Report text available as:

  • TXT
  • PDF   (PDF provides a complete and accurate display of this text.) Tip ?

   104th Congress 1st 
         Session        HOUSE OF REPRESENTATIVES        Report
                                                       104-350
_______________________________________________________________________


 
                      BALANCED BUDGET ACT OF 1995

                               ----------                              

                           CONFERENCE REPORT

                              to accompany

                               H.R. 2491







  November 16 (legislative day of November 15), 1995.--Ordered to be 
                                printed
   104th Congress 1st   HOUSE OF REPRESENTATIVES        Report
         Session
                                                       104-350
_______________________________________________________________________



                      BALANCED BUDGET ACT OF 1995

                               __________

                           CONFERENCE REPORT

                              to accompany

                               H.R. 2491







  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.''.
    (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 111 the following new item:

``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


                                ``7..........  After December 31,       
                                                1969.''                 
                                                                        


                and inserting in lieu thereof the following:


                                ``7..........  January 1, 1970, to      
                                                December 31, 1995.      
                                 7.25........  January 1, 1996, to      
                                                December 31, 1996.      
                                 7.4.........  January 1, 1997, to      
                                                December 31, 1997.      
                                 7.5.........  January 1, 1998, to      
                                                December 31, 2002.      
                                 7...........  After December 31,       
                                                2002.'';                
                                                                        


                    (B) in the matter relating to a Member or 
                employee for Congressional employee service by 
                striking out


                                ``7\1/2\.....  After December 31,       
                                                1969.''                 
                                                                        


                and inserting in lieu thereof the following:


                                ``7.5........  January 1, 1970, to      
                                                December 31, 1995.      
                                 7.25........  January 1, 1996, to      
                                                December 31, 1996.      
                                 7.4.........  January 1, 1997, to      
                                                December 31, 1997.      
                                 7.5.........  January 1, 1998, to      
                                                December 31, 2002.      
                                 7...........  After December 31,       
                                                2002.'';                
                                                                        


                    (C) in the matter relating to a Member for 
                Member service by striking out


                                ``8..........  After December 31,       
                                                1969.''                 
                                                                        


                and inserting in lieu thereof the following:


                                ``8..........  January 1, 1970, to      
                                                December 31, 1995.      
                                 7.25........   January 1, 1996, to     
                                                December 31, 1996.      
                                 7.4.........  January 1, 1997, to      
                                                December 31, 1997.      
                                 7.5.........  January 1, 1998, to      
                                                December 31, 2002.      
                                 7...........  After December 31,       
                                                2002.'';                
                                                                        


                    (D) in the matter relating to a law 
                enforcement officer for law enforcement service 
                and firefighter for firefighter service by 
                striking out


                                ``7\1/2\.....  After December 31,       
                                                1974.''                 
                                                                        


                and inserting in lieu thereof the following:


                                ``7.5........  January 1, 1975, to      
                                                December 31, 1995.      
                                 7.75........  January 1, 1996, to      
                                                December 31, 1996.      
                                 7.9.........  January 1, 1997, to      
                                                December 31, 1997.      
                                 8...........  January 1, 1998, to      
                                                December 31, 2002.      
                                 7.5.........  After December 31,       
                                                2002.'';                
                                                                        


                    (E) in the matter relating to a bankruptcy 
                judge by striking out


                                ``8..........  After December 31,       
                                                1983.''                 
                                                                        


                and inserting in lieu thereof the following:


                                ``8..........  January 1, 1984, to      
                                                December 31, 1995.      
                                 7.25........  January 1, 1996, to      
                                                December 31, 1996.      
                                 7.4.........  January 1, 1997, to      
                                                December 31, 1997.      
                                 7.5.........  January 1, 1998, to      
                                                December 31, 2002.      
                                 7...........  After December 31,       
                                                2002.'';                
                                                                        


                    (F) in the matter relating to a judge of 
                the United States Court of Appeals for the 
                Armed Forces for service as a judge of that 
                court by striking out


                                ``8..........  On and after the date of 
                                                the enactment of the    
                                                Department of Defense   
                                                Authorization Act,      
                                                1984.''                 
                                                                        


                and inserting in lieu thereof the following:


                                ``8..........  The date of the enactment
                                                of the Department of    
                                                Defense Authorization   
                                                Act, 1984, to December  
                                                31, 1995.               
                                 7.25........  January 1, 1996, to      
                                                December 31, 1996.      
                                 7.4.........  January 1, 1997, to      
                                                December 31, 1997.      
                                 7.5.........  January 1, 1998, to      
                                                December 31, 2002.      
                                 7...........  After December 31,       
                                                2002.'';                
                                                                        


                    (G) in the matter relating to a United 
                States magistrate by striking out


                                ``8..........  After September 30,      
                                                1987.''                 
                                                                        


                and inserting in lieu thereof the following:


                                ``8..........  October 1, 1987, to      
                                                December 31, 1995.      
                                 7.25........  January 1, 1996, to      
                                                December 31, 1996.      
                                 7.4.........  January 1, 1997, to      
                                                December 31, 1997.      
                                 7.5.........  January 1, 1998, to      
                                                December 31, 2002.      
                                 7...........  After December 31,       
                                                2002.'';                
                                                                        


                    (H) in the matter relating to a Claims 
                Court judge by striking out


                                ``8..........  After September 30,      
                                                1988.''                 
                                                                        


                and inserting in lieu thereof the following:


                                ``8..........  October 1, 1988, to      
                                                December 31, 1995.      
                                 7.25........  January 1, 1996, to      
                                                December 31, 1996.      
                                 7.4.........  January 1, 1997, to      
                                                December 31, 1997.      
                                 7.5.........  January 1, 1998, to      
                                                December 31, 2002.      
                                 7...........  After December 31,       
                                                2002.'';                
                                                                        


                and
                    (I) by inserting after the matter relating 
                to a Claims Court judge the following:


``Member of the Capitol Police  2.5..........  August 1, 1920, to June  
                                                30, 1926.               
                                3.5..........  July 1, 1926, to June 30,
                                                1942.                   
                                5............  July 1, 1942, to June 30,
                                                1948.                   
                                6............  July 1, 1948, to October 
                                                31, 1956.               
                                6.5..........  November 1, 1956, to     
                                                December 31, 1969.      
                                7.5..........  January 1, 1970, to      
                                                December 31, 1995.      
                                7.75.........  January 1, 1996, to      
                                                December 31, 1996.      
                                7.9..........  January 1, 1997, to      
                                                December 31, 1997.      
                                8............  January 1, 1998, to      
                                                December 31, 2002.      
                                7.5..........  After December 31,       
                                                2002.''.                
                                                                        


            (4) Other service.--
                    (A) Military service.--Section 8334(j) of 
                title 5, United States Code, is amended--
                            (i) in paragraph (1)(A) by 
                        inserting ``and subject to paragraph 
                        (5),'' after ``Except as provided in 
                        subparagraph (B),''; and
                            (ii) by adding at the end thereof 
                        the following new paragraph:
    ``(5) Effective with respect to any period of military 
service after December 31, 1995, the percentage of basic pay 
under section 204 of title 37 payable under paragraph (1) shall 
be equal to the same percentage as would be applicable under 
section 8334(c) for that same period for service as an 
employee, subject to paragraph (1)(B).''.
                    (B) Volunteer service.--Section 8334(l) of 
                title 5, United States Code, is amended--
                            (i) in paragraph (1) by adding at 
                        the end thereof the following: ``This 
                        paragraph shall be subject to paragraph 
                        (4).''; and
                            (ii) by adding at the end thereof 
                        the following new paragraph:
    ``(4) Effective with respect to any period of service after 
December 31, 1995, the percentage of the readjustment allowance 
or stipend (as the case may be) payable under paragraph (1) 
shall be equal to the same percentage as would be applicable 
under section 8334(c) for that same period for service as an 
employee.''.
    (b) Federal Employees Retirement System.--
            (1) Individual deductions and withholdings.--
                    (A) In general.--Section 8422(a) of title 
                5, United States Code, is amended by striking 
                out paragraph (2) and inserting in lieu thereof 
                the following:
    ``(2) The percentage to be deducted and withheld from basic 
pay for any pay period shall be equal to--
            ``(A) the applicable percentage under paragraph 
        (3), minus
            ``(B) the percentage then in effect under section 
        3101(a) of the Internal Revenue Code of 1986 (relating 
        to rate of tax for old-age, survivors, and disability 
        insurance).
    ``(3) The applicable percentage under this paragraph, for 
civilian service shall be as follows:


Employee.....................  7..............  Before January 1, 1996. 
                               7.25...........  January 1, 1996, to     
                                                 December 31, 1996.     
                               7.4............  January 1, 1997, to     
                                                 December 31, 1997.     
                               7.5............  January 1, 1998, to     
                                                 December 31, 2002.     
                               7..............  After December 31, 2002.
 Congressional employee......  7.5............  Before January 1, 1996. 
                               7.25...........  January 1, 1996, to     
                                                 December 31, 1996.     
                               7.4............  January 1, 1997, to     
                                                 December 31, 1997.     
                               7.5............  January 1, 1998, to     
                                                 December 31, 2002.     
                               7..............  After December 31, 2002.
 Member......................  7.5............  Before January 1, 1996. 
                               7.25...........  January 1, 1996, to     
                                                 December 31, 1996.     
                               7.4............  January 1, 1997, to     
                                                 December 31, 1997.     
                               7.5............  January 1, 1998, to     
                                                 December 31, 2002.     
                               7..............  After December 31, 2002.
 Law enforcement officer,      7.5............  Before January 1, 1996. 
 firefighter, member of the                                             
 Capitol Police, or air                                                 
 traffic controller.                                                    
                               7.75...........  January 1, 1996, to     
                                                 December 31, 1996.     
                               7.9............  January 1, 1997, to     
                                                 December 31, 1997.     
                               8..............  January 1, 1998, to     
                                                 December 31, 2002.     
                               7.5............  After December 31, 2002.
                                                                        


                    (B) Military service.--Section 8422(e) of 
                title 5, United States Code, is amended--
                            (i) in paragraph (1)(A) by 
                        inserting ``and subject to paragraph 
                        (6),'' after ``Except as provided in 
                        subparagraph (B),''; and
                            (ii) by adding at the end thereof 
                        the following:
            ``(6) The percentage of basic pay under section 204 
        of title 37 payable under paragraph (1), with respect 
        to any period of military service performed during--
                    ``(A) January 1, 1996, through December 31, 
                1996, shall be 3.25 percent;
                    ``(B) January 1, 1997, through December 31, 
                1997, shall be 3.4 percent; and
                    ``(C) January 1, 1998, through December 31, 
                2002, shall be 3.5 percent.''.
                    (C) Volunteer service.--Section 8422(f) of 
                title 5, United States Code, is amended--
                            (i) in paragraph (1) by adding at 
                        the end thereof the following: ``This 
                        paragraph shall be subject to paragraph 
                        (4).''; and
                            (ii) by adding at the end the 
                        following:
            ``(4) The percentage of the readjustment allowance 
        or stipend (as the case may be) payable under paragraph 
        (1), with respect to any period of volunteer service 
        performed during--
                    ``(A) January 1, 1996, through December 31, 
                1996, shall be 3.25 percent;
                    ``(B) January 1, 1997, through December 31, 
                1997, shall be 3.4 percent; and
                    ``(C) January 1, 1998, through December 31, 
                2002, shall be 3.5 percent.''.
            (2) No reduction in agency contributions.--Agency 
        contributions under section 8423 (a) and (b) of title 
        5, United States Code , shall not be reduced as a 
        result of the amendments made under paragraph (1) of 
        this subsection.
    (c) Effective Date.--The amendments made by this section 
shall take effect on the first day of the first applicable pay 
period beginning on or after January 1, 1996.

SEC. 6003. FEDERAL RETIREMENT PROVISIONS RELATING TO MEMBERS OF 
                    CONGRESS AND CONGRESSIONAL EMPLOYEES.

    (a) Relating to the Years of Service as a Member of 
Congress and Congressional Employees for Purposes of Computing 
an Annuity.--
            (1) CSRS.--Section 8339 of title 5, United States 
        Code, is amended--
                    (A) in subsection (a) by inserting ``or 
                Member'' after ``employee''; and
                    (B) by striking out subsections (b) and 
                (c).
            (2) FERS.--Section 8415 of title 5, United States 
        Code, is amended--
                    (A) by striking out subsections (b) and 
                (c);
                    (B) in subsections (a) and (g) by inserting 
                ``or Member'' after ``employee'' each place it 
                appears; and
                    (C) in subsection (g)(2) by striking out 
                ``Congressional employee''.
    (b) Accrual Rate for Member and Congressional Employee 
Service Performed but Not Vested Before Effective Date.--
            (1) Application.--This subsection shall apply to an 
        individual who--
                    (A) is a Member of Congress or 
                Congressional employee on December 31, 1995;
                    (B) has performed less than 5 years of 
                service as a Member of Congress or 
                Congressional employee on December 31, 1995; 
                and
                    (C) after December 31, 1995, completes 5 
                years of service as a Member of Congress or 
                Congressional employee, that includes a period 
                of service performed as a Member of Congress or 
                Congressional employee before January 1, 1996.
            (2) Computation of annuity.-- In computing the 
        annuity of an individual described under paragraph 
        (1)--
                    (A) any period of service as a Member of 
                Congress or Congressional employee performed 
                before January 1, 1996, shall be computed under 
                section 8339 or 8415 of title 5, United States 
                Code (as though the amendments under subsection 
                (a) of this section were not enacted); and
                    (B) the 5 year service requirement under 
                subsections (b) and (c) of section 8339 or 8415 
                of such title (as in effect before the date of 
                enactment of this Act) shall be deemed 
                fulfilled.
    (c) Capitol Police.--Section 8339(q) of title 5, United 
States Code, is amended by striking out ``with subsection (b), 
except that, in the case of a member who retires under section 
8335(d) or 8336(m), and who meets the requirements of 
subsection (b)(2),'' and inserting in lieu thereof ``with 
subsection (a), except that in the case of a member who retires 
under section 8335(d) or 8336(m), and who has deductions 
withheld from his pay or has made deposit covering his last 5 
years of civilian service,''.
    (d) Administrative Regulations.--The Office of Personnel 
Management, in consultation with the Secretary of the Senate 
and the Clerk of the House of Representatives, may prescribe 
regulations to carry out the provisions of this section and the 
amendments made by this section for applicable employees and 
Members of Congress.
    (e) Effective Dates.--
            (1) Years of service; annuity computation.--
                    (A) Service after effective date.--The 
                amendments made by subsection (a) shall take 
                effect on January 1, 1996, and shall apply only 
                with respect to the computation of an annuity 
                relating to--
                            (i) the service of a Member of 
                        Congress as a Member or as a 
                        Congressional employee performed on or 
                        after January 1, 1996; and
                            (ii) the service of a Congressional 
                        employee as a Congressional employee 
                        performed on or after January 1, 1996.
                    (B) Service before effective date.--An 
                annuity shall be computed as though the 
                amendments made under subsection (a) had not 
                been enacted with respect to--
                            (i) the service of a Member of 
                        Congress as a Member or a Congressional 
                        employee or military service performed 
                        before January 1, 1996; and
                            (ii) the service of a Congressional 
                        employee as a Congressional employee or 
                        military service performed before 
                        January 1, 1996.
                    (C) Alternative effective date relating to 
                members of congress.--If a court of competent 
                jurisdiction makes a final determination that a 
                provision of this paragraph violates the 27th 
                amendment of the United States Constitution, 
                the effective date and application dates 
                relating to Members of Congress shall be 
                January 1, 1997.
            (2) Administrative provisions.--The provisions of 
        subsections (b), (c), and (d) shall take effect on the 
        date of the enactment of this Act.

SEC. 6004. ACCRUAL RATES RELATING TO CERTAIN JUDGES WITH SIMILAR 
                    TREATMENT AS CONGRESSIONAL SERVICE.

    (a) Judge of the United States Court of Military Appeals.--
Section 8339(d)(7) of title 5, United States Code, is amended 
by striking out ``service.'' and inserting in lieu thereof 
``service performed before January 1, 1996.''.
    (b) Claims Court Judge, Bankruptcy Judge, United States 
Magistrate.--Section 8339(n) of title 5, United States Code, is 
amended by striking out ``service.'' and inserting in lieu 
thereof ``service performed before January 1, 1996. The annuity 
of any such employee is, with respect to any service referred 
to in the preceding sentence that is performed on or after 
January 1, 1996, computed under subsection (a).''.

SEC. 6005. REPEAL OF AUTHORIZATION OF TRANSITIONAL APPROPRIATIONS FOR 
                    THE UNITED STATES POSTAL SERVICE.

    (a) Repeal.--
            (1) In general.--Section 2004 of title 39, United 
        States Code, is repealed.
            (2) Technical and conforming amendments.--
                    (A) The table of sections for chapter 20 of 
                such title is amended by repealing the item 
                relating to section 2004.
                    (B) Section 2003(e)(2) of such title is 
                amended by striking ``sections 2401 and 2004'' 
                each place it appears and inserting ``section 
                2401''.
    (b) Clarification That Liabilities Formerly Paid Pursuant 
to Section 2004 Remain Liabilities Payable by the Postal 
Service.--Section 2003 of title 39, United States Code, is 
amended by adding at the end the following:
    ``(h) Liabilities of the former Post Office Department to 
the Employees' Compensation Fund (appropriations for which were 
authorized by former section 2004, as in effect before the 
effective date of this subsection) shall be liabilities of the 
Postal Service payable out of the Fund.''.
    (c) Effective Date.--
            (1) In general.--This section and the amendments 
        made by this section shall be effective as of October 
        1, 1995.
            (2) Provisions relating to payments for fiscal year 
        1996.--
                    (A) Amounts not yet paid.--No payment may 
                be made to the Postal Service Fund, on or after 
                the date of the enactment of this Act, pursuant 
                to any appropriation for fiscal year 1996 
                authorized by section 2004 of title 39, United 
                States Code (as in effect before the effective 
                date of this section).
                    (B) Amounts paid.--If any payment to the 
                Postal Service Fund is or has been made 
                pursuant to an appropriation for fiscal year 
                1996 authorized by such section 2004, then an 
                amount equal to the amount of such payment 
                shall be paid from such Fund into the Treasury 
                as miscellaneous receipts.

                 Subtitle B--Patent and Trademark Fees

SEC. 6011. PATENT AND TRADEMARK FEES.

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

                     Subtitle C--GSA Property Sales

SEC. 6021. SALE OF GOVERNORS ISLAND, NEW YORK.

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

SEC. 6022. SALE OF AIR RIGHTS.

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

SEC. 6023. AVAILABILITY OF SURPLUS PROPERTY FOR HOMELESS ASSISTANCE.

    (a) Repeal.--(1) Title V of the Stewart B. McKinney 
Homeless Assistance Act (42 U.S.C. 11411 et seq.) is repealed.
    (2) The table of contents in section 101(b) of that Act is 
amended by striking the items relating to title V.
    (3) This subsection shall be effective October 1, 1995.
    (b) Authority To Transfer Surplus Real Property for Housing 
Use.--Section 203 of the Federal Property and Administrative 
Services Act of 1949 (40 U.S.C. 484) is amended by adding at 
the end the following:
    ``(r) Under such regulations as the Administrator may 
prescribe, and in consultation with appropriate local 
governmental authorities, the Administrator may transfer to any 
nonprofit organization which exists for the primary purpose of 
providing housing or housing assistance for homeless 
individuals or families, such surplus real property, including 
buildings, fixtures, and equipment situated thereon, as is 
needed for housing use.
    ``(s)(1) Under such regulations as the Administrator may 
prescribe, and in consultation with appropriate local 
governmental authorities, the Administrator may transfer to any 
non-profit organization which exists for the primary purpose of 
providing housing or housing assistance for low-income 
individuals or families such surplus real property, including 
buildings, fixtures, and equipment situated thereon, as is 
needed for housing use.
    ``(2) In making transfers under this subsection, the 
Administrator shall take such actions, which may include grant 
agreements with an organization receiving a grant, as may be 
necessary to ensure that--
            ``(A) assistance provided under this subsection is 
        used to facilitate and encourage homeownership 
        opportunities through the construction of self-help 
        housing, under terms which require that the person 
        receiving the assistance contribute a significant 
        amount of labor toward the construction; and
            ``(B) the dwellings constructed with property 
        transferred under this subsection shall be quality 
        dwellings that comply with local building and safety 
        codes and standards and shall be available at prices 
        below the prevailing market prices.''.

           TITLE VII--TRANSFORMATION OF THE MEDICAID PROGRAM

SEC. 7000. SHORT TITLE OF TITLE; TABLE OF CONTENTS OF TITLE.

    (a) Short Title of Title.--This title may be cited as the 
``Medicaid Transformation Act of 1995''.
    (b) Table of Contents of Title.--The table of contents of 
this title is as follows:
Sec. 7000. Short title of title; table of contents of title.
Sec. 7001. Transformation of medicaid program.
Sec. 7002. Termination of current program and transition.
Sec. 7003. Medicare/MediGrant integration demonstration project.

SEC. 7001. TRANSFORMATION OF MEDICAID PROGRAM.

    The Social Security Act is amended by adding at the end the 
following new title:

 ``TITLE XXI--MEDIGRANT PROGRAM FOR LOW-INCOME INDIVIDUALS AND FAMILIES


                      ``table of contents of title


``Sec. 2100. Purpose; State MediGrant plans.

     ``Part A--Objectives, Goals, and Performance Under State Plans

``Sec. 2101. Description of strategic objectives and performance goals.
``Sec. 2102. Annual reports.
``Sec. 2103. Periodic, independent evaluations.
``Sec. 2104. Description of process for MediGrant plan development.
``Sec. 2105. Consultation in MediGrant plan development.

             ``Part B--Eligibility, Benefits, and Set-Asides

``Sec. 2111. Eligibility and benefits.
``Sec. 2112. Set-asides of funds.
``Sec. 2113. Premiums and cost-sharing.
``Sec. 2114. Description of process for developing capitation payment 
          rates.
``Sec. 2115. Preventing spousal impoverishment.
``Sec. 2116. State flexibility.

                      ``Part C--Payments to States

``Sec. 2121. Allotment of funds among States.
``Sec. 2122. Payments to States.
``Sec. 2123. Limitation on use of funds; disallowance.

                 ``Part D--Program Integrity and Quality

``Sec. 2131. Use of audits to achieve fiscal integrity.
``Sec. 2132. Fraud prevention program.
``Sec. 2133. Information concerning sanctions taken by State licensing 
          authorities against health care practitioners and providers.
``Sec. 2134. State MediGrant fraud control units.
``Sec. 2135. Recoveries from third parties and others.
``Sec. 2136. Assignment of rights of payment.
``Sec. 2137. Quality assurance requirements for nursing facilities.
``Sec. 2138. Other provisions promoting program integrity.

        ``Part E--Establishment and Amendment of MediGrant Plans

``Sec. 2151. Submittal and approval of MediGrant plans.
``Sec. 2152. Submittal and approval of plan amendments.
``Sec. 2153. Process for State withdrawal from program.
``Sec. 2154. Sanctions for noncompliance.
``Sec. 2155. Secretarial authority.

                      ``Part F--General Provisions

``Sec. 2171. Definitions.
``Sec. 2172. Treatment of territories.
``Sec. 2173. Description of treatment of Indian Health Service 
          facilities.
``Sec. 2174. Application of certain general provisions.
``Sec. 2175. MediGrant master drug rebate agreements.

``SEC. 2100. PURPOSE; STATE MEDIGRANT PLANS.

    ``(a) Purpose.--The purpose of this title is to provide 
block grants to States to enable them to provide medical 
assistance to low-income individuals and families in a more 
effective, efficient, and responsive manner.
    ``(b) State Plan Required.--A State is not eligible for 
payment under section 2122 of this title unless the State has 
submitted to the Secretary under part E a plan (in this title 
referred to as a `MediGrant plan') that--
            ``(1) sets forth how the State intends to use the 
        funds provided under this title to provide medical 
        assistance to needy individuals and families consistent 
        with the provisions of this title, and
            ``(2) is approved under such part.
    ``(c) Continued Approval.--An approved MediGrant plan shall 
continue in effect unless and until--
            ``(1) the State amends the plan under section 2152,
            ``(2) the State terminates participation under this 
        title under section 2153, or
            ``(3) the Secretary finds substantial noncompliance 
        of the plan with the requirements of this title under 
        section 2154.
    ``(d) State Entitlement.--This title constitutes budget 
authority in advance of appropriations Acts, and represents the 
obligation of the Federal Government to provide for the payment 
to States of amounts provided under part C.

     ``Part A--Objectives, Goals, and Performance Under State Plans

``SEC. 2101. DESCRIPTION OF STRATEGIC OBJECTIVES AND PERFORMANCE GOALS.

    ``(a) Description.--A MediGrant plan shall include a 
description of the strategic objectives and performance goals 
the State has established for providing health care services to 
low-income populations under this title, including a general 
description of the manner in which the plan is designed to meet 
these objectives and goals.
    ``(b) Certain Objectives and Goals Required.--A MediGrant 
plan shall include strategic objectives and performance goals 
relating to rates of childhood immunizations and reductions in 
infant mortality and morbidity.
    ``(c) Considerations.--In specifying these objectives and 
goals the State may consider factors such as the following:
            ``(1) The State's priorities with respect to 
        providing assistance to low-income populations.
            ``(2) The State's priorities with respect to the 
        general public health and the health status of 
        individuals eligible for assistance under the MediGrant 
        plan.
            ``(3) The State's financial resources, the 
        particular economic conditions in the State, and 
        relative adequacy of the health care infrastructure in 
        different regions of the State.
    ``(d) Performance Measures.--To the extent practicable--
            ``(1) one or more performance goals shall be 
        established by the State for each strategic objective 
        identified in the MediGrant plan; and
            ``(2) the MediGrant plan shall describe, how 
        program performance will be--
                    ``(A) measured through objective, 
                independently verifiable means, and
                    ``(B) compared against performance goals, 
                in order to determine the State's performance 
                under this title.
    ``(e) Period Covered.--
            ``(1) Strategic objectives.--The strategic 
        objectives shall cover a period of not less than 5 
        years and shall be updated and revised at least every 3 
        years.
            ``(2) Performance goals.--The performance goals 
        shall be established for dates that are not more than 3 
        years apart.

``SEC. 2102. ANNUAL REPORTS.

    ``(a) In General.--In the case of a State with a MediGrant 
plan that is in effect for part or all of a fiscal year, no 
later than March 31 following such fiscal year (or March 31, 
1998, in the case of fiscal year 1996) the State shall prepare 
and submit to the Secretary and the Congress a report on 
program activities and performance under this title for such 
fiscal year.
    ``(b) Contents.--Each annual report under this section for 
a fiscal year shall include the following:
            ``(1) Expenditure and beneficiary summary.--
                    ``(A) Initial summary.--For the report for 
                fiscal year 1997 (and, if applicable, fiscal 
                year 1996), a summary of all expenditures under 
                the MediGrant plan during the fiscal year (and 
                during any portions of fiscal year 1996 during 
                which the MediGrant plan was in effect under 
                this title) as follows:
                            ``(i) Aggregate medical assistance 
                        expenditures, disaggregated to the 
                        extent required to determine compliance 
                        with the set-aside requirements of 
                        subsections (a) through (d) of section 
                        2112 and to compute the case mix index 
                        under section 2121(d)(3).
                            ``(ii) For each general category of 
                        eligible individuals (specified in 
                        subsection (c)(1), aggregate medical 
                        assistance expenditures and the total 
                        and average number of eligible 
                        individuals under the MediGrant plan.
                            ``(iii) By each general category of 
                        eligible individuals, total 
                        expenditures for each of the categories 
                        of health care items and services 
                        (specified in subsection (c)(2)) which 
                        are covered under the MediGrant plan 
                        and provided on a fee-for-service 
                        basis.
                            ``(iv) By each general category of 
                        eligible individuals, total 
                        expenditures for payments to capitated 
                        health care organizations (as defined 
                        in section 2114(c)(1)).
                            ``(v) Total administrative 
                        expenditures.
                    ``(B) Subsequent summaries.--For reports 
                for each succeeding fiscal year, a summary of--
                            ``(i) all expenditures under the 
                        MediGrant plan, and
                            ``(ii) the total and average number 
                        of eligible individuals under the 
                        MediGrant plan for each general 
                        category of eligible individuals.
            ``(2) Utilization summary.--
                    ``(A) Initial summary.--For the report for 
                fiscal year 1997 (and, if applicable, fiscal 
                year 1996), summary statistics on the 
                utilization of health care services under the 
                MediGrant plan during the year (and during any 
                portions of fiscal year 1996 during which the 
                MediGrant plan was in effect under this title) 
                as follows:
                            ``(i) For each general category of 
                        eligible individuals and for each of 
                        the categories of health care items and 
                        services which are covered under the 
                        MediGrant plan and provided on a fee-
                        for-service basis, the number and 
                        percentage of persons who received such 
                        a type of service or item during the 
                        period covered by the report.
                            ``(ii) Summary of health care 
                        utilization data reported to the State 
                        by capitated health care organizations.
                    ``(B) Subsequent summaries.--For reports 
                for each succeeding fiscal year, summary 
                statistics on the utilization of health care 
                services under the MediGrant plan.
            ``(3) Achievement of performance goals.--With 
        respect to each performance goal established under 
        section 2101 and applicable to the year involved--
                    ``(A) a brief description of the goal;
                    ``(B) a description of the methods to be 
                used to measure the attainment of such goal;
                    ``(C) data on the actual performance with 
                respect to the goal;
                    ``(D) a review of the extent to which the 
                goal was achieved, based on such data; and
                    ``(E) if a performance goal has not been 
                met--
                            ``(i) why the goal was not met, and
                            ``(ii) actions to be taken in 
                        response to such performance, including 
                        adjustments in performance goals or 
                        program activities for subsequent 
                        years.
            ``(4) Program evaluations.--A summary of the 
        findings of evaluations under section 2103 completed 
        during the fiscal year covered by the report.
            ``(5) Fraud and abuse and quality control 
        activities.--A general description of the State's 
        activities under part D to detect and deter fraud and 
        abuse and to assure quality of services provided under 
        the program.
            ``(6) Plan administration.--
                    ``(A) A description of the administrative 
                roles and responsibilities of entities in the 
                State responsible for administration of this 
                title.
                    ``(B) Organizational charts for each entity 
                in the State primarily responsible for 
                activities under this title.
                    ``(C) A brief description of each 
                interstate compact (if any) the State has 
                entered into with other States with respect to 
                activities under this title.
                    ``(D) General citations to the State 
                statutes and administrative rules governing the 
                State's activities under this title.
    ``(c) Description of Categories.--In this section:
            ``(1) General categories of eligible individuals.--
        Each of the following is a general category of eligible 
        individuals:
                    ``(A) Pregnant women.
                    ``(B) Children.
                    ``(C) Blind or disabled adults who are not 
                elderly individuals.
                    ``(D) Elderly individuals.
                    ``(E) Other adults.
            ``(2) Categories of health care items and 
        services.--The health care items and services described 
        in each paragraph of section 2171(a) shall be 
        considered a separate category of health care items and 
        services.

``SEC. 2103. PERIODIC, INDEPENDENT EVALUATIONS.

    ``(a) In General.--During fiscal year 1998 and every third 
fiscal year thereafter, each State shall provide for an 
evaluation of the operation of its MediGrant plan under this 
title.
    ``(b) Independent.--Each such evaluation with respect to an 
activity under the MediGrant plan shall be conducted by an 
entity that is neither responsible under State law for the 
submission of the State MediGrant plan (or part thereof) nor 
responsible for administering (or supervising the 
administration of) the activity. If consistent with the 
previous sentence, such an entity may be a college or 
university, a State agency, a legislative branch agency in a 
State, or an independent contractor.
    ``(c) Research Design.--Each such evaluation shall be 
conducted in accordance with a research design that is based on 
generally accepted models of survey design and sampling and 
statistical analysis.

``SEC. 2104. DESCRIPTION OF PROCESS FOR MEDIGRANT PLAN DEVELOPMENT.

    ``Each MediGrant plan shall include a description of the 
process under which the plan shall be developed and implemented 
in the State (consistent with section 2105).

``SEC. 2105. CONSULTATION IN MEDIGRANT PLAN DEVELOPMENT.

    ``(a) Public Notice Process.--Before submitting a MediGrant 
plan or a plan amendment described in subsection (c) to the 
Secretary under part E, a State shall provide--
            ``(1) public notice respecting the submittal of the 
        proposed plan or amendment, including a general 
        description of the plan or amendment,
            ``(2) a means for the public to inspect or obtain a 
        copy (at reasonable charge) of the proposed plan or 
        amendment,
            ``(3) an opportunity for submittal and 
        consideration of public comments on the proposed plan 
        or amendment, and
            ``(4) for consultation with one or more advisory 
        committees established and maintained by the State.
The previous sentence shall not apply to a revision of a 
MediGrant plan (or revision of an amendment to a plan) made by 
a State under section 2154(c)(1) or to a plan amendment 
withdrawal described in section 2154(c)(4).
    ``(b) Contents of Notice.--A notice under subsection (a)(1) 
for a proposed plan or amendment shall include a description 
of--
            ``(1) the general purpose of the proposed plan or 
        amendment (including applicable effective dates),
            ``(2) where the public may inspect the proposed 
        plan or amendment,
            ``(3) how the public may obtain a copy of the 
        proposed plan or amendment and the applicable charge 
        (if any) for the copy, and
            ``(4) how the public may submit comments on the 
        proposed plan or amendment, including any deadlines 
        applicable to consideration of such comments.
    ``(c) Amendments Described.--An amendment to a MediGrant 
plan described in this subsection is an amendment which makes a 
material and substantial change in eligibility under the 
MediGrant plan or the benefits provided under the plan.
    ``(d) Publication.--Notices under this section may be 
published (as selected by the State) in one or more daily 
newspapers of general circulation in the State or in any 
publication used by the State to publish State statutes or 
rules.
    ``(e) Comparable Process.--A separate notice, or notices, 
shall not be required under this section for a State if notice 
of the MediGrant plan or an amendment to the plan will be 
provided under a process specified in State law that is 
substantially equivalent to the notice process specified in 
this section.

            ``Part B--Eligibility, Benefits, and Set-Asides

``SEC. 2111. ELIGIBILITY AND BENEFITS.

    ``(a) Description of General Eligibility and Benefits.--
Each MediGrant plan shall include a description (consistent 
with this title) of the following:
            ``(1) General eligibility standards.--The general 
        eligibility standards of the plan for eligible low-
        income individuals (including individuals described in 
        subsection (b)), including--
                    ``(A) any limitations as to the duration of 
                eligibility,
                    ``(B) any eligibility standards relating to 
                age, income and resources (including any 
                standards relating to spenddowns and 
                disposition of resources), residency, 
                disability status, immigration status, or 
                employment status of individuals,
                    ``(C) methods of establishing and 
                continuing eligibility and enrollment, 
                including the methodology for computing family 
                income,
                    ``(D) the eligibility standards in the plan 
                that protect the income and resources of a 
                married individual who is living in the 
                community and whose spouse is residing in an 
                institution in order to prevent the 
                impoverishment of the community spouse, and
                    ``(E) any other standards relating to 
                eligibility for medical assistance under the 
                plan.
            ``(2) Scope of assistance.--The amount, duration, 
        and scope of health care services and items covered 
        under the plan, including differences among different 
        eligible population groups.
            ``(3) Delivery method.--The State's approach to 
        delivery of medical assistance, including a general 
        description of--
                    ``(A) the use (or intended use) of 
                vouchers, fee-for-service, or managed care 
                arrangements (such as capitated health care 
                plans, case management, and case coordination); 
                and
                    ``(B) utilization control systems.
            ``(4) Fee-for-service benefits.--To the extent that 
        medical assistance is furnished on a fee-for-service 
        basis--
                    ``(A) how the State determines the 
                qualifications of health care providers 
                eligible to provide such assistance; and
                    ``(B) how the State determines rates of 
                reimbursement for providing such assistance.
            ``(5) Cost-sharing.--Beneficiary cost-sharing (if 
        any), including variations in such cost-sharing by 
        population group or type of service and financial 
        responsibilities of parents of recipients who are 
        children and the spouses of recipients.
            ``(6) Utilization incentives.--Incentives or 
        requirements (if any) to encourage the appropriate 
        utilization of services.
            ``(7) Support for certain hospitals.--
                    ``(A) In general.--With respect to 
                hospitals described in subparagraph (B) located 
                in the State, a description of the extent to 
                which provisions are made for expenditures for 
                items and services furnished by such hospitals 
                and covered under the MediGrant plan.
                    ``(B) Hospitals described.--A hospital 
                described in this subparagraph is a short-term 
                acute care general hospital or a children's 
                hospital, the low-income utilization rate of 
                which exceeds the lesser of--
                            ``(i) 1 standard deviation above 
                        the mean low-income utilization rate 
                        for hospitals receiving payments under 
                        a MediGrant plan in the State in which 
                        such hospital is located, or
                            ``(ii) 1\1/4\ standard deviations 
                        above the mean low-income utilization 
                        rate for hospitals receiving such 
                        payments in the 50 States and the 
                        District of Columbia.
                    ``(C) Low-income utilization rate.--For 
                purposes of subparagraph (B), the term `low-
                income utilization rate' means, for a hospital, 
                a fraction (expressed as a percentage), the 
                numerator of which is the hospital's number of 
                patient days attributable to patients who (for 
                such days) were eligible for medical assistance 
                under a MediGrant plan or were uninsured in a 
                period, and the denominator of which is the 
                total number of the hospital's patient days in 
                that period.
                    ``(D) Patient days.--For purposes of 
                subparagraph (C), the term `patient day' 
                includes each day in which--
                            ``(i) an individual, including a 
                        newborn, is an inpatient in the 
                        hospital, whether or not the individual 
                        is in a specialized ward and whether or 
                        not the individual remains in the 
                        hospital for lack of suitable placement 
                        elsewhere; or
                            ``(ii) an individual makes one or 
                        more outpatient visits to the hospital.
    ``(b) Mandatory Coverage.--Each MediGrant plan shall 
provide for making medical assistance available (subject to the 
eligibility standards described under the plan pursuant to 
subsection (a)(1) and State flexibility of benefits under 
section 2116) to--
            ``(1) any pregnant woman or child under the age of 
        13 whose family income does not exceed the poverty line 
        applicable to a family of the size involved, and
            ``(2) any individual who is disabled, as defined by 
        the State.
    ``(c) Immunizations for Children.--The MediGrant plan shall 
provide medical assistance for immunizations for children 
eligible for any medical assistance under the MediGrant plan, 
in accordance with a schedule for immunizations established by 
the Health Department of the State in consultation with the 
individuals and entities in the State responsible for the 
administration of the plan.
    ``(d) Family Planning Services.--The MediGrant plan shall 
provide prepregnancy planning services and supplies as 
specified by the State.
    ``(e) Preexisting Condition Exclusions.--Notwithstanding 
any other provision of this title--
            ``(1) a MediGrant plan may not deny or exclude 
        coverage of any item or service for an eligible 
        individual for benefits under the MediGrant plan for 
        such item or service on the basis of a preexisting 
        condition; and
            ``(2) if a State contracts or makes other 
        arrangements (through the eligible individual or 
        through another entity) with a capitated health care 
        organization, insurer, or other entity, for the 
        provision of items or services to eligible individuals 
        under the MediGrant plan and the State permits such 
        organization, insurer, or other entity to exclude 
        coverage of a covered item or service on the basis of a 
        preexisting condition, the State shall provide, through 
        its MediGrant plan, for such coverage (through direct 
        payment or otherwise) for any such covered item or 
        service denied or excluded on the basis of a 
        preexisting condition.
    ``(f) Family Responsibility.--A MediGrant plan may not 
require an adult child with a family income below the State 
median income (as determined by the State) applicable to a 
family of the size involved to contribute to the cost of 
covered nursing facility services and other long-term care 
services for the child's parent under the plan.
    ``(g) Solvency Standards for Capitated Health Care 
Organizations.--
            ``(1) In general.--A State may not contract with a 
        capitated health care organization, as defined in 
        section 2114(c)(1), for the provision of medical 
        assistance under a MediGrant plan under which the 
        organization is--
                    ``(A) at full financial risk, as defined by 
                the State, unless the organization meets 
                solvency standards established by the State for 
                private health maintenance organizations, or
                    ``(B) is not at such risk, unless the 
                organization meets solvency standards that are 
                established under the MediGrant plan.
            ``(2) Treatment of public entities.--Paragraph (1) 
        shall not apply to an organization that is a public 
        entity or if the solvency of such organization is 
        guaranteed by the State.
            ``(3) Transition.--In the case of a capitated 
        health care organization that as of the date of the 
        enactment of this title has entered into a contract 
        with a State for the provision of medical assistance 
        under title XIX under which the organization assumes 
        full financial risk and is receiving capitation 
        payments, paragraph (1) shall not apply to such 
        organization until 3 years after the date of the 
        enactment of this title.

``SEC. 2112. SET-ASIDES OF FUNDS.

    ``(a) For Targeted Low-Income Families.--
            ``(1) In general.--Subject to subsection (f), a 
        MediGrant plan shall provide that the amount of funds 
        expended under the plan for medical assistance for 
        targeted low-income families (as defined in paragraph 
        (3)) for a fiscal year shall be not less than the 
        minimum low-income-family percentage specified in 
        paragraph (2) of the total funds expended under the 
        plan for all medical assistance for the fiscal year.
            ``(2) Minimum low-income-family percentage.--The 
        minimum low-income-family percentage specified in this 
        paragraph for a State is equal to 85 percent of the 
        average percentage of the expenditures under title XIX 
        for medical assistance in the State during Federal 
        fiscal years 1992 through 1994 which were attributable 
        to expenditures for medical assistance for mandated 
        benefits (as defined in subsection (h)) furnished to 
        individuals--
                    ``(A) who (at the time of furnishing the 
                assistance) were under 65 years of age;
                    ``(B) whose coverage (at such time) under a 
                State plan under title XIX was required under 
                Federal law; and
                    ``(C) whose eligibility for such coverage 
                (at such time) was not on a basis directly 
                related to disability status, including being 
                blind.
            ``(3) Targeted low-income family defined.--In this 
        subsection, the term `targeted low-income family' means 
        a family (which may be an individual)--
                    ``(A) which includes a child or a pregnant 
                woman; and
                    ``(B) the income of which does not exceed 
                185 percent of the poverty line applicable to a 
                family of the size involved.
    ``(b) For Low-Income Elderly.--
            ``(1) Set-asides.--Subject to subsection (f)--
                    ``(A) General set-aside.--A MediGrant plan 
                shall provide that the amount of funds expended 
                under the plan for medical assistance for 
                eligible low-income elderly individuals for a 
                fiscal year shall be not less than the minimum 
                low-income-elderly percentage specified in 
                paragraph (2)(A) of the total funds expended 
                under the plan for all medical assistance for 
                the fiscal year.
                    ``(B) Set-aside for medicare premium 
                assistance.--A MediGrant plan shall provide 
                that the amount of funds expended under the 
                plan for medical assistance for medicare cost-
                sharing described in section 2171(c)(1) for a 
                fiscal year shall be not less than the minimum 
                medicare premium assistance percentage 
                specified in paragraph (2)(B) of the total 
                funds expended under the plan for all medical 
                assistance for the fiscal year. The MediGrant 
                plan shall provide priority for such making 
                such assistance available for targeted low-
                income elderly individuals (as defined in 
                paragraph (3)).
            ``(2) Minimum percentages.--
                    ``(A) For general set-aside.--The minimum 
                low-income-elderly percentage specified in this 
                subparagraph for a State is equal to 85 percent 
                of the average percentage of the expenditures 
                under title XIX for medical assistance in the 
                State during Federal fiscal years 1992 through 
                1994 which was attributable to expenditures for 
                medical assistance for mandated benefits 
                furnished to individuals--
                            ``(i) whose eligibility for such 
                        assistance was based on their being 65 
                        years of age or older; and
                            ``(ii)(I) whose coverage (at such 
                        time) under a State plan under title 
                        XIX was required under Federal law, or 
                        (II) who (at such time) were residents 
                        of a nursing facility.
                    ``(B) For set-aside for medicare premium 
                assistance.--The minimum medicare premium 
                assistance percentage specified in this 
                subparagraph for a State is equal to 90 percent 
                of the average percentage of the expenditures 
                under title XIX for medical assistance in the 
                State during Federal fiscal years 1993 through 
                1995 which was attributable to expenditures for 
                medical assistance for medicare premiums 
                described in section 1905(p)(3)(A) for 
                individuals whose coverage (at such time) for 
                such assistance for such premiums under a State 
                plan under title XIX was required under Federal 
                law.
            ``(3) Targeted low-income elderly individual 
        defined.--In this subsection, the term `targeted low-
        income elderly individual' means an elderly individual 
        whose family income does not exceed 100 percent of the 
        poverty line applicable to a family of the size 
        involved.
    ``(c) For Low-Income Disabled Persons.--
            ``(1) In general.--Subject to subsection (f), a 
        MediGrant plan shall provide that the percentage of 
        funds expended under the plan for medical assistance 
        for eligible low-income individuals who are not elderly 
        individuals and who are eligible for such assistance on 
        the basis of a disability, including being blind, for a 
        fiscal year is not less than the minimum low-income-
        disabled percentage specified in paragraph (2) of the 
        total funds expended under the plan for medical 
        assistance for the fiscal year.
            ``(2) Minimum low-income-disabled percentage.--The 
        minimum low-income-disabled percentage specified in 
        this paragraph for a State is equal to 85 percent of 
        the average percentage of the expenditures under title 
        XIX for medical assistance in the State during Federal 
        fiscal years 1992 through 1994 which was attributable 
        to expenditures for medical assistance for mandated 
        benefits furnished to individuals--
                    ``(A) whose coverage (at such time) under a 
                State plan under title XIX was required under 
                Federal law; and
                    ``(B) whose coverage (at such time) was on 
                a basis directly related to disability status, 
                including being blind.
    ``(d) For Services Provided at Federally Qualified Health 
Centers and Rural Health Clinics.--Subject to subsection (f), a 
MediGrant plan shall provide that the amount of funds expended 
under the plan for medical assistance for services provided at 
rural health clinics (as defined in section 1861(aa)(2)) and 
Federally-qualified health centers (as defined in section 
1861(aa)(4)), for eligible low-income individuals for a fiscal 
year is not less than 85 percent of the average annual 
expenditures under title XIX for medical assistance in the 
State during Federal fiscal years 1992 through 1994 which were 
attributable to expenditures for medical assistance for rural 
health clinic services and Federally-qualified health center 
services (as defined in section 1905(l)).
    ``(e) Use of Residual Funds.--
            ``(1) In general.--Subject to limitations on 
        payment under section 2123, any funds not required to 
        be expended under the set-asides under the previous 
        subsections may be expended under the MediGrant plan 
        for any of the following:
                    ``(A) Additional medical assistance.--
                Medical assistance for eligible low-income 
                individuals (as defined in section 2171(b)), in 
                addition to any medical assistance made 
                available under a previous subsection.
                    ``(B) Medically-related services.--Payment 
                for medically-related services (as defined in 
                paragraph (2)).
                    ``(C) Administration.--Payment for the 
                administration of the MediGrant plan.
            ``(2) Medically-related services defined.--In this 
        title, the term `medically-related services' means 
        services reasonably related to, or in direct support 
        of, the State's attainment of one or more of the 
        strategic objectives and performance goals established 
        under section 2101, but does not include items and 
        services included on the list under section 2171(a) 
        (relating to the definition of medical assistance).
    ``(f) Exceptions to Minimum Set-Asides.--
            ``(1) Alternative minimum set-asides.--
                    ``(A) In general.--A State may provide in 
                its MediGrant plan (through an amendment to the 
                plan) for a lower percentage of expenditures 
                than the minimum percentages specified in any 
                (or all) of paragraphs (2) of subsections (a), 
                (b), (c), and (d) if the State determines (and 
                certifies to the Secretary) that--
                            ``(i) the health care needs of the 
                        low-income populations described in 
                        paragraph (1) of the subsections (a), 
                        (b), (c), or (d) who are eligible for 
                        medical assistance under the plan 
                        during the previous fiscal year (or 
                        medicare premium assistance needs 
                        described in subsection (b)(1)(B)) can 
                        be reasonably met without the 
                        expenditure of the percentages 
                        otherwise required to be expended,
                            ``(ii) the performance goals 
                        established under section 2101 relating 
                        to the respective population can 
                        reasonably be met with the expenditure 
                        of such lower percentage of funds, and
                            ``(iii) in the case of subsection 
                        (d) with respect to rural health clinic 
                        services and Federally-qualified health 
                        center services, the health care needs 
                        of eligible low-income individuals 
                        residing in medically underserved rural 
                        areas can reasonably be met without the 
                        level of expenditure for such services 
                        otherwise required and the performance 
                        goals established under section 2101 
                        relating to such individuals can 
                        reasonably be met with such lower level 
                        of expenditures.
                    ``(B) Period of application.--The 
                determination and certification under 
                subparagraph (A) shall be made for such period 
                as a State may request, but may not be made for 
                a period of more than 3 consecutive Federal 
                fiscal years (beginning with the first fiscal 
                year for which the lower percentage is sought). 
                A new determination and certification must be 
                made under such clause for any subsequent 
                period.
                    ``(C) No exception permitted before fiscal 
                year 1998.--This paragraph may not apply with 
                respect to the percentages described in 
                paragraphs (2) of subsections (a), (b), and (c) 
                for a fiscal year before fiscal year 1998.
            ``(2) Independent certification of compliance with 
        goals.--
                    ``(A) In general.--For purposes of section 
                2151(c), a MediGrant plan shall not be 
                considered to be in substantial violation of 
                the requirements of this section if the amount 
                of actual State expenditures specified in any 
                (or all) of paragraphs (1) of subsections (a), 
                (b), (c), and (d) is lower than the minimum 
                percentages specified in any (or all) of 
                paragraphs (2) of such subsections if an 
                independent actuary determines and certifies to 
                the State that the MediGrant plan is reasonably 
                designed to result in a level of expenditures 
                which is consistent with the requirements of 
                such subsections.
                    ``(B) Limit on variation.--Subparagraph (A) 
                shall not apply in the case of a MediGrant plan 
                for which the actual State expenditures 
                described in any (or all) of paragraphs (1) of 
                subsections (a), (b), (c), and (d) are less 
                than 95 percent of the expenditures which would 
                be made if the amount of State expenditures 
                specified in any (or all) of such paragraphs 
                was equal to the applicable minimum percentage 
                specified in any (or all) of paragraphs (2) of 
                such subsections.
    ``(g) Computations.--States shall calculate the minimum 
percentages under paragraphs (2) of subsections (a), (b), (c), 
and (d) in a reasonable manner consistent with reports 
submitted to the Secretary for the fiscal years involved and 
medical assistance attributable to the exception provided under 
section 1903(v)(2) shall not be considered to be expenditures 
for medical assistance.
    ``(h) Benefits Included for Purposes of Computing Set-
Asides.--In this section, the term `mandated benefits'--
            ``(1) means medical assistance for items and 
        services described in section 1905(a) to the extent 
        such assistance with respect to such items and services 
        was required to be provided under title XIX,
            ``(2) includes medical assistance for medicare 
        cost-sharing only to the extent such assistance was 
        required to be provided under section 1902(a)(10)(E), 
        and
            ``(3) does not include medical assistance 
        attributable to disproportionate share payment 
        adjustments described in section 1923.

``SEC. 2113. PREMIUMS AND COST-SHARING.

    ``(a) In General.--Subject to subsection (b), if any 
charges are imposed under the MediGrant plan for cost-sharing 
(as defined in subsection (d)), such cost-sharing shall be 
pursuant to a public cost-sharing schedule.
    ``(b) Limitation on Premium and Certain Cost-Sharing for 
Low-Income Families Including Children or Pregnant Women.--
            ``(1) In general.--In the case of a pregnant woman 
        or a child who is a member of a family described in 
        paragraph (2)--
                    ``(A) the plan shall not impose any 
                premium, and
                    ``(B) the plan shall not (except as 
                provided in subsection (c)(1)) impose any cost-
                sharing with respect to primary and preventive 
                care services (as defined by the State) covered 
                under the MediGrant plan for children or 
                pregnant women unless such cost-sharing is 
                nominal in nature.
            ``(2) Family described.--A family described in this 
        paragraph is a family (which may be an individual) 
        which--
                    ``(A) includes a child or a pregnant woman,
                    ``(B) is made eligible for medical 
                assistance under the MediGrant plan, and
                    ``(C) the income of which does not exceed 
                100 percent of the poverty line applicable to a 
                family of the size involved.
    ``(c) Certain Cost-Sharing Permitted.--Nothing in this 
section shall be construed as preventing a MediGrant plan 
(consistent with subsection (b))--
            ``(1) from imposing cost-sharing to discourage the 
        inappropriate use of emergency medical services 
        delivered through a hospital emergency room, a medical 
        transportation provider, or otherwise,
            ``(2) from imposing premiums and cost-sharing 
        differentially in order to encourage the use of primary 
        and preventive care and discourage unnecessary or less 
        economical care,
            ``(3) from scaling cost-sharing in a manner that 
        reflects economic factors, employment status, and 
        family size,
            ``(4) from scaling cost-sharing based on the 
        availability to the individual or family of other 
        health insurance coverage, or
            ``(5) from scaling cost-sharing based on 
        participation in employment training programs, drug or 
        alcohol abuse treatment, counseling programs, or other 
        programs promoting personal responsibility.
    ``(d) Cost-Sharing Defined.--In this section, the term 
`cost-sharing' includes copayments, deductibles, coinsurance, 
and other charges for the provision of health care services.

``SEC. 2114. DESCRIPTION OF PROCESS FOR DEVELOPING CAPITATION PAYMENT 
                    RATES.

    ``(a) In General.--If a State contracts (or intends to 
contract) with a capitated health care organization (as defined 
in subsection (c)(1)) under which the State makes a capitation 
payment (as defined in subsection (c)(2)) to the organization 
for providing or arranging for the provision of medical 
assistance under the MediGrant plan for a group of services, 
including at least inpatient hospital services and physicians' 
services, the plan shall include a description of the 
following:
            ``(1) Use of actuarial science.--The extent and 
        manner in which the State uses actuarial science--
                    ``(A) to analyze and project health care 
                expenditures and utilization for individuals 
                enrolled (or to be enrolled) in such an 
                organization under the MediGrant plan, and
                    ``(B) to develop capitation payment rates, 
                including a brief description of the general 
                methodologies used by actuaries.
            ``(2) Qualifications of organizations.--The general 
        qualifications, including any accreditation, State 
        licensure or certification, or provider network 
        standards, required by the State for participation of 
        capitated health care organizations under the MediGrant 
        plan.
            ``(3) Dissemination process.--The process used by 
        the State under subsection (b) and otherwise to 
        disseminate, before entering into contracts with 
        capitated health care organizations, actuarial 
        information to such organizations on the historical 
        fee-for-service costs (or, if not available, other 
        recent financial data associated with providing covered 
        services) and utilization associated with individuals 
        described in paragraph (1)(A).
    ``(b) Public Notice and Comment.--Under the MediGrant plan 
the State shall provide a process for providing, before the 
beginning of each contract year--
            ``(1) public notice of--
                    ``(A) the amounts of the capitation 
                payments (if any) made under the plan for the 
                contract year preceding the public notice, and
                    ``(B)(i) the information described under 
                subsection (a)(1) with respect to capitation 
                payments for the contract year involved, or 
                (ii) amounts of the capitation payments the 
                State expects to make for the contract year 
                involved,
        unless such information is designated as proprietary 
        and not subject to public disclosure under State law, 
        and
            ``(2) an opportunity for receiving public comment 
        on the amounts and information for which notice is 
        provided under paragraph (1).
    ``(c) Definitions.--In this title:
            ``(1) Capitated health care organization.--The term 
        `capitated health care organization' means a health 
        maintenance organization or any other entity (including 
        a health insuring organization, managed care 
        organization, prepaid health plan, integrated service 
        network, or similar entity) which under State law is 
        permitted to accept capitation payments for providing 
        (or arranging for the provision of) a group of items 
        and services including at least inpatient hospital 
        services and physicians' services.
            ``(2) Capitation payment.--The term `capitation 
        payment' means, with respect to payment, payment on a 
        prepaid capitation basis or any other risk basis to an 
        entity for the entity's provision (or arranging for the 
        provision) of a group of items and services, including 
        at least inpatient hospital services and physicians' 
        services.

``SEC. 2115. PREVENTING SPOUSAL IMPOVERISHMENT.

    ``(a) Special Treatment for Institutionalized Spouses.--
            ``(1) Supersedes other provisions.--In determining 
        the eligibility for medical assistance of an 
        institutionalized spouse (as defined in subsection 
        (h)(1)), the provisions of this section supersede any 
        other provision of this title which is inconsistent 
        with them.
            ``(2) Does not affect certain determinations.--
        Except as this section specifically provides, this 
        section does not apply to--
                    ``(A) the determination of what constitutes 
                income or resources, or
                    ``(B) the methodology and standards for 
                determining and evaluating income and 
                resources.
            ``(3) No application in commonwealths and 
        territories.--This section shall only apply to a State 
        that is one of the 50 States or the District of 
        Columbia.
    ``(b) Rules for Treatment of Income.--
            ``(1) Separate treatment of income.--During any 
        month in which an institutionalized spouse is in the 
        institution, except as provided in paragraph (2), no 
        income of the community spouse shall be deemed 
        available to the institutionalized spouse.
            ``(2) Attribution of income.--In determining the 
        income of an institutionalized spouse or community 
        spouse for purposes of the post-eligibility income 
        determination described in subsection (d), except as 
        otherwise provided in this section and regardless of 
        any State laws relating to community property or the 
        division of marital property, the following rules 
        apply:
                    ``(A) Non-trust property.--Subject to 
                subparagraphs (C) and (D), in the case of 
                income not from a trust, unless the instrument 
                providing the income otherwise specifically 
                provides--
                            ``(i) if payment of income is made 
                        solely in the name of the 
                        institutionalized spouse or the 
                        community spouse, the income shall be 
                        considered available only to that 
                        respective spouse,
                            ``(ii) if payment of income is made 
                        in the names of the institutionalized 
                        spouse and the community spouse, \1/2\ 
                        of the income shall be considered 
                        available to each of them, and
                            ``(iii) if payment of income is 
                        made in the names of the 
                        institutionalized spouse or the 
                        community spouse, or both, and to 
                        another person or persons, the income 
                        shall be considered available to each 
                        spouse in proportion to the spouse's 
                        interest (or, if payment is made with 
                        respect to both spouses and no such 
                        interest is specified, \1/2\ of the 
                        joint interest shall be considered 
                        available to each spouse).
                    ``(B) Trust property.--In the case of a 
                trust--
                            ``(i) except as provided in clause 
                        (ii), income shall be attributed in 
                        accordance with the provisions of this 
                        title; and
                            ``(ii) income shall be considered 
                        available to each spouse as provided in 
                        the trust, or, in the absence of a 
                        specific provision in the trust--
                                    ``(I) if payment of income 
                                is made solely to the 
                                institutionalized spouse or the 
                                community spouse, the income 
                                shall be considered available 
                                only to that respective spouse,
                                    ``(II) if payment of income 
                                is made to both the 
                                institutionalized spouse and 
                                the community spouse, \1/2\ of 
                                the income shall be considered 
                                available to each of them, and
                                    ``(III) if payment of 
                                income is made to the 
                                institutionalized spouse or the 
                                community spouse, or both, and 
                                to another person or persons, 
                                the income shall be considered 
                                available to each spouse in 
                                proportion to the spouse's 
                                interest (or, if payment is 
                                made with respect to both 
                                spouses and no such interest is 
                                specified, \1/2\ of the joint 
                                interest shall be considered 
                                available to each spouse).
                    ``(C) Property with no instrument.--In the 
                case of income not from a trust in which there 
                is no instrument establishing ownership, 
                subject to subparagraph (D), \1/2\ of the 
                income shall be considered to be available to 
                the institutionalized spouse and \1/2\ to the 
                community spouse.
                    ``(D) Rebutting ownership.--The rules of 
                subparagraphs (A) and (C) are superseded to the 
                extent that an institutionalized spouse can 
                establish, by a preponderance of the evidence, 
                that the ownership interests in income are 
                other than as provided under such 
                subparagraphs.
    ``(c) Rules for Treatment of Resources.--
            ``(1) Computation of spousal share at time of 
        institutionalization.--
                    ``(A) Total joint resources.--There shall 
                be computed (as of the beginning of the first 
                continuous period of institutionalization of 
                the institutionalized spouse)--
                            ``(i) the total value of the 
                        resources to the extent either the 
                        institutionalized spouse or the 
                        community spouse has an ownership 
                        interest, and
                            ``(ii) a spousal share which is 
                        equal to \1/2\ of such total value.
                    ``(B) Assessment.--At the request of an 
                institutionalized spouse or community spouse, 
                at the beginning of the first continuous period 
                of institutionalization of the 
                institutionalized spouse and upon the receipt 
                of relevant documentation of resources, the 
                State shall promptly assess and document the 
                total value described in subparagraph (A)(i) 
                and shall provide a copy of such assessment and 
                documentation to each spouse and shall retain a 
                copy of the assessment for use under this 
                section. If the request is not part of an 
                application for medical assistance under this 
                title, the State may, at its option as a 
                condition of providing the assessment, require 
                payment of a fee not exceeding the reasonable 
                expenses of providing and documenting the 
                assessment. At the time of providing the copy 
                of the assessment, the State shall include a 
                notice indicating that the spouse will have a 
                right to a fair hearing under subsection 
                (e)(2).
            ``(2) Attribution of resources at time of initial 
        eligibility determination.--In determining the 
        resources of an institutionalized spouse at the time of 
        application for medical assistance under this title, 
        regardless of any State laws relating to community 
        property or the division of marital property--
                    ``(A) except as provided in subparagraph 
                (B), all the resources held by either the 
                institutionalized spouse, community spouse, or 
                both, shall be considered to be available to 
                the institutionalized spouse, and
                    ``(B) resources shall be considered to be 
                available to an institutionalized spouse, but 
                only to the extent that the amount of such 
                resources exceeds the amount computed under 
                subsection (f)(2)(A) (as of the time of 
                application for medical assistance).
            ``(3) Assignment of support rights.--The 
        institutionalized spouse shall not be ineligible by 
        reason of resources determined under paragraph (2) to 
        be available for the cost of care where--
                    ``(A) the institutionalized spouse has 
                assigned to the State any rights to support 
                from the community spouse,
                    ``(B) the institutionalized spouse lacks 
                the ability to execute an assignment due to 
                physical or mental impairment but the State has 
                the right to bring a support proceeding against 
                a community spouse without such assignment, or
                    ``(C) the State determines that denial of 
                eligibility would work an undue hardship.
            ``(4) Separate treatment of resources after 
        eligibility for medical assistance established.--During 
        the continuous period in which an institutionalized 
        spouse is in an institution and after the month in 
        which an institutionalized spouse is determined to be 
        eligible for medical assistance under this title, no 
        resources of the community spouse shall be deemed 
        available to the institutionalized spouse.
            ``(5) Resources defined.--In this section, the term 
        `resources' does not include--
                    ``(A) resources excluded under subsection 
                (a) or (d) of section 1613, and
                    ``(B) resources that would be excluded 
                under section 1613(a)(2)(A) but for the 
                limitation on total value described in such 
                section.
    ``(d) Protecting Income for Community Spouse.--
            ``(1) Allowances to be offset from income of 
        institutionalized spouse.--After an institutionalized 
        spouse is determined or redetermined to be eligible for 
        medical assistance, in determining the amount of the 
        spouse's income that is to be applied monthly to 
        payment for the costs of care in the institution, there 
        shall be deducted from the spouse's monthly income the 
        following amounts in the following order:
                    ``(A) A personal needs allowance (described 
                in paragraph (2)(A)), in an amount not less 
                than the amount specified in paragraph (2)(C).
                    ``(B) A community spouse monthly income 
                allowance (as defined in paragraph (3)), but 
                only to the extent income of the 
                institutionalized spouse is made available to 
                (or for the benefit of) the community spouse.
                    ``(C) A family allowance, for each family 
                member, equal to at least \1/3\ of the amount 
                by which the amount described in paragraph 
                (4)(A)(i) exceeds the amount of the monthly 
                income of that family member.
                    ``(D) Amounts for incurred expenses for 
                medical or remedial care for the 
                institutionalized spouse as provided under 
                paragraph (6).
        In subparagraph (C), the term `family member' only 
        includes minor or dependent children, dependent 
        parents, or dependent siblings of the institutionalized 
        or community spouse who are residing with the community 
        spouse.
            ``(2) Personal needs allowance.--
                    ``(A) In general.--The MediGrant plan must 
                provide that, in the case of an 
                institutionalized individual or couple 
                described in subparagraph (B), in determining 
                the amount of the individual's or couple's 
                income to be applied monthly to payment for the 
                cost of care in an institution, there shall be 
                deducted from the monthly income (in addition 
                to other allowances otherwise provided under 
                the plan) a monthly personal needs allowance--
                            ``(i) which is reasonable in amount 
                        for clothing and other personal needs 
                        of the individual (or couple) while in 
                        an institution, and
                            ``(ii) which is not less (and may 
                        be greater) than the minimum monthly 
                        personal needs allowance described in 
                        subparagraph (C).
                    ``(B) Institutionalized individual or 
                couple defined.--In this paragraph, the term 
                `institutionalized individual or couple' means 
                an individual or married couple--
                            ``(i) who is an inpatient (or who 
                        are inpatients) in a medical 
                        institution or nursing facility for 
                        which payments are made under this 
                        title throughout a month, and
                            ``(ii) who is or are determined to 
                        be eligible for medical assistance 
                        under the State MediGrant plan.
                    ``(C) Minimum allowance.--The minimum 
                monthly personal needs allowance described in 
                this subparagraph is $40 for an 
                institutionalized individual and $80 for an 
                institutionalized couple (if both are aged, 
                blind, or disabled, and their incomes are 
                considered available to each other in 
                determining eligibility).
            ``(3) Community spouse monthly income allowance 
        defined.--
                    ``(A) In general.--In this section (except 
                as provided in subparagraph (B)), the community 
                spouse monthly income allowance for a community 
                spouse is an amount by which--
                            ``(i) except as provided in 
                        subsection (e), the minimum monthly 
                        maintenance needs allowance 
                        (established under and in accordance 
                        with paragraph (4)) for the spouse, 
                        exceeds
                            ``(ii) the amount of monthly income 
                        otherwise available to the community 
                        spouse (determined without regard to 
                        such an allowance).
                    ``(B) Court ordered support.--If a court 
                has entered an order against an 
                institutionalized spouse for monthly income for 
                the support of the community spouse, the 
                community spouse monthly income allowance for 
                the spouse shall be not less than the amount of 
                the monthly income so ordered.
            ``(4) Establishment of minimum monthly maintenance 
        needs allowance.--
                    ``(A) In general.--Each State shall 
                establish a minimum monthly maintenance needs 
                allowance for each community spouse which, 
                subject to subparagraph (B), is equal to or 
                exceeds--
                            ``(i) 150 percent of \1/12\ of the 
                        poverty line applicable to a family 
                        unit of 2 members, plus
                            ``(ii) an excess shelter allowance 
                        (as defined in paragraph (4)).
                A revision of the poverty line referred to in 
                clause (i) shall apply to medical assistance 
                furnished during and after the second calendar 
                quarter that begins after the date of 
                publication of the revision.
                    ``(B) Cap on minimum monthly maintenance 
                needs allowance.--The minimum monthly 
                maintenance needs allowance established under 
                subparagraph (A) may not exceed $1,500 (subject 
                to adjustment under subsections (e) and (g)).
            ``(5) Excess shelter allowance defined.--In 
        paragraph (4)(A)(ii), the term `excess shelter 
        allowance' means, for a community spouse, the amount by 
        which the sum of--
                    ``(A) the spouse's expenses for rent or 
                mortgage payment (including principal and 
                interest), taxes and insurance and, in the case 
                of a condominium or cooperative, required 
                maintenance charge, for the community spouse's 
                principal residence, and
                    ``(B) the standard utility allowance (used 
                by the State under section 5(e) of the Food 
                Stamp Act of 1977) or, if the State does not 
                use such an allowance, the spouse's actual 
                utility expenses,
        exceeds 30 percent of the amount described in paragraph 
        (4)(A)(i), except that, in the case of a condominium or 
        cooperative, for which a maintenance charge is included 
        under subparagraph (A), any allowance under 
        subparagraph (B) shall be reduced to the extent the 
        maintenance charge includes utility expenses.
            ``(6) Treatment of incurred expenses.--With respect 
        to the post-eligibility treatment of income under this 
        section, there shall be disregarded reparation payments 
        made by the Federal Republic of Germany and, there 
        shall be taken into account amounts for incurred 
        expenses for medical or remedial care that are not 
        subject to payment by a third party, including--
                    ``(A) medicare and other health insurance 
                premiums, deductibles, or coinsurance, and
                    ``(B) necessary medical or remedial care 
                recognized under State law but not covered 
                under the State MediGrant plan under this 
                title, subject to reasonable limits the State 
                may establish on the amount of these expenses.
    ``(e) Notice and Hearing.--
            ``(1) Notice.--Upon--
                    ``(A) a determination of eligibility for 
                medical assistance of an institutionalized 
                spouse, or
                    ``(B) a request by either the 
                institutionalized spouse, or the community 
                spouse, or a representative acting on behalf of 
                either spouse,
        each State shall notify both spouses (in the case 
        described in subparagraph (A)) or the spouse making the 
        request (in the case described in subparagraph (B)) of 
        the amount of the community spouse monthly income 
        allowance (described in subsection (d)(1)(B)), of the 
        amount of any family allowances (described in 
        subsection (d)(1)(C)), of the method for computing the 
        amount of the community spouse resources allowance 
        permitted under subsection (f), and of the spouse's 
        right to a hearing under the MediGrant plan respecting 
        ownership or availability of income or resources, and 
        the determination of the community spouse monthly 
        income or resource allowance.
            ``(2) Results of hearing.--
                    ``(A) Revision of minimum monthly 
                maintenance needs allowance.--If either such 
                spouse establishes in a hearing under this 
                subsection that the community spouse needs 
                income, above the level otherwise provided by 
                the minimum monthly maintenance needs 
                allowance, due to exceptional circumstances 
                resulting in significant financial duress, 
                there shall be substituted, for the minimum 
                monthly maintenance needs allowance in 
                subsection (d)(2)(A), an amount adequate to 
                provide such additional income as is necessary.
                    ``(B) Revision of community spouse resource 
                allowance.--If either such spouse establishes 
                in such a hearing that the community spouse 
                resource allowance (in relation to the amount 
                of income generated by such an allowance) is 
                inadequate to raise the community spouse's 
                income to the minimum monthly maintenance needs 
                allowance, there shall be substituted, for the 
                community spouse resource allowance under 
                subsection (f)(2), an amount adequate to 
                provide such a minimum monthly maintenance 
                needs allowance.
    ``(f) Permitting Transfer of Resources to Community 
Spouse.--
            ``(1) In general.--An institutionalized spouse may, 
        without regard to any other provision of the MediGrant 
        plan to the contrary, transfer an amount equal to the 
        community spouse resource allowance (as defined in 
        paragraph (2)), but only to the extent the resources of 
        the institutionalized spouse are transferred to, or for 
        the sole benefit of, the community spouse. The transfer 
        under the preceding sentence shall be made as soon as 
        practicable after the date of the initial determination 
        of eligibility, taking into account such time as may be 
        necessary to obtain a court order under paragraph (3).
            ``(2) Community spouse resource allowance 
        defined.--In paragraph (1), the `community spouse 
        resource allowance' for a community spouse is an amount 
        (if any) by which--
                    ``(A) the greatest of--
                            ``(i) $12,000 (subject to 
                        adjustment under subsection (g)), or, 
                        if greater (but not to exceed the 
                        amount specified in clause (ii)(II)) an 
                        amount specified under the State 
                        MediGrant plan,
                            ``(ii) the lesser of (I) the 
                        spousal share computed under subsection 
                        (c)(1), or (II) $60,000 (subject to 
                        adjustment under subsection (g)), or
                            ``(iii) the amount established 
                        under subsection (e)(2);
                exceeds
                    ``(B) the amount of the resources otherwise 
                available to the community spouse (determined 
                without regard to such an allowance).
    ``(g) Indexing Dollar Amounts.--For services furnished 
during a calendar year after 1989, the dollar amounts specified 
in subsections (d)(3)(C), (f)(2)(A)(i), and (f)(2)(A)(ii)(II) 
shall be increased by the same percentage as the percentage 
increase in the consumer price index for all urban consumers 
(all items; U.S. city average) between September 1988 and the 
September before the calendar year involved.
    ``(h) Definitions.--In this section:
            ``(1) Institutionalized spouse.--The term 
        `institutionalized spouse' means an individual--
                    ``(A)(i) who is in a medical institution or 
                nursing facility, or
                    ``(ii) at the option of the State (I) who 
                would be eligible under the MediGrant plan 
                under this title if such individual was in a 
                medical institution, (II) with respect to whom 
                there has been a determination that but for the 
                provision of home or community-based services 
                such individual would require the level of care 
                provided in a hospital, nursing facility or 
                intermediate care facility for the mentally 
                retarded the cost of which could be reimbursed 
                under the plan, and (III) who will receive home 
                or community-based services pursuant the plan; 
                and
                    ``(B) is married to a spouse who is not in 
                a medical institution or nursing facility;
        but does not include any such individual who is not 
        likely to meet the requirements of subparagraph (A) for 
        at least 30 consecutive days.
            ``(2) Community spouse.--The term `community 
        spouse' means the spouse of an institutionalized 
        spouse.

``SEC. 2116. STATE FLEXIBILITY.

    ``(a) State Flexibility in Benefits, Provider Payments, 
Geographical Coverage Area, and Selection of Providers.--
Nothing in this title (other than subsections (c) and (d) of 
section 2111) shall be construed as requiring a State--
            ``(1) to provide medical assistance for any 
        particular items or services,
            ``(2) to provide for any payments with respect to 
        any specific health care providers or any level of 
        payments for any services,
            ``(3) to provide for the same medical assistance in 
        all geographical areas or political subdivisions of the 
        State, so long as medical assistance is made available 
        in all such areas or subdivisions,
            ``(4) to provide that the medical assistance made 
        available to any individual eligible for medical 
        assistance must not be less in amount, duration, or 
        scope than the medical assistance made available to any 
        other such individual, or
            ``(5) to provide that any individual eligible for 
        medical assistance with respect to an item or service 
        may choose to obtain such assistance from any 
        institution, agency, or person qualified to provide the 
        item or service.
    ``(b) State Flexibility With Respect to Managed Care.--
Nothing in this title shall be construed--
            ``(1) to limit a State's ability to contract with, 
        on a capitated basis or otherwise, health care plans or 
        individual health care providers for the provision or 
        arrangement of medical assistance,
            ``(2) to limit a State's ability to contract with 
        health care plans or other entities for case management 
        services or for coordination of medical assistance, or
            ``(3) to restrict a State from establishing 
        capitation rates on the basis of competition among 
        health care plans or negotiations between the State and 
        one or more health care plans.

                      ``Part C--Payments to States

``SEC. 2121. ALLOTMENT OF FUNDS AMONG STATES.

    ``(a) Allotments.--
            ``(1) Computation.--The Secretary shall provide for 
        the computation of State obligation and outlay 
        allotments in accordance with this section for each 
        fiscal year beginning with fiscal year 1996.
            ``(2) Limitation on obligations.--
                    ``(A) In general.--Subject to subparagraph 
                (B), the Secretary shall not enter into 
                obligations with any State under this title for 
                a fiscal year in excess of the obligation 
                allotment for that State for the fiscal year 
                under paragraph (4). The sum of such obligation 
                allotments for all States in any fiscal year 
                (excluding amounts carried over under 
                subparagraph (B) and excluding changes in 
                allotments effected under paragraph (4)(D)) 
                shall not exceed the aggregate limit on new 
                obligation authority specified in paragraph (3) 
                for that fiscal year.
                    ``(B) Adjustments.--
                            ``(i) Carryover of allotment 
                        permitted.--If the amount of 
                        obligations entered into under this 
                        part with a State for quarters in a 
                        fiscal year is less than the amount of 
                        the obligation allotment under this 
                        section to the State for the fiscal 
                        year, the amount of the difference 
                        shall be added to the amount of the 
                        State obligation allotment otherwise 
                        provided under this section for the 
                        succeeding fiscal year. This clause 
                        shall be applied separately with 
                        respect to the portion of the 
                        obligation allotment that is 
                        attributable to the supplemental outlay 
                        allotment under subsection (f).
                            ``(ii) Reduction for post-enactment 
                        new obligations under title xix in 
                        fiscal year 1996.--The amount of the 
                        obligation allotment otherwise provided 
                        under this section for fiscal year 1996 
                        for a State shall be reduced by the 
                        amount of the obligations entered into 
                        with respect to the State under section 
                        1903(a) after the date of the enactment 
                        of this title.
                    ``(C) No effect on prior year 
                obligations.--Subparagraph (A) shall not apply 
                to or affect obligations for a fiscal year 
                prior to fiscal year 1996.
                    ``(D) Obligation.--For purposes of this 
                section, the Secretary's establishment of an 
                estimate under section 2123(b) of the amount a 
                State is entitled to receive for a quarter 
                (taking into account any adjustments described 
                in such subsection) shall be treated as the 
                obligation of such amount for the State as of 
                the first day of the quarter.
            ``(3) Aggregate limit on new obligation 
        authority.--
                    ``(A) In general.--For purposes of this 
                subsection, subject to subparagraph (C), the 
                `aggregate limit on new obligation authority', 
                for a fiscal year, is the pool amount under 
                subsection (b) for the fiscal year, divided by 
                the payout adjustment factor (described in 
                subparagraph (B)) for the fiscal year.
                    ``(B) Payout adjustment factor.--For 
                purposes of this subsection, the `payout 
                adjustment factor'--
                            ``(i) for fiscal year 1996 is 
                        0.950,
                            ``(ii) for fiscal year 1997 is 
                        0.986, and
                            ``(iii) for a subsequent fiscal 
                        year is 0.998.
                    ``(C) Transitional adjustment for pre-
                enactment-obligation outlays.--In order to 
                account for pre-enactment-obligation outlays 
                described in paragraph (4)(C)(iv), in 
                determining the aggregate limit on new 
                obligation authority under subparagraph (A) for 
                fiscal year 1996, the pool amount for such 
                fiscal year is equal to--
                            ``(i) the pool amount for such 
                        year, reduced by
                            ``(ii) $24,624,000,000.
            ``(4) Obligation allotments.--
                    ``(A) General rule for 50 states and the 
                district of columbia.--Except as provided in 
                this paragraph, the `obligation allotment' for 
                any of the 50 States or the District of 
                Columbia for a fiscal year (beginning with 
                fiscal year 1997) is an amount that bears the 
                same ratio to the outlay allotment under 
                subsection (c)(2) for such State or District 
                (not taking into account any adjustment due to 
                an election under paragraph (4)) for the fiscal 
                year as the ratio of--
                            ``(i) the aggregate limit on new 
                        obligation authority (less the total of 
                        the obligation allotments under 
                        subparagraph (B)) for the fiscal year, 
                        to
                            ``(ii) the pool amount (less the 
                        sum of the outlay allotments for the 
                        territories) for such fiscal year.
                    ``(B) Territories.--The obligation 
                allotment for each of the Commonwealths and 
                territories for a fiscal year is the outlay 
                allotment for such Commonwealth or territory 
                (as determined under subsection (c)(5)) for the 
                fiscal year divided by the payout adjustment 
                factor for the fiscal year (as defined in 
                paragraph (3)(B)).
                    ``(C) Transitional rule for fiscal year 
                1996.--
                            ``(i) In general.--The obligation 
                        amount for fiscal year 1996 for any 
                        State (including the District of 
                        Columbia, a Commonwealth, or territory) 
                        is determined according to the formula: 
                        A=(B-C)/D, where--
                                    ``(I) `A' is the obligation 
                                amount for such State,
                                    ``(II) `B' is the outlay 
                                allotment of such State for 
                                fiscal year 1996, as determined 
                                under subsection (c),
                                    ``(III) `C' is the amount 
                                of the pre-enactment-obligation 
                                outlays (as established for 
                                such State under clause (ii)), 
                                and
                                    ``(IV) `D' is the payout 
                                adjustment factor for such 
                                fiscal year (as defined in 
                                paragraph (3)(B)).
                            ``(ii) Pre-enactment-obligation 
                        outlay amounts.--Within 30 days after 
                        the date of the enactment of this 
                        title, the Secretary shall estimate 
                        (based on the best data available) and 
                        publish in the Federal Register the 
                        amount of the pre-enactment-obligation 
                        outlays (as defined in clause (iv)) for 
                        each State (including the District of 
                        Columbia, Commonwealths, and 
                        territories). The total of such amounts 
                        shall equal the dollar amount specified 
                        in paragraph (3)(C)(ii).
                            ``(iii) Agreement.--The submission 
                        of a MediGrant plan by a State under 
                        this title is deemed to constitute the 
                        State's acceptance of the obligation 
                        allotment limitations under this 
                        subsection, including the formula for 
                        computing the amount of such obligation 
                        allotment.
                            ``(iv) Pre-enactment-obligation 
                        outlays defined.--In this subsection, 
                        the term `pre-enactment-obligation 
                        outlays' means, for a State, the 
                        outlays of the Federal Government that 
                        result from obligations that have been 
                        incurred under title XIX with respect 
                        to the State before the date of the 
                        enactment of this title, but for which 
                        payments to States have not been made 
                        as of such date of enactment.
                    ``(D) Adjustment to reflect adoption of 
                alternative growth formula.--Any State that has 
                elected an alternative growth formula under 
                subsection (c)(4) which increases or decreases 
                the dollar amount of an outlay allotment for a 
                fiscal year is deemed to have increased or 
                decreased, respectively, its obligation amount 
                for such fiscal year by the amount of such 
                increase or decrease.
                    ``(E) Transitional correction for fiscal 
                year 1997.--
                            ``(i) In general.--The obligation 
                        amount for fiscal year 1997 for any 
                        State described in clause (ii) shall be 
                        increased by 90 percent of the amount 
                        by which 90 percent of the amount 
                        described in clause (ii)(I) exceeds the 
                        amount described in clause (ii)(II), 
                        divided by the payout adjustment factor 
                        specified in paragraph (3)(B) for 
                        fiscal year 1996. The increase under 
                        this clause shall be paid to a State in 
                        the first quarter of fiscal year 1997.
                            ``(ii) States described.--A State 
                        described in this clause is a State for 
                        which--
                                    ``(I) the amount of the 
                                pre-enactment-obligation 
                                outlays (as established for 
                                such State under subparagraph 
                                (C)(ii)), exceeded
                                    ``(II) the outlays of the 
                                Federal Government during 
                                fiscal year 1996 that are 
                                attributable to obligations 
                                that were incurred under title 
                                XIX with respect to the State 
                                before the date of the 
                                enactment of this title, but 
                                for which payments to States 
                                had not been made as of such 
                                date of enactment,
                        by at least 10 percent of the amount 
                        described in subclause (I).
    ``(b) Pool of Available Funds.--
            ``(1) In general.--For purposes of this section, 
        the `pool amount' under this subsection for--
                    ``(A) fiscal year 1996 is $96,386,037,894,
                    ``(B) fiscal year 1997 is $103,233,603,164,
                    ``(C) fiscal year 1998 is $107,907,625,827,
                    ``(D) fiscal year 1999 is $112,644,040,408,
                    ``(E) fiscal year 2000 is $117,359,685,046,
                    ``(F) fiscal year 2001 is $122,284,072,525,
                    ``(G) fiscal year 2002 is $127,418,239,580, 
                and
                    ``(H) each subsequent fiscal year is the 
                pool amount under this paragraph for the 
                previous fiscal year increased by the lesser of 
                4.2 percent or the annual percentage increase 
                in the gross domestic product for the 12-month 
                period ending in June before the beginning of 
                that subsequent fiscal year.
            ``(2) National medigrant growth percentage.--For 
        purposes of this section for a fiscal year (beginning 
        with fiscal year 1997), the `national MediGrant growth 
        percentage' is the percentage by which--
                    ``(A) the pool amount under paragraph (1) 
                for the fiscal year, exceeds
                    ``(B) such pool amount for the previous 
                fiscal year.
    ``(c) State Outlay Allotments.--
            ``(1) Fiscal year 1996.--
                    ``(A) In general.--For each of the 50 
                States and the District of Columbia, the amount 
                of the State outlay allotment under this 
                subsection for fiscal year 1996 is, subject to 
                paragraph (4), determined in accordance with 
                the following table:

``State or District:Outlay allotment (in dollars):
    Alabama.............................................  1,517,652,207 
    Alaska..............................................    204,933,213 
    Arizona.............................................  1,370,781,297 
    Arkansas............................................  1,011,457,933 
    California..........................................  8,946,838,461 
    Colorado............................................    757,492,679 
    Connecticut.........................................  1,463,011,635 
    Delaware............................................    212,327,763 
    District of Columbia................................    501,412,091 
    Florida.............................................  3,715,624,180 
    Georgia.............................................  2,426,320,602 
    Hawaii..............................................    323,124,375 
    Idaho...............................................    278,329,686 
    Illinois............................................  3,467,274,342 
    Indiana.............................................  1,952,467,267 
    Iowa................................................    835,235,895 
    Kansas..............................................    713,700,869 
    Kentucky............................................  1,577,828,832 
    Louisiana...........................................  2,622,000,000 
    Maine...............................................    694,220,790 
    Maryland............................................  1,369,699,847 
    Massachusetts.......................................  2,870,346,862 
    Michigan............................................  3,465,182,886 
    Minnesota...........................................  1,793,776,356 
    Mississippi.........................................  1,261,781,330 
    Missouri............................................  1,849,248,945 
    Montana.............................................    312,212,472 
    Nebraska............................................    463,900,417 
    Nevada..............................................    257,896,453 
    New Hampshire.......................................    360,000,000 
    New Jersey..........................................  2,854,621,241 
    New Mexico..........................................    634,756,945 
    New York............................................ 12,901,793,038 
    North Carolina......................................  2,587,883,809 
    North Dakota........................................    241,168,563 
    Ohio................................................  4,034,049,690 
    Oklahoma............................................    911,198,775 
    Oregon..............................................  1,088,670,440 
    Pennsylvania........................................  4,454,423,400 
    Rhode Island........................................    545,686,262 
    South Carolina......................................  1,621,021,815 
    South Dakota........................................    262,804,959 
    Tennessee...........................................  2,519,934,251 
    Texas...............................................  6,351,909,343 
    Utah................................................    484,274,254 
    Vermont.............................................    248,158,729 
    Virginia............................................  1,144,962,509 
    Washington..........................................  1,763,460,996 
    West Virginia.......................................  1,156,813,157 
    Wisconsin...........................................  1,709,500,642 
    Wyoming.............................................   132,925,390. 
            ``(2) Computation of state outlay allotments.--
                    ``(A) In general.--Subject to the 
                succeeding provisions of this subsection, the 
                amount of the State outlay allotment under this 
                subsection for one of the 50 States and the 
                District of Columbia for a fiscal year 
                (beginning with fiscal year 1997) is equal to 
                the product of--
                            ``(i) the needs-based amount 
                        determined under subparagraph (B) for 
                        such State or District for the fiscal 
                        year, and
                            ``(ii) the scalar factor described 
                        in subparagraph (C) for the fiscal 
                        year.
                    ``(B) Needs-based amount.--The needs-based 
                amount under this subparagraph for a State or 
                the District of Columbia for a fiscal year is 
                equal to the product of--
                            ``(i) the State's or District's 
                        aggregate expenditure need for the 
                        fiscal year (as determined under 
                        subsection (d)), and
                            ``(ii) the State's or District's 
                        old Federal medical assistance 
                        percentage (as defined in section 
                        2122(d)) for the fiscal year (or, in 
                        the case of fiscal year 1997, the 
                        Federal medical assistance percentage 
                        determined under section 1905(b) for 
                        fiscal year 1996).
                    ``(C) Scalar factor.--The scalar factor 
                under this subparagraph for a fiscal year is 
                such proportion so that, when it is applied 
                under subparagraph (A)(ii) for the fiscal year 
                (taking into account the floors and ceilings 
                under paragraph (3)), the total of the outlay 
                allotments under this subsection for all the 50 
                States and the District of Columbia for the 
                fiscal year (not taking into account any 
                increase in an outlay allotment for a fiscal 
                year attributable to the election of an 
                alternative growth formula under paragraph (4)) 
                is equal to the amount by which (i) the pool 
                amount for the fiscal year (as determined under 
                subsection (b)), exceeds (ii) the sum of the 
                outlay allotments provided under paragraph (5) 
                for the Commonwealths and territories for the 
                fiscal year.
            ``(3) Floors and ceilings.--
                    ``(A) Floors.--Subject to the ceiling 
                established under subparagraph (B), in no case 
                shall the amount of the State outlay allotment 
                under paragraph (2) for a fiscal year be less 
                than the greatest of the following:
                            ``(i) In general.--Beginning with 
                        fiscal year 1998, 0.24 percent of the 
                        pool amount for the fiscal year.
                            ``(ii) Floor based on previous 
                        year's outlay allotment.--Subject to 
                        clause (iii)--
                                    ``(I) Fiscal year 1997.--
                                For fiscal year 1997, 103.5 
                                percent of the amount of the 
                                State outlay allotment under 
                                this subsection for fiscal year 
                                1996.
                                    ``(II) Fiscal year 1998.--
                                For fiscal year 1998, 103 
                                percent of the amount of the 
                                State outlay allotment under 
                                this subsection for fiscal year 
                                1997.
                                    ``(III) Subsequent fiscal 
                                years.--For a fiscal year after 
                                1998, 102 percent of the amount 
                                of the State outlay allotment 
                                under this subsection for the 
                                previous fiscal year.
                            ``(iii) Floor based on outlay 
                        allotment growth rate in first year.--
                        Beginning with fiscal year 1998, in the 
                        case of a State for which the outlay 
                        allotment under this subsection for 
                        fiscal year 1997 exceeded its outlay 
                        allotment under this subsection for the 
                        previous fiscal year by more than the 
                        national MediGrant growth percentage 
                        for fiscal year 1997, 104 percent of 
                        the amount of the State outlay 
                        allotment under this subsection for the 
                        previous fiscal year (or, if less, 
                        beginning with fiscal year 2003, 95 
                        percent of the national MediGrant 
                        growth percentage for the year).
                    ``(B) Ceilings.--
                            ``(i) In general.--Subject to 
                        clause (ii), in no case shall the 
                        amount of the State outlay allotment 
                        under paragraph (2) for a fiscal year 
                        be greater than the product of--
                                    ``(I) the State outlay 
                                allotment under this subsection 
                                for the State for the preceding 
                                fiscal year, and
                                    ``(II) the applicable 
                                percent (specified in clause 
                                (ii) or (iii)) for the fiscal 
                                year involved.
                            ``(ii) General rule for applicable 
                        percent.--For purposes of clause (i), 
                        subject to clause (iii), the 
                        `applicable percent'--
                                    ``(I) for fiscal year 1997 
                                is 109 percent, and
                                    ``(II) for a subsequent 
                                fiscal year is 105.33 percent.
                            ``(iii) Special rule.--For a fiscal 
                        year after fiscal year 1997, in the 
                        case of a State (among the 50 States 
                        and the District of Columbia) that is 
                        one of the 10 States with the lowest 
                        Federal MediGrant spending per 
                        resident-in-poverty rates (as 
                        determined under clause (iv)) for the 
                        fiscal year, the `applicable percent' 
                        is 107 percent.
                            ``(iv) Determination of federal 
                        medigrant spending per resident-in-
                        poverty rate.--For purposes of clause 
                        (iii), the `Federal MediGrant spending 
                        per resident-in-poverty rate' for a 
                        State for a fiscal year is equal to--
                                    ``(I) the State's outlay 
                                allotment under this subsection 
                                for the previous fiscal year 
                                (determined without regard to 
                                paragraph (4)), divided by
                                    ``(II) the average annual 
                                number of residents of the 
                                State in poverty (as defined in 
                                subsection (d)(2)) with respect 
                                to the fiscal year.
                    ``(C) Special rule.--
                            ``(i) In general.--Notwithstanding 
                        the preceding subparagraphs of this 
                        paragraph, the State outlay allotment 
                        for--
                                    ``(I) New Hampshire for 
                                each of the fiscal years 1997 
                                through 2000, is $360,000,000,
                                    ``(II) Louisiana, subject 
                                to subclause (III), for each of 
                                the fiscal years 1997 through 
                                2000, is $2,622,000,000, and
                                    ``(III) Louisiana and 
                                Nebraska for fiscal year 1997, 
                                as otherwise determined, shall 
                                be increased by $37,048,207 and 
                                $106,132,408, respectively.
                                    ``(IV) Nevada for each of 
                                fiscal years 1996, 1997, and 
                                1998, as otherwise determined, 
                                shall be increased by 
                                $90,000,000.
                            ``(ii) Exception.--A State 
                        described in subclause (I) or (II) of 
                        clause (i) may apply to the Secretary 
                        for use of the State outlay allotment 
                        otherwise determined under this 
                        subsection for any fiscal year, if such 
                        State notifies the Secretary not later 
                        than March 1 preceding such fiscal year 
                        that such State will be able to expend 
                        sufficient State funds in such fiscal 
                        year to qualify for such allotment.
                            ``(iii) Treatment of increase as 
                        supplemental allotment.--Any increase 
                        in an outlay allotment under clause 
                        (i)(III) or (i)(IV) shall not be taken 
                        into account for purposes of 
                        determining the scalar factor under 
                        paragraph (2) for fiscal year 1997, any 
                        State outlay allotment for a fiscal 
                        year after fiscal year 1997, the pool 
                        amount for a fiscal year after fiscal 
                        year 1997, or determination of the 
                        national MediGrant growth percentage 
                        for any fiscal year.
            ``(4) Election of alternative growth formula.--
                    ``(A) Election.--In order to reduce 
                variations in increases in outlay allotments 
                over time, any of the 50 States or the District 
                of Columbia may elect (by notice provided to 
                the Secretary by not later than April 1, 1996) 
                to adopt an alternative growth rate formula 
                under this paragraph for the determination of 
                the State's outlay allotment in fiscal year 
                1996 and for the increase in the amount of such 
                allotment in subsequent fiscal years.
                    ``(B) Formula.--The alternative growth 
                formula under this paragraph may be any formula 
                under which a portion of the State outlay 
                allotment for fiscal year 1996 under paragraph 
                (1) is deferred and applied to increase the 
                amount of its outlay allotment for one or more 
                subsequent fiscal years, so long as the total 
                amount of such increases for all such 
                subsequent fiscal years does not exceed the 
                amount of the outlay allotment deferred from 
                fiscal year 1996.
            ``(5) Commonwealths and territories.--
                    ``(A) In general.--The outlay allotment for 
                each of the Commonwealths and territories for a 
                fiscal year is the maximum amount that could 
                have been certified under section 1108(c) (as 
                in effect on the day before the date of the 
                enactment of this title) with respect to the 
                Commonwealth or territory for the fiscal year 
                with respect to title XIX, if the national 
                MediGrant growth percentage (as determined 
                under subsection (b)(2)) for the fiscal year 
                had been substituted (beginning with fiscal 
                year 1997) for the percentage increase referred 
                to in section 1108(c)(1)(B) (as so in effect).
                    ``(B) Disregard of rounding requirements.--
                For purposes of subparagraph (A), the rounding 
                requirements under section 1108(c) shall not 
                apply.
                    ``(C) Limitation on total amount for fiscal 
                year 1996.--Notwithstanding the provisions of 
                subparagraph (A), the total amount of the 
                outlay allotments for the Commonwealths and 
                territories for fiscal year 1996 may not exceed 
                $139,950,000.
    ``(d) State Aggregate Expenditure Need Determined.--
            ``(1) In general.--For purposes of subsection (c), 
        the `State aggregate expenditure need' for a State or 
        the District of Columbia for a fiscal year is equal to 
        the product of the following 4 factors:
                    ``(A) Residents in poverty.--The average 
                annual number of residents in poverty of such 
                State or District with respect to the fiscal 
                year (as determined under paragraph (2)).
                    ``(B) Case mix index.--The case mix index 
                for such State or District (as determined under 
                paragraph (3)) for the most recent fiscal year 
                for which data are available, but in no case 
                less than 0.9 or greater than 1.15.
                    ``(C) Input cost index.--The input cost 
                index for the State (as determined under 
                paragraph (4)) for the most recent fiscal year 
                for which data are available.
                    ``(D) National average spending per 
                resident in poverty.--The national average 
                spending per resident in poverty (as determined 
                under paragraph (5)).
            ``(2) Residents in poverty.--In this section--
                    ``(A) In general.--The term `average annual 
                number of residents in poverty' means, with 
                respect to a State or the District of Columbia 
                and a fiscal year, the average annual number of 
                residents in poverty (as defined in 
                subparagraph (B)) in such State or District 
                (based on data made generally available by the 
                Bureau of the Census from the Current 
                Population Survey) for the most recent 3-
                calendar-year period (ending before the fiscal 
                year) for which such data are available.
                    ``(B) Resident in poverty defined.--The 
                term `resident in poverty' means an individual 
                whose family income does not exceed the poverty 
                threshold (as such terms are defined by the 
                Office of Management and Budget and are 
                generally interpreted and applied by the Bureau 
                of the Census for the year involved).
            ``(3) Case mix index.--
                    ``(A) In general.--In this subsection, the 
                `case mix index' for a State or the District of 
                Columbia for a fiscal year is equal to--
                            ``(i) the sum of--
                                    ``(I) the projected per 
                                recipient expenditures with 
                                respect to elderly individuals 
                                in such State or District for 
                                the fiscal year (determined 
                                under subparagraph (B)),
                                    ``(II) the projected per 
                                recipient expenditures with 
                                respect to the blind and 
                                disabled individuals in such 
                                State or District for the 
                                fiscal year (determined under 
                                subparagraph (C)), and
                                    ``(III) the projected per 
                                recipient expenditures with 
                                respect to other individuals in 
                                such State or District 
                                (determined under subparagraph 
                                (D));
                divided by--
                            ``(ii) the national average 
                        spending per recipient determined under 
                        subparagraph (E) for the fiscal year 
                        involved.
                    ``(B) Projected per recipient expenditures 
                for the elderly.--For purposes of subparagraph 
                (A)(i)(I), the `projected per recipient 
                expenditures with respect to elderly 
                individuals' in a State or the District of 
                Columbia for a fiscal year is equal to the 
                product of--
                            ``(i) the national average per 
                        recipient expenditures under this title 
                        in the 50 States and the District of 
                        Columbia for the most recent fiscal 
                        year for which data are available for 
                        elderly individuals, and
                            ``(ii) the proportion, of all 
                        individuals who received medical 
                        assistance under this title in such 
                        State or District in the most recent 
                        fiscal year referred to in clause (i), 
                        that were individuals described in such 
                        clause.
                    ``(C) Projected per recipient expenditures 
                for the blind and disabled.--For purposes of 
                subparagraph (A)(i)(II), the `projected per 
                recipient expenditures with respect to blind 
                and disabled individuals' in a State or the 
                District of Columbia for a fiscal year is equal 
                to the product of--
                            ``(i) the national average per 
                        recipient expenditures under this title 
                        in the 50 States and the District of 
                        Columbia for the most recent fiscal 
                        year for which data are available for 
                        individuals who are eligible for 
                        medical assistance because such 
                        individuals are blind or disabled and 
                        are not elderly individuals, and
                            ``(ii) the proportion, of all 
                        individuals who received medical 
                        assistance under this title in the 
                        State in the most recent fiscal year 
                        referred to in clause (i), that were 
                        individuals described in such clause.
                    ``(D) Projected per recipient expenditures 
                for other individuals.--For purposes of 
                subparagraph (A)(i)(III), the `projected per 
                recipient expenditures with respect to other 
                individuals' in a State or the District of 
                Columbia for a fiscal year is equal to the 
                product of--
                            ``(i) the national average per 
                        recipient expenditures under this title 
                        in the 50 States and the District of 
                        Columbia for the most recent fiscal 
                        year for which data are available for 
                        individuals who are not described in 
                        subparagraph (B)(i) or (C)(i), and
                            ``(ii) the proportion, of all 
                        individuals who received medical 
                        assistance under this title in such 
                        State or District in the most recent 
                        fiscal year referred to in clause (i), 
                        that were individuals described in such 
                        clause.
                    ``(E) National average spending per 
                recipient.--For purposes of this paragraph, the 
                `national average expenditures per recipient' 
                for a fiscal year is equal to the sum of--
                            ``(i) the product of (I) the 
                        national average described in 
                        subparagraph (B)(i), and (II) the 
                        proportion, of all individuals who 
                        received medical assistance under this 
                        title in any of the 50 States or the 
                        District of Columbia in the fiscal year 
                        referred to in such subparagraph, who 
                        are described in such subparagraph,
                            ``(ii) the product of (I) the 
                        national average described in 
                        subparagraph (C)(i), and (II) the 
                        proportion, of all individuals who 
                        received medical assistance under this 
                        title in any of the 50 States or the 
                        District of Columbia in the fiscal year 
                        referred to in such subparagraph, who 
                        are described in such subparagraph, and
                            ``(iii) the product of (I) the 
                        national average described in 
                        subparagraph (D)(i), and (II) the 
                        proportion, of all individuals who 
                        received medical assistance under this 
                        title in any of the 50 States or the 
                        District of Columbia in the fiscal year 
                        referred to in such subparagraph, who 
                        are described in such subparagraph.
                    ``(F) Determination of national averages 
                and proportions.--
                            ``(i) In general.--The national 
                        averages per recipient and the 
                        proportions referred to in clauses (i) 
                        and (ii), respectively, of 
                        subparagraphs (B), (C), and (D) and 
                        subparagraph (E) shall be determined by 
                        the Secretary using the most recent 
                        data available.
                            ``(ii) Use of medicaid data.--If 
                        for a fiscal year there is inadequate 
                        data to compute such averages and 
                        proportions based on expenditures and 
                        numbers of individuals receiving 
                        medical assistance under this title, 
                        the Secretary may compute such averages 
                        based on expenditures and numbers of 
                        such individuals under title XIX for 
                        the most recent fiscal year for which 
                        data are available and, for this 
                        purpose--
                                    ``(I) any reference in 
                                subparagraph (B)(i) to `elderly 
                                individuals' is deemed a 
                                reference to `individuals whose 
                                eligibility for medical 
                                assistance is based on being 65 
                                years of age or older',
                                    ``(II) the reference in 
                                subparagraph (C)(i) to `and are 
                                not elderly individuals' shall 
                                be considered to be deleted, 
                                and
                                    ``(III) individuals whose 
                                basis for eligibility for 
                                medical assistance was reported 
                                as unknown shall not be counted 
                                as individuals under 
                                subparagraph (D)(i).
                            ``(iii) Expenditure defined.--For 
                        purposes of this paragraph, the term 
                        `expenditure' means medical vendor 
                        payments by basis of eligibility as 
                        reported by HCFA Form 2082.
            ``(4) Input cost index.--
                    ``(A) In general.--In this section, the 
                `input cost index' for a State or the District 
                of Columbia for a fiscal year is the sum of--
                            ``(i) 0.15, and
                            ``(ii) 0.85 multiplied by the ratio 
                        of (I) the annual average wages for 
                        hospital employees in such State or 
                        District for the fiscal year (as 
                        determined under subparagraph (B)), to 
                        (II) the annual average wages for 
                        hospital employees in the 50 States and 
                        the District of Columbia for such year 
                        (as determined under such 
                        subparagraph).
                    ``(B) Determination of annual average wages 
                of hospital employees.--The Secretary shall 
                provide for the determination of annual average 
                wages for hospital employees in a State or the 
                District of Columbia and, collectively, in the 
                50 States and the District of Columbia for a 
                fiscal year based on the area wage data 
                applicable to hospitals under section 
                1886(d)(2)(E) (or, if such data no longer 
                exists, comparable data of hospital wages) for 
                discharges occurring during the fiscal year 
                involved.
            ``(5) National average spending per resident in 
        poverty.--For purposes of this subsection, the 
        `national average spending per resident in poverty'--
                    ``(A) for fiscal year 1997 is equal to--
                            ``(i) the sum (for each of the 50 
                        States and the District of Columbia) of 
                        the total of the Federal and State 
                        expenditures under title XIX for 
                        calendar quarters in fiscal year 1994, 
                        increased by the percentage by which 
                        (I) the pool amount for fiscal year 
                        1997, exceeds (II) $83,213,431,458 
                        (which represents Federal medicaid 
                        expenditures for such States and 
                        District for fiscal year 1994); divided 
                        by
                            ``(ii) the sum of the number of 
                        residents in poverty (as defined in 
                        paragraph (2)(A)) for all of the 50 
                        States and the District of Columbia for 
                        fiscal year 1994; and
                    ``(B) for a succeeding fiscal year is equal 
                to the national average spending per resident 
                in poverty under this paragraph for the 
                preceding fiscal year increased by the national 
                MediGrant growth percentage (as defined in 
                subsection (b)(2)) for the fiscal year 
                involved.
    ``(e) Publication of Obligation and Outlay Allotments.--
            ``(1) Notice of preliminary allotments.--Not later 
        than April 1 before the beginning of each fiscal year 
        (beginning with fiscal year 1997), the Secretary shall 
        initially compute, after consultation with the 
        Comptroller General, and publish in the Federal 
        Register notice of the proposed obligation and outlay 
        allotments for each State under this section (not 
        taking into account subsection (a)(2)(B)) for the 
        fiscal year. The Secretary shall include in the notice 
        a description of the methodology and data used in 
        deriving such allotments for the year.
            ``(2) Review by gao.--The Comptroller General shall 
        submit to Congress by not later than May 15 of each 
        such fiscal year, a report analyzing such allotments 
        and the extent to which they comply with the precise 
        requirements of this section.
            ``(3) Notice of final allotments.--Not later than 
        July 1 before the beginning of each such fiscal year, 
        the Secretary, taking into consideration the analysis 
        contained in the report of the Comptroller General 
        under paragraph (2), shall compute and publish in the 
        Federal Register notice of the final allotments under 
        this section (both taking into account and not taking 
        into account subsection (a)(2)(B)) for the fiscal year. 
        The Secretary shall include in the notice a description 
        of any changes in such allotments from the initial 
        allotments published under paragraph (1) for the fiscal 
        year and the reasons for such changes. Once published 
        under this paragraph, the Secretary is not authorized 
        to change such allotments.
            ``(4) GAO report on final allotments.--The 
        Comptroller General shall submit to Congress by not 
        later than August 1 of each such fiscal year, a report 
        analyzing the final allotments under paragraph (3) and 
        the extent to which they comply with the precise 
        requirements of this section.
    ``(f) Supplemental Allotment for Emergency Health Care 
Services to Certain Aliens.--
            ``(1) In general.--Notwithstanding the previous 
        provisions of this section, the amount of the State 
        outlay allotment for each of fiscal years 1996 through 
        2000 for each supplemental allotment eligible State 
        shall be increased by the amount of the supplemental 
        outlay allotment provided under paragraph (2) for the 
        State for that year. The amount of such increased 
        allotment may only be used for the purpose of providing 
        medical assistance for care and services for aliens 
        described in paragraph (1) of section 2123(e) and for 
        which the exception described in paragraph (2) of such 
        section applies. Section 2122(f)(3) shall apply to such 
        assistance in the same manner as it applies to medical 
        assistance described in such section.
            ``(2) Supplemental outlay allotment.--
                    ``(A) In general.--For purposes of 
                paragraph (1), the amount of the supplemental 
                outlay allotment for a supplemental allotment 
                eligible State for a fiscal year is equal to 
                the supplemental allotment ratio (as defined in 
                subparagraph (C)) multiplied by the 
                supplemental pool amount (specified in 
                subparagraph (D)) for the fiscal year.
                    ``(B) Supplemental allotment eligible 
                state.--In this subsection, the term 
                `supplemental allotment eligible State' means 
                one of the 15 States with the highest number of 
                undocumented alien residents of all the States.
                    ``(C) Supplemental allotment ratio.--In 
                this paragraph, the `supplemental allotment 
                ratio' for a State is the ratio of--
                            ``(i) the number of undocumented 
                        aliens residing in the State, to
                            ``(ii) the sum of such numbers for 
                        all supplemental allotment eligible 
                        States.
                    ``(D) Supplemental pool amount.--In this 
                paragraph, the `supplemental pool amount'--
                            ``(i) for fiscal year 1996 is 
                        $627,325,551,
                            ``(ii) for fiscal year 1997 is 
                        $673,388,855,
                            ``(iii) for fiscal year 1998 is 
                        $702,313,450,
                            ``(iv) for fiscal year 1999 is 
                        $733,140,258, and
                            ``(v) for fiscal year 2000 is 
                        $763,831,886.
                    ``(E) Determination of number.--
                            ``(i) In general.--The number of 
                        undocumented aliens residing in a State 
                        under this paragraph--
                                    ``(I) for fiscal year 1996 
                                shall be determined based on 
                                estimates of the resident 
                                illegal alien population 
                                residing in each State prepared 
                                by the Statistics Division of 
                                the Immigration and 
                                Naturalization Service as of 
                                October 1992, and
                                    ``(II) for a subsequent 
                                fiscal year shall be determined 
                                based on the most recent 
                                updated estimate made under 
                                clause (ii).
                            ``(ii) Updating estimate.--For each 
                        fiscal year beginning with fiscal year 
                        1997, the Secretary, in consultation 
                        with the Commission of the Immigration 
                        and Naturalization Service, States, and 
                        outside experts, shall estimate the 
                        number of undocumented aliens residing 
                        in each of the 50 States and the 
                        District of Columbia.
            ``(3) Treatment for obligation purposes.--For 
        purposes of computing obligation allotments under 
        subsection (a)--
                    ``(A) the amount of the supplemental pool 
                amount for a fiscal year shall be added to the 
                pool amount under subsection (b) for that 
                fiscal year, and
                    ``(B) the amount of the supplemental 
                allotment to a State provided under paragraph 
                (1) shall be added to the outlay allotment of 
                the State for that fiscal year.
            ``(4) Sequence of obligations.--For purposes of 
        carrying out this title, payments to a supplemental 
        allotment eligible State under section 2122 that are 
        attributable to expenditures for medical assistance 
        described in the second sentence of paragraph (1) shall 
        first be counted toward the supplemental outlay 
        allotment provided under this subsection, rather than 
        toward the outlay allotment otherwise provided under 
        this section.

``SEC. 2122. PAYMENTS TO STATES.

    ``(a) Amount of Payment.--From the allotment of a State 
under section 2121 for a fiscal year, subject to the succeeding 
provisions of this title, the Secretary shall pay to each State 
which has a MediGrant plan approved under part E, for each 
quarter in the fiscal year--
            ``(1) an amount equal to the applicable Federal 
        medical assistance percentage (as defined in subsection 
        (c)) of the total amount expended during such quarter 
        as medical assistance under the plan; plus
            ``(2) an amount equal to the applicable Federal 
        medical assistance percentage of the total amount 
        expended during such quarter for medically-related 
        services (as defined in section 2112(e)(2)); plus
            ``(3) subject to section 2123(c)--
                    ``(A) an amount equal to 90 percent of the 
                amounts expended during such quarter for the 
                design, development, and installation of 
                information systems and for providing 
                incentives to promote the enforcement of 
                medical support orders, plus
                    ``(B) an amount equal to 75 percent of the 
                amounts expended during such quarter for 
                medical personnel, administrative support of 
                medical personnel, operation and maintenance of 
                information systems, modification of 
                information systems, quality assurance 
                activities, utilization review, medical and 
                peer review, anti-fraud activities, independent 
                evaluations, coordination of benefits, and 
                meeting reporting requirements under this 
                title, plus
                    ``(C) an amount equal to 50 percent of so 
                much of the remainder of the amounts expended 
                during such quarter as are expended by the 
                State in the administration of the State 
                MediGrant plan.
    ``(b) Payment Process.--
            ``(1) Quarterly estimates.--Prior to the beginning 
        of each quarter, the Secretary shall estimate the 
        amount to which a State will be entitled under 
        subsection (a) for such quarter, such estimates to be 
        based on (A) a report filed by the State containing its 
        estimate of the total sum to be expended in such 
        quarter in accordance with the provisions of such 
        subsections, and stating the amount appropriated or 
        made available by the State and its political 
        subdivisions for such expenditures in such quarter, and 
        if such amount is less than the State's proportionate 
        share of the total sum of such estimated expenditures, 
        the source or sources from which the difference is 
        expected to be derived, and (B) such other 
        investigation as the Secretary may find necessary.
            ``(2) Payment.--
                    ``(A) In general.--The Secretary shall then 
                pay to the State, in such installments as the 
                Secretary may determine and in accordance with 
                section 6503(a) of title 31, United States 
                Code, the amount so estimated, reduced or 
                increased to the extent of any overpayment or 
                underpayment which the Secretary determines was 
                made under this section (or section 1903) to 
                such State for any prior quarter and with 
                respect to which adjustment has not already 
                been made under this subsection (or under 
                section 1903(d)).
                    ``(B) Treatment as overpayments.--
                Expenditures for which payments were made to 
                the State under subsection (a) shall be treated 
                as an overpayment to the extent that the State 
                or local agency administering such plan has 
                been reimbursed for such expenditures by a 
                third party pursuant to the provisions of its 
                plan in compliance with section 2135.
                    ``(C) Recovery of overpayments.--For 
                purposes of this subsection, when an 
                overpayment is discovered, which was made by a 
                State to a person or other entity, the State 
                shall have a period of 60 days in which to 
                recover or attempt to recover such overpayment 
                before adjustment is made in the Federal 
                payment to such State on account of such 
                overpayment. Except as otherwise provided in 
                subparagraph (D), the adjustment in the Federal 
                payment shall be made at the end of the 60 
                days, whether or not recovery was made.
                    ``(D) No adjustment for uncollectables.--In 
                any case where the State is unable to recover a 
                debt which represents an overpayment (or any 
                portion thereof) made to a person or other 
                entity on account of such debt having been 
                discharged in bankruptcy or otherwise being 
                uncollectable, no adjustment shall be made in 
                the Federal payment to such State on account of 
                such overpayment (or portion thereof).
            ``(3) Federal share of recoveries.--The pro rata 
        share to which the United States is equitably entitled, 
        as determined by the Secretary, of the net amount 
        recovered during any quarter by the State or any 
        political subdivision thereof with respect to medical 
        assistance furnished under the State MediGrant plan 
        shall be considered an overpayment to be adjusted under 
        this subsection.
            ``(4) Timing of obligation of funds.--Upon the 
        making of any estimate by the Secretary under this 
        subsection, any appropriations available for payments 
        under this section shall be deemed obligated.
            ``(5) Disallowances.--In any case in which the 
        Secretary estimates that there has been an overpayment 
        under this section to a State on the basis of a claim 
        by such State that has been disallowed by the Secretary 
        under section 1116(d), and such State disputes such 
        disallowance, the amount of the Federal payment in 
        controversy shall, at the option of the State, be 
        retained by such State or recovered by the Secretary 
        pending a final determination with respect to such 
        payment amount. If such final determination is to the 
        effect that any amount was properly disallowed, and the 
        State chose to retain payment of the amount in 
        controversy, the Secretary shall offset, from any 
        subsequent payments made to such State under this 
        title, an amount equal to the proper amount of the 
        disallowance plus interest on such amount disallowed 
        for the period beginning on the date such amount was 
        disallowed and ending on the date of such final 
        determination at a rate (determined by the Secretary) 
        based on the average of the bond equivalent of the 
        weekly 90-day treasury bill auction rates during such 
        period.
    ``(c) Applicable Federal Medical Assistance Percentage 
Defined.--In this section, except as provided in subsection 
(f), the term `applicable Federal medical assistance 
percentage' means, with respect to one of the 50 States or the 
District of Columbia, at the State's or District's option--
            ``(1) the old Federal medical assistance percentage 
        (as determined in subsection (d));
            ``(2) the lesser of--
                    ``(A) new Federal medical assistance 
                percentage (as determined under subsection (e)) 
                or
                    ``(B) the old Federal medical assistance 
                percentage plus 10 percentage points; or
            ``(3) 60 percent.
    ``(d) Old Federal Medical Assistance Percentage.--
            ``(1) In general.--Except as provided in paragraph 
        (2) and subsection (f), the term `old Federal medical 
        assistance percentage' for any State is 100 percent 
        less the State percentage; and the State percentage is 
        that percentage which bears the same ratio to 45 
        percent as the square of the per capita income of such 
        State bears to the square of the per capita income of 
        the continental United States (including Alaska) and 
        Hawaii.
            ``(2) Limitation on range.--In no case shall the 
        old Federal medical assistance percentage be less than 
        50 percent or more than 83 percent.
            ``(3) Promulgation.--The old Federal medical 
        assistance percentage for any State shall be determined 
        and promulgated in accordance with the provisions of 
        section 1101(a)(8)(B).
    ``(e) New Federal Medical Assistance Percentage Defined.--
            ``(1) In general.--
                    ``(A) Term defined.--Except as provided in 
                paragraph (3) and subsection (f), the term `new 
                Federal medical assistance percentage' means, 
                for each of the 50 States and the District of 
                Columbia, 100 percent reduced by the product 
                0.39 and the ratio of--
                            ``(i)(I) for each of the 50 States, 
                        the total taxable resources (TTR) ratio 
                        of the State specified in subparagraph 
                        (B), or
                            ``(II) for the District of 
                        Columbia, the per capita income ratio 
                        specified in subparagraph (C),
                to--
                            ``(ii) the aggregate expenditure 
                        need ratio of the State or District, as 
                        described in subparagraph (D).
                    ``(B) Total taxable resources (ttr) 
                ratio.--For purposes of subparagraph (A)(i)(I), 
                the total taxable resources (TTR) ratio for 
                each of the 50 States is--
                            ``(i) an amount equal to the most 
                        recent 3-year average of the total 
                        taxable resources (TTR) of the State, 
                        as determined by the Secretary of the 
                        Treasury, divided by
                            ``(ii) an amount equal to the sum 
                        of the 3-year averages determined under 
                        clause (i) for each of the 50 States.
                    ``(C) Per capita income ratio.--For 
                purposes of subparagraph (A)(i)(II), the per 
                capita income ratio of the District of Columbia 
                is--
                            ``(i) an amount equal to the most 
                        recent 3-year average of the total 
                        personal income of the District of 
                        Columbia, as determined in accordance 
                        with the provisions of section 
                        1101(a)(8)(B), divided by
                            ``(ii) an amount equal to the total 
                        personal income of the continental 
                        United States (including Alaska) and 
                        Hawaii, as determined under section 
                        1101(a)(8)(B).
                    ``(D) Aggregate expenditure need ratio.--
                For purposes of subparagraph (A), with respect 
                to each of the 50 States and the District of 
                Columbia for a fiscal year, the aggregate 
                expenditure need ratio is--
                            ``(i) the State aggregate 
                        expenditure need (as defined in section 
                        2121(d)) for the State for the fiscal 
                        year, divided by
                            ``(ii) the such of such State 
                        aggregate expenditure needs for the 50 
                        States and the District of Columbia for 
                        the fiscal year.
            ``(2) Limitation on range.--Except as provided in 
        subsection (f), the new Federal medical assistance 
        percentage shall in no case be less than 40 percent or 
        greater than 83 percent.
            ``(3) Promulgation.--The new Federal medical 
        assistance percentage for any State shall be 
        promulgated in a timely manner consistent with the 
        promulgation of the old Federal medical assistance 
        percentage under section 1101(a)(8)(B).
    ``(f) Special Rules.--For purposes of this title--
            ``(1) Commonwealths and territories.--In the case 
        of Puerto Rico, the Virgin Islands, Guam, the Northern 
        Mariana Islands, and American Samoa, the old and new 
        Federal medical assistance percentages are 50 percent.
            ``(2) Alaska.--In the case of Alaska, the old 
        Federal medical assistance percentage is that 
        percentage which bears the same ratio to 45 percent as 
        the square of the adjusted per capita income of such 
        State bears to the square of the per capita income of 
        the continental United States. For purposes of the 
        preceding sentence, the adjusted per capita income for 
        Alaska shall be determined by dividing the State's most 
        recent 3-year average per capita by the input cost 
        index for such State (as determined under section 
        2121(d)(4)).
            ``(3) Indian health service facilities.--
                    ``(A) In general.--The old and new Federal 
                medical assistance percentages shall be 100 
                percent with respect to the amounts expended as 
                medical assistance for services which are 
                received through a facility described in 
                subparagraph (B) of an Indian tribe or tribal 
                organization or through an Indian Health 
                Service facility whether operated by the Indian 
                Health Service or by an Indian tribe or tribal 
                organization (as defined in section 4 of the 
                Indian Health Care Improvement Act).
                    ``(B) Facility described.--For purposes of 
                subparagraph (A), a facility described in this 
                subparagraph is a facility of an Indian tribe 
                if--
                            ``(i) the facility is located in a 
                        State which, as of the date of the 
                        enactment of this title, was not 
                        operating its State plan under title 
                        XIX pursuant to a Statewide waiver 
                        approved under section 1115,
                            ``(ii) the facility is not an 
                        Indian Health Service facility,
                            ``(iii) the tribe owns at least 2 
                        such facilities, and
                            ``(iv) the tribe has at least 
                        50,000 members (as of the date of the 
                        enactment of this title).
            ``(4) No state matching required for certain 
        expenditures.--In applying subsection (a)(1) with 
        respect to medical assistance provided to unlawful 
        aliens pursuant to the exception specified in section 
        2123(f)(2), payment shall be made for the amount of 
        such assistance without regard to any need for a State 
        match.
            ``(5) Special transitional rule.--
                    ``(A) In general.--Notwithstanding 
                subsections (a) and (f), in order to receive 
                the full State outlay allotment described in 
                section 2121(c)(3)(C)(i), a State described in 
                subparagraph (C) shall expend State funds in a 
                fiscal year (before fiscal year 2000) under a 
                MediGrant plan under this title in an amount 
                not less than the adjusted base year State 
                expenditures, plus the applicable percentage of 
                the difference between such expenditures and 
                the amount necessary to qualify for the full 
                State outlay allotment so described in such 
                fiscal year as determined under this section 
                without regard to this paragraph.
                    ``(B) Reduction in allotment if expenditure 
                not met.--In the event a State described in 
                subparagraph (C) fails to expend State funds in 
                an amount required by subparagraph (A) for a 
                fiscal year, the outlay allotment described in 
                section 2121(c)(3)(C)(i) for such year for such 
                State shall be reduced by an amount which bears 
                the same ratio to such outlay allotment as the 
                State funds expended in such fiscal year bears 
                to the amount required by subparagraph (A).
                    ``(C) Adjusted base year state 
                expenditures.--For purposes of this paragraph, 
                the term `adjusted base year State 
                expenditures' means--
                            ``(i) for New Hampshire, 
                        $203,000,000, and
                            ``(ii) for Louisiana, $355,000,000.
                    ``(D) Applicable percentage.--For purposes 
                of this paragraph, the applicable percentage 
                for a fiscal year is specified in the following 
                table:

                                                              Applicable
``Fiscal year:                                               Percentage:
    1996......................................................       20 
    1997......................................................       40 
    1998......................................................       60 
    1999......................................................       80.

    ``(g) State Financial Participation.--Each MediGrant plan 
shall provide for financial participation by the State equal to 
not less than 40 percent of the non-Federal share of the 
expenditures under the plan with respect to which payments may 
be made under this section.

``SEC. 2123. LIMITATION ON USE OF FUNDS; DISALLOWANCE.

    ``(a) In General.--Funds provided to a State under this 
title shall only be used to carry out the purposes of this 
title.
    ``(b) Disallowances for Excluded Providers.--
            ``(1) In general.--Payment shall not be made to a 
        State under this part for expenditures for items and 
        services furnished--
                    ``(A) by a provider who was excluded from 
                participation under title V, XVIII, or XX or 
                under this title pursuant to section 1128, 
                1128A, 1156, or 1842(j)(2), or
                    ``(B) under the medical direction or on the 
                prescription of a physician who was so 
                excluded, if the provider of the services knew 
                or had reason to know of the exclusion.
            ``(2) Exception for emergency services.--Paragraph 
        (1) shall not apply to emergency items or services, not 
        including hospital emergency room services.
    ``(c) Limitations.--
            ``(1) In general.--No Federal financial assistance 
        is available for expenditures under the MediGrant plan 
        for--
                    ``(A) medically-related services for a 
                quarter to the extent such expenditures exceed 
                5 percent of the total expenditures under the 
                plan for the quarter, or
                    ``(B) total administrative expenses (other 
                than expenses described in paragraph (2) during 
                the first 8 quarters in which the plan is in 
                effect under this title) for quarters in a 
                fiscal year to the extent such expenditures 
                exceed the sum of $20,000,000 plus 10 percent 
                of the total expenditures under the plan for 
                the year.
            ``(2) Administrative expenses not subject to 
        limitation.--The administrative expenses referred to in 
        this paragraph are expenditures under the MediGrant 
        plan for the following activities:
                    ``(A) Quality assurance.
                    ``(B) The development and operation of the 
                certification program for nursing facilities 
                and intermediate care facilities for the 
                mentally retarded under section 2137.
                    ``(C) Utilization review activities, 
                including medical activities and activities of 
                peer review organizations.
                    ``(D) Inspection and oversight of providers 
                and capitated health care organizations.
                    ``(E) Anti-fraud activities.
                    ``(F) Independent evaluations.
                    ``(G) Activities required to meet reporting 
                requirements under this title.
    ``(d) Treatment of Third Party Liability.--No payment shall 
be made to a State under this part for expenditures for medical 
assistance provided for an individual under its MediGrant plan 
to the extent that a private insurer (as defined by the 
Secretary by regulation and including a group health plan (as 
defined in section 607(1) of the Employee Retirement Income 
Security Act of 1974), a service benefit plan, and a health 
maintenance organization) would have been obligated to provide 
such assistance but for a provision of its insurance contract 
which has the effect of limiting or excluding such obligation 
because the individual is eligible for or is provided medical 
assistance under the plan.
    ``(e) MediGrant as Secondary Payer.--Except as otherwise 
provided by law, no payment shall be made to a State under this 
part for expenditures for medical assistance provided for an 
individual under its MediGrant plan to the extent that payment 
has been made or can reasonably be expected to be made promptly 
(as determined in accordance with regulations) under any other 
federally operated or financed health care program, other than 
a program operated or financed by the Indian Health Service, as 
identified by the Secretary. For purposes of this subsection, 
rules similar to the rules for overpayments under section 
2122(b) shall apply.
    ``(f) Limitation on Payments to Emergency Services for 
Nonlawful Aliens.--
            ``(1) In general.--Notwithstanding the preceding 
        provisions of this section, except as provided in 
        paragraph (2), no payment may be made to a State under 
        this part for medical assistance furnished to an alien 
        who is not lawfully admitted for permanent residence or 
        otherwise permanently residing in the United States 
        under color of law.
            ``(2) Exception for emergency services.--Payment 
        may be made under this section for care and services 
        that are furnished to an alien described in paragraph 
        (1) only if--
                    ``(A) such care and services are necessary 
                for the treatment of an emergency medical 
                condition of the alien,
                    ``(B) such alien otherwise meets the 
                eligibility requirements for medical assistance 
                under the MediGrant plan (other than a 
                requirement of the receipt of aid or assistance 
                under title IV, supplemental security income 
                benefits under title XVI, or a State 
                supplementary payment), and
                    ``(C) such care and services are not 
                related to an organ transplant procedure.
            ``(3) Emergency medical condition defined.--For 
        purposes of this subsection, the term `emergency 
        medical condition' means a medical condition (including 
        emergency labor and delivery) manifesting itself by 
        acute symptoms of sufficient severity (including severe 
        pain) such that the absence of immediate medical 
        attention could reasonably be expected to result in--
                    ``(A) placing the patient's health in 
                serious jeopardy,
                    ``(B) serious impairment to bodily 
                functions, or
                    ``(C) serious dysfunction of any bodily 
                organ or part.
    ``(g) Limitation on Payment for Certain Outpatient 
Prescription Drugs.--
            ``(1) In general.--No payment may be made to a 
        State under this part for medical assistance for 
        covered outpatient drugs (as defined in section 
        2175(i)(2)) of a manufacturer provided under the 
        MediGrant plan unless the manufacturer (as defined in 
        section 2175(i)(4)) of the drug--
                    ``(A) has entered into a MediGrant master 
                rebate agreement with the Secretary under 
                section 2175,
                    ``(B) is otherwise complying with the 
                provisions of such section,
                    ``(C) is complying with the provisions of 
                section 8126 of title 38, United States Code, 
                including the requirement of entering into a 
                master agreement with the Secretary of Veterans 
                Affairs under such section, and
                    ``(D) subject to paragraph (4), is 
                complying with the provisions of section 340B 
                of the Public Health Service Act, including the 
                requirement of entering into an agreement with 
                the Secretary under such section.
            ``(2) Construction.--Nothing in this subsection 
        shall be construed as requiring a State to participate 
        in the MediGrant master rebate agreement under section 
        2175.
            ``(3) Effect of subsequent amendments.--For 
        purposes of subparagraphs (C) and (D), in determining 
        whether a manufacturer is in compliance with the 
        requirements of section 8126 of title 38, United States 
        Code, or section 340B of the Public Health Service 
        Act--
                    ``(A) the Secretary shall not take into 
                account any amendments to such sections that 
                are enacted after the enactment of title VI of 
                the Veterans Health Care Act of 1992, and
                    ``(B) a manufacturer is deemed to meet such 
                requirements if the manufacturer establishes to 
                the satisfaction of the Secretary that the 
                manufacturer would comply (and has offered to 
                comply) with the provisions of such sections 
                (as in effect immediately after the enactment 
                of the Veterans Health Care Act of 1992) and 
                would have entered into an agreement under such 
                section (as such section was in effect at such 
                time), but for a legislative change in such 
                section after the date of the enactment of the 
                Veterans Health Care Act of 1992.
            ``(4) Effect of establishment of alternative 
        mechanism under public health service act.--If the 
        Secretary does not establish a mechanism to ensure 
        against duplicate discounts or rebates under section 
        340B(a)(5)(A) of the Public Health Service Act within 
        12 months of the date of the enactment of such section, 
        the following requirements shall apply:
                    ``(A) Each covered entity under such 
                section shall inform the State when it is 
                seeking reimbursement from the MediGrant plan 
                for medical assistance with respect to a unit 
                of any covered outpatient drug which is subject 
                to an agreement under section 340B(a) of such 
                Act.
                    ``(B) Each such State shall provide a means 
                by which such an entity shall indicate on any 
                drug reimbursement claims form (or format, 
                where electronic claims management is used) 
                that a unit of the drug that is the subject of 
                the form is subject to an agreement under 
                section 340B of such Act, and not submit to any 
                manufacturer a claim for a rebate payment with 
                respect to such a drug.

                ``Part D--Program Integrity and Quality

``SEC. 2131. USE OF AUDITS TO ACHIEVE FISCAL INTEGRITY.

    ``(a) Financial Audits of Program.--
            ``(1) In general.--Each MediGrant plan shall 
        provide for an annual audit of the State's expenditures 
        from amounts received under this title, in compliance 
        with chapter 75 of title 31, United States Code.
            ``(2) Verification audits.--If, after consultation 
        with the State and the Comptroller General and after a 
        fair hearing, the Secretary determines that a State's 
        audit under paragraph (1) was performed in substantial 
        violation of chapter 75 of title 31, United States 
        Code, the Secretary may--
                    ``(A) require that the State provide for a 
                verification audit in compliance with such 
                chapter, or
                    ``(B) conduct such a verification audit.
            ``(3) Availability of audit reports.--Within 30 
        days after completion of each audit or verification 
        audit under this subsection, the State shall--
                    ``(A) provide the Secretary with a copy of 
                the audit report, including the State's 
                response to any recommendations of the auditor, 
                and
                    ``(B) make the audit report available for 
                public inspection in the same manner as 
                proposed MediGrant plan amendments are made 
                available under section 2105.
    ``(b) Fiscal Controls.--
            ``(1) In general.--With respect to the accounting 
        and expenditure of funds under this title, each State 
        shall adopt and maintain such fiscal controls, 
        accounting procedures, and data processing safeguards 
        as the State deems reasonably necessary to assure the 
        fiscal integrity of the State's activities under this 
        title.
            ``(2) Consistency with generally accepted 
        accounting principles.--Such controls and procedures 
        shall be generally consistent with generally accepted 
        accounting principles as recognized by the Governmental 
        Accounting Standards Board or the Comptroller General.
    ``(c) Audits of Providers.--Each MediGrant plan shall 
provide that the records of any entity providing items or 
services for which payment may be made under the plan may be 
audited as necessary to ensure that proper payments are made 
under the plan.

``SEC. 2132. FRAUD PREVENTION PROGRAM.

    ``(a) Establishment.--Each MediGrant plan shall provide for 
the establishment and maintenance of an effective program for 
the detection and prevention of fraud and abuse by 
beneficiaries, providers, and others in connection with the 
operation of the program.
    ``(b) Program Requirements.--The program established 
pursuant to subsection (a) shall include at least the following 
requirements:
            ``(1) Disclosure of information.--Any disclosing 
        entity (as defined in section 1124(a)) receiving 
        payments under the MediGrant plan shall comply with the 
        requirements of section 1124.
            ``(2) Supply of information.--An entity (other than 
        an individual practitioner or a group of practitioners) 
        that furnishes, or arranges for the furnishing of, an 
        item or service under the MediGrant plan shall supply 
        upon request specifically addressed to the entity by 
        the Secretary or the State agency the information 
        described in section 1128(b)(9).
            ``(3) Exclusion.--
                    ``(A) In general.--The MediGrant plan shall 
                exclude any specified individual or entity from 
                participation in the plan for the period 
                specified by the Secretary when required by the 
                Secretary to do so pursuant to section 1128 or 
                section 1128A, and provide that no payment may 
                be made under the plan with respect to any item 
                or service furnished by such individual or 
                entity during such period.
                    ``(B) Authority.--In addition to any other 
                authority, a State may exclude any individual 
                or entity for purposes of participating under 
                the MediGrant plan for any reason for which the 
                Secretary could exclude the individual or 
                entity from participation in a program under 
                title XVIII or under section 1128, 1128A, or 
                1866(b)(2).
            ``(4) Notice.--The MediGrant plan shall provide 
        that whenever a provider of services or any other 
        person is terminated, suspended, or otherwise 
        sanctioned or prohibited from participating under the 
        plan, the State agency responsible for administering 
        the plan shall promptly notify the Secretary and, in 
        the case of a physician, the State medical licensing 
        board of such action.
            ``(5) Access to information.--The MediGrant plan 
        shall provide that the State will provide information 
        and access to certain information respecting sanctions 
        taken against health care practitioners and providers 
        by State licensing authorities in accordance with 
        section 2133.

``SEC. 2133. INFORMATION CONCERNING SANCTIONS TAKEN BY STATE LICENSING 
                    AUTHORITIES AGAINST HEALTH CARE PRACTITIONERS AND 
                    PROVIDERS.

    ``(a) Information Reporting Requirement.--The requirement 
referred to in section 2132(b)(5) is that the State must 
provide for the following:
            ``(1) Information reporting system.--The State must 
        have in effect a system of reporting the following 
        information with respect to formal proceedings (as 
        defined by the Secretary in regulations) concluded 
        against a health care practitioner or entity by any 
        authority of the State (or of a political subdivision 
        thereof) responsible for the licensing of health care 
        practitioners (or any peer review organization or 
        private accreditation entity reviewing the services 
        provided by health care practitioners) or entities:
                    ``(A) Any adverse action taken by such 
                licensing authority as a result of the 
                proceeding, including any revocation or 
                suspension of a license (and the length of any 
                such suspension), reprimand, censure, or 
                probation.
                    ``(B) Any dismissal or closure of the 
                proceedings by reason of the practitioner or 
                entity surrendering the license or leaving the 
                State or jurisdiction.
                    ``(C) Any other loss of the license of the 
                practitioner or entity, whether by operation of 
                law, voluntary surrender, or otherwise.
                    ``(D) Any negative action or finding by 
                such authority, organization, or entity 
                regarding the practitioner or entity.
            ``(2) Access to documents.--The State must provide 
        the Secretary (or an entity designated by the 
        Secretary) with access to such documents of the 
        authority described in paragraph (1) as may be 
        necessary for the Secretary to determine the facts and 
        circumstances concerning the actions and determinations 
        described in such paragraph for the purpose of carrying 
        out this Act.
    ``(b) Form of Information.--The information described in 
subsection (a)(1) shall be provided to the Secretary (or to an 
appropriate private or public agency, under suitable 
arrangements made by the Secretary with respect to receipt, 
storage, protection of confidentiality, and dissemination of 
information) in such a form and manner as the Secretary 
determines to be appropriate in order to provide for activities 
of the Secretary under this Act and in order to provide, 
directly or through suitable arrangements made by the 
Secretary, information--
            ``(1) to agencies administering Federal health care 
        programs, including private entities administering such 
        programs under contract,
            ``(2) to licensing authorities described in 
        subsection (a)(1),
            ``(3) to State agencies administering or 
        supervising the administration of State health care 
        programs (as defined in section 1128(h)),
            ``(4) to utilization and quality control peer 
        review organizations described in part B of title XI 
        and to appropriate entities with contracts under 
        section 1154(a)(4)(C) with respect to eligible 
        organizations reviewed under the contracts,
            ``(5) to State MediGrant fraud control units (as 
        defined in section 2134),
            ``(6) to hospitals and other health care entities 
        (as defined in section 431 of the Health Care Quality 
        Improvement Act of 1986), with respect to physicians or 
        other licensed health care practitioners that have 
        entered (or may be entering) into an employment or 
        affiliation relationship with, or have applied for 
        clinical privileges or appointments to the medical 
        staff of, such hospitals or other health care entities 
        (and such information shall be deemed to be disclosed 
        pursuant to section 427 of, and be subject to the 
        provisions of, that Act),
            ``(7) to the Attorney General and such other law 
        enforcement officials as the Secretary deems 
        appropriate, and
            ``(8) upon request, to the Comptroller General,
        in order for such authorities to determine the fitness 
        of individuals to provide health care services, to 
        protect the health and safety of individuals receiving 
        health care through such programs, and to protect the 
        fiscal integrity of such programs.
    ``(c) Confidentiality of Information Provided.--The 
Secretary shall provide for suitable safeguards for the 
confidentiality of the information furnished under subsection 
(a). Nothing in this subsection shall prevent the disclosure of 
such information by a party which is otherwise authorized, 
under applicable State law, to make such disclosure.
    ``(d) Appropriate Coordination.--The Secretary shall 
provide for the maximum appropriate coordination in the 
implementation of subsection (a) of this section and section 
422 of the Health Care Quality Improvement Act of 1986 and 
section 1128E.

``SEC. 2134. STATE MEDIGRANT FRAUD CONTROL UNITS.

    ``(a) In General.--Each MediGrant plan shall provide for a 
State MediGrant fraud control unit described in subsection (b) 
that effectively carries out the functions and requirements 
described in such subsection, unless the State demonstrates to 
the satisfaction of the Secretary that the effective operation 
of such a unit in the State would not be cost-effective because 
minimal fraud exists in connection with the provision of 
covered services to eligible individuals under the plan, and 
that beneficiaries under the plan will be protected from abuse 
and neglect in connection with the provision of medical 
assistance under the plan without the existence of such a unit.
    ``(b) Units Described.--For purposes of this section, the 
term `State MediGrant fraud control unit' means a single 
identifiable entity of the State government which meets the 
following requirements:
            ``(1) Organization.--The entity--
                    ``(A) is a unit of the office of the State 
                Attorney General or of another department of 
                State government which possesses statewide 
                authority to prosecute individuals for criminal 
                violations;
                    ``(B) is in a State the constitution of 
                which does not provide for the criminal 
                prosecution of individuals by a statewide 
                authority and has formal procedures that--
                            ``(i) assure its referral of 
                        suspected criminal violations relating 
                        to the program under this title to the 
                        appropriate authority or authorities in 
                        the State for prosecution, and
                            ``(ii) assure its assistance of, 
                        and coordination with, such authority 
                        or authorities in such prosecutions; or
                    ``(C) has a formal working relationship 
                with the office of the State Attorney General 
                and has formal procedures (including procedures 
                for its referral of suspected criminal 
                violations to such office) which provide 
                effective coordination of activities between 
                the entity and such office with respect to the 
                detection, investigation, and prosecution of 
                suspected criminal violations relating to the 
                program under this title.
            ``(2) Independence.--The entity is separate and 
        distinct from any State agency that has principal 
        responsibilities for administering or supervising the 
        administration of the MediGrant plan.
            ``(3) Function.--The entity's function is 
        conducting a statewide program for the investigation 
        and prosecution of violations of all applicable State 
        laws regarding any and all aspects of fraud in 
        connection with any aspect of the provision of medical 
        assistance and the activities of providers of such 
        assistance under the MediGrant plan.
            ``(4) Review of complaints.--The entity has 
        procedures for reviewing complaints of the abuse and 
        neglect of patients of health care facilities which 
        receive payments under the MediGrant plan under this 
        title, and, where appropriate, for acting upon such 
        complaints under the criminal laws of the State or for 
        referring them to other State agencies for action.
            ``(5) Overpayments.--
                    ``(A) In general.--The entity provides for 
                the collection, or referral for collection to a 
                single State agency, of overpayments that are 
                made under the MediGrant plan to health care 
                providers and that are discovered by the entity 
                in carrying out its activities.
                    ``(B) Treatment of certain overpayments.--
                If an overpayment is the direct result of the 
                failure of the provider (or the provider's 
                billing agent) to adhere to a change in the 
                State's billing instructions, the entity may 
                recover the overpayment only if the entity 
                demonstrates that the provider (or the 
                provider's billing agent) received prior 
                written or electronic notice of the change in 
                the billing instructions before the submission 
                of the claims on which the overpayment is 
                based.
            ``(6) Personnel.--The entity employs such auditors, 
        attorneys, investigators, and other necessary personnel 
        and is organized in such a manner as is necessary to 
        promote the effective and efficient conduct of the 
        entity's activities.

``SEC. 2135. RECOVERIES FROM THIRD PARTIES AND OTHERS.

    ``(a) Third Party Liability.--Each MediGrant plan shall 
provide for reasonable steps--
            ``(1) to ascertain the legal liability of third 
        parties to pay for care and services available under 
        the plan, including the collection of sufficient 
        information to enable States to pursue claims against 
        third parties, and
            ``(2) to seek reimbursement for medical assistance 
        provided to the extent legal liability is established 
        where the amount expected to be recovered exceeds the 
        costs of the recovery.
    ``(b) Beneficiary Protection.--
            ``(1) In general.--Each MediGrant plan shall 
        provide that in the case of a person furnishing 
        services under the plan for which a third party may be 
        liable for payment--
                    ``(A) the person may not seek to collect 
                from the individual (or financially responsible 
                relative) payment of an amount for the service 
                more than could be collected under the plan in 
                the absence of such third party liability, and
                    ``(B) may not refuse to furnish services to 
                such an individual because of a third party's 
                potential liability for payment for the 
                service.
            ``(2) Penalty.--A MediGrant plan may provide for a 
        reduction of any payment amount otherwise due with 
        respect to a person who furnishes services under the 
        plan in an amount equal to up to 3 times the amount of 
        any payment sought to be collected by that person in 
        violation of paragraph (1)(A).
    ``(c) General Liability.--The State shall prohibit any 
health insurer, including a group health plan as defined in 
section 607 of the Employee Retirement Income Security Act of 
1974, a service benefit plan, or a health maintenance 
organization, in enrolling an individual or in making any 
payments for benefits to the individual or on the individual's 
behalf, from taking into account that the individual is 
eligible for or is provided medical assistance under a 
MediGrant plan for any State.
    ``(d) Acquisition of Rights of Beneficiaries.--To the 
extent that payment has been made under a MediGrant plan in any 
case where a third party has a legal liability to make payment 
for such assistance, the State shall have in effect laws under 
which, to the extent that payment has been made under the plan 
for health care items or services furnished to an individual, 
the State is considered to have acquired the rights of such 
individual to payment by any other party for such health care 
items or services.
    ``(e) Assignment of Medical Support Rights.--The MediGrant 
plan shall provide for mandatory assignment of rights of 
payment for medical support and other medical care owed to 
recipients in accordance with section 2136.
    ``(f) Required Laws Relating to Medical Child Support.--
            ``(1) In general.--Each State with a MediGrant plan 
        shall have in effect the following laws:
                    ``(A) A law that prohibits an insurer from 
                denying enrollment of a child under the health 
                coverage of the child's parent on the ground 
                that--
                            ``(i) the child was born out of 
                        wedlock,
                            ``(ii) the child is not claimed as 
                        a dependent on the parent's Federal 
                        income tax return, or
                            ``(iii) the child does not reside 
                        with the parent or in the insurer's 
                        service area.
                    ``(B) In any case in which a parent is 
                required by a court or administrative order to 
                provide health coverage for a child and the 
                parent is eligible for family health coverage 
                through an insurer, a law that requires such 
                insurer--
                            ``(i) to permit such parent to 
                        enroll under such family coverage any 
                        such child who is otherwise eligible 
                        for such coverage (without regard to 
                        any enrollment season restrictions);
                            ``(ii) if such a parent is enrolled 
                        but fails to make application to obtain 
                        coverage of such child, to enroll such 
                        child under such family coverage upon 
                        application by the child's other parent 
                        or by the State agency administering 
                        the program under this title or part D 
                        of title IV; and
                            ``(iii) not to disenroll, or 
                        eliminate coverage of, such a child 
                        unless the insurer is provided 
                        satisfactory written evidence that--
                                    ``(I) such court or 
                                administrative order is no 
                                longer in effect, or
                                    ``(II) the child is or will 
                                be enrolled in comparable 
                                health coverage through another 
                                insurer which will take effect 
                                not later than the effective 
                                date of such disenrollment.
                    ``(C) In any case in which a parent is 
                required by a court or administrative order to 
                provide health coverage for a child and the 
                parent is eligible for family health coverage 
                through an employer doing business in the 
                State, a law that requires such employer--
                            ``(i) to permit such parent to 
                        enroll under such family coverage any 
                        such child who is otherwise eligible 
                        for such coverage (without regard to 
                        any enrollment season restrictions);
                            ``(ii) if such a parent is enrolled 
                        but fails to make application to obtain 
                        coverage of such child, to enroll such 
                        child under such family coverage upon 
                        application by the child's other parent 
                        or by the State agency administering 
                        the program under this title or part D 
                        of title IV; and
                            ``(iii) not to disenroll (or 
                        eliminate coverage of) any such child 
                        unless--
                                    ``(I) the employer is 
                                provided satisfactory written 
                                evidence that such court or 
                                administrative order is no 
                                longer in effect, or the child 
                                is or will be enrolled in 
                                comparable health coverage 
                                which will take effect not 
                                later than the effective date 
                                of such disenrollment, or
                                    ``(II) the employer has 
                                eliminated family health 
                                coverage for all of its 
                                employees; and
                            ``(iv) to withhold from such 
                        employee's compensation the employee's 
                        share (if any) of premiums for health 
                        coverage (except that the amount so 
                        withheld may not exceed the maximum 
                        amount permitted to be withheld under 
                        section 303(b) of the Consumer Credit 
                        Protection Act), and to pay such share 
                        of premiums to the insurer, except that 
                        the Secretary may provide by regulation 
                        for appropriate circumstances under 
                        which an employer may withhold less 
                        than such employee's share of such 
                        premiums.
                    ``(D) A law that prohibits an insurer from 
                imposing requirements on a State agency, which 
                has been assigned the rights of an individual 
                eligible for medical assistance under this 
                title and covered for health benefits from the 
                insurer, that are different from requirements 
                applicable to an agent or assignee of any other 
                individual so covered.
                    ``(E) A law that requires an insurer, in 
                any case in which a child has health coverage 
                through the insurer of a noncustodial parent--
                            ``(i) to provide such information 
                        to the custodial parent as may be 
                        necessary for the child to obtain 
                        benefits through such coverage,
                            ``(ii) to permit the custodial 
                        parent (or provider, with the custodial 
                        parent's approval) to submit claims for 
                        covered services without the approval 
                        of the noncustodial parent, and
                            ``(iii) to make payment on claims 
                        submitted in accordance with clause 
                        (ii) directly to such custodial parent, 
                        the provider, or the State agency.
                    ``(F) A law that permits the State agency 
                under this title to garnish the wages, salary, 
                or other employment income of, and requires 
                withholding amounts from State tax refunds to, 
                any person who--
                            ``(i) is required by court or 
                        administrative order to provide 
                        coverage of the costs of health 
                        services to a child who is eligible for 
                        medical assistance under this title,
                            ``(ii) has received payment from a 
                        third party for the costs of such 
                        services to such child, but
                            ``(iii) has not used such payments 
                        to reimburse, as appropriate, either 
                        the other parent or guardian of such 
                        child or the provider of such services,
                to the extent necessary to reimburse the State 
                agency for expenditures for such costs under 
                its plan under this title, but any claims for 
                current or past-due child support shall take 
                priority over any such claims for the costs of 
                such services.
            ``(2) Definition.--For purposes of this subsection, 
        the term `insurer' includes a group health plan, as 
        defined in section 607(1) of the Employee Retirement 
        Income Security Act of 1974, a health maintenance 
        organization, and an entity offering a service benefit 
        plan.
    ``(g) Estate Recoveries and Liens Permitted.--A State may 
take such actions as it considers appropriate to adjust or 
recover from the individual or the individual's estate any 
amounts paid as medical assistance to or on behalf of the 
individual under the MediGrant plan, including through the 
imposition of liens against the property or estate of the 
individual.

``SEC. 2136. ASSIGNMENT OF RIGHTS OF PAYMENT.

    ``(a) In General.--For the purpose of assisting in the 
collection of medical support payments and other payments for 
medical care owed to recipients of medical assistance under the 
MediGrant plan, each MediGrant plan shall--
            ``(1) provide that, as a condition of eligibility 
        for medical assistance under the plan to an individual 
        who has the legal capacity to execute an assignment for 
        himself, the individual is required--
                    ``(A) to assign the State any rights, of 
                the individual or of any other person who is 
                eligible for medical assistance under the plan 
                and on whose behalf the individual has the 
                legal authority to execute an assignment of 
                such rights, to support (specified as support 
                for the purpose of medical care by a court or 
                administrative order) and to payment for 
                medical care from any third party,
                    ``(B) to cooperate with the State (i) in 
                establishing the paternity of such person 
                (referred to in subparagraph (A)) if the person 
                is a child born out of wedlock, and (ii) in 
                obtaining support and payments (described in 
                subparagraph (A)) for himself and for such 
                person, unless (in either case) the individual 
                is a pregnant woman or the individual is found 
                to have good cause for refusing to cooperate as 
                determined by the State, and
                    ``(C) to cooperate with the State in 
                identifying, and providing information to 
                assist the State in pursuing, any third party 
                who may be liable to pay for care and services 
                available under the plan, unless such 
                individual has good cause for refusing to 
                cooperate as determined by the State; and
            ``(2) provide for entering into cooperative 
        arrangements, including financial arrangements, with 
        any appropriate agency of any State (including, with 
        respect to the enforcement and collection of rights of 
        payment for medical care by or through a parent, with a 
        State's agency established or designated under section 
        454(3)) and with appropriate courts and law enforcement 
        officials, to assist the agency or agencies 
        administering the plan with respect to--
                    ``(A) the enforcement and collection of 
                rights to support or payment assigned under 
                this section, and
                    ``(B) any other matters of common concern.
    ``(b) Use of Amounts Collected.--Such part of any amount 
collected by the State under an assignment made under the 
provisions of this section shall be retained by the State as is 
necessary to reimburse it for medical assistance payments made 
on behalf of an individual with respect to whom such assignment 
was executed (with appropriate reimbursement of the Federal 
Government to the extent of its participation in the financing 
of such medical assistance), and the remainder of such amount 
collected shall be paid to such individual.

``SEC. 2137. QUALITY ASSURANCE REQUIREMENTS FOR NURSING FACILITIES.

    ``(a) Nursing Facility Defined.--In this title, the term 
`nursing facility' means an institution (or a distinct part of 
an institution) which--
            ``(1) is primarily engaged in providing to 
        residents--
                    ``(A) skilled nursing care and related 
                services for residents who require medical or 
                nursing care,
                    ``(B) rehabilitation services for the 
                rehabilitation of injured, disabled, or sick 
                persons, or
                    ``(C) on a regular basis, health-related 
                care and services to individuals who because of 
                their mental or physical condition require care 
                and services (above the level of room and 
                board) which can be made available to them only 
                through institutional facilities,
        and is not primarily for the care and treatment of 
        mental diseases;
            ``(2) has in effect a transfer agreement (meeting 
        the requirements of section 1861(l)) with one or more 
        hospitals having agreements in effect under section 
        1866; and
            ``(3) meets the requirements for a nursing facility 
        described in subsections (b), (c), and (d) of this 
        section.
Such term also includes any facility which is located in a 
State on an Indian reservation and is certified by the 
Secretary as meeting the requirements of paragraph (1) and 
subsections (b), (c), and (d).
    ``(b) Requirements Relating to Provision of Services.--
            ``(1) Quality of life.--
                    ``(A) In general.--A nursing facility must 
                care for its residents in such a manner and in 
                such an environment as will reasonably promote 
                maintenance or enhancement of the quality of 
                life of each resident.
                    ``(B) Quality assessment and assurance.--A 
                nursing facility must maintain a quality 
                assessment and assurance committee, consisting 
                of the director of nursing services, a 
                physician designated by the facility, and at 
                least 3 other members of the facility's staff, 
                which (i) meets at least quarterly to identify 
                issues with respect to which quality assessment 
                and assurance activities are necessary and (ii) 
                develops and implements appropriate plans of 
                action to correct identified quality 
                deficiencies. A State or the Secretary may not 
                require disclosure of the records of such 
                committee except insofar as such disclosure is 
                related to the compliance of such committee 
                with the requirements of this subparagraph.
            ``(2) Scope of services and activities under plan 
        of care.--A nursing facility must provide services and 
        activities in accordance with a written plan of care 
        which--
                    ``(A) describes the medical, nursing, and 
                psychosocial needs of the resident and how such 
                needs will be met;
                    ``(B) is initially prepared, with the 
                participation to the extent practicable of the 
                resident or the resident's family or legal 
                representative, by a team which includes the 
                resident's attending physician and a registered 
                professional nurse with responsibility for the 
                resident; and
                    ``(C) is periodically reviewed and revised 
                by such team after each assessment under 
                paragraph (3).
            ``(3) Residents' assessment.--
                    ``(A) Requirement.--A nursing facility must 
                conduct a comprehensive, accurate, 
                standardized, reproducible assessment of each 
                resident's functional capacity, which 
                assessment--
                            ``(i) describes the resident's 
                        capability to perform daily life 
                        functions and significant impairments 
                        in functional capacity;
                            ``(ii) uses an instrument which is 
                        specified by the State under subsection 
                        (e)(5); and
                            ``(iii) includes the identification 
                        of medical problems.
                    ``(B) Certification.--
                            ``(i) In general.--Each such 
                        assessment must be conducted or 
                        coordinated (with the appropriate 
                        participation of health professionals) 
                        by a registered professional nurse who 
                        signs and certifies the completion of 
                        the assessment. Each individual who 
                        completes a portion of such an 
                        assessment shall sign and certify as to 
                        the accuracy of that portion of the 
                        assessment.
                            ``(ii) Penalty for falsification.--
                                    ``(I) An individual who 
                                willfully and knowingly 
                                certifies under clause (i) a 
                                material and false statement in 
                                a resident assessment is 
                                subject to a civil money 
                                penalty of not more than $1,000 
                                with respect to each 
                                assessment.
                                    ``(II) An individual who 
                                willfully and knowingly causes 
                                another individual to certify 
                                under clause (i) a material and 
                                false statement in a resident 
                                assessment is subject to a 
                                civil money penalty of not more 
                                than $5,000 with respect to 
                                each assessment.
                                    ``(III) The provisions of 
                                section 1128A (other than 
                                subsections (a) and (b)) shall 
                                apply to a civil money penalty 
                                under this clause in the same 
                                manner as such provisions apply 
                                to a penalty or proceeding 
                                under section 1128A(a).
                            ``(iii) Use of independent 
                        assessors.--If a State determines, 
                        under a survey under subsection (g) or 
                        otherwise, that there has been a 
                        knowing and willful certification of 
                        false assessments under this paragraph, 
                        the State may require (for a period 
                        specified by the State) that resident 
                        assessments under this paragraph be 
                        conducted and certified by individuals 
                        who are independent of the facility and 
                        who are approved by the State.
                    ``(C) Frequency.--
                            ``(i) In general.--Such an 
                        assessment must be conducted--
                                    ``(I) promptly upon (but no 
                                later than 14 days after the 
                                date of) admission for each 
                                individual admitted;
                                    ``(II) promptly after a 
                                significant change in the 
                                resident's physical or mental 
                                condition; and
                                    ``(III) in no case less 
                                often than once every 12 
                                months.
                            ``(ii) Resident review.--The 
                        nursing facility must examine each 
                        resident no less frequently than once 
                        every 3 months and, as appropriate, 
                        revise the resident's assessment to 
                        assure the continuing accuracy of the 
                        assessment.
                    ``(D) Use.--The results of such an 
                assessment shall be used in developing, 
                reviewing, and revising the resident's plan of 
                care under paragraph (2).
                    ``(E) Coordination.--Such assessments shall 
                be coordinated with any State-required 
                preadmission screening program to the maximum 
                extent practicable in order to avoid 
                duplicative testing and effort. In addition, a 
                nursing facility shall notify the State mental 
                health authority or State mental retardation or 
                developmental disability authority, as 
                applicable, promptly after a significant change 
                in the physical or mental condition of a 
                resident who is mentally ill or mentally 
                retarded.
            ``(4) Provision of services and activities.--
                    ``(A) In general.--To the extent needed to 
                fulfill all plans of care described in 
                paragraph (2), a nursing facility must provide 
                (or arrange for the provision of)--
                            ``(i) nursing and related services 
                        and specialized rehabilitative 
                        services;
                            ``(ii) medically-related social 
                        services to attain or maintain the 
                        highest practicable physical, mental, 
                        and psychosocial well-being of 
                        residents;
                            ``(iii) pharmaceutical services 
                        (including procedures that assure the 
                        accurate acquiring, receiving, 
                        dispensing, and administering of all 
                        drugs and biologicals) to meet the 
                        needs of residents;
                            ``(iv) dietary services that assure 
                        that the meals meet the daily 
                        nutritional and special dietary needs 
                        of residents;
                            ``(v) an on-going program, directed 
                        by a qualified professional, of 
                        activities designed to meet the 
                        interests and the physical, mental, and 
                        psychosocial well-being of residents; 
                        and
                            ``(vi) routine dental services (to 
                        the extent covered under the State 
                        MediGrant plan) and emergency dental 
                        services to meet the needs of 
                        residents.
                The services provided or arranged by the 
                facility must meet professional standards of 
                quality.
                    ``(B) Qualified persons providing 
                services.--Services described in clauses (i), 
                (ii), (iii), (iv), and (vi) of subparagraph (A) 
                must be provided by qualified persons in 
                accordance with each resident's written plan of 
                care.
                    ``(C) Required nursing care; facility 
                waivers.--
                            ``(i) General requirements.--A 
                        nursing facility--
                                    ``(I) except as provided in 
                                clause (ii), must provide 24-
                                hour licensed nursing services 
                                which are sufficient to meet 
                                the nursing needs of its 
                                residents, and
                                    ``(II) except as provided 
                                in clause (ii), must use the 
                                services of a registered 
                                professional nurse for at least 
                                8 consecutive hours a day, 7 
                                days a week.
                            ``(ii) Waiver by state.--To the 
                        extent that a facility is unable to 
                        meet the requirements of clause (i), a 
                        State may waive such requirements with 
                        respect to the facility if--
                                    ``(I) the facility 
                                demonstrates to the 
                                satisfaction of the State that 
                                the facility has been unable, 
                                despite diligent efforts 
                                (including offering wages at 
                                the community prevailing rate 
                                for nursing facilities), to 
                                recruit appropriate personnel,
                                    ``(II) the State determines 
                                that a waiver of the 
                                requirement will not endanger 
                                the health or safety of 
                                individuals stayin