[Congressional Bills 104th Congress]
[From the U.S. Government Printing Office]
[H.R. 3666 Enrolled Bill (ENR)]
H.R.3666
One Hundred Fourth Congress
of the
United States of America
AT THE SECOND SESSION
Begun and held at the City of Washington on Wednesday,
the third day of January, one thousand nine hundred and ninety-six
An Act
Making appropriations for the Departments of Veterans Affairs and
Housing and Urban Development, and for sundry independent agencies,
boards, commissions, corporations, and offices for the fiscal year
ending September 30, 1997, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, That the following sums
are appropriated, out of any money in the Treasury not otherwise
appropriated, for the Departments of Veterans Affairs and Housing and
Urban Development, and for sundry independent agencies, boards,
commissions, corporations, and offices for the fiscal year ending
September 30, 1997, and for other purposes, namely:
TITLE I
DEPARTMENT OF VETERANS AFFAIRS
Veterans Benefits Administration
compensation and pensions
(including transfers of funds)
For the payment of compensation benefits to or on behalf of
veterans as authorized by law (38 U.S.C. 107, chapters 11, 13, 51, 53,
55, and 61); pension benefits to or on behalf of veterans as authorized
by law (38 U.S.C. chapters 15, 51, 53, 55, and 61; 92 Stat. 2508); and
burial benefits, emergency and other officers' retirement pay,
adjusted-service credits and certificates, payment of premiums due on
commercial life insurance policies guaranteed under the provisions of
Article IV of the Soldiers' and Sailors' Civil Relief Act of 1940, as
amended, and for other benefits as authorized by law (38 U.S.C. 107,
1312, 1977, and 2106, chapters 23, 51, 53, 55, and 61; 50 U.S.C. App.
540-548; 43 Stat. 122, 123; 45 Stat. 735; 76 Stat. 1198);
$18,671,259,000, to remain available until expended: Provided, That not
to exceed $26,417,000 of the amount appropriated shall be reimbursed to
``General operating expenses'' and ``Medical care'' for necessary
expenses in implementing those provisions authorized in the Omnibus
Budget Reconciliation Act of 1990, and in the Veterans' Benefits Act of
1992 (38 U.S.C. chapters 51, 53, and 55), the funding source for which
is specifically provided as the ``Compensation and pensions''
appropriation: Provided further, That such sums as may be earned on an
actual qualifying patient basis, shall be reimbursed to ``Medical
facilities revolving fund'' to augment the funding of individual
medical facilities for nursing home care provided to pensioners as
authorized by the Veterans' Benefits Act of 1992 (38 U.S.C. chapter
55).
readjustment benefits
For the payment of readjustment and rehabilitation benefits to or
on behalf of veterans as authorized by 38 U.S.C. chapters 21, 30, 31,
34, 35, 36, 39, 51, 53, 55, and 61, $1,377,000,000, to remain available
until expended: Provided, That funds shall be available to pay any
court order, court award or any compromise settlement arising from
litigation involving the vocational training program authorized by
section 18 of Public Law 98-77, as amended.
veterans insurance and indemnities
For military and naval insurance, national service life insurance,
servicemen's indemnities, service-disabled veterans insurance, and
veterans mortgage life insurance as authorized by 38 U.S.C. chapter 19;
70 Stat. 887; 72 Stat. 487, $38,970,000, to remain available until
expended.
guaranty and indemnity program account
(including transfer of funds)
For the cost of direct and guaranteed loans, such sums as may be
necessary to carry out the program, as authorized by 38 U.S.C. chapter
37, as amended: Provided, That such costs, including the cost of
modifying such loans, shall be as defined in section 502 of the
Congressional Budget Act of 1974, as amended.
In addition, for administrative expenses to carry out the direct
and guaranteed loan programs, $105,226,000, which may be transferred to
and merged with the appropriation for ``General operating expenses''.
loan guaranty program account
(including transfer of funds)
For the cost of direct and guaranteed loans, such sums as may be
necessary to carry out the program, as authorized by 38 U.S.C. chapter
37, as amended: Provided, That such costs, including the cost of
modifying such loans, shall be as defined in section 502 of the
Congressional Budget Act of 1974, as amended.
In addition, for administrative expenses to carry out the direct
and guaranteed loan programs, $33,810,000, which may be transferred to
and merged with the appropriation for ``General operating expenses''.
direct loan program account
(including transfer of funds)
For the cost of direct loans, such sums as may be necessary to
carry out the program, as authorized by 38 U.S.C. chapter 37, as
amended: Provided, That such costs, including the cost of modifying
such loans, shall be as defined in section 502 of the Congressional
Budget Act of 1974, as amended: Provided further, That during 1997,
within the resources available, not to exceed $300,000 in gross
obligations for direct loans are authorized for specially adapted
housing loans.
In addition, for administrative expenses to carry out the direct
loan program, $80,000, which may be transferred to and merged with the
appropriation for ``General operating expenses''.
education loan fund program account
(including transfer of funds)
For the cost of direct loans, $1,000, as authorized by 38 U.S.C.
3698, as amended: Provided, That such costs, including the cost of
modifying such loans, shall be as defined in section 502 of the
Congressional Budget Act of 1974, as amended: Provided further, That
these funds are available to subsidize gross obligations for the
principal amount of direct loans not to exceed $3,000.
In addition, for administrative expenses necessary to carry out the
direct loan program, $195,000, which may be transferred to and merged
with the appropriation for ``General operating expenses''.
vocational rehabilitation loans program account
(including transfer of funds)
For the cost of direct loans, $49,000, as authorized by 38 U.S.C.
chapter 31, as amended: Provided, That such costs, including the cost
of modifying such loans, shall be as defined in section 502 of the
Congressional Budget Act of 1974, as amended: Provided further, That
these funds are available to subsidize gross obligations for the
principal amount of direct loans not to exceed $2,822,000.
In addition, for administrative expenses necessary to carry out the
direct loan program, $377,000, which may be transferred to and merged
with the appropriation for ``General operating expenses''.
native american veteran housing loan program account
(including transfer of funds)
For administrative expenses to carry out the direct loan program
authorized by 38 U.S.C. chapter 37, subchapter V, as amended, $205,000,
which may be transferred to and merged with the appropriation for
``General operating expenses''.
Veterans Health Administration
medical care
For necessary expenses for the maintenance and operation of
hospitals, nursing homes, and domiciliary facilities; for furnishing,
as authorized by law, inpatient and outpatient care and treatment to
beneficiaries of the Department of Veterans Affairs, including care and
treatment in facilities not under the jurisdiction of the Department;
and furnishing recreational facilities, supplies, and equipment;
funeral, burial, and other expenses incidental thereto for
beneficiaries receiving care in the Department; administrative expenses
in support of planning, design, project management, real property
acquisition and disposition, construction and renovation of any
facility under the jurisdiction or for the use of the Department;
oversight, engineering and architectural activities not charged to
project cost; repairing, altering, improving or providing facilities in
the several hospitals and homes under the jurisdiction of the
Department, not otherwise provided for, either by contract or by the
hire of temporary employees and purchase of materials; uniforms or
allowances therefor, as authorized by 5 U.S.C. 5901-5902; aid to State
homes as authorized by 38 U.S.C. 1741; and not to exceed $8,000,000 to
fund cost comparison studies as referred to in 38 U.S.C. 8110(a)(5);
$17,008,447,000, plus reimbursements: Provided, That of the funds made
available under this heading, $700,000,000 is for the equipment and
land and structures object classifications only, which amount shall not
become available for obligation until August 1, 1997, and shall remain
available until September 30, 1998.
medical and prosthetic research
For necessary expenses in carrying out programs of medical and
prosthetic research and development as authorized by 38 U.S.C. chapter
73, to remain available until September 30, 1998, $262,000,000, plus
reimbursements.
medical administration and miscellaneous operating expenses
For necessary expenses in the administration of medical, hospital,
nursing home, domiciliary, construction, supply, and research
activities, as authorized by law; administrative expenses in support of
planning, design, project management, architectural, engineering, real
property acquisition and disposition, construction and renovation of
any facility under the jurisdiction or for the use of the Department of
Veterans Affairs, including site acquisition; engineering and
architectural activities not charged to project cost; and research and
development in building construction technology; $61,207,000, plus
reimbursements.
transitional housing loan program
(including transfer of funds)
For the cost of direct loans, $7,000, as authorized by Public Law
102-54, section 8, which shall be transferred from the ``General post
fund'': Provided, That such costs, including the cost of modifying such
loans, shall be as defined in section 502 of the Congressional Budget
Act of 1974, as amended: Provided further, That these funds are
available to subsidize gross obligations for the principal amount of
direct loans not to exceed $70,000.
In addition, for administrative expenses to carry out the direct
loan program, $54,000, which shall be transferred from the ``General
post fund'', as authorized by Public Law 102-54, section 8.
Departmental Administration
general operating expenses
For necessary operating expenses of the Department of Veterans
Affairs, not otherwise provided for, including uniforms or allowances
therefor; not to exceed $25,000 for official reception and
representation expenses; hire of passenger motor vehicles; and
reimbursement of the General Services Administration for security guard
services, and the Department of Defense for the cost of overseas
employee mail; $827,584,000: Provided, That during fiscal year 1997,
notwithstanding any other provision of law, the number of individuals
employed by the Department of Veterans Affairs (1) in other than
``career appointee'' positions in the Senior Executive Service shall
not exceed 6, and (2) in schedule C positions shall not exceed 11:
Provided further, That funds under this heading shall be available to
administer the Service Members Occupational Conversion and Training
Act.
national cemetery system
For necessary expenses for the maintenance and operation of the
National Cemetery System, not otherwise provided for, including
uniforms or allowances therefor; cemeterial expenses as authorized by
law; purchase of two passenger motor vehicles for use in cemeterial
operations; and hire of passenger motor vehicles, $76,864,000.
office of inspector general
For necessary expenses of the Office of Inspector General in
carrying out the Inspector General Act of 1978, as amended,
$30,900,000.
construction, major projects
For constructing, altering, extending and improving any of the
facilities under the jurisdiction or for the use of the Department of
Veterans Affairs, or for any of the purposes set forth in sections 316,
2404, 2406, 8102, 8103, 8106, 8108, 8109, 8110, and 8122 of title 38,
United States Code, including planning, architectural and engineering
services, maintenance or guarantee period services costs associated
with equipment guarantees provided under the project, services of
claims analysts, offsite utility and storm drainage system construction
costs, and site acquisition, where the estimated cost of a project is
$3,000,000 or more or where funds for a project were made available in
a previous major project appropriation, $250,858,000, of which
$32,100,000 shall be for the replacement hospital at Travis Air Force
Base, Fairfield, California, and shall not be released for obligation
prior to January 1, 1998, unless action is taken by the Congress
specifically making such funds available, and all funds appropriated
under the above heading are to remain available until expended:
Provided, That except for advance planning of projects funded through
the advance planning fund and the design of projects funded through the
design fund, none of these funds shall be used for any project which
has not been considered and approved by the Congress in the budgetary
process: Provided further, That funds provided in this appropriation
for fiscal year 1997, for each approved project shall be obligated (1)
by the awarding of a construction documents contract by September 30,
1997, and (2) by the awarding of a construction contract by September
30, 1998: Provided further, That the Secretary shall promptly report in
writing to the Comptroller General and to the Committees on
Appropriations any approved major construction project in which
obligations are not incurred within the time limitations established
above; and the Comptroller General shall review the report in
accordance with the procedures established by section 1015 of the
Impoundment Control Act of 1974 (title X of Public Law 93-344):
Provided further, That no funds from any other account except the
``Parking revolving fund'', may be obligated for constructing,
altering, extending, or improving a project which was approved in the
budget process and funded in this account until one year after
substantial completion and beneficial occupancy by the Department of
Veterans Affairs of the project or any part thereof with respect to
that part only.
construction, minor projects
For constructing, altering, extending, and improving any of the
facilities under the jurisdiction or for the use of the Department of
Veterans Affairs, including planning, architectural and engineering
services, maintenance or guarantee period services costs associated
with equipment guarantees provided under the project, services of
claims analysts, offsite utility and storm drainage system construction
costs, and site acquisition, or for any of the purposes set forth in
sections 316, 2404, 2406, 8102, 8103, 8106, 8108, 8109, 8110, and 8122
of title 38, United States Code, where the estimated cost of a project
is less than $3,000,000; $175,000,000, to remain available until
expended, along with unobligated balances of previous ``Construction,
minor projects'' appropriations which are hereby made available for any
project where the estimated cost is less than $3,000,000: Provided,
That funds in this account shall be available for (1) repairs to any of
the nonmedical facilities under the jurisdiction or for the use of the
Department which are necessary because of loss or damage caused by any
natural disaster or catastrophe, and (2) temporary measures necessary
to prevent or to minimize further loss by such causes.
parking revolving fund
For the parking revolving fund as authorized by 38 U.S.C. 8109,
$12,300,000, together with income from fees collected, to remain
available until expended, which shall be available for all authorized
expenses except operations and maintenance costs, which will be funded
from ``Medical care''.
grants for construction of state extended care facilities
For grants to assist States to acquire or construct State nursing
home and domiciliary facilities and to remodel, modify or alter
existing hospital, nursing home and domiciliary facilities in State
homes, for furnishing care to veterans as authorized by 38 U.S.C. 8131-
8137, $47,397,000, to remain available until expended.
grants for the construction of state veterans cemeteries
For grants to aid States in establishing, expanding, or improving
State veteran cemeteries as authorized by 38 U.S.C. 2408, $1,000,000,
to remain available until expended.
franchise fund
(including transfer of funds)
There is hereby established in the Treasury a franchise fund pilot,
as authorized by section 403 of Public Law 103-356, to be available as
provided in such section for expenses and equipment necessary for the
maintenance and operation of such administrative services as the
Secretary determines may be performed more advantageously as central
services: Provided, That any inventories, equipment and other assets
pertaining to the services to be provided by the franchise fund, either
on hand or on order, less the related liabilities or unpaid
obligations, and any appropriations made hereafter for the purpose of
providing capital, shall be used to capitalize the franchise fund:
Provided further, That the franchise fund may be paid in advance from
funds available to the Department and other Federal agencies for which
such centralized services are performed, at rates which will return in
full all expenses of operation, including accrued leave, depreciation
of fund plant and equipment, amortization of automated data processing
(ADP) software and systems (either acquired or donated), and an amount
necessary to maintain a reasonable operating reserve, as determined by
the Secretary: Provided further, That the franchise fund shall provide
services on a competitive basis: Provided further, That an amount not
to exceed four percent of the total annual income to such fund may be
retained in the fund for fiscal year 1997 and each fiscal year
thereafter, to remain available until expended, to be used for the
acquisition of capital equipment and for the improvement and
implementation of Departmental financial management, ADP, and other
support systems: Provided further, That no later than thirty days after
the end of each fiscal year amounts in excess of this reserve
limitation shall be transferred to the Treasury: Provided further, That
such franchise fund pilot shall terminate pursuant to section 403(f) of
Public Law 103-356.
administrative provisions
(including transfer of funds)

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pensions'', ``Readjustment benefits'', and ``Veterans insurance and
indemnities'' may be transferred to any other of the mentioned
appropriations.

d6694a21d13eaf66ee31b1e6ac34faf1f31d2a1fde956ff62c6b65bebc6ced2e

Affairs for 1997 for salaries and expenses shall be available for
services authorized by 5 U.S.C. 3109.

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Veterans Affairs (except the appropriations for ``Construction, major
projects'', ``Construction, minor projects'', and the ``Parking
revolving fund'') shall be available for the purchase of any site for
or toward the construction of any new hospital or home.

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Veterans Affairs shall be available for hospitalization or examination
of any persons (except beneficiaries entitled under the laws bestowing
such benefits to veterans, and persons receiving such treatment under 5
U.S.C. 7901-7904 or 42 U.S.C. 5141-5204), unless reimbursement of cost
is made to the ``Medical care'' account at such rates as may be fixed
by the Secretary of Veterans Affairs.

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Affairs for fiscal year 1997 for ``Compensation and pensions'',
``Readjustment benefits'', and ``Veterans insurance and indemnities''
shall be available for payment of prior year accrued obligations
required to be recorded by law against the corresponding prior year
accounts within the last quarter of fiscal year 1996.

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Veterans Affairs for fiscal year 1997 shall be available to pay prior
year obligations of corresponding prior year appropriations accounts
resulting from title X of the Competitive Equality Banking Act, Public
Law 100-86, except that if such obligations are from trust fund
accounts they shall be payable from ``Compensation and pensions''.

006d684e2107ca68aa036f6e7efce321506e485a863298298b3b0bd78eb9fcf0

year 1997, the Secretary of Veterans Affairs shall, from the National
Service Life Insurance Fund (38 U.S.C. 1920), the Veterans' Special
Life Insurance Fund (38 U.S.C. 1923), and the United States Government
Life Insurance Fund (38 U.S.C. 1955), reimburse the ``General operating
expenses'' account for the cost of administration of the insurance
programs financed through those accounts: Provided, That reimbursement
shall be made only from the surplus earnings accumulated in an
insurance program in fiscal year 1997, that are available for dividends
in that program after claims have been paid and actuarially determined
reserves have been set aside: Provided further, That if the cost of
administration of an insurance program exceeds the amount of surplus
earnings accumulated in that program, reimbursement shall be made only
to the extent of such surplus earnings: Provided further, That the
Secretary shall determine the cost of administration for fiscal year
1997, which is properly allocable to the provision of each insurance
program and to the provision of any total disability income insurance
included in such insurance program.

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Section 201(a)(2) of the Departments of Veterans Affairs and Housing
and Urban Development, and Independent Agencies Appropriations Act,
1996 is amended by striking ``1996'' and inserting ``1997''.
(b) One-for-One Replacement of Public and Indian Housing.--Section
1002(d) of Public Law 104-19 is amended by striking ``before September
30, 1996'' and inserting ``on or before September 30, 1997''.
(c) Public and Assisted Housing Rents, Income Adjustments, and
Preferences.--(1)(A) Section 402(a) of The Balanced Budget Downpayment
Act, I is amended--
(i) by striking ``effective for fiscal year 1996 and no later
than October 30, 1995'' and inserting ``and subsection (f) of this
section, effective for fiscal year 1997'';
(ii) in paragraphs (1), (2), and (4), by striking ``not less
than $25, and may require a minimum monthly rent of''; and
(iii) in paragraph (3), by striking ``not less than $25 for the
unit, and may require a minimum monthly rent of''.
(B) Section 230 of Public Law 104-134 is hereby repealed.
(2) Section 402(f) of The Balanced Budget Downpayment Act, I is
amended by striking ``fiscal year 1996'' and inserting ``fiscal years
1996 and 1997''.
(d) Applicability to IHAs.--In accordance with section 201(b)(2) of
the United States Housing Act of 1937, the amendments made by
subsections (a), (b), and (c) shall apply to public housing developed
or operated pursuant to a contract between the Secretary of Housing and
Urban Development and an Indian housing authority.
(e) Streamlining Section 8 Tenant-Based Assistance.--Section 203(d)
of the Departments of Veterans Affairs and Housing and Urban
Development, and Independent Agencies Appropriations Act, 1996 is
amended by striking ``fiscal year 1996'' and inserting ``fiscal years
1996 and 1997''.
(f) Section 8 Fair Market Rentals and Delay in Reissuance.--(1) The
first sentence of section 403(a) of the Balanced Budget Downpayment
Act, I, is amended by striking ``1996'' and inserting ``1997''.
(2) Section 403(c) of such Act is amended--
(A) by striking ``fiscal year 1996'' and inserting ``fiscal
years 1996 and 1997''; and
(B) by inserting before the semicolon the following: ``for
assistance made available during fiscal year 1996 and October 1,
1997 for assistance made available during fiscal year 1997''.
(g) Section 8 Rent Adjustments.--Section 8(c)(2)(A) of the United
States Housing Act of 1937 is amended--
(1) in the third sentence by inserting ``, fiscal year 1996
prior to April 26, 1996, and fiscal year 1997'' after ``1995'';
(2) in the fourth sentence, by striking ``For'' and inserting
``Except for assistance under the certificate program, for'';
(3) after the fourth sentence, by inserting the following new
sentence: ``In the case of assistance under the certificate
program, 0.01 shall be subtracted from the amount of the annual
adjustment factor (except that the factor shall not be reduced to
less than 1.0), and the adjusted rent shall not exceed the rent for
a comparable unassisted unit of similar quality, type, and age in
the market area.''; and
(4) in the last sentence, by--
(A) striking ``sentence'' and inserting ``two sentences'';
and
(B) inserting ``, fiscal year 1996 prior to April 26, 1996,
and fiscal year 1997'' after ``1995''.

b4d7409bb8feb08c20604f8a9b9096f9a890394813c1a8bd215c13b08d3d11b5

United States Housing Act of 1937, as amended--
(a) The Secretary shall establish fees for the cost of
administering the certificate, voucher and moderate rehabilitation
programs.
(1)(A) For fiscal year 1997, the fee for each month for which a
dwelling unit is covered by an assistance contract shall be 7.5
percent of the base amount, adjusted as provided herein, in the
case of an agency that, on an annual basis, is administering a
program of no more than 600 units, and 7 percent of the base
amount, adjusted as provided herein, for each additional unit above
600.
(B) The base amount shall be the higher of--
(i) the fair market rental for fiscal year 1993 for a 2-
bedroom existing rental dwelling unit in the market area of the
agency; and
(ii) such fair market rental for fiscal year 1994, but not
more than 103.5 percent of the amount determined under clause
(i).
(C) The base amount shall be adjusted to reflect changes in the
wage data or other objectively measurable data that reflect the
costs of administering the program during fiscal year 1996; except
that the Secretary may require that the base amount be not less
than a minimum amount and not more than a maximum amount.
(2) For subsequent fiscal years, the Secretary shall publish a
notice in the Federal Register, for each geographic area,
establishing the amount of the fee that would apply for the
agencies administering the program, based on changes in wage data
or other objectively measurable data that reflect the cost of
administering the program, as determined by the Secretary.
(3) The Secretary may increase the fee if necessary to reflect
higher costs of administering small programs and programs operating
over large geographic areas.
(4) The Secretary may decrease the fee for PHA-owned units.
(b) Beginning in fiscal year 1997 and thereafter, the Secretary
shall also establish reasonable fees (as determined by the Secretary)
for--
(1) the costs of preliminary expenses, in the amount of $500,
for a public housing agency, but only in the first year it
administers a tenant-based assistance program under the United
States Housing Act of 1937 and only if, immediately before the
effective date of this Act, it was not administering a tenant-based
assistance program under the 1937 Act (as in effect immediately
before the effective date of this Act), in connection with its
initial increment of assistance received;
(2) the costs incurred in assisting families who experience
difficulty (as determined by the Secretary) in obtaining
appropriate housing under the program; and
(3) extraordinary costs approved by the Secretary.

5d6a3d80631140a88faa6550d9304f2fcb3d479a99555ffe55d5ef6d32d0a815

Balanced Budget Downpayment Act, I (12 U.S.C. 1710 note), is amended by
striking ``October 1, 1996'' and inserting ``October 1, 1997''.

008a5b9fd57d28cca71357c7683e22d3d2c2ead82edc34475f1c81aa6e79e4b7

years thereafter, the Secretary may manage and dispose of multifamily
properties owned by the Secretary and multifamily mortgages held by the
Secretary on such terms and conditions as the Secretary may determine,
notwithstanding any other provision of law.

dfa6e6d54d5099d82d6f88ccd3696838635910a342766fd557bc418be4c08e59

$20,000,000 of amounts of unobligated balances that are or become
available from the Nehemiah Housing Opportunity Grant program, repealed
under section 289(b) of the Cranston-Gonzalez National Affordable
Housing Act, Public Law 101-625, shall be available for use for
activities relating to promotion and implementation of homeownership in
targeted geographic areas, as determined by the Secretary. Any grant or
assistance made under this section shall be made in accordance with
section 102 of the Department of Housing and Urban Development Reform
Act of 1989 on a competitive basis.

b7c59da8cad7fb1555deb8f7cb3fef0cf7e9be58bf0c3365a37b75fe38f81f19

Development shall cancel the indebtedness of the Greene County Rural
Health Center relating to a loan received under the Public Facility
Loan program to establish the health center (Loan #Mis-22-PFL0096). The
Greene County Rural Health Center is hereby relieved of all liability
to the Federal Government for such loan and any fees and charges
payable in connection with such loan.

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section 236(g) of the National Housing Act, as amended, all uncommitted
balances of excess rental charges as of September 30, 1996, and any
collection during fiscal year 1997, shall be transferred, as authorized
under such section, to the fund authorized under section 201(j) of the
Housing and Community Development Amendments of 1978, as amended.

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applicable to the maximum payments that may be required in any fiscal
year by all contracts entered into under section 236 of the National
Housing Act (12 U.S.C. 1715z-1) is reduced in fiscal year 1997 by not
more than $2,000,000 in uncommitted balances of authorizations provided
for this purpose in appropriations Acts.

34b3e9b1ab89e1b53e6f6f65cf9f22dfc1fe7cb5343baa879881f1a0436d65a2

provisions of section 14(k)(5)(D) of the United States Housing Act of
1937, the withheld modernization funds that became credited in fiscal
years 1993, 1994, and 1995, due to the troubled status of the former
Department of Public and Assisted Housing of the District of Columbia,
shall be made available without diminution to its successor, the
District of Columbia Housing Authority, at such time between the
effective date of this Act and the end of fiscal year 1998 as the
District of Columbia Housing Authority is no longer deemed ``mod-
troubled'' under section 6(j)(2)(A)(i) of such Act; after fiscal year
1998, the District of Columbia Housing Authority shall become subject
to the provisions of section 14(k)(5)(D) of such Act should it remain
mod-troubled.

af062dc080773d0be16679e8d082284b100ef210faea11b0cd0adc8952b1d8d9

the amounts of budget authority, or in lieu thereof 50 per centum of
the cash amounts associated with such budget authority, that are
recaptured from projects described in section 1012(a) of the Stewart B.
McKinney Homeless Assistance Amendments Act of 1988 (Public Law 100-
628, 102 Stat. 3224, 3268) shall be rescinded, or in the case of cash,
shall be remitted to the Treasury, and such amounts of budget authority
or cash recaptured and not rescinded or remitted to the Treasury shall
be used by State housing finance agencies or local governments or local
housing agencies with projects approved by the Secretary of Housing and
Urban Development for which settlement occurred after January 1, 1992,
in accordance with such section.
(b) In addition to amounts otherwise provided by this Act, $464,442
is appropriated to the Department of Housing and Urban Development for
payment to the Utah Housing Finance Agency, in lieu of amounts lost to
such agency in bond refinancings during 1994, for its use in accordance
with subsection (a).

70af514b2a9abfdd62ebcfd75e5c44add29109ed95bb29192d46ea3cacb3c036

For purposes of this section--
(1) the term ``expiring contract'' means a contract for
project-based assistance under section 8 of the United States
Housing Act of 1937 that expires during fiscal year 1997;
(2) the term ``family'' has the same meaning as in section 3(b)
of the United States Housing Act of 1937;
(3) the term ``multifamily housing project'' means a property
consisting of more than 4 dwelling units that is covered in whole
or in part by a contract for project-based assistance under section
8 of the United States Housing Act of 1937;
(4) the term ``owner'' has the same meaning as in section 8(f)
of the United States Housing Act of 1937;
(5) the term ``project-based assistance'' means rental
assistance under section 8 of the United States Housing Act of 1937
that is attached to a multifamily housing project;
(6) the term ``public agency'' means a State housing finance
agency, a local housing agency, or other agency with a public
purpose and status;
(7) the term ``Secretary'' means the Secretary of Housing and
Urban Development; and
(8) the term ``tenant-based assistance'' has the same meaning
as in section 8(f) of the United States Housing Act of 1937.
(b) Section 8 Contract Renewal Authority.--
(1) In general.--Notwithstanding section 405(a) of the Balanced
Budget Downpayment Act, I, upon the request of the owner of a
multifamily housing project that is covered by an expiring
contract, the Secretary shall use amounts made available for the
renewal of assistance under section 8 of the United States Housing
Act of 1937 to renew the expiring contract as project-based
assistance for a period of not more than one year, at rent levels
that are equal to those under the expiring contract as of the date
on which the contract expires: Provided, That those rent levels do
not exceed 120 percent of the fair market rent for the market area
in which the project is located. For an FHA-insured multifamily
housing project with an expiring contract at rent levels that
exceed 120 percent of the fair market rent for the market area, the
Secretary shall provide, at the request of the owner, section 8
project-based assistance, for a period of not more than one year,
at rent levels that do not exceed 120 percent of the fair market
rent.
(2) Exemption for state and local housing agency projects.--
Notwithstanding paragraph (1), upon the expiration of a contract
with rent levels that exceed the percentage described in that
paragraph, if the Secretary determines that the primary financing
or mortgage insurance for the multifamily housing project that is
covered by that expiring contract was provided by a public agency,
the Secretary shall, at the request of the owner and the public
agency, renew the expiring contract--
(A) for a period of not more than one year; and
(B) at rent levels that are equal to those under the
expiring contract as of the date on which the contract expires.
(3) Section 202, section 811, and section 515 projects.--
Notwithstanding paragraph (1), for section 202 projects, section
811 projects and section 515 projects, upon the expiration of a
section 8 contract, the Secretary shall, at the request of the
owner, renew the expiring contract--
(A) for a period of not more than one year; and
(B) at rent levels that are equal to those under the
expiring contract as of the date on which the contract expires.
(4) Other contracts.--
(A) Participation in demonstration.--For a contract
covering an FHA-insured multifamily housing project that
expires during fiscal year 1997 with rent levels that exceed
the percentage described in paragraph (1) and after notice to
the tenants, the Secretary shall, at the request of the owner
of the project and after notice to the tenants, include that
multifamily housing project in the demonstration program under
section 212 of this Act. The Secretary shall ensure that a
multifamily housing project with an expiring contract in fiscal
year 1997 shall be allowed to be included in the demonstration.
(B) Effect of material adverse actions and omissions.--
Notwithstanding paragraph (1) or any other provision of law,
the Secretary shall not renew an expiring contract if the
Secretary determines that the owner of the multifamily housing
project has engaged in material adverse financial or managerial
actions or omissions with regard to the project (or with regard
to other similar projects if the Secretary determines that such
actions or omissions constitute a pattern of mismanagement that
would warrant suspension or debarment by the Secretary).
(C) Transfer of property.--For properties disqualified from
the demonstration program because of actions by an owner or
purchaser in accordance with subparagraph (B), the Secretary
shall establish procedures to facilitate the voluntary sale or
transfer of the property, with a preference for tenant
organizations and tenant-endorsed community-based nonprofit and
public agency purchasers meeting such reasonable qualifications
as may be established by the Secretary. The Secretary may
include the transfer of section 8 project-based assistance.
(5) Tenant protections.--Any family residing in an assisted
unit in a multifamily housing project that is covered by an
expiring contract that is not renewed, shall be offered tenant-
based assistance before the date on which the contract expires or
is not renewed.

cb669217034e10bcd0c56001f0bf37a36735aa6398f604ae393632cf5618fec4

General.--
(1) Repeal.--
(A) In general.--Section 210 of the Departments of Veterans
Affairs and Housing and Urban Development and Independent
Agencies Appropriations Act, 1996 (110 Stat. 1321) is repealed.
(B) Exception.--Notwithstanding the repeal under
subparagraph (A), amounts made available under section 210(f)
the Departments of Veterans Affairs and Housing and Urban
Development and Independent Agencies Appropriations Act, 1996
shall remain available for the demonstration program under this
section through the end of fiscal year 1997.
(2) Savings provisions.--Nothing in this section shall be
construed to affect any commitment entered into before the date of
enactment of this Act under the demonstration program under section
210 of the Departments of Veterans Affairs and Housing and Urban
Development and Independent Agencies Appropriations Act, 1996.
(3) Definitions.--For purposes of this section--
(A) the term ``demonstration program'' means the program
established under subsection (b);
(B) the term ``expiring contract'' means a contract for
project-based assistance under section 8 of the United States
Housing Act of 1937 that expires during fiscal year 1997;
(C) the term ``family'' has the same meaning as in section
3(b) of the United States Housing Act of 1937;
(D) the term ``multifamily housing project'' means a
property consisting of more than 4 dwelling units that is
covered in whole or in part by a contract for project-based
assistance;
(E) the term ``owner'' has the same meaning as in section
8(f) of the United States Housing Act of 1937;
(F) the term ``project-based assistance'' means rental
assistance under section 8 of the United States Housing Act of
1937 that is attached to a multifamily housing project;
(G) the term ``Secretary'' means the Secretary of Housing
and Urban Development; and
(H) the term ``tenant-based assistance'' has the same
meaning as in section 8(f) of the United States Housing Act of
1937.
(b) Demonstration Authority.--
(1) In general.--Subject to the funding limitation in
subsection (l), the Secretary shall administer a demonstration
program with respect to multifamily projects--
(A) whose owners agree to participate;
(B) with rents on units assisted under section 8 of the
United States Housing Act of 1937 that are, in the aggregate,
in excess of 120 percent of the fair market rent of the market
area in which the project is located; and
(C) the mortgages of which are insured under the National
Housing Act.
(2) Purpose.--The demonstration program shall be designed to
obtain as much information as is feasible on the economic viability
and rehabilitation needs of the multifamily housing projects in the
demonstration, to test various approaches for restructuring
mortgages to reduce the financial risk to the FHA Insurance Fund
while reducing the cost of section 8 subsidies, and to test the
feasibility and desirability of--
(A) ensuring, to the maximum extent practicable, that the
debt service and operating expenses, including adequate
reserves, attributable to such multifamily projects can be
supported at the comparable market rent with or without
mortgage insurance under the National Housing Act and with or
without additional section 8 rental subsidies;
(B) utilizing section 8 rental assistance, while taking
into account the capital needs of the projects and the need for
adequate rental assistance to support the low- and very low-
income families residing in such projects; and
(C) preserving low-income rental housing affordability and
availability while reducing the long-term cost of section 8
rental assistance.
(c) Goals.--
(1) In general.--The Secretary shall carry out the
demonstration program in a manner that will protect the financial
interests of the Federal Government through debt restructuring and
subsidy reduction and, in the least costly fashion, address the
goals of--
(A) maintaining existing affordable housing stock in a
decent, safe, and sanitary condition;
(B) minimizing the involuntary displacement of tenants;
(C) taking into account housing market conditions;
(D) encouraging responsible ownership and management of
property;
(E) minimizing any adverse income tax impact on property
owners; and
(F) minimizing any adverse impacts on residential
neighborhoods and local communities.
(2) Balance of competing goals.--In determining the manner in
which a mortgage is to be restructured or a subsidy reduced under
this subsection, the Secretary may balance competing goals relating
to individual projects in a manner that will further the purposes
of this section.
(d) Participation Arrangements.--
(1) In general.--In carrying out the demonstration program, the
Secretary may enter into participation arrangements with designees,
under which the Secretary may provide for the assumption by
designees (by delegation, by contract, or otherwise) of some or all
of the functions, obligations, responsibilities and benefits of the
Secretary.
(2) Designees.--In entering into any arrangement under this
subsection, the Secretary shall select state housing finance
agencies, housing agencies or nonprofits (separately or in
conjunction with each other) to act as designees to the extent such
agencies are determined to be qualified by the Secretary. In
locations where there is no qualified State housing finance agency,
housing agency or nonprofit to act as a designee, the Secretary may
act as a designee. Each participation arrangement entered into
under this subsection shall include a designee as the primary
partner. Any organization selected by the Secretary under this
section shall have a long-term record of service in providing low-
income housing and meet standards of fiscal responsibility, as
determined by the Secretary.
(3) Designee partnerships.--For purposes of any participation
arrangement under this subsection, designees are encouraged to
develop partnerships with each other, and to contract or
subcontract with other entities, including--
(A) public housing agencies;
(B) financial institutions;
(C) mortgage servicers;
(D) nonprofit and for-profit housing organizations;
(E) the Federal National Mortgage Association;
(F) the Federal Home Loan Mortgage Corporation;
(G) Federal Home Loan Banks; and
(H) other State or local mortgage insurance companies or
bank lending consortia.
(e) Long-Term Affordability.--
(1) In general.--After the renewal of a section 8 contract
pursuant to a restructuring under this section, the owner shall
accept each offer to renew the section 8 contract, for a period of
20 years from the date of the renewal under the demonstration, if
the offer to renew is on terms and conditions, as agreed to by the
Secretary or designee and the owner under a restructuring.
(2) Affordability requirements.--Except as otherwise provided
by the Secretary, in exchange for any mortgage restructuring under
this section, a project shall remain affordable for a period of not
less than 20 years. Affordability requirements shall be determined
in accordance with guidelines established by the Secretary or
designee. The Secretary or designee may waive these requirements
for good cause.
(f) Procedures.--
(1) Notice of participation in demonstration.--Not later than
45 days before the date of expiration of an expiring contract (or
such later date, as determined by the Secretary, for good cause),
the owner of the multifamily housing project covered by that
expiring contract shall notify the Secretary or designee and the
residents of the owner's intent to participate in the demonstration
program.
(2) Demonstration contract.--Upon receipt of a notice under
paragraph (1), the owner and the Secretary or designee shall enter
into a demonstration contract, which shall provide for initial
section 8 project-based rents at the same rent levels as those
under the expiring contract or, if practical, the budget-based rent
to cover debt service, reasonable operating expenses (including
reasonable and appropriate services), and a reasonable return to
the owner, as determined solely by the Secretary. The demonstration
contract shall be for the minimum term necessary for the rents and
mortgages of the multifamily housing project to be restructured
under the demonstration program, but shall not be for a period of
time to exceed 180 days, unless extended for good cause by the
Secretary.
(g) Project-Based Section 8.--The Secretary shall renew all
expiring contracts under the demonstration as section 8 project-based
contracts, for a period of time not to exceed one year, unless
otherwise provided under subsection (h).
(h) Demonstration Actions.--
(1) Demonstration actions.--For purposes of carrying out the
demonstration program, and in order to ensure that contract rights
are not abrogated, subject to such third party consents as are
necessary (if any), including consent by the Government National
Mortgage Association if it owns a mortgage insured by the
Secretary, consent by an issuer under the mortgage-backed
securities program of the Association, subject to the
responsibilities of the issuer to its security holders and the
Association under such program, and consent by parties to any
contractual agreement which the Secretary proposes to modify or
discontinue, the Secretary or, except with respect to subparagraph
(B), designee, subject to the funding limitation in subsection (l),
shall take not less than one of the actions specified in
subparagraphs (G), (H), and (I) and may take any of the following
actions:
(A) Removal of restrictions.--
(i) In general.--Consistent with the purposes of this
section, subject to the agreement of the owner of the
project and after consultation with the tenants of the
project, the Secretary or designee may remove, relinquish,
extinguish, modify, or agree to the removal of any
mortgage, regulatory agreement, project-based assistance
contract, use agreement, or restriction that had been
imposed or required by the Secretary, including
restrictions on distributions of income which the Secretary
or designee determines would interfere with the ability of
the project to operate without above-market rents.
(ii) Accumulated residual receipts.--The Secretary or
designee may require an owner of a property assisted under
the section 8 new construction/substantial rehabilitation
program under the United States Housing Act of 1937 to
apply any accumulated residual receipts toward effecting
the purposes of this section.
(B) Reinsurance.--With respect to not more than 5,000 units
within the demonstration during fiscal year 1997, the Secretary
may enter into contracts to purchase reinsurance, or enter into
participations or otherwise transfer economic interest in
contracts of insurance or in the premiums paid, or due to be
paid, on such insurance, on such terms and conditions as the
Secretary may determine. Any contract entered into under this
paragraph shall require that any associated units be maintained
as low-income units for the life of the mortgage, unless waived
by the Secretary for good cause.
(C) Participation by third parties.--The Secretary or
designee may enter into such agreements, provide such
concessions, incur such costs, make such grants (including
grants to cover all or a portion of the rehabilitation costs
for a project) and other payments, and provide other valuable
consideration as may reasonably be necessary for owners,
lenders, servicers, third parties, and other entities to
participate in the demonstration program. The Secretary may
establish performance incentives for designees.
(D) Section 8 administrative fees.--Notwithstanding any
other provision of law, the Secretary may make fees available
from the section 8 contract renewal appropriation to a designee
for contract administration under section 8 of the United
States Housing Act of 1937 for purposes of any contract
restructured or renewed under the demonstration program.
(E) Full or partial payment of claim.--Notwithstanding any
other provision of law, the Secretary may make a full payment
of claim or partial payment of claim prior to default.
(F) Credit enhancement.--
(i) In general.--The Secretary or designee may provide
FHA multifamily mortgage insurance, reinsurance, or other
credit enhancement alternatives, including retaining the
existing FHA mortgage insurance on a restructured first
mortgage at market value or using the multifamily risk-
sharing mortgage programs, as provided under section 542 of
the Housing and Community Development Act of 1992. Any
limitations on the number of units available for mortgage
insurance under section 542 shall not apply to insurance
issued for purposes of the demonstration program.
(ii) Maximum percentage.--During fiscal year 1997, not
more than 25 percent of the units in multifamily housing
projects with expiring contracts in the demonstration, in
the aggregate, may be restructured without FHA insurance,
unless otherwise agreed to by the owner of a project.
(iii) Credit subsidy.--Any credit subsidy costs of
providing mortgage insurance shall be paid from amounts
made available under subsection (l).
(G) Mortgage restructuring.--
(i) In general.--The Secretary or designee may
restructure mortgages to provide a restructured first
mortgage to cover debt service and operating expenses
(including a reasonable rate of return to the owner) at the
market rent, and a second mortgage equal to the difference
between the restructured first mortgage and the mortgage
balance of the eligible multifamily housing project at the
time of restructuring.
(ii) Credit subsidy.--Any credit subsidy costs of
providing a second mortgage shall be paid from amounts made
available under subsection (l).
(H) Debt forgiveness.--The Secretary or designee, for good
cause and at the request of the owner of a multifamily housing
project, may forgive at the time of the restructuring of a
mortgage any portion of a debt on the project that exceeds the
market value of the project.
(I) Budget-based rents.--The Secretary or designee may
renew an expiring contract, including a contract for a project
in which operating costs exceed comparable market rents, for a
period of not more than one year, at a budget-based rent that
covers debt service, reasonable operating expenses (including
all reasonable and appropriate services), and a reasonable rate
of return to the owner, as determined solely by the Secretary,
provided that the contract does not exceed the rent levels
under the expiring contract. The Secretary may establish a
preference under the demonstration program for budget-based
rents for unique housing projects, such as projects designated
for occupancy by elderly families and projects in rural areas.
(J) Section 8 tenant-based assistance.--For not more than
10 percent of units in multifamily housing projects that have
had their mortgages restructured in any fiscal year under the
demonstration, the Secretary or designee may provide, with the
agreement of an owner and in consultation with the tenants of
the housing, section 8 tenant-based assistance for some or all
of the assisted units in a multifamily housing project in lieu
of section 8 project-based assistance. Section 8 tenant-based
assistance may only be provided where the Secretary determines
and certifies that there is adequate available and affordable
housing within the local area and that tenants will be able to
use the section 8 tenant-based assistance successfully.
(2) Offer and acceptance.--Notwithstanding any other provision
of law, an owner of a project in the demonstration must accept any
reasonable offer made by the Secretary or a designee under this
subsection. An owner may appeal the reasonableness of any offer to
the Secretary and the Secretary shall respond within 30 days of the
date of appeal with a final offer. If the final offer is not
acceptable, the owner may opt out of the program.
(i) Community and Tenant Input.--In carrying out this section, the
Secretary shall develop procedures to provide appropriate and timely
notice, including an opportunity for comment and timely access to all
relevant information, to officials of the unit of general local
government affected, the community in which the project is situated,
and the tenants of the project.
(j) Transfer of Property.--The Secretary shall establish procedures
to facilitate the voluntary sale or transfer of multifamily housing
projects under the demonstration to tenant organizations and tenant-
endorsed community-based nonprofit and public agency purchasers meeting
such reasonable qualifications as may be established by the Secretary.
(k) Limitation on Demonstration Authority.--The Secretary shall
carry out the demonstration program with respect to mortgages not to
exceed 50,000 units.
(l) Funding.--In addition to the $30,000,000 made available under
section 210 of the Departments of Veterans Affairs and Housing and
Urban Development and Independent Agencies Appropriations Act, 1996
(110 Stat. 1321), for the costs (including any credit subsidy costs
associated with providing direct loans or mortgage insurance) of
modifying and restructuring loans held or guaranteed by the Federal
Housing Administration, as authorized under this section, $10,000,000
is hereby appropriated, to remain available until September 30, 1998.
(m) Report to Congress.--
(1) In general.--
(A) Quarterly reports.--Not less than every 3 months, the
Secretary shall submit to the Congress a report describing and
assessing the status of the projects in the demonstration
program.
(B) Final report.--Not later than 6 months after the end of
the demonstration program, the Secretary shall submit to the
Congress a final report on the demonstration program.
(2) Contents.--Each report submitted under paragraph (1)(A)
shall include a description of--
(A) each restructuring proposal submitted by an owner of a
multifamily housing project, including a description of the
physical, financial, tenancy, and market characteristics of the
project;
(B) the Secretary's evaluation and reasons for each
multifamily housing project selected or rejected for
participation in the demonstration program;
(C) the costs to the FHA General Insurance and Special Risk
Insurance funds;
(D) the subsidy costs provided before and after
restructuring;
(E) the actions undertaken in the demonstration program,
including the third-party arrangements made; and
(F) the demonstration program's impact on the owners of the
projects, including any tax consequences.
(3) Contents of final report.--The report submitted under
paragraph (1)(B) shall include--
(A) the required contents under paragraph (2); and
(B) any findings and recommendations for legislative
action.

d17364fc77bce72cb0bb42081cab8b54e90181703c0bdeea1bc77b346e33ed86

Gonzalez National Affordable Housing Act (42 U.S.C. 12832) is amended
by adding at the end the following new sentence: ``The Secretary may
waive this section in connection with the use of funds made available
under this title on lands set aside under the Hawaiian Homes Commission
Act, 1920 (42 Stat. 108).''.

ba7ca01439ad0b4d248d1611d3043f5ef9d97f4a3b6910558e42bc7e51386905

Authority.--The Secretary may transfer recaptured section 8 amounts
from the Annual Contributions for Assisted Housing account under Public
Law 104-134 (approved April 26, 1996; 110 Stat. 1321, 1321-265) and
prior laws to the accounts and for the purposes set forth in subsection
(b). The amounts transferred under this section shall be made available
for use as prescribed under this section notwithstanding section 8(bb)
of the United States Housing Act of 1937.
(b) Receiving Accounts.--
(1) Prevention of resident displacement.--The Secretary may
transfer to the Prevention of Resident Displacement account an
amount up to $50,000,000, in addition to amounts in such account,
that may be used to extend, under existing terms and conditions,
existing project-based section 8 contracts in effect before a Plan
of Action was approved, so that these contracts expire 5 years from
the date on which funds were obligated for the Plan of Action
approved under the Low-Income Housing Preservation and Resident
Homeownership Act of 1990 or the Emergency Low Income Housing
Preservation Act of 1987. The Secretary shall transfer all amounts
that the Secretary determines to be necessary for fiscal year 1997
for the purposes of this paragraph before transferring any amounts
under any other paragraph in this subsection.
(2) HOPWA.--The Secretary may transfer to the Housing
Opportunities for Persons with AIDS account up to $25,000,000, for
use in addition to amounts appropriated in such account.

880c99ef3e36461dc65e27ba82b8a6cf23e0f77c8c1b8bbed73d690d10e01dfe

Rulemaking.--The Secretary of Housing and Urban Development shall
maintain all current requirements under part 10 of the Department of
Housing and Urban Development's regulations (24 CFR part 10) with
respect to the Department's policies and procedures for the
promulgation and issuance of rules, including the use of public
participation in the rulemaking process.

7a3493f80cc12d2325c15bde7bd0b8d26de429390b50101539e2d6114088c294

of the Housing and Community Development Act of 1974 (42 U.S.C.
5302(a)(6)(D)) is amended--
(1) in clause (iv), by striking ``or'' at the end;
(2) in clause (v), by striking the period at the end and
inserting ``; or''; and
(3) by adding at the end the following new clause:
``(vi) has entered into a local cooperation agreement with
a metropolitan city that received assistance under section 106
because of such classification, and has elected under paragraph
(4) to have its population included with the population of the
county for the purposes of qualifying as an urban county,
except that to qualify as an urban county under this clause,
the county must--
``(I) have a combined population of not less than
210,000, excluding any metropolitan city located in the
county that is not relinquishing its metropolitan city
classification, according to the 1990 decennial census of
the Bureau of the Census of the Department of Commerce;
``(II) including any metropolitan cities located in the
county, have had a decrease in population of 10,061 from
1992 to 1994, according to the estimates of the Bureau of
the Census of the Department of Commerce; and
``(III) have had a Federal naval installation that was
more than 100 years old closed by action of the Base
Closure and Realignment Commission appointed for 1993 under
the Base Closure and Realignment Act of 1990, directly
resulting in a loss of employment by more than 7,000
Federal Government civilian employees and more than 15,000
active duty military personnel, which naval installation
was located within one mile of an enterprise community
designated by the Secretary pursuant to section 1391 of the
Internal Revenue Code of 1986, which enterprise community
has a population of not less than 20,000, according to the
1990 decennial census of the Bureau of the Census of the
Department of Commerce.''.

28b7a5e4f9d32a2e9cfb0b77b4b85bf18f350e18536bcd89091de9d4ad2f997c

available under this Act may be used during fiscal year 1997 to
investigate or prosecute under the Fair Housing Act any otherwise
lawful activity engaged in by one or more persons, including the filing
or maintaining of a nonfrivolous legal action, that is engaged in
solely for the purpose of achieving or preventing action by a
government official or entity, or a court of competent jurisdiction.

51ab2d6749fe9be184e27e06ae2169924ad24f35ef602b0dc24a9a425c1377ce

appropriations accounts, as set forth in title II of the Departments of
Veterans Affairs and Housing and Urban Development, and Independent
Agencies Appropriations Act, 1996 and prior Acts that are recaptured
hereafter, to the extent not governed by the specific language in an
account or provision in this Act, shall be held in reserve subject to
reprogramming, notwithstanding any other provision of law.

823bb62c8490abeb7705715c0ffc30e7ab8c018b66c244d2eaf1d30676887edd

other provision of law, rehabilitation activities undertaken in
projects using the Low-Income Housing Tax Credit allocated to
developments in the city of New Brunswick, New Jersey, in 1991, are
deemed to have met the requirements for rehabilitation in accordance
with clause (ii) of the third sentence of section 8(d)(2)(A) of the
United States Housing Act of 1937, as in effect before the date of the
enactment of this Act.

805441054121c128562e37bb3b4d0af5b189bbbee292dd3e81ffe7a445e0b805

Section 105(a) of the Housing and Community Development Act of 1974 (42
U.S.C. 5305(a)(8)) is amended by striking ``through 1997'' and
inserting ``through 1998''.

c2ee68bfa0e8538eadea495883612f0517af52cd6d96407e6395b46118ca7706

0660b52041fedb8c20a0163269fec2f369b3a3dc26bdc4e6d23c801552a5f955

are expendable for travel expenses and no specific limitation has been
placed thereon, the expenditures for such travel expenses may not
exceed the amounts set forth therefore in the budget estimates
submitted for the appropriations: Provided, That this provision does
not apply to accounts that do not contain an object classification for
travel: Provided further, That this section shall not apply to travel
performed by uncompensated officials of local boards and appeal boards
of the Selective Service System; to travel performed directly in
connection with care and treatment of medical beneficiaries of the
Department of Veterans Affairs; to travel performed in connection with
major disasters or emergencies declared or determined by the President
under the provisions of the Robert T. Stafford Disaster Relief and
Emergency Assistance Act; to travel performed by the Offices of
Inspector General in connection with audits and investigations; or to
payments to interagency motor pools where separately set forth in the
budget schedules: Provided further, That if appropriations in titles I,
II, and III exceed the amounts set forth in budget estimates initially
submitted for such appropriations, the expenditures for travel may
correspondingly exceed the amounts therefore set forth in the estimates
in the same proportion.

d345cdda2bf038f7932455859690ee60f84c116b704e79cc4d176506f18beac0

TITLE IV

-GENERAL PROVISIONS

expenses of the Department of Housing and Urban Development and the
Selective Service System shall be available in the current fiscal year
for purchase of uniforms, or allowances therefor, as authorized by 5
U.S.C. 5901-5902; hire of passenger motor vehicles; and services as
authorized by 5 U.S.C. 3109.

8e3e995d1562b5c2188d08af638168f323426cec689470b63f5fb719e2a99fac

subject to the Government Corporation Control Act or section 402 of the
Housing Act of 1950 shall be available, without regard to the
limitations on administrative expenses, for legal services on a
contract or fee basis, and for utilizing and making payment for
services and facilities of Federal National Mortgage Association,
Government National Mortgage Association, Federal Home Loan Mortgage
Corporation, Federal Financing Bank, Federal Reserve banks or any
member thereof, Federal Home Loan banks, and any insured bank within
the meaning of the Federal Deposit Insurance Corporation Act, as
amended (12 U.S.C. 1811-1831).

103b711c02546b95ed2ae21bd24f87d8baa210d682280d3ec470dd80da2ae471

remain available for obligation beyond the current fiscal year unless
expressly so provided herein.

7770463076f9f59a2cd4c29b71d116e217918273a4ebbc20184321af00939d06

(1) pursuant to a certification of an officer or employee of
the United States unless--
(A) such certification is accompanied by, or is part of, a
voucher or abstract which describes the payee or payees and the
items or services for which such expenditure is being made, or
(B) the expenditure of funds pursuant to such
certification, and without such a voucher or abstract, is
specifically authorized by law; and
(2) unless such expenditure is subject to audit by the General
Accounting Office or is specifically exempt by law from such audit.

b836d9e7083086104ec47709331d2c2f99fe5030ecd2d5070aba338c5a96cae2

or agency may be expended for the transportation of any officer or
employee of such department or agency between his domicile and his
place of employment, with the exception of any officer or employee
authorized such transportation under 31 U.S.C. 1344 or 5 U.S.C. 7905.

35048218199130dc62a310135b7becd0d7fd53843052ddf0f343ccd69cd18f3c

payment, through grants or contracts, to recipients that do not share
in the cost of conducting research resulting from proposals not
specifically solicited by the Government: Provided, That the extent of
cost sharing by the recipient shall reflect the mutuality of interest
of the grantee or contractor and the Government in the research.

fa854809d1b6836471fdb1e34d58da9c4cba5a93c5d470afe13c4c44a77773c1

through grants, to pay or to provide reimbursement for payment of the
salary of a consultant (whether retained by the Federal Government or a
grantee) at more than the daily equivalent of the rate paid for level
IV of the Executive Schedule, unless specifically authorized by law.

27076fd6dbc5dd757c4058123b668553f8d551fccd6ec60038e036b5b510b978

pay the expenses of, or otherwise compensate, non-Federal parties
intervening in regulatory or adjudicatory proceedings. Nothing herein
affects the authority of the Consumer Product Safety Commission
pursuant to section 7 of the Consumer Product Safety Act (15 U.S.C.
2056 et seq.).

5998a6c9fe602df9a4abef030e6fd3b1161ebfa86f25f997019bb6686f59d177

an existing Executive Order issued pursuant to an existing law, the
obligation or expenditure of any appropriation under this Act for
contracts for any consulting service shall be limited to contracts
which are (1) a matter of public record and available for public
inspection, and (2) thereafter included in a publicly available list of
all contracts entered into within twenty-four months prior to the date
on which the list is made available to the public and of all contracts
on which performance has not been completed by such date. The list
required by the preceding sentence shall be updated quarterly and shall
include a narrative description of the work to be performed under each
such contract.

4d1adfd288e0de8535386960283f59aac4a8a37f45a4585bd2292ba9adabff49

appropriation contained in this Act shall be obligated or expended by
any executive agency, as referred to in the Office of Federal
Procurement Policy Act (41 U.S.C. 401 et seq.), for a contract for
services unless such executive agency (1) has awarded and entered into
such contract in full compliance with such Act and the regulations
promulgated thereunder, and (2) requires any report prepared pursuant
to such contract, including plans, evaluations, studies, analyses and
manuals, and any report prepared by the agency which is substantially
derived from or substantially includes any report prepared pursuant to
such contract, to contain information concerning (A) the contract
pursuant to which the report was prepared, and (B) the contractor who
prepared the report pursuant to such contract.

16c6958a6470e7409f4242ee11cb04881eb5634842a23c8652b822f099f9f3b8

funds provided in this Act to any department or agency shall be
obligated or expended to provide a personal cook, chauffeur, or other
personal servants to any officer or employee of such department or
agency.

478878ba25a30dfdee714aa89e89f770dca64703d7a743afe9c320a7c0b1fe13

or agency shall be obligated or expended to procure passenger
automobiles as defined in 15 U.S.C. 2001 with an EPA estimated miles
per gallon average of less than 22 miles per gallon.

c2bb608a1cf1d0c4111ced93a0574de877799fc270577609beedf42828523f8b

shall be used to enter into any new lease of real property if the
estimated annual rental is more than $300,000 unless the Secretary
submits, in writing, a report to the Committees on Appropriations of
the Congress and a period of 30 days has expired following the date on
which the report is received by the Committees on Appropriations.

5baa961c0ad80ca38b6a24920b9688e800d96d85022880edaea627366bb8360f

is the sense of the Congress that, to the greatest extent practicable,
all equipment and products purchased with funds made available in this
Act should be American-made.
(b) Notice Requirement.--In providing financial assistance to, or
entering into any contract with, any entity using funds made available
in this Act, the head of each Federal agency, to the greatest extent
practicable, shall provide to such entity a notice describing the
statement made in subsection (a) by the Congress.

2dd36573ad717eb44072f8f69423192f0f9a316ffdf83190d262a6f0eabf34fe

implement any cap on reimbursements to grantees for indirect costs,
except as published in Office of Management and Budget Circular A-21.

08f184c050340112435691a57b8315c3f372f2ed629397fb1d49baa9faf7e5d9

raises for programs funded by this Act shall be absorbed within the
levels appropriated in this Act.

9f5c43c544bd70af57e63e0471b4c7dfdb8bffe433fc3e4798261ce0973e494f

for any program, project, or activity, when it is made known to the
Federal entity or official to which the funds are made available that
the program, project, or activity is not in compliance with any Federal
law relating to risk assessment, the protection of private property
rights, or unfunded mandates.

94392877959816a0247c06bf57d27707e6ad14dfdb4470ef96e18be77757676a

termination of the Office of Consumer Affairs shall be made available
from funds appropriated to the Department of Health and Human Services
for fiscal year 1997.

55f4d9febcd112ac452b6c778d11699d81ac25e5eda2e50c3af34204291ed1c0

and Urban Development which are subject to the Government Corporation
Control Act, as amended, are hereby authorized to make such
expenditures, within the limits of funds and borrowing authority
available to each such corporation or agency and in accord with law,
and to make such contracts and commitments without regard to fiscal
year limitations as provided by section 104 of the Act as may be
necessary in carrying out the programs set forth in the budget for 1997
for such corporation or agency except as hereinafter provided:
Provided, That collections of these corporations and agencies may be
used for new loan or mortgage purchase commitments only to the extent
expressly provided for in this Act (unless such loans are in support of
other forms of assistance provided for in this or prior appropriations
Acts), except that this proviso shall not apply to the mortgage
insurance or guaranty operations of these corporations, or where loans
or mortgage purchases are necessary to protect the financial interest
of the United States Government.

461757a6e08fd3a6dc60d82f3c25434a3f76c8c888024023638653e462f14c00

special needs of certain children of Vietnam veterans who were born
with the birth defect spina bifida, possibly as the result of the
exposure of one or both parents to herbicides during active service in
the Republic of Vietnam during the Vietnam era, through the provision
of health care and monetary benefits.
(b)(1) Part II of title 38, United States Code, is amended by
inserting after chapter 17 the following new chapter:
``CHAPTER 18--BENEFITS FOR CHILDREN OF VIETNAM VETERANS WHO ARE BORN
WITH SPINA BIFIDA
``Sec.
``1801. Definitions.
``1802. Spina bifida conditions covered.
``1803. Health care.
``1804. Vocational training and rehabilitation.
``1805. Monetary allowance.
``1806. Effective date of awards.
``Sec. 1801. Definitions
``For the purposes of this chapter--
``(1) The term `child', with respect to a Vietnam veteran,
means a natural child of the Vietnam veteran, regardless of age or
marital status, who was conceived after the date on which the
veteran first entered the Republic of Vietnam during the Vietnam
era.
``(2) The term `Vietnam veteran' means a veteran who performed
active military, naval, or air service in the Republic of Vietnam
during the Vietnam era.
``Sec. 1802. Spina bifida conditions covered
``This chapter applies with respect to all forms and manifestations
of spina bifida except spina bifida occulta.
``Sec. 1803. Health care
``(a) In accordance with regulations which the Secretary shall
prescribe, the Secretary shall provide a child of a Vietnam veteran who
is suffering from spina bifida with such health care as the Secretary
determines is needed by the child for the spina bifida or any
disability that is associated with such condition.
``(b) The Secretary may provide health care under this section
directly or by contract or other arrangement with any health care
provider.
``(c) For the purposes of this section--
``(1) The term `health care'--
``(A) means home care, hospital care, nursing home care,
outpatient care, preventive care, habilitative and
rehabilitative care, case management, and respite care; and
``(B) includes--
``(i) the training of appropriate members of a child's
family or household in the care of the child; and
``(ii) the provision of such pharmaceuticals, supplies,
equipment, devices, appliances, assistive technology,
direct transportation costs to and from approved sources of
health care, and other materials as the Secretary
determines necessary.
``(2) The term `health care provider' includes specialized
spina bifida clinics, health care plans, insurers, organizations,
institutions, and any other entity or individual who furnishes
health care that the Secretary determines authorized under this
section.
``(3) The term `home care' means outpatient care, habilitative
and rehabilitative care, preventive health services, and health-
related services furnished to an individual in the individual's
home or other place of residence.
``(4) The term `hospital care' means care and treatment for a
disability furnished to an individual who has been admitted to a
hospital as a patient.
``(5) The term `nursing home care' means care and treatment for
a disability furnished to an individual who has been admitted to a
nursing home as a resident.
``(6) The term `outpatient care' means care and treatment of a
disability, and preventive health services, furnished to an
individual other than hospital care or nursing home care.
``(7) The term `preventive care' means care and treatment
furnished to prevent disability or illness, including periodic
examinations, immunizations, patient health education, and such
other services as the Secretary determines necessary to provide
effective and economical preventive health care.
``(8) The term `habilitative and rehabilitative care' means
such professional, counseling, and guidance services and treatment
programs (other than vocational training under section 1804 of this
title) as are necessary to develop, maintain, or restore, to the
maximum extent practicable, the functioning of a disabled person.
``(9) The term `respite care' means care furnished on an
intermittent basis for a limited period to an individual who
resides primarily in a private residence when such care will help
the individual to continue residing in such private residence.
``Sec. 1804. Vocational training and rehabilitation
``(a) Pursuant to such regulations as the Secretary may prescribe,
the Secretary may provide vocational training under this section to a
child of a Vietnam veteran who is suffering from spina bifida if the
Secretary determines that the achievement of a vocational goal by such
child is reasonably feasible.
``(b) Any program of vocational training for a child under this
section shall be designed in consultation with the child in order to
meet the child's individual needs and shall be set forth in an
individualized written plan of vocational rehabilitation.
``(c)(1) A vocational training program for a child under this
section--
``(A) shall consist of such vocationally oriented services and
assistance, including such placement and post-placement services
and personal and work adjustment training, as the Secretary
determines are necessary to enable the child to prepare for and
participate in vocational training or employment; and
``(B) may include a program of education at an institution of
higher education if the Secretary determines that the program of
education is predominantly vocational in content.
``(2) A vocational training program under this subsection may not
include the provision of any loan or subsistence allowance or any
automobile adaptive equipment.
``(d)(1) Except as provided in paragraph (2) and subject to
subsection (e)(2), a vocational training program under this section may
not exceed 24 months.
``(2) The Secretary may grant an extension of a vocational training
program for a child under this section for up to 24 additional months
if the Secretary determines that the extension is necessary in order
for the child to achieve a vocational goal identified (before the end
of the first 24 months of such program) in the written plan of
vocational rehabilitation formulated for the child pursuant to
subsection (b).
``(e)(1) A child who is pursuing a program of vocational training
under this section and is also eligible for assistance under a program
under chapter 35 of this title may not receive assistance under both
such programs concurrently. The child shall elect (in such form and
manner as the Secretary may prescribe) the program under which the
child is to receive assistance.
``(2) The aggregate period for which a child may receive assistance
under this section and chapter 35 of this title may not exceed 48
months (or the part-time equivalent thereof).
``Sec. 1805. Monetary allowance
``(a) The Secretary shall pay a monthly allowance under this
chapter to any child of a Vietnam veteran for any disability resulting
from spina bifida suffered by such child.
``(b)(1) The amount of the allowance paid to a child under this
section shall be based on the degree of disability suffered by the
child, as determined in accordance with such schedule for rating
disabilities resulting from spina bifida as the Secretary may
prescribe.
``(2) The Secretary shall, in prescribing the rating schedule for
the purposes of this section, establish three levels of disability upon
which the amount of the allowance provided by this section shall be
based.
``(3) The amounts of the allowance shall be $200 per month for the
lowest level of disability prescribed, $700 per month for the
intermediate level of disability prescribed, and $1,200 per month for
the highest level of disability prescribed. Such amounts are subject to
adjustment under section 5312 of this title.
``(c) Notwithstanding any other provision of law, receipt by a
child of an allowance under this section shall not impair, infringe, or
otherwise affect the right of the child to receive any other benefit to
which the child may otherwise be entitled under any law administered by
the Secretary, nor shall receipt of such an allowance impair, infringe,
or otherwise affect the right of any individual to receive any benefit
to which the individual is entitled under any law administered by the
Secretary that is based on the child's relationship to the individual.
``(d) Notwithstanding any other provision of law, the allowance
paid to a child under this section shall not be considered income or
resources in determining eligibility for or the amount of benefits
under any Federal or federally assisted program.
``Sec. 1806. Effective date of awards
``The effective date for an award of benefits under this chapter
shall be fixed in accordance with the facts found, but shall not be
earlier than the date of receipt of application for the benefits.''.
(2) The tables of chapters before part I and at the beginning of
part II of such title are each amended by inserting after the item
referring to chapter 17 the following new item:
``18. Benefits for Children of Vietnam Veterans Who Are Born With
Spina Bifida.....................................................1801''.
(c) Section 5312 of title 38, United States Code, is amended--
(1) in subsection (a)--
(A) by striking out ``and the rate of increased pension''
and inserting in lieu thereof ``, the rate of increased
pension''; and
(B) by inserting after ``on account of children,'' the
following: ``and each rate of monthly allowance paid under
section 1805 of this title,''; and
(2) in subsection (c)(1), by striking out ``and 1542'' and
inserting in lieu thereof ``1542, and 1805''.
(d) This section and the amendments made by this section shall take
effect on January 1, 1997.

33beef317b65c235a89fa334feac6d925ee44b418c10c12ceadc5ba6455a6689

amended--
(1) by striking out the first sentence and inserting in lieu
thereof the following:
``(a) Compensation under this chapter and dependency and indemnity
compensation under chapter 13 of this title shall be awarded for a
qualifying additional disability or a qualifying death of a veteran in
the same manner as if such additional disability or death were service-
connected. For purposes of this section, a disability or death is a
qualifying additional disability or qualifying death if the disability
or death was not the result of the veteran's willful misconduct and--
``(1) the disability or death was caused by hospital care,
medical or surgical treatment, or examination furnished the veteran
under any law administered by the Secretary, either by a Department
employee or in a Department facility as defined in section
1701(3)(A) of this title, and the proximate cause of the disability
or death was--
``(A) carelessness, negligence, lack of proper skill, error
in judgment, or similar instance of fault on the part of the
Department in furnishing the hospital care, medical or surgical
treatment, or examination; or
``(B) an event not reasonably foreseeable; or
``(2) the disability or death was proximately caused by the
provision of training and rehabilitation services by the Secretary
(including by a service-provider used by the Secretary for such
purpose under section 3115 of this title) as part of an approved
rehabilitation program under chapter 31 of this title.''; and
(2) in the second sentence--
(A) by redesignating that sentence as subsection (b);
(B) by striking out ``, aggravation,'' both places it
appears; and
(C) by striking out ``sentence'' and substituting in lieu
thereof ``subsection''.
(b)(1) The amendments made by subsection (a) shall take effect on
October 1, 1996.
(2) Section 1151 of title 38, United States Code (as amended by
subsection (a)), shall govern all administrative and judicial
determinations of eligibility for benefits under such section that are
made with respect to claims filed on or after the effective date set
forth in paragraph (1), including those based on original applications
and applications seeking to reopen, revise, reconsider, or otherwise
readjudicate on any basis claims for benefits under such section 1151
or any provision of law that is a predecessor of such section.
(c) Nothwithstanding subsection (b)(1), section 421(d), or any
other provision of this Act, section 421 and this section shall not
take effect until October 1, 1997, unless legislation other than this
Act is enacted to provide for an earlier effective date.

e830744f9c97f3bf1419e5f6ba8e7f6e02721baf41afb029cd4809d4a8f352e1

Administration--Medical Care'' is hereby increased by $5,000,000.

e07b0eff29864388ec5814f30cbf58b99efc59c348d794a640cc8136840c087d

the National Housing Act (12 U.S.C. 1709(c)(2)(A)) is amended by
inserting after the first sentence the following new sentence: ``In the
case of a mortgage for which the mortgagor is a first-time homebuyer
who completes a program of counseling with respect to the
responsibilities and financial management involved in homeownership
that is approved by the Secretary, the premium payment under this
subparagraph shall not exceed 2.0 percent of the amount of the original
insured principal obligation of the mortgage.''.

c11a219eca9e8daa67d47aece446a3feac1d5731189652ab07828b62c8b43979

for Downpayments on FHA-Insured Loans.--Section 203(b)(9) of the
National Housing Act (12 U.S.C. 1709(b)(9)) is amended by inserting
before the period at the end the following: ``: Provided further, That
for purposes of this paragraph, the Secretary shall consider as cash or
its equivalent any amounts borrowed from a family member (as such term
is defined in section 201), subject only to the requirements that, in
any case in which the repayment of such borrowed amounts is secured by
a lien against the property, such lien shall be subordinate to the
mortgage and the sum of the principal obligation of the mortgage and
the obligation secured by such lien may not exceed 100 percent of the
appraised value of the property plus any initial service charges,
appraisal, inspection, and other fees in connection with the
mortgage''.
(b) Definition of Family Member.--Section 201 of the National
Housing Act (12 U.S.C. 1707) is amended by adding at the end the
following new subsections:
``(e) The term `family member' means, with respect to a mortgagor
under such section, a child, parent, or grandparent of the mortgagor
(or the mortgagor's spouse). In determining whether any of the
relationships referred to in the preceding sentence exist, a legally
adopted son or daughter of an individual (and a child who is a member
of an individual's household, if placed with such individual by an
authorized placement agency for legal adoption by such individual), and
a foster child of an individual, shall be treated as a child of such
individual by blood.
``(f) The term `child' means, with respect to a mortgagor under
such section, a son, stepson, daughter, or stepdaughter of such
mortgagor.''.

7de6160872579bbc14c60dfde24647c648f118c723bd15bda758a2a060d607f5

National Housing Act (12 U.S.C. 1709(b)) is amended by adding at the
end the following new paragraph:
``(10) Alaska and hawaii.--
``(A) In general.--Notwithstanding any other provision of
this subsection, with respect to a mortgage originated in the
State of Alaska or the State of Hawaii and endorsed for
insurance in fiscal year 1997, involving a principal obligation
not in excess of the sum of--
``(i) the amount of the mortgage insurance premium paid
at the time the mortgage is insured; and
``(ii)(I) in the case of a mortgage for a property with
an appraised value equal to or less than $50,000, 98.75
percent of the appraised value of the property;
``(II) in the case of a mortgage for a property with an
appraised value in excess of $50,000 but not in excess of
$125,000, 97.65 percent of the appraised value of the
property;
``(III) in the case of a mortgage for a property with
an appraised value in excess of $125,000, 97.15 percent of
the appraised value of the property; or
``(IV) notwithstanding subclauses (II) and (III), in
the case of a mortgage for a property with an appraised
value in excess of $50,000 that is located in an area of
the State for which the average closing cost exceeds 2.10
percent of the average, for the State, of the sale price of
properties located in the State for which mortgages have
been executed, 97.75 percent of the appraised value of the
property.
``(B) Average closing cost.--For purposes of this
paragraph, the term `average closing cost' means, with respect
to a State, the average, for mortgages executed for properties
that are located within the State, of the total amounts (as
determined by the Secretary) of initial service charges,
appraisal, inspection, and other fees (as the Secretary shall
approve) that are paid in connection with such mortgages.''.

6893a81bedf280925e32e69c788a75557bfb345e1ec6b8cd4467e66480b95685

to Direct Endorsement Mortgagees.--Title II of the National Housing Act
(12 U.S.C. 1707 et seq.) is amended by adding at the end the following
new section:
``delegation of insuring authority to direct endorsement mortgagees
``Sec. 256.(a) Authority.--The Secretary may delegate, to one or
more mortgagees approved by the Secretary under the direct endorsement
program, the authority of the Secretary under this Act to insure
mortgages involving property upon which there is located a dwelling
designed principally for occupancy by 1 to 4 families.
``(b) Considerations.--In determining whether to delegate authority
to a mortgagee under this section, the Secretary shall consider the
experience and performance of the mortgagee compared to the default
rate of all insured mortgages in comparable markets, and such other
factors as the Secretary determines appropriate to minimize risk of
loss to the insurance funds under this Act.
``(c) Enforcement of Insurance Requirements.--
``(1) In general.--If the Secretary determines that a mortgage
insured by a mortgagee pursuant to delegation of authority under
this section was not originated in accordance with the requirements
established by the Secretary, and the Secretary pays an insurance
claim with respect to the mortgage within a reasonable period
specified by the Secretary, the Secretary may require the mortgagee
approved under this section to indemnify the Secretary for the
loss.
``(2) Fraud or misrepresentation.--If fraud or
misrepresentation was involved in connection with the origination,
the Secretary may require the mortgagee approved under this section
to indemnify the Secretary for the loss regardless of when an
insurance claim is paid.
``(d) Termination of Mortgagee's Authority.--If a mortgagee to
which the Secretary has made a delegation under this section violates
the requirements and procedures established by the Secretary or the
Secretary determines that other good cause exists, the Secretary may
cancel a delegation of authority under this section to the mortgagee by
giving notice to the mortgagee. Such a cancellation shall be effective
upon receipt of the notice by the mortgagee or at a later date
specified by the Secretary. A decision by the Secretary to cancel a
delegation shall be final and conclusive and shall not be subject to
judicial review.
``(e) Requirements and Procedures.--Before approving a delegation
under this section, the Secretary shall issue regulations establishing
appropriate requirements and procedures, including requirements and
procedures governing the indemnification of the Secretary by the
mortgagee.''.

4debdae693c8e4172c25c6450405332a68c8416c721e56af039d1f9961d41289

Management Plans.--Notwithstanding section 320(g) of the Federal Water
Pollution Control Act (33 U.S.C. 1330(g)), funds made available
pursuant to authorization under such section for fiscal year 1997 and
prior fiscal years may be used for implementing comprehensive
conservation and management plans.

f2970ec342352e183c7fc3a26b9fba349a3ca83afa2c259584b640b444f21771

develop a plan for the allocation of health care resources (including
personnel and funds) of the Department of Veterans Affairs among the
health care Networks of the Department so as to ensure that veterans
who have similar economic status and eligibility priority and who are
eligible for medical care have similar access to such care regardless
of the region of the United States in which such veterans reside.
(2) The plan shall--
(A) reflect, to the maximum extent possible, the Veterans
Integrated Service Network developed by the Department to account
for forecasts in expected workload and to ensure fairness to
facilities that provide cost-efficient health care; and
(B) include--
(i) procedures to identify reasons for variations in
operating costs among similar facilities where Network
allocations are based on similar unit costs for similar
services and workload;
(ii) ways to improve the allocation of resources so as to
promote efficient use of resources and provision of quality
health care;
(iii) adjustments to unit costs in subsection (a) to
reflect factors which directly influence the cost of health
care delivery within each Network and where such factors are
not under the control of Network or Department management; and
(iv) include forecasts in expected workload and
consideration of the demand for Veterans Administration health
care that may not be reflected in current workload projections.
(3) The Secretary shall prepare the plan in consultation with the
Under Secretary of Health of the Department of Veterans Affairs.
(b) Plan Elements.--The plan under subsection (a) shall set forth--
(1) milestones for achieving the goal referred to in paragraph
(1) of that subsection; and
(2) a means of evaluating the success of the Secretary in
meeting the goal.
(c) Submittal to Congress.--The Secretary shall submit to Congress
the plan developed under subsection (a) not later than 180 days after
the date of the enactment of this Act.
(d) Implementation.--The Secretary shall implement the plan
developed under subsection (a) not later than 60 days after submitting
the plan to Congress under subsection (c), unless within that time the
Secretary notifies Congress that the plan will not be implemented in
that time and includes with the notification an explanation why the
plan will not be implemented in that time.

69c60f038d9d87be923a1b70e8161dcc096fd7e17f449deac187caee0b56034f

General shall audit the operations of the Office of Federal Housing
Enterprise Oversight concerning staff organization, expertise,
capacity, and contracting authority to ensure that the office resources
and contract authority are adequate and that they are being used
appropriately to ensure that the Federal National Mortgage Association
and the Federal Home Loan Mortgage Corporation are adequately
capitalized and operating safely.

15adf6558f98fa2cfe8655b2914b32595192cc4e4fc42a5b7d88e484d36fed0a

available to the National Aeronautics and Space Administration by this
Act, or any other Act enacted before the date of enactment of this Act,
may be used by the Administrator of the National Aeronautics and Space
Administration to relocate aircraft of the National Aeronautics and
Space Administration based east of the Mississippi River to the Dryden
Flight Research Center in California for the purpose of the
consolidation of such aircraft.

599fee7aefd74e4573a5756070a799faef2faa9270e44f4d73592b4c045d7729

National Aeronautics and Space Administration.--(a) Short Title.--This
section may be cited as the ``National Aeronautics and Space
Administration Federal Employment Reduction Assistance Act of 1996.''.
(b) Definitions.--For the purpose of this section--
(1) the term ``Administrator'' means the Administrator of the
National Aeronautics and Space Administration; and
(2) the term ``employee'' means an employee of the National
Aeronautics and Space Administration serving under an appointment
without time limitation, who has been currently employed with NASA
for a continuous period of at least twelve months, except that such
term does not include--
(A) a reemployed annuitant under subchapter III of chapter
83 or chapter 84 of title 5, United States Code, or another
retirement system for employees of the Government;
(B) an employee who is in receipt of a specific notice of
involuntary separation for misconduct or unacceptable
performance;
(C) an employee who, upon completing an additional period
of service as referred to in section 3(b)(2)(B)(ii) of the
Federal Workforce Restructuring Act of 1994 (Public Law 103-
226; 108 Stat. 111), would qualify for a voluntary separation
incentive payment under section 3 of such Act; or
(D) an employee who has previously received any voluntary
separation incentive payment by the Federal Government under
this Act or any other authority and has not repaid such
payment.
(c) Incentive Payment Program.--In order to avoid or minimize the
need for involuntary separations due to a reduction in force,
installation closure, reorganization, transfer of function, or other
similar action affecting the National Aeronautics and Space
Administration, the Administrator shall establish a program under which
separation pay, subject to the availability of appropriated funds, may
be offered to encourage eligible employees to separate from service
voluntarily (whether by retirement or resignation).
(d) Incentive Payments.--In order to receive a voluntary separation
incentive payment, an employee must separate voluntarily (whether by
retirement or resignation) during the period of time for which the
payment of incentives has been authorized for the employee under the
agency plan. Such separation payments--
(1) shall be paid in a lump sum after the employee's
separation, and
(2) shall be equal to the lesser of--
(A) an amount equal to the amount the employee would be
entitled to receive under section 5595(c) of title 5, United
States Code, if the employee were entitled to payment under
such section; or
(B) an amount that shall not exceed $25,000;
(3) shall not be a basis for payment, and shall not be included
in the computation, of any other type of Government benefit;
(4) shall not be taken into account for purposes of determining
the amount of any severance pay to which an individual may be
entitled under section 5595 of title 5, United States Code, based
on any other separation;
(5) shall be considered payment for a voluntary separa- tion;
and
(6) shall be paid from the appropriations or funds available
for payment of the basic pay of the employee.
(e) Effect of Subsequent Employment With the Government.--
(1) An individual who has received a voluntary separation
incentive payment under this section and accepts any employment
with the Government of the United States within five years after
the date of the separation on which the payment is based shall be
required to repay, prior to the individual's first day of
employment, the entire amount of the incentive payment to NASA.
(2) If the employment under paragraph (1) above is with an
executive agency (as defined by section 105 of title 5, United
States Code), the United States Postal Service, or the Postal Rate
Commission, the Director of the Office of Personnel Management may,
at the request of the head of the agency, waive the repayment if
the individual involved possesses unique abilities and is the only
qualified applicant available for the position.
(3) If the employment under paragraph (1) above is with an
entity in the legislative branch, the head of the entity or the
appointing official may waive the repayment if the individual
involved possesses unique abilities and is the only qualified
applicant available for the position.
(4) If the employment under paragraph (1) above is with the
judicial branch, the Director of the Administrative Office of the
United States Courts may waive the repayment if the individual
involved possesses unique abilities and is the only qualified
applicant available for the position.
(5) For the purpose of this section, the term ``employment''--
(A) includes employment of any length or under any type of
appointment, but does not include employment that is without
compensation; and
(B) includes employment under a personal services contract.
(f) Effect of Subsequent Disability Retirement.--An employee who
has received an incentive payment is ineligible to receive an annuity
for reasons of disability under applicable regulations, unless the
incentive payment is repaid.
(g) Additional Agency Contributions to the Retirement Fund.--
(1) In addition to any other payments which it is required to
make under subchapter III of chapter 83 or chapter 84 of title 5,
United States Code, NASA shall remit to the Office of Personnel
Management for deposit in the Treasury of the United States to the
credit of the Civil Service Retirement and Disability Fund an
amount equal to 15 percent of the final basic pay of each employee
who is covered under subchapter III of chapter 83 or chapter 84 of
title 5 to whom a voluntary separation incentive has been paid
under this Act.
(2) For the purpose of this section, the term ``final basic
pay'', with respect to an employee, means the total amount of basic
pay which would be payable for a year of service by such employee,
computed using the employee's final rate of basic pay, and, if last
serving on other than a full-time basis, with appropriate
adjustment therefor.
(h) Reduction of Agency Employment Levels.--
(1) Total full-time-equivalent employment in NASA shall be
reduced by one for each separation of an employee who receives a
voluntary separation incentive payment under this Act. The
reduction will be calculated by comparing the agency's full-time-
equivalent employment for the fiscal year in which the voluntary
separation payments are made with the authorized full-time-
equivalent employment for the prior fiscal year.
(2) The Office of Management and Budget shall monitor and take
appropriate action necessary to ensure that the requirements of
this section are met.
(3) The President shall take appropriate action to ensure that
functions involving more than 10 full time equivalent employees are
not converted to contracts by reason of the enactment of this
section, except in cases in which a cost comparison demonstrates
such contracts would be to the advantage of the Government.
(4) The provisions of subsections (1) and (3) of this section
may be waived upon a determination by the President that--
(A) the existence of a state of war or other national
emergency so requires; or
(B) the existence of an extraordinary emergency which
threatens life, health, safety, property, or the environment so
requires.
(i) Reports.--No later than March 31 of each fiscal year, NASA
shall submit to the Office of Personnel Management, who will
subsequently report to the Committee on Governmental Affairs of the
Senate and the Committee on Government Reform and Oversight of the
House of Representatives a report which, with respect to the preceding
fiscal year, shall include--
(1) the number of employees who received voluntary separation
incentives;
(2) the average amount of such incentives; and
(3) the average grade or pay level of the employees who
received incentives.
(j) Effective Date.--
(1) The provisions of this section shall take effect on the
date of enactment of this Act.
(2) No voluntary separation incentive under this section may be
paid based on the separation of an employee after September 30,
2000.

6b89e745c305fd0a90569e662739108c3d81fd34cff309423a052ab56a1a6800

the General Services Administration (GSA) and notwithstanding section
707 of Public Law 103-433, the Administrator of the National
Aeronautics and Space Administration may convey to the city of Downey,
California, all right, title, and interest of the United States in and
to a parcel of real property, including improvements thereon,
consisting of approximately 60 acres and known as Parcels III, IV, V,
and VI of the NASA Industrial Plant, Downey, California.
(b)(1) Delay in Payment of Consideration.--After the end of the 20-
year period beginning on the date on which the conveyance under
subsection (a) is completed, the City of Downey shall pay to the United
States an amount equal to fair market value of the conveyed property as
of the date of the Federal conveyance.
(2) Effect of Reconveyance by the City.--If the City of Downey
reconveys all or any part of the conveyed property during such 20-year
period, the City shall pay to the United States an amount equal to the
fair market value of the reconveyed property as of the time of the
reconveyance, excluding the value of any improvements made to the
property by the City.
(3) Determination of Fair Market Value.--The Administrator of GSA
shall determine fair market value in accordance with Federal appraisal
standards and procedures.
(4) Treatment of Leases.--The Administrator of GSA may treat a
lease of the property within such 20-year period as a reconveyance if
the Administrator determines that the lease is being used to avoid
application of paragraph (b)(2).
(5) Deposit of Proceeds.--The Administrator of GSA shall deposit
any proceeds received under this subsection in the special account
established pursuant to section 204(h)(2) of the Federal Property and
Administrative Services Act of 1949 (40 U.S.C. 485(h)(2)).
(c) The exact acreage and legal description of the real property to
be conveyed under subsection (a) shall be determined by a survey
satisfactory to the Administrator of GSA. The cost of the survey shall
be borne by the City of Downey, California.
(d) The Administrator of GSA may require such additional terms and
conditions in connection with the conveyance under subsection (a) as
the Administrator of GSA considers appropriate to protect the interests
of the United States.
(e) If the City at any time after the conveyance of the property
under subsection (a) notifies the Administrator of GSA that the City no
longer wishes to retain the property, it may convey the property under
the terms of subsection (b), or, it may revert all right, title, and
interest in and to the property (including any facilities, equipment,
or fixtures conveyed, but excluding the value of any improvements made
to the property by the City) to the United States, and the United
States shall have the right of immediate entry onto the property.
DEPARTMENT OF VETERANS AFFAIRS
Veterans Benefits Administration
compensation and pensions
For an additional amount for ``Compensation and Pensions'',
$100,000,000, to be made available upon enactment of this Act, to
remain available until expended.
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Government National Mortgage Association
guarantees of mortgage backed securities loan guarantee program
account
During fiscal year 1996 and in addition to commitments previously
provided, additional commitments to issue guarantees to carry out
section 306 of the National Housing Act, as amended (12 U.S.C.
1721(g)), shall not exceed $20,000,000,000.

ffcb490014f7fe24ca711e19d0aaae3ce7376d815f7f7a8a2d45ac367d46cade

and Mothers' Health Protection Act of 1996''.

624c3d327d787b94c9942f5ed474ff771ea35b940488be4d1723438979c35935

TITLE VI

-NEWBORNS' AND MOTHERS' HEALTH PROTECTION ACT OF 1996

(1) the length of post-delivery hospital stay should be based
on the unique characteristics of each mother and her newborn child,
taking into consideration the health of the mother, the health and
stability of the newborn, the ability and confidence of the mother
and the father to care for their newborn, the adequacy of support
systems at home, and the access of the mother and her newborn to
appropriate follow-up health care; and
(2) the timing of the discharge of a mother and her newborn
child from the hospital should be made by the attending provider in
consultation with the mother.

2ed52cd49771bf26d31d92513ea6968363e607bc0f3b5650dbfd52fe78fe87d7

of 1974.--(a) In General.--Part 7 of subtitle B of title I of the
Employee Retirement Income Security Act of 1974 (added by section
101(a) of the Health Insurance Portability and Accountability Act of
1996) is amended--
(1) by amending the heading of the part to read as follows:
``Part 7--Group Health Plan Requirements'';
(2) by inserting after the part heading the following:
``Subpart A--Requirements Relating to Portability, Access, and
Renewability'';
(3) by redesignating sections 704 through 707 as sections 731
through 734, respectively;
(4) by inserting before section 731 (as so redesignated) the
following new heading:
``Subpart C--General Provisions'';
and
(5) by inserting after section 703 the following new subpart:
``Subpart B--Other Requirements
``SEC. 711. STANDARDS RELATING TO BENEFITS FOR MOTHERS AND NEWBORNS.
``(a) Requirements for Minimum Hospital Stay Following Birth.--
``(1) In general.--A group health plan, and a health insurance
issuer offering group health insurance coverage, may not--
``(A) except as provided in paragraph (2)--
``(i) restrict benefits for any hospital length of stay
in connection with childbirth for the mother or newborn
child, following a normal vaginal delivery, to less than 48
hours, or
``(ii) restrict benefits for any hospital length of
stay in connection with childbirth for the mother or
newborn child, following a cesarean section, to less than
96 hours; or
``(B) require that a provider obtain authorization from the
plan or the issuer for prescribing any length of stay required
under subparagraph (A) (without regard to paragraph (2)).
``(2) Exception.--Paragraph (1)(A) shall not apply in
connection with any group health plan or health insurance issuer in
any case in which the decision to discharge the mother or her
newborn child prior to the expiration of the minimum length of stay
otherwise required under paragraph (1)(A) is made by an attending
provider in consultation with the mother.
``(b) Prohibitions.--A group health plan, and a health insurance
issuer offering group health insurance coverage in connection with a
group health plan, may not--
``(1) deny to the mother or her newborn child eligibility, or
continued eligibility, to enroll or to renew coverage under the
terms of the plan, solely for the purpose of avoiding the
requirements of this section;
``(2) provide monetary payments or rebates to mothers to
encourage such mothers to accept less than the minimum protections
available under this section;
``(3) penalize or otherwise reduce or limit the reimbursement
of an attending provider because such provider provided care to an
individual participant or beneficiary in accordance with this
section;
``(4) provide incentives (monetary or otherwise) to an
attending provider to induce such provider to provide care to an
individual participant or beneficiary in a manner inconsistent with
this section; or
``(5) subject to subsection (c)(3), restrict benefits for any
portion of a period within a hospital length of stay required under
subsection (a) in a manner which is less favorable than the
benefits provided for any preceding portion of such stay.
``(c) Rules of Construction.--
``(1) Nothing in this section shall be construed to require a
mother who is a participant or beneficiary--
``(A) to give birth in a hospital; or
``(B) to stay in the hospital for a fixed period of time
following the birth of her child.
``(2) This section shall not apply with respect to any group
health plan, or any group health insurance coverage offered by a
health insurance issuer, which does not provide benefits for
hospital lengths of stay in connection with childbirth for a mother
or her newborn child.
``(3) Nothing in this section shall be construed as preventing
a group health plan or issuer from imposing deductibles,
coinsurance, or other cost-sharing in relation to benefits for
hospital lengths of stay in connection with childbirth for a mother
or newborn child under the plan (or under health insurance coverage
offered in connection with a group health plan), except that such
coinsurance or other cost-sharing for any portion of a period
within a hospital length of stay required under subsection (a) may
not be greater than such coinsurance or cost-sharing for any
preceding portion of such stay.
``(d) Notice Under Group Health Plan.--The imposition of the
requirements of this section shall be treated as a material
modification in the terms of the plan described in section 102(a)(1),
for purposes of assuring notice of such requirements under the plan;
except that the summary description required to be provided under the
last sentence of section 104(b)(1) with respect to such modification
shall be provided by not later than 60 days after the first day of the
first plan year in which such requirements apply.
``(e) Level and Type of Reimbursements.--Nothing in this section
shall be construed to prevent a group health plan or a health insurance
issuer offering group health insurance coverage from negotiating the
level and type of reimbursement with a provider for care provided in
accordance with this section.
``(f) Preemption; Exception for Health Insurance Coverage in
Certain States.--
``(1) In general.--The requirements of this section shall not
apply with respect to health insurance coverage if there is a State
law (as defined in section 731(d)(1)) for a State that regulates
such coverage that is described in any of the following
subparagraphs:
``(A) Such State law requires such coverage to provide for
at least a 48-hour hospital length of stay following a normal
vaginal delivery and at least a 96-hour hospital length of stay
following a cesarean section.
``(B) Such State law requires such coverage to provide for
maternity and pediatric care in accordance with guidelines
established by the American College of Obstetricians and
Gynecologists, the American Academy of Pediatrics, or other
established professional medical associations.
``(C) Such State law requires, in connection with such
coverage for maternity care, that the hospital length of stay
for such care is left to the decision of (or required to be
made by) the attending provider in consultation with the
mother.
``(2) Construction.--Section 731(a)(1) shall not be construed
as superseding a State law described in paragraph (1).''.
(b) Conforming Amendments.--
(1) Section 731(c) of such Act (as added by section 101 of the
Health Insurance Portability and Accountability Act of 1996 and
redesignated by the preceding provisions of this section) is
amended by striking ``Nothing'' and inserting ``Except as provided
in section 711, nothing''.
(2) Section 732(a) of such Act (as added by section 101 of the
Health Insurance Portability and Accountability Act of 1996 and
redesignated by the preceding provisions of this section) is
amended by inserting ``(other than section 711)'' after ``part''.
(3) Title I of such Act (as amended by section 101 of the
Health Insurance Portability and Accountability Act of 1996 and the
preceding provisions of this section) is further amended--
(A) in the last sentence of section 4(b), by striking
``section 706(b)(2)'', ``section 706(b)(1)'', and ``section
706(a)(1)'' and inserting ``section 733(b)(2)'', ``section
733(b)(1)'', and ``section 733(a)(1)'', respectively;
(B) in section 101(g), by striking ``section 706(a)(2)''
and inserting ``section 733(a)(2)'';
(C) in section 102(b), by striking ``section 706(a)(1)''
each place it appears and inserting ``section 733(a)(1), and by
striking ``section 706(b)(2)'' and inserting ``section
733(b)(2)'';
(D) in section 104(b)(1), by striking ``section 706(a)(1)''
each place it appears and inserting ``section 733(a)(1)'';
(E) in section 502(b)(3), by striking ``section 706(a)(1)''
and inserting ``section 733(a)(1)'';
(F) in section 506(c), by striking ``section 706(a)(2)''
and inserting ``section 733(a)(2)'';
(G) in section 514(b)(9), by striking ``section 704'' and
inserting ``section 731'';
(H) in the last sentence of section 701(c)(1), by striking
``section 706(c)'' and inserting ``section 733(c)'';
(I) in section 732(b), by striking ``section 706(c)(1)''
and inserting ``section 733(c)(1)'';
(J) in section 732(c)(1), by striking ``section 706(c)(2)''
and inserting ``section 733(c)(2)'';
(K) in section 732(c)(2), by striking ``section 706(c)(3)''
and inserting ``section 733(c)(3)''; and
(L) in section 732(c)(3), by striking ``section 706(c)(4)''
and inserting ``section 733(c)(4)''.
(4) The table of contents in section 1 of such Act is amended
by striking the items relating to part 7 and inserting the
following:
``Part 7--Group Health Plan Requirements
``Subpart A--Requirements Relating to Portability, Access, and
Renewability
``Sec. 701. Increased portability through limitation on preexisting
condition exclusions.
``Sec. 702. Prohibiting discrimination against individual participants
and beneficiaries based on health status.
``Sec. 703. Guaranteed renewability in multiemployer plans and multiple
employer welfare arrangements.
``Subpart B--Other Requirements
``Sec. 711. Standards relating to benefits for mothers and newborns.
``Subpart C--General Provisions
``Sec. 731. Preemption; State flexibility; construction.
``Sec. 732. Special rules relating to group health plans.
``Sec. 733. Definitions.
``Sec. 734. Regulations.''.
(c) Effective Date.--The amendments made by this section shall
apply with respect to group health plans for plan years beginning on or
after January 1, 1998.

1c56b1474c43150f41e74ec84421bbe392e3032a200782e32190a21004d0f61f

the Group Market.--(a) In General.--Title XXVII of the Public Health
Service Act (as added by section 102 of the Health Insurance
Portability and Accountability Act of 1996) is amended--
(1) by amending the title heading to read as follows:
``TITLE XXVII--REQUIREMENTS RELATING TO HEALTH INSURANCE COVERAGE'';
(2) by redesignating subparts 2 and 3 of part A as subparts 3
and 4 of such part;
(3) by inserting after subpart 1 of part A the following new
subpart:
``Subpart 2--Other Requirements
``SEC. 2704. STANDARDS RELATING TO BENEFITS FOR MOTHERS AND NEWBORNS.
``(a) Requirements for Minimum Hospital Stay Following Birth.--
``(1) In general.--A group health plan, and a health insurance
issuer offering group health insurance coverage, may not--
``(A) except as provided in paragraph (2)--
``(i) restrict benefits for any hospital length of stay
in connection with childbirth for the mother or newborn
child, following a normal vaginal delivery, to less than 48
hours, or
``(ii) restrict benefits for any hospital length of
stay in connection with childbirth for the mother or
newborn child, following a cesarean section, to less than
96 hours, or
``(B) require that a provider obtain authorization from the
plan or the issuer for prescribing any length of stay required
under subparagraph (A) (without regard to paragraph (2)).
``(2) Exception.--Paragraph (1)(A) shall not apply in
connection with any group health plan or health insurance issuer in
any case in which the decision to discharge the mother or her
newborn child prior to the expiration of the minimum length of stay
otherwise required under paragraph (1)(A) is made by an attending
provider in consultation with the mother.
``(b) Prohibitions.--A group health plan, and a health insurance
issuer offering group health insurance coverage in connection with a
group health plan, may not--
``(1) deny to the mother or her newborn child eligibility, or
continued eligibility, to enroll or to renew coverage under the
terms of the plan, solely for the purpose of avoiding the
requirements of this section;
``(2) provide monetary payments or rebates to mothers to
encourage such mothers to accept less than the minimum protections
available under this section;
``(3) penalize or otherwise reduce or limit the reimbursement
of an attending provider because such provider provided care to an
individual participant or beneficiary in accordance with this
section;
``(4) provide incentives (monetary or otherwise) to an
attending provider to induce such provider to provide care to an
individual participant or beneficiary in a manner inconsistent with
this section; or
``(5) subject to subsection (c)(3), restrict benefits for any
portion of a period within a hospital length of stay required under
subsection (a) in a manner which is less favorable than the
benefits provided for any preceding portion of such stay.
``(c) Rules of Construction.--
``(1) Nothing in this section shall be construed to require a
mother who is a participant or beneficiary--
``(A) to give birth in a hospital; or
``(B) to stay in the hospital for a fixed period of time
following the birth of her child.
``(2) This section shall not apply with respect to any group
health plan, or any group health insurance coverage offered by a
health insurance issuer, which does not provide benefits for
hospital lengths of stay in connection with childbirth for a mother
or her newborn child.
``(3) Nothing in this section shall be construed as preventing
a group health plan or issuer from imposing deductibles,
coinsurance, or other cost-sharing in relation to benefits for
hospital lengths of stay in connection with childbirth for a mother
or newborn child under the plan (or under health insurance coverage
offered in connection with a group health plan), except that such
coinsurance or other cost-sharing for any portion of a period
within a hospital length of stay required under subsection (a) may
not be greater than such coinsurance or cost-sharing for any
preceding portion of such stay.
``(d) Notice.--A group health plan under this part shall comply
with the notice requirement under section 711(d) of the Employee
Retirement Income Security Act of 1974 with respect to the requirements
of this section as if such section applied to such plan.
``(e) Level and Type of Reimbursements.--Nothing in this section
shall be construed to prevent a group health plan or a health insurance
issuer offering group health insurance coverage from negotiating the
level and type of reimbursement with a provider for care provided in
accordance with this section.
``(f) Preemption; Exception for Health Insurance Coverage in
Certain States.--
``(1) In general.--The requirements of this section shall not
apply with respect to health insurance coverage if there is a State
law (as defined in section 2723(d)(1)) for a State that regulates
such coverage that is described in any of the following
subparagraphs:
``(A) Such State law requires such coverage to provide for
at least a 48-hour hospital length of stay following a normal
vaginal delivery and at least a 96-hour hospital length of stay
following a cesarean section.
``(B) Such State law requires such coverage to provide for
maternity and pediatric care in accordance with guidelines
established by the American College of Obstetricians and
Gynecologists, the American Academy of Pediatrics, or other
established professional medical associations.
``(C) Such State law requires, in connection with such
coverage for maternity care, that the hospital length of stay
for such care is left to the decision of (or required to be
made by) the attending provider in consultation with the
mother.
``(2) Construction.--Section 2723(a)(1) shall not be construed
as superseding a State law described in paragraph (1).''.
(b) Conforming Amendments.--
(1) Section 2721 of such Act (as added by section 102 of the
Health Insurance Portability and Accountability Act of 1996) is
amended--
(A) in subsection (a), by striking ``subparts 1 and 2'' and
inserting ``subparts 1 and 3'', and
(B) in subsections (b) through (d), by striking ``subparts
1 and 2'' each place it appears and inserting ``subparts 1
through 3''.
(2) Section 2723(c) of such Act (as added by section 102 of the
Health Insurance Portability and Accountability Act of 1996) is
amended by inserting ``(other than section 2704)'' after ``part''.
(c) Effective Date.--The amendments made by this section shall
apply with respect to group health plans for plan years beginning on or
after January 1, 1998.

107e071d6d68d0fa2d7bd291ef7a31be8e6947ed7c0c796929f7fdf8092f4f27

the Individual Market.--(a) In General.--Part B of title XXVII of the
Public Health Service Act (as added by section 111 of the Health
Insurance Portability and Accountability Act of 1996) is amended--
(1) by inserting after the part heading the following:
``Subpart 1--Portability, Access, and Renewability Requirements'';
(2) by redesignating sections 2745, 2746, and 2747 as sections
2761, 2762, and 2763, respectively;
(3) by inserting before section 2761 (as so redesignated) the
following:
``Subpart 3--General Provisions''; and
(4) by inserting after section 2744 the following:
``Subpart 3--Other Requirements
``SEC. 2751. STANDARDS RELATING TO BENEFITS FOR MOTHERS AND NEWBORNS.
``(a) In General.--The provisions of section 2704 (other than
subsections (d) and (f)) shall apply to health insurance coverage
offered by a health insurance issuer in the individual market in the
same manner as it applies to health insurance coverage offered by a
health insurance issuer in connection with a group health plan in the
small or large group market.
``(b) Notice Requirement.--A health insurance issuer under this
part shall comply with the notice requirement under section 711(d) of
the Employee Retirement Income Security Act of 1974 with respect to the
requirements referred to in subsection (a) as if such section applied
to such issuer and such issuer were a group health plan.
``(c) Preemption; Exception for Health Insurance Coverage in
Certain States.--
``(1) In general.--The requirements of this section shall not
apply with respect to health insurance coverage if there is a State
law (as defined in section 2723(d)(1)) for a State that regulates
such coverage that is described in any of the following
subparagraphs:
``(A) Such State law requires such coverage to provide for
at least a 48-hour hospital length of stay following a normal
vaginal delivery and at least a 96-hour hospital length of stay
following a cesarean section.
``(B) Such State law requires such coverage to provide for
maternity and pediatric care in accordance with guidelines
established by the American College of Obstetricians and
Gynecologists, the American Academy of Pediatrics, or other
established professional medical associations.
``(C) Such State law requires, in connection with such
coverage for maternity care, that the hospital length of stay
for such care is left to the decision of (or required to be
made by) the attending provider in consultation with the
mother.
``(2) Construction.--Section 2762(a) shall not be construed as
superseding a State law described in paragraph (1).''.
(b) Conforming Amendments.--Such part (as so added) is further
amended as follows:
(1) In section 2744(a)(1), strike ``2746(b)'' and insert
``2762(b)''.
(2) In section 2745(a)(1) (before redesignation under
subsection (a)(1)), strike ``2746'' and insert ``2762''.
(3) In section 2746(b) (before redesignation under subsection
(a)(1))--
(A) by inserting ``(1)'' after the dash, and
(B) by adding at the end the following:
``(2) Nothing in this part (other than section 2751) shall be
construed as requiring health insurance coverage offered in the
individual market to provide specific benefits under the terms of such
coverage.''.
(c) Effective Date.--The amendments made by this section shall
apply with respect to health insurance coverage offered, sold, issued,
renewed, in effect, or operated in the individual market on or after
January 1, 1998.

414996ab1f459d4104fabb4aa42e747d0f8f626d282843f9b5acb675779eea34

Findings.--Congress finds that--
(1) childbirth is one part of a continuum of experience that
includes prepregnancy, pregnancy and prenatal care, labor and
delivery, the immediate postpartum period, and a longer period of
adjustment for the newborn, the mother, and the family;
(2) health care practices across this continuum are changing in
response to health care financing and delivery system changes,
science and clinical research, and patient preferences; and
(3) there is a need--
(A) to examine the issues and consequences associated with
the length of hospital stays following childbirth;
(B) to examine the follow-up practices for mothers and
newborns used in conjunction with shorter hospital stays;
(C) to identify appropriate health care practices and
procedures with regard to the hospital discharge of newborns
and mothers;
(D) to examine the extent to which such care is affected by
family and environmental factors; and
(E) to examine the content of care during hospital stays
following childbirth.
(b) Advisory Panel.--
(1) In general.--Not later than 90 days after the date of
enactment of this Act, the Secretary of Health and Human Services
(in this section referred to as the ``Secretary'') shall establish
an advisory panel (referred to in this section as the ``advisory
panel'')--
(A) to guide and review methods, procedures, and data
collection necessary to conduct the study described in
subsection (c) in a manner that is intended to enhance the
quality, safety, and effectiveness of health care services
provided to mothers and newborns;
(B) to develop a consensus among the members of the
advisory panel regarding the appropriateness of the specific
requirements of this title; and
(C) to prepare and submit to the Secretary, as part of the
report of the Secretary submitted under subsection (d), a
report summarizing the consensus (if any) developed under
subparagraph (B) or the reasons for not reaching such a
consensus.
(2) Participation.--
(A) Department representatives.--The Secretary shall ensure
that representatives from within the Department of Health and
Human Services that have expertise in the area of maternal and
child health or in outcomes research are appointed to the
advisory panel.
(B) Representatives of public and private sector
entities.--
(i) In general.--The Secretary shall ensure that
members of the advisory panel include representatives of
public and private sector entities having knowledge or
experience in one or more of the following areas:
(I) Patient care.
(II) Patient education.
(III) Quality assurance.
(IV) Outcomes research.
(V) Consumer issues.
(ii) Requirement.--The panel shall include
representatives of each of the following categories:
(I) Health care practitioners.
(II) Health plans.
(III) Hospitals.
(IV) Employers.
(V) States.
(VI) Consumers.
(c) Studies.--
(1) In general.--The Secretary shall conduct a study of--
(A) the factors affecting the continuum of care with
respect to maternal and child health care, including outcomes
following childbirth;
(B) the factors determining the length of hospital stay
following childbirth;
(C) the diversity of negative or positive outcomes
affecting mothers, infants, and families;
(D) the manner in which post natal care has changed over
time and the manner in which that care has adapted or related
to changes in the length of hospital stay, taking into
account--
(i) the types of post natal care available and the
extent to which such care is accessed; and
(ii) the challenges associated with providing post
natal care to all populations, including vulnerable
populations, and solutions for overcoming these challenges;
and
(E) the financial incentives that may--
(i) impact the health of newborns and mothers; and
(ii) influence the clinical decisionmaking of health
care providers.
(2) Resources.--The Secretary shall provide to the advisory
panel the resources necessary to carry out the duties of the
advisory panel.
(d) Reports.--
(1) In general.--The Secretary shall prepare and submit to the
Committee on Labor and Human Resources of the Senate and the
Committee on Commerce of the House of Representatives a report that
contains--
(A) a summary of the study conducted under sub- section
(c);
(B) a summary of the best practices used in the public and
private sectors for the care of newborns and mothers;
(C) recommendations for improvements in prenatal care, post
natal care, delivery and follow-up care, and whether the
implementation of such improvements should be accomplished by
the private health care sector, Federal or State governments,
or any combination thereof; and
(D) limitations on the databases in existence on the date
of the enactment of this Act.
(2) Deadlines.--The Secretary shall prepare and submit to the
Committees referred to in paragraph (1)--
(A) an initial report concerning the study conducted under
subsection (c) and elements described in paragraph (1), not
later than 18 months after the date of the enactment of this
Act;
(B) an interim report concerning such study and elements
not later than 3 years after the date of the enactment of this
Act; and
(C) a final report concerning such study and elements not
later than 5 years after the date of the enactment of this Act.
(e) Termination of Panel.--The advisory panel shall terminate on
the date that occurs 60 days after the date on which the last report is
submitted under subsection (d).
BENEFITS

f5207dcd9fe75e79004931e458e65d92041e75153a0682931bf66260afac1163

cf17b47775766edc9aa491f296aeb8678cf5b33db20125c55e4a3e211b7936a0

TITLE VII

-PARITY IN THE APPLICATION OF CERTAIN LIMITS TO MENTAL HEALTH

of 1974.--(a) In General.--Subpart B of part 7 of subtitle B of title I
of the Employee Retirement Income Security Act of 1974 (as added by
section 603(a)) is amended by adding at the end the following new
section:
``SEC. 712. PARITY IN THE APPLICATION OF CERTAIN LIMITS TO MENTAL
HEALTH BENEFITS.
``(a) In General.--
``(1) Aggregate lifetime limits.--In the case of a group health
plan (or health insurance coverage offered in connection with such
a plan) that provides both medical and surgical benefits and mental
health benefits--
``(A) No lifetime limit.--If the plan or coverage does not
include an aggregate lifetime limit on substantially all
medical and surgical benefits, the plan or coverage may not
impose any aggregate lifetime limit on mental health benefits.
``(B) Lifetime limit.--If the plan or coverage includes an
aggregate lifetime limit on substantially all medical and
surgical benefits (in this paragraph referred to as the
`applicable lifetime limit'), the plan or coverage shall
either--
``(i) apply the applicable lifetime limit both to the
medical and surgical benefits to which it otherwise would
apply and to mental health benefits and not distinguish in
the application of such limit between such medical and
surgical benefits and mental health benefits; or
``(ii) not include any aggregate lifetime limit on
mental health benefits that is less than the applicable
lifetime limit.
``(C) Rule in case of different limits.--In the case of a
plan or coverage that is not described in subparagraph (A) or
(B) and that includes no or different aggregate lifetime limits
on different categories of medical and surgical benefits, the
Secretary shall establish rules under which subparagraph (B) is
applied to such plan or coverage with respect to mental health
benefits by substituting for the applicable lifetime limit an
average aggregate lifetime limit that is computed taking into
account the weighted average of the aggregate lifetime limits
applicable to such categories.
``(2) Annual limits.--In the case of a group health plan (or
health insurance coverage offered in connection with such a plan)
that provides both medical and surgical benefits and mental health
benefits--
``(A) No annual limit.--If the plan or coverage does not
include an annual limit on substantially all medical and
surgical benefits, the plan or coverage may not impose any
annual limit on mental health benefits.
``(B) Annual limit.--If the plan or coverage includes an
annual limit on substantially all medical and surgical benefits
(in this paragraph referred to as the `applicable annual
limit'), the plan or coverage shall either--
``(i) apply the applicable annual limit both to medical
and surgical benefits to which it otherwise would apply and
to mental health benefits and not distinguish in the
application of such limit between such medical and surgical
benefits and mental health benefits; or
``(ii) not include any annual limit on mental health
benefits that is less than the applicable annual limit.
``(C) Rule in case of different limits.--In the case of a
plan or coverage that is not described in subparagraph (A) or
(B) and that includes no or different annual limits on
different categories of medical and surgical benefits, the
Secretary shall establish rules under which subparagraph (B) is
applied to such plan or coverage with respect to mental health
benefits by substituting for the applicable annual limit an
average annual limit that is computed taking into account the
weighted average of the annual limits applicable to such
categories.
``(b) Construction.--Nothing in this section shall be construed--
``(1) as requiring a group health plan (or health insurance
coverage offered in connection with such a plan) to provide any
mental health benefits; or
``(2) in the case of a group health plan (or health insurance
coverage offered in connection with such a plan) that provides
mental health benefits, as affecting the terms and conditions
(including cost sharing, limits on numbers of visits or days of
coverage, and requirements relating to medical necessity) relating
to the amount, duration, or scope of mental health benefits under
the plan or coverage, except as specifically provided in subsection
(a) (in regard to parity in the imposition of aggregate lifetime
limits and annual limits for mental health benefits).
``(c) Exemptions.--
``(1) Small employer exemption.--
``(A) In general.--This section shall not apply to any
group health plan (and group health insurance coverage offered
in connection with a group health plan) for any plan year of a
small employer.
``(B) Small employer.--For purposes of subparagraph (A),
the term `small employer' means, in connection with a group
health plan with respect to a calendar year and a plan year, an
employer who employed an average of at least 2 but not more
than 50 employees on business days during the preceding
calendar year and who employs at least 2 employees on the first
day of the plan year.
``(C) Application of certain rules in determination of
employer size.--For purposes of this paragraph--
``(i) Application of aggregation rule for employers.--
Rules similar to the rules under subsections (b), (c), (m),
and (o) of section 414 of the Internal Revenue Code of 1986
shall apply for purposes of treating persons as a single
employer.
``(ii) Employers not in existence in preceding year.--
In the case of an employer which was not in existence
throughout the preceding calendar year, the determination
of whether such employer is a small employer shall be based
on the average number of employees that it is reasonably
expected such employer will employ on business days in the
current calendar year.
``(iii) Predecessors.--Any reference in this paragraph
to an employer shall include a reference to any predecessor
of such employer.
``(2) Increased cost exemption.--This section shall not apply
with respect to a group health plan (or health insurance coverage
offered in connection with a group health plan) if the application
of this section to such plan (or to such coverage) results in an
increase in the cost under the plan (or for such coverage) of at
least 1 percent.
``(d) Separate Application to Each Option Offered.--In the case of
a group health plan that offers a participant or beneficiary two or
more benefit package options under the plan, the requirements of this
section shall be applied separately with respect to each such option.
``(e) Definitions.--For purposes of this section--
``(1) Aggregate lifetime limit.--The term `aggregate lifetime
limit' means, with respect to benefits under a group health plan or
health insurance coverage, a dollar limitation on the total amount
that may be paid with respect to such benefits under the plan or
health insurance coverage with respect to an individual or other
coverage unit.
``(2) Annual limit.--The term `annual limit' means, with
respect to benefits under a group health plan or health insurance
coverage, a dollar limitation on the total amount of benefits that
may be paid with respect to such benefits in a 12-month period
under the plan or health insurance coverage with respect to an
individual or other coverage unit.
``(3) Medical or surgical benefits.--The term `medical or
surgical benefits' means benefits with respect to medical or
surgical services, as defined under the terms of the plan or
coverage (as the case may be), but does not include mental health
benefits.
``(4) Mental health benefits.--The term `mental health
benefits' means benefits with respect to mental health services, as
defined under the terms of the plan or coverage (as the case may
be), but does not include benefits with respect to treatment of
substance abuse or chemical dependency.
``(f) Sunset.--This section shall not apply to benefits for
services furnished on or after September 30, 2001.''.
(b) Clerical Amendment.--The table of contents in section 1 of such
Act, as amended by section 603 of this Act, is amended by inserting
after the item relating to section 711 the following new item:
``Sec. 712. Parity in the application of certain limits to mental health
benefits.''.
(c) Effective Date.--The amendments made by this section shall
apply with respect to group health plans for plan years beginning on or
after January 1, 1998.

1d605a367e690a68a56f8b31863c4889367f268489763c7c54eba1fa6907b63e

the Group Market.--(a) In General.--Subpart 2 of part A of title XXVII
of the Public Health Service Act (as added by section 604(a)) is
amended by adding at the end the following new section:
``SEC. 2705. PARITY IN THE APPLICATION OF CERTAIN LIMITS TO MENTAL
HEALTH BENEFITS.
``(a) In General.--
``(1) Aggregate lifetime limits.--In the case of a group health
plan (or health insurance coverage offered in connection with such
a plan) that provides both medical and surgical benefits and mental
health benefits--
``(A) No lifetime limit.--If the plan or coverage does not
include an aggregate lifetime limit on substantially all
medical and surgical benefits, the plan or coverage may not
impose any aggregate lifetime limit on mental health benefits.
``(B) Lifetime limit.--If the plan or coverage includes an
aggregate lifetime limit on substantially all medical and
surgical benefits (in this paragraph referred to as the
`applicable lifetime limit'), the plan or coverage shall
either--
``(i) apply the applicable lifetime limit both to the
medical and surgical benefits to which it otherwise would
apply and to mental health benefits and not distinguish in
the application of such limit between such medical and
surgical benefits and mental health benefits; or
``(ii) not include any aggregate lifetime limit on
mental health benefits that is less than the applicable
lifetime limit.
``(C) Rule in case of different limits.--In the case of a
plan or coverage that is not described in subparagraph (A) or
(B) and that includes no or different aggregate lifetime limits
on different categories of medical and surgical benefits, the
Secretary shall establish rules under which subparagraph (B) is
applied to such plan or coverage with respect to mental health
benefits by substituting for the applicable lifetime limit an
average aggregate lifetime limit that is computed taking into
account the weighted average of the aggregate lifetime limits
applicable to such categories.
``(2) Annual limits.--In the case of a group health plan (or
health insurance coverage offered in connection with such a plan)
that provides both medical and surgical benefits and mental health
benefits--
``(A) No annual limit.--If the plan or coverage does not
include an annual limit on substantially all medical and
surgical benefits, the plan or coverage may not impose any
annual limit on mental health benefits.
``(B) Annual limit.--If the plan or coverage includes an
annual limit on substantially all medical and surgical benefits
(in this paragraph referred to as the `applicable annual
limit'), the plan or coverage shall either--
``(i) apply the applicable annual limit both to medical
and surgical benefits to which it otherwise would apply and
to mental health benefits and not distinguish in the
application of such limit between such medical and surgical
benefits and mental health benefits; or
``(ii) not include any annual limit on mental health
benefits that is less than the applicable annual limit.
``(C) Rule in case of different limits.--In the case of a
plan or coverage that is not described in subparagraph (A) or
(B) and that includes no or different annual limits on
different categories of medical and surgical benefits, the
Secretary shall establish rules under which subparagraph (B) is
applied to such plan or coverage with respect to mental health
benefits by substituting for the applicable annual limit an
average annual limit that is computed taking into account the
weighted average of the annual limits applicable to such
categories.
``(b) Construction.--Nothing in this section shall be construed--
``(1) as requiring a group health plan (or health insurance
coverage offered in connection with such a plan) to provide any
mental health benefits; or
``(2) in the case of a group health plan (or health insurance
coverage offered in connection with such a plan) that provides
mental health benefits, as affecting the terms and conditions
(including cost sharing, limits on numbers of visits or days of
coverage, and requirements relating to medical necessity) relating
to the amount, duration, or scope of mental health benefits under
the plan or coverage, except as specifically provided in subsection
(a) (in regard to parity in the imposition of aggregate lifetime
limits and annual limits for mental health benefits).
``(c) Exemptions.--
``(1) Small employer exemption.--This section shall not apply
to any group health plan (and group health insurance coverage
offered in connection with a group health plan) for any plan year
of a small employer.
``(2) Increased cost exemption.--This section shall not apply
with respect to a group health plan (or health insurance coverage
offered in connection with a group health plan) if the application
of this section to such plan (or to such coverage) results in an
increase in the cost under the plan (or for such coverage) of at
least 1 percent.
``(d) Separate Application to Each Option Offered.--In the case of
a group health plan that offers a participant or beneficiary two or
more benefit package options under the plan, the requirements of this
section shall be applied separately with respect to each such option.
``(e) Definitions.--For purposes of this section--
``(1) Aggregate lifetime limit.--The term `aggregate lifetime
limit' means, with respect to benefits under a group health plan or
health insurance coverage, a dollar limitation on the total amount
that may be paid with respect to such benefits under the plan or
health insurance coverage with respect to an individual or other
coverage unit.
``(2) Annual limit.--The term `annual limit' means, with
respect to benefits under a group health plan or health insurance
coverage, a dollar limitation on the total amount of benefits that
may be paid with respect to such benefits in a 12-month period
under the plan or health insurance coverage with respect to an
individual or other coverage unit.
``(3) Medical or surgical benefits.--The term `medical or
surgical benefits' means benefits with respect to medical or
surgical services, as defined under the terms of the plan or
coverage (as the case may be), but does not include mental health
benefits.
``(4) Mental health benefits.--The term `mental health
benefits' means benefits with respect to mental health services, as
defined under the terms of the plan or coverage (as the case may
be), but does not include benefits with respect to treatment of
substance abuse or chemical dependency.
``(f) Sunset.--This section shall not apply to benefits for
services furnished on or after September 30, 2001.''.
(b) Effective Date.--The amendments made by this section shall
apply with respect to group health plans for plan years beginning on or
after January 1, 1998.
This Act may be cited as the ``Departments of Veterans Affairs and
Housing and Urban Development, and Independent Agencies Appropriations
Act, 1997''.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.

b03cce0f85991324ab2f1e3766c59d20b5c6429d2d6d9c89a8899263b7859cc6

Appropriations bill FY97, Veterans Affairs, HUD — HR. 3666

Other Sections

TITLE IV

TITLE VI

TITLE VII

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