a marketing assistance loan for upland cotton shall not be less than $0.50 per pound or more than $0.5192 per pound.

(4) EXTRA LONG STAPLE COTTON- The loan rate for a marketing assistance loan for extra long staple cotton shall be--

(A) not less than 85 percent of the simple average price received by producers of extra long staple cotton, as determined by the Secretary, during 3 years of the 5 previous marketing years, excluding the year in which the average price was the highest and the year in which the average price was the lowest in the period; but

(B) not more than $0.7965 per pound.

(5) RICE- The loan rate for a marketing assistance loan for rice shall be $6.50 per hundredweight.

(6) OILSEEDS-

(A) SOYBEANS- The loan rate for a marketing assistance loan for soybeans shall be $4.92 per bushel.

(B) SUNFLOWER SEED, CANOLA, RAPESEED, SAFFLOWER, MUSTARD SEED, AND FLAXSEED- The loan rates for a marketing assistance loan for sunflower seed, canola, rapeseed, safflower, mustard seed, and flaxseed, individually, shall be $0.087 per pound.

(C) OTHER OILSEEDS- The loan rates for a marketing assistance loan for other oilseeds shall be established at such level as the Secretary determines is fair and reasonable in relation to the loan rate available for soybeans, except in no event shall the rate for the oilseeds (other than cottonseed) be less than the rate established for soybeans on a per-pound basis for the same crop.

(c) TERM OF LOAN- In the case of each loan commodity (other than upland cotton or extra long staple cotton), a marketing assistance loan under subsection (a) shall have a term of 9 months beginning on the first day of the first month after the month in which the loan is made. A marketing assistance loan for upland cotton or extra long staple cotton shall have a term of 10 months. The Secretary may not extend the term of a marketing assistance loan for any loan commodity.

(d) REPAYMENT-

(1) REPAYMENT RATES GENERALLY- The Secretary shall permit producers to repay a marketing assistance loan under subsection (a) for a loan commodity (other than extra long staple cotton) at a level that is the lesser of--

(A) the loan rate established for the commodity under subsection (b); or

(B) the prevailing world market price for the commodity (adjusted to United States quality and location), as determined by the Secretary.

(2) REPAYMENT RATES FOR EXTRA LONG STAPLE COTTON- Repayment of a marketing assistance loan for extra long staple cotton shall be at the loan rate established for the commodity under subsection (b).

(3) PREVAILING WORLD MARKET PRICE- For purposes of paragraph (1)(B) and subsection (f), the Secretary shall prescribe by regulation--

(A) a formula to determine the prevailing world market price for each loan commodity, adjusted to United States quality and location; and

(B) a mechanism by which the Secretary shall announce periodically the prevailing world market price for each loan commodity.

(4) ADJUSTMENT OF PREVAILING WORLD MARKET PRICE FOR UPLAND COTTON-

(A) IN GENERAL- During the period ending July 31, 2003, the prevailing world market price for upland cotton (adjusted to United States quality and location) established under paragraph (3) shall be further adjusted if--

(i) the adjusted prevailing world market price is less than 115 percent of the loan rate for upland cotton established under subsection (b), as determined by the Secretary; and

(ii) the Friday through Thursday average price quotation for the lowest-priced United States growth as quoted for Middling (M) 1 3/32 -inch cotton delivered C.I.F. Northern Europe is greater than the Friday through Thursday average price of the 5 lowest-priced growths of upland cotton, as quoted for Middling (M) 1 3/32 -inch cotton, delivered C.I.F. Northern Europe (referred to in this subsection as the `Northern Europe price').

(B) FURTHER ADJUSTMENT- Except as provided in subparagraph (C), the adjusted prevailing world market price for upland cotton shall be further adjusted on the basis of some or all of the following data, as available:

(i) The United States share of world exports.

(ii) The current level of cotton export sales and cotton export shipments.

(iii) Other data determined by the Secretary to be relevant in establishing an accurate prevailing world market price for upland cotton (adjusted to United States quality and location).

(C) LIMITATION ON FURTHER ADJUSTMENT- The adjustment under subparagraph (B) may not exceed the difference between--

(i) the Friday through Thursday average price for the lowest-priced United States growth as quoted for Middling 1 3/32 -inch cotton delivered C.I.F. Northern Europe; and

(ii) the Northern Europe price.

(e) LOAN DEFICIENCY PAYMENTS-

(1) AVAILABILITY- Except as provided in paragraph (4), the Secretary may make loan deficiency payments available to producers who, although eligible to obtain a marketing assistance loan under subsection (a) with respect to a loan commodity, agree to forgo obtaining the loan for the commodity in return for payments under this subsection.

(2) COMPUTATION- A loan deficiency payment under this subsection shall be computed by multiplying--

(A) the loan payment rate determined under paragraph (3) for the loan commodity; by

(B) the quantity of the loan commodity that the producers on a farm are eligible to place under loan but for which the producers forgo obtaining the loan in return for payments under this subsection.

(3) LOAN PAYMENT RATE- For purposes of this subsection, the loan payment rate shall be the amount by which--

(A) the loan rate established under subsection (b) for the loan commodity; exceeds

(B) the rate at which a loan for the commodity may be repaid under subsection (d).

(4) EXCEPTION FOR EXTRA LONG STAPLE COTTON- This subsection shall not apply with respect to extra long staple cotton.

(f) SPECIAL MARKETING LOAN PROVISIONS FOR UPLAND COTTON-

(1) FIRST HANDLER MARKETING CERTIFICATES-

(A) IN GENERAL- During the period ending on July 31, 2003, if the repayment rates provided in subsection (d) for upland cotton or the availability of loan deficiency payments for upland cotton under subsection (e) fails to make United States upland cotton fully competitive in world markets and the prevailing world market price of upland cotton (adjusted to United States quality and location) is below the current loan repayment rate for upland cotton, to make United States upland cotton competitive in world markets and to maintain and expand domestic consumption and exports of upland cotton produced in the United States, the Secretary shall provide for the issuance of marketing certificates or cash payments in accordance with this paragraph.

(B) PAYMENTS- The Commodity Credit Corporation, under such regulations as the Secretary may prescribe, shall make payments, through the issuance of marketing certificates or cash payments, to first handlers of upland cotton (persons regularly engaged in buying or selling upland cotton) who have entered into an agreement with the Commodity Credit Corporation to participate in the program established under this paragraph. The payments shall be made in such amounts and subject to such terms and conditions as the Secretary determines will make upland cotton produced in the United States available at competitive prices, consistent with the purposes of this paragraph.

(C) VALUE- The value of each certificate or cash payment issued under subparagraph (B) shall be based on the difference between--

(i) the loan repayment rate for upland cotton; and

(ii) the prevailing world market price of upland cotton (adjusted to United States quality and location), as determined by the Secretary.

(D) REDEMPTION, MARKETING, OR EXCHANGE- The Commodity Credit Corporation, under regulations prescribed by the Secretary, may assist any person receiving marketing certificates under this paragraph in the redemption of certificates for cash, or marketing or exchange of the certificates for agricultural commodities or products owned by the Commodity Credit Corporation, at such times, in such manner, and at such price levels as the Secretary determines will best effectuate the purposes of the program established under this paragraph. Any price restrictions that may otherwise apply to the disposition of agricultural commodities by the Commodity Credit Corporation shall not apply to the redemption of certificates under this paragraph.

(E) DESIGNATION OF COMMODITIES AND PRODUCTS; CHARGES- Insofar as practicable, the Secretary shall permit owners of certificates to designate the commodities and products, including storage sites, the owners would prefer to receive in exchange for certificates. If any certificate is not presented for redemption, marketing, or exchange within a reasonable number of days after the issuance of the certificate (as determined by the Secretary), reasonable costs of storage and other carrying charges, as determined by the Secretary, shall be deducted from the value of the certificate for the period beginning after the reasonable number of days and ending with the date of the presentation of the certificate to the Commodity Credit Corporation.

(F) DISPLACEMENT- The Secretary shall take such measures as may be necessary to prevent the marketing or exchange of agricultural commodities and products for certificates under this subsection from adversely affecting the income of producers of the commodities or products.

(G) TRANSFERS- Under regulations prescribed by the Secretary, certificates issued to cotton handlers under this paragraph may be transferred to other handlers and persons approved by the Secretary.

(2) COTTON USER MARKETING CERTIFICATES-

(A) ISSUANCE- Subject to subparagraph (D), during the period ending July 31, 2003, the Secretary shall issue marketing certificates or cash payments to domestic users and exporters for documented purchases by domestic users and sales for export by exporters made in the week following a consecutive 4-week period in which--

(i) the Friday through Thursday average price quotation for the lowest-priced United States growth, as quoted for Middling (M) 1 3/32 -inch cotton, delivered C.I.F. Northern Europe exceeds the Northern Europe price by more than 1.25 cents per pound; and

(ii) the prevailing world market price for upland cotton (adjusted to United States quality and location) does not exceed 130 percent of the loan rate for upland cotton established under subsection (b).

(B) VALUE OF CERTIFICATES OR PAYMENTS- The value of the marketing certificates or cash payments shall be based on the amount of the difference (reduced by 1.25 cents per pound) in the prices during the 4th week of the consecutive 4-week period multiplied by the quantity of upland cotton included in the documented sales.

(C) ADMINISTRATION- Subparagraphs (D) through (G) of paragraph (1) shall apply to marketing certificates issued under this paragraph. Any such certificates may be transferred to other persons in accordance with regulations issued by the Secretary.

(D) EXCEPTION- The Secretary shall not issue marketing certificates or cash payments under subparagraph (A) if, for the immediately preceding consecutive 10-week period, the Friday through Thursday average price quotation for the lowest priced United States growth, as quoted for Middling (M) 1 3/32 -inch cotton, delivered C.I.F. Northern Europe, adjusted for the value of any certificate issued under this paragraph, exceeds the Northern Europe price by more than 1.25 cents per pound.

(E) LIMITATION ON EXPENDITURES- Total expenditures under this paragraph shall not exceed $701,000,000 during fiscal years 1996 through 2002.

(3) SPECIAL IMPORT QUOTA-

(A) ESTABLISHMENT- The President shall carry out an import quota program that provides that, during the period ending July 31, 2003, whenever the Secretary determines and announces that for any consecutive 10-week period, the Friday through Thursday average price quotation for the lowest-priced United States growth, as quoted for Middling (M) 1 3/32 -inch cotton, delivered C.I.F. Northern Europe, adjusted for the value of any certificates issued under paragraph (2), exceeds the Northern Europe price by more than 1.25 cents per pound, there shall immediately be in effect a special import quota.

(B) QUANTITY- The quota shall be equal to 1 week's consumption of upland cotton by domestic mills at the seasonally adjusted average rate of the most recent 3 months for which data are available.

(C) APPLICATION- The quota shall apply to upland cotton purchased not later than 90 days after the date of the Secretary's announcement under subparagraph (A) and entered into the United States not later than 180 days after the date.

(D) OVERLAP- A special quota period may be established that overlaps any existing quota period if required by subparagraph (A), except that a special quota period may not be established under this paragraph if a quota period has been established under subsection (g).

(E) PREFERENTIAL TARIFF TREATMENT- The quantity under a special import quota shall be considered to be an in-quota quantity for purposes of--

(i) section 213(d) of the Caribbean Basin Economic Recovery Act (19 U.S.C. 2703(d));

(ii) section 204 of the Andean Trade Preference Act (19 U.S.C. 3203);

(iii) section 503(d) of the Trade Act of 1974 (19 U.S.C. 2463(d)); and

(iv) General Note 3(a)(iv) to the Harmonized Tariff Schedule.

(F) DEFINITION- In this paragraph, the term `special import quota' means a quantity of imports that is not subject to the over-quota tariff rate of a tariff-rate quota.

(g) LIMITED GLOBAL IMPORT QUOTA FOR UPLAND COTTON-

(1) IN GENERAL- The President shall carry out an import quota program that provides that whenever the Secretary determines and announces that the average price of the base quality of upland cotton, as determined by the Secretary, in the designated spot markets for a month exceeded 130 percent of the average price of such quality of cotton in the markets for the preceding 36 months, notwithstanding any other provision of law, there shall immediately be in effect a limited global import quota subject to the following conditions:

(A) QUANTITY- The quantity of the quota shall be equal to 21 days of domestic mill consumption of upland cotton at the seasonally adjusted average rate of the most recent 3 months for which data are available.

(B) QUANTITY IF PRIOR QUOTA- If a quota has been established under this subsection during the preceding 12 months, the quantity of the quota next established under this subsection shall be the smaller of 21 days of domestic mill consumption calculated under subparagraph (A) or the quantity required to increase the supply to 130 percent of the demand.

(C) PREFERENTIAL TARIFF TREATMENT- The quantity under a limited global import quota shall be considered to be an in-quota quantity for purposes of--

(i) section 213(d) of the Caribbean Basin Economic Recovery Act (19 U.S.C. 2703(d));

(ii) section 204 of the Andean Trade Preference Act (19 U.S.C. 3203);

(iii) section 503(d) of the Trade Act of 1974 (19 U.S.C. 2463(d)); and

(iv) General Note 3(a)(iv) to the Harmonized Tariff Schedule.

(D) DEFINITIONS- In this subsection:

(i) SUPPLY- The term `supply' means, using the latest official data of the Bureau of the Census, the Department of Agriculture, and the Department of the Treasury--

(I) the carry-over of upland cotton at the beginning of the marketing year (adjusted to 480-pound bales) in which the quota is established;

(II) production of the current crop; and

(III) imports to the latest date available during the marketing year.

(ii) DEMAND- The term `demand' means--

(I) the average seasonally adjusted annual rate of domestic mill consumption in the most recent 3 months for which data are available; and

(II) the larger of--

(aa) average exports of upland cotton during the preceding 6 marketing years; or

(bb) cumulative exports of upland cotton plus outstanding export sales for the marketing year in which the quota is established.

(iii) LIMITED GLOBAL IMPORT QUOTA- The term `limited global import quota' means a quantity of imports that is not subject to the over-quota tariff rate of a tariff-rate quota.

(D) QUOTA ENTRY PERIOD- When a quota is established under this subsection, cotton may be entered under the quota during the 90-day period beginning on the date the quota is established by the Secretary.

(2) NO OVERLAP- Notwithstanding paragraph (1), a quota period may not be established that overlaps an existing quota period or a special quota period established under subsection (f)(3).

SEC. 1105. PAYMENT LIMITATIONS.

(a) LIMITATION ON PAYMENTS UNDER PRODUCTION FLEXIBILITY CONTRACTS- The total amount of contract payments made to a person under 1 or more production flexibility contracts during any fiscal year may not exceed $40,000.

(b) LIMITATION ON MARKETING LOAN GAINS AND LOAN DEFICIENCY PAYMENTS-

(1) LIMITATION- The total amount of payments specified in paragraph (2) that a person shall be entitled to receive under section 1104 for contract commodities and oilseeds during any fiscal year may not exceed $75,000.

(2) DESCRIPTION OF PAYMENTS- The payments referred to in paragraph (1) are the following:

(A) Any gain realized by a producer from repaying a marketing assistance loan for a crop of any loan commodity at a lower level than the original loan rate established for the commodity under section 1104(b).

(B) Any loan deficiency payment received for a loan commodity under section 1104(e).

(c) APPLICABILITY OF OTHER PROVISIONS REGARDING PAYMENT LIMITATIONS- Paragraphs (5), (6), and (7) of section 1001 and sections 1001A through 1001C of the Food Security Act of 1985 (7 U.S.C. 1308 et seq.) shall apply with respect to the application of payment limitations under this section.

(d) CONFORMING AMENDMENTS- Section 1001 of the Food Security Act of 1985 (7 U.S.C. 1308) is amended by striking `1997' each place it appears in paragraphs (1)(A), (1)(B), and (2)(A) and inserting `1995'.

SEC. 1106. PEANUT PROGRAM.

(a) QUOTA PEANUTS-

(1) AVAILABILITY OF LOANS- The Secretary shall make nonrecourse loans available to producers of quota peanuts.

(2) LOAN RATE- The national average quota loan rate for quota peanuts shall be $610 per ton.

(3) INSPECTION, HANDLING, OR STORAGE- The loan amount may not be reduced by the Secretary by any deductions for inspection, handling, or storage.

(4) LOCATION AND OTHER FACTORS- The Secretary may make adjustments in the loan rate for quota peanuts for location of peanuts and such other factors as are authorized by section 411 of the Agricultural Adjustment Act of 1938.

(b) ADDITIONAL PEANUTS-

(1) IN GENERAL- The Secretary shall make nonrecourse loans available to producers of additional peanuts at such rates as the Secretary finds appropriate, taking into consideration the demand for peanut oil and peanut meal, expected prices of other vegetable oils and protein meals, and the demand for peanuts in foreign markets.

(2) ANNOUNCEMENT- The Secretary shall announce the loan rate for additional peanuts of each crop not later than February 15 preceding the marketing year for the crop for which the loan rate is being determined.

(c) AREA MARKETING ASSOCIATIONS-

(1) WAREHOUSE STORAGE LOANS-

(A) IN GENERAL- In carrying out subsections (a) and (b), the Secretary shall make warehouse storage loans available in each of the producing areas (described in section 1446.95 of title 7 of the Code of Federal Regulations (January 1, 1989)) to a designated area marketing association of peanut producers that is selected and approved by the Secretary and that is operated primarily for the purpose of conducting the loan activities. The Secretary may not make warehouse storage loans available to any cooperative that is engaged in operations or activities concerning peanuts other than those operations and activities specified in this section and section 358e of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359a).

(B) ADMINISTRATIVE AND SUPERVISORY ACTIVITIES- An area marketing association shall be used in administrative and supervisory activities relating to loans and marketing activities under this section and section 358e of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359a).

(C) ASSOCIATION COSTS- Loans made to the association under this paragraph shall include such costs as the area marketing association reasonably may incur in carrying out the responsibilities, operations, and activities of the association under this section and section 358e of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359a).

(2) POOLS FOR QUOTA AND ADDITIONAL PEANUTS-

(A) IN GENERAL- The Secretary shall require that each area marketing association establish pools and maintain complete and accurate records by area and segregation for quota peanuts handled under loan and for additional peanuts placed under loan, except that separate pools shall be established for Valencia peanuts produced in New Mexico. Bright hull and dark hull Valencia peanuts shall be considered as separate types for the purpose of establishing the pools.

(B) NET GAINS- Net gains on peanuts in each pool, unless otherwise approved by the Secretary, shall be distributed only to producers who placed peanuts in the pool and shall be distributed in proportion to the value of the peanuts placed in the pool by each producer. Net gains for peanuts in each pool shall consist of the following:

(i) QUOTA PEANUTS- For quota peanuts, the net gains over and above the loan indebtedness and other costs or losses incurred on peanuts placed in the pool.

(ii) ADDITIONAL PEANUTS- For additional peanuts, the net gains over and above the loan indebtedness and other costs or losses incurred on peanuts placed in the pool for additional peanuts.

(d) LOSSES- Losses in quota area pools shall be covered using the following sources in the following order of priority:

(1) TRANSFERS FROM ADDITIONAL LOAN POOLS- The proceeds due any producer from any pool shall be reduced by the amount of any loss that is incurred with respect to peanuts transferred from an additional loan pool to a quota loan pool by the producer under section 358-1(b)(8) of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1358-1(b)(8)).

(2) OTHER PRODUCERS IN SAME POOL- Further losses in an area quota pool shall be offset by reducing the gain of any producer in the pool by the amount of pool gains attributed to the same producer from the sale of additional peanuts for domestic and export edible use.

(3) USE OF MARKETING ASSESSMENTS- The Secretary shall use funds collected under subsection (g) (except funds attributable to handlers) to offset further losses in area quota pools. The Secretary shall transfer to the Treasury those funds collected under subsection (g) and available for use under this subsection that the Secretary determines are not required to cover losses in area quota pools.

(4) CROSS COMPLIANCE- Further losses in area quota pools, other than losses incurred as a result of transfers from additional loan pools to quota loan pools under section 358-1(b)(8) of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1358-1(b)(8)), shall be offset by any gains or profits from quota pools in other production areas (other than separate type pools established under subsection (c)(2)(A) for Valencia peanuts produced in New Mexico) in such manner as the Secretary shall by regulation prescribe.

(5) INCREASED ASSESSMENTS- If use of the authorities provided in the preceding paragraphs is not sufficient to cover losses in an area quota pool, the Secretary shall increase the marketing assessment established under subsection (g) by such an amount as the Secretary considers necessary to cover the losses. The increased assessment shall apply only to quota peanuts in the production area covered by the pool. Amounts collected under subsection (g) as a result of the increased assessment shall be retained by the Secretary to cover losses in that pool.

(e) DISAPPROVAL OF QUOTAS- Notwithstanding any other provision of law, no loan for quota peanuts may be made available by the Secretary for any crop of peanuts with respect to which poundage quotas have been disapproved by producers, as provided for in section 358-1(d) of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1358-1(d)).

(f) QUALITY IMPROVEMENT-

(1) IN GENERAL- With respect to peanuts under loan, the Secretary shall--

(A) promote the crushing of peanuts at a greater risk of deterioration before peanuts of a lesser risk of deterioration;

(B) ensure that all Commodity Credit Corporation inventories of peanuts sold for domestic edible use must be shown to have been officially inspected by licensed Department of Agriculture inspectors both as farmer stock and shelled or cleaned in-shell peanuts;

(C) continue to endeavor to operate the peanut program so as to improve the quality of domestic peanuts and ensure the coordination of activities under the Peanut Administrative Committee established under Marketing Agreement No. 146, regulating the quality of domestically produced peanuts (under the Agricultural Adjustment Act (7 U.S.C. 601 et seq.), reenacted with amendments by the Agricultural Marketing Agreement Act of 1937); and

(D) ensure that any changes made in the peanut program as a result of this subsection requiring additional production or handling at the farm level shall be reflected as an upward adjustment in the Department of Agriculture loan schedule.

(2) EXPORTS AND OTHER PEANUTS- The Secretary shall require that all peanuts in the domestic and export markets fully comply with all quality standards under Marketing Agreement No. 146.

(g) MARKETING ASSESSMENT-

(1) IN GENERAL- The Secretary shall provide for a nonrefundable marketing assessment. The assessment shall be made on a per pound basis in an amount equal to 1.1 percent for each of the 1994 and 1995 crops, 1.15 percent for the 1996 crop, and 1.2 percent for each of the 1997 through 2002 crops, of the national average quota or additional peanut loan rate for the applicable crop.

(2) FIRST PURCHASERS-

(A) IN GENERAL- Except as provided under paragraphs (3) and (4), the first purchaser of peanuts shall--

(i) collect from the producer a marketing assessment equal to the quantity of peanuts acquired multiplied by--

(I) in the case of each of the 1994 and 1995 crops, .55 percent of the applicable national average loan rate;

(II) in the case of the 1996 crop, .6 percent of the applicable national average loan rate; and

(III) in the case of each of the 1997 through 2002 crops, .65 percent of the applicable national average loan rate;

(ii) pay, in addition to the amount collected under clause (i), a marketing assessment in an amount equal to the quantity of peanuts acquired multiplied by .55 percent of the applicable national average loan rate; and

(iii) remit the amounts required under clauses (i) and (ii) to the Commodity Credit Corporation in a manner specified by the Secretary.

(B) DEFINITION OF FIRST PURCHASER- In this subsection, the term `first purchaser' means a person acquiring peanuts from a producer except that in the case of peanuts forfeited by a producer to the Commodity Credit Corporation, the term means the person acquiring the peanuts from the Commodity Credit Corporation.

(3) OTHER PRIVATE MARKETINGS- In the case of a private marketing by a producer directly to a consumer through a retail or wholesale outlet or in the case of a marketing by the producer outside of the continental United States, the producer shall be responsible for the full amount of the assessment and shall remit the assessment by such time as is specified by the Secretary.

(4) LOAN PEANUTS- In the case of peanuts that are pledged as collateral for a loan made under this section, 1/2 of the assessment shall be deducted from the proceeds of the loan. The remainder of the assessment shall be paid by the first purchaser of the peanuts. For purposes of computing net gains on peanuts under this section, the reduction in loan proceeds shall be treated as having been paid to the producer.

(5) PENALTIES- If any person fails to collect or remit the reduction required by this subsection or fails to comply with the requirements for recordkeeping or otherwise as are required by the Secretary to carry out this subsection, the person shall be liable to the Secretary for a civil penalty up to an amount determined by multiplying--

(A) the quantity of peanuts involved in the violation; by

(B) the national average quota peanut rate for the applicable crop year.

(6) ENFORCEMENT- The Secretary may enforce this subsection in the courts of the United States.

(h) CROPS- Subsections (a) through (f) shall be effective only for the 1996 through 2002 crops of peanuts.

(i) MARKETING QUOTAS-

(1) IN GENERAL- Part VI of subtitle B of title III of the Agricultural Adjustment Act of 1938 is amended--

(A) in section 358-1 (7 U.S.C. 1358-1)--

(i) in the section heading, by striking `1991 through 1997 crops of';

(ii) in subsections (a)(1), (b)(1)(B), (b)(2)(A), (b)(2)(C), and (b)(3)(A), by striking `of the 1991 through 1997 marketing years' each place it appears and inserting `marketing year';

(iii) in subsection (a)(3), by striking `1990' and inserting `1990, for the 1991 through 1995 marketing years, and 1995, for the 1996 through 2002 marketing years';

(iv) in subsection (b)(1)(A)--

(I) by striking `each of the 1991 through 1997 marketing years' and inserting `each marketing year'; and

(II) in clause (i), by inserting before the semicolon the following: `, in the case of the 1991 through 1995 marketing years, and the 1995 marketing year, in the case of the 1996 through 2002 marketing years'; and

(v) in subsection (f), by striking `1997' and inserting `2002';

(B) in section 358b (7 U.S.C. 1358b)--

(i) in the section heading, by striking `1991 through 1995 crops of'; and

(ii) in subsection (c), by striking `1995' and inserting `2002';

(C) in section 358c(d) (7 U.S.C. 1358c(d)), by striking `1995' and inserting `2002'; and

(D) in section 358e (7 U.S.C. 1359a)--

(i) in the section heading, by striking `for 1991 through 1997 crops of peanuts'; and

(ii) in subsection (i), by striking `1997' and inserting `2002'.

(2) ELIMINATION OF QUOTA FLOOR- Section 358-1(a)(1) of the Act (7 U.S.C. 1358-1(a)(1)) is amended by striking the second sentence.

(3) TEMPORARY QUOTA ALLOCATION- Section 358-1 of the Act (7 U.S.C. 1358-1) is amended--

(A) in subsection (a)(1), by striking `domestic edible, seed,' and inserting `domestic edible use'; and

(B) in subsection (b)(2)--

(i) in subparagraph (A), by striking `subparagraph (B) and subject to'; and

(ii) by striking subparagraph (B) and inserting the following:

`(B) TEMPORARY QUOTA ALLOCATION-

`(i) ALLOCATION RELATED TO SEED PEANUTS- Temporary allocation of quota pounds for the marketing year only in which the crop is planted shall be made to producers for each of the 1996 through 2002 marketing years as provided in this subparagraph.

`(ii) QUANTITY- The temporary quota allocation shall be equal to the pounds of seed peanuts planted on the farm, as may be adjusted under regulations prescribed by the Secretary.

`(iii) ADDITIONAL QUOTA- The temporary allocation of quota pounds under this paragraph shall be in addition to the farm poundage quota otherwise established under this subsection and shall be credited, for the applicable marketing year only, in total to the producer of the peanuts on the farm in a manner prescribed by the Secretary.

`(iv) EFFECT OF OTHER REQUIREMENTS- Nothing in this section alters or changes the requirements regarding the use of quota and additional peanuts established by section 358e(b).'.

(4) UNDERMARKETINGS- Part VI of subtitle B of title III of the Act is amended--

(A) in section 358-1(b) (7 U.S.C. 1358-1(b))--

(i) in paragraph (1)(B), by striking `including--' and clauses (i) and (ii) and inserting `including any increases resulting from the allocation of quotas voluntarily released for 1 year under paragraph (7).';

(ii) in paragraph (3)(B), by striking `include--' and clauses (i) and (ii) and inserting `include any increase resulting from the allocation of quotas voluntarily released for 1 year under paragraph (7).'; and

(iii) by striking paragraphs (8) and (9); and

(B) in section 358b(a) (7 U.S.C. 1358b(a))--

(i) in paragraph (1), by striking `(including any applicable under marketings)' both places it appears;

(ii) in paragraph (1)(A), by striking `of undermarketings and';

(iii) in paragraph (2), by striking `(including any applicable under marketings)'; and

(iv) in paragraph (3), by striking `(including any applicable undermarketings)'.

(5) DISASTER TRANSFERS- Section 358-1(b) of the Act (7 U.S.C. 1358-1(b)), as amended by paragraph (4)(A)(iii), is further amended by adding at the end the following:

`(8) DISASTER TRANSFERS-

`(A) IN GENERAL- Except as provided in subparagraph (B), additional peanuts produced on a farm from which the quota poundage was not harvested and marketed because of drought, flood, or any other natural disaster, or any other condition beyond the control of the producer, may be transferred to the quota loan pool for pricing purposes on such basis as the Secretary shall by regulation provide.

`(B) LIMITATION- The poundage of peanuts transferred under subparagraph (A) shall not exceed the difference between--

`(i) the total quantity of peanuts meeting quality requirements for domestic edible use, as determined by the Secretary, marketed from the farm; and

`(ii) the total farm poundage quota, excluding quota pounds transferred to the farm in the fall.

`(C) SUPPORT RATE- Peanuts transferred under this paragraph shall be supported at not more than 70 percent of the quota support rate for the marketing years in which the transfers occur. The transfers for a farm shall not exceed 25 percent of the total farm quota pounds, excluding pounds transferred in the fall.'.

SEC. 1107. SUGAR PROGRAM.

(a) SUGARCANE- The Secretary shall make loans available to processors of domestically grown sugarcane at a rate equal to 18 cents per pound for raw cane sugar.

(b) SUGAR BEETS- The Secretary shall make loans available to processors of domestically grown sugar beets at a rate equal to 22.9 cents per pound for refined beet sugar.

(c) TERM OF LOANS-

(1) IN GENERAL- Loans under this section during any fiscal year shall be made available not earlier than the beginning of the fiscal year and shall mature at the earlier of--

(A) the end of 9 months; or

(B) the end of the fiscal year.

(2) SUPPLEMENTAL LOANS- In the case of loans made under this section in the last 3 months of a fiscal year, the processor may repledge the sugar as collateral for a second loan in the subsequent fiscal year, except that the second loan shall--

(A) be made at the loan rate in effect at the time the second loan is made; and

(B) mature in 9 months less the quantity of time that the first loan was in effect.

(d) LOAN TYPE; PROCESSOR ASSURANCES-

(1) RECOURSE LOANS- Subject to paragraph (2), the Secretary shall carry out this section through the use of recourse loans.

(2) NONRECOURSE LOANS- During any fiscal year in which the tariff rate quota for imports of sugar into the United States is established at, or is increased to, a level in excess of 1,500,000 short tons raw value, the Secretary shall carry out this section by making available nonrecourse loans. Any recourse loan previously made available by the Secretary under this section during the fiscal year shall be changed by the Secretary into a nonrecourse loan.

(3) PROCESSOR ASSURANCES- If the Secretary is required under paragraph (2) to make nonrecourse loans available during a fiscal year or to change recourse loans into nonrecourse loans, the Secretary shall obtain from each processor that receives a loan under this section such assurances as the Secretary considers adequate to ensure that the processor will provide payments to producers that are proportional to the value of the loan received by the processor for sugar beets and sugarcane delivered by producers served by the processor. The Secretary may establish appropriate minimum payments for purposes of this paragraph.

(e) MARKETING ASSESSMENT-

(1) SUGARCANE- Effective for marketings of raw cane sugar during the 1996 through 2003 fiscal years, the first processor of sugarcane shall remit to the Commodity Credit Corporation a nonrefundable marketing assessment in an amount equal to--

(A) in the case of marketings during fiscal year 1996, 1.1 percent of the loan rate established under subsection (a) per pound of raw cane sugar, processed by the processor from domestically produced sugarcane or sugarcane molasses, that has been marketed (including the transfer or delivery of the sugar to a refinery for further processing or marketing); and

(B) in the case of marketings during each of fiscal years 1997 through 2003, 1.375 percent of the loan rate established under subsection (a) per pound of raw cane sugar, processed by the processor from domestically produced sugarcane or sugarcane molasses, that has been marketed (including the transfer or delivery of the sugar to a refinery for further processing or marketing).

(2) SUGAR BEETS- Effective for marketings of beet sugar during the 1996 through 2003 fiscal years, the first processor of sugar beets shall remit to the Commodity Credit Corporation a nonrefundable marketing assessment in an amount equal to--

(A) in the case of marketings during fiscal year 1996, 1.1794 percent of the loan rate established under subsection (a) per pound of beet sugar, processed by the processor from domestically produced sugar beets or sugar beet molasses, that has been marketed; and

(B) in the case of marketings during each of fiscal years 1997 through 2003, 1.47425 percent of the loan rate established under subsection (a) per pound of beet sugar, processed by the processor from domestically produced sugar beets or sugar beet molasses, that has been marketed.

(3) COLLECTION-

(A) TIMING- A marketing assessment required under this subsection shall be collected on a monthly basis and shall be remitted to the Commodity Credit Corporation not later than 30 days after the end of each month. Any cane sugar or beet sugar processed during a fiscal year that has not been marketed by September 30 of the year shall be subject to assessment on that date. The sugar shall not be subject to a second assessment at the time that it is marketed.

(B) MANNER- Subject to subparagraph (A), marketing assessments shall be collected under this subsection in the manner prescribed by the Secretary and shall be nonrefundable.

(4) PENALTIES- If any person fails to remit the assessment required by this subsection or fails to comply with such requirements for recordkeeping or otherwise as are required by the Secretary to carry out this subsection, the person shall be liable to the Secretary for a civil penalty up to an amount determined by multiplying--

(A) the quantity of cane sugar or beet sugar involved in the violation; by

(B) the loan rate for the applicable crop of sugarcane or sugar beets.

(5) ENFORCEMENT- The Secretary may enforce this subsection in a court of the United States.

(f) FORFEITURE PENALTY-

(1) IN GENERAL- A penalty shall be assessed on the forfeiture of any sugar pledged as collateral for a nonrecourse loan under this section.

(2) SUGARCANE- The penalty for sugarcane shall be 1 cent per pound.

(3) SUGAR BEETS- The penalty for sugar beets shall bear the same relation to the penalty for sugarcane as the marketing assessment for sugar beets bears to the marketing assessment for sugarcane.

(4) EFFECT OF FORFEITURE- Any payments owed producers by a processor that forfeits of any sugar pledged as collateral for a nonrecourse loan shall be reduced in proportion to the loan forfeiture penalty incurred by the processor.

(g) INFORMATION REPORTING-

(1) DUTY OF PROCESSORS AND REFINERS TO REPORT- A sugarcane processor, cane sugar refiner, and sugar beet processor shall furnish the Secretary, on a monthly basis, such information as the Secretary may require to administer sugar programs, including the quantity of purchases of sugarcane, sugar beets, and sugar, and production, importation, distribution, and stock levels of sugar.

(2) PENALTY- Any person willfully failing or refusing to furnish the information, or furnishing willfully any false information, shall be subject to a civil penalty of not more than $10,000 for each such violation.

(3) MONTHLY REPORTS- Taking into consideration the information received under paragraph (1), the Secretary shall publish on a monthly basis composite data on production, imports, distribution, and stock levels of sugar.

(h) MARKETING ALLOTMENTS- Part VII of subtitle B of title III of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359aa et seq.) is repealed.

(i) CROPS- This section (other than subsection (h)) shall be effective only for the 1996 through 2002 crops of sugar beets and sugarcane.

SEC. 1108. ADMINISTRATION.

(a) COMMODITY CREDIT CORPORATION-

(1) USE OF CORPORATION- The Secretary shall carry out this subtitle through the Commodity Credit Corporation.

(2) SALARIES AND EXPENSES- No funds of the Corporation shall be used for any salary or expense of any officer or employee of the Department of Agriculture in connection with the administration of payments or loans under this subtitle.

(b) ADMINISTRATION- Title IV of the Agricultural Adjustment Act of 1938 (as added by section 1109) shall apply to the administration of this subtitle.

(c) REGULATIONS- The Secretary may issue such regulations as the Secretary determines necessary to carry out this subtitle.

SEC. 1109. ELIMINATION OF PERMANENT PRICE SUPPORT AUTHORITY.

(a) AGRICULTURAL ADJUSTMENT ACT OF 1938- The Agricultural Adjustment Act of 1938 is amended--

(1) in title III--

(A) in subtitle B--

(i) by striking parts II through V (7 U.S.C. 1326-1351); and

(ii) in part VI, by striking sections 358, 358a, and 358d (7 U.S.C. 1358, 1358a, and 1359); and

(B) by striking subtitle D (7 U.S.C. 1379a-1379j); and

(2) by striking title IV (7 U.S.C. 1401-1407).

(b) AGRICULTURAL ACT OF 1949-

(1) TRANSFER OF CERTAIN SECTIONS- The Agricultural Act of 1949 is amended--

(A) by transferring sections 106, 106A, and 106B (7 U.S.C. 1445, 1445-1, 1445-2) to appear after section 314A of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1314-1) and redesignating the transferred sections as sections 315, 315A, and 315B, respectively;

(B) by transferring sections 111, 201(c), and 204 (7 U.S.C. 1445f, 1446(c), 1446e) to appear after section 304 of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1304) and redesignating the transferred sections as sections 305, 306, and 307, respectively;

(C) by transferring sections 403, 405, 407, 412, and 422 (7 U.S.C. 1423, 1425, 1427, 1429, 1431a) to appear after section 393 (7 U.S.C. 1393) and redesignating the transferred sections as sections 411, 412, 413, 414, and 415, respectively; and

(D) by transferring section 416 (7 U.S.C. 1431) to appear after section 415 of the Agricultural Adjustment Act of 1938 (as transferred and redesignated by subparagraph (C)).

(2) REPEAL- The Agricultural Act of 1949 (7 U.S.C. 1421 et seq.) (as amended by paragraph (1)) is repealed.

(c) CONFORMING AMENDMENTS- The Agricultural Adjustment Act of 1938 is amended--

(1) in section 306 (as transferred and redesignated by subsection (b)(1)(B)), by striking `204' and inserting `307'; and

(2) by striking section 411 (as transferred and redesignated by subsection (b)(1)(C)) and inserting the following:

`TITLE IV--ADMINISTRATION OF LOANS

`SEC. 411. ADJUSTMENTS FOR GRADE, TYPE, QUALITY, LOCATION, AND OTHER FACTORS.

`The Secretary may make such adjustments in the announced loan rate for a commodity as the Secretary considers appropriate to reflect differences in grade, type, quality, location, and other factors.'.

SEC. 1110. EFFECT OF AMENDMENTS.

(a) EFFECT ON PRIOR CROPS- Except as otherwise specifically provided and notwithstanding any other provision of law, this subtitle and the amendments made by this subtitle shall not affect the authority of the Secretary to carry out a price support or production adjustment program for any of the 1991 through 1995 crops of an agricultural commodity established under a provision of law in effect immediately before the date of the enactment of this Act.

(b) LIABILITY- A provision of this subtitle or an amendment made by this subtitle shall not affect the liability of any person under any provision of law as in effect before the date of the enactment of this Act.

Subtitle B--Conservation

SEC. 1201. CONSERVATION.

(a) FUNDING- Subtitle E of title XII of the Food Security Act of 1985 (16 U.S.C. 3841 et seq.) is amended to read as follows:

`Subtitle E--Funding

`SEC. 1241. FUNDING.

`(a) MANDATORY EXPENSES- For each of fiscal years 1996 through 2002, the Secretary shall use the funds of the Commodity Credit Corporation to carry out the programs authorized by--

`(1) subchapter B of chapter 1 of subtitle D (including contracts extended by the Secretary pursuant to section 1437 of the Food, Agriculture, Conservation, and Trade Act of 1990 (Public Law 101-624; 16 U.S.C. 3831 note));

`(2) subchapter C of chapter 1 of subtitle D; and

`(3) chapter 4 of subtitle D.

`(b) LIVESTOCK ENVIRONMENTAL ASSISTANCE PROGRAM- For each of fiscal years 1996 through 2002, $100,000,000 of the funds of the Commodity Credit Corporation shall be available for providing technical assistance, cost-sharing payments, and incentive payments for practices relating to livestock production under the livestock environmental assistance program under chapter 4 of subtitle D.'.

(b) LIVESTOCK ENVIRONMENTAL ASSISTANCE PROGRAM- To carry out the programs funded under the amendment made by subsection (a), subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3830 et seq.) is amended by adding at the end the following:

`CHAPTER 4--LIVESTOCK ENVIRONMENTAL ASSISTANCE PROGRAM

`SEC. 1240. DEFINITIONS.

`In this chapter:

`(1) LAND MANAGEMENT PRACTICE- The term `land management practice' means a site-specific nutrient or manure management, irrigation management, tillage or residue management, grazing management, or other land management practice that the Secretary determines is needed to protect, in the most cost effective manner, water, soil, or related resources from degradation due to livestock production.

`(2) LARGE CONFINED LIVESTOCK OPERATION- The term `large confined livestock operation' means an operation that--

`(A) is a confined animal feeding operation; and

`(B) has more than--

`(i) 55 mature dairy cattle;

`(ii) 10,000 beef cattle;

`(iii) 30,000 laying hens or broilers (if the facility has continuous overflow watering);

`(iv) 100,000 laying hens or broilers (if the facility has a liquid manure system);

`(v) 55,000 turkeys;

`(vi) 15,000 swine; or

`(vii) 10,000 sheep or lambs.

`(3) LIVESTOCK- The term `livestock' means dairy cows, beef cattle, laying hens, broilers, turkeys, swine, sheep, lambs, and such other animals as determined by the Secretary.

`(4) OPERATOR- The term `operator' means a person who is engaged in livestock production (as defined by the Secretary).

`(5) STRUCTURAL PRACTICE- The term `structural practice' means the establishment of an animal waste management facility, terrace, grassed waterway, contour grass strip, filterstrip, or other structural practice that the Secretary determines is needed to protect, in the most cost effective manner, water, soil, or related resources from degradation due to livestock production.

`SEC. 1240A. ESTABLISHMENT AND ADMINISTRATION OF LIVESTOCK ENVIRONMENTAL ASSISTANCE PROGRAM.

`(a) ESTABLISHMENT-

`(1) IN GENERAL- During the 1996 through 2002 fiscal years, the Secretary shall provide technical assistance, cost-sharing payments, and incentive payments to operators who enter into contracts with the Secretary, through a livestock environmental assistance program.

`(2) ELIGIBLE PRACTICES-

`(A) STRUCTURAL PRACTICES- An operator who implements a structural practice shall be eligible for technical assistance or cost-sharing payments, or both.

`(B) LAND MANAGEMENT PRACTICES- An operator who performs a land management practice shall be eligible for technical assistance or incentive payments, or both.

`(3) ELIGIBLE LAND- Assistance under this chapter may be provided with respect to land that is used for livestock production and on which a serious threat to water, soil, or related resources exists, as determined by the Secretary, by reason of the soil types, terrain, climatic, soil, topographic, flood, or saline characteristics, or other factors or natural hazards.

`(4) SELECTION CRITERIA- In providing technical assistance, cost-sharing payments, and incentive payments to operators in a region, watershed, or conservation priority area in which an agricultural operation is located, the Secretary shall consider--

`(A) the significance of the water, soil, and related natural resource problems; and

`(B) the maximization of environmental benefits per dollar expended.

`(b) APPLICATION AND TERM-

`(1) IN GENERAL- A contract between an operator and the Secretary under this chapter may--

`(A) apply to 1 or more structural practices or 1 or more land management practices, or both; and

`(B) have a term of not less than 5, nor more than 10, years, as determined appropriate by the Secretary, depending on the practice or practices that are the basis of the contract.

`(2) DUTIES OF OPERATORS AND SECRETARY- To receive cost sharing or incentive payments, or technical assistance, participating operators shall comply with all terms and conditions of the contract and a plan, as established by the Secretary.

`(c) STRUCTURAL PRACTICES-

`(1) COMPETITIVE OFFER- The Secretary shall administer a competitive offer system for operators proposing to receive cost-sharing payments in exchange for the implementation of 1 or more structural practices by the operator. The competitive offer system shall consist of--

`(A) the submission of a competitive offer by the operator in such manner as the Secretary may prescribe; and

`(B) evaluation of the offer in light of the selection criteria established under subsection (a)(4) and the projected cost of the proposal, as determined by the Secretary.

`(2) CONCURRENCE OF OWNER- If the operator making an offer to implement a structural practice is a tenant of the land involved in agricultural production, for the offer to be acceptable, the operator shall obtain the concurrence of the owner of the land with respect to the offer.

`(d) LAND MANAGEMENT PRACTICES- The Secretary shall establish an application and evaluation process for awarding technical assistance or incentive payments, or both, to an operator in exchange for the performance of 1 or more land management practices by the operator.

`(e) COST-SHARING, INCENTIVE PAYMENTS, AND TECHNICAL ASSISTANCE-

`(1) COST-SHARING PAYMENTS-

`(A) IN GENERAL- The Federal share of cost-sharing payments to an operator proposing to implement 1 or more structural practices shall not be greater than 75 percent of the projected cost of each practice, as determined by the Secretary, taking into consideration any payment received by the operator from a State or local government.

`(B) LIMITATION- An operator of a large confined livestock operation shall not be eligible for cost-sharing payments to construct an animal waste management facility.

`(C) OTHER PAYMENTS- An operator shall not be eligible for cost-sharing payments for structural practices on eligible land under this chapter if the operator receives cost-sharing payments or other benefits for the same land under chapter 1, 2, or 3.

`(2) INCENTIVE PAYMENTS- The Secretary shall make incentive payments in an amount and at a rate determined by the Secretary to be necessary to encourage an operator to perform 1 or more land management practices.

`(3) TECHNICAL ASSISTANCE-

`(A) FUNDING- The Secretary shall allocate funding under this chapter for the provision of technical assistance according to the purpose and projected cost for which the technical assistance is provided for a fiscal year. The allocated amount may vary according to the type of expertise required, quantity of time involved, and other factors as determined appropriate by the Secretary. Funding shall not exceed the projected cost to the Secretary of the technical assistance provided for a fiscal year.

`(B) OTHER AUTHORITIES- The receipt of technical assistance under this chapter shall not affect the eligibility of the operator to receive technical assistance under other authorities of law available to the Secretary.

`(f) LIMITATION ON PAYMENTS-

`(1) IN GENERAL- The total amount of cost-sharing and incentive payments paid to a person under this chapter may not exceed--

`(A) $10,000 for any fiscal year; or

`(B) $50,000 for any multiyear contract.

`(2) REGULATIONS- The Secretary shall issue regulations that are consistent with section 1001 for the purpose of--

`(A) defining the term `person' as used in paragraph (1); and

`(B) prescribing such rules as the Secretary determines necessary to ensure a fair and reasonable application of the limitations established under this subsection.

`(g) REGULATIONS- Not later than 180 days after the effective date of this subsection, the Secretary shall issue regulations to implement the livestock environmental assistance program established under this chapter.'.

(c) CONFORMING AMENDMENTS-

(1) COMMODITY CREDIT CORPORATION CHARTER ACT- Section 5(g) of the Commodity Credit Corporation Charter Act (15 U.S.C. 714c(g)) is amended to read as follows:

`(g) Carry out conservation functions and programs.'.

(2) WETLANDS RESERVE PROGRAM-

(A) IN GENERAL- Section 1237 of the Food Security Act of 1985 (16 U.S.C. 3837) is amended--

(i) in subsection (b)(2)--

(I) by striking `not less' and inserting `not more'; and

(II) by striking `2000' and inserting `2002'; and

(ii) in subsection (c), by striking `2000' and inserting `2002'.

(B) LENGTH OF EASEMENT- Section 1237A(e) of the Food Security Act of 1985 (16 U.S.C. 3837a(e)) is amended by striking paragraph (2) and inserting the following:

`(2) shall be for 15 years, but in no case shall be a permanent easement.'.

(3) CONSERVATION RESERVE PROGRAM-

(A) IN GENERAL- Section 1231(d) of the Food Security Act of 1985 (16 U.S.C. 3831(d)) is amended by striking `total of' and all that follows through the period at the end of the subsection and inserting `total of 36,400,000 acres.'.

(B) OPTIONAL CONTRACT TERMINATION BY PRODUCERS- Section 1235 of the Food Security Act of 1985 (16 U.S.C. 3835) is amended by adding at the end the following:

`(e) TERMINATION BY OWNER OR OPERATOR-

`(1) NOTICE OF TERMINATION- An owner or operator of land subject to a contract entered into under this subchapter may terminate the contract by submitting to the Secretary written notice of the intention of the owner or operator to terminate the contract.

`(2) EFFECTIVE DATE- The contract termination shall take effect 60 days after the date on which the owner or operator submits the written notice under paragraph (1).

`(3) PRORATED RENTAL PAYMENT- If a contract entered into under this subchapter is terminated under this subsection before the end of the fiscal year for which a rental payment is due, the Secretary shall provide a prorated rental payment covering the portion of the fiscal year during which the contract was in effect.

`(4) RENEWED ENROLLMENT- The termination of a contract entered into under this subchapter shall not affect the ability of the owner or operator who requested the termination to submit a subsequent bid to enroll the land that was subject to the contract into the conservation reserve.

`(5) CONSERVATION REQUIREMENTS- If land that was subject to a contract is returned to production of an agricultural commodity, the conservation requirements under subtitles B and C shall apply to the use of the land to the extent that the requirements are similar to those requirements imposed on other similar lands in the area, except that the requirements may not be more onerous that the requirements imposed on other lands.

`(6) REPAYMENT OF COST SHARE- A person who terminates a contract entered into under this subchapter within less than 3 years after entering into the contract shall reimburse the Secretary for any cost share assistance provided under the contract.'.

(C) LIMITATION- Notwithstanding any other provision of law, no new acres shall be enrolled in the conservation reserve program established under subchapter B of chapter 1 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3831 et seq.) in calendar year 1997.

Subtitle C--Agricultural Promotion and Export Programs

SEC. 1301. MARKET PROMOTION PROGRAM.

Effective October 1, 1995, section 211(c)(1) of the Agricultural Trade Act of 1978 (7 U.S.C. 5641(c)(1)) is amended--

(1) by striking `and' after `1991 through 1993,'; and

(2) by striking `through 1997,' and inserting `through 1995, and not more than $100,000,000 for each of fiscal years 1996 through 2002,'.

SEC. 1302. EXPORT ENHANCEMENT PROGRAM.

Effective October 1, 1995, section 301(e)(1) of the Agricultural Trade Act of 1978 (7 U.S.C. 5651(e)(1)) is amended to read as follows:

`(1) IN GENERAL- The Commodity Credit Corporation shall make available to carry out the program established under this section not more than--

`(A) $350,000,000 for fiscal year 1996;

`(B) $350,000,000 for fiscal year 1997;

`(C) $500,000,000 for fiscal year 1998;

`(D) $550,000,000 for fiscal year 1999;

`(E) $579,000,000 for fiscal year 2000;

`(F) $478,000,000 for fiscal year 2001; and

`(G) $478,000,000 for fiscal year 2002.'.

Subtitle D--Miscellaneous

SEC. 1401. CROP INSURANCE.

(a) CATASTROPHIC RISK PROTECTION- Section 508(b) of the Federal Crop Insurance Act (7 U.S.C. 1508(b)) is amended--

(1) in paragraph (4), by adding at the end the following:

`(C) DELIVERY OF COVERAGE-

`(i) IN GENERAL- In full consultation with approved insurance providers, the Secretary may continue to offer catastrophic risk protection in a State (or a portion of a State) through local offices of the Department if the Secretary determines that there is an insufficient number of approved insurance providers operating in the State or portion to adequately provide catastrophic risk protection coverage to producers.

`(ii) COVERAGE BY APPROVED INSURANCE PROVIDERS- To the extent that catastrophic risk protection coverage by approved insurance providers is sufficiently available in a State as determined by the Secretary, only approved insurance providers may provide the coverage in the State.

`(iii) CURRENT POLICIES- Subject to clause (ii), all catastrophic risk protection policies written by local offices of the Department shall be transferred (including all fees collected for the crop year in which the approved insurance provider will assume the policies) to the approved insurance provider for performance of all sales, service, and loss adjustment functions.'; and

(2) in paragraph (7), by striking subparagraph (A) and inserting the following:

`(A) IN GENERAL- Effective for the spring-planted 1996 and subsequent crops, to be eligible for any payment or loan under the Agricultural Market Transition Act, the conservation reserve program, or any benefit described in section 371 of the Consolidated Farm and Rural Development Act (7 U.S.C. 2008f), a person shall--

`(i) obtain at least the catastrophic level of insurance for each crop of economic significance in which the person has an interest; or

`(ii) provide a written waiver to the Secretary that waives any eligibility for emergency crop loss assistance in connection with the crop.'.

(b) COVERAGE OF SEED CROPS- Section 519(a)(2)(B) of the Act (7 U.S.C. 1519(a)(2)(B) is amended by inserting `seed crops,' after `turfgrass sod,'.

SEC. 1402. COLLECTION AND USE OF AGRICULTURAL QUARANTINE AND INSPECTION FEES.

Subsection (a) of section 2509 of the Food, Agriculture, Conservation, and Trade Act of 1990 (21 U.S.C. 136a) is amended to read as follows:

`(a) QUARANTINE AND INSPECTION FEES-

`(1) FEES AUTHORIZED- The Secretary of Agriculture may prescribe and collect fees sufficient--

`(A) to cover the cost of providing agricultural quarantine and inspection services in connection with the arrival at a port in the customs territory of the United States, or the preclearance or preinspection at a site outside the customs territory of the United States, of an international passenger, commercial vessel, commercial aircraft, commercial truck, or railroad car;

`(B) to cover the cost of administering this subsection; and

`(C) through fiscal year 2002, to maintain a reasonable balance in the Agricultural Quarantine Inspection User Fee Account established under paragraph (5).

`(2) LIMITATION- In setting the fees under paragraph (1), the Secretary shall ensure that the amount of the fees are commensurate with the costs of agricultural quarantine and inspection services with respect to the class of persons or entities paying the fees. The costs of the services with respect to passengers as a class includes the costs of related inspections of the aircraft or other vehicle.

`(3) STATUS OF FEES- Fees collected under this subsection by any person on behalf of the Secretary are held in trust for the United States and shall be remitted to the Secretary in such manner and at such times as the Secretary may prescribe.

`(4) LATE PAYMENT PENALTIES- If a person subject to a fee under this subsection fails to pay the fee when due, the Secretary shall assess a late payment penalty, and the overdue fees shall accrue interest, as required by section 3717 of title 31, United States Code.

`(5) AGRICULTURAL QUARANTINE INSPECTION USER FEE ACCOUNT-

`(A) ESTABLISHMENT- There is established in the Treasury of the United States a no-year fund, to be known as the `Agricultural Quarantine Inspection User Fee Account', which shall contain all of the fees collected under this subsection and late payment penalties and interest charges collected under paragraph (4) through fiscal year 2002.

`(B) USE OF ACCOUNT- For each of the fiscal years 1996 through 2002, funds in the Agricultural Quarantine Inspection User Fee Account shall be available, in such amounts as are provided in advance in appropriations Acts, to cover the costs associated with the provision of agricultural quarantine and inspection services and the administration of this subsection. Amounts made available under this subparagraph shall be available until expended.

`(C) EXCESS FEES- Fees and other amounts collected under this subsection in any of the fiscal years 1996 through 2002 in excess of $100,000,000 shall be available for the purposes specified in subparagraph (B) until expended, without further appropriation.

`(6) USE OF AMOUNTS COLLECTED AFTER FISCAL YEAR 2002- After September 30, 2002, the unobligated balance in the Agricultural Quarantine Inspection User Fee Account and fees and other amounts collected under this subsection shall be credited to the Department of Agriculture accounts that incur the costs associated with the provision of agricultural quarantine and inspection services and the administration of this subsection. The fees and other amounts shall remain available to the Secretary until expended without fiscal year limitation.

`(7) STAFF YEARS- The number of full-time equivalent positions in the Department of Agriculture attributable to the provision of agricultural quarantine and inspection services and the administration of this subsection shall not be counted toward the limitation on the total number of full-time equivalent positions in all agencies specified in section 5(b) of the Federal Workforce Restructuring Act of 1994 (Public Law 103-226; 5 U.S.C. 3101 note) or other limitation on the total number of full-time equivalent positions.'.

SEC. 1403. COMMODITY CREDIT CORPORATION INTEREST RATE.

Notwithstanding any other provision of law, the monthly Commodity Credit Corporation interest rate applicable to loans provided for agricultural commodities by the Corporation shall be 100 basis points greater than the rate determined under the applicable interest rate formula in effect on October 1, 1995.

TITLE II--BANKING, HOUSING, AND RELATED PROVISIONS

SEC. 2001. TABLE OF CONTENTS.

The table of contents for this title is as follows:

TITLE II--BANKING, HOUSING, AND RELATED PROVISIONS
Sec. 2001. Table of contents.
TITLE II--BANKING, HOUSING, AND RELATED PROVISIONS
Subtitle A--Financial Institutions
Sec. 2011. Special assessment to capitalize SAIF.
Sec. 2012. Financing Corporation assessments shared proportionally by all insured depository institutions.
Sec. 2013. Merger of BIF and SAIF.
Sec. 2014. Creation of SAIF Special Reserve.
Sec. 2015. Refund of amounts in deposit insurance fund in excess of designated reserve amount.
Sec. 2016. Assessment rates for SAIF members may not be less than assessment rates for BIF members.
Sec. 2017. Assessments authorized only if needed to maintain the reserve ratio of a deposit insurance fund.
Sec. 2018. Limitation on authority of Oversight Board to continue to employ more than 18 officers and employees.
Sec. 2019. Definitions.
Subtitle B--Housing
Sec. 2051. Annual adjustment factors for operating costs only; restraint on rent increases.
Sec. 2052. Foreclosure avoidance and borrower assistance.

TITLE II--BANKING, HOUSING, AND RELATED PROVISIONS

Subtitle A--Financial Institutions

SEC. 2011. SPECIAL ASSESSMENT TO CAPITALIZE SAIF.

(a) IN GENERAL- Except as provided in subsection (f), the Board of Directors shall impose a special assessment on the SAIF-assessable deposits of each insured depository institution at a rate applicable to all such institutions that the Board of Directors, in its sole discretion, determines (after taking into account the adjustments described in subsections (g) through (j)) will cause the Savings Association Insurance Fund to achieve the designated reserve ratio on the first business day of January 1996.

(b) FACTORS TO BE CONSIDERED- In carrying out subsection (a), the Board of Directors shall base its determination on--

(1) the monthly Savings Association Insurance Fund balance most recently calculated;

(2) data on insured deposits reported in the most recent reports of condition filed not later than 70 days before the date of enactment of this Act by insured depository institutions; and

(3) any other factors that the Board of Directors deems appropriate.

(c) DATE OF DETERMINATION- For purposes of subsection (a), the amount of the SAIF-assessable deposits of an insured depository institution shall be determined as of March 31, 1995.

(d) DATE PAYMENT DUE- The special assessment imposed under this section shall be--

(1) due on the first business day of January 1996; and

(2) paid to the Corporation on the later of--

(A) the first business day of January 1996; or

(B) such other date as the Corporation shall prescribe, but not later than 60 days after the date of enactment of this Act.

(e) ASSESSMENT DEPOSITED IN SAIF- Notwithstanding any other provision of law, the proceeds of the special assessment imposed under this section shall be deposited in the Savings Association Insurance Fund.

(f) EXEMPTIONS FOR CERTAIN INSTITUTIONS-

(1) EXEMPTION FOR WEAK INSTITUTIONS- The Board of Directors may, by order, in its sole discretion, exempt any insured depository institution that the Board of Directors determines to be weak, from paying the special assessment imposed under this section if the Board of Directors determines that the exemption would reduce risk to the Savings Association Insurance Fund.

(2) GUIDELINES REQUIRED- Not later than 30 days after the date of enactment of this Act, the Board of Directors shall prescribe guidelines setting forth the criteria that the Board of Directors will use in exempting institutions under paragraph (1). Such guidelines shall be published in the Federal Register.

(3) EXEMPTION FOR CERTAIN NEWLY CHARTERED AND OTHER DEFINED INSTITUTIONS-

(A) IN GENERAL- In addition to the institutions exempted from paying the special assessment under paragraph (1), the Board of Directors shall exempt any insured depository institution from payment of the special assessment if the institution--

(i) was in existence on October 1, 1995, and held no SAIF-assessable deposits prior to January 1, 1993;

(ii) is a Federal savings bank which--

(I) was established de novo in April 1994 in order to acquire the deposits of a savings association which was in default or in danger of default; and

(II) received minority interim capital assistance from the Resolution Trust Corporation under section 21A(w) of the Federal Home Loan Bank Act in connection with the acquisition of any such savings association; or

(iii) is a savings association, the deposits of which are insured by the Savings Association Insurance Fund, which--

(I) prior to January 1, 1987, was chartered as a Federal savings bank insured by the Federal Savings and Loan Insurance Corporation for the purpose of acquiring all or substantially all of the assets and assuming all or substantially all of the deposit liabilities of a national bank in a transaction consummated after July 1, 1986; and

(II) as of the date of that transaction, had assets of less than $150,000,000.

(B) DEFINITION- For purposes of this paragraph, an institution shall be deemed to have held SAIF-assessable deposits prior to January 1, 1993, if--

(i) it directly held SAIF-assessable insured deposits prior to that date; or

(ii) it succeeded to, acquired, purchased, or otherwise holds any SAIF-assessable deposits as of the date of enactment of this Act that were SAIF-assessable deposits prior to January 1, 1993.

(4) EXEMPT INSTITUTIONS REQUIRED TO PAY ASSESSMENTS AT FORMER RATES-

(A) PAYMENTS TO SAIF AND DIF- Any insured depository institution that the Board of Directors exempts under this subsection from paying the special assessment imposed under this section shall pay semiannual assessments--

(i) during calendar years 1996 and 1997, into the Savings Association Insurance Fund, based on SAIF-assessable deposits of that institution, at assessment rates calculated under the schedule in effect for Savings Association Insurance Fund members on June 30, 1995; and

(ii) during calendar years 1998 and 1999--

(I) into the Deposit Insurance Fund, based on SAIF-assessable deposits of that institution as of December 31, 1997, at assessment rates calculated under the schedule in effect for Savings Association Insurance Fund members on June 30, 1995; or

(II) in accordance with clause (i), if the Bank Insurance Fund and the Savings Association Insurance Fund are not merged into the Deposit Insurance Fund.

(B) OPTIONAL PRO RATA PAYMENT OF SPECIAL ASSESSMENT- This paragraph shall not apply with respect to any insured depository institution (or successor insured depository institution) that has paid, during any calendar year from 1997 through 1999, upon such terms as the Corporation may announce, an amount equal to the product of--

(i) 12.5 percent of the special assessment that the institution would have been required to pay under subsection (a), if the Board of Directors had not exempted the institution; and

(ii) the number of full semiannual periods remaining between the date of the payment and December 31, 1999.

(g) SPECIAL ELECTION FOR CERTAIN INSTITUTIONS FACING HARDSHIP AS A RESULT OF THE SPECIAL ASSESSMENT-

(1) ELECTION AUTHORIZED- If--

(A) an insured depository institution, or any depository institution holding company which, directly or indirectly, controls such institution, is subject to terms or covenants in any debt obligation or preferred stock outstanding on September 13, 1995; and

(B) the payment of the special assessment under subsection (a) would pose a significant risk of causing such depository institution or holding company to default or violate any such term or covenant,

the depository institution may elect, with the approval of the Corporation, to pay such special assessment in accordance with paragraphs (2) and (3) in lieu of paying such assessment in the manner required under subsection (a).

(2) 1ST ASSESSMENT- An insured depository institution which makes an election under paragraph (1) shall pay an assessment of 50 percent of the amount of the special assessment that would otherwise apply under subsection (a), by the date on which such special assessment is otherwise due under subsection (d).

(3) 2D ASSESSMENT- An insured depository institution which makes an election under paragraph (1) shall pay a 2d assessment, by the date established by the Board of Directors in accordance with paragraph (4), in an amount equal to the product of 51 percent of the rate determined by the Board of Directors under subsection (a) for determining the amount of the special assessment and the SAIF-assessable deposits of the institution on March 31, 1996, or such other date in calendar year 1996 as the Board of Directors determines to be appropriate.

(4) DUE DATE OF 2D ASSESSMENT- The date established by the Board of Directors for the payment of the assessment under paragraph (3) by a depository institution shall be the earliest practicable date which the Board of Directors determines to be appropriate, which is at least 15 days after the date used by the Board of Directors under paragraph (3).

(5) SUPPLEMENTAL SPECIAL ASSESSMENT- An insured depository institution which makes an election under paragraph (1) shall pay a supplemental special assessment, at the same time the payment under paragraph (3) is made, in an amount equal to the product of--

(A) 50 percent of the rate determined by the Board of Directors under subsection (a) for determining the amount of the special assessment; and

(B) 95 percent of the amount by which the SAIF-assessable deposits used by the Board of Directors for determining the amount of the 1st assessment under paragraph (2) exceeds, if any, the SAIF-assessable deposits used by the Board for determining the amount of the 2d assessment under paragraph (3).

(h) ADJUSTMENT OF SPECIAL ASSESSMENT FOR CERTAIN BANK INSURANCE FUND MEMBER BANKS-

(1) IN GENERAL- For purposes of computing the special assessment imposed under this section with respect to a Bank Insurance Fund member bank, the amount of any deposits of any insured depository institution which section 5(d)(3) of the Federal Deposit Insurance Act treats as insured by the Savings Association Insurance Fund shall be reduced by 20 percent--

(A) if the adjusted attributable deposit amount of the Bank Insurance Fund member bank is less than 50 percent of the total domestic deposits of that member bank as of June 30, 1995; or

(B) if, as of June 30, 1995, the Bank Insurance Fund member--

(i) had an adjusted attributable deposit amount equal to less than 75 percent of the total assessable deposits of that member bank;

(ii) had total assessable deposits greater than $5,000,000,000; and

(iii) was owned or controlled by a bank holding company that owned or controlled insured depository institutions having an aggregate amount of deposits insured or treated as insured by the Bank Insurance Fund greater than the aggregate amount of deposits insured or treated as insured by the Savings Association Insurance Fund.

(2) ADJUSTED ATTRIBUTABLE DEPOSIT AMOUNT- For purposes of this subsection, the `adjusted attributable deposit amount' shall be determined in accordance with section 5(d)(3)(C) of the Federal Deposit Insurance Act.

(i) ADJUSTMENT TO THE ADJUSTED ATTRIBUTABLE DEPOSIT AMOUNT FOR CERTAIN BANK INSURANCE FUND MEMBER BANKS- Section 5(d)(3) of the Federal Deposit Insurance Act (12 U.S.C. 1815(d)(3)) is amended--

(1) in subparagraph (C), by striking `The adjusted attributable deposit amount' and inserting `Except as provided in subparagraph (K), the adjusted attributable deposit amount'; and

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

`(K) ADJUSTMENT OF ADJUSTED ATTRIBUTABLE DEPOSIT AMOUNT- The amount determined under subparagraph (C)(i) for deposits acquired by March 31, 1995, shall be reduced by 20 percent for purposes of computing the adjusted attributable deposit amount for the payment of any assessment for any semiannual period after December 31, 1995 (other than the special assessment imposed under section 2011(a) of the Balanced Budget Act of 1995), for a Bank Insurance Fund member bank that, as of June 30, 1995--

`(i) had an adjusted attributable deposit amount that was less than 50 percent of the total deposits of that member bank; or

`(ii)(I) had an adjusted attributable deposit amount equal to less than 75 percent of the total assessable deposits of that member bank;

`(II) had total assessable deposits greater than $5,000,000,000; and

`(III) was owned or controlled by a bank holding company that owned or controlled insured depository institutions having an aggregate amount of deposits insured or treated as insured by the Bank Insurance Fund greater than the aggregate amount of deposits insured or treated as insured by the Savings Association Insurance Fund.'.

(j) ADJUSTMENT OF SPECIAL ASSESSMENT FOR CERTAIN SAVINGS ASSOCIATIONS-

(1) SPECIAL ASSESSMENT REDUCTION- For purposes of computing the special assessment imposed under this section, in the case of any converted association, the amount of any deposits of such association which were insured by the Savings Association Insurance Fund as of March 31, 1995, shall be reduced by 20 percent.

(2) CONVERTED ASSOCIATION- For purposes of this subsection, the term `converted association' means--

(A) any Federal savings association--

(i) that is a member of the Savings Association Insurance Fund and that has deposits subject to assessment by that fund which did not exceed $4,000,000,000, as of March 31, 1995; and

(ii) that had been, or is a successor by merger, acquisition, or otherwise to an institution that had been, a State savings bank, the deposits of which were insured by the Federal Deposit Insurance Corporation prior to August 9, 1989, that converted to a Federal savings association pursuant to section 5(i) of the Home Owners' Loan Act prior to January 1, 1985;

(B) a State depository institution that is a member of the Savings Association Insurance Fund that had been a State savings bank prior to October 15, 1982, and was a Federal savings association on August 9, 1989;

(C) an insured bank that--

(i) was established de novo in order to acquire the deposits of a savings association in default or in danger of default;

(ii) did not open for business before acquiring the deposits of such savings association; and

(iii) was a Savings Association Insurance Fund member as of the date of enactment of this Act; and

(D) an insured bank that--

(i) resulted from a savings association before December 19, 1991, in accordance with section 5(d)(2)(G) of the Federal Deposit Insurance Act; and

(ii) had an increase in its capital in conjunction with the conversion in an amount equal to more than 75 percent of the capital of the institution on the day before the date of the conversion.

SEC. 2012. FINANCING CORPORATION ASSESSMENTS SHARED PROPORTIONALLY BY ALL INSURED DEPOSITORY INSTITUTIONS.

(a) IN GENERAL- Section 21 of the Federal Home Loan Bank Act (12 U.S.C. 1441) is amended--

(1) in subsection (f)(2)--

(A) in the matter immediately preceding subparagraph (A)--

(i) by striking `Savings Association Insurance Fund member' and inserting `insured depository institution'; and

(ii) by striking `members' and inserting `institutions'; and

(B) by striking `, except that--' and all that follows through the end of the paragraph and inserting `, except that--

`(A) the Financing Corporation shall have first priority to make the assessment; and

`(B) no limitation under clause (i) or (iii) of section 7(b)(2)(A) of the Federal Deposit Insurance Act shall apply for purposes of this paragraph.'; and

(2) in subsection (k)--

(A) by striking `section--' and inserting `section, the following definitions shall apply:';

(B) by striking paragraph (1);

(C) by redesignating paragraphs (2) and (3) as paragraphs (1) and (2), respectively; and

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

`(3) INSURED DEPOSITORY INSTITUTION- The term `insured depository institution' has the same meaning as in section 3 of the Federal Deposit Insurance Act.'.

(b) CONFORMING AMENDMENT- Section 7(b)(2) of the Federal Deposit Insurance Act (12 U.S.C. 1817(b)(2)) is amended by striking subparagraph (D).

(c) EFFECTIVE DATE- This section and the amendments made by this section shall become effective on January 1, 1996.

SEC. 2013. MERGER OF BIF AND SAIF.

(a) IN GENERAL-

(1) MERGER- The Bank Insurance Fund and the Savings Association Insurance Fund shall be merged into the Deposit Insurance Fund established by section 11(a)(4) of the Federal Deposit Insurance Act, as amended by this section.

(2) DISPOSITION OF ASSETS AND LIABILITIES- All assets and liabilities of the Bank Insurance Fund and the Savings Association Insurance Fund shall be transferred to the Deposit Insurance Fund.

(3) NO SEPARATE EXISTENCE- The separate existence of the Bank Insurance Fund and the Savings Association Insurance Fund shall cease.

(b) SPECIAL RESERVE OF THE DEPOSIT INSURANCE FUND-

(1) IN GENERAL- Immediately before the merger of the Bank Insurance Fund and the Savings Association Insurance Fund, if the reserve ratio of the Savings Association Insurance Fund exceeds the designated reserve ratio, the amount by which that reserve ratio exceeds the designated reserve ratio shall be placed in the Special Reserve of the Deposit Insurance Fund, established under section 11(a)(5) of the Federal Deposit Insurance Act, as amended by this section.

(2) DEFINITION- For purposes of this subsection, the term `reserve ratio' means the ratio of the net worth of the Savings Association Insurance Fund to aggregate estimated insured deposits held in all Savings Association Insurance Fund members.

(c) EFFECTIVE DATE- This section and the amendments made by this section shall become effective on January 1, 1998, if no insured depository institution is a savings association on that date.

(d) TECHNICAL AND CONFORMING AMENDMENTS-

(1) DEPOSIT INSURANCE FUND- Section 11(a)(4) of the Federal Deposit Insurance Act (12 U.S.C. 1821(a)(4)) is amended--

(A) by redesignating subparagraph (B) as subparagraph (C);

(B) by striking subparagraph (A) and inserting the following:

`(A) ESTABLISHMENT- There is established the Deposit Insurance Fund, which the Corporation shall--

`(i) maintain and administer;

`(ii) use to carry out its insurance purposes in the manner provided by this subsection; and

`(iii) invest in accordance with section 13(a).

`(B) USES- The Deposit Insurance Fund shall be available to the Corporation for use with respect to Deposit Insurance Fund members.'; and

(C) by striking `(4) GENERAL PROVISIONS RELATING TO FUNDS- ' and inserting the following:

`(4) ESTABLISHMENT OF THE DEPOSIT INSURANCE FUND- '.

(2) OTHER REFERENCES- Section 11(a)(4)(C) of the Federal Deposit Insurance Act (12 U.S.C. 1821(a)(4)(C), as redesignated by paragraph (1) of this subsection) is amended by striking `Bank Insurance Fund and the Savings Association Insurance Fund' and inserting `Deposit Insurance Fund'.

(3) DEPOSITS INTO FUND- Section 11(a)(4) of the Federal Deposit Insurance Act (12 U.S.C. 1821(a)(4)) is amended by adding at the end the following new subparagraph:

`(D) DEPOSITS- All amounts assessed against insured depository institutions by the Corporation shall be deposited in the Deposit Insurance Fund.'.

(4) SPECIAL RESERVE OF DEPOSITS- Section 11(a)(5) of the Federal Deposit Insurance Act (12 U.S.C. 1821(a)(5)) is amended to read as follows:

`(5) SPECIAL RESERVE OF DEPOSIT INSURANCE FUND-

`(A) ESTABLISHMENT-

`(i) IN GENERAL- There is established a Special Reserve of the Deposit Insurance Fund, which shall be administered by the Corporation and shall be invested in accordance with section 13(a).

`(ii) LIMITATION- The Corporation shall not provide any assessment credit, refund, or other payment from any amount in the Special Reserve.

`(B) EMERGENCY USE OF SPECIAL RESERVE- Notwithstanding subparagraph (A)(ii), the Corporation may, in its sole discretion, transfer amounts from the Special Reserve to the Deposit Insurance Fund, for the purposes set forth in paragraph (4), only if--

`(i) the reserve ratio of the Deposit Insurance Fund is less than 50 percent of the designated reserve ratio; and

`(ii) the Corporation expects the reserve ratio of the Deposit Insurance Fund to remain at less than 50 percent of the designated reserve ratio for each of the next 4 calendar quarters.

`(C) EXCLUSION OF SPECIAL RESERVE IN CALCULATING RESERVE RATIO- Notwithstanding any other provision of law, any amounts in the Special Reserve shall be excluded in calculating the reserve ratio of the Deposit Insurance Fund under section 7.'.

(5) FEDERAL HOME LOAN BANK ACT- Section 21B(f)(2)(C)(ii) of the Federal Home Loan Bank Act (12 U.S.C. 1441b(f)(2)(C)(ii)) is amended--

(A) in subclause (I), by striking `to Savings Associations Insurance Fund members' and inserting `to insured depository institutions, and their successors, which were Savings Association Insurance Fund members on September 1, 1995'; and

(B) in subclause (II), by striking `to Savings Associations Insurance Fund members' and inserting `to insured depository institutions, and their successors, which were Savings Association Insurance Fund members on September 1, 1995'.

(6) REPEALS-

(A) SECTION 3- Section 3(y) of the Federal Deposit Insurance Act (12 U.S.C. 1813(y)) is amended to read as follows:

`(y) DEFINITIONS RELATING TO THE DEPOSIT INSURANCE FUND- The term

`(1) DEPOSIT INSURANCE FUND- The term `Deposit Insurance Fund' means the fund established under section 11(a)(4).

`(2) RESERVE RATIO- The term `reserve ratio' means the ratio of the net worth of the Deposit Insurance Fund to aggregate estimated insured deposits held in all insured depository institutions.

`(3) DESIGNATED RESERVE RATIO- The designated reserve ratio of the Deposit Insurance Fund for each year shall be--

`(A) 1.25 percent of estimated insured deposits; or

`(B) a higher percentage of estimated insured deposits that the Board of Directors determines to be justified for that year by circumstances raising a significant risk of substantial future losses to the fund.

(B) SECTION 7- Section 7 of the Federal Deposit Insurance Act (12 U.S.C. 1817) is amended--

(i) by striking subsection (l);

(ii) by redesignating subsections (m) and (n) as subsections (l) and (m), respectively;

(iii) in subsection (b)(2), by striking subparagraphs (B) and (F), and by redesignating subparagraphs (C), (E), (G), and (H) as subparagraphs (B) through (E), respectively.

(C) SECTION 11- Section 11(a) of the Federal Deposit Insurance Act (12 U.S.C. 1821(a)) is amended--

(i) by striking paragraphs (6) and (7); and

(ii) by redesignating paragraph (8) as paragraph (6).

(7) SECTION 5136 OF THE REVISED STATUTES- Paragraph Eleventh of section 5136 of the Revised Statutes (12 U.S.C. 24) is amended in the fifth sentence, by striking `affected deposit insurance fund' and inserting `Deposit Insurance Fund'.

(8) INVESTMENTS PROMOTING PUBLIC WELFARE; LIMITATIONS ON AGGREGATE INVESTMENTS- The 23d undesignated paragraph of section 9 of the Federal Reserve Act (12 U.S.C. 338a) is amended in the fourth sentence, by striking `affected deposit insurance fund' and inserting `Deposit Insurance Fund'.

(9) ADVANCES TO CRITICALLY UNDERCAPITALIZED DEPOSITORY INSTITUTIONS- Section 10B(b)(3)(A)(ii) of the Federal Reserve Act (12 U.S.C. 347b(b)(3)(A)(ii)) is amended by striking `any deposit insurance fund in' and inserting `the Deposit Insurance Fund of'.

(10) AMENDMENTS TO THE BALANCED BUDGET AND EMERGENCY DEFICIT CONTROL ACT OF 1985- Section 255(g)(1)(A) of the Balanced Budget and Emergency Deficit Control Act of 1985 (2 U.S.C. 905(g)(1)(A)) is amended--

(A) by striking `Bank Insurance Fund' and inserting `Deposit Insurance Fund'; and

(B) by striking `Federal Deposit Insurance Corporation, Savings Association Insurance Fund;'.

(11) FURTHER AMENDMENTS TO THE FEDERAL HOME LOAN BANK ACT- The Federal Home Loan Bank Act (12 U.S.C. 1421 et seq.) is amended--

(A) in section 11(k) (12 U.S.C. 1431(k))--

(i) in the subsection heading, by striking `SAIF' and inserting `THE DEPOSIT INSURANCE FUND'; and

(ii) by striking `Savings Association Insurance Fund' each place such term appears and inserting `Deposit Insurance Fund';

(B) in section 21A(b)(4)(B) (12 U.S.C. 1441a(b)(4)(B)), by striking `affected deposit insurance fund' and inserting `Deposit Insurance Fund';

(C) in section 21A(b)(6)(B) (12 U.S.C. 1441a(b)(6)(B))--

(i) in the subparagraph heading, by striking `SAIF-INSURED BANKS' and inserting `CHARTER CONVERSIONS'; and

(ii) by striking `Savings Association Insurance Fund member' and inserting `savings association';

(D) in section 21A(b)(10)(A)(iv)(II) (12 U.S.C. 1441a(b)(10)(A)(iv)(II)), by striking `Savings Association Insurance Fund' and inserting `Deposit Insurance Fund';

(E) in section 21B(e) (12 U.S.C. 1441b(e))--

(i) in paragraph (5), by inserting `as of the date of funding' after `Savings Association Insurance Fund members' each place such term appears;

(ii) by striking paragraph (7); and

(iii) by redesignating paragraph (8) as paragraph (7); and

(F) in section 21B(k) (12 U.S.C. 1441b(k))--

(i) by striking paragraph (8); and

(ii) by redesignating paragraphs (9) and (10) as paragraphs (8) and (9), respectively.

(12) AMENDMENTS TO THE HOME OWNERS' LOAN ACT- The Home Owners' Loan Act (12 U.S.C. 1461 et seq.) is amended--

(A) in section 5 (12 U.S.C. 1464)--

(i) in subsection (c)(5)(A), by striking `that is a member of the Bank Insurance Fund';

(ii) in subsection (c)(6), by striking `As used in this subsection--' and inserting `For purposes of this subsection, the following definitions shall apply:';

(iii) in subsection (o)(1), by striking `that is a Bank Insurance Fund member';

(iv) in subsection (o)(2)(A), by striking `a Bank Insurance Fund member until such time as it changes its status to a Savings Association Insurance Fund member' and inserting `insured by the Deposit Insurance Fund';

(v) in subsection (t)(5)(D)(iii)(II), by striking `affected deposit insurance fund' and inserting `Deposit Insurance Fund';

(vi) in subsection (t)(7)(C)(i)(I), by striking `affected deposit insurance fund' and inserting `Deposit Insurance Fund'; and

(vii) in subsection (v)(2)(A)(i), by striking `, the Savings Association Insurance Fund' and inserting `or the Deposit Insurance Fund'; and

(B) in section 10 (12 U.S.C. 1467a)--

(i) in subsection (e)(1)(A)(iii)(VII), by adding `or' at the end;

(ii) in subsection (e)(1)(A)(iv), by adding `and' at the end;

(iii) in subsection (e)(1)(B), by striking `Savings Association Insurance Fund or Bank Insurance Fund' and inserting `Deposit Insurance Fund';

(iv) in subsection (e)(2), by striking `Savings Association Insurance Fund or the Bank Insurance Fund' and inserting `Deposit Insurance Fund'; and

(v) in subsection (m)(3), by striking subparagraph (E), and by redesignating subparagraphs (F), (G), and (H) as subparagraphs (E), (F), and (G), respectively.

(13) AMENDMENTS TO THE NATIONAL HOUSING ACT- The National Housing Act (12 U.S.C. 1701 et seq.) is amended--

(A) in section 317(b)(1)(B) (12 U.S.C. 1723i(b)(1)(B)), by striking `Bank Insurance Fund for banks or through the Savings Association Insurance Fund for savings associations' and inserting `Deposit Insurance Fund'; and

(B) in section 526(b)(1)(B)(ii) (12 U.S.C. 1735f-14(b)(1)(B)(ii)), by striking `Bank Insurance Fund for banks and through the Savings Association Insurance Fund for savings associations' and inserting `Deposit Insurance Fund'.

(14) FURTHER AMENDMENTS TO THE FEDERAL DEPOSIT INSURANCE ACT- The Federal Deposit Insurance Act (12 U.S.C. 1811 et seq.) is amended--

(A) in section 3(a)(1) (12 U.S.C. 1813(a)(1)), by striking subparagraph (B) and inserting the following:

`(B) includes any former savings association.';

(B) in section 5(b)(5) (12 U.S.C. 1815(b)(5)), by striking `the Bank Insurance Fund or the Savings Association Insurance Fund;' and inserting `Deposit Insurance Fund,';

(C) in section 5(d) (12 U.S.C. 1815(d)), by striking paragraphs (2) and (3);

(D) in section 5(d)(1) (12 U.S.C. 1815(d)(1))--

(i) in subparagraph (A), by striking `reserve ratios in the Bank Insurance Fund and the Savings Association Insurance Fund' and inserting `the reserve ratio of the Deposit Insurance Fund';

(ii) by striking subparagraph (B) and inserting the following:

`(2) FEE CREDITED TO THE DEPOSIT INSURANCE FUND- The fee paid by the depository institution under paragraph (1) shall be credited to the Deposit Insurance Fund.';

(iii) by striking `(1) UNINSURED INSTITUTIONS- '; and

(iv) by redesignating subparagraphs (A) and (C) as paragraphs (1) and (3), respectively, and moving the margins 2 ems to the left;

(E) in section 5(e) (12 U.S.C. 1815(e))--

(i) in paragraph (5)(A), by striking `Bank Insurance Fund or the Savings Association Insurance Fund' and inserting `Deposit Insurance Fund';

(ii) by striking paragraph (6); and

(iii) by redesignating paragraphs (7), (8), and (9) as paragraphs (6), (7), and (8), respectively;

(F) in section 6(5) (12 U.S.C. 1816(5)), by striking `Bank Insurance Fund or the Savings Association Insurance Fund' and inserting `Deposit Insurance Fund';

(G) in section 7(b) (12 U.S.C. 1817(b))--

(i) in paragraph (1)(D), by striking `each deposit insurance fund' and inserting `the Deposit Insurance Fund';

(ii) in clauses (i)(I) and (iv) of paragraph (2)(A), by striking `each deposit insurance fund' each place such term appears and inserting `the Deposit Insurance Fund';

(iii) in paragraph (2)(A)(iii), by striking `a deposit insurance fund' and inserting `the Deposit Insurance Fund';

(iv) by striking clause (iv) of paragagraph (2)(A);

(v) in paragraph (2)(C) (as redesignated by paragraph (6)(B) of this subsection)--

(I) by striking `any deposit insurance fund' and inserting `the Deposit Insurance Fund'; and

(II) by striking `that fund' each place such term appears and inserting `the Deposit Insurance Fund';

(vi) in paragraph (2)(D) (as redesignated by paragraph (6)(B) of this subsection)--

(I) in the subparagraph heading, by striking `FUNDS ACHIEVE' and inserting `FUND ACHIEVES'; and

(II) by striking `a deposit insurance fund' and inserting `the Deposit Insurance Fund';

(vii) in paragraph (3)--

(I) in the paragraph heading, by striking `FUNDS' and inserting `FUND';

(II) by striking `that fund' each place such term appears and inserting `the Deposit Insurance Fund';

(III) in subparagraph (A), by striking `Except as provided in paragraph (2)(F), if' and inserting `If';

(IV) in subparagraph (A), by striking `any deposit insurance fund' and inserting `the Deposit Insurance Fund'; and

(V) by striking subparagraphs (C) and (D) and inserting the following:

`(C) AMENDING SCHEDULE- The Corporation may, by regulation, amend a schedule promulgated under subparagraph (B).'; and

(viii) in paragraph (6)--

(I) by striking `any such assessment' and inserting `any such assessment is necessary';

(II) by striking `(A) is necessary--';

(III) by striking subparagraph (B);

(IV) by redesignating clauses (i), (ii), and (iii) as subparagraphs (A), (B), and (C), respectively, and moving the margins 2 ems to the left; and

(V) in subparagraph (C) (as redesignated), by striking `; and' and inserting a period;

(H) in section 11(f)(1) (12 U.S.C. 1821(f)(1)), by striking `, except that--' and all that follows through the end of the paragraph and inserting a period;

(I) in section 11(i)(3) (12 U.S.C. 1821(i)(3))--

(i) by striking subparagraph (B);

(ii) by redesignating subparagraph (C) as subparagraph (B); and

(iii) in subparagraph (B) (as redesignated), by striking `subparagraphs (A) and (B)' and inserting `subparagraph (A)';

(J) in section 11A(a) (12 U.S.C. 1821a(a))--

(i) in paragraph (2), by striking `LIABILITIES- ' and all that follows through `Except' and inserting `LIABILITIES- Except';

(ii) by striking paragraph (2)(B); and

(iii) in paragraph (3), by striking `the Bank Insurance Fund, the Savings Association Insurance Fund,' and inserting `the Deposit Insurance Fund';

(K) in section 11A(b) (12 U.S.C. 1821a(b)), by striking paragraph (4);

(L) in section 11A(f) (12 U.S.C. 1821a(f)), by striking `Savings Association Insurance Fund' and inserting `Deposit Insurance Fund';

(M) in section 13 (12 U.S.C. 1823)--

(i) in subsection (a)(1), by striking `Bank Insurance Fund, the Savings Association Insurance Fund,' and inserting `Deposit Insurance Fund, the Special Reserve of the Deposit Insurance Fund,';

(ii) in subsection (c)(4)(E)--

(I) in the subparagraph heading, by striking `FUNDS' and inserting `FUND'; and

(II) in clause (i), by striking `any insurance fund' and inserting `the Deposit Insurance Fund';

(iii) in subsection (c)(4)(G)(ii)--

(I) by striking `appropriate insurance fund' and inserting `Deposit Insurance Fund';

(II) by striking `the members of the insurance fund (of which such institution is a member)' and inserting `insured depository institutions';

(III) by striking `each member's' and inserting `each insured depository institution's'; and

(IV) by striking `the member's' each place such term appears and inserting `the institution's';

(iv) in subsection (c), by striking paragraph (11);

(v) in subsection (h), by striking `Bank Insurance Fund' and inserting `Deposit Insurance Fund';

(vi) in subsection (k)(4)(B)(i), by striking `Savings Association Insurance Fund' and inserting `Deposit Insurance Fund'; and

(vii) in subsection (k)(5)(A), by striking `Savings Association Insurance Fund' and inserting `Deposit Insurance Fund';

(N) in section 14(a) (12 U.S.C. 1824(a)) in the fifth sentence--

(i) by striking `Bank Insurance Fund or the Savings Association Insurance Fund' and inserting `Deposit Insurance Fund'; and

(ii) by striking `each such fund' and inserting `the Deposit Insurance Fund';

(O) in section 14(b) (12 U.S.C. 1824(b)), by striking `Bank Insurance Fund or Savings Association Insurance Fund' and inserting `Deposit Insurance Fund';

(P) in section 14(c) (12 U.S.C. 1824(c)), by striking paragraph (3);

(Q) in section 14(d) (12 U.S.C. 1824(d))--

(i) by striking `BIF' each place such term appears and inserting `DIF'; and

(ii) by striking `Bank Insurance Fund' each place such term appears and inserting `Deposit Insurance Fund';

(R) in section 15(c)(5) (12 U.S.C. 1825(c)(5))--

(i) by striking `the Bank Insurance Fund or Savings Association Insurance Fund, respectively' each place such term appears and inserting `the Deposit Insurance Fund'; and

(ii) in subparagraph (B), by striking `the Bank Insurance Fund or the Savings Association Insurance Fund, respectively' and inserting `the Deposit Insurance Fund';

(S) in section 17(a) (12 U.S.C. 1827(a))--

(i) in the subsection heading, by striking `BIF, SAIF,' and inserting `THE DEPOSIT INSURANCE FUND'; and

(ii) in paragraph (1), by striking `the Bank Insurance Fund, the Savings Association Insurance Fund,' each place such term appears and inserting `the Deposit Insurance Fund';

(T) in section 17(d) (12 U.S.C. 1827(d)), by striking `the Bank Insurance Fund, the Savings Association Insurance Fund,' each place such term appears and inserting `the Deposit Insurance Fund';

(U) in section 18(m)(3) (12 U.S.C. 1828(m)(3))--

(i) by striking `Savings Association Insurance Fund' each place such term appears and inserting `Deposit Insurance Fund'; and

(ii) in subparagraph (C), by striking `or the Bank Insurance Fund';

(V) in section 18(p) (12 U.S.C. 1828(p)), by striking `deposit insurance funds' and inserting `Deposit Insurance Fund';

(W) in section 24 (12 U.S.C. 1831a) in subsections (a)(1) and (d)(1)(A), by striking `appropriate deposit insurance fund' each place such term appears and inserting `Deposit Insurance Fund';

(X) in section 28 (12 U.S.C. 1831e), by striking `affected deposit insurance fund' each place such term appears and inserting `Deposit Insurance Fund';

(Y) by striking section 31 (12 U.S.C. 1831h);

(Z) in section 36(i)(3) (12 U.S.C. 1831m(i)(3)) by striking `affected deposit insurance fund' and inserting `Deposit Insurance Fund';

(AA) in section 38(a) (12 U.S.C. 1831o(a)) in the subsection heading, by striking `FUNDS' and inserting `FUND';

(BB) in section 38(k) (12 U.S.C. 1831o(k))--

(i) in paragraph (1), by striking `a deposit insurance fund' and inserting `the Deposit Insurance Fund'; and

(ii) in paragraph (2)(A)--

(I) by striking `A deposit insurance fund' and inserting `The Deposit Insurance Fund'; and

(II) by striking `the deposit insurance fund's outlays' and inserting `the outlays of the Deposit Insurance Fund'; and

(CC) in section 38(o) (12 U.S.C. 1831o(o))--

(i) by striking `ASSOCIATIONS- ' and all that follows through `Subsections (e)(2)' and inserting `ASSOCIATIONS- Subsections (e)(2)';

(ii) by redesignating subparagraphs (A), (B), and (C) as paragraphs (1), (2), and (3), respectively, and moving the margins 2 ems to the left; and

(iii) in paragraph (1) (as redesignated), by redesignating clauses (i) and (ii) as subparagraphs (A) and (B), respectively, and moving the margins 2 ems to the left.

(15) AMENDMENTS TO THE FINANCIAL INSTITUTIONS REFORM, RECOVERY, AND ENFORCEMENT ACT OF 1989- The Financial Institutions Reform, Recovery, and Enforcement Act (Public Law 101-73; 103 Stat. 183) is amended--

(A) in section 951(b)(3)(B) (12 U.S.C. 1833a(b)(3)(B)), by striking `Bank Insurance Fund, the Savings Association Insurance Fund,' and inserting `Deposit Insurance Fund'; and

(B) in section 1112(c)(1)(B) (12 U.S.C. 3341(c)(1)(B)), by striking `Bank Insurance Fund, the Savings Association Insurance Fund,' and inserting `Deposit Insurance Fund'.

(16) AMENDMENT TO THE BANK ENTERPRISE ACT OF 1991- Section 232(a)(1) of the Bank Enterprise Act of 1991 (12 U.S.C. 1834(a)(1)) is amended by striking `section 7(b)(2)(H)' and inserting `section 7(b)(2)(G)'.

(17) AMENDMENT TO THE BANK HOLDING COMPANY ACT- Section 2(j)(2) of the Bank Holding Company Act of 1956 (12 U.S.C. 1841(j)(2)) is amended by striking `Savings Association Insurance Fund' and inserting `Deposit Insurance Fund'.

SEC. 2014. CREATION OF SAIF SPECIAL RESERVE.

Section 11(a)(6) of the Federal Deposit Insurance Act (12 U.S.C. 1821(a)(6)) is amended by adding at the end the following new subparagraph:

`(L) ESTABLISHMENT OF SAIF SPECIAL RESERVE-

`(i) ESTABLISHMENT- If, on January 1, 1998, the reserve ratio of the Savings Association Insurance Fund exceeds the designated reserve ratio, there is established a Special Reserve of the Savings Association Insurance Fund, which shall be administered by the Corporation and shall be invested in accordance with section 13(a).

`(ii) AMOUNTS IN SPECIAL RESERVE- If, on January 1, 1998, the reserve ratio of the Savings Association Insurance Fund exceeds the designated reserve ratio, the amount by which the reserve ratio exceeds the designated reserve ratio shall be placed in the Special Reserve of the Savings Association Insurance Fund established by clause (i).

`(iii) LIMITATION- The Corporation shall not provide any assessment credit, refund, or other payment from any amount in the Special Reserve of the Savings Association Insurance Fund.

`(iv) EMERGENCY USE OF SPECIAL RESERVE- Notwithstanding clause (iii), the Corporation may, in its sole discretion, transfer amounts from the Special Reserve of the Savings Association Insurance Fund to the Savings Association Insurance Fund for the purposes set forth in paragraph (4), only if--

`(I) the reserve ratio of the Savings Association Insurance Fund is less than 50 percent of the designated reserve ratio; and

`(II) the Corporation expects the reserve ratio of the Savings Association Insurance Fund to remain at less than 50 percent of the designated reserve ratio for each of the next 4 calendar quarters.

`(v) EXCLUSION OF SPECIAL RESERVE IN CALCULATING RESERVE RATIO- Notwithstanding any other provision of law, any amounts in the Special Reserve of the Savings Association Insurance Fund shall be excluded in calculating the reserve ratio of the Savings Association Insurance Fund.'.

SEC. 2015. REFUND OF AMOUNTS IN DEPOSIT INSURANCE FUND IN EXCESS OF DESIGNATED RESERVE AMOUNT.

Subsection (e) of section 7 of the Federal Deposit Insurance Act (12 U.S.C. 1817(e)) is amended to read as follows:

`(e) REFUNDS-

`(1) OVERPAYMENTS- In the case of any payment of an assessment by an insured depository institution in excess of the amount due to the Corporation, the Corporation may--

`(A) refund the amount of the excess payment to the insured depository institution; or

`(B) credit such excess amount toward the payment of subsequent semiannual assessments until such credit is exhausted.

`(2) BALANCE IN INSURANCE FUND IN EXCESS OF DESIGNATED RESERVE-

`(A) IN GENERAL- Subject to subparagraphs (B) and (C), if, as of the end of any semiannual assessment period, 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 2013 of the Balanced Budget Act of 1995); or

`(ii) the Deposit Insurance Fund (after the establishment of such fund),

exceeds the balance required to meet the designated reserve ratio applicable with respect to such fund, such excess amount shall be refunded to insured depository institutions by the Corporation on such basis as the Board of Directors determines to be appropriate, taking into account the factors considered under the risk-based assessment system.

`(B) REFUND NOT TO EXCEED PREVIOUS SEMIANNUAL ASSESSMENT- The amount of any refund under this paragraph to any member of a deposit insurance fund for any semiannual assessment period may not exceed the total amount of assessments paid by such member to the insurance fund with respect to such period.

`(C) REFUND LIMITATION FOR CERTAIN INSTITUTIONS- No refund may be made under this paragraph with respect to the amount of any assessment paid for any semiannual assessment period by any insured depository institution described in clause (v) of subsection (b)(2)(A).'.

SEC. 2016. ASSESSMENT RATES FOR SAIF MEMBERS MAY NOT BE LESS THAN ASSESSMENT RATES FOR BIF MEMBERS.

Section 7(b)(2)(C) of the Federal Deposit Insurance Act (12 U.S.C. 1817(b)(2)(E), as redesignated by section 2013(d)(6) of this Act) is amended--

(1) by striking `and' at the end of clause (i);

(2) by striking the period at the end of clause (ii) and inserting `; and'; and

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

`(iii) notwithstanding any other provision of this subsection, during the period beginning on the date of enactment of the Balanced Budget Act of 1995, and ending on January 1, 1998, the assessment rate for a Savings Association Insurance Fund member may not be less than the assessment rate for a Bank Insurance Fund member that poses a comparable risk to the deposit insurance fund.'.

SEC. 2017. ASSESSMENTS AUTHORIZED ONLY IF NEEDED TO MAINTAIN THE RESERVE RATIO OF A DEPOSIT INSURANCE FUND.

(a) IN GENERAL- Section 7(b)(2)(A)(i) of the Federal Deposit Insurance Act (12 U.S.C. 1817(b)(2)(A)(i)) is amended in the matter preceding subclause (I) by inserting `when necessary, and only to the extent necessary' after `insured depository institutions'.

(b) LIMITATION ON ASSESSMENT- Section 7(b)(2)(A)(iii) of the Federal Deposit Insurance Act (12 U.S.C. 1817(b)(2)(A)(iii)) is amended to read as follows:

`(iii) LIMITATION ON ASSESSMENT- Except as provided in clause (v), the Board of Directors shall not set semiannual assessments with respect to a deposit insurance fund in excess of the amount needed--

`(I) to maintain the reserve ratio of the fund at the designated reserve ratio; or

`(II) if the reserve ratio is less than the designated reserve ratio, to increase the reserve ratio to the designated reserve ratio.'.

(c) EXCEPTION TO LIMITATION ON ASSESSMENTS- Section 7(b)(2)(A) of the Federal Deposit Insurance Act (12 U.S.C. 1817(b)(2)(A)) is amended by adding at the end the following new clause:

`(v) EXCEPTION TO LIMITATION ON ASSESSMENTS- The Board of Directors may set semiannual assessments in excess of the amount permitted under clauses (i) and (iii) with respect to insured depository institutions that exhibit financial, operational, or compliance weaknesses ranging from moderately severe to unsatisfactory, or are not well capitalized, as that term is defined in section 38.'.

SEC. 2018. LIMITATION ON AUTHORITY OF OVERSIGHT BOARD TO CONTINUE TO EMPLOY MORE THAN 18 OFFICERS AND EMPLOYEES.

(a) IN GENERAL- Section 21A(a) of the Federal Home Loan Bank Act (12 U.S.C. 1441a(a)) is amended by adding at the end the following new paragraph:

`(17) PHASED-DOWN OPERATION OF OVERSIGHT BOARD FOLLOWING TERMINATION OF CORPORATION-

`(A) TERMINATION OF AUTHORITY TO EMPLOY STAFF- Except as provided in subparagraph (B), the authority of the Thrift Depositor Protection Oversight Board under paragraph (5) to establish officer and employee positions, to compensate officers and employees of the Board, and to provide other benefits for officers and employees of the Board shall terminate as of December 31, 1995.

`(B) LIMITED AUTHORITY FOR EMPLOYING STAFF- The Thrift Depositor Protection Oversight Board may employ not more than 18 individuals, excluding any employee of any other department or agency utilized by the Board, to carry out the functions of the Board during the period beginning on January 1, 1996 and ending on May 1, 1996, other than employees whose employment is in the process of being terminated in accordance with subparagraph (C).

`(C) TERMINATION OF EMPLOYMENT OF ADDITIONAL EMPLOYEES REQUIRED TO BE COMMENCED- The Thrift Depositor Protection Oversight Board shall commence terminating, not later than December 31, 1995, and in accordance with title 5, United States Code, and applicable regulations of the Office of Personnel Management, the employment of any employee of the Board whose continued employment by the Board after such date is inconsistent with the requirement of subparagraph (B).'.

(b) TECHNICAL AND CONFORMING AMENDMENTS- Section 21A(a)(5) of the Federal Home Loan Bank Act (12 U.S.C. 1441a(a)(5)) is amended in subparagraphs (B), (C), (D), and (E), by inserting `subject to paragraph (17),' after the closing parenthesis of the subparagraph designation in each such subparagraph.

SEC. 2019. DEFINITIONS.

For purposes of this subtitle--

(1) the term `Bank Insurance Fund' means the fund established pursuant to section (11)(a)(5)(A) of the Federal Deposit Insurance Act, as that section existed on the day before the date of enactment of this Act;

(2) the terms `Bank Insurance Fund member' and `Savings Association Insurance Fund member' have the same meanings as in section 7(l) of the Federal Deposit Insurance Act;

(3) the terms `bank', `Board of Directors', `Corporation', `insured depository institution', `Federal savings association', `savings association', `State savings bank', and `State depository institution' have the same meanings as in section 3 of the Federal Deposit Insurance Act;

(4) the term `Deposit Insurance Fund' means the fund established under section 11(a)(4) of the Federal Deposit Insurance Act, as amended by section 2013(d) of this Act;

(5) the term `depository institution holding company' has the same meaning as in section 3 of the Federal Deposit Insurance Act;

(6) the term `designated reserve ratio' has the same meaning as in section 7(b)(2)(A)(iv) of the Federal Deposit Insurance Act;

(7) the term `Savings Association Insurance Fund' means the fund established pursuant to section 11(a)(6)(A) of the Federal Deposit Insurance Act, as that section existed on the day before the date of enactment of this Act; and

(8) the term `SAIF-assessable deposit' means--

(A) a deposit that is subject to assessment for purposes of the Savings Association Insurance Fund under the Federal Deposit Insurance Act; and

(B) a deposit that section 5(d)(3) of the Federal Deposit Insurance Act treats as insured by the Savings Association Insurance Fund.

Subtitle B--Housing

SEC. 2051. ANNUAL ADJUSTMENT FACTORS FOR OPERATING COSTS ONLY; RESTRAINT ON RENT INCREASES.

(a) ANNUAL ADJUSTMENT FACTORS FOR OPERATING COSTS ONLY- Section 8(c)(2)(A) of the United States Housing Act of 1937 (42 U.S.C. 1437f(c)(2)(A)) is amended--

(1) by striking `(2)(A)' and inserting `(2)(A)(i)';

(2) by striking the second sentence and all that follows through the end of the subparagraph; and

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

`(ii) Each assistance contract under this section shall provide that--

`(I) if the maximum monthly rent for a unit in a new construction or substantial rehabilitation project to be adjusted using an annual adjustment factor exceeds 100 percent of the fair market rent for an existing dwelling unit in the market area, the Secretary shall adjust the rent using an operating costs factor that increases the rent to reflect increases in operating costs in the market area; and

`(II) if the owner of a unit in a project described in subclause (I) demonstrates that the adjusted rent determined under subclause (I) would not exceed the rent for an unassisted unit of similar quality, type, and age in the same market area, as determined by the Secretary, the Secretary shall use the otherwise applicable annual adjustment factor.'.

(b) RESTRAINT ON SECTION 8 RENT INCREASES- Section 8(c)(2)(A) of the United States Housing Act of 1937 (42 U.S.C. 1437f(c)(2)(A)), as amended by subsection (a), is amended by adding at the end the following new clause:

`(iii)(I) Subject to subclause (II), with respect to any unit assisted under this section that is occupied by the same family at the time of the most recent annual rental adjustment, if the assistance contract provides for the adjustment of the maximum monthly rent by applying an annual adjustment factor, and if the rent for the unit is otherwise eligible for an adjustment based on the full amount of the annual adjustment factor, 0.01 shall be subtracted from the amount of the annual adjustment factor, except that the annual adjustment factor shall not be reduced to less than 1.0.

`(II) With respect to any unit described in subclause (I) that is assisted under the certificate program, the adjusted rent shall not exceed the rent for a comparable unassisted unit of similar quality, type, and age in the market area in which the unit is located.'.

(c) EFFECTIVE DATE- The amendments made by this section shall become effective on October 1, 1995.

SEC. 2052. FORECLOSURE AVOIDANCE AND BORROWER ASSISTANCE.

(a) FORECLOSURE AVOIDANCE- Except as provided in subsection (e), the last sentence of section 204(a) of the National Housing Act (12 U.S.C. 1710(a)) is amended by inserting before the period the following: `: And provided further, That the Secretary may pay insurance benefits to the mortgagee to recompense the mortgagee for its actions to provide an alternative to foreclosure of a mortgage that is in default, which actions may include such actions as special forbearance, loan modification, and deeds in lieu of foreclosure, all upon such terms and conditions as the mortgagee shall determine in the mortgagee's sole discretion within guidelines provided by the Secretary, but which may not include assignment of a mortgage to the Secretary: And provided further, That for purposes of the preceding proviso, no action authorized by the Secretary and no action taken, nor any failure to act, by the Secretary or the mortgagee shall be subject to judicial review'.

(b) AUTHORITY TO ASSIST MORTGAGORS IN DEFAULT- Except as provided in subsection (e), section 230 of the National Housing Act (12 U.S.C. 1715u) is amended to read as follows:

`AUTHORITY TO ASSIST MORTGAGORS IN DEFAULT

`SEC. 230. (a) PAYMENT OF PARTIAL CLAIM- The Secretary may establish a program for payment of a partial insurance claim to a mortgagee that agrees to apply the claim amount to payment of a mortgage on a 1- to 4-family residence that is in default. Any such payment under such program to the mortgagee shall be made in the Secretary's sole discretion and on terms and conditions acceptable to the Secretary, except that--

`(1) the amount of the payment shall be in an amount determined by the Secretary, which shall not exceed an amount equivalent to 12 monthly mortgage payments and any costs related to the default that are approved by the Secretary; and

`(2) the mortgagor shall agree to repay the amount of the insurance claim to the Secretary upon terms and conditions acceptable to the Secretary.

The Secretary may pay the mortgagee, from the appropriate insurance fund, in connection with any activities that the mortgagee is required to undertake concerning repayment by the mortgagor of the amount owed to the Secretary.

`(b) ASSIGNMENT-

`(1) PROGRAM AUTHORITY- The Secretary may establish a program for assignment to the Secretary, upon request of the mortgagee, of a mortgage on a 1- to 4-family residence insured under this Act.

`(2) PROGRAM REQUIREMENTS- The Secretary may accept assignment of a mortgage under a program under this subsection only if--

`(A) the mortgage was in default;

`(B) the mortgagee has modified the mortgage to cure the default and provide for mortgage payments within the reasonable ability of the mortgagor to pay at interest rates not exceeding current market interest rates; and

`(C) the Secretary arranges for servicing of the assigned mortgage by a mortgagee (which may include the assigning mortgagee) through procedures that the Secretary has determined to be in the best interests of the appropriate insurance fund.

`(3) PAYMENT OF INSURANCE BENEFITS- Upon accepting assignment of a mortgage under the program under this subsection, the Secretary may pay insurance benefits to the mortgagee from the appropriate insurance fund in an amount that the Secretary determines to be appropriate, but which may not exceed the amount necessary to compensate the mortgagee for the assignment and any losses and expenses resulting from the mortgage modification.

`(c) PROHIBITION OF JUDICIAL REVIEW- No decision by the Secretary to exercise or forego exercising any authority under this section shall be subject to judicial review.

`(d) SAVINGS PROVISION- Any mortgage for which the mortgagor has applied to the Secretary, before the date of the enactment of the Balanced Budget Act of 1995, for assignment pursuant to subsection (b) of this section as in effect before such date of enactment shall continue to be governed by the provisions of this section in effect immediately before such date of enactment.

`(e) APPLICABILITY OF OTHER LAWS- No provision of this Act or any other law shall be construed to require the Secretary to provide an alternative to foreclosure for mortgagees with mortgages on 1- to 4-family residences insured by the Secretary under this Act, or to accept assignments of such mortgages.'.

(c) APPLICABILITY OF AMENDMENTS- Except as provided in subsection (e), the amendments made by subsections (a) and (b) shall apply only with respect to mortgages insured under the National Housing Act that are originated on or after October 1, 1995.

(d) REGULATIONS- Not later than the expiration of the 60-day period beginning on the date of the enactment of this Act, the Secretary of Housing and Urban Development shall issue interim regulations to implement this section and the amendments made by this section.

(e) EFFECTIVENESS AND APPLICABILITY- If this Act is enacted after the date of the enactment of the Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1996--

(1) subsections (a), (b), (c), and (d) of this section shall not take effect; and

(2) subsection (c) of the section relating to foreclosure avoidance and borrower assistance in title II of the Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1996, is amended by striking `only with respect to mortgages insured under the National Housing Act that are originated before October 1, 1995' and inserting `to mortgages originated before, on, and after October 1, 1995'.

TITLE III--COMMUNICATIONS AND SPECTRUM ALLOCATION PROVISIONS

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 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, 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 the sole or principal purpose of which is to protect the safety of life, health, and property and which 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, unless--

`(i) the Commission, not later than 180 days after the date of enactment of the Balanced Budget Act of 1995, after notice and public comment, submits to Congress a report on the use of the authority provided in this subsection for the assignment of initial licenses or construction permits for use of the electromagnetic spectrum allocated but not assigned as of the date of enactment of that Act for television broadcast services; and

`(ii) the Congress amends this subsection to authorize the use of the authority provided by this subsection for such licenses or permits.

Except as provided in this subparagraph, the Commission may not assign initial licenses or construction permits under this title to terrestrial commercial television broadcast licensees to replace their existing broadcast licenses before November 15, 1996.'; 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 a terrestrial radio or television broadcast station 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;

(ii) been identified by the Secretary of Commerce pursuant to section 113 of the National Telecommunications and Information Administration Organization Act; or

(iii) been reserved for Federal Government use pursuant to section 305 of the Communications Act of 1934 (47 U.S.C. 305).

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;

(D) comply with the requirements of international agreements concerning spectrum allocations; and

(E) take into account the costs to satellite service providers that could result from multiple auctions of like spectrum internationally for global satellite systems.

(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 section).

(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 subsections:

`(f) ADDITIONAL REALLOCATION REPORT- If the Secretary receives a notice from the Commission pursuant to section 3001(b)(3) of the Balanced Budget 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.

`(g) RELOCATION OF FEDERAL GOVERNMENT STATIONS-

`(1) IN GENERAL- In order to expedite the efficient use of the electromagnetic spectrum and notwithstanding section 3302(b) of title 31, United States Code, any Federal entity which operates a Federal Government station may accept payment in advance or in-kind reimbursement of costs, or a combination of payment in advance and in-kind reimbursement, from any person to defray entirely the expenses of relocating the Federal entity's operations from one or more radio spectrum frequencies to another frequency or frequencies, including, without limitation, the costs of any modification, replacement, or reissuance of equipment, facilities, operating manuals, regulations, or other expenses incurred by that entity. Any such payment shall be deposited in the account of such Federal entity in the Treasury of the United States. Funds deposited according to this paragraph shall be available, without appropriation or fiscal year limitation, only for the operations of the Federal entity for which such funds were deposited under this paragraph.

`(2) PROCESS FOR RELOCATION- Any person seeking to relocate a Federal Government station that has been assigned a frequency within a band allocated for mixed Federal and non-Federal use may submit a petition for such relocation to NTIA. The NTIA shall limit or terminate the Federal Government station's operating license when the following requirements are met:

`(A) the person seeking relocation of the Federal Government station has guaranteed to defray entirely, through payment in advance, in-kind reimbursement of costs, or a combination thereof, all relocation costs incurred by the Federal entity, including all engineering, equipment, site acquisition and construction, and regulatory fee costs;

`(B) the person seeking relocation completes all activities necessary for implementing the relocation, including construction of replacement facilities (if necessary and appropriate) and identifying and obtaining on the Federal entity's behalf new frequencies for use by the relocated Federal Government station (where such station is not relocating to spectrum reserved exclusively for Federal use);

`(C) any necessary replacement facilities, equipment modifications, or other changes have been implemented and tested to ensure that the Federal Government station is able to successfully accomplish its purposes; and

`(D) NTIA has determined that the proposed use of the spectrum frequency band to which the Federal entity will relocate its operations is--

`(i) consistent with obligations undertaken by the United States in international agreements and with United States national security and public safety interests; and

`(ii) suitable for the technical characteristics of the band and consistent with other uses of the band.

In exercising its authority under subparagraph (D)(i), NTIA shall consult with the Secretary of Defense, the Secretary of State, or other appropriate officers of the Federal Government.

`(3) RIGHT TO RECLAIM- If within one year after the relocation the Federal Government station demonstrates to the Commission that the new facilities or spectrum are not comparable to the facilities or spectrum from which the Federal Government station was relocated, the person seeking such relocation must take reasonable steps to remedy any defects or pay the Federal entity for the costs of returning the Federal Government station to the spectrum from which such station was relocated.

`(h) FEDERAL ACTION TO EXPEDITE SPECTRUM TRANSFER- Any Federal Government station which operates on electromagnetic spectrum that has been identified for reallocation for mixed Federal and non-Federal use in any reallocation report under subsection (a) shall, to the maximum extent practicable through the use of the authority granted under subsection (g) and any other applicable provision of law, take action to relocate its spectrum use to other frequencies that are reserved for Federal use or to consolidate its spectrum use with other Federal Government stations in a manner that maximizes the spectrum available for non-Federal use. Subsection (c)(4) of this section shall not apply to the extent that a non-Federal user seeks to relocate or relocates a Federal power agency under subsection (g).

`(i) DEFINITION- For purposes of this section, the term `Federal entity' means any department, agency, or other instrumentality of the Federal Government that utilizes a Government station license obtained under section 305 of the 1934 Act (47 U.S.C. 305).'; and

(2) in section 114(a)(1), by striking `(a) or (d)(1)' and inserting `(a), (d)(1), or (f)'.

(d) 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) of the 1934 Act (47 U.S.C. 309(j)).'.

TITLE IV--EDUCATION AND RELATED PROVISIONS

SEC. 4000. TABLE OF CONTENTS.

The table of contents for this title is as follows:

TITLE IV--EDUCATION AND RELATED PROVISIONS
Sec. 4000. Table of contents.
Subtitle A--Higher Education
Sec. 4001. Short title; references; and general effective date.
Sec. 4002. Participation of institutions and administration of loan programs.
Sec. 4003. Loan terms and conditions.
Sec. 4004. Amendments affecting guaranty agencies.
Sec. 4005. Amendments affecting FFELP lenders and loan holders.
Sec. 4006. Connie Lee privatization.
Sec. 4007. Extension of program duration.
Subtitle B--Provisions Relating to the Employee Retirement Income Security Act of 1974
Sec. 4101. Waiver of minimum period for joint and survivor annuity explanation before annuity starting date.

Subtitle A--Higher Education

SEC. 4001. SHORT TITLE; REFERENCES; AND GENERAL EFFECTIVE DATE.

(a) SHORT TITLE- This subtitle may be cited as the `Student Loan Reform Act of 1995'.

(b) REFERENCES- 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 Higher Education Act of 1965 (20 U.S.C. 1001 et seq.).

(c) GENERAL EFFECTIVE DATE- Unless otherwise specified in this subtitle, the amendments made by this subtitle shall take effect on January 1, 1996.

SEC. 4002. PARTICIPATION OF INSTITUTIONS AND ADMINISTRATION OF LOAN PROGRAMS.

(a) LIMITATION ON PROPORTION OF LOANS MADE UNDER THE DIRECT LOAN PROGRAM- Section 453(a) (20 U.S.C. 1087c(a)) is amended--

(1) by amending paragraph (2) to read as follows:

`(2) DETERMINATION OF NUMBER OF AGREEMENTS- Notwithstanding any other provision of law, the Secretary may enter into agreements under subsections (a) and (b) of section 454 with institutions for participation in the direct loan program under this part, subject to the following:

`(A) For academic year 1994-1995, loans made under this part shall represent not more than 5 percent of new student loan volume for such year.

`(B) For academic year 1995-1996, loans made under this part, including Federal Direct Consolidation Loans, shall represent not more than 30 percent of the new student loan volume for such year, except that the Secretary shall not enter into such an agreement with an eligible institution that has not applied and been accepted for participation in the direct loan program under this part on or before September 30, 1995.

`(C) For academic year 1996-1997 and for each succeeding academic year, loans made under this part, including Federal Direct Consolidation Loans, shall represent not more than 10 percent of the new student loan volume for such year, except that only the 102 eligible institutions that participated in the direct loan program under this part for academic year 1994-1995 shall be eligible to participate in such program for academic year 1996-1997 and for each succeeding academic year.';

(2) by striking paragraph (3);

(3) by redesignating paragraph (4) as paragraph (3); and

(4) in the second sentence of paragraph (3) (as redesignated by paragraph (3)), by striking `on the most recent program data available' and inserting `on data from the academic year preceding the academic year for which the estimate is made'.

(b) ELIMINATION OF CONSCRIPTION- Section 453(b)(2) (20 U.S.C. 1087c(b)(2)) is amended--

(1) by striking subparagraph (B); and

(2) in subparagraph (A)--

(A) in clause (ii)--

(i) by striking `beginning'; and

(ii) by striking `clause (i); and' and inserting `subparagraph (A).';

(B) by redesignating clause (ii) (as amended by subparagraph (A)) as subparagraph (B); and

(C) by striking `(i) categorizing' and inserting `categorizing'.

(c) CONTROL OF ADMINISTRATIVE EXPENSES- Section 458 (20 U.S.C. 1087h) is amended--

(1) by amending subsection (a) to read as follows:

`(a) EXPENSES-

`(1) IN GENERAL-

`(A) IN GENERAL- Except as provided in subparagraph (B), each fiscal year there shall be available to the Secretary from funds not otherwise appropriated, funds to be obligated for subsidy costs under this part for the William D. Ford Federal Direct Loan Program. There shall also be available from funds not otherwise appropriated, funds to be obligated for indirect administrative expenses under this part and part B, not to exceed (from such funds not otherwise appropriated) $260,000,000 for fiscal year 1994, $345,000,000 for fiscal year 1995, $85,000,000 (and such sums as may be necessary for administrative cost allowances for guaranty agencies for costs accrued prior to January 1, 1996) for fiscal year 1996, and $85,000,000 for each of the fiscal years 1997 through 2002.

`(B) REDUCTION- The amount authorized to be made available for fiscal year 1997 under subparagraph (A) 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.

`(2) DIRECT AND INDIRECT ADMINISTRATIVE EXPENSES-

`(A) DIRECT ADMINISTRATIVE EXPENSES-

`(i) IN GENERAL- For purposes of this subsection the term `direct administrative expenses' means the cost under the William D. Ford Federal Direct Loan Program of--

`(I) activities related to credit extension, loan origination, loan servicing, management of contractors, and payments to contractors, other government entities, and program participants, under this part;

`(II) collection of delinquent loans under this part; and

`(III) write-off and closeout of loans under this part.

`(ii) CLARIFICATION WITH RESPECT TO CERTAIN EXPENSES- Such term does not include the costs to the Department of personnel, training, rent, printing, or other administrative costs, associated with the activities described in subclause (I), (II), or (III) of clause (i).

`(B) INDIRECT ADMINISTRATIVE EXPENSES- For purposes of this subsection the term `indirect administrative expenses' means the cost of--

`(i) personnel engaged in developing program regulations, policy and administrative guidance;

`(ii) audits of institutions and contractors;

`(iii) program reviews; and

`(iv) other oversight of the program under this part or under part B.

`(3) SUBSIDY COST- The term `subsidy cost' means the estimated long-term cost to the Federal Government of direct administrative expenses calculated on a net present value basis.'; and

(2) by striking subsection (d).

(d) DEFAULT RATE LIMITATIONS ON DIRECT LENDING-

(1) INSTITUTIONAL ELIGIBILITY BASED ON DEFAULT RATES- The first sentence of section 435(a)(2)(A) (20 U.S.C. 1085(a)(2)(A)) is amended by inserting `or part D' after `under this part'.

(2) COHORT DEFAULT RATE- Section 435(m)(1) (20 U.S.C. 1085(m)(1)) is amended--

(A) in subparagraph (A)--

(i) by striking `428, 428A, or 428H' and inserting `428, 428A, 428H, or part D (other than Federal Direct PLUS Loans)'; and

(ii) by striking `428C' and inserting `428C or 455(g)';

(B) in subparagraph (B)--

(i) by striking `only'; and

(ii) by inserting `and loans made under part D determined by the Secretary to be in default,' after `for insurance,'; and

(C) in subparagraph (C), by striking `428C' and inserting `428C or 455(g)'.

(3) DEFAULT RATES AND INCOME CONTINGENT REPAYMENT- Section 435(m) (20 U.S.C. 1085(m)) is amended by adding at the end the following new paragraph:

`(5) DEFAULT RATE AND INCOME CONTINGENT REPAYMENT- The Secretary shall prescribe regulations for the calculation of default rates for loans that are repaid pursuant to income contingent repayment under this part, which regulations shall be comparable to regulations for the calculation of default rates for loans that are repaid pursuant to income contingent repayment under part D.'.

(4) TERMINATION OF INSTITUTIONAL PARTICIPATION- Section 455 (20 U.S.C. 1087e) is amended by adding at the end the following new subsection:

`(l) TERMINATION OF INSTITUTIONS FOR HIGH DEFAULT RATES-

`(1) METHODOLOGY AND CRITERIA- The Secretary shall develop--

`(A) a methodology for the calculation of institutional default rates under the loan programs operated pursuant to this part;

`(B) criteria for the initiation of termination proceedings on the basis of such default rates; and

`(C) procedures for the conduct of such termination proceedings.

`(2) COMPARABILITY TO PART B- In developing the methodology, criteria, and procedures required by paragraph (1), the Secretary, to the maximum extent possible, shall establish standards for the termination of institutions from participation in loan programs under this part that are comparable to the standards established for the termination of institutions from participation in the loan programs under part B. Such procedures shall include provisions for the appeal of default rate calculations based on deficiencies in the servicing of loans under this part that are comparable to the provisions for such appeals based on deficiencies in the servicing of loans under part B.

`(3) PROMULGATION- The methodology, criteria, procedures and standards required by paragraphs (1) and (2) shall be promulgated in final form not later than 120 days after the date of enactment of this paragraph.'.

(e) ELIMINATION OF TRANSITION TO DIRECT LOANS- The Act (20 U.S.C. 1001 et seq.) is further amended--

(1) in section 422(c)(7) (20 U.S.C. 1072(c)(7))--

(A) in subparagraph (A), by striking `during the transition' and all that follows through `part D of this title'; and

(B) in subparagraph (B), by striking `section 428(c)(10)(F)(v)' and inserting `section 428(c)(9)(F)(v)';

(2) in section 422(g)(1) (20 U.S.C. 1072(g)(1))--

(A) in the first sentence, by striking `or the program authorized by part D of this title'; and

(B) in the second sentence, by striking `or the program authorized by part D of this title';

(3) in section 428(c)(8) (20 U.S.C. 1078(c)(8))--

(A) by striking subparagraph (B); and

(B) by striking `(A) If' and inserting `If';

(4) in section 428(c)(9)(F)(vii) (20 U.S.C. 1078(c)(9)(F)(vii))--

(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) (20 U.S.C. 1078(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) (20 U.S.C. 1078(e)(1)(B)(ii)), by striking `during the transition' and all that follows through `under part D of this title';

(7) in section 428(e)(3) (20 U.S.C. 1078(e)(3)), by striking `costs of transition' and inserting `indirect administrative expenses';

(8) in section 428(j)(3) (20 U.S.C. 1078(j)(3))--

(A) in the heading for paragraph (3), by striking `DURING TRANSITION TO DIRECT LENDING'; and

(B) in subparagraph (A), by striking `during the transition' and all that follows through `part D of this title';

(9) in the heading for paragraph (2) of section 453(c) (20 U.S.C. 1087c(c)), by striking `TRANSITION' and inserting `INSTITUTIONAL';

(10) in the heading for paragraph (3) of section 453(c) (20 U.S.C. 1087c(c)), by striking `AFTER TRANSITION'; and

(11) in section 456(b) (20 U.S.C. 1087f(b))--

(A) in paragraph (3), by inserting `and' after the semicolon;

(B) by striking paragraph (4);

(C) by redesignating paragraph (5) as paragraph (4); and

(D) in paragraph (4) (as redesignated by subparagraph (C)), by striking `successful operation' and inserting `integrity and efficiency'.

(f) FEES FOR ORIGINATION SERVICES- Section 452 (20 U.S.C. 1087b) is amended--

(1) by striking subsection (b); and

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

(g) RISK SHARING- Section 428(n) (20 U.S.C. 1078(n)) is amended by adding at the end the following new paragraph:

`(5) APPLICABILITY TO PART D LOANS- The provisions of this subsection shall apply to institutions of higher education participating in direct lending under part D with respect to loans made under such part, and for the purposes of this paragraph, paragraph (4) shall be applied by inserting `or part D' after `this part'.'.

(h) TECHNICAL AMENDMENT- Section 428(b)(1)(X) (20 U.S.C. 1078(b)(1)(X)) is amended by striking `section 428(c)(10)' and inserting `section 428(c)(9)'.

SEC. 4003. LOAN TERMS AND CONDITIONS.

(a) COMPARABILITY PROVISIONS-

(1) IN GENERAL- Paragraph (1) of section 455(a) (20 U.S.C. 1087e(a)) is amended to read as follows:

`(1) PARALLEL TERMS, CONDITIONS, ELIGIBILITY REQUIREMENTS, BENEFITS AND AMOUNTS- Unless otherwise specified in this part, loans made to borrowers under this part shall have the same terms, conditions, deferments, forbearances, eligibility requirements, and benefits, be subject to the same administrative requirements for origination, payment and processing of applications, be available in the same amounts, be subject to the same interest rates and same amount of fees, and have the same repayment plans, as the corresponding types of loans made to borrowers under sections 428, 428B, and 428H. The Secretary shall promulgate regulations implementing this paragraph not later than 120 days after the date of enactment of the Student Loan Reform Act of 1995.'.

(2) CONFORMING AMENDMENTS- Section 428(b)(1) (20 U.S.C. 1078(b)(1)) is amended--

(A) in subparagraph (D)(ii), by inserting `(except pursuant to a graduated, income-sensitive, or income contingent repayment schedule)' after `10 years'; and

(B) in subparagraph (E)(ii), by inserting `(except pursuant to a graduated, income-sensitive, or income contingent repayment schedule)' after `10 years'.

(b) ABILITY OF PART D BORROWERS TO OBTAIN FEDERAL STAFFORD CONSOLIDATION LOANS- Section 428C(a)(4) (20 U.S.C. 1078-3(a)(4)) is amended--

(1) by redesignating subparagraphs (B), (C), and (D) as subparagraphs (C), (D), and (E), respectively; and

(2) by inserting after subparagraph (A) the following new subparagraph:

`(B) made under part D of this title;'.

(c) ABILITY OF PART B BORROWERS TO OBTAIN FEDERAL DIRECT CONSOLIDATION LOANS- Paragraph (5) of section 428C(b) (20 U.S.C. 1078-3(b)) is amended to read as follows:

`(5) DIRECT CONSOLIDATION LOANS FOR BORROWERS IN SPECIFIED CIRCUMSTANCES-

`(A) Subject to subparagraphs (B) and (C) of section 453(a)(2), the Secretary may offer a borrower a Federal Direct Consolidation loan if such borrower is otherwise eligible for a consolidation loan pursuant to this section and such borrower is--

`(i) unable to obtain a consolidation loan from a lender with an agreement under subsection (a)(1) that holds one of such borrower's loans under this part; or

`(ii) unable to obtain a consolidation loan with income contingent repayment terms from a lender with an agreement under subsection (a)(1).

`(B) The Secretary shall establish appropriate certification procedures to verify the eligibility of borrowers for consolidation loans under this paragraph.

`(C) The Secretary shall not offer consolidation loans under this paragraph if, in the Secretary's judgment, the Department does not have the necessary origination and servicing arrangements in place for such loans, or the projected volume in such loans will be destabilizing to the availability of loans otherwise available under this part.'.

(d) INCOME CONTINGENT REPAYMENT IN THE FEDERAL FAMILY EDUCATION LOAN PROGRAM-

(1) INSURANCE PROGRAM AGREEMENTS- Section 428(b)(1)(E)(i) (20 U.S.C. 1078(b)(1)(E)(i)) is amended by striking `or income-sensitive repayment schedule' and inserting `repayment schedule or an income-sensitive repayment schedule, and may, at the discretion of the lender, offer the borrower the option of repaying the loan in accordance with an income contingent repayment schedule,'.

(2) REPAYMENT SCHEDULES- The matter preceding clause (i) of section 428C(c)(2)(A) (20 U.S.C. 1078-3(c)(2)(A)) is amended--

(A) in the first sentence, by striking `or income-sensitive repayment schedules' and inserting `repayment schedules or income-sensitive repayment schedules, and may include, at the discretion of the lender, the establishment of income contingent repayment schedules'; and

(B) in the second sentence, by striking `income-sensitive' and inserting `graduated, income-sensitive, or income contingent'.

(3) COMPARABLE TERMS AND CONDITIONS- Section 428(m) (20 U.S.C. 1078(m)) is amended by adding at the end the following new paragraph:

`(3) INCOME CONTINGENT REPAYMENT SCHEDULES- For the purpose of this part, income contingent repayment schedules established pursuant to subsection (b)(1)(E)(i) and section 428C(c)(2)(A) shall have terms and conditions comparable to the terms and conditions established by the Secretary pursuant to section 455(e)(4). The Secretary shall discharge or cancel the indebtedness of borrowers that repay pursuant to income contingent repayment under this part to the same extent, and under the same circumstances, as the Secretary discharges or cancels the indebtedness of borrowers that repay pursuant to income contingent repayment under part D.'.

(e) PLUS PROGRAM REDUCTIONS- Section 428B(b) (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 section) 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.'.

SEC. 4004. AMENDMENTS AFFECTING GUARANTY AGENCIES.

(a) USE OF RESERVE FUNDS TO PURCHASE DEFAULTED LOANS- Section 422 (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. 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;

`(B) such use is prohibited by State law; or

`(C) such use will compromise the ability of the guaranty agency to pay program expenses.'.

(b) EXTENSION OF PERIOD A GUARANTY AGENCY MUST HOLD A DEFAULTED LOAN-

(1) EXEMPTION FOR EXTENDED HOLDING PERIOD- The last sentence of section 428(c)(1)(A) (20 U.S.C. 1078(c)(1)(A)) is amended by striking `A guaranty agency' and inserting `Except as provided in section 428K, a guaranty agency'.

(2) NEW EXTENDED HOLDING PERIOD PROGRAM-

(A) AMENDMENT- Part B of title IV (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 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 during the period prior to 225 days after the date the guaranty agency discharges its insurance obligation on such loan, so that no claim for reimbursement by the Secretary is necessary. Upon securing payments satisfactory to the guaranty agency during such 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 promulgate regulations regarding the collection activity 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).'.

(B) EFFECTIVE DATE- The amendment made by this paragraph shall apply with respect to loans for which claims for insurance are filed by eligible lenders on or after January 1, 1996.

(c) ADMINISTRATIVE COST ALLOWANCE- Section 428(f)(1) (20 U.S.C. 1078(f)(1)) is amended--

(1) in the matter preceding clause (i) of subparagraph (A), by striking `For a fiscal year prior to fiscal year 1994, the' and inserting `The'; and

(2) by amending subparagraph (B) to read as follows:

`(B)(i) The total amount of payments for any fiscal year prior to fiscal year 1994 made under this paragraph shall be equal to 1 percent of the total principal amount of the loans upon which insurance was issued under this part during such fiscal year by such guaranty agency.

`(ii) For the period beginning January 1, 1996 and ending September 30, 1996, and for each fiscal year thereafter, each guaranty agency shall receive an administrative cost allowance, payable quarterly, for such fiscal year calculated on the basis of 0.85 percent of the total principal amount of the loans upon which insurance was issued under this part during such fiscal year by such guaranty agency.

`(iii) The guaranty agency shall be deemed to have a contractual right against the United States to receive payments according to the provisions of this subparagraph. Payments shall be made promptly and without administrative delay to any guaranty agency submitting an accurate and complete application therefor under this subparagraph.

`(iv) Notwithstanding clauses (ii) and (iii)--

`(I) for each of the fiscal years 1996 through 1998, the Secretary shall pay an aggregate amount for such year of not more than $220,000,000 to all guaranty agencies receiving administrative cost allowances under this subparagraph; and

`(II) for each of the fiscal years 1999 through 2002, the Secretary shall pay an aggregate amount for such year of not more than $180,000,000 to all guaranty agencies receiving administrative cost allowances under this subparagraph.'.

(d) SECRETARY'S EQUITABLE SHARE OF COLLECTIONS ON CONSOLIDATED DEFAULTED LOANS- Section 428(c)(6)(A) (20 U.S.C. 1078(c)(6)(A)) is amended--

(1) in the matter preceding clause (i)--

(A) by inserting `or on behalf of' after `made by'; and

(B) by inserting `, including payments made to discharge loans made under this title to obtain a consolidation loan pursuant to this part or part D,' after `borrower'; and

(2) in clause (ii), by inserting after `an amount equal to' the following: `--

`(I) for defaulted loans consolidated pursuant to this part or part D on or after January 1, 1996, 18.5 percent of the balance of the principal, accrued interest, and collection costs, outstanding at the time of such consolidation; or

`(II) for all other loans,'.

(e) RESERVE FUND REFORMS-

(1) STRENGTHENING AND STABILIZING GUARANTY AGENCIES- Section 428(c) (20 U.S.C. 1078(c)) is amended--

(A) in paragraph (9)(C)(ii), by striking `80 percent' and inserting `76 percent'; and

(B) in paragraph (9)(E)--

(i) in the matter preceding clause (i), by striking `The Secretary may terminate a' and inserting `After providing a guaranty agency notice and opportunity for a hearing on the record, the Secretary may terminate such';

(ii) in clause (iv), by inserting `or' after the semicolon;

(iii) by striking clause (vi); and

(iv) in clause (v), by striking `; or' and inserting a period.

(2) ADDITIONAL AMENDMENTS- Section 422 (20 U.S.C. 1072) is further amended--

(A) in the last sentence of subsection (a)(2), by striking `Except as provided in section 428(c)(10)(E) or (F), such' and inserting `Except as provided in subparagraph (E) or (F) of section 428(c)(9), such'; and

(B) in subsection (g), by amending paragraph (4) to read as follows:

`(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.'.

(f) ELIMINATION OF SUPPLEMENTAL PRECLAIMS ASSISTANCE-

(1) AMENDMENT- Section 428(l) (20 U.S.C. 1078(l)) is amended--

(A) by striking paragraph (2); and

(B) by striking `(l) PRECLAIMS' and all that follows through `Upon receipt' and inserting the following:

`(l) PRECLAIMS ASSISTANCE AND SUPPLEMENTAL PRECLAIMS ASSISTANCE- Upon receipt'.

(2) EFFECTIVE DATE- The amendment made by this subsection shall apply to loans for which the first delinquency occurs on or after January 1, 1996.

(g) RESERVE RATIOS- Section 428(c)(9)(A) (20 U.S.C. 1078(c)(9)(A)) is amended--

(1) in clause (i), by inserting `and' after the semicolon;

(2) in clause (ii), by striking `; and' and inserting a period; and

(3) by striking clause (iii).

(h) GUARANTY AGENCY REIMBURSEMENT-

(1) IN GENERAL- Section 428(c)(1) (20 U.S.C. 1078(c)(1)) is amended--

(A) in subparagraph (A), by striking `98 percent' and inserting `96 percent'; and

(B) in subparagraph (B)--

(i) in clause (i), by striking `88 percent' and inserting `86 percent'; and

(ii) in clause (ii), by striking `78 percent' and inserting `76 percent'.

(2) EFFECTIVE DATE- The amendments made by paragraph (1) shall apply with respect to loans for which the first disbursement is made on or after January 1, 1996.

SEC. 4005. AMENDMENTS AFFECTING FFELP LENDERS AND LOAN HOLDERS.

(a) RISK SHARING BY THE LOAN HOLDERS-

(1) AMENDMENT- Section 428(b)(1)(G) (20 U.S.C. 1078(b)(1)(G)) is amended by striking `not less than 98 percent' and inserting `95 percent'.

(2) EFFECTIVE DATE- The amendment made by this subsection shall apply with respect to loans for which the first disbursement is made on or after January 1, 1996.

(b) LENDERS-OF-LAST-RESORT- Section 428(j)(2) (20 U.S.C. 1078(j)(2)) is amended--

(1) in subparagraph (A), by striking `60 days' and inserting `15 days'; and

(2) in subparagraph (B), by striking `two rejections from eligible lenders' and inserting `one rejection from an eligible lender'.

(c) EXCEPTIONAL PERFORMANCE INSURANCE REDUCTION- Section 428I(b)(1) (20 U.S.C. 1078-9(b)(1)) is amended--

(1) in the paragraph heading, by striking `100 PERCENT'; and

(2) by striking `100 percent' and inserting `95 percent (or 100 percent in the case of a lender-of-last-resort)'.

(d) LOAN FEES FROM LENDERS-

(1) AMENDMENT- Section 438(d)(2) (20 U.S.C. 1087-1(d)(2)) is amended by striking `0.50 percent' and inserting `0.80 percent'.

(2) EFFECTIVE DATE- The amendment made by this subsection shall apply with respect to loans for which the first disbursement is made on or after January 1, 1996.

(e) LENDER AND HOLDER REBATE-

(1) AMENDMENT- Section 438 (20 U.S.C. 1078) is amended by adding at the end the following new subsection:

`(g) SUBSIDY REBATE ON STAFFORD AND PLUS LOANS-

`(1) REBATE- Each holder of a subsidized or unsubsidized Federal Stafford Loan under this part, or a Federal PLUS loan under section 428B, shall pay to the Secretary, on June 30 and December 31 of each year, a subsidy rebate in an amount equal to 0.035 percent of the unpaid principal amount of each such loan that such holder holds during the repayment period described in section 428(b)(7), except that, notwithstanding subparagraphs (A), (B), and (C) of section 428(b)(7), such holder shall pay a subsidy rebate under this paragraph with respect to such loan during any period of authorized forbearance.

`(2) PAYMENT OF REBATE- The subsidy rebate shall be paid, to the extent possible, by subtracting from amounts owed such holder under section 438(b) (after deducting from such amounts any amount owed by such holder under section 438(d) for the quarters ending June 30 and December 31, as appropriate) the amount of subsidy rebates owed by such holder. To the extent the amounts owed such holder under section 438(b) (after making the deduction described in the preceding sentence) are insufficient to pay in full the subsidy rebates due from such holder, such holder shall pay the insufficiency by check or wire transfer of funds, in a manner determined by the Secretary.

`(3) DEPOSIT- The Secretary shall deposit all subsidy rebates collected under the second sentence of paragraph (2) into the insurance fund established in section 431.'.

(2) EFFECTIVE DATE- The amendment made by this subsection shall apply with respect to loans for which the first disbursement is made on or after January 1, 1996.

(f) SMALL LENDER AUDIT EXEMPTION- Section 428(b)(1)(U)(iii) (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) in subclause (I), by inserting `such' before `lender at least once';

(3) in subclause (II), by inserting `such' before `a lender that is audited'; and

(4) by striking `if the lender' and inserting `if such lender'.

SEC. 4006. CONNIE LEE PRIVATIZATION.

(a) STATUS OF THE CORPORATION AND CORPORATE POWERS; OBLIGATIONS NOT FEDERALLY GUARANTEED-

(1) STATUS OF THE CORPORATION- The Corporation shall not be an agency, instrumentality, or establishment of the United States Government, nor a Government corporation nor a Government controlled corporation as such terms are defined in section 103 of title 5, United States Code. No action under section 1491 of title 28, United States Code (commonly known as the Tucker Act) shall be allowable against the United States based on the actions of the Corporation.

(2) CORPORATE POWERS- The Corporation shall be subject to the provisions of this section, and, to the extent not inconsistent with this section, to the District of Columbia Business Corporation Act (or the comparable law of another State, if applicable). The Corporation shall have the powers conferred upon a corporation by the District of Columbia Business Corporation Act (or such other applicable State law) as from time to time in effect in order to conduct its affairs as a private, for-profit corporation and to carry out its purposes and activities incidental thereto. The Corporation shall have the power to enter into contracts, to execute instruments, to incur liabilities, to provide products and services, and to do all things as are necessary or incidental to the proper management of its affairs and the efficient operation of a private, for-profit business.

(3) LIMITATION ON OWNERSHIP OF STOCK-

(A) SECRETARY OF THE TREASURY- The Secretary of the Treasury, in completing the sale of stock pursuant to subsection (c), may not sell or issue the stock held by the Secretary of Education to an agency, instrumentality, or establishment of the United States Government, or 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.

(B) STUDENT LOAN MARKETING ASSOCIATION- The Student Loan Marketing Association shall not increase its share of the ownership of the Corporation in excess of 42 percent of the shares of stock of the Corporation outstanding on the date of enactment of this Act. The Student Loan Marketing Association shall not control the operation of the Corporation, except that the Student Loan Marketing Association may participate in the election of directors as a shareholder, and may continue to exercise its right to appoint directors under section 754 of the Higher Education Act of 1965 (20 U.S.C. 1132f-3) as long as that section is in effect.

(C) PROHIBITION- Until such time as the Secretary of the Treasury sells the stock of the Corporation owned by the Secretary of Education pursuant to subsection (c), the Student Loan Marketing Association shall not provide financial support or guarantees to the Corporation.

(D) FINANCIAL SUPPORT OR GUARANTEES- After the Secretary of the Treasury sells the stock of the Corporation owned by the Secretary of Education pursuant to subsection (c), the Student Loan Marketing Association may provide financial support or guarantees to the Corporation, if such support or guarantees are subject to terms and conditions that are no more advantageous to the Corporation than the terms and conditions the Student Loan Marketing Association provides to other entities, including, where applicable, other monoline financial guaranty corporations in which the Student Loan Marketing Association has no ownership interest.

(4) NO FEDERAL GUARANTEE-

(A) OBLIGATIONS INSURED BY THE CORPORATION-

(i) FULL FAITH AND CREDIT OF THE UNITED STATES- No obligation that is insured, guaranteed, or otherwise backed by the Corporation shall be deemed to be an obligation that is guaranteed by the full faith and credit of the United States.

(ii) STUDENT LOAN MARKETING ASSOCIATION- No obligation that is insured, guaranteed, or otherwise backed by the Corporation shall be deemed to be an obligation that is guaranteed by the Student Loan Marketing Association.

(iii) SPECIAL RULE- This paragraph shall not affect the determination of whether such obligation is guaranteed for purposes of Federal income taxes.

(B) SECURITIES OFFERED BY THE CORPORATION- No debt or equity securities of the Corporation shall be deemed to be guaranteed by the full faith and credit of the United States.

(5) DEFINITION- The term `Corporation' as used in this section means the College Construction Loan Insurance Association as in existence on the day before the date of enactment of this Act, and to any successor corporation.

(b) RELATED PRIVATIZATION REQUIREMENTS-

(1) NOTICE REQUIREMENTS-

(A) IN GENERAL- During the six-year period following the date of enactment of this Act, the Corporation shall include, in each of the Corporation's contracts for the insurance, guarantee, or reinsurance of obligations, and in each document offering debt or equity securities of the Corporation a prominent statement providing notice that--

(i) such obligations or such securities, as the case may be, are not obligations of the United States, nor are such obligations guaranteed in any way by the full faith and credit of the United States; and

(ii) the Corporation is not an instrumentality of the United States.

(B) ADDITIONAL NOTICE- During the five-year period following the sale of stock pursuant to subsection (c)(1), in addition to the notice requirements in subparagraph (A), the Corporation shall include, in each of the contracts and documents referred to in such subparagraph, a prominent statement providing notice that the United States is not an investor in the Corporation.

(2) CORPORATE CHARTER- The Corporation's charter shall be amended as necessary and without delay to conform to the requirements of this section.

(3) CORPORATE NAME- The name of the Corporation, or of any direct or indirect subsidiary thereof, may not contain the term `College Construction Loan Insurance Association', or any substantially similar variation thereof.

(4) ARTICLES OF INCORPORATION- The Corporation shall amend 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) REQUIREMENTS UNTIL STOCK SALE- Notwithstanding subsection (d), the requirements of sections 754 and 760 of the Higher Education Act of 1965 (20 U.S.C. 1132f-3 and 1132f-9), as such sections were in effect on the day before the date of enactment of this Act, shall continue to be effective until the day immediately following the date of closing of the purchase of the Secretary of Education's stock (or the date of closing of the final purchase, in the case of multiple transactions) pursuant to subsection (c)(1) of this Act.

(c) SALE OF FEDERALLY OWNED STOCK-

(1) SALE OF STOCK REQUIRED- The Secretary of the Treasury shall sell, pursuant to section 324 of title 31, United States Code, the stock of the Corporation owned by the Secretary of Education as soon as possible after the date of enactment of this Act, but not later than six months after such date.

(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 6 months after the date of enactment of this Act, such stock at a price determined by the Secretary of the Treasury and acceptable to the Corporation based on the independent appraisal of one or more nationally recognized financial firms, except that such price shall not exceed the value of the Secretary of Education's stock as determined by the Congressional Budget Office in House Report 104-153, dated June 22, 1995.

(3) REIMBURSEMENT OF COSTS OF SALE- The Secretary of the Treasury shall be reimbursed from the proceeds of the sale of the stock under this subsection for all reasonable costs related to such sale, including all reasonable expenses relating to one or more independent appraisals under this subsection.

(4) ASSISTANCE BY THE CORPORATION- The Corporation shall provide such assistance as the Secretary of the Treasury and the Secretary of Education may require to facilitate the sale of the stock under this subsection.

(d) REPEAL OF STATUTORY RESTRICTIONS AND RELATED PROVISIONS- Part D of title VII of the Higher Education Act of 1965 (20 U.S.C. 1001 et seq.) is repealed.

SEC. 4007. EXTENSION OF PROGRAM DURATION.

Part B of title IV (20 U.S.C. 1071 et seq.) 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 `1998' and inserting `2002'; and

(B) by striking `2002' and inserting `2006'; and

(3) in section 428C(e) (20 U.S.C. 1078-3(e)), by amending the first sentence to read as follows: `The authority to make loans under this section expires at the close of September 30, 2002.'.

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

SEC. 4101. WAIVER OF MINIMUM PERIOD FOR JOINT AND SURVIVOR ANNUITY EXPLANATION BEFORE ANNUTIY 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--ENERGY AND NATURAL RESOURCES PROVISIONS

Subtitle A--Nuclear Regulatory Commission Annual Charges

SEC. 5001. 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 B--Department of Energy Assets

CHAPTER 1--UNITED STATES ENRICHMENT CORPORATION

SEC. 5201. SHORT TITLE.

This chapter may be cited as the `USEC Privatization Act'.

SEC. 5202. DEFINITIONS.

For purposes of this chapter:

(1) The term `AVLIS' means atomic vapor laser isotope separation technology.

(2) The term `Corporation' means the United States Enrichment Corporation and, unless the context otherwise requires, includes the private corporation and any successor thereto following privatization.

(3) The term `gaseous diffusion plants' means the Paducah Gaseous Diffusion Plant at Paducah, Kentucky and the Portsmouth Gaseous Diffusion Plant at Piketon, Ohio.

(4) The term `highly enriched uranium' means uranium enriched to 20 percent or more of the uranium-235 isotope.

(5) The term `low-enriched uranium' means uranium enriched to less than 20 percent of the uranium-235 isotope, including that which is derived from highly enriched uranium.

(6) The term `low-level radioactive waste' has the meaning given such term in section 2(9) of the Low-Level Radioactive Waste Policy Act (42 U.S.C. 2021b(9)).

(7) The term `private corporation' means the corporation established under section 5205.

(8) The term `privatization' means the transfer of ownership of the Corporation to private investors.

(9) The term `privatization date' means the date on which 100 percent of the ownership of the Corporation has been transferred to private investors.

(10) The term `public offering' means an underwritten offering to the public of the common stock of the private corporation pursuant to section 5204.

(11) The `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.

(12) The term `Secretary' means the Secretary of Energy.

(13) The `Suspension Agreement' means the Agreement to Suspend the Antidumping Investigation on Uranium from the Russian Federation, as amended.

(14) The term `uranium enrichment' means the separation of uranium of a given isotopic content into 2 components, 1 having a higher percentage of a fissile isotope and 1 having a lower percentage.

SEC. 5203. SALE OF THE CORPORATION.

(a) AUTHORIZATION- The Board of Directors of the Corporation, with the approval of the Secretary of the Treasury, shall transfer the interest of the United States in the United States Enrichment Corporation to the private sector in a manner that provides for the long-term viability of the Corporation, provides for the continuation by the Corporation of the operation of the Department of Energy's gaseous diffusion plants, provides for the protection of the public interest in maintaining a reliable and economical domestic source of uranium mining, enrichment and conversion services, and, to the extent not inconsistent with such purposes, secures the maximum proceeds to the United States.

(b) PROCEEDS- Proceeds from the sale of the United States' interest in the Corporation shall be deposited in the general fund of the Treasury.

SEC. 5204. METHOD OF SALE.

(a) AUTHORIZATION- The Board of Directors of the Corporation, with the approval of the Secretary of the Treasury, shall transfer ownership of the assets and obligations of the Corporation to the private corporation established under section 5205 (which may be consummated through a merger or consolidation effected in accordance with, and having the effects provided under, the law of the state of incorporation of the private corporation, as if the Corporation were incorporated thereunder).

(b) BOARD DETERMINATION- The Board, with the approval of the Secretary of the Treasury, shall select the method of transfer and establish terms and conditions for the transfer that will provide the maximum proceeds to the Treasury of the United States and will provide for the long-term viability of the private corporation, the continued operation of the gaseous diffusion plants, and the public interest in maintaining reliable and economical domestic uranium mining and enrichment industries.

(c) ADEQUATE PROCEEDS- The Secretary of the Treasury shall not allow the privatization of the Corporation unless before the sale date the Secretary of Treasury determines that the method of transfer will provide the maximum proceeds to the Treasury consistent with the principles set forth in section 5203(a).

(d) APPLICATION OF SECURITIES LAWS- Any offering or sale of securities by the private corporation shall be subject to the Securities Act of 1933 (15 U.S.C. 77a et seq.), the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.), and the provisions of the Constitution and laws of any State, territory, or possession of the United States relating to transactions in securities.

SEC. 5205. ESTABLISHMENT OF PRIVATE CORPORATION.

(a) INCORPORATION- (1) The directors of the Corporation shall establish a private for-profit corporation under the laws of a State for the purpose of receiving the assets and obligations of the Corporation at privatization and continuing the business operations of the Corporation following privatization.

(2) The directors of the Corporation may serve as incorporators of the private corporation and shall take all steps necessary to establish the private corporation, including the filing of articles of incorporation consistent with the provisions of this chapter.

(3) Employees and officers of the Corporation (including members of the Board of Directors) acting in accordance with this section on behalf of the private corporation shall be deemed to be acting in their official capacities as employees or officers of the Corporation for purposes of section 205 of title 18, United States Code.

(b) STATUS OF THE PRIVATE CORPORATION- (1) The private corporation shall not be an agency, instrumentality, or establishment of the United States, a Government corporation, or a Government-controlled corporation.

(2) Except as otherwise provided by this chapter, financial obligations of the private corporation 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 action under section 1491 of title 28, United States Code, shall be allowable against the United States based on actions of the private corporation.

(c) APPLICATION OF POST-GOVERNMENT EMPLOYMENT RESTRICTIONS- Beginning on the privatization date, the restrictions stated in section 207 (a), (b), (c), and (d) of title 18, United States Code, shall not apply to the acts of an individual done in carrying out official duties as a director, officer, or employee of the private corporation, if the individual was an officer or employee of the Corporation (including a director) continuously during the 45 days prior to the privatization date.

(d) DISSOLUTION- In the event that the privatization does not occur, the Corporation will provide for the dissolution of the private corporation within 1 year of the private corporation's incorporation unless the Secretary of the Treasury or his delegate, upon the Corporation's request, agrees to delay any such dissolution for an additional year.

SEC. 5206. TRANSFERS TO THE PRIVATE CORPORATION.

Concurrent with privatization, the Corporation shall transfer to the private corporation--

(1) the lease of the gaseous diffusion plants in accordance with section 5207,

(2) all personal property and inventories of the Corporation,

(3) all contracts, agreements, and leases under section 5208(a),

(4) the Corporation's right to purchase power from the Secretary under section 5208(b),

(5) such funds in accounts of the Corporation held by the Treasury or on deposit with any bank or other financial institution as approved by the Secretary of the Treasury, and

(6) all of the Corporation's records, including all of the papers and other documentary materials, regardless of physical form or characteristics, made or received by the Corporation.

SEC. 5207. LEASING OF GASEOUS DIFFUSION FACILITIES.

(a) TRANSFER OF LEASE- Concurrent with privatization, the Corporation shall transfer to the private corporation the lease of the gaseous diffusion plants and related property for the remainder of the term of such lease in accordance with the terms of such lease.

(b) RENEWAL- The private corporation shall have the exclusive option to lease the gaseous diffusion plants and related property for additional periods following the expiration of the initial term of the lease.

(c) EXCLUSION OF FACILITIES FOR PRODUCTION OF HIGHLY ENRICHED URANIUM- The Secretary shall not lease to the private corporation any facilities necessary for the production of highly enriched uranium but may, subject to the requirements of the Atomic Energy Act of 1954 (42 U.S.C. 2011 et seq.), grant the Corporation access to such facilities for purposes other than the production of highly enriched uranium.

(d) DOE RESPONSIBILITY FOR PREEXISTING CONDITIONS- The payment of any costs of decontamination and decommissioning, response actions, or corrective actions with respect to conditions existing before July 1, 1993 at the gaseous diffusion plants shall remain the sole responsibility of the Secretary.

(e) ENVIRONMENTAL AUDIT- For purposes of subsection (d), the conditions existing before July 1, 1993, at the gaseous diffusion plants shall be determined from the environmental audit conducted pursuant to section 1403(e) of the Atomic Energy Act of 1954 (42 U.S.C. 2297c-2(e)).

(f) TREATMENT UNDER PRICE-ANDERSON PROVISIONS- Any lease executed between the Secretary and the Corporation or the private corporation, and any extension or renewal thereof, under this section shall be deemed to be a contract for purposes of section 170d. of the Atomic Energy Act of 1954 (42 U.S.C. 2210(d)).

(g) WAIVER OF EIS REQUIREMENT- The execution or transfer of the lease between the Secretary and the Corporation or the private corporation, and any extension or renewal thereof, shall not be considered a major Federal action significantly affecting the quality of the human environment for purposes of section 102 of the National Environmental Policy Act of 1969 (42 U.S.C. 4332).

SEC. 5208. TRANSFER OF CONTRACTS.

(a) TRANSFER OF CONTRACTS- Concurrent with privatization, the Corporation shall transfer to the private corporation all contracts, agreements, and leases, including all uranium enrichment contracts, that were--

(1) transferred by the Secretary to the Corporation pursuant to section 1401(b) of the Atomic Energy Act of 1954 (42 U.S.C. 2297c(b)), or

(2) entered into by the Corporation before the privatization date.

(b) NONTRANSFERABLE POWER CONTRACTS- The Corporation shall transfer to the private corporation the right to purchase power from the Secretary under the power purchase contracts for the gaseous diffusion plants executed by the Secretary before July 1, 1993. The Secretary shall continue to receive power for the gaseous diffusion plants under such contracts and shall continue to resell such power to the private corporation at cost during the term of such contracts.

(c) EFFECT OF TRANSFER- (1) Notwithstanding subsection (a), the United States shall remain obligated to the parties to the contracts, agreements, and leases transferred under subsection (a) for the performance of its obligations under such contracts, agreements, or leases during their terms. Performance of such obligations by the private corporation shall be considered performance by the United States.

(2) If a contract, agreement, or lease transferred under subsection (a) is terminated, extended, or materially amended after the privatization date--

(A) the private corporation shall be responsible for any obligation arising under such contract, agreement, or lease after any extension or material amendment, and

(B) the United States shall be responsible for any obligation arising under the contract, agreement, or lease before the termination, extension, or material amendment.

(3) The private corporation shall reimburse the United States for any amount paid by the United States under a settlement agreement entered into with the consent of the private corporation or under a judgment, if the settlement or judgment--

(A) arises out of an obligation under a contract, agreement, or lease transferred under subsection (a), and

(B) arises out of actions of the private corporation between the privatization date and the date of a termination, extension, or material amendment of such contract, agreement, or lease.

(d) PRICING- The Corporation may 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 profit making corporation.

SEC. 5209. LIABILITIES.

(a) LIABILITY OF THE UNITED STATES- (1) Except as otherwise provided in this chapter, all liabilities arising out of the operation of the uranium enrichment enterprise before July 1, 1993, shall remain the direct liabilities of the Secretary.

(2) Except as provided in subsection (a)(3) or otherwise provided in a memorandum of agreement entered into by the Corporation and the Office of Management and Budget prior to the privatization date, all liabilities arising out of the operation of the Corporation between July 1, 1993, and the privatization date shall remain the direct liabilities of the United States.

(3) All liabilities arising out of the disposal of depleted uranium generated by the Corporation between July 1, 1993, and the privatization date shall become the direct liabilities of the Secretary.

(4) 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 from any action taken by any agent or officer of the United States in connection with the privatization of the Corporation is hereby withdrawn.

(5) To the extent that any claim against the United States under this section is of the type otherwise required by Federal statute or regulation to be presented to a Federal agency or official for adjudication or review, such claim shall be presented to the Department of Energy in accordance with procedures to be established by the Secretary. Nothing in this paragraph shall be construed to impose on the Department of Energy liability to pay any claim presented pursuant to this paragraph.

(6) The Attorney General shall represent the United States in any action seeking to impose liability under this subsection.

(b) LIABILITY OF THE CORPORATION- Notwithstanding any provision of any agreement to which the Corporation is a party, the Corporation shall not be considered in breach, default, or violation of any agreement because of the transfer of such agreement to the private corporation under section 5208 or any other action the Corporation is required to take under this chapter.

(c) LIABILITY OF THE PRIVATE CORPORATION- Except as provided in this chapter, the private corporation shall be liable for any liabilities arising out of its operations after the privatization date.

(d) LIABILITY OF OFFICERS AND DIRECTORS- (1) No officer, director, employee, or agent of the Corporation shall be liable in any civil proceeding to any party in connection with any action taken in connection with the privatization if, with respect to the subject matter of the action, suit, or proceeding, such person was acting within the scope of his employment.

(2) This subsection shall not apply to claims arising under the Securities Act of 1933 (15 U.S.C. 77a. et seq.), the Securities Exchange Act of 1934 (15 U.S.C. 78a. et seq.), or under the Constitution or laws of any State, territory, or possession of the United States relating to transactions in securities.

SEC. 5210. EMPLOYEE PROTECTIONS.

(a) CONTRACTOR EMPLOYEES- (1) Privatization shall not diminish the accrued, vested pension benefits of employees of the Corporation's operating contractor at the two gaseous diffusion plants.

(2) 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 plant to a pension plan sponsored by the new contractor or the private corporation or a joint-labor management plan, as the case may be.

(3) In addition to any obligations arising under the National Labor Relations Act (29 U.S.C. 151 et seq.), any employer (including the private corporation if it operates a gaseous diffusion plant without a contractor or any contractor of the private corporation) at a gaseous diffusion plant shall--

(A) 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 stated expiration or termination date of the agreement; or

(B) in the event a collective bargaining agreement is not in effect upon the privatization date, have the same bargaining obligations under section 8(d) of the National Labor Relations Act (29 U.S.C. 158(d)) as it had immediately before the privatization date.

(4) If the private corporation replaces its operating contractor at a gaseous diffusion plant, the new employer (including the new contractor or the private corporation if it operates a gaseous diffusion plant without a contractor) shall--

(A) offer employment to non-management employees of the predecessor contractor to the extent that their jobs still exist or they are qualified for new jobs, and

(B) abide by the terms of the predecessor contractor's collective bargaining agreement until the agreement expires or a new agreement is signed.

(5) 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 any adversely affected employee of an operating contractor at either plant who was an employee at such plant on July 1, 1993, as a Department of Energy employee for purposes of sections 3161 and 3162 of the National Defense Authorization Act for Fiscal Year 1993 (42 U.S.C. 7274h-7274i).

(6)(A) The Secretary and the private corporation shall cause the post-retirement health benefits plan provider (or its successor) to continue to provide benefits for eligible persons, as described under subparagraph (B), employed by an operating contractor at either of the gaseous diffusion plants in an economically efficient manner and at substantially the same level of coverage as eligible retirees are entitled to receive on the privatization date.

(B) Persons eligible for coverage under subparagraph (A) shall be limited to:

(i) persons who retired from active employment at one of the gaseous diffusion plants on or before 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 a gaseous diffusion plant; and

(ii) persons who are employed by the Corporation's operating contractor on or before the privatization date 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 a gaseous diffusion plant.

(C) The Secretary shall fund the entire cost of post-retirement health benefits for persons who retired from employment with an operating contractor prior to July 1, 1993.

(D) The Secretary and the Corporation shall fund the cost of post-retirement health benefits for persons who retire from employment with an operating contractor on or after July 1, 1993, in proportion to the retired person's years and months of service at a gaseous diffusion plant under their respective management.

(7)(A) Any suit under this subsection alleging a violation of an agreement between an employer and a labor organization shall be brought in accordance with section 301 of the Labor Management Relations Act (29 U.S.C. 185).

(B) Any charge under this subsection alleging an unfair labor practice violative of section 8 of the National Labor Relations Act (29 U.S.C. 158) shall be pursued in accordance with section 10 of the National Labor Relations Act (29 U.S.C. 160).

(C) Any suit alleging a violation of any provision of this subsection, to the extent it does not allege a violation of the National Labor Relations Act, may be brought in any district court of the United States having jurisdiction over the parties, without regard to the amount in controversy or the citizenship of the parties.

(b) FORMER FEDERAL EMPLOYEES- (1)(A) An employee of the Corporation that was subject to either the Civil Service Retirement System (referred to in this section as `CSRS') or the Federal Employees' Retirement System (referred to in this section as `FERS') on the day immediately preceding the privatization date shall elect--

(i) to retain the employee's coverage under either CSRS or FERS, as applicable, in lieu of coverage by the Corporation's retirement system, or

(ii) to receive a deferred annuity or lump-sum benefit payable to a terminated employee under CSRS or FERS, as applicable.

(B) An employee that makes an election under subparagraph (A)(ii) shall have the option to transfer the balance in the employee's Thrift Savings Plan account to a defined contribution plan under the Corporation's retirement system, consistent with applicable law and the terms of the Corporation's defined contribution plan.

(2) The Corporation shall pay to the Civil Service Retirement and Disability Fund--

(A) such employee deductions and agency contributions as are required by sections 8334, 8422, and 8423 of title 5, United States Code, for those employees who elect to retain their coverage under either CSRS or FERS pursuant to paragraph (1);

(B) such additional agency contributions as are determined necessary by the Office of Personnel Management to pay, in combination with the sums under subparagraph (A), the `normal cost' (determined using dynamic assumptions) of retirement benefits for those employees who elect to retain their coverage under CSRS pursuant to paragraph (1), with the concept of `normal cost' being used consistent with generally accepted actuarial standards and principles; and

(C) such additional amounts, not to exceed two percent of the amounts under subparagraphs (A) and (B), as are determined necessary by the Office of Personnel Management to pay the cost of administering retirement benefits for employees who retire from the Corporation after the privatization date under either CSRS or FERS, for their survivors, and for survivors of employees of the Corporation who die after the privatization date (which amounts shall be available to the Office of Personnel Management as provided in section 8348(a)(1)(B) of title 5, United States Code).

(3) The Corporation shall pay to the Thrift Savings Fund such employee and agency contributions as are required by section 8432 of title 5, United States Code, for those employees who elect to retain their coverage under FERS pursuant to paragraph (1).

(4) Any employee of the Corporation who was subject to the Federal Employee Health Benefits Program (referred to in this section as `FEHBP') on the day immediately preceding the privatization date and who elects to retain coverage under either CSRS or FERS pursuant to paragraph (1) shall have the option to receive health benefits from a health benefit plan established by the Corporation or to continue without interruption coverage under the FEHBP, in lieu of coverage by the Corporation's health benefit system.

(5) The Corporation shall pay to the Employees Health Benefits Fund--

(A) such employee deductions and agency contributions as are required by section 8906(a)-(f) of title 5, United States Code, for those employees who elect to retain their coverage under FEHBP pursuant to paragraph (4); and

(B) such amounts as are determined necessary by the Office of Personnel Management under paragraph (6) to reimburse the Office of Personnel Management for contributions under section 8906(g)(1) of title 5, United States Code, for those employees who elect to retain their coverage under FEHBP pursuant to paragraph (4).

(6) The amounts required under paragraph (5)(B) shall pay the Government contributions for retired employees who retire from the Corporation after the privatization date under either CSRS or FERS, for survivors of such retired employees, and for survivors of employees of the Corporation who die after the privatization date, with said amounts prorated to reflect only that portion of the total service of such employees and retired persons that was performed for the Corporation after the privatization date.

SEC. 5211. OWNERSHIP LIMITATIONS.

(a) SECURITIES LIMITATIONS- No director, officer, or employee of the Corporation may acquire any securities, or any rights to acquire any securities of the private corporation on terms more favorable than those offered to the general public--

(1) in a public offering designed to transfer ownership of the Corporation to private investors,

(2) pursuant to any agreement, arrangement, or understanding entered into before the privatization date, or

(3) before the election of the directors of the private corporation.

(b) OWNERSHIP LIMITATION- Immediately following the consummation of the transaction or series of transactions pursuant to which 100 percent of the ownership of the Corporation is transferred to private investors, and for a period of three years thereafter, no person may acquire, directly or indirectly, beneficial ownership of securities representing more than 10 percent of the total votes of all outstanding voting securities of the Corporation. The foregoing limitation shall not apply to--

(1) any employee stock ownership plan of the Corporation,

(2) members of the underwriting syndicate purchasing shares in stabilization transactions in connection with the privatization, or

(3) in the case of shares beneficially held in the ordinary course of business for others, any commercial bank, broker-dealer, or clearing agency.

SEC. 5212. 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 uranium concentrates, natural uranium hexafluoride, or enriched uranium in any form) to any person except as consistent with this section.

(b) RUSSIAN HEU- (1) On or before December 31, 1996, the United States Executive Agent under the Russian HEU Agreement shall transfer to the Secretary without charge title to 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 U 235 . Uranium hexafluoride transferred to the Secretary pursuant to this paragraph shall be deemed under United States law for all purposes to be of Russian origin.

(2) Within 7 years of the date of enactment of this Act, the Secretary shall sell, and receive payment for, 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 end use outside the United States;

(C) in 1995 and 1996 to the Russian Executive Agent at the purchase price for use in matched sales pursuant to the Suspension Agreement; or,

(D) in calendar year 2001 for consumption by end users in the United States not prior to January 1, 2002, in volumes not to exceed 3,000,000 pounds U3O8 equivalent per year.

(3) With respect to all enriched uranium delivered to the United States Executive Agent under the Russian HEU Agreement on or after January 1, 1997, the United States Executive Agent shall, upon request of the Russian Executive Agent, enter into an agreement to deliver concurrently to the Russian Executive Agent an amount of uranium hexafluoride equivalent to the natural uranium component of such uranium. An agreement executed pursuant to a request of the Russian Executive Agent, as contemplated in this paragraph, may pertain to any deliveries due during any period remaining under the Russian HEU Agreement. The quantity of such uranium hexafluoride delivered to the Russian Executive Agent shall be based on a tails assay of 0.30 U 235 . 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, with such delivery to take place 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 under U.S. law for all purposes to be of Russian origin. Such uranium hexafluoride may be sold to any person or entity for delivery and use in the United States only as permitted in subsections (b)(5), (b)(6) and (b)(7) of this section.

(4) In the event that the Russian Executive Agent does not exercise its right to enter into an agreement to take 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, or upon request of the Russian Executive Agent, then the United States Executive Agent shall engage an independent entity through a competitive selection process to auction an amount of uranium hexafluoride or U3O8 (in the event that the conversion component of such hexafluoride has previously been sold) equivalent to the natural uranium component of such low-enriched uranium. An agreement executed pursuant to a request of the Russian Executive Agent, as contemplated in this paragraph, may pertain to any deliveries due during any period remaining under the Russian HEU Agreement. Such independent entity shall sell such uranium hexafluoride in one or more lots to any person or entity to maximize the proceeds from such sales, for disposition 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 reasonable 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 under United States law for all purposes to be of Russian origin.

(5) Except as provided in paragraphs (6) and (7), uranium hexafluoride delivered to 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 either directly or indirectly 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
1999
4
2000
6
2001
8
2002
10
2003
12
2004
14
2005
16
2006
17
2007
18
2008
19
2009 and each year thereafter
20.

(6) Uranium hexafluoride delivered to 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 matched sale pursuant to the Suspension Agreement, and in such case shall not be counted against the annual maximum deliveries set forth in paragraph (5).

(7) Uranium hexafluoride delivered to 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.

(8) Nothing in this subsection (b) shall restrict the sale of the conversion component of such uranium hexafluoride.

(9) The Secretary of Commerce shall have responsibility for the administration and enforcement of the limitations set forth in this subsection. The Secretary of Commerce may require any person to provide any certifications, information, or take any action that may be necessary to enforce these limitations. The United States Customs Service shall maintain and provide any information required by the Secretary of Commerce and shall take any action requested by the Secretary of Commerce which is necessary for the administration and enforcement of the uranium delivery limitations set forth in this section.

(10) The President shall monitor the actions of the United States Executive Agent under the Russian HEU Agreement and shall report to the Congress not later than December 31 of each year on the effect the low-enriched uranium delivered under the Russian HEU Agreement is having on the domestic uranium mining, conversion, and enrichment industries, and the operation of the gaseous diffusion plants. Such report shall include a description of actions taken or proposed to be taken by the President to prevent or mitigate any material adverse impact on such industries or any loss of employment at the gaseous diffusion plants as a result of the Russian HEU Agreement.

(c) TRANSFERS TO THE CORPORATION- (1) The Secretary shall transfer to the Corporation without charge up to 50 metric tons of enriched uranium and up to 7,000 metric tons of natural uranium from the Department of Energy's stockpile, subject to the restrictions in subsection (c)(2).

(2) The Corporation shall not deliver for commercial end use in the United States--

(A) any of the uranium transferred under this subsection before January 1, 1998;

(B) more than 10 percent of the uranium (by uranium hexafluoride equivalent content) transferred under this subsection or more than 4,000,000 pounds, whichever is less, in any calendar year after 1997; or

(C) more than 800,000 separative work units contained in low-enriched uranium transferred under this subsection in any calendar year.

(d) INVENTORY SALES- (1) In addition to the transfers authorized under subsections (c) and (e), 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), (c), and (e), 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 material impact on the domestic uranium mining, conversion, or enrichment industry, 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 (d)(2), the Secretary may transfer or sell 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.

(f) SAVINGS PROVISION- Nothing in this chapter shall be read to modify the terms of the Russian HEU Agreement.

SEC. 5213. LOW-LEVEL WASTE.

(a) RESPONSIBILITY OF DOE- (1) The Secretary, at the request of the generator, shall accept for disposal low-level radioactive waste, including depleted uranium if it were ultimately determined to be low-level radioactive waste, generated by the Corporation as a result of the operations of the gaseous diffusion plants or as a result of the treatment of such wastes at a location other than a gaseous diffusion plant. The terms and conditions for such service shall be no more favorable than those the Secretary offers any other generator of such wastes generated by uranium enrichment plants licensed by the Nuclear Regulatory Commission.

(2) The Secretary shall recover the cost of providing the service in paragraph (1), including a pro rata share of any capital costs, by charging the Corporation a fee for such service in an amount equal to the price charged uranium enrichment plants licensed by the Nuclear Regulatory Commission, but in no event shall the Secretary charge any generator more than an amount equal to that which would be charged by commercial, state, regional, or interstate compact entities for disposal of such waste.

(b) AGREEMENTS WITH OTHER PERSONS- The Corporation or any other generator may also enter into agreements for the disposal of low-level radioactive waste subject to subsection (a) with any person other than the Secretary that is authorized by applicable laws and regulations to dispose of such wastes, but shall have no authority under this or any other law to require a State or interstate compact to treat, store, or dispose of such waste in a State or interstate compact facility without the State or compact's consent.

SEC. 5214. AVLIS.

(a) EXCLUSIVE RIGHT TO COMMERCIALIZE- The Corporation shall have the exclusive commercial right to deploy and use any AVLIS patents, processes, and technical information owned or controlled by the Government, upon completion of a royalty agreement with the Secretary.

(b) TRANSFER OF RELATED PROPERTY TO CORPORATION-

(1) IN GENERAL- To the extent requested by the Corporation and subject to the requirements of the Atomic Energy Act of 1954 (42 U.S.C. 2011 et seq.), the President shall transfer without charge to the Corporation all of the right, title, or interest in and to property owned by the United States under control or custody of the Secretary that is directly related to and materially useful in the performance of the Corporation's purposes regarding AVLIS and alternative technologies for uranium enrichment, including--

(A) facilities, equipment, and materials for research, development, and demonstration activities; and

(B) all other facilities, equipment, materials, processes, patents, technical information of any kind, contracts, agreements, and leases.

(2) EXCEPTION- Facilities, real estate, improvements, and equipment related to the gaseous diffusion, and gas centrifuge, uranium enrichment programs of the Secretary shall not transfer under paragraph (1)(B).

(3) EXPIRATION OF TRANSFER AUTHORITY- The President's authority to transfer property under this subsection shall expire upon the privatization date.

(c) LIABILITY FOR PATENT AND RELATED CLAIMS- With respect to any right, title, or interest provided to the Corporation under subsection (a) or (b), the Corporation shall have sole liability for any payments made or awards under section 157 b. (3) of the Atomic Energy Act of 1954 (42 U.S.C. 2187(b)(3)), or any settlements or judgments involving claims for alleged patent infringement. Any royalty agreement under subsection (a) of this section shall provide for a reduction of royalty payments to the Secretary to offset any payments, awards, settlements, or judgments under this subsection.

SEC. 5215. APPLICATION OF CERTAIN LAWS.

(a) OSHA- (1) As of the privatization date, the private corporation shall be subject to and comply with the Occupational Safety and Health Act of 1970 (29 U.S.C. 651 et seq.).

(2) The Nuclear Regulatory Commission and the Occupational Safety and Health Administration shall, within 90 days after the date of enactment of this Act, enter into a memorandum of agreement to govern the exercise of their authority over occupational safety and health hazards at the gaseous diffusion plants, including inspection, investigation, enforcement, and rulemaking relating to such hazards.

(b) ANTITRUST LAWS- For purposes of the antitrust laws, the performance by the private corporation of a `matched import' contract under the Suspension Agreement shall be considered to have occurred prior to the privatization date, if at the time of privatization, such contract had been agreed to by the parties in all material terms and confirmed by the Secretary of Commerce under the Suspension Agreement.

(c) ENERGY REORGANIZATION ACT REQUIREMENTS- (1) The private corporation and its contractors and subcontractors shall be subject to the provisions of section 211 of the Energy Reorganization Act of 1974 (42 U.S.C. 5851) to the same extent as an employer subject to such section.

(2) With respect to the operation of the facilities leased by the private corporation, section 206 of the Energy Reorganization Act of 1974 (42 U.S.C. 5846) shall apply to the directors and officers of the private corporation.

SEC. 5216. AMENDMENTS TO THE ATOMIC ENERGY ACT.

(a) REPEAL- (1) Chapters 22 through 26 of the Atomic Energy Act of 1954 (42 U.S.C. 2297-2297e-7) are repealed as of the privatization date.

(2) The table of contents of such Act is amended as of the privatization date by striking the items referring to sections repealed by paragraph (1).

(b) NRC LICENSING- (1) Section 11v. of the Atomic Energy Act of 1954 (42 U.S.C. 2014v.) is amended by striking `or the construction and operation of a uranium enrichment facility using Atomic Vapor Laser Isotope Separation technology'.

(2) Section 193 of the Atomic Energy Act of 1954 (42 U.S.C. 2243) is amended by adding at the end the following:

`(f) LIMITATION- No license or certificate of compliance may be issued to the United States Enrichment Corporation or its successor under this section or sections 53, 63, or 1701, if the Commission determines that--

`(1) the Corporation is owned, controlled, or dominated by an alien, a foreign corporation, or a foreign government; or

`(2) the issuance of such a license or certificate of compliance would be inimical to--

`(A) the common defense and security of the United States; or

`(B) the maintenance of a reliable and economical domestic source of enrichment services.'.

(3) Section 1701(c)(2) of the Atomic Energy Act of 1954 (42 U.S.C. 2297f(c)(2)) is amended to read as follows:

`(2) 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 Commission, but not less than every 5 years. The Commission shall review any such application and any determination made under subsection (b)(2) shall be based on the results of any such review.'.

(4) Section 1702(a) of the Atomic Energy Act of 1954 (42 U.S.C. 2297f-1(a)) is amended--

(1) by striking `other than' and inserting `including', and

(2) by striking `sections 53 and 63' and inserting `sections 53, 63, and 193'.

(c) JUDICIAL REVIEW OF NRC ACTIONS- Section 189b. of the Atomic Energy Act of 1954 (42 U.S.C. 2239(b)) is amended to read as follows:

`b. The following Commission actions shall be subject to judicial review in the manner prescribed in chapter 158 of title 28, United States Code and chapter 7 of title 5, United States Code:

`(1) Any final order entered in any proceeding of the kind specified in subsection (a).

`(2) Any final order allowing or prohibiting a facility to begin operating under a combined construction and operating license.

`(3) Any final order establishing by regulation standards to govern the Department of Energy's gaseous diffusion uranium enrichment plants, including any such facilities leased to a corporation established under the USEC Privatization Act.

`(4) Any final determination under section 1701(c) relating to whether the gaseous diffusion plants, including any such facilities leased to a corporation established under the USEC Privatization Act, are in compliance with the Commission's standards governing the gaseous diffusion plants and all applicable laws.'.

(d) CIVIL PENALTIES- Section 234 a. of the Atomic Energy Act of 1954 (42 U.S.C. 2282(a)) is amended by--

(1) striking `any licensing provision of section 53, 57, 62, 63, 81, 82, 101, 103, 104, 107, or 109' and inserting: `any licensing or certification provision of section 53, 57, 62, 63, 81, 82, 101, 103, 104, 107, 109, or 1701'; and

(2) by striking `any license issued thereunder' and inserting: `any license or certification issued thereunder'.

(e) REFERENCES TO THE CORPORATION- Following the privatization date, all references in the Atomic Energy Act of 1954 to the United States Enrichment Corporation shall be deemed to be references to the private corporation.

SEC. 5217. AMENDMENTS TO OTHER LAWS.

(a) DEFINITION OF GOVERNMENT CORPORATION- As of the privatization date, 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.

(b) DEFINITION OF THE CORPORATION- Section 1018(1) of the Energy Policy Act of 1992 (42 U.S.C. 2296b-7(1) is amended by inserting `or its successor' before the period.

CHAPTER 2--DEPARTMENT OF ENERGY

SEC. 5221. SALE OF DOE ASSETS

(a) ASSET MANAGEMENT AND DISPOSITION PROGRAM-

(1) IN GENERAL- In order to maximize the use of Department of Energy assets and to reduce overhead and other costs related to asset management at the Department's facilities and laboratories, the Secretary of Energy shall conduct an asset management and disposition program that will result in not less than $225,000,000 in receipts and savings by October 1, 2000.

(2) ITEMS TO BE INCLUDED- The program shall include an inventory of assets in the care of the Department and its contractors; the recovery, reuse, and stewardship of assets; and disposition of a minimum of 1,139,000,000 pounds of fuel, 136,000 tons of chemicals and industrial gases, 557,000 tons of scrap metal, 14,000 radiation sources, 17,000 pieces of major equipment, 11,000 pounds of precious metals, and 91,000,000 pounds of base metals.

(b) FEDERAL PROPERTY AND ADMINSTRATIVE SERVICES ACT- The disposition of assets under this section is not subject to section 202 or 203 of the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 483, 484) or section 13 of the Surplus Property Act of 1944 (50 U.S.C. App. 1622). In order to avoid market disruptions, the Secretary shall consult with appropriate executive agencies with respect to dispositions under this section.

(c) DISPOSITION OF PROCEEDS- After deduction of administrative costs of disposition under this section not to exceed $7,000,000 per year, the remainder of the proceeds from dispositions under this subpart shall be returned to the Treasury as miscellaneous receipts. There shall be established a new receipt account in the Treasury for proceeds of asset sales under this section.

SEC. 5222. SALE OF WEEKS ISLAND OIL.

Notwithstanding section 161 of the Energy Policy and Conservation Act (42 U.S.C. 6241), the Secretary of Energy shall draw down and sell 32,000,000 barrels of oil contained in the Weeks Island Strategic Petroleum Reserve Facility. The Secretary shall, to the greatest extent practicable, sell oil from the reserve in a manner that minimizes the impact of such sale upon supply levels and market forces.

SEC. 5223. LEASE OF EXCESS STRATEGIC PETROLEUM RESERVE CAPACITY.

(a) AMENDMENT- Part B of title I of the Energy Policy and Conservation Act (42 U.S.C. 6231 et seq.) is amended by adding at the end the following:

`USE OF UNDERUTILIZED FACILITIES

`SEC. 168. (a) AUTHORITY- Notwithstanding any other provision of this title, the Secretary, by lease or otherwise, for any term and under such other conditions as the Secretary considers necessary or appropriate, may store in underutilized Strategic Petroleum Reserve facilities petroleum product owned by a foreign government or its representative. Petroleum products stored under this section are not part of the Strategic Petroleum Reserve and may be exported without license from the United States.

`(b) PROTECTION OF FACILITIES- All agreements entered into pursuant to subsection (a) shall contain provisions providing for fees to fully compensate the United States for all costs of storage and removals of petroleum products, including the cost of replacement facilities necessitated as a result of any withdrawals.

`(c) ACCESS TO STORED OIL- The Secretary shall ensure that agreements to store petroleum products for foreign governments or their representatives do not affect the ability of the United States to withdraw, distribute, or sell petroleum from the Strategic Petroleum reserve in response to an energy emergency or to the obligations of the United States under the Agreement on an International Energy Program.

`(d) AVAILABILITY OF FUNDS- Beginning in fiscal year 2001 and in each fiscal year thereafter except for fiscal years 2003 and 2004, 50 percent of the funds resulting from the leasing of Strategic Petroleum Reserve facilities authorized by subsection (a) shall be available to the Secretary of Energy without further appropriation for the purchase of oil for the Strategic Petroleum Reserve.'.

(b) TABLE OF CONTENTS AMENDMENT- The table of contents of part B of title I of the Energy Policy and Conservation Act is amended by adding at the end the following:

`Sec. 168. Use of underutilized facilities.'.

Subtitle C--Natural Resources

CHAPTER 1--DEPARTMENT OF THE INTERIOR CONVEYANCES

SUBCHAPTER A--CALIFORNIA DIRECTED LAND SALE

SEC. 5301. CONVEYANCE OF PROPERTY.

All right, title and interest of the United States in the property 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, and improvements thereon, together with all necessary easements for utilities and ingress and egress to such property, including, but not limited to, the right to improve those easements, are conveyed to the Department of Health Services of the State of California upon the tendering of $500,100 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 this section and, as part of the consideration paid for such property, such conveyance is declared to meet and fully comply with any otherwise 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). The Secretary of the Interior shall issue evidence of title pursuant to this Act notwithstanding any other provision of law.

SUBCHAPTER B--HELIUM RESERVES

SEC. 5311. SHORT TITLE.

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

SEC. 5312. AMENDMENT OF HELIUM ACT.

Except as otherwise expressly provided, whenever in this chapter 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. 5313. 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) IN GENERAL- 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 the Secretary deems fair, reasonable, and necessary.

`(2) LEASEHOLD RIGHTS- The Secretary may grant leasehold rights to any such helium.

`(3) LIMITATION- 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.

`(4) REGULATIONS- Agreements under paragraph (1) may be subject to such regulations as may be prescribed by the Secretary.

`(5) EXISTING RIGHTS- An agreement under paragraph (1) shall be subject to any rights of any affected Federal oil and gas lessee that may be in existence prior to the date of the agreement.

`(6) TERMS AND CONDITIONS- An agreement under paragraph (1) (and any extension or renewal of an agreement) shall contain such terms and conditions as the Secretary may consider appropriate.

`(7) PRIOR AGREEMENTS- 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 on the date of enactment of the Helium Act of 1995 except to the extent that such agreements are renewed or extended after that date.

`(b) STORAGE, TRANSPORTATION AND SALE- The Secretary may store, transport, and sell helium only in accordance with this Act.

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

`(a) STORAGE, TRANSPORTATION AND WITHDRAWAL- The Secretary may store, transport and withdraw crude helium and maintain and operate crude helium storage facilities, in existence on the date of enactment of the Helium Act of 1995 at the Bureau of Mines Cliffside Field, and related helium transportation and withdrawal facilities.

`(b) CESSATION OF PRODUCTION, REFINING, AND MARKETING- Not later than 18 months after the date of enactment of the Helium 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 Act of 1995, except activities described in subsection (a).

`(c) DISPOSAL OF FACILITIES-

`(1) IN GENERAL- Subject to paragraph (5), not later than 24 months after the cessation of activities referred to in section (b) of this section, the Secretary shall designate as excess property and dispose of all facilities, equipment, and other real and personal property, and all interests therein, held by the United States for the purpose of producing, refining and marketing refined helium.

`(2) APPLICABLE LAW- The disposal of such property shall be in accordance with the Federal Property and Administrative Services Act of 1949.

`(3) PROCEEDS- 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).

`(4) COSTS- 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).

`(5) EXCEPTION- Paragraph (1) shall not apply to any facilities, equipment, or other real or personal property, or any interest therein, necessary for the storage, transportation and withdrawal of crude helium or any equipment, facilities, or other real or personal property, required to maintain the purity, quality control, and quality assurance of crude helium in the Bureau of Mines Cliffside Field.

`(d) EXISTING CONTRACTS-

`(1) IN GENERAL- All contracts that were entered into by any person with the Secretary for the purchase by the person from the Secretary of refined helium and that are in effect on the date of the enactment of the Helium Act of 1995 shall remain in force and effect until the date on which the refining operations cease, as described in subsection (b).

`(2) COSTS- Any costs associated with the termination of contracts described in paragraph (1) shall be paid from the helium production fund established under section 6(f).

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

`(a) IN GENERAL- Whenever the Secretary provides helium storage withdrawal or transportation services to any person, the Secretary shall impose a fee on the person to reimburse the Secretary for the full costs of providing such storage, transportation, and withdrawal.

`(b) TREATMENT- All fees received by the Secretary under subsection (a) shall be treated as moneys received under this Act for purposes of section 6(f).'.

SEC. 5314. SALE OF CRUDE HELIUM.

(a) Subsection 6(a) is amended by striking `from the Secretary' and inserting `from persons who have entered into enforceable contracts to purchase an equivalent amount of crude helium from the Secretary'.

(b) Subsection 6(b) is amended--

(1) by inserting `crude' before `helium'; and

(2) by adding the following at the end: `Except as may be required by reason of subsection (a), sales of crude helium under this section shall be in amounts as the Secretary determines, in consultation with the helium industry, necessary to carry out this subsection with minimum market disruption.'.

(c) Subsection 6(c) is amended--

(1) by inserting `crude' after `Sales of'; and

(2) by striking `together with interest as provided in this subsection' and all that follows through the end of the subsection and inserting `all funds required to be repaid to the United States as of October 1, 1995 under this section (referred to in this subsection 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 by--

`(1) dividing the outstanding amount of such repayable amounts by the volume (in million cubic feet) of crude helium owned by the United States and stored in the Bureau of Mines Cliffside Field at the time of the sale concerned, and

`(2) adjusting the amount determined under paragraph (1) by the Consumer Price Index for years beginning after December 31, 1995.'.

(d) Subsection 6(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).'.

(e) Subsection 6(e) is repealed.

(f) Subsection 6(f) is amended--

(1) by striking `(f)' and inserting `(e)(1)'; and

(2) by adding the following at the end:

`(2)(A) 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).

`(B) On 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 general fund of the Treasury.'.

SEC. 5315. ELIMINATION OF STOCKPILE.

Section 8 is amended to read as follows:

`SEC. 8. ELIMINATION OF STOCKPILE.

`(a) STOCKPILE SALES-

`(1) COMMENCEMENT- 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 amounts as would be necessary to dispose of all such helium reserves in excess of 600,000,000 cubic feet on a straight-line basis between such date and January 1, 2015.

`(2) TIMES OF SALE- The sales shall be at such times during each year and in such lots as the Secretary determines, in consultation with the helium industry, to be necessary to carry out this subsection with minimum market disruption.

`(3) PRICE- The price for all sales under paragraph (1), as determined by the Secretary in consultation with the helium industry, shall be such price as will ensure repayment of the amounts required to be repaid to the Treasury under section 6(c).

`(b) DISCOVERY OF ADDITIONAL RESERVES- The discovery of additional helium reserves shall not affect the duty of the Secretary to make sales of helium under subsection (a).'.

SEC. 5316. REPEAL OF AUTHORITY TO BORROW.

Sections 12 and 15 are repealed.

SEC. 5317. 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, (some times 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.

CHAPTER 2--ARCTIC COASTAL PLAIN LEASING AND REVENUE ACT

SEC. 5312. SHORT TITLE.

This chapter may be cited as the 'Arctic Coastal Plain Leasing and Revenue Act of 1995'.

SEC. 5322. DEFINITIONS.

When used in this chapter the term--

(1) `Coastal Plain' means that area identified as such in the map entitled `Arctic National Wildlife Refuge', dated August 1980, as referenced in section 1002(b) of the Alaska National Interest Lands Conservation Act of 1980 (16 U.S.C. 3142(b)(1)) comprising approximately 1, 549,000 acres; and

(2) `Secretary' except as otherwise provided, means the Secretary of the Interior or the Secretary's designee.

SEC. 5333. LEASING PROGRAM FOR LANDS WITHIN THE COASTAL PLAIN.

(a) AUTHORIZATION- The Congress hereby authorizes and directs the Secretary, acting through the Bureau of Land Management in consultation with the Fish and Wildlife Service and other appropriate Federal officers and agencies, to take such actions as are necessary to establish and implement a competitive oil and gas leasing program that will result in an environmentally sound program for the exploration, development, and production of the oil and gas resources of the Coastal Plain and to administer the provisions of this chapter through regulations, lease terms, conditions, restrictions, prohibitions, stipulations and other provisions that ensure the oil and gas exploration, development, and production activities on the Coastal Plain will result in no significant adverse effect on fish and wildlife, their habitat, subsistence resources, and the environment, and shall require the application of the best commercially available technology for oil and gas exploration, development, and production, on all new exploration, development, and production operations, and whenever practicable, on existing operations, and in a manner to ensure the receipt of fair market value by the public for the mineral resources to be leased.

(b) REPEAL- The prohibitions and limitations contained in section 1003 of the Alaska National Interest Lands Conservation Act of 1980 (16 U.S.C. 3143) are hereby repealed.

(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) SOLE AUTHORITY- This chapter shall be the sole authority for leasing on the Coastal Plain. Provided, That nothing in this chapter shall be deemed to expand or limit state and local regulatory authority.

(e) FEDERAL LAND- The Coastal Plain shall be considered `Federal land' for the purposes of the Federal Oil and Gas Royalty Management Act of 1982 .

(f) SPECIAL AREAS- The Secretary, after consultation with the State of Alaska, City of Kaktovik, and the North Slope Borough, is authorized to designate up to a total of 45,000 acres of the Coastal Plain as Special Areas and close such areas to leasing if the Secretary determines that these Special Areas are of such unique character and interest so as to require special management and regulatory protection. The Secretary may, however, permit leasing of all or portions of any Special Areas within the Coastal Plain 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.

(g) LIMITATION ON CLOSED AREAS- The Secretary's sole authority to close lands within the Coastal Plain to oil and gas leasing and to exploration, development, and production is that set forth in this subtitle.

(h) CONVEYANCE- In order to maximize federal revenues by removing clouds on title of lands and clarifying land ownership patterns within the Coastal Plain, the Secretary, notwithstanding the provisions of section 1302(h)(2) of the Alaska National Interest Lands Conservation Act (16 U.S.C. 3192(h)(2)), 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.

SEC. 5334. RULES AND REGULATIONS.

(a) PROMULGATION- The Secretary shall prescribe such rules and regulations as may be necessary to carry out the purposes and provisions of this chapter, including rules and regulations relating to protection of the fish and wildlife, their habitat, subsistence resources, and the environment of the Coastal Plain. Such rules and regulations shall be promulgated no later than fourteen months after the date of enactment of this chapter and shall, as of their effective date, apply to all operations conducted under a lease issued or maintained under the provisions of this chapter and all operations on the Coastal Plain related to the leasing, exploration, development and production of oil and gas.

(b) REVISION OF REGULATIONS- The Secretary shall periodically review and, if appropriate, revise the rules and regulations issued under subsection (a) of this section to reflect any significant biological, environmental, or engineering data which come to the Secretary's attention.

SEC. 5335. ADEQUACY OF THE DEPARTMENT OF THE INTERIOR'S LEGISLATIVE ENVIRONMENTAL IMPACT STATEMENT.

The `Final Legislative Environmental Impact Statement' (April 1987) on the Coastal Plain prepared pursuant to section 1002 of the Alaska National Interest Lands Conservation Act of 1980 (16 U.S.C. 3142) and section 102(2)(C) of the National Environmental Policy Act of 1969 (42 U.S.C. 4332(2)(C)) is hereby found by the Congress to be adequate to satisfy the legal and procedural requirements of the National Environmental Policy Act of 1969 with respect to actions authorized to be taken by the Secretary to develop and promulgate the regulations for the establishment of the leasing program authorized by this chapter, to conduct the first lease sale and any subsequent lease sale authorized by this chapter, and to grant rights-of-way and easements to carry out the purposes of this chapter.

SEC. 5336. LEASE SALES.

(a) LEASE SALES- Lands may be leased pursuant to the provisions of this chapter to any person qualified to obtain a lease for deposits of oil and gas under the Mineral Leasing Act, as amended (30 U.S.C. 181).

(b) PROCEDURES- The Secretary shall, by regulation, establish procedures for--

(1) receipt and consideration of sealed nominations for any area in the Coastal Plain for inclusion in, or exclusion (as provided in subsection (c)) from, a lease sale; and

(2) public notice of and comment on designation of areas to be included in, or excluded from, a lease sale.

(c) LEASE SALES ON COASTAL PLAIN- The Secretary shall, by regulation, provide for lease sales of lands on the Coastal Plain. When lease sales are to be held, they shall occur after the nomination process provided for in subsection (b) of this section. For the first lease sale, the Secretary shall offer for lease those acres receiving the greatest number of nominations, but no less than two hundred thousand acres and no more than three hundred thousand acres shall be offered. If the total acreage nominated is less than two hundred thousand acres, the Secretary shall include in such sale any other acreage which he believes has the highest resource potential, but in no event shall more than three hundred thousand acres of the Coastal Plain be offered in such sale. With respect to subsequent lease sales, the Secretary shall offer for lease no less than two hundred thousand acres of the Coastal Plain. The initial lease sale shall be held within twenty months of the date of enactment of this chapter. The second lease sale shall be held no later than twenty-four months after the initial sale, with additional sales conducted no later than twelve months thereafter so long as sufficient interest in development exists to warrant, in the Secretary's judgment, the conduct of such sales.

SEC. 5337. GRANT OF LEASES BY THE SECRETARY.

(a) IN GENERAL- The Secretary is authorized to grant to the highest responsible qualified bidder by sealed competitive cash bonus bid any lands to be leased on the Coastal Plain upon payment by the lessee of such bonus as may be accepted by the Secretary and of such royalty as may be fixed in the lease, which shall be not less than 12 1/2 per centum in amount or value of the production removed or sold from the lease.

(b) ANTITRUST REVIEW- Following each notice of a proposed lease sale and before the acceptance of bids and the issuance of leases based on such bids, the Secretary shall allow the Attorney General, in consultation with the Federal Trade Commission, thirty days to perform an antitrust review of the results of such lease sale on the likely effects the issuance of such leases would have on competition and the Attorney General shall advise the Secretary with respect to such review, including any recommendation for the nonacceptance of any bid or the imposition of terms or conditions on any lease, as may be appropriate to prevent any situation inconsistent with the antitrust laws.

(c) SUBSEQUENT TRANSFERS- No lease issued under this chapter may be sold, exchanged, assigned, sublet, or otherwise transferred except with the approval of the Secretary. Prior to any such approval the Secretary shall consult with, and give due consideration to the views of, the Attorney General.

(d) IMMUNITY- Nothing in this chapter shall be deemed to convey to any person, association, corporation, or other business organization immunity from civil or criminal liability, or to create defenses to actions, under any antitrust law.

(e) DEFINITIONS- As used in this section, the term--

(1) `antitrust review' shall be deemed an `antitrust investigation' for the purposes of the Antitrust Civil Process Act (15 U.S.C. 1311); and

(2) `antitrust laws' means those Acts set forth in section 1 of the Clayton Act (15 U.S.C. 12) as amended.

SEC. 5338. LEASE TERMS AND CONDITIONS.

An oil or gas lease issued pursuant to this chapter shall--

(1) be for a tract consisting of a compact area not to exceed five thousand seven hundred sixty acres, or nine surveyed or protracted sections which shall be as compact in form as possible.

(2) be for an initial period of ten years and shall be extended for so long thereafter as oil or gas is produced in paying quantities from the lease or unit area to which the lease is committed or for so long as drilling or reworking operations, as approved by the Secretary, are conducted on the lease or unit area;

(3) require the payment of royalty as provided for in section 5337 of this chapter;

(4) require that exploration activities pursuant to any lease issued or maintained under this chapter shall be conducted in accordance with an exploration plan or a revision of such plan approved by the Secretary;

(5) require that all development and production pursuant to a lease issued or maintained pursuant to this chapter shall be conducted in accordance with development and production plans approved by the Secretary;

(6) require posting of bond as required by section 5339 of this chapter;

(7) provide that the Secretary may 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;

(8) contain such provisions relating to rental and other fees as the Secretary may prescribe at the time of offering the area for lease;

(9) provide that the Secretary may direct or assent to the suspension of operations and production under any lease granted under the terms of this chapter in the interest of conservation of the resource or where there is no available system to transport the resource. If such a suspension is directed or assented to by the Secretary, any payment of rental prescribed by such lease shall be suspended during such period of suspension of operations and production, and the term of the lease shall be extended by adding any such suspension period thereto;

(10) provide that whenever the owner of a nonproducing lease fails to comply with any of the provisions of this chapter, or of any applicable provision of Federal or State environmental law, or of the lease, or of any regulation issued under this chapter, such lease may be canceled by the Secretary if such default continues for more than thirty days after mailing of notice by registered letter to the lease owner at the lease owner's record post office address of record;

(11) provide that whenever the owner of any producing lease fails to comply with any of the provisions of this chapter, or of any applicable provision of Federal or State environmental law, or of the lease, or of any regulation issued under this chapter, such lease may be forfeited and canceled by any appropriate proceeding brought by the Secretary in any United States district court having jurisdiction under the provisions of this chapter;

(12) provide that cancellation of a lease under this chapter shall in no way release the owner of the lease from the obligation to provide for reclamation of the lease site;

(13) allow the lessee, at the discretion of the Secretary, to make written relinquishment of all rights under any lease issued pursuant to this chapter. The Secretary shall accept such relinquishment by the lessee of any lease issued under this chapter where there has not been surface disturbance on the lands covered by the lease;

(14) provide that for the purpose of conserving the natural resources of any oil or gas pool, field, or like area, or any part thereof, and in order to avoid the unnecessary duplication of facilities, to protect the environment of the Coastal Plain, and to protect correlative rights, the Secretary shall require that, to the greatest extent practicable, lessees unite with each other in collectively adopting and operating under a cooperative or unit plan of development for operation of such pool, field, or like area, or any part thereof, and the Secretary is also authorized and directed to enter into such agreements as are necessary or appropriate for the protection of the United States against drainage;

(15) require that the holder of a lease or leases on lands within the Coastal Plain shall be fully responsible and liable for the reclamation of lands within the Coastal Plain and any other Federal lands adversely affected in connection with exploration, development, production or transportation activities on a lease within the Coastal Plain by the holder of a lease or as a result of activities conducted on the lease by any of the leaseholder's subcontractors or agents;

(16) provide that the holder of a lease may not delegate or convey, by contract or otherwise, the reclamation responsibility and liability to another party without the express written approval of the Secretary;

(17) provide that the standard of reclamation for lands required to be reclaimed under this chapter be, as nearly as practicable, a condition capable of supporting the uses which the lands were capable of supporting prior to any exploration, development, or production activities, or upon application by the lessee, to a higher or better use as approved by the Secretary;

(18) contain the terms and conditions relating to protection of fish and wildlife, their habitat, and the environment, as required by section 5333(a) of this chapter;

(19) provide that the holder of a lease, its agents, and contractors use best efforts to provide a fair share, as determined by the level of obligation previously agreed to in the 1974 agreement implementing Section 29 of the Federal Agreement and Grant of Right of Way for the Operation of the Trans-Alaska Pipeline, of employment and contracting for Alaska Natives and Alaska Native Corporations from throughout the State; and

(20) contain such other provisions as the Secretary determines necessary to ensure compliance with the provisions of this chapter and the regulations issued under this chapter.

SEC. 5339. BONDING REQUIREMENTS TO ENSURE FINANCIAL RESPONSIBILITY OF LESSEE AND AVOID FEDERAL LIABILITY.

(a) REQUIREMENT- The Secretary shall, by rule or regulation, establish such standards as may be necessary to ensure that an adequate bond, surety, or other financial arrangement will be established prior to the commencement of surface disturbing activities on any lease, to ensure the complete and timely reclamation of the lease tract, and the restoration of any lands or surface waters adversely affected by lease operations after the abandonment or cessation of oil and gas operations on the lease. Such bond, surety, or financial arrangement is in addition to, and not in lieu, of any bond, surety, or financial arrangement required by any other regulatory authority or required by any other provision of law.

(b) AMOUNT- The bond, surety, or financial arrangement shall be in an amount--

(1) to be determined by the Secretary to provide for reclamation of the lease site in accordance with an approved or revised exploration or development and production plan; plus

(2) set by the Secretary consistent with the type of operations proposed, to provide the means for rapid and effective cleanup, and to minimize damages resulting from an oil spill, the escape of gas, refuse, domestic wastewater, hazardous or toxic substances, or fire caused by oil and gas activities.

(c) ADJUSTMENT- In the event that an approved exploration or development and production plan is revised, the Secretary may adjust the amount of the bond, surety, or other financial arrangement to conform to such modified plan.

(d) DURATION- The responsibility and liability of the lessee and its surety under the bond, surety, or other financial arrangement shall continue until such time as the Secretary determines that there has been compliance with the terms and conditions of the lease and all applicable law.

(e) TERMINATION- Within sixty days after determining that there has been compliance with the terms and conditions of the lease and all applicable laws, the Secretary, after consultation with affected Federal and State agencies, shall notify the lessee that the period of liability under the bond, surety, or other financial arrangement has been terminated.

SEC. 5340. OIL AND GAS INFORMATION.

(a) IN GENERAL- (1) Any lessee or permittee conducting any exploration for, or development or production of, oil or gas pursuant to this chapter shall provide the Secretary access to all data and information from any lease granted pursuant to this chapter (including processed and analyzed) obtained from such activity and shall provide copies of such data and information as the Secretary may request. Such data and information shall be provided in accordance with regulations which the Secretary shall prescribe.

(2) If processed and analyzed information provided pursuant to paragraph (1) is provided in good faith by the lessee or permittee, such lessee or permittee shall not be responsible for any consequence of the use or of reliance upon such processed and analyzed information.

(3) Whenever any data or information is provided to the Secretary, pursuant to paragraph (1)--

(A) by a lessee or permittee, in the form and manner of processing which is utilized by such lessee or permittee in the normal conduct of business, the Secretary shall pay the reasonable cost of reproducing such data and information; or

(B) by a lessee or permittee, in such other form and manner of processing as the Secretary may request, the Secretary shall pay the reasonable cost of processing and reproducing such data and information.

(b) REGULATIONS- The Secretary shall prescribe regulations to: (1) assure that the confidentiality of privileged or proprietary information received by the Secretary under this section will be maintained; and (2) set forth the time periods and conditions which shall be applicable to the release of such information.

SEC. 5341. EXPEDITED JUDICIAL REVIEW.

(a) Any complaint seeking judicial review of any provision in this chapter, or any other action of the Secretary under this chapter may be filed in any appropriate district court of the United States, and such complaint must be filed within ninety days from the date of the action being challenged, or after such date if such complaint is based solely on grounds arising after such ninetieth day, in which case the complaint must be filed within ninety days after the complainant knew or reasonably should have known of the grounds for the complaint: Provided, That any complaint seeking judicial review of an action of the Secretary in promulgating any regulation under this chapter may be filed only in the United States Court of Appeals for the District of Columbia.

(b) Actions of the Secretary with respect to which review could have been obtained under this section shall not be subject to judicial review in any civil or criminal proceeding for enforcement.

SEC. 5342. RIGHTS-OF-WAY ACROSS THE COASTAL PLAIN.

Notwithstanding Title XI of the Alaska National Interest Lands Conservation Act of 1980 (16 U.S.C. 3161 et seq.), the Secretary is authorized and directed to grant, in accordance with the provisions of Section 28(c) through (t) and (v) through (y) of the Mineral Leasing Act of 1920 (30 U.S.C. 185), rights-of-way and easements across the Coastal Plain for the transportation of oil and gas under such terms and conditions as may be necessary so as not to result in a significant adverse effect on the fish and wildlife, subsistence resources, their habitat, and the environment of the Coastal Plain. Such terms and conditions shall include requirements that facilities be sited or modified so as to avoid unnecessary duplication of roads and pipelines. The regulations issued as required by section 5334 of this chapter shall include provisions granting rights-of-way and easements across the Coastal Plain.

SEC. 5343. ENFORCEMENT OF SAFETY AND ENVIRONMENTAL REGULATIONS TO ENSURE COMPLIANCE WITH TERMS AND CONDITIONS OF LEASE.

(a) RESPONSIBILITY OF THE SECRETARY- The Secretary shall diligently enforce all regulations, lease terms, conditions, restrictions, prohibitions, and stipulations promulgated pursuant to this chapter.

(b) RESPONSIBILITY OF HOLDERS OF LEASE- It shall be the responsibility of any holder of a lease under this chapter to--

(1) maintain all operations within such lease area in compliance with regulations intended to protect persons and property on, and fish and wildlife, their habitat, subsistence resources, and the environment of, the Coastal Plain; and

(2) allow prompt access at the site of any operations subject to regulation under this chapter to any appropriate Federal or State inspector, and to provide such documents and records which are pertinent to occupational or public health, safety, or environmental protection, as may be requested.

(c) ON-SITE INSPECTION- The Secretary shall promulgate regulations to provide for--

(1) scheduled onsite inspection by the Secretary, at least twice a year, of each facility on the Coastal Plain which is subject to any environmental or safety regulation promulgated pursuant to this chapter or conditions contained in any lease issued pursuant to this chapter to assure compliance with such environmental or safety regulations or conditions; and

(2) periodic onsite inspection by the Secretary at least once a year without advance notice to the operator of such facility to assure compliance with all environmental or safety regulations.

SEC. 5344. NEW REVENUES.

(a) DISTRIBUTION OF REVENUES- (1) Notwithstanding any other provision of law, all revenues received by the Federal Government from competitive bids, sales, bonuses, royalties, rents, fees, or interest derived from the leasing of oil and gas within the Coastal Plain shall be deposited into the Treasury of the United States, solely as provided in this subsection.

(2) Fifty percent of all revenues referred to in paragraph (1) shall be paid by the Secretary of the Treasury semiannually to the State of Alaska, on March 30 and September 30 of each year.

(3)(A) The Secretary of the Treasury is directed to monitor the revenues deposited into the Treasury from oil and gas leases issued under the authority of this chapter. Except as provided in subparagraph (B), all monies deposited into the Treasury from such oil and gas leases in excess of $2,600,000,000 shall be distributed as follows:

(i) Fifty percent shall be paid to the State of Alaska in the manner provided in this subsection; and

(ii) Fifty percent shall be deposited into a special fund established in the Treasury of the United States known as the `National Park, Refuge, and Fish and Wildlife Renewal and Protection Fund (hereinafter in this section referred to as the `renewal fund').

(B) Deposits into the renewal fund shall not exceed $250,000,000 over the life of the renewal fund. Monies in excess of such amount shall be deposited as miscellaneous receipts in the Treasury of the United States.

(C) Deposits into the renewal fund shall remain available until expended. The Secretary of the Treasury is directed to develop procedures for use of the renewal fund to ensure accountability and demonstrated results.

(b) USE OF RENEWAL FUND- Monies from the renewal fund shall be made available to the Secretary of the Interior, without further appropriation, at the beginning of each fiscal year in which funds are available, and shall be expended by the Secretary as follows:

(1) Twenty-five percent shall be used for infrastructure needs at units of the National Park System, including but not limited to, facility refurbishment, repair and replacement, interpretive media and exhibit repair and replacement, and Infrastructure projects associated with park resource protection;

(2) Twenty-five percent shall be used for infrastructure needs at units of the National Wildlife Refuge System, including but not limited to, facility refurbishment, repair and replacement, interpretive media and exhibit repair and replacement, and infrastructure projects associated with refuge resource protection;

(3) Twenty-five percent shall be used for acquisition of important habitat lands for threatened or endangered species from owners of private property. Such lands shall be acquired solely on a willing seller basis and shall be managed by the Secretary 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); and

(4) Twenty-five percent shall be available for wetlands projects in accordance with the applicable provision of the North American Wetlands Conservation Act (16 U.S.C. 4401 et seq.).

(c) COMMUNITY ASSISTANCE- There is hereby established a Community Assistance Fund in the Treasury into which shall be deposited $30,000,000 from revenues derived from the federal share of the first lease sale authorized under this chapter. The Secretary of the Treasury shall invest the funds in the Community Assistance Fund in interest bearing government securities. No more than $5,000,000 per year from the Community Assistance Fund, shall be available to the Secretary for distribution, upon application and without further appropriation, to organized boroughs, other municipal subdivisions of the State of Alaska, and recognized Indian Reorganization Act entities which are directly impacted by the exploration and production of oil and gas on the Coastal Plain authorized by this chapter to provide public and social services and facilities required in connection with such activities.

CHAPTER 3--WATER PROJECTS

SUBCHAPTER A--IRRIGATION PREPAYMENT

SEC. 5351. AUTHORIZATION FOR PREPAYMENT OF CONSTRUCTION CHARGES.

Subsection 213(a) of the Reclamation Reform Act of 1982 (96 Stat. 1269, 43 U.S.C. 390mm(a)) is amended:

(1) by adding at the beginning:

`Notwithstanding any provision of Reclamation law or limitation contained in any repayment or water service contract, any person or district holding such a contract or receiving water under such a contract with the United States may prepay the construction costs referred to in this section either through accelerated or lump sum payments. For the purposes of such prepayment only, the project to which such contract applies is declared to be complete and the Secretary shall determine the repayment obligations associated with the construction costs of the project facilities so that accelerated payments or a lump sum payment may be made. The amount of any prepayment shall be calculated by discounting the remaining payments due under a contract in accordance with the guidelines set forth in Circular A-129 issued by the Office of Management and Budget: Provided, That the discount shall be adjusted by any amounts necessary to compensate the Federal Government for the direct or indirect loss of future tax revenues if the individual or district plans to use federally tax-exempt financing for such prepayment.';

(2) by striking `lands in a district' and inserting: `lands in a district, or lands owned or leased by a person';

(3) by striking `obligation of a district' and inserting: `obligation of a district or a person';

(4) by striking `enactment of this Act.' and inserting: `enactment of this Act or as otherwise provided for in this section. Any additional capital costs incurred after the date of such prepayment shall be recoverable as a separate obligation and shall not be considered to be a new or supplemental benefit for the purposes of this act nor cause the full cost pricing limitation of this Act or the ownership limitations contained in any provision of federal reclamation law to apply to the lands to which such capital costs apply.'.

SEC. 5352. CONFORMING AMENDMENT.

Subsection 213 (c) of the Reclamation Reform Act of 1982 (43 U.S.C. 390 mm (c)) is repealed.

SUBCHAPTER B--HETCH HETCHY

SEC. 5353. HETCH HETCHY DAM.

Section 7 of the Act of December 19, 1913 (38 Stat. 242, chapter 4), is amended--

(1) by striking `$30,000' in the first sentence and inserting `$2,000,000'; 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.'.

SUBCHAPTER C--COLLBRAN PROJECT

SEC. 5355. COLLBRAN PROJECT.

(a) SHORT TITLE- This subchapter may be cited as the `Collbran Project Unit Conveyance Act'.

(b) DEFINITIONS- For purposes of this subchapter:

(1) DISTRICTS- The term `Districts' means the Ute Water Conservancy District and the Collbran Conservancy District (including their successors and assigns), which are political subdivisions of the State of Colorado.

(2) FEDERAL RECLAMATION LAWS- The term `Federal reclamation laws' means the Act of June 17, 1902 and Acts amendatory thereof or supplementary thereto (32 Stat. 388, chapter 1093; 43 U.S.C. 371 et seq.) (including regulations adopted pursuant to those Acts).

(3) PROJECT- The term `Project' means the Collbran Reclamation Project, as constructed and operated under the Act of July 3, 1952 (66 Stat. 325, chapter 565), including all property, equipment, and assets of or relating to the Project that are owned by the United States, including--

(A) Vega Dam and Reservoir (but not including The Vega Recreation Facilities);

(B) Leon-Park Dams and Feeder Canal;

(C) Southside Canal;

(D) East Fork Diversion Dam and Feeder Canal;

(E) Bonham-Cottonwood Pipeline;

(F) Snowcat Shed and Diesel Storage;

(G) Upper Molina Penstock and Power Plant;

(H) Lower Molina Penstock and Power Plant;

(I) the diversion structure in the tailrace of the Lower Molina Power Plant;

(J) all substations and switchyards;

(K) a non-exclusive easement for the use of existing easements or rights-of-way owned by the United States on or across nonfederal lands which are necessary for access to Project facilities;

(L) title to lands reasonably necessary for all Project facilities except for land described in subparagraph (K) or subsection (c)(1)(B) or (C);

(M) all permits and contract rights held by the Bureau of Reclamation, including, without limitation, contract or other rights relating to the operation, use, maintenance, repair, or replacement of the water storage reservoirs located on the Grand Mesa which are operated as a part of the Project;

(N) all equipment, parts inventories, and tools;

(O) all additions, replacements, betterments, and appurtenances to any of the above; and

(P) a copy of all data, plans, designs, reports, records, or other materials, whether in writing or in any form of electronic storage relating specifically to the Project.

(4) VEGA RECREATION FACILITIES- The term `Vega Recreation Facilities' includes, but is not limited to, buildings, campgrounds, picnic areas, parking lots, fences, boat docks and ramps, electrical lines, water and sewer systems, trash and toilet facilities, roads and trails, and other structures and equipment used for State park purposes at and near Vega Reservoir such as recreation, maintenance and daily and overnight visitor use, and lands above the high water level of Vega Reservoir within the area previously defined by the Department of the Interior as the `Reservoir Area Boundary' which have not historically been utilized for Collbran Project water storage and delivery facilities, together with an easement for public access for recreational purposes to Vega Reservoir and the water surface thereof, and construction, operation, maintenance and replacement of such recreation facilities below the high water line. Such facilities shall also include improvements constructed or added as a result of the agreements referred to in section (c)(6).

(c) CONVEYANCE OF THE COLLBRAN PROJECT-

(1) IN GENERAL-

(A) CONVEYANCE TO DISTRICTS- The Secretary of the Interior shall convey to the Districts all right, title, and interest of the United States in and to the Project, as described in subsection (b)(3), by quitclaim deed and bill of sale, without warranties, in the last quarter of fiscal year 2000, subject only to the requirements of this section. Until such conveyance occurs, the Bureau of Reclamation shall continue to provide for the operation, maintenance, repair, and replacement of Project facilities and the storage reservoirs on the Grand Mesa to the extent such responsibilities are the responsibility of the Bureau of Reclamation and have not been delegated to the Districts prior to the date of enactment of this Act or are delegated or transferred to the Districts by agreement thereafter, so that at the time of conveyance such facilities are in the same condition as, or better condition than, the condition of the facilities on the date of enactment of this Act.

(B) EASEMENTS ON NATIONAL FOREST SYSTEM LANDS- The Secretary of Agriculture shall grant, in the last quarter of fiscal year 2000, subject only to the requirements of this section; (i) a non-exclusive easement on and across National Forest System lands to the Districts for ingress and egress on existing access routes to each existing component of the Project and to the existing storage reservoirs on the Grand Mesa which are operated as a part of the Project; (ii) a non-exclusive easement on National Forest System lands for the operation, use, maintenance, repair, and replacement, but not enlargement, of the existing storage reservoirs on the Grand Mesa to the owners and operators of such reservoirs which are operated as a part of the Project; which easement may be exercised in the event that the existing land use authorizations for such storage reservoirs are restricted, terminated, relinquished, or abandoned, and which easement shall not be subject to conditions or requirements that interfere with or limit the use of such reservoirs for water supply or power purposes; and (iii) a non-exclusive easement to the Districts for the operation, use, maintenance, repair, and replacement, but not enlargement, of those components of Project facilities which are located on National Forest System lands, subject to the requirement that the Districts shall provide reasonable notice to and the opportunity for consultation with the designated representative of the Secretary of Agriculture for non-routine, non-emergency activities that occur on such easements.

(C) EASEMENTS TO DISTRICTS FOR SOUTHSIDE CANAL- The Secretary of the Interior shall grant to the Districts, in the last quarter of fiscal year 2000, subject only to the requirements of this section, (i) a non-exclusive easement on and across lands administered by agencies within the Department of the Interior for ingress and egress on existing access routes to and along the Southside Canal, and (ii) a non-exclusive easement for the operation, use, maintenance, repair, and replacement of the Southside Canal, subject to the requirement that the Districts shall provide reasonable notice to and the opportunity for consultation with the designated representative of the Secretary of the Interior for non-routine, non-emergency activities that occur on such easements.

(2) RESERVATION- The transfer of rights and interests pursuant to paragraphs (1)(A), (B), and (C) shall reserve to the United States all minerals, including hydrocarbons, and a perpetual right of public access over, across, under, and to the portions of the Project which on the date of enactment of this Act were open to public use for fishing, boating, hunting, and other outdoor recreation purposes and other public uses such as grazing, mineral development and logging: Provided, That the United States may allow for continued public use and enjoyment of such portions of the Project for recreational activities and other public uses conducted as of the date of enactment of this Act.

(3) CONVEYANCE TO STATE OF COLORADO- All right, title, and interest in the Vega Recreation Facilities shall remain in the United States until the terms of the agreements referred to in paragraph (6) have been fulfilled by the United States. At such time, all right, title, and interest in the Vega Recreation Facilities shall be conveyed by the Secretary of the Interior to the State of Colorado, Division of Parks and Outdoor Recreation.

(4) PAYMENT-

(A) IN GENERAL- At the time of transfer, the Districts shall pay to the United States $12,900,000 ($12,300,000 of which represents the net present value of the outstanding repayment obligations for the Project), of which--

(i) $12,300,000 shall be deposited in the general fund of the United States Treasury; and

(ii) $600,000 shall be deposited in a special account in the United States Treasury and shall be available to the United States Fish and Wildlife Service, Region 6, without further appropriation, for use in funding Colorado operations and capital expenditures associated with the Grand Valley Water Management Project for the purpose of recovering endangered fish in the Upper Colorado River Basin, as identified in the Recovery Implementation Program for Endangered Fish Species in the Upper Colorado River Basin, or such other component of the Recovery Implementation Program within Colorado that is selected with the concurrence of the Governor of the State of Colorado.

(B) SOURCE OF FUNDS- Funds for the payment to the extent of the amount specified in subparagraph (A) shall not be derived from the issuance or sale, prior to the conveyance, of State or local bonds the interest on which is exempt from taxation under section 103 of the Internal Revenue Code of 1986.

(5) OPERATION OF PROJECT-

(A) IN GENERAL- The Project was authorized and constructed to place water to beneficial use for authorized purposes within the State of Colorado. The Project shall be operated and used by the Districts for a period of 40 years after the date of enactment of this Act for the purposes for which the Project was authorized under the Act of July 3, 1952 (66 Stat. 325, chapter 565). The Districts shall attempt to the extent practicable, taking into consideration historic Project operations, to notify the State of Colorado of changes in historic Project operations which may adversely affect State park operations.

(B) REQUIREMENTS- During the 40-year period described in subparagraph (A)--

(i) the Districts shall annually submit to the Secretary of Agriculture and the Colorado Department of Natural Resources a plan for operation of the Project, which plan shall--

(I) report on Project operations for the previous year;

(II) provide a description of the manner of Project operations anticipated for the forthcoming year, which shall be prepared after consultation with the designated representatives of the Secretary of Agriculture, the Board of County Commissioners of Mesa County, Colorado, and the Colorado Department of Natural Resources; and

(III) certify that the Districts have operated and will operate and maintain the Project facilities in accordance with sound engineering practices; and

(ii) subject to subsection (d), all electric power generated by operation of the Project shall be made available to and be marketed by the Western Area Power Administration (including its successors or assigns).

(6) AGREEMENTS- Conveyance of the Project shall be subject to the agreements between the United States and the State of Colorado dated August 22, 1994, and September 23, 1994, relating to the construction and operation of recreational facilities at Vega Reservoir, which agreements shall continue to be performed by the parties thereto according to the terms of the agreements.

(d) OPERATION OF THE POWER COMPONENT-

(1) CONFORMITY TO HISTORIC OPERATIONS- The power component and facilities of the Project shall be operated in substantial conformity with the historic operations of the power component and facilities (including recent operations in a peaking mode).

(2) POWER MARKETING-

(A) EXISTING MARKETING ARRANGEMENT- The Post-1989 Marketing Criteria, which provide for the marketing of power generated by the power component of the Project as part of the output of the Salt Lake City Area Integrated Projects, shall no longer be binding on the Project upon conveyance of the Project under subsection (c)(1).

(B) AFTER TERMINATION OF EXISTING MARKETING ARRANGEMENT-

(i) IN GENERAL- After the conveyance, the Districts shall offer all power produced by the power component of the Project to the Western Area Power Administration or its successors or assigns (referred to in this section as `Western'), which, in consultation with its affected preference customers, shall have the first right to purchase such power at the rates established in accordance with clause (ii). If Western declines to purchase the power after consultation with its affected preference customers, such power shall then be offered at the same rates first to Western's preference customers located in the Salt Lake City Area Integrated Projects marketing area (referred to in this section as the `SLCAIP preference customers'). Thereafter, such power may be sold to any other party: Provided, however, That no such sale may occur at rates less than rates established in accordance with clause (ii) unless such power is first offered at such lesser rate first to Western and then to its SLCAIP preference customers.

(ii) The rate for power initially offered to Western and its SLCAIP preference customers under this paragraph shall not exceed that required to produce revenues sufficient to provide for

(I) annual debt service and/or recoupment of the cost of capital for the amount specified in subsection (c)(4)(A)(i) of this section, less the sum of $310,000 (which is the net present value of the outstanding repayment obligation of the Collbran Conservancy District), and

(II) the cost of operation, maintenance, and replacement of the power component of the Project.

Such costs and rate shall be determined in a manner consistent with the current principles followed by the Secretary of the Interior and by Western in its annual power and repayment study.

(e) LICENSE-

(1) Prior to the conveyance of the Project to the Districts, the Commission shall issue to the Districts a license or licenses as appropriate under part I of the Federal Power Act, as amended, (16 U.S.C. 791 et seq.), authorizing for a term of 40 years the continued operation and maintenance of the power component of the Project.

(2) The license issued pursuant to subsection (1):

(A) shall be for the purpose of operating, using, maintaining, repairing, and replacing the power component of the Project as authorized by the Act of July 3, 1952 (66 Stat. 325, chapter 565);

(B) shall be conditioned upon the requirement that the power component of the project continue to be operated and maintained in accordance with the authorized purposes of the project;

(C) shall be subject only to the provisions of Part I of the Federal Power Act, except the word `constructed' in section 3(10); the four 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 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 shall not be subject to the standard `L-Form' license conditions, published at 54 FPC 1792-1928 (1975), the Federal Land Policy and Management Act (43 U.S.C. 1701 et seq.), as amended, section 2402 of the Energy Policy Act of 1992 (16 U.S.C. 797c), the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.), the Endangered Species Act of 1973 (16 U.S.C. 1531 et seq.), the Wild and Scenic Rivers Act (16 U.S.C. 1271 et seq.), the Federal Water Pollution Control Act (commonly known as the `Clean Water Act') (33 U.S.C. 1251 et seq.), the National Historic Preservation Act (16 U.S.C. 470 et seq.), the Coastal Zone Management Act of 1972 (16 U.S.C. 1451 et seq.), the Fish and Wildlife Coordination Act (16 U.S.C. 661 et seq.), or any other Act otherwise applicable to the licensing of the project.

(3) The license issued under paragraph (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).

(4) Any power site reservation established by the President, the Secretary 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 boundaries of the project shall be vacated by operation of law upon issuance of the license for the project.

(5) 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 the project upon expiration of the license issued under this section.

(6) For purposes of this section, `Commission' means the Federal Energy Regulatory Commission.

(7) The operation of the Project shall be subject to all applicable state and federal laws subsequent to the issuance of the license pursuant to paragraph (1).

(f) INAPPLICABILITY OF NEPA- Neither the conveyance of the Project nor the issuance of easements pursuant to this section constitutes a major Federal action within the meaning of the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.), including any regulations issued under such Act.

(g) INAPPLICABILITY OF PRIOR AGREEMENTS AND OF FEDERAL RECLAMATION LAWS- On conveyance of the Project to the Districts--

(1) the Repayment Contract dated May 27, 1957, as amended April 12, 1962, between the Collbran Conservancy District and the United States, and the Contract for use of Project facilities for Diversion of Water dated January 11, 1962, as amended November 10, 1977, between the Ute Water Conservancy District and the United States, shall be terminated and of no further force or effect; and

(2) the Project shall no longer be subject to or governed by the Federal reclamation laws.

(h) DISTRICTS' LIABILITY- The Districts shall be liable, to the extent allowed under State law, for all acts or omissions relating to the operation and use of the Project by the Districts that occur subsequent to the conveyance under section (c), including damages to Federal lands or facilities which result from the failure of Project facilities.

(i) EFFECT ON STATE LAW- Nothing in this section shall be construed to impair the effectiveness of any State or local law (including regulations) relating to land use.

(j) TREATMENT OF SALES FOR PURPOSES OF CERTAIN LAWS- The sales of assets under this subchapter 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).

SUBCHAPTER D--SLY PARK

SEC. 5356. SLY PARK.

(a) SHORT TITLE- This subchapter may be cited as the `Sly Park Unit Conveyance Act'.

(b) DEFINITIONS- For purposes of this subchapter:

(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 Act entitled `An Act to authorize the American River Basin development, California, for irrigation and reclamation, and for other purposes', approved October 14, 1949 (63 Stat. 852 chapter 690), 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, on or before December 31, 1997, and upon receipt of the payment for the original construction debt described in paragraph (2), sell and convey to the El Dorado Irrigation District all right, title, and interest of the United States in and to the Sly Park Unit. At the time the Sly Park Unit is conveyed, the Secretary shall also transfer and assign to the District 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.

(2) SALE PRICE- The sale price for the Sly Park Unit shall be $3,993,982, which is the outstanding balance for the original construction of the Sly Park Unit payable to the United States. Payment shall be deposited as miscellaneous receipts in the Treasury and credited to the Central Valley Project Restoration Fund. Payment of such price shall extinguish all payment obligations under contract numbered 14-06-200-949 between the District and the Secretary.

(d) 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).

(e) CERTAIN CONTRACT OBLIGATIONS NOT AFFECTED- The sale of the Sly Park Unit under this section shall not affect the payment obligations of the District under the contract between the District and the Secretary numbered 14-06-200-7734, as amended by contracts numbered 14-06-200-4282A and 14-06-200-8536A.

(f) TREATMENT OF SALES FOR PURPOSES OF CERTAIN LAWS- The sales of assets under this subchapter 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).

SUBCHAPTER E--CENTRAL UTAH PROJECT

SEC. 5357. 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 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 municipal and industrial water delivery facilities for which repayment is provided pursuant to such contract, under terms and conditions similar to those contained in the supplemental contract that provided for the prepayment of the Jordan Aqueduct dated October 28, 1993. The prepayment may be provided in several installments to reflect substantial completion of the delivery facilities being prepaid and may not be adjusted on the basis of the type of prepayment financing utilized by the District: Provided That the District shall complete all payments authorized pursuant to this section by the end of fiscal year 2002.'.

CHAPTER 4--FEDERAL OIL AND GAS ROYALTIES

SEC. 5361. DEFINITIONS.

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 issues an oil and gas lease or any person to whom operating rights in a lease 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 Department of the Interior agency process in which a demand, decision or order issued by the Secretary or a delegated State is subject to appeal or has been appealed;

`(19) `assessment' means any fee or charge levied or imposed by the Secretary or a delegated State 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 delegated State 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) `delegated State' means a State which, pursuant to an agreement or agreements under section 205, performs authorities, duties, responsibilities, or activities of the Secretary which may be performed by a State under the Constitution of the United States for all lands within the State, including, but not limited to--

`(A) activities under sections 111 and 115;

`(B) collection, audit, lease and post-lease management activities, and applicable enforcement activities;

`(C) inspections (including activities described in section 108;

`(D) approval of pooling, unitization, and communitization agreements; and

`(E) investigations;

`(23) `demand' means--

`(A) an order to pay issued by the Secretary or the applicable delegated State that has a reasonable basis to conclude that the obligation in the amount of the demand is due and owing; or

`(B) a separate written request by a lessee which asserts an obligation due the lessee that has a reasonable basis to conclude that the obligation in the amount of the demand is due and owing, but does not mean any royalty or production report, or any information contained therein, required by the Secretary or a delegated State;

`(24) `obligation' means--

`(A) any duty of the Secretary or, if applicable, a delegated State--

`(i) to take oil or gas royalty in kind at or near the lease (unless the lease expressly provides for delivery at a different location); 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 at or near the lease (unless the lease expressly provides for delivery at a different location); 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;

`(25) `order to pay' means a written order issued by the Secretary or the applicable delegated State which--

`(A) asserts a specific, definite, and quantified obligation claimed to be due, and

`(B) specifically identifies the obligation by lease, production month and monetary amount of such obligation claimed to be due and 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 a delegated State;

`(26) `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;

`(27) `payment' means satisfaction, in whole or in part, of an obligation;

`(28) `penalty' means a statutorily authorized civil fine levied or imposed for a violation of this Act, any mineral leasing law, or a term or provision of a lease administered by the Secretary;

`(29) `refund' means the return of an overpayment;

`(30) `State concerned' means, with respect to a lease, a State which receives a portion of royalties or other payments under the mineral leasing laws from such lease;

`(31) `underpayment' means any payment or nonpayment by a lessee that is less than the amount legally required to be paid on an obligation; and

`(32) `United States' means the United States Government and any department, agency, or instrumentality thereof, the several States, the District of Columbia, and the territories of the United States.'.

SEC. 5362. MAXIMIZING RECEIPTS THROUGH STATE EFFORTS.

(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) In order to provide incentives to States to maximize the amount of oil and gas receipts collected on lease obligations within the six-year period of limitations, and consequently to maximize the Federal share of such receipts to the United States Treasury, upon written request of a State, the State, pursuant to an agreement or agreements and consistent with subsection (c), may perform all or part of the authorities, duties, responsibilities, and activities of the Secretary under this Act which may be delegated to a State under the Constitution of the United States for all Federal lands within the State. The delegated State shall assume and perform the authorities, duties, responsibilities, or activities delegated under this section. To avoid duplication of effort, any authority, duty, responsibility, or activity delegated to a State under this Act with respect to all Federal lands within the State may not be carried out by the Secretary. Under any such agreement, the Secretary shall share oil or gas royalty management information.'.

(b) DETERMINATION- Section 205(b) of the Federal Oil and Gas Royalty Management Act of 1982 (30 U.S.C. 1735(b)) is amended by striking `is authorized to' and inserting `shall'.

(c) FEDERAL-STATE ROYALTY COLLECTION EFFORTS- Subsection (c) section 205 of the Federal Oil and Gas Royalty Management Act of 1982 (30 U.S.C. 1735) is amended by striking `which define' and all that follows and inserting `within 18 months after the date of enactment of section 115, under which States may perform the authorities, duties, responsibilities, and activities under this title which are subject to delegation, based on the recommendations of the States concerned following consultation with affected persons. If the Secretary decides not to follow any recommendations supported by all States concerned, the Secretary shall justify such decision within 30 days after making such decision. In carrying out this section the Secretary shall provide for reasonable flexibility to a State to perform any authority, duty, responsibility or activity delegated hereunder in a more efficient and cost-effective manner and provide the States concerned a direct role in determining such requirements, procedures and policies. To ensure efficient and timely collections of royalties pursuant to this Act, the delegated States shall provide--

`(1) for the effective and efficient performance of any authority, duty, responsibility or activity delegated under this Act;

`(2) for the consistent and uniform performance among the delegated States of any authority, duty, responsibility or activity delegated under this Act;

`(3) for valuation under the terms of the leases and applicable Federal statutes; and

`(4) for uniform reporting form and reporting requirements for all Federal lessees, unless the State and all affected parties otherwise agree.'.

(d) PERFORMANCE- Subsection (d) of section 205 of the Federal Oil and Gas Royalty Management Act of 1982 (30 U.S.C. 1735) is amended by striking `, pertaining' and all that follows and inserting the following: `for requirements pertaining to records and accounts to be maintained and reporting procedures to be required by delegated States under this section. The records and accounts under such reporting procedures shall be sufficient to allow the Secretary to monitor the performance of any delegated State under this section. The applicable delegated State and the Secretary shall agree to terms and conditions for inclusion into an agreement to perform all or part of the authorities, duties, responsibilities, and activities under this title consistent with subsection (c).'.

(e) STATE ACTIONS- Section 204 of the Federal Oil and Gas Royalty Management Act of 1982 (30 U.S.C. 1734) is amended by adding at the end the following:

`(d) With respect to enforcement of an obligation under this Act, a State bringing an action under this section shall enjoy no greater rights than the Secretary enjoys under this Act.'.

(f) SAVINGS PROVISION- Nothing in the amendments made by this section shall impair any agreement, or any extension thereof, existing under section 205 as in effect on the day before the date of enactment of this Act. Following enactment of this Act, any State which is a party to an existing agreement under such section under which the State has been delegated audit or inspection responsibility, may issue orders to pay, subpoenas, or notices to perform restructured accounting and may continue to perform audits or inspections under terms and conditions consistent with the Federal Oil and Gas Royalty Management Act of 1982 (30 U.S.C. 1701 et seq.), as amended by this chapter.

(g) RECEIPTS- Section 205(f) of the Federal Oil and Gas Royalty Management Act of 1982 (30 U.S.C. 1735(f)) is amended by adding at the end the following: `Such costs shall be allocable for the purposes of section 35(b) of the Act entitled `An Act to promote the mining of coal, phosphate, oil, oil shale, gas, and sodium on the public domain', approved February 25, 1920 (commonly known as the `Mineral Leasing Act') (30 U.S.C. 191(b)) to the administration and enforcement of laws providing for the leasing of any onshore lands or interests in land owned by the United States. The Secretary shall compensate any State in the next succeeding fiscal year for the aggregate amount of such costs incurred but not compensated due to such allocation for the current fiscal year. All money received from sales, bonuses, royalties, and interest, including money claimed to be due and owing pursuant to a delegation under this section, shall be payable and paid to the Treasury of the United States.'.

SEC. 5363. SECRETARIAL AND DELEGATED STATES' ACTIONS AND 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. SECRETARIAL AND DELEGATED STATES' ACTIONS AND LIMITATION PERIODS.

`(a) IN GENERAL- All duties, responsibilities, and activities with respect to a lease shall be performed by the Secretary, delegated States, and lessees in a timely manner.

`(b) LIMITATION PERIOD-

`(1) 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. The Secretary, a delegated State, or a lessee (A) shall not take any 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; and (B) shall not pursue any other equitable or legal remedy, whether under statute or common law, with respect to an action on or an enforcement of said obligation.

`(2) The limitations set forth in sections 2401, 2415, 2416, and 2462 of title 28, United States Code and section 42 of the Mineral Leasing Act (30 U.S.C. 226-2) shall not apply to any obligation to which this Act applies. Section 3716 of title 31, United States Code, may be applied to an obligation the enforcement of which is not barred by this Act, but may not be applied to any obligation the enforcement of which is barred by this Act.

`(c) 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 any royalty obligation for any given 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.

`(d) TOLLING OF LIMITATION PERIOD- The running of the limitation period under subsection (b) shall not be suspended, tolled, extended, or enlarged for any obligation for any reason by any action, including an action by the Secretary or a delegated State, other than the following:

`(1) TOLLING AGREEMENT- A written agreement executed during the limitation period between the Secretary or a delegated State and a lessee which tolls the limitation period for the amount of time during which the agreement is in effect.

`(2) SUBPOENA-

`(A) The issuance of a subpoena to a lessee in accordance with the provisions of subsection (B)(i) 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 (i) the lessee has produced such subpoenaed records for the subject obligation, (ii) the Secretary or a delegated State 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 (iii) a court has determined in a final decision that such records are not required to be produced, whichever occurs first.

`(B)(i) A subpoena for the purposes of this section which requires a lessee to produce records necessary to determine the proper reporting and payment of an obligation due the Secretary may be issued 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 to any other person. If a State has been delegated authority pursuant to section 205, the State, acting through the highest elected State official having ultimate authority over the collection of royalties from leases on Federal lands within the state, may issue such subpoena, but may not delegate such authority to any other person.

`(ii) A subpoena described in clause (i) may only be issued against a lessee during the limitation period provided in this section and only after the Secretary or a delegated State has in writing requested the records from the lessee related to the obligation which is the subject of the subpoena and has determined that--

`(I) the lessee has failed to respond within a reasonable period of time to the Secretary's or the applicable delegated State's written request for such records necessary for an audit, investigation or other inquiry made in accordance with the Secretary's or such delegated State's responsibilities under this Act; or

`(II) the lessee has in writing denied the Secretary's or the applicable delegated State'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 or such delegated State's responsibilities under this Act; or

`(III) the lessee has unreasonably delayed in producing records necessary for an audit, investigation or other inquiry made in accordance with the Secretary's or the applicable delegated State's responsibilities under this Act after the Secretary's or such delegated State's written request.

`(C) In seeking records, the Secretary or the applicable delegated State shall afford the lessee a reasonable period of time after a written request by the Secretary or such delegated State in which to provide such records prior to the issuance of any subpoena.

`(3) MISREPRESENTATION OR CONCEALMENT- The intentional misrepresentation or concealment of a material fact for the purpose of evading the payment of an obligation in which case the limitation period shall be tolled for the period of such misrepresentation or such concealment.

`(4) ORDER TO PERFORM A RESTRUCTURED ACCOUNTING- (A) The issuance of a notice under subsection (D) 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 120 days after the date on which (i) the Secretary or the applicable delegated State receives written notice the accounting or other requirement has been performed, or (ii) a court has determined in a final decision that the lessee is not required to perform the accounting, whichever occurs first.

`(B)(i) The Secretary or the applicable delegated State may issue an order to perform a restructured accounting to a lessee when the Secretary or such delegated State determines during an in-depth audit of a lessee that the lessee should recalculate royalty due on an obligation based upon the Secretary's or the delegated State's finding that the lessee has made identified underpayments or overpayments which are demonstrated by the Secretary or the delegated State 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.

`(ii) 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', and may not be delegated to any other person. If a State has been delegated authority pursuant to section 205, the State, acting through the highest ranking State official having ultimate authority over the collection of royalties from leases on Federal lands within the state, may issue such order to perform, which may not be delegated to any other person. An order to perform a restructured accounting shall--

`(I) be issued within a reasonable period of time from when the audit identifies the systemic, reporting errors;

`(II) specify the reasons and factual bases for such order; and

`(III) be specifically identified as an `order to perform a restructured accounting'.

`(C) An order to perform a restructured accounting shall not mean or be construed to include any other communication or action by or on behalf of the Secretary or a delegated State.

`(D) 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. A lessee shall be given a reasonable time within which to perform the restructured accounting. 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 to any other person. If a State has been delegated authority pursuant to section 205, the State, acting through the highest elected State official having ultimate authority over the collection of royalties from leases on Federal lands within the state, may issue such notice, which may not be delegated to any other person.

`(e) TERMINATION OF LIMITATIONS PERIOD- An action or an enforcement of an obligation by the Secretary or delegated State or a lessee shall be barred under this section prior to the running of the six-year period provided in subsection (b) in the event--

`(1) the Secretary or a delegated State has notified the lessee in writing that a time period is closed to further audit; or

`(2) the Secretary or a delegated State and a lessee have so agreed in writing.

`(f) RECORDS REQUIRED FOR DETERMINING COLLECTIONS- Records required pursuant to section 103 by the Secretary or any delegated State for the purpose of determining obligations due and 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 subsection (b). 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 or the applicable delegated State 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 this section. Records required for administrative actions and investigations (including, but not limited to, accounting collection and audits) under this Act involving obligations shall not be duplicated pursuant to section 3518(c)(1)(B) of title 44, United States Code.

`(g) TIMELY COLLECTIONS- In order to most effectively utilize resources available to the Secretary to maximize the collection of oil and gas receipts from lease obligations to the Treasury within the six-year period of limitations, and consequently to maximize the State share of such receipts, the Secretary shall not perform or require accounting, reporting, or audit activities if the Secretary and the State concerned determines that the cost of conducting or requiring the activity exceeds the expected amount to be collected by the activity, based on the most current 12 months of activity. To the maximum extent possible, the Secretary and delegated States shall reduce costs to the United States Treasury and the States by discontinuing requirements for unnecessary or duplicative data and other information, such as separate allowances and payor information, relating to obligations due. If the Secretary and the State concerned determine that collection will result sooner, the Secretary or the applicable delegated State may waive or forego interest in whole or in part.

`(h) APPEALS AND FINAL AGENCY ACTION-

`(1) 30-MONTH PERIOD- All orders issued by the Secretary or a delegated State are subject to appeal to the Secretary. No State shall impose any conditions which would hinder a lessee's immediate appeal of an order to the Secretary or the Secretary's designee. The Secretary shall issue a final decision in any administrative proceeding, including any administrative proceedings pending on the date of enactment of this section, within 30 months from the date such proceeding was commenced or 30 months from the date of such enactment, whichever is later. The 30-month 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- If no such decision has been issued by the Secretary within the 30-month period referred to in paragraph (1)--

`(A) 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

`(B) 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.

`(i) COLLECTIONS OF DISPUTED AMOUNTS DUE- To expedite collections relating to disputed obligations due within the six-year period beginning on the date the obligation became due, the parties shall hold not less than one settlement consultation and the Secretary and the State concerned may take such action as is appropriate to compromise and settle a disputed obligation, including waiving or reducing interest and allowing offsetting of obligations among leases.

`(j) ENFORCEMENT OF A CLAIM FOR JUDICIAL REVIEW- In the event a demand subject to this section is properly and timely issued, the obligation which is the subject of the demand may be enforced beyond the six year limitations period without being barred by this statute of limitations. In the event a demand subject to this section is properly and 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.

`(k) 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.

`(l) STAY OF PAYMENT OBLIGATION PENDING REVIEW- Any party ordered by the Secretary or a delegated State 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 or a delegated State to pay an assessment shall be entitled to a stay without bond or other surety instrument.'.

(b) CLERICAL AMENDMENT- The table of contents in section 1 of the Federal Oil and Gas Royalty Management Act of 1982 (30 U.S.C. 1701) is amended by inserting after the item relating to section 114 the following new item:

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

SEC. 5364. 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 inserting after section 111 the following:

`SEC. 111A. ADJUSTMENTS AND REFUNDS.

`(a) ADJUSTMENTS TO ROYALTIES PAID TO THE SECRETARY OR A DELEGATED STATE-

`(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 or the applicable delegated State 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 who determines that subparagraph (A) would impose a hardship, the Secretary or such delegated State 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 or the applicable delegated State, as appropriate, 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 or the applicable delegated State, as appropriate, 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) NOTICE- The Secretary shall promptly notify each State concerned of a request for refund.

`(3) 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.

`(4) 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 or the applicable delegated State and subject to the provisions of this Act.

`(5) PROHIBITION AGAINST REDUCTION OF REFUNDS OR CREDITS- In no event shall the Secretary or any delegated State directly or indirectly claim or offset 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.'.

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

SEC. 5365. ROYALTY TERMS AND CONDITIONS, INTEREST, AND PENALTIES.

(a) 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 paid or credited 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, but determined without regard to the matter following subparagraph (B) of section 6621(a)(1). 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.'.

(b) LIMITATION ON INTEREST- Section 111 of the Federal Oil and Gas Royalty Management Act of 1982, as amended by subsection (a), 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 determined to be due as a result of judicial or administrative proceedings or agreed to be paid pursuant to settlement agreements) for the aggregate of all of its Federal leases exceeds 10 percent of the total royalties paid that month for those leases.'.

(c) ESTIMATED PAYMENT- Section 111 of the Federal Oil and Gas Royalty Management Act of 1982 (30 U.S.C. 1721), as amended by subsections (a) and (b), 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 for such lease to avoid underpayment or nonpayment interest charges. When an estimated payment is made, actual royalties are due and payable at the end of the month following the month in which the estimated payment is made. 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.'.

(d) VOLUME ALLOCATION OF OIL AND GAS PRODUCTION- Section 111 of the Federal Oil and Gas Royalty Management Act of 1982 (30 U.S.C. 1721), as amended by subsections (a) through (c), 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 shall 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 shall 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 shall 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 or the delegated State 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 or the delegated State 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 crude oil and 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.'.

`(e) PRODUCTION ALLOCATION- Section 111 of the Federal Oil and Gas Royalty Management Act of 1982 (30 U.S.C. 1721), as amended by subsections (a) through (d), is amended by adding at the end the following:

`(l) The Secretary or the delegated State shall issue all determinations of allocations of production for units and communitization agreements within 120 days of a request for determination. If the Secretary or the delegated State 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.'.

(f) NEW ASSESSMENT TO ENCOURAGE PROPER ROYALTY PAYMENTS-

(1) IN GENERAL- The Federal Oil and Gas Royalty Management Act of 1982 (30 U.S.C. 1721), as amended by this section, is further amended by adding at the end the following:

`SEC. 116. ASSESSMENTS.

`Beginning eighteen months after the date of enactment of this section, to encourage proper royalty payment the Secretary or the delegated State shall impose assessments on lessees who chronically submit erroneous reports under this Act. Assessments under this Act may only be issued as provided for in this section.'.

(2) 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. Assessments.'.

(g) LIABILITY FOR ROYALTY PAYMENTS- 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) In order to increase receipts and achieve effective collections of royalty and other payments, 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 or the applicable delegated State. A lessee may designate a person to make all or part of the payments due under a lease on the lessee's behalf and shall notify the Secretary or the applicable delegated State in writing of such designation, in which event said designated person may, in its own name, pay, offset or credit monies, make adjustments, request and receive refunds and submit reports with respect to payments required by the lessee. The person owning operating rights in a lease shall be primarily liable for its pro rata share of payment obligations under the lease. If the person owning the legal record title in a lease is other than the operating rights owner, the person owning the legal record title shall be secondarily liable for its pro rata share of such payment obligations under the lease.'.

(h) CLERICAL AMENDMENT- The heading of section 111 of the Federal Oil and Gas Royalty Management Act of 1982 (30 U.S.C. 1721) is amended to read as follows:

`ROYALTY TERMS AND CONDITIONS, INTEREST, AND PENALTIES'.

SEC. 5366. 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 5365 of this chapter, is further amended by adding at the end the following:

`SEC. 117. ALTERNATIVES FOR MARGINAL PROPERTIES.

`(a) DETERMINATION OF BEST INTERESTS OF STATE CONCERNED AND THE UNITED STATES- The Secretary and the State concerned, acting in the best interests of the United States and the State concerned to promote production, reduce administrative costs, and increase net receipts to the United States and the States, shall jointly determine, on a case by case basis, the amount of what marginal production from a lease or leases or well or wells, or parts thereof, shall be subject to a prepayment under subsection (b) or regulatory relief under subsection (c). If the State concerned does not consent, such prepayments or regulatory relief shall not be made available under this section for such marginal production, provided that if royalty payments from a lease or leases, or well or wells is not shared with any State, such determination shall be made solely by the Secretary.

`(b) PREPAYMENT OF ROYALTY-

`(1) I GENERAL- Notwithstanding the provisions of any lease to the contrary, for any lease or leases or well or wells identified by the Secretary and the State concerned pursuant to subsection (a), the Secretary is authorized to accept a prepayment for royalties in lieu of monthly royalty payments under the lease for the remainder of the lease term if the affected lessee so agrees. Any prepayment agreed to by the Secretary, State concerned and lessee which is less than an average $500 per month in total royalties shall be effectuated under this section not earlier than two years after the date of enactment of this section and, any prepayment which is greater than an average $500 per month in total royalties shall be effectuated under this section not earlier than three years after the date of enactment of this section. The Secretary and the State concerned may condition their acceptance of the prepayment authorized under this section on the lessee's agreeing to such terms and conditions as the Secretary and the State concerned deem appropriate and consistent with the purposes of this Act. Such terms may--

`(A) provide for prepayment that does not result in a loss of revenue to the United States in present value terms;

`(B) include provisions for receiving additional prepayments or royalties for developments in the lease or leases or well or wells that deviate significantly from the assumptions and facts on which the valuation is determined; and

`(C) require the lessee to provide such periodic production reports as may be necessary to allow the Secretary and the State concerned to monitor production for the purposes of subparagraph (B).

`(2) STATE SHARE- A prepayment under this section shall be shared by the Secretary with any State or other recipient to the same extent as any royalty payment for such lease.

`(3) SATISFACTION OF OBLIGATION- Except as may be provided in the terms and conditions established by the Secretary under subsection (b), a lessee who makes a prepayment under this section shall have satisfied in full its obligation to pay royalty on the production stream sold from the lease or leases or well or wells.

`(c) ALTERNATIVE ACCOUNTING AND AUDITING REQUIREMENTS-

`(1) IN GENERAL- Within one year after the date of the enactment of this section, the Secretary or the delegated State shall provide accounting, reporting, and auditing relief that will encourage lessees to continue to produce and develop properties subject to subsection (a); provided, that such relief will only be available to lessees in a State that concurs, which concurrence is not required if royalty from the lease or leases or well or wells is not shared with any State. Prior to granting such relief, the Secretary and, if appropriate, 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, if appropriate, the State concerned.'.

(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. 117. Alternatives for marginal properties.'.

SEC. 5367. REPEALS.

(a) FOGRMA- As applicable to Federal lands, sections 202 and 307 of the Federal Oil and Gas Royalty Management Act of 1982 (30 U.S.C. 1732 and 1755), are repealed. Such repeal shall not affect cooperative agreements involving Indian tribes or Indian lands. Section 1 of such Act (relating to the table of contents) is amended by striking out the items relating to sections 202 and 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. 5368. INDIAN LANDS.

The amendments and repeals made by this chapter 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. 5369. PRIVATE LANDS.

This chapter shall not apply to any privately owned minerals.

SEC. 5369A. EFFECTIVE DATE.

Except as provided by section 115(f), section 111(h), section 111(k)(5), and section 117 of the Federal Oil and Gas Royalty Management Act of 1982 (as added by this chapter), this chapter, and the amendments made by this chapter, 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.

CHAPTER 5--MINING

SEC. 5371. SHORT TITLE.

This chapter may be cited as `The Mining Law Revenue Act of 1995'.

SEC. 5372. DEFINITIONS.

When used in this chapter--

(1) `Assessment year' means the annual period commencing at 12 o'clock noon on the 1st day of September and ending at 12 o'clock noon on the 1st day of September of the following year.

(2) `Federal lands' means lands and interests in lands owned by the United States that are open to mineral location, or that were open to mineral location when a mining claim or site was located and which have not been patented under the general mining laws.

(3) `General mining laws' means those Acts which generally comprise chapters 2, 11, 12, 12A, 15, and 16, and sections 161 and 162, of Title 30 of the United States Code, all Acts heretofore enacted which are amendatory of or supplementary to any of the foregoing Acts, and the judicial and administrative decisions interpreting such Acts.

(4) `Locatable minerals' means those minerals owned by the United States and subject to location and disposition under the general mining laws on or after the effective date of this chapter, but not including any mineral held in trust by the United States for any Indian or Indian tribe, as defined in section 2 of the Indian Mineral Development Act of 1982 (25 U.S.C. 2101), or any mineral owned by any Indian or Indian tribe, as defined in that section, that is subject to a restriction against alienation imposed by the United States, or any mineral owned by any incorporated Native group, village corporation, or regional corporation and acquired by the group or corporation under the provisions of the Alaska Native Claims Settlement Act (43 U.S.C. 1601 et seq.).

(5) `Mineral activities' means any activity related to, or incidental to, exploration for or development, mining, production, beneficiation, or processing of any locatable mineral or mineral that would be locatable if it were subject to disposition under the general mining laws, or reclamation of the impacts of such activities.

(6) `Mining claim or site', except where provided otherwise, means a lode mining claim, placer mining claim, mill site or tunnel site.

(7) `Operator' means any person conducting mineral activities subject to this chapter.

(8) `Person' means an individual, Indian tribe, partnership, association, society, joint venture, joint stock company, firm, company, limited liability company, corporation, cooperative or other organization, and any instrumentality of State or local government, including any publicly owned utility or publicly owned corporation of State or local government.

(9) `Secretary' means the Secretary of the Interior.

SEC. 5373. RENTAL PAYMENT REQUIREMENTS.

(a) RENTAL PAYMENTS- (1) 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 prior to September 1 of each year, until a patent has been issued therefor, an annual rental payment for each unpatented mining claim or site.

(2) LOCATION PAYMENT- 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)), a $25.00 location payment, in lieu of the annual rental payment 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 AND WAIVER- (A) The owner of any mining claim or site who demonstrates to the Secretary on or before the first day of any assessment year that access to such mining claim or site was denied during the prior assessment year by the action or inaction of any State or Federal governmental officer, agency, or court, or by any Indian tribal authority, shall be exempt from the annual rental payment requirements of paragraph (1) for the assessment year following the filing of the certification.

(B) The rental payment provided for in subsection 5373(a) shall be waived for the owner of a mining claim or site who certifies in writing to the Secretary, on or before the date the payment is due, that, as of the date such payment is due, such owner and all related persons own not more than ten unpatented mining claims or sites. Any owner of a mining claim or site that is not required to pay a rental payment under this subsection shall continue to be subject to the assessment work requirements of the general mining laws or of any other State or Federal law, subject to any suspension or deferment of annual assessment work provided by law, for the assessment year following the filing of the certification required by this subsection.

(4) AMOUNT OF ANNUAL RENTAL PAYMENT- For each assessment year the annual rental payment payable for a claim or site referred to in paragraph (1) shall be in the amount specified in Table 1.

Table 1

Assessment Year:
Amount of Payment Per Site or Claim:
1996-1998
$100 per year
1999 and thereafter
$200 per year

(5) EFFECT OF FORFEITURE- No owner or co-owner of a mining claim or site which has been forfeited because the rental payment 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 12 months after the date of forfeiture.

(b) ANNUAL LABOR- (1) Beginning in 1999, 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 50 percent of the annual rental payment payable under this section for the following assessment year. During the assessment year in 1999, annual labor performed in 1998 may be credited toward the annual rental payment due in 1999.

(2) In order to receive credit under this subsection for annual labor work, the description and value of the work must be included in the statement required in subsection (e) and the statement must be timely filed.

(3) Annual labor performed on an individual mining claim or site within a group of contiguous claims may be credited towards the aggregate amount of rental payments 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 or other activities as determined by the Secretary. Acceptable labor and improvements include, but are not limited to, 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 claim or a contiguous claim.

(D) Development work toward an actual mine, such as shafts, tunnels, crosscuts and drifts, settling ponds and dams.

(E) Activities covered under section 1 of the Act of September 2, 1958 (30 U.S.C. 281), as amended.

(F) Reclamation conducted pursuant to State or Federal surface management laws or regulations.

(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. 281), 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 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) RENTAL PAYMENT 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 rental payment 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 STATEMENT- When the value of annual labor is credited towards part or all of the rental payment, subject to the 50-percent limit set forth in subsection (b)(1), the following shall apply:

(1) The rental payment 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, and the amount of labor used as a credit toward the rental payment for the current year.

(2) The annual labor statements must include a summary of the quantity, value and location of work done. This includes a listing of the physical work done, to include drilling, trenching, sampling and underground excavation, and the location of any environmental, geologic, geochemical, and geophysical surveys. The claim holder shall maintain sufficient records which document the value of the work claimed.

(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.

(4) To the extent that labor credited against the rental payment payable under this section is determined by a final action not to qualify as labor under the general mining laws, the claimant shall pay the insufficiency by making payment to the Secretary of an amount equal to the amount of the rental payment against which the insufficient labor was credited. If such payment is made within 30 days of the claimant's receipt of a notice of a final decision making such determination, the claim concerned shall not be forfeited or null or void, and the rental payment applicable to such claim shall be deemed timely paid.

(g) CREDIT AGAINST ROYALTY- The annual claim rental payment payable in advance of the assessment year for any unpatented mining claim or site, or the aggregate rental payments from a group of contiguous claims or sites, shall be credited against the amount of royalty obligation accruing for that year for such claims or sites under section 5375.

(h) FAILURE TO COMPLY- The failure of the owner to pay any claim rental payment for a mining claim or site by 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: Provided, That if such rental payment is paid on or before the 30th day after such payment was due under this section, such mining claim or site shall not be forfeited or null or void.

(i) AMENDMENT OF FLPMA FILING REQUIREMENTS- Section 314(a) of the Federal Land Policy and Management Act of 1976 (43 U.S.C. 1744(a)) is hereby repealed.

(j) 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.

(k) REPEAL- Sections 10101 through 10106 of the Omnibus Budget Reconciliation Act of 1993 (107 Stat. 406; 30 U.S.C. 28g) are repealed.

SEC. 5374. PATENTS.

(a) IN GENERAL- Except as provided in subsection (c), any patent issued by the United States under the general mining laws after the date of enactment of this chapter shall be issued only--

(1) upon payment by the owner of the claim 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 the land for mineral activities; and

(2) subject to reservation by the United States of the royalty provided in section 5375.

(b) RIGHT OF RE-ENTRY-

(1) Except as provided in subsection 5374(c), and notwithstanding any other provision of law, the United States shall retain a right of re-entry in lands patented under section 5374.

(2) Such right of re-entry of the United States shall ripen if--

(A) the land is used by the patentee, or any subsequent owners, for any purpose other than conducting mineral activities in good faith;

(B) such use is not discontinued within a time period specified by the Secretary (but not earlier than 90 days after the Secretary provides the owner of the land with written notice pursuant to paragraph (2) to discontinue such use); and

(C) the Secretary elects to assert the right of re-entry in accordance with paragraph (3).

(3) The ripened right of re-entry retained by the United States pursuant to subparagraph (2) shall vest and all right, title and interest in such patented estate shall revert to the United States only if--

(A) the Secretary files a declaration of re-entry within 6 months of the requisite occurrences under paragraph (2) with the Office of the Bureau of Land Management in the state where the land subject to such right of re-entry is situated; and

(B) the Secretary records such declaration in the office of the county recorder of the county in which the lands subject to a reversion are situated within 30 days of filing under subparagraph (A).

(4) One year after the patent holder provides written notice to the Secretary that all mineral activities are completed and applicable reclamation is completed, the right of re-entry held by the United States and created under the subsection (b) shall expire unless within such period the Secretary notifies the patent holder in writing that he is exercising the right of re-entry held by the United States. At such time, ownership of the patented lands shall automatically revert to the United States, notwithstanding subparagraphs (A), (B) and (C) of subsection (b)(2). The Secretary may decline to exercise the right of re-entry and such rights shall continue if--

(a) solid waste or hazardous substances released on or from the patented estate may pose a threat to public safety or the environment; or

(b) acceptance of title would expose the United States to liability for past mineral activities on the patented estate.

(c) PROTECTION OF VALID EXISTING RIGHTS- Notwithstanding any other provision of law, the requirements of this chapter (except with respect to rental payments in accordance with section 5373)--

(1) shall not apply to the mining claims and sites contained within those mineral patent applications pending at the Department as of September 30, 1995, which shall be processed under the general mining laws in effect immediately prior to the date of enactment of this chapter; and

(2) likewise shall not apply to the mining claims or sites for which there is on the date of enactment of this chapter a vested possessory property right against the Government under the general mining laws in effect immediately prior to the date of enactment of this chapter.

SEC. 5375. ROYALTY.

(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 5374(c) applies) or any mining claim patented under subsection 5374(a) shall be subject to a royalty of 5.0 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 with annual net proceeds from mineral production subject to subsection (a) of less than $50,000.

(2) The obligation to pay royalties hereunder shall accrue 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.

(3) Where mining operations subject to this section are conducted in two or more places by the same person, 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.

(4) 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.

(c) DEFINITIONS- For the purposes of this chapter:

(1) The term `net proceeds' shall mean 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 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.

(d) LIMITATIONS AND ALLOCATIONS OF NET PROCEEDS, GROSS YIELD, AND ALLOWABLE DEDUCTIONS-

(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 5374(c) shall not be subject to the obligation to pay the royalty pursuant to this section. Royalty payments for any claim processed under section 5374(c) 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 5374(c), 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) PENALTIES- Any person who withholds payment or royalties under this section after a final, nonappealable determination of liability may be liable for civil penalties of up to $ 5,000 per day that payment is withheld after becoming due.

(l) DISBURSEMENT OF REVENUES- The receipts from royalties collected under this section shall be disbursed as follows:

(1) Fifty percent of such receipts shall be paid into the Treasury of the United States and deposited as miscellaneous receipts.

(2) Forty percent of such receipts shall be paid into a State Fund or Federal Fund in accordance with section 5376; until termination as provided in section 5379.

(3) Ten percent 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.

SEC. 5376. ABANDONED LOCATABLE MINERALS MINE RECLAMATION FUND.

(a) STATE FUND- Any State within which royalties are collected pursuant to section 5375 from a mining claim and which wishes to become eligible to receive such proceeds allocated by paragraph 5375(l)(2) shall establish and maintain an interest-bearing abandoned locatable mineral mine reclamation fund (hereinafter referred to in this chapter as `State Fund') to accomplish the purposes of this chapter. States with existing abandoned locatable mineral reclamation programs shall qualify to receive proceeds allocated by section 5375(l)(2).

(b) FEDERAL FUND- There is established on the books of the Treasury of the United States an interest-bearing fund to be known as the Abandoned Locatable Minerals Mine Reclamation Fund (hereinafter referred to in this chapter as `Federal Fund') which shall consist of royalty proceeds allocated by paragraph 5375(l)(2) from mining claims in a State where a State Fund has not been established or maintained under subsection (a).

SEC. 5377. ALLOCATION AND PAYMENTS.

(a) STATE FUND- Royalties collected pursuant to section 5375 and allocated by section 5375(l)(2) shall be paid by the Secretary of the Treasury to the State Fund established pursuant to subsection 5376(a) for the State where the mining claim from which the production occurred is located. Payments to States under this subsection with respect to any royalties received by the United States, shall be made not later than the last business day of the month in which such royalties are warranted by the United States Treasury to the Secretary of the Interior as having been received, except for any portion of such royalties which is under challenge, which shall be placed in a suspense account pending resolution of such challenge. Such warrants shall be issued by the United States Treasury not later than 10 days after receipt of such royalties by the Treasury. Royalties placed in a suspense account which are determined to be due the United States shall be payable to a State Fund not later than fifteen days after such challenge is resolved. Any such amount placed in a suspense account pending resolution shall bear interest until the challenge is resolved. In determining the amount of payments to State Funds under this section, the amount of such payments shall not be reduced by any administrative or other costs incurred by the United States.

(b) FEDERAL FUND- Royalties collected pursuant to section 5375, and allocated by paragraph 5375(l)(2), from mining claims located in a State which has not established or maintained a State Fund, and such royalties from mining claims located in a State for which the Secretary's authority has expired under subsection 5379(a), shall be credited to the Federal Fund and distributed in accordance with subsection (c).

(c) TRANSITION- Prior to the time a State establishes a State Fund pursuant to subsection 5376(a), any royalties collected from a mining claim within such State shall be deposited into the Federal Fund and allocated to such State. Once a State establishes a State Fund under subsection 5376(a), the State allocation in the Federal Fund with accrued interest shall be paid by the Secretary of the Treasury to the State Fund in accordance with subsection (a). Commencing three years after the date of enactment of this chapter, the Secretary of the Treasury shall distribute royalty proceeds then accrued or which are thereafter credited to the Federal Fund equally among all States which maintain a State Fund established under subsection 5376(a), and for which the Secretary of the Treasury's authority has not expired under subsection 5379(a).

SEC. 5378. ELIGIBLE AREA.

(a) IN GENERAL- Subject to subsection (b), lands and water eligible for reclamation under this chapter shall be Federal lands that--

(1) have been adversely affected by past mineral activities on lands abandoned and left inadequately reclaimed prior to the date of enactment of this chapter; and

(2) for which the State determines there is no identifiable party with a continuing reclamation responsibility under State or Federal laws.

(b) SPECIFIC SITES AND AREAS NOT ELIGIBLE- The following areas shall not be eligible for expenditures from a State Fund:

(1) any area subject to a plan of operations submitted or approved prior to, on or after the date of enactment of this chapter which includes remining or reclamation of the area adversely affected by past locatable mineral activities;

(2) any area affected by coal mining eligible for reclamation expenditures pursuant to section 404 of the Surface Mining Control and Reclamation Act (30 U.S.C. 1234);

(3) any area designated for remedial action pursuant to the Uranium Mill Tailings Radiation Control Act of 1978 (42 U.S.C. 7912); and

(4) any area that was listed on the National Priorities List pursuant to the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (42 U.S.C. 9605) prior to the date of enactment of this chapter, or where the Environmental Protection Agency has initiated or caused to be initiated a response action pursuant to that Act.

SEC. 5379. SUNSET PROVISIONS.

(a) TERMINATION OF AUTHORITY- The Secretary of the Treasury's authority to allocate funds to a State Fund under section 5377 shall expire on the date that the State submits a report to the Congress which states that there are no areas in the State eligible under subsection 5378(a) which remain to be reclaimed.

(b) TERMINATION OF FUND- Upon the termination of authority as provided in subsection (a) with respect to all State Funds, the Federal Fund shall also be terminated, and all royalty proceeds thereafter remaining in the Federal Fund shall be distributed to the States as provided for in Section 5375(l)(3).

SEC. 5380. EFFECT ON THE GENERAL MINING LAWS.

The provisions of this chapter shall supersede the general mining laws only to the extent such laws conflict with the requirements of this chapter. Where no such conflict exists, the general mining laws, including all judicial and administrative decisions interpreting them, shall remain in full force and effect.

SEC. 5381. SEVERABILITY.

If any provision of this chapter or the applicability thereof to any person or circumstances is held invalid, the remainder of this chapter and the application of such provision to other persons or circumstances shall not be affected thereby.

SEC. 5382. 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- 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), 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, for uncommon varieties of mineral materials under this section or by a valid mining claim for an uncommon variety of a mineral material under the general mining laws shall be subject to disposition by lease under this Act by the Secretary 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 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 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 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 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)(A) Upon showing to the satisfaction of the Secretary 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.'.

`(B) `Persons holding valid mining claims for uncommon varieties of mineral materials shall be entitled to receive a lease under this subsection.'

(D) MINERAL MATERIALS DISPOSAL CLARIFICATION- Section 4 July 23, 1955 (30 U.S.C. 612), is amended as follows:

(1) In subsection (b) insert `and mineral material' after `vegetative'.

(2) In subsection (c) insert `and mineral material' after `vegetative'.

(e) 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.'.

CHAPTER 6--DEPARTMENT OF THE INTERIOR

SEC. 5391. AIRCRAFT SERVICES.

(a) USE OF PRIVATE CONTRACTORS- By not later than October 1, 1996, the Secretary of the Interior shall contract with private entities for the provision of all aircraft services required by the Department of the Interior, other than those available from existing DOI aircraft whose primary purpose is fire suppression.

(b) SALE OF FEDERAL AIRCRAFT- By September 30, 1998, the Secretary of the Interior is authorized and directed to sell all aircraft owned by the Department of the Interior and all associated equipment and facilities, other than those whose primary purpose is fire suppression.

(c) EXEMPTIONS- The disposition of assets under this section is not subject to section 202 and 203 of the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 483 and 484) or section 13 of the Surplus Property Act of 1944 (50 U.S.C. App. 1622).

(d) DISPOSITION OF PROCEEDS- The proceeds from dispositions under this section shall be returned to the Treasury as miscellaneous receipts and all savings from reduced overhead and other costs related to the management of the assets sold shall be returned to the Treasury.

CHAPTER 7--POWER MARKETING ADMINISTRATIONS

SUBCHAPTER A--BONNEVILLE POWER ADMINISTRATION REFINANCING

SEC. 5401. DEFINITIONS.

For the purposes of this subchapter--

(1) `Administrator' means the Administrator of the Bonneville Power Administration;

(2) `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. 838k);

(3) `new capital investment' means a capital investment for a project, facility, or separable unit or feature of a project, facility, or separable unit or feature of a project or facility, placed in service after September 30, 1995;

(4) `old capital investment' means a capital investment the capitalized cost of which--

(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) `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; and

(6) `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.

SEC. 5402. NEW PRINCIPAL AMOUNTS.

(a) PRINCIPAL AMOUNT- Effective October 1, 1995, an old capital investment has a new principal amount that is the sum of--

(1) 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

(2) an amount equal to $100,000,000 multiplied by a fraction the numerator of which is the principal amount of the old payment amounts for the old capital investment and the denominator of which is the sum of the principal amounts of the old payment amounts for all old capital investments.

(b) DETERMINATION- With the approval of the Secretary of the Treasury, based solely on consistency with this subchapter, the Administrator shall determine the new principal amounts under this section and the assignment of interest rates to the new principal amounts under section 5403.

(c) OLD PAYMENT AMOUNT- 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 subchapter had not been enacted, assuming that--

(1) the principal were repaid--

(A) on the repayment date the Administrator assigned before October 1, 1993, to the old capital investment, or

(B) 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

(2) interest were paid--

(A) at the interest rate the Administrator assigned before October 1, 1993, to the old capital investment, or

(B) 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.

SEC. 5403. 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 section 5402 bears 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.

SEC. 5404. REPAYMENT DATES.

As of October 1, 1995, the repayment date for the new principal amount established for an old capital investment under section 5402 is no earlier than the repayment date for the old capital investment assumed in section 5402(c)(1).

SEC. 5405. PREPAYMENT LIMITATIONS.

During the period October 1, 1995, through September 30, 2000, the total new principal amounts of old capital investments, as established under section 5402, that the Administrator may pay before their respective repayment dates shall not exceed $100,000,000.

SEC. 5406. INTEREST RATES FOR NEW CAPITAL INVESTMENTS DURING CONSTRUCTION.

(a) NEW CAPITAL INVESTMENT- 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--

(1) construction expenditures that were made from the date construction commenced through the end of the fiscal year, and

(2) accrued interest during construction.

(b) PAYMENT- The Administrator is not required to pay, during construction of the project, facility, or separable unit or feature, the interest calculated, accrued, and capitalized under subsection (a).

(c) ONE-YEAR RATE- For the purposes of this section, `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.

SEC. 5407. 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.

SEC. 5408. 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; 108 Stat. 4577) is amended by striking section 6 and inserting the following:

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

`So long as the Administrator 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.'.

SEC. 5409. 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 section 5402;

(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 section 5403;

(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 section 5402 and to pay the interest on the principal amount under section 5403, 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 subchapter; and

(4) the contract provisions specified in this subchapter do 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.

SEC. 5410. SAVINGS PROVISIONS.

(a) REPAYMENT- This subchapter 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(b) of the Federal Columbia River Transmission System Act (16 U.S.C. 838k(b)).

(b) PAYMENT OF CAPITAL INVESTMENT- Except as provided in section 5405, this subchapter 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.

Subchapter B--Alaska Power Marketing Administration Sale

SEC. 5411. SHORT TITLE.

This subchapter may be cited as the `Alaska Power Administration Asset Sale and Termination Act'.

SEC. 5412. DEFINITIONS.

For Purposes of this subchapter:

(1) The term `Eklutna' means 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 adopted before the date of enactment of this Act.

(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 `Snettisham' means the Snettisham Hydroelectric Project and related assets as described in section 4 and Exhibit A of the Snettisham Purchase Agreement.

(5) 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 adopted before the date of enactment of this Act.

(6) The term `Snettisham Purchaser' means the Alaska Industrial Development and Export Authority or a successor State agency or authority.

SEC. 5413. SALE OF EKLUTNA AND SNETTISHAM HYDROELECTRIC PROJECTS.

(a) SALE OF EKLUTNA- The Secretary of Energy is authorized and directed to sell Eklutna to the Eklutna Purchasers in accordance with the terms of this subchapter and the Eklutna Purchase Agreement.

(b) SALE OF SNETTISHAM- The Secretary of Energy is authorized and directed to sell Snettisham to the Snettisham Purchaser in accordance with the terms of this subchapter and the Snettisham Purchase Agreement.

(c) COOPERATION OF OTHER AGENCIES- The heads of other Federal departments, agencies, and instrumentalities of the United States shall assist the Secretary of Energy in implementing the sales and conveyances authorized and directed by this subchapter.

(d) PROCEEDS- Proceeds from the sales required by this subchapter shall be deposited in the Treasury of the United States to the credit of miscellaneous receipts.

(e) PREPARATION OF EKLUTNA AND SNETTISHAM FOR SALE- The Secretary of Energy is authorized and directed to use such funds from the sale of electric power by the Alaska Power Administration as may be necessary to prepare, survey, and acquire Eklutna and Snettisham assets for sale and conveyance. Such preparations and acquisitions shall provide sufficient title to ensure the beneficial use, enjoyment, and occupancy by the purchaser.

(f) CONTRIBUTED FUNDS- 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 Purchaser or customers for the purposes of upgrading, improving, maintaining, or administering Eklutna or Snettisham. Upon the termination of the Alaska Power Administration under section 5414(f), the Secretary of Energy shall administer and expend any remaining balances of such contributed funds for the purposes intended by the contributors.

SEC. 5414. EXEMPTION AND OTHER PROVISIONS.

(a) FEDERAL POWER ACT-

(1) After the sales authorized by this subchapter occur, Eklutna and Snettisham, including future modifications, shall continue to be exempt from the requirements of part I of the Federal Power Act (16 U.S.C. 791a et seq.), except as provided in subsection (b).

(2) The exemption provided by paragraph (1) shall not affect the Memorandum of Agreement entered into among the State of Alaska, the Eklutna Purchasers, the Alaska Energy Authority, and Federal fish and wildlife agencies regarding the protection, mitigation of, damages to, and enhancement of fish and wildlife, dated August 7, 1991, which remains in full force and effect.

(3) Nothing in this subchapter or the Federal Power Act (16 U.S.C. 791 et seq.) preempts the State of Alaska from carrying out the responsibilities and authorities of the Memorandum of Agreement.

(b) SUBSEQUENT TRANSFERS- Except for subsequent assignment of interest in Eklutna by the Eklutna Purchasers to the Alaska Electric Generation and Transmission Cooperative Inc. pursuant to section 19 of the Eklutna Purchase Agreement, upon any subsequent sale or transfer of any portion of Eklutna or Snettisham from the Eklutna Purchasers or the Snettisham Purchaser to any other person, the exemption set forth in paragraph (1) of subsection (a) of this section shall cease to apply to such portion.

(c) REVIEW-

(1) The United States District Court for the District of Alaska shall have jurisdiction to review decisions made under the Memorandum of Agreement and to enforce the provisions of the Memorandum of Agreement, including the remedy of specific performance.

(2) An action seeking review of a Fish and Wildlife Program (`Program') of the Governor of Alaska under the Memorandum of Agreement or challenging actions of any of the parties to the Memorandum of Agreement prior to the adoption of the Program shall be brought not later than 90 days after the date on which the Program is adopted by the Governor of Alaska, or be barred.

(3) An action seeking review of implementation of the Program shall be brought not later than 90 days after the challenged act implementing the Program, or be barred.

(d) EKLUTNA LANDS- With respect to Eklutna lands described in Exhibit A of the Eklutna Purchase Agreement:

(1) The Secretary of the Interior shall issue rights-of-way to the Alaska Power Administration for subsequent reassignment to the Eklutna Purchasers--

(A) at no cost to the Eklutna Purchasers;

(B) to remain effective for a period equal to the life of Eklutna as extended by improvements, repairs, renewals, or replacements; and

(C) sufficient for the operation of, maintenance of, repair to, and replacement of, and access to, Eklutna facilities located on military lands and lands managed by the Bureau of Land Management, including lands selected by the State of Alaska.

(2) Fee title to lands at Anchorage Substation shall be transferred to 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.

(3) With respect to the Eklutna lands identified in paragraph 1 of 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 Act of July 7, 1958 (commonly known as the Alaska Statehood Act, Public Law 85-508; 72 Stat. 339), and the North Anchorage Land Agreement dated January 31, 1983. This conveyance shall be subject to the rights-of-way provided to the Eklutna Purchasers under paragraph (1).

(e) SNETTISHAM LANDS- With respect to the Snettisham lands identified in paragraph 1 of Exhibit A of the Snettisham Purchase Agreement and Public Land Order No. 5108, the State of Alaska may select, and the Secretary of the Interior shall convey to the State of Alaska, improved lands under the selection entitlements in section 6 of the Act of July 7, 1958 (commonly known as the Alaska Statehood Act, Public Law 85-508; 72 Stat. 339).

(f) TERMINATION OF ALASKA POWER ADMINISTRATION- Not later than one year after both of the sales authorized in section 5413 have occurred, as measured by the Transaction Dates stipulated in the Purchase Agreements, the Secretary of Energy shall--

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

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

(3) return unobligated balances of funds appropriated for the Alaska Power Administration to the Treasury of the United States.

(g) REPEALS-

(1) The Act of July 31, 1950 (64 Stat. 382) is repealed effective on the date that Eklutna is conveyed to the Eklutna Purchasers.

(2) Section 204 of the Flood Control Act of 1962 (76 Stat. 1193) is repealed effective on the date that Snettisham is conveyed to the Snettisham Purchaser.

(3) The Act of August 9, 1955, concerning water resources investigation in Alaska (69 Stat. 618), is repealed.

(h) DOE ORGANIZATION ACT- As of the later of the two dates determined in paragraphs (1) and (2) of subsection (g), section 302(a) of the Department of Energy Organization Act (42 U.S.C. 7152(a)) is amended--

(1) in paragraph (1)--

(A) by striking subparagraph (C); and

(B) by redesignating subparagraphs (D), (E), and (F) as subparagraphs (C), (D), and (E) respectively; and

(2) in paragraph (2) by striking out `and the Alaska Power Administration' and by inserting `and' after `Southwestern Power Administration,'.

(i) DISPOSAL- The sales of Eklutna and Snettisham under this subchapter are not considered disposal of Federal surplus property under the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 484) or the Act of October 3, 1944, popularly known as the `Surplus Property Act of 1944' (50 U.S.C. App. 1622).

SEC. 5415. OTHER FEDERAL HYDROELECTRIC PROJECTS.

The provisions of this subchapter regarding the sale of the Alaska Power Administration's hydroelectric projects under section 5413 and the exemption of these projects from part I of the Federal Power Act under section 5414 do not apply to other Federal hydroelectric projects.

CHAPTER 8--OUTER CONTINENTAL SHELF DEEP WATER ROYALTY RELIEF

SEC. 5421. SHORT TITLE.

This chapter may be referred to as the `Outer Continental Shelf Deep Water Royalty Relief Act'.

SEC. 5422. AMENDMENTS TO THE OUTER CONTINENTAL SHELF LANDS ACT.

Section 8(a)(3) of the Outer Continental Shelf Lands Act (43 U.S.C. 1337(a)(3)), is amended--

(1) by designating the provisions of paragraph (3) as subparagraph (A) of such paragraph (3); and

(2) by inserting after subparagraph (A), as so designated, the following:

`(B) In the Western and Central Planning Areas of the Gulf of Mexico and the portion of the Eastern Planning Area of the Gulf of Mexico encompassing whole lease blocks lying west of 87 degrees, 30 minutes West longitude, the Secretary may, in order to--

`(i) promote development or increased production on producing or non-producing leases; or

`(ii) encourage production of marginal resources on producing or non-producing leases;

through primary, secondary, or tertiary recovery means, reduce or eliminate any royalty or net profit share set forth in the lease(s). With the lessee's consent, the Secretary may make other modifications to the royalty or net profit share terms of the lease in order to achieve these purposes.

`(C)(i) Notwithstanding the provisions of this Act other than this subparagraph, with respect to any lease or unit in existence on the date of enactment of the Outer Continental Shelf Deep Water Royalty Relief Act meeting the requirements of this subparagraph, no royalty payments shall be due on new production, as defined in clause (iv) of this subparagraph, from any lease or unit located in water depths of 200 meters or greater in the Western and Central Planning Areas of the Gulf of Mexico, including that portion of the Eastern Planning Area of the Gulf of Mexico encompassing whole lease blocks lying west of 87 degrees, 30 minutes West longitude, until such volume of production as determined pursuant to clause (ii) has been produced by the lessee.

`(ii) Upon submission of a complete application by the lessee, the Secretary shall determine within 180 days of such application whether new production from such lease or unit would be economic in the absence of the relief from the requirement to pay royalties provided for by clause (i) of this subparagraph. In making such determination, the Secretary shall consider the increased technological and financial risk of deep water development and all costs associated with exploring, developing, and producing from the lease. The lessee shall provide information required for a complete application to the Secretary prior to such determination. The Secretary shall clearly define the information required for a complete application under this section. Such application may be made on the basis of an individual lease or unit. If the Secretary determines that such new production would be economic in the absence of the relief from the requirement to pay royalties provided for by clause (i) of this subparagraph, the provisions of clause (i) shall not apply to such production. If the Secretary determines that such new production would not be economic in the absence of the relief from the requirement to pay royalties provided for by clause (i), the Secretary must determine the volume of production from the lease or unit on which no royalties would be due in order to make such new production economically viable; except that for new production as defined in clause (iv)(I), in no case will that volume be less than 17.5 million barrels of oil equivalent in water depths of 200 to 400 meters, 52.5 million barrels of oil equivalent in 400 to 800 meters of water, and 87.5 million barrels of oil equivalent in water depths greater than 800 meters. Redetermination of the applicability of clause (i) shall be undertaken by the Secretary when requested by the lessee prior to the commencement of the new production and upon significant change in the factors upon which the original determination was made. The Secretary shall make such redetermination within 120 days of submission of a complete application. The Secretary may extend the time period for making any determination or redetermination under this clause for 30 days, or longer if agreed to by the applicant, if circumstances so warrant. The lessee shall be notified in writing of any determination or redetermination and the reasons for and assumptions used for such determination. Any determination or redetermination under this clause shall be a final agency action. The Secretary's determination or redetermination shall be judicially reviewable under section 10(a) of the Administrative Procedure Act (5 U.S.C. 702), only for actions filed within 30 days of the Secretary's determination or redetermination.

`(iii) In the event that the Secretary fails to make the determination or redetermination called for in clause (ii) upon application by the lessee within the time period, together with any extension thereof, provided for by clause (ii), no royalty payments shall be due on new production as follows:

`(I) For new production, as defined in clause (iv) (I) of this subparagraph, no royalty shall be due on such production according to the schedule of minimum volumes specified in clause (ii) of this subparagraph.

`(II) For new production, as defined in clause (iv) (II) of this subparagraph, no royalty shall be due on such production for one year following the start of such production.

`(iv) For purposes of this subparagraph, the term `new production' is--

`(I) any production from a lease from which no royalties are due on production, other than test production, prior to the date of enactment of the Outer Continental Shelf Deep Water Royalty Relief Act; or

`(II) any production resulting from lease development activities pursuant to a Development Operations Coordination Document, or supplement thereto that would expand production significantly beyond the level anticipated in the Development Operations Coordination Document, approved by the Secretary after the date of enactment of the Outer Continental Shelf Deep Water Royalty Relief Act.

`(v) During the production of volumes determined pursuant to clauses (ii) or (iii) of this subparagraph, in any year during which the arithmetic average of the closing prices on the New York Mercantile Exchange for light sweet crude oil exceeds $28.00 per barrel, any production of oil will be subject to royalties at the lease stipulated royalty rate. Any production subject to this clause shall be counted toward the production volume determined pursuant to clause (ii) or (iii). Estimated royalty payments will be made if such average of the closing prices for the previous year exceeds $28.00. After the end of the calendar year, when the new average price can be calculated, lessees will pay any royalties due, with interest but without penalty, or can apply for a refund, with interest, of any overpayment.

`(vi) During the production of volumes determined pursuant to clause (ii) or (iii) of this subparagraph, in any year during which the arithmetic average of the closing prices on the New York Mercantile Exchange for natural gas exceeds $3.50 per million British thermal units, any production of natural gas will be subject to royalties at the lease stipulated royalty rate. Any production subject to this clause shall be counted toward the production volume determined pursuant to clauses (ii) or (iii). Estimated royalty payments will be made if such average of the closing prices for the previous year exceeds $3.50. After the end of the calendar year, when the new average price can be calculated, lessees will pay any royalties due, with interest but without penalty, or can apply for a refund, with interest, of any overpayment.

`(vii) The prices referred to in clauses (v) and (vi) of this subparagraph shall be changed during any calendar year after 1994 by the percentage, if any, by which the implicit price deflator for the gross domestic product changed during the preceding calendar year.'.

SEC. 5423. NEW LEASES.

Section 8(a)(1) of the Outer Continental Shelf Lands Act, as amended (43 U.S.C. 1337 (a)(1)), is amended--

(1) by redesignating subparagraph (H) as subparagraph (I);

(2) by striking `or' at the end of subparagraph (G); and

(3) by inserting after subparagraph (G) the following new subparagraph:

`(H) cash bonus bid with royalty at no less than 12 and 1/2 per centum fixed by the Secretary in amount or value of production saved, removed, or sold, and with suspension of royalties for a period, volume, or value of production determined by the Secretary, which suspensions may vary based on the price of production from the lease; or'.

SEC. 5424. LEASE SALES.

For all tracts located in water depths of 200 meters or greater in the Western and Central Planning Area of the Gulf of Mexico, including that portion of the Eastern Planning Area of the Gulf of Mexico encompassing whole lease blocks lying west of 87 degrees, 30 minutes West longitude, any lease sale within seven years of the date of enactment of this chapter, shall use the bidding system authorized in section 8(a)(1)(H) of the Outer Continental Shelf Lands Act, as amended by this chapter, except that the suspension of royalties shall be set at a volume of not less than the following:

(1) 17.5 million barrels of oil equivalent for leases in water depths of 200 to 400 meters;

(2) 52.5 million barrels of oil equivalent for leases in 400 to 800 meters of water; and

(3) 87.5 million barrels of oil equivalent for leases in water depths greater than 800 meters.

SEC. 5425. REGULATIONS.

The Secretary shall promulgate such rules and regulations as are necessary to implement the provisions of this chapter within 180 days after the enactment of this Act.

SEC. 5426. SAVINGS CLAUSE.

Nothing in this chapter shall be construed to affect any offshore pre-leasing, leasing, or development moratorium, including any moratorium applicable to the Eastern Planning Area of the Gulf of Mexico located off the Gulf Coast of Florida.

CHAPTER 9--EXPORTS OF ALASKA NORTH SLOPE OIL

SEC. 5431. EXPORTS OF ALASKAN NORTH SLOPE OIL.

Section 28 of the Mineral Leasing Act (30 U.S.C. 185) is amended by amending subsection (s) 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 five months of 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 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.), the National Emergencies Act (50 U.S.C. 1601 et seq.), or part B of title II of the Energy Policy and Conservation Act (42 U.S.C. 6271-76) to prohibit exports.

`(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.'.

CHAPTER 10--SKI AREA PERMIT RENTAL CHARGES ON NATIONAL FOREST SYSTEM LANDS

SEC. 5441. SKI AREA PERMIT RENTAL CHARGE.

(a) The Secretary of Agriculture shall charge a rental charge for all ski area permits issued pursuant to section 3 of the National Forest Ski Area Permit Act of 1986 (16 U.S.C. 497b), the Act of March 4, 1915 (38 Stat. 1101, chapter 144; 16 U.S.C. 497), or the 9th through 20th paragraphs under the heading `SURVEYING THE PUBLIC LANDS' under the heading `UNDER THE DEPARTMENT OF THE INTERIOR' in the Act of June 4, 1897 (30 Stat. 34, chapter 2), on National Forest System lands. Permit rental charges for permits issued pursuant to the National Forest Ski Area Permit Act of 1986 shall be calculated as set forth in subsection (b). Permit rental charges for existing ski area permits issued pursuant to the Act of March 4, 1915, and the Act of June 4, 1897, shall be calculated in accordance with those existing permits: Provided, That a permittee may, at the permittee's option, use the calculation method set forth in subsection (b).

(b)(1) The ski area permit rental charge (SAPRC) shall be calculated by adding the permittee's gross revenues from lift ticket/year-round ski area use pass sales plus revenue from ski school operations (LT+SS) and multiplying such total by the slope transport feet percentage (STFP) on National Forest System land. That amount shall be increased by the gross year-round revenue from ancillary facilities (GRAF) physically located on national forest land, including all permittee or subpermittee lodging, food service, rental shops, parking and other ancillary operations, to determine the adjusted gross revenue (AGR) subject to the permit rental charge. The final rental charge shall be calculated by multiplying the AGR 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; and

(D) 4.0 percent for the amount of adjusted gross revenue that exceeds $50,000,000.

(2) In cases where ski areas are only partially located on national forest lands, the slope transport feet percentage on national forest land referred to in subsection (b) shall be calculated as generally described in the Forest Service Manual in effect as of January 1, 1992. Revenues from Nordic ski operations shall be included or excluded from the rental charge calculation according to the percentage of trails physically located on national forest land.

(3) In order to ensure that the rental charge remains fair and equitable to both the United States and ski area permittees, the adjusted gross revenue figures for each revenue bracket in paragraph (1) shall be adjusted annually by the percent increase or decrease in the national Consumer Price Index for the preceding calendar year.

(c) The rental charge set forth in subsection (b) shall be due on June 1 of each year and shall be paid or pre-paid by the permittee on a monthly, quarterly, annual or other schedule as determined appropriate by the Secretary in consultation with the permittee. Unless mutually agreed otherwise by the Secretary of Agriculture and the permittee, the payment or prepayment schedule shall conform to the permittee's schedule in effect prior to the date of enactment of this Act. To reduce costs to the permittee and the Forest Service, the Secretary shall each year provide the permittee with a standardized form and worksheets (including annual rental charge calculation brackets and rates) to be used for rental charge calculation and submitted with the rental charge payment.

(d) The ski area permit rental charge set forth in this section shall become effective on June 1, 1996 and cover receipts retroactive to June 1, 1995: Provided, however, That if a permittee has paid rental charges for the period June 1, 1995, to June 1, 1996, under the graduated rate rental charge system formula in effect prior to the date of enactment of this Act, such rental charges shall be credited toward the new rental charge due on June 1, 1996. In order to ensure increasing rental charge receipt levels to the United States during transition from the graduated rate rental charge system formula to the formula of this Act, the rental charge paid by any individual permittee shall be--

(1) for the 1995-1996 permit year, shall be either the rental charge paid for the preceding 1994-1995 base year or the rental charge calculated pursuant to this Act, whichever is higher;

(2) for the 1996-1997 permit year, the rental charge paid shall be either the rental charge paid for the 1994-1995 base year or the rental charge calculated pursuant to this Act, whichever is higher; and

(3) for the 1997-1998 permit year, the rental charge for the 1994-1995 base year or the rental charge calculated pursuant to this Act, whichever is higher.

If an individual permittee's adjusted gross revenue for the 1995-1996, 1996-1997, or 1997-1998 permit years falls more than 10 percent below the 1994-1995 base year, the rental charge paid shall be the rental charge calculated pursuant to this Act.

(e) Under no circumstances shall revenue, or subpermittee revenue (other than lift ticket, area use pass, or ski school sales) obtained from operations physically located on non-national forest land be included in the ski area permit rental charge calculation.

(f) To reduce administrative costs on ski area permittees and the Forest Service the terms `revenue' and `sales', as used in this section, shall mean actual income from sales and shall 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 or employee lift tickets, discounts, or other goods or services (except for bartered goods and complimentary lift tickets) for which the permittee does not receive money.

(g) In cases where an area of national forest land is under a ski area permit but the permittee does not have revenue or sales qualifying for rental charge payment pursuant to subsection (a), the permittee shall pay an annual minimum rental charge of $2 for each national forest acre under permit or a percentage of appraised land value, as determined to be appropriate by the Secretary.

(h) Where the new rental charge provided for in subsection (b)(1) results in an increase in permit rental charge greater than one half of one percent of the permittee's adjusted gross revenue (as determined under subsection (b)(1)), the new rental charge shall be phased in over a 5-year period in a manner providing for increases of approximately equal increments.

CHAPTER 11--PARK ENTRANCE FEES

SEC. 5451. FEES.

(a) ADMISSION FEES- Section 4(a) of the Land and Water Conservation Fund Act of 1965 (16 U.S.C. 460l-6a(a)) is amended--

(1) in the first sentence of the subsection by striking `no more than 21';

(2) in the first sentence of paragraph (1)(A)(i) by striking `$25' and inserting `$50';

(3) in the second sentence of paragraph (1)(B) by striking `$15' and inserting `$25';

(4) in paragraph (2) by striking the fourth, fifth, and sixth sentences and inserting `The fee for a single-visit permit at any designated area shall be collected on a per person basis, not to exceed $6 per person, including for persons entering by private, noncommercial vehicle.';

(5) in paragraph (3)--

(A) in the third sentence by inserting `Great' before `Smoky'; and

(B) by striking the last sentence;

(6) in paragraph (4)--

(A) by striking the second sentence and inserting `Such permit shall be nontransferable, shall be issued for a one-time charge, which shall be set at the same rate as the fee for a Golden Eagle Passport, and shall entitle the permittee to free admission into any area designated pursuant to this subsection.'; and

(B) by striking the third sentence and inserting `No fees of any kind shall be collected from any persons who have a right of access for hunting or fishing privileges under a specific provision of law or treaty or who are engaged in the conduct of official Federal, State, or local government business.';

(7) by striking paragraph (5) and inserting the following:

`(5) The Secretary of the Interior and the Secretary of Agriculture shall establish procedures providing for the issuance of a lifetime admission permit to any citizen of, or person legally domiciled in, the United States, if such citizen or person applies for such permit and is permanently disabled. Such procedures shall ensure that a lifetime admission permit shall be issued only to persons who have been medically determined to be permanently disabled. A lifetime admission permit shall be nontransferable, shall be issued without charge, and shall entitle the permittee and one accompanying individual to general admission into any area designated pursuant to this subsection, notwithstanding the method of travel.';

(8) by striking paragraph (9) and by redesignating paragraph (10) as paragraph (9)';

(9) by striking all but the last sentence of paragraph (11) and redesignating paragraph (11) as paragraph (10); and

(10) by redesignating paragraph (12) as paragraph (11).

(b) RECREATION FEES- Section 4 of the Land and Water Conservation Fund Act of 1965 (16 U.S.C. 460l-6a) is amended by striking subsection (b) and inserting the following:

`(b) RECREATION USE FEES- Each agency developing, administering, providing, or furnishing at Federal expense services for such activities as camping, including, but not limited to, back country camping under permit, guarded swimming sites, boat launch facilities, managed parking lots, motorized recreation use and other recreation uses, is authorized, in accordance with this section to provide for the collection of recreation use fees at the place of use or any reasonably convenient location. The administering Secretary may establish both daily and annual recreation use fees.'.

(c) CRITERIA, POSTING AND UNIFORMITY OF FEES- Section 4(d) of the Land and Water Conservation Fund Act of 1965 (16 U.S.C. 460l-6a(d)) is amended in the first sentence by striking `recreation fees charged by non-Federal public agencies,' and inserting `fees charged by other public and private entities,'.

(d) PENALTY- Section 4(e) of the Land and Water Conservation Fund Act of 1965 (16 U.S.C. 460l-6a(e)) is amended by striking `of not more than $100.' and inserting `as provided by law.'.

(e) TECHNICAL AMENDMENTS- Section 4(h) of the Land and Water Conservation Fund Act of 1965 (16 U.S.C. 460l-6a(h)) is amended--

(1) by striking `Bureau of Outdoor Recreation' and inserting `National Park Service';

(2) by striking `Natural Resources' and inserting `Resources'; and

(3) by striking `Bureau' and inserting `National Park Service'.

(f) USE OF FEES- Section 4(i) of the Land and Water Conservation Fund Act of 1965 (16 U.S.C. 460l-6a(i)) is amended--

(1) in the first sentence of paragraph (1)(B) by striking `fee collection costs for that fiscal year' and inserting `fee collection costs for the immediately preceding fiscal year' and by striking `section in that fiscal year' and inserting `section in such immediately preceding fiscal year';

(2) in the second sentence of subparagraph (B) by striking `in that fiscal year'; and

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

`(4) Amounts covered into the special account for the National Park Service shall be allocated among park system units in accordance with subsection (j) for obligation or expenditure by the Director of the National Park Service for park operations.'.

(g) TIME OF REIMBURSEMENT- Section 4(k) of the Land and Water Conservation Fund Act of 1965 (16 U.S.C. 460l-6a(k)) is amended by striking the last sentence.

(h) COMMERCIAL TOUR USE FEES- Section 4(n) of the Land and Water Conservation Fund Act of 1965 (16 U.S.C. 460l-6a(n)) is amended--

(1) by striking the first sentence of paragraph (1) and inserting `In the case of each unit of the National Park System for which an admission fee is charged under this section, the Secretary of the Interior shall establish, by October 1, 1996, a commercial tour use fee in lieu of a per person admission fee to be imposed on each vehicle entering the unit for the purpose of providing commercial tour services within the unit.'; and

(2) by striking the period at the end of paragraph (3) and inserting `, with written notification of such adjustments provided to commercial tour operators 12 months in advance of implementation.'.

(i) CONFORMING AMENDMENTS-

(1) Title I of the Department of the Interior and Related Agencies Appropriations Act, 1994, is amended by striking the second proviso under the heading `ADMINISTRATIVE PROVISIONS' under the heading `NATIONAL PARK SERVICE' (related to recovery of costs associated with special use permits).

(2) Section 3 of the Act entitled `An Act creating the Mount Rushmore National Memorial Commission and defining its purposes and powers', approved February 25, 1929 (45 Stat. 1300, chapter 315), is amended by striking the last sentence.

(3) Section 5 of Public Law 87-657 (16 U.S.C. 459c-5), is amended by striking subsection (e).

(4) Section 3 of Public Law 87-750 (16 U.S.C. 398e) is amended by striking subsection (b).

(5) Section 4(e) of Public Law 92-589 (16 U.S.C. 460bb-3) is amended by striking the first sentence.

(6) Section 6 of Public Law 95-348 (16 U.S.C. 410dd) is amended by striking subsection (j).

(7) Section 207 of Public Law 96-199 (16 U.S.C. 410ff-6) is repealed.

(8) Section 106 of Public Law 96-287 (16 U.S.C. 410gg-5) is amended by striking the last sentence.

(9) Section 204 of Public Law 96-287 (94 Stat. 601) is amended by striking the last sentence.

(10) Section 5 of Public Law 96-428 (94 Stat. 1842; 16 U.S.C. 461 note) is repealed.

(11) Public Law 100-55 (101 Stat. 371; U.S.C. 460l-6a note) is repealed.

SEC. 5452. COVERING OF INCREASED FEE REVENUES INTO SPECIAL ACCOUNTS.

Of the funds deposited in special accounts in the Treasury for the National Park Service, Bureau of Land Management, and Forest Service as set forth in section 4(i) of the Land and Water Conservation Fund Act of 1965 (16 U.S.C. 460l-6a(i)), beginning in fiscal year 1997, 80 percent of all receipts earned in the previous year in excess of the following amounts for each covered agency shall be made available to that agency without further appropriation:

(1) National Park System:

(A) $82,000,000 for fiscal year 1997.

(B) $85,000,000 for fiscal year 1998.

(C) $88,000,000 for fiscal year 1999.

(D) $91,000,000 for fiscal year 2000.

(E) $94,000,000 for fiscal year 2001.

(F) $97,000,000 for fiscal year 2002.

(G) $100,000,000 for fiscal year 2003.

(H) $112,000,000 for fiscal year 2004.

(I) $106,000,000 for fiscal year 2005.

(2) Bureau of Land Management:

(A) $4,500,000 for fiscal year 1997.

(B) $5,000,000 for fiscal year 1998.

(C) $5,000,000 for fiscal year 1999.

(D) $5,000,000 for fiscal year 2000.

(E) $5,000,000 for fiscal year 2001.

(F) $5,000,000 for fiscal year 2002.

(G) $5,000,000 for fiscal year 2003.

(H) $5,000,000 for fiscal year 2004.

(I) $5,000,000 for fiscal year 2005.

(3) Forest Service:

(A) $20,000,000 for fiscal year 1997.

(B) $20,600,000 for fiscal year 1998.

(C) $21,200,000 for fiscal year 1999.

(D) $21,900,000 for fiscal year 2000.

(E) $22,500,000 for fiscal year 2001.

(F) $23,600,000 for fiscal year 2002.

(G) $24,300,000 for fiscal year 2003.

(H) $25,000,000 for fiscal year 2004.

(I) $25,800,000 for fiscal year 2005.

Beginning in fiscal year 2006, and in each fiscal year thereafter, the amounts set forth in this section for each covered agency in fiscal year 2005 shall be increased by 4 percent per year, and 80 percent of all receipts earned in excess of such amounts for each covered agency shall be made available to that agency without further appropriation.

SEC. 5453. ALLOCATION AND USE OF FEES.

(a) ALLOCATION- Beginning in fiscal year 1997, receipts above the amounts stated in section 5452 in each covered agency's special account from the previous fiscal year shall be allocated as follows:

(1) Seventy-five percent shall be allocated among the units or areas of each affected agency in the same proportion as fees collected pursuant to section 4 of the Land and Water Conservation Fund Act of 1965 (16 U.S.C. 460l-6a) from a specific unit or area bear to the total amount of such fees collected from all units or areas of the same covered agency for each fiscal year.

(2) Twenty-five percent shall be allocated among each covered agency's units or areas on the basis of need, as determined by the Secretary.

(b) USE- Expenditures from the special accounts shall be used solely for infrastructure related to visitor use and annual operating expenses related to visitor services at units or areas of the covered agencies.

CHAPTER 12--CONCESSION REFORM

SEC. 5461. SHORT TITLE.

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

SEC. 5462. DEFINITIONS.

In this chapter:

(1) `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) `agency head' means the head of an agency or his or her designated representative.

(3) `bidder' means a person who has submitted, or may submit, a proposal respecting the facilities or services, whether or not such bidder is the current concessioner.

(4) `concessioner' means a person or other entity acting under a concession authorization which provides public services, facilities, or activities on Federal lands pursuant to a concession service agreement or concession license.

(5) `concession authorization' means a concession service agreement or concession license as applicable.

(6) `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.

(7) `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.

(8) `Consumer Price Index' means the Consumer Price Index-All Urban Consumers published by the Bureau of Labor Statistics of the Department of Labor, and from and after such time as such index is no longer published, the Consumer Price Index or other regularly-published cost-of-living index chosen by the Secretary concerned which reasonably approximates the Consumer Price Index specified above.

(9) `gross receipts' means revenue from goods or services provided by concession services, facilities, or activities on Federal lands and waters.

(10) `performance incentive' means a credit based on past performance toward the score awarded by the Secretary concerned to an incumbent concessioner's proposal submitted in response to a solicitation for the reissuance of such incumbent concessioner's contract.

(11) `proposal' means the complete submission for a concession service agreement offered in response to the solicitation for such concession service agreement.

(12) `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.

(13) `Secretary concerned' means --

(A) the Secretary of the Interior with respect to all concession authorizations issued by the National Park Service, and all concession authorizations for river runner, outfitter, or guide concessions issued by the United States Fish and Wildlife Service and the Bureau of Land Management; and

(B) the Secretary of Agriculture with respect to all river runner, outfitter, or guide concessions issued by the Forest Service.

(14) `selected bidder' means the bidder selected by the Secretary concerned for the award of a concession service agreement until such bidder becomes the concessioner.

(15) `solicitation' means a request by the Secretary concerned for proposals in response to a prospectus.

SEC. 5463. NATURE AND TYPES OF CONCESSION AUTHORIZATIONS.

(a) IN GENERAL- The Secretary concerned may enter into concession authorizations as follows:

(1) CONCESSION SERVICE AGREEMENT- A concession service agreement shall be entered into for all concessions where the Secretary concerned determines 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.

(2) CONCESSION LICENSE- Whenever the Secretary concerned makes a determination that public enjoyment of Federal lands would be enhanced through the provision of concession services for one-time, intermittent, or infrequently scheduled activities and that there exists no need to limit the number of concessionaires providing such services, the Secretary shall enter into a concession license with a qualified concessioner. The Secretary concerned may not limit the number of concession licenses issued for the same types of activities in a particular geographic area.

(3) LANDS UNDER MULTIPLE JURISDICTIONS- In order to reduce administrative costs 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 concession authorization and collect a single fee under paragraphs (1) and (2) for such operation.

SEC. 5464. COMPETITIVE SELECTION PROCESS FOR CONCESSION SERVICE AGREEMENTS.

(a) AWARD TO BEST PROPOSAL- The Secretary concerned 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- Prior to making a solicitation for a concession service agreement, the Secretary concerned shall prepare a prospectus for such solicitation, shall publish notice of its availability at least once in such local or national newspapers or trade publications as the Secretary determines appropriate, and shall make such prospectus available upon request to all interested parties. The prospectus shall specify the minimum requirements for such concession service agreement, including but not limited to:

(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 concerned to the concessioner, if any, including but not limited to public access, utilities, buildings, and minimum public services.

(5) such other information related to the concession operation available to the Secretary concerned as is not privileged or otherwise exempt from disclosure under Federal law, as the Secretary determines is necessary to allow for the submission of competitive proposals; and

(6) Local hiring preferences provisions, if applicable, and notwithstanding any other provision of law, to increase revenue to the United States by avoiding additional transportation and related costs associated with non-resident labor, each contract awarded by the Department of the Interior for concessioner or commercial use contractor-provided visitor services performed in whole or in part of a State which is not contiguous with another State and has an unemployment rate in excess of the national average rate of unemployment, as determined by the Secretary of Labor shall include a provision requiring the concessioner or commercial use contractor to employ individuals who are residents of such State, and who, in the case of any craft or trade, possess or would be able to acquire promptly the necessary skills for the purpose of performing that portion of the contract in such State.

(7) Minimum fees to the United States.

(c) FACTORS AND MINIMUM STANDARDS IN DETERMINING BEST PROPOSAL- The prospectus shall assign a weight to each factor identified 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 selecting 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 to be provided taking into account the nature of equipment and facilities to be provided.

(3) Experience and performance in providing the same or similar accommodations, facilities, or 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 subsection (e) and renewal penalties incurred under subsection (f).

(3) Third, the Secretary concerned shall offer the concession service agreement to the best qualified applicant as determined by the evaluation under paragraph (2). Prior to any such offer, the Secretary shall certify that such applicant has adequate funds to purchase any investment interest.

(e) PERFORMANCE INCENTIVES-

(1) In evaluating the proposal of an incumbent concessioner when the Secretary concerned issues a prospectus for the renewal of the concession service agreement, such concessioner is entitled to a performance incentive of--

(A) one percent of the maximum points available under such prospectus for each year in which the concessioner's annual performance is rated as exceeding the requirements outlined in the prospectus or `good', and

(B) a one-time 3-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 prospectus.

(3) The performance incentive specified under paragraph (1)(A) may only be awarded to a concessioner which meets the monetary definition of a small business under section 3 of the Small Business Act (15 U.S.C. 632). The Board of Contract Appeals within each Department shall adjudicate disputes between the Federal Government and concessionaires regarding performance evaluations.

(f) RENEWAL PENALTY- In evaluating the proposal of an incumbent concessioner when the Secretary concerned issues a prospectus for the renewal of the concession service agreement, the incumbent concessioner shall be penalized one percent of the maximum points available under such prospectus for each year in which the concessioner's annual performance is found to be unsatisfactory.

(g) 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 not to be a major Federal action for the purposes of the National Environmental Policy Act of 1969 (42 U.S.C. 4331 et. seq.).

(h) PROVISION FOR ADDITIONAL RELATED SERVICES- The Secretary concerned may modify the concession service agreement to allow concessionaires to provide services closely related to such agreement only 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. 5465. CAPITAL IMPROVEMENTS.

(a) IN GENERAL- Concessionaires may construct or finance construction under terms of section 5470 only such public facilities on Federal lands as are to be used by the concessioner under the terms of its 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 that is required or authorized under a concession service agreement pursuant to this subchapter to acquire or construct any structure, improvement, or fixture pursuant to such agreement on Federal lands shall have an investment interest therein, as defined in this subchapter. Any such investment interest shall consist of all incidents of ownership, except legal title which shall be vested in the Federal Government. 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- Notwithstanding paragraph (1), a concession service agreement may specify that certain new structures, improvements, or fixtures required to be constructed under terms of the concession service agreement shall be property of the Federal Government subject only to the right of the concessioner to use such improvements during the term of such agreement and that the concessioner shall not be accorded an investment interest therein. Concession service agreements shall not, to the extent practicable, provide for a concessioner to obtain an investment interest in any building or facilities wholly owned by the Federal Government.

(c) SALE OF ASSETS- If the existing concessioner is not the selected bidder 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 concession. In the event that the successor concessioner is unable to fully pay such investment interest, any deficiency shall be paid by the Federal Government.

(d) CLOSURE OF CONCESSIONER FACILITIES- If the Secretary concerned determines 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 Federal Government 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 subchapter, the investment interest of any capital improvement at the end of the concession service agreement period shall be an amount equal to the actual cost of construction or purchase of such investment interest or such capital improvement adjusted from the time of completion of such construction by changes in the Consumer Price Index less depreciation evidenced by the condition and prospective serviceability in comparison with a new unit of like kind. The Secretary concerned shall include the value to be paid by the selected bidder for any existing investment interest in the prospectus for the related concession service agreement.

SEC. 5466. DURATION OF CONCESSION AUTHORIZATION.

(a) CONCESSION SERVICE AGREEMENT- The standard term of a concession service agreement shall be 10 years. The Secretary concerned may issue a concession service agreement for less than 10 years if the Secretary determines 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 5 years. The Secretary concerned shall issue a concession service agreement for longer than 10 years if the Secretary determines 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 2 years.

(c) TEMPORARY EXTENSION- The Secretary concerned may agree to temporary extensions of concession service agreements for up to 2 years on a noncompetitive basis to avoid interruption of services to the public.

SEC. 5467. 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. 5468. TRANSFERABILITY OF CONCESSION AUTHORIZATIONS.

(a) CONCESSION SERVICE AGREEMENTS-

(1) APPROVAL REQUIRED- A concession service agreement is transferable or assignable only with 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, term, 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 concerned 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 to have been 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.

(b) CONCESSION LICENSE- A concession license may not be transferred.

SEC. 5469. 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 subchapter. 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 5465 (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 5464. 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 in paragraph (3), the final fee shall be the amount bid by the selected applicant under section 5464.

(3) SUBSTANTIALLY SIMILAR SERVICES IN A SPECIFIC GEOGRAPHIC AREA- When 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 concessionaires 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- 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 if stated in the contract on the basis of inflation, when 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 unforseen disaster.

(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. 5470. 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 perform maintenance or make improvements to Government-owned facilities occupied by the concessioner, require the concessioner to establish a concession improvement account. The concessioner shall deposit into this account all funds for maintenance of or improvements to Government-owned facilities occupied by the concessioner;

(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 money in the account with any other money.

(3) DISBURSEMENTS- The concessioner shall make disbursements from the account for improvements and other activities, only for capital improvements or maintenance of improvements to Government-owned facilities occupied by the concessioner as specified in the concession service agreement.

(4) TRANSFER OF REMAINING BALANCE- On the termination of a concession authorization, or on 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) When the concessioner is required to make capital improvements to other than Government-owned facilities occupied by the concessioner in accordance with a concession service agreement, the concessioner shall have the option to control and expend such funds directly.

(c) AMOUNTS RECEIVED RELATING TO PRIVILEGE OF PROVIDING CONCESSION SERVICES AND RENTAL OF GOVERNMENT-OWNED FACILITIES-

(1) DEPOSIT INTO TREASURY- The Secretary concerned shall deposit in the Treasury of the United States as miscellaneous receipts all funds not deposited in concession improvement accounts or funds for capital improvements specified in (b) above, including specifically amounts received for a fiscal year for the privilege of providing concession services and the rental of Government-owned facilities, except that of the amount of fees paid by vessel operators for the privilege of entering into Glacier Bay, Alaska, 50 percent of such fees for the 5-year period beginning on the first full fiscal year following the date of enactment of this subchapter shall be deposited into a special account and that such funds shall be available without further appropriation and may only be used to conduct research to quantify any effect of such vessel activity on wildlife and other natural resource values of Glacier Bay National Park. For the National Park Service such deposits into the Treasury shall total not less than the amounts specified in the table in paragraph (2). For the other agencies covered under this subchapter, 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 not later than 18 months after the date of enactment of this Act. Nothing in this chapter 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- The table referred to in paragraph (1), expressed by fiscal year, 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.

(d) Beginning in fiscal year 1998, the Inspector General of the Department concerned shall conduct a biennial audit of concession fees generated pursuant to this chapter. The Inspector General shall make a determination as to whether concession fees are being collected and expended in accordance with this chapter 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. 5471. REGULATIONS.

The Secretary concerned shall promulgate regulations to implement this chapter no later than 2 years after the date of enactment of this Act. Subsequent to the date of enactment of this chapter, no new concession authorization may be issued, nor may any existing concession authorization be amended or extended, unless such authorization, amendment, or extension is fully consistent with sections 5465, 5469(c), and 5470.

SEC. 5472. RELATIONSHIP TO OTHER 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.

(b) 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 subsection (a) shall not affect the validity of any authorizations entered into under any such Act. The provisions of this chapter 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 chapter.

(3) VALUE OF CAPITAL IMPROVEMENTS OR POSSESSORY INTEREST- Nothing in this chapter shall be construed to change the value as of the date of enactment of this chapter for existing capital improvements or possessory interest as identified in concession contracts entered into before the date of enactment of this Act. Subsequent to enactment of this chapter, the increase in value for any possessory interest established under any concession contract in effect on the date of enactment of this chapter shall be as provided for in this chapter unless otherwise specifically provided in the contract.

(4) ANILCA- Nothing in this chapter 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) PROCEDURES FOR CONSIDERING EXISTING CONCESSIONAIRES IN REISSUANCE OF CONTRACTS- In the case of a concession contract which has expired prior to the date of the enactment of this Act, or within 5 years after the date of the enactment of this Act, an 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 5 years or later after the date of enactment of this Act, any concessioner shall be entitled to a performance incentive in accordance with this chapter. The concessioner shall be entitled to an evaluation of `good' for each year in which the Secretary concerned does not complete an evaluation as provided for in this chapter.

TITLE VI--FEDERAL RETIREMENT AND RELATED PROVISIONS

Subtitle A--Civil Service and Postal Service Provisions

SEC. 6001. EXTENSION OF DELAY IN COST-OF-LIVING ADJUSTMENTS IN FEDERAL EMPLOYEE RETIREMENT BENEFITS THROUGH FISCAL YEAR 2002.

Section 11001(a) of the Omnibus Budget Reconciliation Act of 1993 (Public Law 103-66; 107 Stat. 408) is amended in the matter preceding paragraph (1) by striking out `or 1996,' and inserting in lieu thereof `1996, 1997, 1998, 1999, 2000, 2001, or 2002,'.

SEC. 6002. INCREASED CONTRIBUTIONS TO FEDERAL CIVILIAN RETIREMENT SYSTEMS.

(a) CIVIL SERVICE RETIREMENT SYSTEM-

(1) DEDUCTIONS- The first sentence of section 8334(a)(1) of title 5, United States Code, is amended to read as follows: `The employing agency shall deduct and withhold from the basic pay of an employee, Member, Congressional employee, law enforcement officer, firefighter, bankruptcy judge, judge of the United States Court of Appeals for the Armed Forces, United States magistrate, or Claims Court judge, as the case may be, the percentage of basic pay applicable under subsection (c).'.

(2) AGENCY CONTRIBUTIONS-

(A) INCREASE IN AGENCY CONTRIBUTIONS DURING CALENDAR YEARS 1996 THROUGH 2002- Section 8334(a)(1) of title 5, United States Code (as amended by this section) is further amended--

(i) by inserting `(A)' after `(1)'; and

(ii) by adding at the end thereof the following new subparagraph:

`(B)(i) Notwithstanding subparagraph (A), the agency contribution under the second sentence of such subparagraph, during the period beginning on January 1, 1996, through December 31, 2002--

`(I) for each employing agency (other than the United States Postal Service or the Washington Metropolitan Airport Authority) shall be 8.51 percent of the basic pay of an employee, Congressional employee, and a Member of Congress, 9.01 percent of the basic pay of a law enforcement officer, a member of the Capitol Police, and a firefighter, and 8.51 percent of the basic pay of a Claims Court judge, a United States magistrate, a judge of the United States Court of Appeals for the Armed Services, and a bankruptcy judge, as the case may be; and

`(II) for the United States Postal Service and the Washington Metropolitan Airport Authority shall be 7 percent of the basic pay of an employee and 7.5 percent of the basic pay of a law enforcement officer or firefighter.'.

(B) NO REDUCTION IN AGENCY CONTRIBUTIONS BY THE POSTAL SERVICE- Agency contributions by the United States Postal Service under section 8348(h) of title 5, United States Code--

(i) shall not be reduced as a result of the amendments made under paragraph (3) of this subsection; and

(ii) shall be computed as though such amendments had not been enacted.

(3) INDIVIDUAL DEDUCTIONS, WITHHOLDINGS, AND DEPOSITS- The table under section 8334(c) of title 5, United States Code, is amended--

(A) in the matter relating to an employee by striking out