Pub Law 105-277 Division A


[DOCID: f:publ277.105]

[[Page 112 STAT. 2681]]

      

      
*Public Law 105-277
105th Congress



            DIVISION B--EMERGENCY SUPPLEMENTAL APPROPRIATIONS

     TITLE I--MILITARY READINESS AND OVERSEAS CONTINGENCY OPERATIONS

                                CHAPTER 1

                     DEPARTMENT OF DEFENSE--MILITARY

                           MILITARY PERSONNEL

                        Military Personnel, Army

    For an additional amount for ``Military Personnel, Army'', 
$10,000,000: Provided, That the entire amount is designated by the 
Congress as an emergency requirement pursuant to section 251(b)(2)(A) of 
the Balanced Budget and Emergency Deficit Control Act of 1985, as 
amended: Provided further, That the entire amount shall be available 
only to the extent that an official budget request for $10,000,000, that 
includes designation of the entire amount of the request as an emergency 
requirement as defined in the Balanced Budget and Emergency Deficit 
Control Act of 1985, as amended, is transmitted by the President to the 
Congress.

                        Military Personnel, Navy

    For an additional amount for ``Military Personnel, Navy'', 
$33,300,000: Provided, That the entire amount is designated by the 
Congress as an emergency requirement pursuant to section 251(b)(2)(A) of 
the Balanced Budget and Emergency Deficit Control Act of 1985, as 
amended: Provided further, That the entire amount shall be available 
only to the extent that an official budget request for $33,300,000, that 
includes designation of the entire amount of the request as an emergency 
requirement as defined in the Balanced Budget and Emergency Deficit 
Control Act of 1985, as amended, is transmitted by the President to the 
Congress.

                    Military Personnel, Marine Corps

    For an additional amount for ``Military Personnel, Marine Corps'', 
$8,900,000: Provided, That the entire amount is designated by the 
Congress as an emergency requirement pursuant to section 251(b)(2)(A) of 
the Balanced Budget and Emergency Deficit Control Act of 1985, as 
amended: Provided further, That the entire amount shall be available 
only to the extent that an official budget request for $8,900,000, that 
includes designation of the entire amount of the request as an emergency 
requirement as defined in the Balanced Budget and Emergency Deficit 
Control Act of 1985, as amended, is transmitted by the President to the 
Congress.

[[Page 112 STAT. 2681-554]]

                         Reserve Personnel, Navy

    For an additional amount for ``Reserve Personnel, Navy'', 
$10,000,000: Provided, That the entire amount is designated by the 
Congress as an emergency requirement pursuant to section 251(b)(2)(A) of 
the Balanced Budget and Emergency Deficit Control Act of 1985, as 
amended: Provided further, That the entire amount shall be available 
only to the extent that an official budget request for $10,000,000, that 
includes designation of the entire amount of the request as an emergency 
requirement as defined in the Balanced Budget and Emergency Deficit 
Control Act of 1985, as amended, is transmitted by the President to the 
Congress.

                        OPERATION AND MAINTENANCE

                     Operation and Maintenance, Army

    For an additional amount for ``Operation and Maintenance, Army'', 
$314,500,000: Provided, That the entire amount is designated by the 
Congress as an emergency requirement pursuant to section 251(b)(2)(A) of 
the Balanced Budget and Emergency Deficit Control Act of 1985, as 
amended: Provided further, That the entire amount shall be available 
only to the extent that an official budget request for $314,500,000, 
that includes designation of the entire amount of the request as an 
emergency requirement as defined in the Balanced Budget and Emergency 
Deficit Control Act of 1985, as amended, is transmitted by the President 
to the Congress.

                     Operation and Maintenance, Navy

    For an additional amount for ``Operation and Maintenance, Navy'', 
$232,600,000: Provided, That the entire amount is designated by the 
Congress as an emergency requirement pursuant to section 251(b)(2)(A) of 
the Balanced Budget and Emergency Deficit Control Act of 1985, as 
amended: Provided further, That the entire amount shall be available 
only to the extent that an official budget request for $232,600,000, 
that includes designation of the entire amount of the request as an 
emergency requirement as defined in the Balanced Budget and Emergency 
Deficit Control Act of 1985, as amended, is transmitted by the President 
to the Congress.

                 Operation and Maintenance, Marine Corps

    For an additional amount for ``Operation and Maintenance, Marine 
Corps'', $52,400,000: Provided, That the entire amount is designated by 
the Congress as an emergency requirement pursuant to section 
251(b)(2)(A) of the Balanced Budget and Emergency Deficit Control Act of 
1985, as amended: Provided further, That the entire amount shall be 
available only to the extent that an official budget request for 
$52,400,000, that includes designation of the entire amount of the 
request as an emergency requirement as defined in the Balanced Budget 
and Emergency Deficit Control Act of 1985, as amended, is transmitted by 
the President to the Congress.

[[Page 112 STAT. 2681-555]]

                  Operation and Maintenance, Air Force

    For an additional amount for ``Operation and Maintenance, Air 
Force'', $303,000,000: Provided, That the entire amount is designated by 
the Congress as an emergency requirement pursuant to section 
251(b)(2)(A) of the Balanced Budget and Emergency Deficit Control Act of 
1985, as amended: Provided further, That the entire amount shall be 
available only to the extent that an official budget request for 
$303,000,000, that includes designation of the entire amount of the 
request as an emergency requirement as defined in the Balanced Budget 
and Emergency Deficit Control Act of 1985, as amended, is transmitted by 
the President to the Congress.

                 Operation and Maintenance, Defense-Wide

    For an additional amount for ``Operation and Maintenance, Defense-
Wide'', $1,496,600,000, to remain available for obligation until 
expended: Provided, That the Secretary of Defense may transfer these 
funds to appropriations accounts for operation and maintenance; 
procurement; and research, development, test and evaluation: Provided 
further, That the funds transferred shall be merged with and be 
available for the same purposes and for the same time period as the 
appropriation to which transferred: Provided further, That the transfer 
authority provided under this heading is in addition to any other 
transfer authority available to the Department of Defense: Provided 
further, That the entire amount made available under this heading is 
designated by the Congress as an emergency requirement pursuant to 
section 251(b)(2)(A) of the Balanced Budget and Emergency Deficit 
Control Act of 1985, as amended: Provided further, That the entire 
amount shall be available only to the extent that an official budget 
request for a specific dollar amount, that includes designation of the 
entire amount of the request as an emergency requirement as defined in 
the Balanced Budget and Emergency Deficit Control Act of 1985, as 
amended, is transmitted by the President to the Congress.

                 Operation and Maintenance, Army Reserve

    For an additional amount for ``Operation and Maintenance, Army 
Reserve'', $3,000,000: Provided, That the entire amount is designated by 
the Congress as an emergency requirement pursuant to section 
251(b)(2)(A) of the Balanced Budget and Emergency Deficit Control Act of 
1985, as amended: Provided further, That the entire amount shall be 
available only to the extent that an official budget request for 
$3,000,000, that includes designation of the entire amount of the 
request as an emergency requirement as defined in the Balanced Budget 
and Emergency Deficit Control Act of 1985, as amended, is transmitted by 
the President to the Congress.

             Operation and Maintenance, Marine Corps Reserve

    For an additional amount for ``Operation and Maintenance, Marine 
Corps Reserve'', $3,300,000: Provided, That the entire amount is 
designated by the Congress as an emergency requirement

[[Page 112 STAT. 2681-556]]

pursuant to section 251(b)(2)(A) of the Balanced Budget and Emergency 
Deficit Control Act of 1985, as amended: Provided further, That the 
entire amount shall be available only to the extent that an official 
budget request for $3,300,000, that includes designation of the entire 
amount of the request as an emergency requirement as defined in the 
Balanced Budget and Emergency Deficit Control Act of 1985, as amended, 
is transmitted by the President to the Congress.

              Operation and Maintenance, Air Force Reserve

    For an additional amount for ``Operation and Maintenance, Air Force 
Reserve'', $9,000,000: Provided, That the entire amount is designated by 
the Congress as an emergency requirement pursuant to section 
251(b)(2)(A) of the Balanced Budget and Emergency Deficit Control Act of 
1985, as amended: Provided further, That the entire amount shall be 
available only to the extent that an official budget request for 
$9,000,000, that includes designation of the entire amount of the 
request as an emergency requirement as defined in the Balanced Budget 
and Emergency Deficit Control Act of 1985, as amended, is transmitted by 
the President to the Congress.

             Operation and Maintenance, Army National Guard

    For an additional amount for ``Operation and Maintenance, Army 
National Guard'', $50,000,000: Provided, That the entire amount is 
designated by the Congress as an emergency requirement pursuant to 
section 251(b)(2)(A) of the Balanced Budget and Emergency Deficit 
Control Act of 1985, as amended: Provided further, That the entire 
amount shall be available only to the extent that an official budget 
request for $50,000,000, that includes designation of the entire amount 
of the request as an emergency requirement as defined in the Balanced 
Budget and Emergency Deficit Control Act of 1985, as amended, is 
transmitted by the President to the Congress.

              Operation and Maintenance, Air National Guard

    For an additional amount for ``Operation and Maintenance, Air 
National Guard'', $21,000,000: Provided, That the entire amount is 
designated by the Congress as an emergency requirement pursuant to 
section 251(b)(2)(A) of the Balanced Budget and Emergency Deficit 
Control Act of 1985, as amended: Provided further, That the entire 
amount shall be available only to the extent that an official budget 
request for $21,000,000, that includes designation of the entire amount 
of the request as an emergency requirement as defined in the Balanced 
Budget and Emergency Deficit Control Act of 1985, as amended, is 
transmitted by the President to the Congress.

              Overseas Contingency Operations Transfer Fund

    For an additional amount for ``Overseas Contingency Operations 
Transfer Fund'', $1,858,600,000, to remain available for obligation 
until expended: Provided, That of the amounts provided under

[[Page 112 STAT. 2681-557]]

this heading, the following amounts shall be transferred to the 
specified accounts:
            ``Military Personnel, Army'', $310,600,000;
            ``Military Personnel, Navy'', $9,275,000;
            ``Military Personnel, Marine Corps'', $2,748,000;
            ``Military Personnel, Air Force'', $17,000,000; and
            ``Reserve Personnel, Navy'', $2,295,000:

Provided further, That of the remaining funds made available under this 
heading, the Secretary of Defense may transfer these funds only to 
operation and maintenance accounts, procurement accounts, the defense 
health program appropriation, and working capital funds accounts: 
Provided further, That the funds transferred shall be merged with and 
shall be available for the same purposes and for the same time period, 
as the appropriation to which transferred: Provided further, That the 
transfer authority provided under this heading is in addition to any 
other transfer authority available to the Department of Defense: 
Provided further, That the entire amount made available under this 
heading is designated by the Congress as an emergency requirement 
pursuant to section 251(b)(2)(A) of the Balanced Budget and Emergency 
Deficit Control Act of 1985, as amended.

  Morale, Welfare and Recreation and Personnel Support for Contingency 
                               Deployments

    In addition to amounts appropriated or otherwise made available in 
the Department of Defense Appropriations Act, 1999, $50,000,000, to 
remain available for obligation until expended, is hereby made available 
only for expenses, not otherwise provided for, to provide necessary 
morale, welfare and recreation support, family support, and to sustain 
necessary retention and re-enlistment of military personnel in critical 
military occupational specialties, resulting from the deployment of 
military personnel to Bosnia and Southwest Asia: Provided, That the 
Secretary of Defense may transfer these funds only to operation and 
maintenance accounts of the military services: Provided further, That 
the funds transferred shall be available only for the purposes described 
under this heading: Provided further, That the transfer authority 
provided under this heading is in addition to any other transfer 
authority available to the Department of Defense: Provided further, That 
the entire amount made available under this heading is designated by the 
Congress as an emergency requirement pursuant to section 251(b)(2)(A) of 
the Balanced Budget and Emergency Deficit Control Act of 1985, as 
amended: Provided further, That the entire amount shall be available 
only to the extent that an official budget request for $50,000,000, that 
includes designation of the entire amount of the request as an emergency 
requirement as defined in the Balanced Budget and Emergency Deficit 
Control Act of 1985, as amended, is transmitted by the President to the 
Congress.

                  OTHER DEPARTMENT OF DEFENSE PROGRAMS

                         Defense Health Program

    For an additional amount for ``Defense Health Program'', 
$200,000,000: Provided, That these funds shall be for Operation

[[Page 112 STAT. 2681-558]]

and maintenance, of which not to exceed two per centum shall remain 
available until September 30, 2000: Provided further, That the entire 
amount is designated by the Congress as an emergency requirement 
pursuant to section 251(b)(2)(A) of the Balanced Budget and Emergency 
Deficit Control Act of 1985, as amended: Provided further, That the 
entire amount shall be available only to the extent that an official 
budget request for $200,000,000, that includes designation of the entire 
amount of the request as an emergency requirement as defined in the 
Balanced Budget and Emergency Deficit Control Act of 1985, as amended, 
is transmitted by the President to the Congress.

         Drug Interdiction and Counter-Drug Activities, Defense

    For an additional amount for ``Drug Interdiction and Counter-Drug 
Activities, Defense'', $42,000,000: Provided, That funds appropriated 
under this heading may be transferred to appropriations available to the 
Department of Defense for military personnel of the reserve components 
serving under the provisions of title 10 and title 32, United States 
Code; for Operation and maintenance; for Procurement; and for Research, 
development, test and evaluation: Provided further, That funds 
appropriated under this heading shall be available for obligation for 
the same time period and for the same purposes as the appropriation to 
which transferred: Provided further, That the transfer authority 
provided under this heading is in addition to any other transfer 
authority available to the Department of Defense: Provided further, That 
the entire amount is designated by the Congress as an emergency 
requirement pursuant to section 251(b)(2)(A) of the Balanced Budget and 
Emergency Deficit Control Act of 1985, as amended: Provided further, 
That the entire amount shall be available only to the extent that an 
official budget request for $42,000,000, that includes designation of 
the entire amount of the request as an emergency requirement as defined 
in the Balanced Budget and Emergency Deficit Control Act of 1985, as 
amended, is transmitted by the President to the Congress.

                    GENERAL PROVISIONS, THIS CHAPTER

    Sec. 101. Funds appropriated by this Act, or made available by the 
transfer of funds in this Act, for intelligence activities are deemed to 
be specifically authorized by the Congress for purposes of section 504 
of the National Security Act of 1947 (50 U.S.C. 414).
    Sec. 102. In addition to the amounts appropriated or otherwise made 
available in the Department of Defense Appropriations Act, 1999, 
$1,000,000,000, to remain available for obligation until expended, is 
hereby appropriated under the heading ``Research, Development, Test and 
Evaluation, Defense-Wide'': Provided, That these funds shall be made 
available only for the enhanced testing, accelerated development, 
construction, and integration and infrastructure efforts in support of 
ballistic missile defense systems: Provided further, That the entire 
amount made available in this section is designated by the Congress as 
an emergency requirement pursuant to section 251(b)(2)(A) of the 
Balanced Budget and Emergency Deficit Control Act of 1985, as amended: 
Provided further,

[[Page 112 STAT. 2681-559]]

That the entire amount shall be available only to the extent that an 
official budget request for a specific dollar amount, that includes 
designation of the entire amount of the request as an emergency 
requirement as defined in the Balanced Budget and Emergency Deficit 
Control Act of 1985, as amended, is transmitted by the President to the 
Congress.
    Sec. 103. In addition to amounts appropriated or otherwise made 
available in the Department of Defense Appropriations Act, 1999, 
$259,853,000 is hereby appropriated to the Department of Defense, only 
for emergency expenses incurred at United States military facilities or 
installations in the United States or overseas directly resulting from 
storm damage or other natural disasters, as follows:
            ``Military Personnel, Marine Corps'', $232,000;
            ``Reserve Personnel, Army'', $343,000;
            ``Reserve Personnel, Navy'', $100,000;
            ``Operation and Maintenance, Army'', $139,056,000;
            ``Operation and Maintenance, Navy'', $57,179,000;
            ``Operation and Maintenance, Marine Corps'', $8,470,000;
            ``Operation and Maintenance, Air Force'', $34,254,000;
            ``Operation and Maintenance, Army Reserve'', $853,000;
            ``Operation and Maintenance, Navy Reserve'', $5,058,000;
            ``Operation and Maintenance, Army National Guard'', 
        $5,750,000;
            ``Operation and Maintenance, Air National Guard'', 
        $4,355,000;
            ``Defense Health Program'', $2,120,000; and
            ``Navy Working Capital Fund'', $2,083,000:

Provided, That these funds may be used to execute projects or programs 
that were deferred in order to carry out emergency repairs resulting 
from such storm damage or natural disasters: Provided further, That the 
entire amount made available in this section is designated by the 
Congress as an emergency requirement pursuant to section 251(b)(2)(A) of 
the Balanced Budget and Emergency Deficit Control Act of 1985, as 
amended: Provided further, That of the amounts provided in this section, 
$153,551,000 shall be available only to the extent that an official 
budget request for a specific dollar amount, that includes designation 
of the entire amount of the request as an emergency requirement as 
defined in the Balanced Budget and Emergency Deficit Control Act of 
1985, as amended, is transmitted by the President to the Congress: 
Provided further, That of the amount referred to in the third proviso in 
this section, up to $29,454,000 may be transferred from ``Operation and 
Maintenance, Army'', to ``Military Construction, Army''.
    Sec. 104. In addition to amounts provided in this Act, $2,000,000 is 
hereby appropriated for ``Defense Health Program'', to remain available 
for obligation until expended: Provided, That notwithstanding any other 
provision of law, these funds shall be available only for a grant to the 
Fisher House Foundation, Inc., only for the construction and furnishing 
of additional Fisher Houses to meet the needs of military family members 
when confronted with the illness or hospitalization of an eligible 
military beneficiary.
    Sec. 105. Section 8136 of the Department of Defense Appropriations 
Act, 1999, is amended by striking out ``$502,000,000'' and inserting in 
lieu thereof ``$569,000,000'', and further amended by striking out 
``$176,000,000'' and inserting in lieu thereof ``$243,000,000''.

[[Page 112 STAT. 2681-560]]

                                CHAPTER 2

                          DEPARTMENT OF ENERGY

                    Atomic Energy Defense Activities

    For an additional amount for ``Other Defense Activities'', for 
expenditures in the Russian Federation to implement a United States/
Russian accord for the disposition of excess weapons plutonium, 
$200,000,000, to remain available until expended: Provided, That none of 
the funds may be obligated until the Department of Energy submits to 
Congress a detailed budget justification for use of these funds, and the 
proposal has been approved by the House and Senate Committees on 
Appropriations: Provided further, That the entire amount shall be 
available only to the extent an official budget request for a specific 
dollar amount that includes designation of the entire amount of the 
request as an emergency requirement as defined by the Balanced Budget 
and Emergency Deficit Control Act of 1985, as amended, is transmitted by 
the President to the Congress: Provided further, That the entire amount 
is designated by the Congress as an emergency requirement pursuant to 
section 251(b)(2)(A) of the Balanced Budget and Emergency Deficit 
Control Act of 1985, as amended.
    For an additional amount to purchase natural uranium associated with 
the 1997 and 1998 deliveries under the United States-Russia HEU Purchase 
Agreement (hereinafter, ``the Agreement''), $325,000,000, to remain 
available until expended, which shall be available only to the extent an 
official budget request for a specific dollar amount that includes 
designation of the entire amount of the request as an emergency 
requirement as defined in the Balanced Budget and Emergency Deficit 
Control Act of 1985, as amended, is transmitted to the Congress: 
Provided, That the entire amount is designated by the Congress as an 
emergency requirement pursuant to section 251(b)(2)(A) of the Balanced 
Budget and Emergency Deficit Control Act of 1985, as amended: Provided 
further, That such uranium is located in the United States at the time 
of purchase, and shall become part of the inventory of the Department of 
Energy: Provided further, That such funds shall be available only upon 
conclusion of a long-term agreement by the Government of the Russian 
Federation and commercial partners for the sale of uranium to be derived 
from deliveries scheduled for 1999 and thereafter under the Agreement.

                                CHAPTER 3

              DEPARTMENT OF DEFENSE--MILITARY CONSTRUCTION

                       Military Construction, Army

    For an additional amount for ``Military Construction, Army'' to 
replace facilities destroyed by monsoons in the Republic of Korea during 
August of 1998, $118,000,000, as authorized by 10 U.S.C. 2854, to remain 
available until September 30, 1999: Provided, That the entire amount is 
designated by the Congress as an emergency requirement pursuant to 
section 251(b)(2)(A) of the Balanced Budget and Emergency Deficit 
Control Act of 1985, as amended: Provided

[[Page 112 STAT. 2681-561]]

further, That from amounts made available in this or any other Act for 
military construction, the Secretary of the Army may acquire real 
property and carry out a military construction project at Camp Casey in 
Korea, in the amount of $12,016,000.

                       Military Construction, Navy

    For an additional amount for ``Military Construction, Navy'' to 
cover the incremental costs arising from the consequences of Hurricanes 
Georges and Bonnie, $5,860,000, as authorized by 10 U.S.C. 2854, to 
remain available until September 30, 1999: Provided, That the entire 
amount shall be available only to the extent an official budget request 
for a specific dollar amount that includes designation of the entire 
amount of the request as an emergency requirement as defined in the 
Balanced Budget and Emergency Deficit Control Act of 1985, as amended, 
is transmitted by the President to the Congress: Provided further, That 
the entire amount is designated by the Congress as an emergency 
requirement pursuant to section 251(b)(2)(A) of the Balanced Budget and 
Emergency Deficit Control Act of 1985, as amended.

                    Military Construction, Air Force

    For an additional amount for ``Military Construction, Air Force'', 
$29,200,000, to remain available until September 30, 1999: Provided, 
That of this amount, $2,200,000 shall be available to cover the 
incremental costs arising from force protection, as authorized by 10 
U.S.C. 2803: Provided further, That of this amount $27,000,000 shall be 
available to cover the incremental costs arising from the consequences 
of Hurricane Georges, as authorized by 10 U.S.C. 2854: Provided further, 
That the entire amount shall be available only to the extent an official 
budget request for a specific dollar amount that includes designation of 
the entire amount of the request as an emergency requirement as defined 
in the Balanced Budget and Emergency Deficit Control Act of 1985, as 
amended, is transmitted by the President to the Congress: Provided 
further, That the entire amount is designated by the Congress as an 
emergency requirement pursuant to section 251(b)(2)(A) of the Balanced 
Budget and Emergency Deficit Control Act of 1985, as amended.

               Military Construction, Army National Guard

    For an additional amount for ``Military Construction, Army National 
Guard'' to cover the incremental costs arising from the consequences of 
Hurricane Georges, $2,500,000, as authorized by 10 U.S.C. 2854, to 
remain available until September 30, 1999: Provided, That the entire 
amount shall be available only to the extent an official budget request 
for a specific dollar amount that includes designation of the entire 
amount of the request as an emergency requirement as defined in the 
Balanced Budget and Emergency Deficit Control of 1985, as amended, is 
transmitted by the President to the Congress: Provided further, That the 
entire amount is designated by the Congress as an emergency requirement 
pursuant to section 251(b)(2)(A) of the Balanced Budget and Emergency 
Deficit Control Act of 1985, as amended.



[[Page 112 STAT. 2681-562]]

                Military Construction, Air National Guard

    For an additional amount for ``Military Construction, Air National 
Guard'' to cover the incremental costs arising from the consequences of 
Hurricane Georges, $15,900,000, as authorized by 10 U.S.C. 2854, to 
remain available until September 30, 1999: Provided, That the entire 
amount shall be available only to the extent an official budget request 
for a specific dollar amount that includes designation of the entire 
amount of the request as an emergency requirement as defined in the 
Balanced Budget and Emergency Deficit Control Act of 1985, as amended, 
is transmitted by the President to the Congress: Provided further, That 
the entire amount is designated by the Congress as an emergency 
requirement pursuant to section 251(b)(2)(A) of the Balanced Budget and 
Emergency Deficit Control Act of 1985, as amended.

                          Family Housing, Army

    For an additional amount for ``Family Housing, Army'' to cover the 
incremental costs arising from the consequences of Hurricane Georges and 
for the rehabilitation of family housing, $5,200,000, to remain 
available until September 30, 1999: Provided, That notwithstanding any 
other provision of law, of this amount $4,000,000 shall be available 
only for the rehabilitation of family housing referred to in Section 
8142 of the Department of Defense Appropriations Act of 1999: Provided 
further, That the entire amount shall be available only to the extent an 
official budget request for a specific dollar amount that includes 
designation of the entire amount of the request as an emergency 
requirement as defined in the Balanced Budget and Emergency Deficit 
Control Act of 1985, as amended, is transmitted by the President to the 
Congress: Provided further, That the entire amount is designated by the 
Congress as an emergency requirement pursuant to section 251(b)(2)(A) of 
the Balanced Budget and Emergency Deficit Control Act of 1985, as 
amended.

                  Family Housing, Navy and Marine Corps

    For an additional amount for ``Family Housing, Navy and Marine 
Corps'' to cover the incremental costs arising from the consequences of 
Hurricane Bonnie, $10,599,000, as authorized by 10 U.S.C. 2854, to 
remain available until September 30, 1999: Provided, That the entire 
amount shall be available only to the extent an official budget request 
for a specific dollar amount that includes designation of the entire 
amount of the request as an emergency requirement as defined in the 
Balanced Budget and Emergency Deficit Control Act of 1985, as amended, 
is transmitted by the President to the Congress: Provided further, That 
the entire amount is designated by the Congress as an emergency 
requirement pursuant to section 251(b)(2)(A) of the Balanced Budget and 
Emergency Deficit Control Act of 1985, as amended.

                        Family Housing, Air Force

    For an additional amount for ``Family Housing, Air Force'' to cover 
the incremental costs arising from the consequences of Hurricane 
Georges, $22,233,000, as authorized by 10 U.S.C. 2854, to remain 
available until September 30, 1999: Provided, That the

[[Page 112 STAT. 2681-563]]

entire amount shall be available only to the extent an official budget 
request for a specific dollar amount that includes designation of the 
entire amount of the request as an emergency requirement as defined in 
the Balanced Budget and Emergency Deficit Control Act of 1985, as 
amended, is transmitted by the President to the Congress: Provided 
further, That the entire amount is designated by the Congress as an 
emergency requirement pursuant to section 251(b)(2)(A) of the Balanced 
Budget and Emergency Deficit Control Act of 1985, as amended.

                     GENERAL PROVISION, THIS CHAPTER

    Section 2304(c)(2) of the Strom Thurmond National Defense 
Authorization Act for Fiscal Year 1999 <> is 
amended by striking ``$2,000,000,000'' and inserting ``$2,000,000''.

                                CHAPTER 4

                      DEPARTMENT OF TRANSPORTATION

                               Coast Guard

    For an additional amount for necessary expenses for the operation 
and maintenance of the Coast Guard, not otherwise provided for, 
$100,000,000, of which $28,000,000 is only available for expenses 
related to expansion of drug interdiction activities around Puerto Rico, 
the United States Virgin Islands, and other transit zone areas of 
operation, including costs to operate and maintain PC-170 patrol craft 
offered by the Department of Defense: Provided, That the entire amount 
is designated by the Congress as an emergency requirement pursuant to 
section 251(b)(2)(A) of the Balanced Budget and Emergency Deficit 
Control Act of 1985, as amended: Provided further, That the entire 
amount shall be available only to the extent that an official budget 
request for a specific dollar amount, that includes designation of the 
entire amount of the request as an emergency requirement as defined in 
the Balanced Budget and Emergency Deficit Control Act of 1985, as 
        amended, is transmitted by the President to the Congress.

    For an additional amount for acquisition, construction, renovation, 
and improvement of facilities and equipment, to be available for 
expansion of Coast Guard drug interdiction activities, $100,000,000, to 
remain available until expended and to be distributed as follows:
            Acquisition and construction of Barracuda class coastal 
        patrol boats, $33,000,000;
            Reactivation costs for up to 3 HU-25 aircraft for maritime 
        patrol, $7,500,000;
            Acquisition of installed or deployable electronic sensors 
        and communication systems for Coast Guard cutters or boats, 
        $13,000,000;
            Operational test and evaluation of the use of force from 
        aircraft, $2,500,000; and

[[Page 112 STAT. 2681-564]]

            Acquisition of installed or deployable electronic sensors 
        for maritime patrol aircraft and not to exceed $5,800,000 for C-
        130 engine upgrade, $44,000,000:

Provided, That the entire amount is designated by the Congress as an 
emergency requirement pursuant to section 251(b)(2)(A) of the Balanced 
Budget and Emergency Deficit Control Act of 1985, as amended: Provided 
further, That the entire amount shall be available only to the extent 
that an official budget request for a specific dollar amount, that 
includes designation of the entire amount of the request as an emergency 
requirement as defined in the Balanced Budget and Emergency Deficit 
Control Act of 1985, as amended, is transmitted by the President to the 
                                Congress.

    For an additional amount for operating, maintenance, and training 
expenses of the Coast Guard Reserve, including supplies, equipment and 
services, $5,000,000: Provided, That none of these funds may be 
transferred to Coast Guard ``Operating expenses'' or otherwise made 
available to reimburse the Coast Guard for financial support of the 
Coast Guard Reserves: Provided further, That the highest priority for 
use of these funds shall be for enhancing drug interdiction activities 
conducted by the Coast Guard Reserves: Provided further, That the entire 
amount is designated by the Congress as an emergency requirement 
pursuant to section 251(b)(2)(A) of the Balanced Budget and Emergency 
Deficit Control Act of 1985, as amended: Provided further, That the 
entire amount shall be available only to the extent that an official 
budget request for a specific dollar amount, that includes designation 
of the entire amount of the request as an emergency requirement as 
defined in the Balanced Budget and Emergency Deficit Control Act of 
   1985, as amended, is transmitted by the President to the Congress.

    For an additional amount for necessary expenses for applied 
scientific research, development, test, and evaluation, maintenance, 
rehabilitation, lease and operation of facilities and equipment, 
$5,000,000, to remain available until expended: Provided, That the 
highest priority for use of these funds shall be the development of new 
technologies or operational procedures which enhance drug interdiction 
activities of the Coast Guard: Provided further, That the entire amount 
is designated by the Congress as an emergency requirement pursuant to 
section 251(b)(2)(A) of the Balanced Budget and Emergency Deficit 
Control Act of 1985, as amended: Provided further, That the entire 
amount shall be available only to the extent that an official budget 
request for a specific dollar amount, that includes designation of the 
entire amount of the request as an emergency requirement as defined in 
the Balanced Budget and Emergency Deficit Control Act of 1985, as 
amended, is transmitted by the President to the Congress.

[[Page 112 STAT. 2681-565]]

                         TITLE II--ANTITERRORISM

                                CHAPTER 1

                          DEPARTMENT OF JUSTICE

                     Federal Bureau of Investigation

    For an additional amount for ``Salaries and Expenses'', $21,680,000, 
to remain available until expended: Provided, That the entire amount is 
designated by the Congress as an emergency requirement pursuant to 
section 251(b)(2)(A) of the Balanced Budget and Emergency Deficit 
Control Act of 1985, as amended.

                           DEPARTMENT OF STATE

                    Administration of Foreign Affairs

    Notwithstanding section 15 of the State Department Basic Authorities 
Act of 1956, an additional amount for ``Diplomatic and Consular 
Programs'', $773,700,000, to remain available until expended, of which 
$25,700,000 shall be available only to the extent that an official 
budget request that includes the designation of the entire amount of the 
request as an emergency requirement as defined in the Balanced Budget 
and Emergency Deficit Control Act of 1985, as amended, is transmitted by 
the President to the Congress: Provided, That as determined by the 
Secretary of State, such funds may be used to procure services and 
equipment overseas necessary to improve worldwide security and 
reconstitute embassy operations in Kenya and Tanzania on behalf of any 
other agency: Provided further, That the entire amount is designated by 
the Congress as an emergency requirement pursuant to section 
251(b)(2)(A) of the Balanced Budget and Emergency Deficit Control Act of 
                            1985, as amended.

    Notwithstanding section 15 of the State Department Basic Authorities 
Act of 1956, an additional amount for ``Salaries and Expenses'', 
$12,000,000, to remain available until expended: Provided, That the 
entire amount is designated by the Congress as an emergency requirement 
pursuant to section 251(b)(2)(A) of the Balanced Budget and Emergency 
                Deficit Control Act of 1985, as amended.

    Notwithstanding section 15 of the State Department Basic Authorities 
Act of 1956, an additional amount for ``Office of Inspector General'', 
$1,000,000, to remain available until expended: Provided, That the 
entire amount is designated by the Congress as an emergency requirement 
pursuant to section 251(b)(2)(A) of the Balanced Budget and Emergency 
Deficit Control Act of 1985, as amended.

[[Page 112 STAT. 2681-566]]

    Notwithstanding section 15 of the State Department Basic Authorities 
Act of 1956, an additional amount for ``Security and Maintenance of 
United States Missions'', $627,000,000, to remain available until 
expended; of which $56,000,000 is for security projects, relocations, 
and security equipment on behalf of missions of other U.S. Government 
agencies, which amount may be transferred to any appropriation for this 
purpose, to be merged with and available for the same time period as the 
appropriation to which transferred; and of which $185,000,000 is for 
capital improvements or relocation of office and residential facilities 
to improve security, which amount shall become available fifteen days 
after notice thereof has been transmitted to the Appropriations 
Committees of both Houses of Congress: Provided, That the entire amount 
is designated by the Congress as an emergency requirement pursuant to 
section 251(b)(2)(A) of the Balanced Budget and Emergency Deficit 
                    Control Act of 1985, as amended.

    Notwithstanding section 15 of the State Department Basic Authorities 
Act of 1956, an additional amount for ``Emergencies in the Diplomatic 
and Consular Service'', $10,000,000, to remain available until expended: 
Provided, That the entire amount is designated by the Congress as an 
emergency requirement pursuant to section 251(b)(2)(A) of the Balanced 
Budget and Emergency Deficit Control Act of 1985, as amended.

                                CHAPTER 2

                     DEPARTMENT OF DEFENSE--MILITARY

                        OPERATION AND MAINTENANCE

                 Operation and Maintenance, Defense-Wide

    For an additional amount for ``Operation and Maintenance, Defense-
Wide'', $358,427,000, to remain available for obligation until expended: 
Provided, That the Secretary of Defense may transfer these funds to 
fiscal year 1999 appropriations for operation and maintenance; 
procurement; research, development, test and evaluation; and family 
housing: Provided further, That the funds transferred shall be merged 
with and be available for the same purposes and for the same time period 
as the appropriation to which transferred: Provided further, That the 
transfer authority provided under this heading is in addition to any 
other transfer authority available to the Department of Defense: 
Provided further, That the entire amount made available under this 
heading is designated by the Congress as an emergency requirement 
pursuant to section 251(b)(2)(A) of the Balanced Budget and Emergency 
Deficit Control Act of 1985, as amended: Provided further, That the 
entire amount shall be available only to the extent that an official 
budget request for $358,427,000, that includes designation of the entire 
amount of the request as an emergency requirement as defined in the 
Balanced Budget and Emergency Deficit Control

[[Page 112 STAT. 2681-567]]

Act of 1985, as amended, is transmitted by the President to the 
Congress.

                    GENERAL PROVISIONS, THIS CHAPTER

    Sec. 201. Maintenance and Operation of Equipment.--Section 374 of 
title 10, United States Code, is amended--
            (1) in subsection (b)(1)(A), by striking ``or'';
            (2) in subsection (b)(1)(B), by striking the period at the 
        end, inserting in lieu thereof a semicolon and the following new 
        subparagraphs:
                    ``(C) a foreign or domestic counter-terrorism 
                operation; or
                    ``(D) a rendition of a suspected terrorist from a 
                foreign country to the United States to stand trial.'';
            (3) in subsection (b)(2)(F)(i)--
                    (A) by inserting ``along with any other civilian or 
                military personnel who are supporting, or conducting, a 
                joint operation with civilian law enforcement 
                personnel;'' after ``the transportation of civilian law 
                enforcement personnel''; and
                    (B) by striking ``and'';
            (4) in subsection (b)(2)(F)(ii)--
                    (A) by inserting ``and supporting'' after ``the 
                operation of a base of operations for civilian law 
                enforcement'';
                    (B) by striking the period at the end and inserting 
                in lieu thereof ``; and''; and
                    (C) by inserting at the end the following new 
                clause:
                    ``(iii) the transportation of suspected terrorists 
                from foreign countries to the United States for trial 
                (so long as the requesting Federal law enforcement 
                agency provides all security for such transportation and 
                maintains custody over the suspect through the duration 
                of the transportation).'';
            (5) in subsection (b)(4)(A), by striking ``an'' and 
        inserting in lieu thereof ``a Federal''; and
            (6) in subsection (b)(4)(A), by inserting a new clause ``(v) 
        Any law, foreign or domestic, prohibiting terrorist 
        activities.'' after ``(iv) The Maritime Drug Law Enforcement Act 
                        (46 U.S.C. App. 1901 et seq.).''.

    Sec. 202. In addition to amounts appropriated or otherwise made 
available in the Department of Defense Appropriations Act, 1999, 
$50,000,000 is hereby appropriated, only to initiate and expand 
activities of the Department of Defense to prevent, prepare for, and 
respond to a terrorist attack in the United States involving weapons of 
mass destruction: Provided, That $35,000,000 of the funds made available 
in this section shall be transferred to the following accounts in the 
specified amounts:
            ``National Guard Personnel, Army'', $4,000,000;
            ``National Guard Personnel, Air Force'', $1,000,000;
            ``Operation and Maintenance, Army'', $2,000,000;
            ``Operation and Maintenance, Army National Guard'', 
        $20,000,000; and
            ``Procurement, Defense-Wide'', $8,000,000:

[[Page 112 STAT. 2681-568]]

Provided further, That of the funds made available in this section, 
$15,000,000 shall be transferred to ``Research, Development, Test and 
Evaluation, Army'', only to develop and support a long term, sustainable 
Weapons of Mass Destruction emergency preparedness training program: 
Provided further, That funds transferred pursuant to this section shall 
be merged with and be available for the same purposes and for the same 
time period as the appropriation to which transferred: Provided further, 
That the transfer authority provided in this section is in addition to 
any other transfer authority available to the Department of Defense: 
Provided further, That the entire amount provided in this section is 
designated by the Congress as an emergency requirement pursuant to 
section 251(b)(2)(A) of the Balanced Budget and Emergency Deficit 
Control Act of 1985, as amended: Provided further, That the entire 
amount shall be available only to the extent that an official budget 
request for $50,000,000, that includes designation of the entire amount 
of the request as an emergency requirement as defined in the Balanced 
Budget and Emergency Deficit Control Act of 1985, as amended, is 
transmitted by the President to the Congress.
    Sec. 203. In addition to amounts appropriated or otherwise made 
available in the Department of Defense Appropriations Act, 1999, 
$120,500,000, to remain available for obligation until expended, is 
appropriated to the proper accounts within the Department of the Air 
Force: Provided, That the additional amount shall be made available only 
for the provision of crisis response aviation support for critical 
national security, law enforcement and emergency response agencies: 
Provided further, That the entire amount is designated by the Congress 
as an emergency requirement pursuant to section 251(b)(2)(A) of the 
Balanced Budget and Emergency Deficit Control Act of 1985, as amended: 
Provided further, That the entire amount shall be available only to the 
extent that an official budget request for $120,500,000, that includes 
designation of the entire amount of the request as an emergency 
requirement as defined in the Balanced Budget and Emergency Deficit 
Control Act of 1985, as amended, is transmitted by the President to the 
Congress: Provided further, That the President of the United States 
shall submit to the Congress by March 15, 1999, an interagency agreement 
for the utilization of Department of Defense assets to support the 
crisis response requirements of the Federal Bureau of Investigation and 
the Federal Emergency Management Agency.

                                CHAPTER 3

                   FUNDS APPROPRIATED TO THE PRESIDENT

                    International Security Assistance

    Notwithstanding section 10 of Public Law 91-672, for an additional 
amount for ``Economic Support Fund'' for assistance for Kenya and 
Tanzania, $50,000,000, to remain available until September 30, 2000: 
Provided, That the entire amount is designated by the Congress as an 
emergency requirement pursuant to section 251(b)(2)(A) of the Balanced 
Budget and Emergency Deficit Control Act of 1985, as amended: Provided 
further, That funds appropriated

[[Page 112 STAT. 2681-569]]

under this paragraph may be made available for administrative costs 
associated with assistance provided under this paragraph: Provided 
further, That $2,500,000 shall be transferred to and merged with 
``Operating Expenses of the Agency for International Development'' for 
security and related expenses: Provided further, That $1,269,000 shall 
be transferred to and merged with ``Peace Corps'' for security and 
related expenses: Provided further, That the transfers authorized in the 
preceding provisos shall be in addition to sums otherwise available for 
such purposes: Provided further, That funds appropriated under this 
paragraph shall only be available through the regular notification 
procedures of the Committees on Appropriations.

     Nonproliferation, Anti-Terrorism, Demining and Related Programs

    Notwithstanding section 15 of the State Department Basic Authorities 
Act of 1956 and section 10 of Public Law 91-672, for an additional 
amount for ``Nonproliferation, Anti-Terrorism, Demining and Related 
Programs'' for anti-terrorism assistance, $20,000,000, to remain 
available until September 30, 2000: Provided, That the entire amount is 
designated by the Congress as an emergency requirement pursuant to 
section 251(b)(2)(A) of the Balanced Budget and Emergency Deficit 
Control Act of 1985, as amended.

                                CHAPTER 4

                       DEPARTMENT OF THE INTERIOR

                          National Park Service

    For an additional amount for ``Operation of the National Park 
System'' for emergency security related expenses, $2,320,000, to remain 
available until expended: Provided, That the entire amount is designated 
by the Congress as an emergency requirement pursuant to section 
251(b)(2)(A) of the Balanced Budget and Emergency Deficit Control Act of 
                            1985, as amended.

    For an additional amount for ``Construction'' for emergency security 
related expenses, $3,680,000, to remain available until expended: 
Provided, That the entire amount is designated by the Congress as an 
emergency requirement pursuant to section 251(b)(2)(A) of the Balanced 
Budget and Emergency Deficit Control Act of 1985, as amended.

                                CHAPTER 5

                        ARCHITECT OF THE CAPITOL

                         Capitol Visitor Center

    For necessary expenses for the planning, engineering, design, and 
construction, as each such milestone is approved by the Committee on 
Rules and Administration of the Senate, the

[[Page 112 STAT. 2681-570]]

Committee on House Oversight of the House of Representatives, the 
Committees on Appropriations of the House of Representatives and of the 
Senate, and other appropriate committees of the House of Representatives 
and of the Senate, of a new facility to provide greater security for all 
persons working in or visiting the United States Capitol and to enhance 
the educational experience of those who have come to learn about the 
Capitol building and Congress, $100,000,000, to be supplemented by 
private funds, which shall remain available until expended: Provided, 
That Section 3709 of the Revised Statutes of the United States (41 
U.S.C. 5) shall not apply to the funds made available under this 
heading: Provided further, That the entire amount is designated by the 
Congress as an emergency requirement pursuant to section 251(b)(2)(A) of 
the Balanced Budget and Emergency Deficit Control Act of 1985, as 
amended.

                          CAPITOL POLICE BOARD

                          Security Enhancements

    For the Capitol Police Board for security enhancements to the 
Capitol complex, including the buildings and grounds of the Library of 
Congress, $106,782,000, to remain available until expended: Provided, 
That such security enhancements shall be carried out in accordance with 
a plan or plans approved by the Committee on House Oversight of the 
House of Representatives, the Committee on Rules and Administration of 
the Senate, the Committee on Appropriations of the House of 
Representatives, and the Committee <> on 
Appropriations of the Senate: Provided further, That the Capitol Police 
Board shall transfer to the Architect of the Capitol such portion of the 
funds made available under this heading as the Architect may require for 
expenses necessary to provide support for the security enhancements, 
subject to the approval of the Committee on Appropriations of the House 
of Representatives and the Committee on Appropriations of the 
Senate: <>  Provided further, That the 
Capitol Police Board shall transfer to the Librarian of Congress such 
portion of the funds made available under this heading as the Librarian 
may require for expenses necessary to provide support for the security 
enhancements, subject to the approval of the Committee on Appropriations 
of the House of Representatives and the Committee on Appropriations of 
the Senate: Provided further, That the entire amount is designated by 
the Congress as an emergency requirement pursuant to section 
251(b)(2)(A) of the Balanced Budget and Emergency Deficit Control Act of 
1985, as amended.

                     GENERAL PROVISION, THIS CHAPTER

    The responsibility for design, installation, and <> maintenance of security systems to protect the physical security 
of the buildings and grounds of the Library of Congress is transferred 
from the Architect of the Capitol to the Capitol Police Board. Such 
design, installation, and maintenance shall be carried out under the 
direction of the Committee on House Oversight of the House of 
Representatives and the Committee on Rules and Administration of the 
Senate, and without regard to section 3709 of the Revised Statutes of 
the United States (41 U.S.C. 5). Any alteration to a structural, 
mechanical, or architectural feature of the buildings

[[Page 112 STAT. 2681-571]]

and grounds of the Library of Congress that is required for a security 
system under the preceding sentence may be carried out only with the 
approval of the Architect of the Capitol.

                                CHAPTER 6

                      DEPARTMENT OF TRANSPORTATION

                     Federal Aviation Administration

    For an additional amount for ``Facilities and Equipment'', 
$100,000,000, for necessary expenses for acquisition, installation and 
related activities supporting the deployment of bulk and trace 
explosives detection systems and other advanced security equipment at 
airports in the United States, to remain available until September 30, 
2001: Provided, That the entire amount shall be available only to the 
extent an official budget request for a specific dollar amount that 
includes designation of the entire amount of the request as an emergency 
requirement as defined in the Balanced Budget and Emergency Deficit 
Control Act of 1985, as amended, is transmitted by the President to the 
Congress: Provided further, That the entire amount is designated as an 
emergency requirement pursuant to section 251(b)(2)(A) of the Balanced 
Budget and Emergency Deficit Control Act of 1985.

                                CHAPTER 7

                       DEPARTMENT OF THE TREASURY

                 Federal Law Enforcement Training Center

    For an additional amount for ``Salaries and Expenses'', $3,548,000, 
to remain available until expended: Provided, That the entire amount is 
designated by the Congress as an emergency requirement pursuant to 
section 251(b)(2)(A) of the Balanced Budget and Emergency Deficit 
Control Act of 1985, as amended.

                      United States Secret Service

    For an additional amount for ``Salaries and Expenses'', $80,808,000, 
to remain available until expended: Provided, That the entire amount is 
designated by the Congress as an emergency requirement pursuant to 
section 251(b)(2)(A) of the Balanced Budget and Emergency Deficit 
Control Act of 1985, as amended.

[[Page 112 STAT. 2681-572]]

   TITLE III--YEAR 2000 CONVERSION OF FEDERAL INFORMATION TECHNOLOGY 
                                 SYSTEMS

         FISCAL YEAR 1999 EMERGENCY SUPPLEMENTAL APPROPRIATIONS

                   FUNDS APPROPRIATED TO THE PRESIDENT

    For an additional amount for emergency expenses related to Year 2000 
conversion of Federal information technology systems, and related 
expenses, $2,250,000,000, to remain available until September 30, 2001, 
of which $5,500,000 shall be transferred to the Legislative Branch for 
``SENATE'', ``Contingent Expenses of the Senate'', ``Sergeant at Arms 
and Doorkeeper of the Senate'' for salaries and expenses related to Year 
2000 conversion of Senate information technology systems: Provided, That 
the funds may be obligated with the prior approval of the Senate 
Committee on Appropriations; and of which, $6,373,000 shall be 
transferred to the Legislative Branch for ``HOUSE OF REPRESENTATIVES'', 
``Salaries and Expenses'', ``Salaries, Officers and Employees'' for 
salaries and expenses related to Year 2000 conversion of House of 
Representatives information technology systems; and of which $5,000,000 
shall be transferred to the Legislative Branch for ``GENERAL ACCOUNTING 
OFFICE'', ``Information Technology Systems and Related Expenses'' for 
expenses related to Year 2000 conversion of information technology 
systems and related expenses of all entities in the Legislative Branch 
other than the ``Senate'' and ``House of Representatives'' covered by 
the Legislative Branch Appropriations Act, 1998 (Public Law 105-55), 
which the Comptroller General shall transfer to the affected entities in 
the Legislative Branch, upon the approval of the House and Senate 
Committees on Appropriations; and of which $13,044,000 shall be 
transferred to the Judiciary to the Judiciary Information Technology 
Fund for expenses related to Year 2000 conversion of Judicial Branch 
information technology and security systems: Provided further, That the 
remaining funds made available shall be transferred, as necessary, by 
the Director of the Office of Management and Budget to all affected 
Federal Departments and Agencies, except the Department of Defense, for 
expenses necessary to ensure the information technology that is used or 
acquired by the Federal government meets the definition of Year 2000 
compliant under Federal Acquisition Regulations (concerning accurate 
processing of date/time data, including calculating, comparing, and 
sequencing from, into, and between the twentieth and twenty-first 
centuries, and the years 1999 and 2000 and leap year calculations) and 
to meet other criteria for Year 2000 compliance as the head of each 
Department or Agency considers appropriate: Provided further, That none 
of the funds provided under this heading, except those transferred to 
the Legislative Branch and the Judiciary, may be transferred to any 
Department or Agency until fifteen days after the Director of the Office 
of Management and Budget has submitted to the House and Senate 
Committees on Appropriations, the Senate Special Committee on the Year 
2000 Technology Problem, the House Committee on Science, and the House 
Committee on Government

[[Page 112 STAT. 2681-573]]

Reform and Oversight, a proposed allocation and plan for that Department 
or Agency to achieve Year 2000 compliance for technology information 
systems: Provided further, That the transfer authority provided in this 
paragraph is in addition to any other transfer authority contained 
elsewhere in this or any other Act: Provided further, That funds 
provided under this heading shall be in addition to funds available in 
this or any other Act for Year 2000 compliance by any Federal Department 
or Agency: Provided further, That the entire amount, except those 
amounts transferred to the Legislative Branch and the Judiciary, shall 
be available only to the extent that an official budget request that 
includes designation of the entire amount of the request as an emergency 
requirement as defined in the Balanced Budget and Emergency Deficit 
Control Act of 1985, as amended, is transmitted by the President to the 
Congress: Provided further, That the entire amount is designated by the 
Congress as an emergency requirement pursuant to section 251(b)(2)(A) of 
the Balanced Budget and Emergency Deficit Control Act of 1985, as 
amended.

                     DEPARTMENT OF DEFENSE--MILITARY

                        OPERATION AND MAINTENANCE

      Information Technology Systems and Security Transfer Account

    For emergency expenses relating to Year 2000 conversion of 
information technology and national security systems, for information 
technology, and infrastructure protection to include computer security/
information assurance programs, and for related expenses, 
$1,100,000,000, to remain available until September 30, 2001: Provided, 
That the funds made available shall be transferred, as necessary, by the 
Secretary of Defense to any account in any previously enacted Department 
of Defense Appropriations Act for expenses necessary to ensure the 
information technology that is used or acquired by the Federal 
government meets the definition of Year 2000 compliant under Federal 
Acquisition Regulations (concerning accurate processing of date/time 
data, including calculating, comparing, and sequencing from, into, and 
between the twentieth and twenty-first centuries, and the years 1999 and 
2000 and leap year calculations) and to meet other criteria for Year 
2000 compliance as the Secretary considers appropriate: Provided 
further, That none of the funds provided under this heading may be 
transferred to any other account until fifteen days after the Secretary 
of Defense has submitted to the House and Senate Committees on 
Appropriations, the Senate Special Committee on the Year 2000 Technology 
Problem, the House Committee on Science, and the House Committee on 
Government Reform and Oversight, a proposed allocation and plan for the 
Department of Defense to achieve Year 2000 compliance for technology 
information systems: Provided further, That the funds transferred shall 
be merged with and shall be available for the same purposes and for the 
same time period as the appropriation to which transferred: Provided 
further, That the transfer authority provided under this heading is in 
addition to any other transfer authority available to the Department of 
Defense: Provided further, That funds provided under this heading

[[Page 112 STAT. 2681-574]]

shall be in addition to funds available in this or any other Act making 
appropriations for the Department of Defense for Year 2000 compliance 
and related activities: Provided further, That the entire amount made 
available under this heading is designated by the Congress as an 
emergency requirement pursuant to section 251(b)(2)(A) of the Balanced 
Budget and Emergency Deficit Control Act of 1985, as amended: Provided 
further, That the entire amount made available under this heading shall 
be available only to the extent that an official budget request for a 
specific dollar amount, that includes designation of the entire amount 
of the request as an emergency requirement as defined in the Balanced 
Budget and Emergency Deficit Control Act of 1985, as amended, is 
transmitted by the President to the Congress.

                       TITLE IV--OTHER EMERGENCIES

                                CHAPTER 1

                         DEPARTMENT OF COMMERCE

             National Oceanic and Atmospheric Administration

    In addition to the amounts appropriated or otherwise made available 
for this purpose, $5,000,000 is appropriated to the Department of 
Commerce to remain available until expended to provide emergency 
disaster assistance to persons or entities in the Northeast multispecies 
fishery who have incurred losses from a commercial fishery failure under 
section 308(b) of the Interjurisdictional Fisheries Act of 1986, as 
amended: Provided, That the entire amount is designated by the Congress 
as an emergency requirement pursuant to section 251(b)(2)(A) of the 
Balanced Budget and Emergency Deficit Control Act of 1985, as amended: 
Provided further, That the entire amount shall be available only to the 
extent an official budget request, for a specific dollar amount, that 
includes designation of the entire amount of the request as an emergency 
requirement as defined in the Balanced Budget and Emergency Deficit 
Control Act of 1985, as amended, is transmitted to the Congress.

                             RELATED AGENCY

                      Small Business Administration

    For an additional amount for the cost of direct loans, $71,000,000, 
to remain available until expended to subsidize additional gross 
obligations for the principal amount of direct loans: 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; and for 
administrative expenses to carry out the disaster loan program, an 
additional $30,000,000 to remain available until expended, which may be 
transferred to and merged with appropriations for ``Salaries and 
Expenses'': Provided further, That the entire amount is designated by 
the Congress as an emergency requirement pursuant to section 
251(b)(2)(A) of the Balanced

[[Page 112 STAT. 2681-575]]

Budget and Emergency Deficit Control Act of 1985, as amended: Provided 
further, That the entire amount shall be available only to the extent 
that an official budget request, that includes designation of the entire 
amount of the request as an emergency requirement as defined in the 
Balanced Budget and Emergency Deficit Control Act of 1985, as amended, 
is transmitted by the President to the Congress.

                                CHAPTER 2

                      DEPARTMENT OF DEFENSE--CIVIL-

                         Department of the Army

                        Corps of Engineers--Civil

    For an additional amount for emergency repairs and dredging due to 
flooding, $2,500,000, to remain available until expended, which shall be 
available only to the extent an official budget request for a specific 
dollar amount that includes designation of the entire amount of the 
request as an emergency requirement as defined in the Balanced Budget 
and Emergency Deficit Control Act of 1985, as amended, is transmitted by 
the President to the Congress: Provided, That the entire amount is 
designated by the Congress as an emergency requirement pursuant to 
section 251(b)(2)(A) of the Balanced Budget and Emergency Deficit 
                    Control Act of 1985, as amended.

    For an additional amount for emergency repairs and dredging due to 
flooding, $99,700,000, to remain available until expended, of which such 
amounts for eligible navigation projects which may be derived from the 
Harbor Maintenance Trust Fund pursuant to Public Law 99-662, shall be 
derived from that Fund: Provided, That the entire amount shall be 
available only to the extent an official budget request for a specific 
dollar amount that includes designation of the entire amount of the 
request as an emergency requirement as defined in the Balanced Budget 
and Emergency Deficit Control Act of 1985, as amended, is transmitted by 
the President to the Congress: Provided further, That the entire amount 
is designated by the Congress as an emergency requirement pursuant to 
section 251(b)(2)(A) of the Balanced Budget and Emergency Deficit 
Control Act of 1985, as amended.

                                CHAPTER 3

                   FUNDS APPROPRIATED TO THE PRESIDENT

    Notwithstanding section 10 of Public Law 91-672, for an additional 
amount for ``Child Survival and Disease Programs Fund'',

[[Page 112 STAT. 2681-576]]

$50,000,000, to remain available until expended: Provided, That the 
entire amount shall be available only to the extent that an official 
budget request for a specific dollar amount that includes designation of 
the entire amount of the request as an emergency requirement as defined 
in the Balanced Budget and Emergency Deficit Control Act of 1985, as 
amended, is transmitted by the President to the Congress: Provided 
further, That the entire amount is designated by the Congress as an 
emergency requirement pursuant to section 251(b)(2)(A) of the Balanced 
Budget and Emergency Deficit Control Act of 1985, as amended.

                   Other Bilateral Economic Assistance

    Notwithstanding section 10 of Public Law 91-672, for an additional 
amount for ``Assistance for the New Independent States of the former 
Soviet Union,'' $46,000,000, to remain available until September 30, 
2000: Provided, That the entire amount shall be available only to the 
extent that an official budget request for a specific dollar amount that 
includes designation of the entire amount of the request as an emergency 
requirement as defined in the Balanced Budget and Emergency Deficit 
Control Act of 1985, as amended, is transmitted by the President to the 
Congress: Provided further, That the entire amount is designated by the 
Congress as an emergency requirement pursuant to section 251(b)(2)(A) of 
the Balanced Budget and Emergency Deficit Control Act of 1985, as 
amended.

                           UNANTICIPATED NEEDS

      For an additional amount for ``Unanticipated Needs'', $30,000,000, 
to remain available until expended, only for a grant to the American Red 
Cross for reimbursement of disaster relief, recovery expenditures, and 
emergency services: Provided, That the entire amount shall be available 
only to the extent that an official budget request for a specific dollar 
amount that includes designation of the entire amount of the request as 
an emergency requirement as defined in the Balanced Budget and Emergency 
Deficit Control Act of 1985, as amended, is transmitted by the President 
to the Congress: Provided further, That the entire amount is designated 
by the Congress as an emergency requirement pursuant to section 
251(b)(2)(A) of the balanced Budget and Emergency Deficit Control Act of 
1985, as amended.

                                CHAPTER 4

                       DEPARTMENT OF THE INTERIOR

                 United States Fish and Wildlife Service

    For an additional amount for ``Construction'', $25,000,000, to 
remain available until expended, to repair damage due to hurricanes, 
floods and other acts of nature: Provided, That the entire amount is 
designated by the Congress as an emergency requirement

[[Page 112 STAT. 2681-577]]

pursuant to section 251(b)(2)(A) of the Balanced Budget and Emergency 
Deficit Control Act of 1985, as amended: Provided further, That the 
amount provided shall be available only to the extent that an official 
budget request that includes designation of the entire amount as an 
emergency requirement pursuant to section 251(b)(2)(A) of the Balanced 
Budget and Emergency Deficit Control Act of 1985, as amended, is 
transmitted by the President to the Congress.

                          National Park Service

    For an additional amount for ``Construction'', $10,000,000, to 
remain available until expended, to repair damage due to hurricanes, 
floods and other acts of nature: Provided, That the entire amount is 
designated by the Congress as an emergency requirement pursuant to 
section 251(b)(2)(A) of the Balanced Budget and Emergency Deficit 
Control Act of 1985, as amended: Provided further, That the amount 
provided shall be available only to the extent that an official budget 
request that includes designation of the entire amount as an emergency 
requirement pursuant to section 251(b)(2)(A) of the Balanced Budget and 
Emergency Deficit Control Act of 1985, as amended, is transmitted by the 
President to the Congress.

                     United States Geological Survey

    For an additional amount for ``Surveys, Investigations, and 
Research'', $1,000,000, to remain available until expended, to repair 
damage due to hurricanes, floods and other acts of nature: Provided, 
That the entire amount is designated by the Congress as an emergency 
requirement pursuant to section 251(b)(2)(A) of the Balanced Budget and 
Emergency Deficit Control Act of 1985, as amended: Provided further, 
That the amount provided shall be available only to the extent that an 
official budget request that includes designation of the entire amount 
as an emergency requirement pursuant to section 251(b)(2)(A) of the 
Balanced Budget and Emergency Deficit Control Act of 1985, as amended, 
is transmitted by the President to the Congress.

                                CHAPTER 5

                           DEPARTMENT OF LABOR

                 Employment and Training Administration

    For an additional amount for ``Training and Employment Services'' to 
carry out section 402 of the Job Training Partnership Act, $7,000,000, 
to be available upon enactment and remain available through June 30, 
1999: Provided, That the entire amount is designated by the Congress as 
an emergency requirement pursuant to section 251(b)(2)(A) of the 
Balanced Budget and Emergency Deficit Control Act of 1985, as amended.

[[Page 112 STAT. 2681-578]]

                                CHAPTER 6

                      DEPARTMENT OF TRANSPORTATION

                               Coast Guard

    For an additional amount for ``Acquisition, Construction, and 
Improvements'', for facility replacement or repairs arising from the 
consequences of Hurricane Georges, $12,600,000, to remain available 
until expended: Provided, That the entire amount shall be available only 
to the extent an official budget request for a specific dollar amount 
that includes designation of the entire amount of the request as an 
emergency requirement as defined in the Balanced Budget and Emergency 
Deficit Control Act of 1985, as amended, is transmitted by the President 
to the Congress: Provided further, That the entire amount is designated 
as an emergency requirement pursuant to section 251(b)(2)(A) of the 
Balanced Budget and Emergency Deficit Control Act of 1985, as amended.

                                CHAPTER 7

               DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

                   Community Planning and Development

    For an additional amount for ``Community development block grants'', 
as authorized under title I of the Housing and Community Development Act 
of 1974, $250,000,000, which shall remain available until September 30, 
2002, for use only for disaster relief, long-term recovery, and 
mitigation in communities affected by Presidentially-declared natural 
disasters designated during fiscal years 1998 and 1999, except for those 
activities reimbursable by or for which funds are made available by the 
Federal Emergency Management Agency, the Small Business Administration, 
or the Army Corps of Engineers: Provided, That in administering these 
amounts and except as provided in the next proviso, the Secretary of 
Housing and Urban Development (the Secretary) may waive or specify 
alternative requirements for any provision of any statute or regulation 
that the Secretary administers in connection with the obligation by the 
Secretary or the use by the recipient of these funds, except for 
statutory requirements related to civil rights, fair housing and 
nondiscrimination, the environment, and labor standards, upon a finding 
that such waiver is required to facilitate the use of such funds and 
would not be inconsistent with the overall purpose of the statute: 
Provided further, That the Secretary may waive the requirements that 
activities benefit persons of low and moderate income, except that at 
least 50 percent of the funds under this heading must benefit primarily 
persons of low and moderate income unless the Secretary makes a finding 
of compelling need: Provided further, That, upon a finding of compelling 
need, the Secretary must provide an explanation of the finding to the 
Committees on Appropriations: Provided further, That all funds under 
this heading shall be allocated by the Secretary to states (including 
Indian tribes for all purposes under this heading) to be administered

[[Page 112 STAT. 2681-579]]

by each state in conjunction with its Federal Emergency Management 
Agency program or its community development block grants program or by 
the entity designated by its Chief Executive Officer to administer the 
HOME Investment Partnerships Program: Provided further, That each state 
shall provide not less than 25 percent in non-Federal public matching 
funds or its equivalent value (other than administrative costs) for any 
funds allocated to the state under this heading: Provided further, That, 
in conjunction with the Director of the Federal Emergency Management 
Agency (the Director), the Secretary shall allocate funds based on the 
unmet needs identified by the Director as those which have not or will 
not be addressed by other federal disaster assistance programs: Provided 
further, That, in conjunction with the Director, the Secretary shall 
utilize annual disaster cost estimates in order that the funds under 
this heading shall be available, to the maximum extent feasible, to 
assist states with all Presidentially declared disasters <> designated during these fiscal years: Provided 
further, That the Secretary shall publish a notice in the Federal 
Register governing the allocation and use of the community development 
block grants funds made available under this heading for disaster areas: 
Provided further, That any project or activity underway prior to a 
Presidentially declared disaster may not receive funds under this 
heading unless the disaster directly impacted the project: Provided 
further, <> That 10 days prior to distribution of funds, 
the Secretary and the Director shall submit a list to the Committees on 
Appropriations, setting forth the proposed uses of funds, including an 
explanation of why other Federal disaster assistance programs do not 
cover the costs of unmet needs identified by the Director, the most 
recent estimates of unmet needs (including all uses of waivers and the 
reasons therefore), and an explanation of how the disaster impacted the 
proposed project: Provided further, That the Secretary and the Director 
shall submit quarterly reports to the Committees on Appropriations 
regarding the actual projects, localities and needs for which funds have 
been provided: Provided further, That these reports shall be based upon 
quarterly reports submitted to the Secretary and the Director by each 
state receiving funds under this heading: Provided further, That the 
entire amount shall be available only to the extent an official budget 
request, that includes designation of the entire amount of the request 
as an emergency requirement as defined by the Balanced Budget and 
Emergency Deficit Control Act of 1985, as amended, is transmitted by the 
President to the Congress: Provided further, That the entire amount is 
designated by the Congress as an emergency requirement pursuant to 
section 251(b)(2)(A) of the Balanced Budget and Emergency Deficit 
Control Act of 1985, as amended.

                           INDEPENDENT AGENCY

                   Federal Emergency Management Agency

    For an additional amount for ``Disaster relief'', $906,000,000, to 
remain available until expended: Provided, That the entire amount is 
designated by the Congress as an emergency requirement pursuant to 
section 251(b)(2)(A) of the Balanced Budget and Emergency Deficit 
Control Act of 1985, as amended: Provided further, That the entire 
amount shall be available only to the extent that

[[Page 112 STAT. 2681-580]]

an official budget request for a specific dollar amount, that includes 
designation of the entire amount of the request as an emergency 
requirement as defined in the Balanced Budget and Emergency Deficit 
Control Act of 1985, as amended, is transmitted by the President to the 
Congress.

            TITLE V--COUNTER-DRUG ACTIVITIES AND INTERDICTION

                                CHAPTER 1

                        Department of Agriculture

      ``Agriculture Research Service'', Department of Agriculture, 
$23,000,000, for additional counterdrug research and development 
activities: Provided, That the entire amount is designated by the 
Congress as an emergency requirement pursuant to section 251(b)(2)(A) of 
the Balanced Budget and Emergency Deficit Control Act of 1985, as 
amended: Provided further, That such amounts shall be available only to 
the extent an official budget request for a specific dollar amount that 
includes designation of the entire amount of the request as an emergency 
requirement as defined in such Act is transmitted by the President to 
the Congress.

                                CHAPTER 2

                          DEPARTMENT OF JUSTICE

                     Drug Enforcement Administration

    For an additional amount for ``Salaries and Expenses'', $10,200,000, 
to remain available until expended, of which the entire amount shall be 
available only to the extent that an official budget request that 
includes the designation of the entire amount of the request as an 
emergency requirement as defined in the Balanced Budget and Emergency 
Deficit Control Act of 1985, as amended, is transmitted by the President 
to the Congress: Provided, That the entire amount is designated by the 
Congress as an emergency requirement pursuant to section 251(b)(2)(A) of 
the Balanced Budget and Emergency Deficit Control Act of 1985, as 
amended.

                 Immigration and Naturalization Service

    For an additional amount for ``Salaries and Expenses, Enforcement 
and Border Affairs,'' $10,000,000, to remain available until expended, 
of which the entire amount shall be available only to the extent that an 
official budget request that includes the designation of the entire 
amount of the request as an emergency requirement as defined in the 
Balanced Budget and Emergency Deficit Control Act of 1985, as amended, 
is transmitted by the President to the Congress: Provided, That the 
entire amount is designated by the Congress as an emergency requirement 
pursuant to section

[[Page 112 STAT. 2681-581]]

251(b)(2)(A) of the Balanced Budget and Emergency Deficit Control Act of 
1985, as amended.

                                CHAPTER 3

                           DEPARTMENT OF STATE

           International Narcotics Control and Law Enforcement

    For an additional amount for ``International Narcotics Control and 
Law Enforcement'', $232,600,000, to remain available until expended: 
Provided, That such funds shall be made available subject to the regular 
notification procedures of the Committees on Appropriations: Provided 
further, That the entire amount shall be available only to the extent 
that an official budget request for a specific dollar amount, that 
includes designation of the entire amount of the request as an emergency 
requirement as defined in the Balanced Budget and Emergency Deficit 
Control Act of 1985, as amended, is transmitted by the President to the 
Congress: Provided further, That the entire amount is designated by the 
Congress as an emergency requirement pursuant to section 251(b)(2)(A) of 
the Balanced Budget and Emergency Deficit Control Act of 1985, as 
amended.

                                CHAPTER 4

                      DEPARTMENT OF TRANSPORTATION

                               Coast Guard

                           operating expenses

    For an additional amount for necessary expenses for the operation 
and maintenance of the Coast Guard, not otherwise provided for, 
$16,300,000, available solely for expenses related to the expansion of 
drug interdiction activities around Puerto Rico, the United States 
Virgin Islands, and other transit zone areas of operation, including 
costs to operate and maintain PC-170 patrol craft offered by the 
Department of Defense: Provided, That $4,000,000 of these funds shall be 
used only for the establishment and operating costs of a Caribbean 
International Support Tender, to train and support foreign coast guards 
in the Caribbean region: Provided further, That the entire amount is 
designated by the Congress as an emergency requirement pursuant to 
section 251(b)(2)(A) of the Balanced Budget and Emergency Deficit 
Control Act of 1985, as amended: Provided further, That the entire 
amount shall be available only to the extent that an official budget 
request for a specific dollar amount, that includes designation of the 
entire amount of the request as an emergency requirement as defined in 
the Balanced Budget and Emergency Deficit Control Act of 1985, as 
amended, is transmitted by the President to the Congress.

               acquisition, construction, and improvements

    For an additional amount for acquisition, construction, renovation, 
and improvement of facilities and equipment, to be available for 
expansion of Coast Guard drug interdiction activities, $117,400,000, to 
remain available until expended: Provided, That the entire amount is 
designated by the Congress as an emergency

[[Page 112 STAT. 2681-582]]

requirement pursuant to section 251(b)(2)(A) of the Balanced Budget and 
Emergency Deficit Control Act of 1985, as amended: Provided further, 
That the entire amount shall be available only to the extent that an 
official budget request for a specific dollar amount, that includes 
designation of the entire amount of the request as an emergency 
requirement as defined in the Balanced Budget and Emergency Deficit 
Control Act of 1985, as amended, is transmitted by the President to the 
Congress.

                                CHAPTER 5

                       DEPARTMENT OF THE TREASURY

                          Departmental Offices

    For an additional amount for ``Salaries and Expenses'', $1,500,000, 
to remain available until expended for necessary expenses for an 
interagency money laundering initiative: Provided, That funds shall be 
available for transfer to the National Foreign Intelligence Program: 
Provided further, That the entire amount shall be available only to the 
extent that an official budget request for a specific dollar amount that 
includes designation of the entire amount of the request as an emergency 
requirement as defined in the Balanced Budget and Emergency Deficit 
Control Act of 1985, as amended, is transmitted by the President to the 
Congress: Provided further, That the entire amount is designated by the 
Congress as an emergency requirement pursuant to section 251(b)(2)(A) of 
the Balanced Budget and Emergency Deficit Control Act of 1985: Provided 
further, That none of the funds provided under this heading may be 
obligated until fifteen days after notice thereof has been transmitted 
to the Committees on Appropriations.

                      United States Customs Service

    For an additional amount for ``Salaries and Expenses'', 
$106,300,000, to remain available until expended for counterdrug 
initiatives: Provided, That the entire amount shall be available only to 
the extent that an official budget request for a specific dollar amount 
that includes designation of the entire amount of the request as an 
emergency requirement as defined in the Balanced Budget and Emergency 
Deficit Control Act of 1985, as amended, is transmitted by the President 
to the Congress: Provided further, That the entire amount is designated 
by the Congress as an emergency requirement pursuant to section 
251(b)(2)(A) of the Balanced Budget and Emergency Deficit Control Act of 
1985: Provided further, That none of the funds provided under this 
heading may be obligated until fifteen days after notice thereof has 
been transmitted to the Committees on Appropriations.

[[Page 112 STAT. 2681-583]]

    For an additional amount for ``Operation, Maintenance and 
Procurement, Air and Marine Interdiction Programs'', $162,700,000, to 
remain available until expended: Provided, That of the amount provided, 
$153,000,000 shall be available for the procurement and conversion of 
two P-3B AEW aircraft and four P-3B Slick aircraft to be transferred 
from the Department of Defense to the Customs Service: Provided further, 
That the entire amount shall be available only to the extent that an 
official budget request for a specific dollar amount that includes 
designation of the entire amount of the request as an emergency 
requirement as defined in the Balanced Budget and Emergency Deficit 
Control Act of 1985, as amended, is transmitted by the President to the 
Congress: Provided further, That the entire amount is designated by the 
Congress as an emergency requirement pursuant to section 251(b)(2)(A) of 
the Balanced Budget and Emergency Deficit Control Act of 1985: Provided 
further, That none of the funds provided under this heading may be 
obligated until fifteen days after notice thereof has been transmitted 
                  to the Committees on Appropriations.

    For an additional amount for ``Customs Facilities, Construction, 
Improvements and Related Expenses'', $7,000,000, to remain available 
until expended: Provided, That the entire amount shall be available only 
to the extent that an official budget request for a specific dollar 
amount that includes designation of the entire amount of the request as 
an emergency requirement as defined in the Balanced Budget and Emergency 
Deficit Control Act of 1985, as amended, is transmitted by the President 
to the Congress: Provided further, That the entire amount is designated 
by the Congress as an emergency requirement pursuant to section 
251(b)(2)(A) of the Balanced Budget and Emergency Deficit Control Act of 
1985: Provided further, That none of the funds provided under this 
heading may be obligated until fifteen days after notice thereof has 
been transmitted to the Committees on Appropriations.

    EXECUTIVE OFFICE OF THE PRESIDENT AND FUNDS APPROPRIATED TO THE 
                                PRESIDENT

                 Office of National Drug Control Policy

    For an additional amount for ``Salaries and Expenses'', $1,200,000: 
Provided, That the entire amount shall be available only to the extent 
that an official budget request for a specific dollar amount that 
includes designation of the entire amount of the request as an emergency 
requirement as defined in the Balanced Budget and Emergency Deficit 
Control Act of 1985, as amended, is transmitted by the President to the 
Congress: Provided further, That the entire amount is designated by the 
Congress as an emergency requirement pursuant to section 251(b)(2)(A) of 
the Balanced Budget and Emergency Deficit Control Act of 1985: Provided 
further, That none of the funds provided under this heading may

[[Page 112 STAT. 2681-584]]

be obligated until fifteen days after notice thereof has been 
            transmitted to the Committees on Appropriations.

    For an additional amount to support the National Drug Court 
Institute, $2,000,000, to remain available until expended: Provided, 
That the entire amount shall be available for transfer to the National 
Drug Court Institute: Provided further, That the entire amount shall be 
available only to the extent that an official budget request for a 
specific dollar amount that includes designation of the entire amount of 
the request as an emergency requirement as defined in the Balanced 
Budget and Emergency Deficit Control Act of 1985, as amended, is 
transmitted by the President to the Congress: Provided further, That the 
entire amount is designated by the Congress as an emergency requirement 
pursuant to section 251(b)(2)(A) of the Balanced Budget and Emergency 
Deficit Control Act of 1985: Provided further, That none of the funds 
provided under this heading may be obligated until fifteen days after 
notice thereof has been transmitted to the Committees on Appropriations.

                       TITLE VI--GENERAL PROVISION

    No part of any appropriation contained in this Division of this Act 
shall remain available for obligation beyond the current fiscal year 
unless expressly so provided herein.

                        DIVISION C--OTHER MATTERS

                         TITLE I--OTHER MATTERS

    Sec. 101. <> Acting Treasury Inspector 
General for Tax Administration. (a) In General.--Notwithstanding any 
other provision of law, the President may appoint an acting Treasury 
Inspector General for Tax Administration to serve during the period--
            (1) beginning on the date of the enactment of this section 
        (or, if later, the date of the appointment), and
            (2) ending on the earlier of--
                    (A) April 30, 1999, or
                    (B) the date on which the first Treasury Inspector 
                General for Tax Administration takes office (other than 
                pursuant to this section).

    (b) Duties Before January 18, 1999.--The acting Treasury Inspector 
General for Tax Administration appointed under subsection (a) shall, 
before January 18, 1999, take only such actions as are necessary to 
begin operation of the Office of Treasury Inspector General for Tax 
Administration, including--
            (1) making interim arrangements for administrative support 
        for the Office,
            (2) establishing interim positions in the Office into which 
        personnel will be transferred upon the transfer of functions and 
        duties to the Office on January 18, 1999,
            (3) appointing such acting personnel on an interim basis as 
        may be necessary upon the transfer of functions and duties to 
        the Office on January 18, 1999, and

[[Page 112 STAT. 2681-585]]

            (4) providing guidance and input for the fiscal year 2000 
        budget process for the Office.

    (c) Actions Not To Limit Authority of IG.--None of the actions taken 
by an individual appointed under subsection (a) shall affect the future 
authority of any Treasury Inspector General for Tax Administration not 
appointed under subsection (a).
    (d) Limitations.--
            (1) Nomination.--No individual appointed under subsection 
        (a) may serve on or after January 19, 1999, unless on or before 
        such date the President has submitted to the Senate his 
        nomination of an individual to serve as the first Treasury 
        Inspector General for Tax Administration.
            (2) Treasury inspector general may not serve.--No individual 
        appointed under subsection (a) may serve during any period such 
        individual is serving as the Inspector General of the Treasury 
        of the United States or the acting Inspector General of the 
        Treasury of the United States.
            (3) Employment restrictions.--The provisions of section 
        8D(j) of the Inspector General Act of 1978 (5 U.S.C. App.) shall 
        apply to any individual appointed under subsection (a).

    Sec. 102. Section 122 of Public Law 105-119 (5 U.S.C. 3104 note) is 
amended--
            (1) by amending subsection (g) to read as follows:

    ``(g)(1) <> Notwithstanding any other 
provision of law and subject to paragraph (2), the Secretary of the 
Treasury is authorized to establish, for a period of three years from 
date of enactment of this provision, a personnel management 
demonstration project providing for the compensation and performance 
management of not more than a combined total of 950 employees who fill 
critical scientific, technical, engineering, intelligence analyst, 
language translator, and medical positions in the Bureau of Alcohol, 
Tobacco and Firearms, the United States Customs Service, and the United 
States Secret Service.

    ``(2) The provisions of subsections (b) through (f) and subsection 
(h) shall apply to the demonstration project authorized by paragraph (1) 
except that--
            ``(A) any reference in such subsections to the Director of 
        the Federal Bureau of Investigation shall include a reference to 
        the Secretary of the Treasury;
            ``(B) the operating plan required by subsection (d) shall be 
        submitted not later than February 1, 1999 to the House and 
        Senate Committees on Appropriations, the House Committee on 
        Government Reform and Oversight, the Senate Committee on 
        Governmental Affairs, the House Committee on Ways and Means, and 
        the Senate Committee on Finance; and
            ``(C) the report required by subsection (f) shall be 
        submitted not later than March 31, 2001.''; and

    (2) by amending subsection (h) to read as follows--
    ``(h) <> The authority to establish a 
demonstration project under this section shall terminate on November 26, 
2000.''.

    Sec. 103. Section 824 of the Foreign Service Act <> is amended:
            (1) in subsection (a)(1)(A) by inserting ``or in the case of 
        a waiver under subsection (g)'' after ``subsection (b)''; and
            (2) by adding the following new subsections (g) and (h) at 
        the end:

    ``(g) The Secretary of State may waive the application of the 
paragraphs (a) through (d) of this section, on a case-by-case basis,

[[Page 112 STAT. 2681-586]]

for an annuitant reemployed on a temporary basis, but only if, and for 
so long as, the authority is necessary due to an emergency involving a 
direct threat to life or property or other unusual circumstances.
    ``(h) A reemployed annuitant as to whom a waiver under subsection 
(g) is in effect shall not be considered a participant for purposes of 
subchapter I or subchapter II, or an employee for purposes of chapter 83 
or 84 of title 5, United States Code.''.
    Sec. 104. Title II of the Omnibus Diplomatic Security and 
Antiterrorism Act of 1986 (Public Law 99-399) is amended by adding the 
following new section at the end:

``SEC. 206. <> CONTRACTING AUTHORITY.

    ``The Secretary of State is authorized to employ individuals or 
organizations by contract to carry out the purposes of this Act, and 
individuals employed by contract to perform such services shall not by 
virtue of such employment be considered to be employees of the United 
States Government for purposes of any law administered by the Office of 
Personnel Management (except that the Secretary may determine the 
applicability to such individuals of any law administered by the 
Secretary concerning the employment of such individuals); and such 
contracts are authorized to be negotiated, the terms of the contracts to 
be prescribed, and the work to be performed, where necessary, without 
regard to such statutory provisions as relate to the negotiation, making 
and performance of contracts and performance of work in the United 
States.''.

    Sec. 106. Intrastate Bus Transportation in Hawaii. Section 
14501(a)(1) of Title 49, United States Code, is amended by striking 
``operations'' and inserting ``operations, or to intrastate bus 
transportation of any nature in the State of Hawaii''.
    Sec. 107. Provisions of 23 U.S.C. 125(b)(1) shall not apply to 
emergency relief projects resulting from the flooding in the State of 
California in January and March 1995.
      Sec. 108. For the purpose of any Rule of the House of 
Representatives, notwithstanding any other provision of law, any 
obligation limitation relating to surface transportation projects under 
section 1602 of P.L. 105-178 shall be assumed to be administered on the 
basis of sound program management practices that are consistent with 
past practices of the administering agency permitting States to decide 
High Priority Project funding priorities within state program 
allocations.

    Sec. 109. Operation of <> Trailers. (a) 
Registration of Trailers.--A State that requires annual registration of 
container chassis and the apportionment of fees for such registrations 
in accordance with the International Registration Plan (as defined under 
section 31701 of title 49, United States Code) shall not limit the 
operation, or require the registration, in the State of a container 
chassis (or impose fines or penalties on the operation of a container 
chassis for being operated in the State without a registration issued by 
the State) if such chassis--
            (1) is registered under the laws of another State; and
            (2) is operating under a trip permit issued by the State.

    (b) Limitation on Registration of Trailers.--A State described in 
subsection (a) may not deny the use of trip permits for the operation in 
the State of a container chassis that is registered under the laws of 
another State.

[[Page 112 STAT. 2681-587]]

    (c) Safety Regulation.--This section shall apply to registration 
requirements only and shall not affect the ability of the State to 
regulate for safety.
    (d) Penalties.--No State described in subsection (a), political 
subdivision of such a State, or person may impose or collect any fee, 
penalty, fine, or other form of damages which is based in whole or in 
part upon the nonpayment of a State registration fee (including related 
weight and licensing fees assessed as part of registration) attributable 
to a container chassis operated in the State (and registered in another 
State) before the date of enactment of this Act, unless it is shown by 
the State, political subdivision, or person that such container chassis 
was not operated in the State under a trip permit issued by the State.
    (e) Container Chassis Defined.--In this section, the term 
``container chassis'' means a trailer, semi-trailer, or auxiliary axle 
used exclusively for the transportation of ocean shipping containers.
    Sec. 110. Reauthorization of the Federal Aviation Administration. 
(a) <> Period of Applicability of Certain 
Amendments.--Effective September 29, 1998, section 125 of the Federal 
Aviation Reauthorization Act of 1996 (49 U.S.C. 47114 note; 110 Stat. 
3220) is repealed.

    (b) Airport Improvement Program.--
            (1) Authorization of appropriations.--Section 48103 of title 
        49, United States Code, is amended--
                    (A) by striking ``September 30, 1996'' and inserting 
                ``September 30, 1998''; and
                    (B) by striking ``$2,280,000,000'' and all that 
                follows through the period at the end and inserting the 
                following: ``$1,205,000,000 for the six-month period 
                beginning October 1, 1998''.
            (2) Obligational authority.--Section 47104(c) of title 49, 
        United States Code, is amended by striking ``September 30, 
        1998'' and inserting ``March 31, 1999''.

    (c) Aviation Insurance Program Amendments.--
            (1) Reimbursement of insured party's subrogee.--Section 
        44309(a) of title 49, United States Code, is amended to read as 
        follows:

    ``(a) Losses.--
            ``(1) Actions against united states.--A person may bring a 
        civil action in a district court of the United States or in the 
        United States Court of Federal Claims against the United States 
        Government when--
                    ``(A) a loss insured under this chapter is in 
                dispute; or
                    ``(B)(i) the person is subrogated under a contract 
                between the person and a party insured under this 
                chapter (other than section 44305(b)) to the rights of 
                the insured party against the United States Government; 
                and
                    ``(ii) the person has paid to the insured party, 
                with the approval of the Secretary of Transportation, an 
                amount for a physical damage loss that the Secretary has 
                determined is a loss covered by insurance issued under 
                this chapter (other than section 44305(b)).
            ``(2) Limitation.--A civil action involving the same matter 
        (except the action authorized by this subsection) may not be 
        brought against an agent, officer, or employee of the Government 
        carrying out this chapter.

[[Page 112 STAT. 2681-588]]

            ``(3) Procedure.--To the extent applicable, the procedure in 
        an action brought under section 1346(a)(2) of title 28, United 
        States Code, applies to an action under this subsection.''.
            (2) Extension of aviation insurance program.--Section 44310 
        of such title is amended by striking ``December 31, 1998.'' and 
        inserting ``March 31, 1999.''.

    (d) Eligibility of AIP Funds to Assess Y2K Compliance.--
            (1) Eligibility.--For fiscal year 1999 the term ``airport 
        development'' under section 47102(3) of title 49, United States 
        Code, may include activities of an airport sponsor of a 
        commercial service airport (as defined by section 47102(7) of 
        such title) to assess the Year 2000 processing capabilities of 
        any airport facilities, technology systems, or equipment owned 
        by the airport sponsor and directly related to airport 
        activities, regardless of whether such facilities, systems, or 
        equipment are otherwise eligible for assistance under chapter 
        471 of such title. Such activities may include testing 
        associated with such assessment.
            (2) Limitations.--
                    (A) Only funds apportioned to sponsors under section 
                47114(c) of title 49, United States Code, or to States 
                under subsections (d) and (e) of section 47114 of such 
                title, may be used for activities described in paragraph 
                (1).
                    (B) The expanded eligibility under paragraph (1) 
                applies only to the assessment (and associated testing) 
                with respect to the Year 2000 processing capabilities of 
                airport facilities, systems, and equipment owned by the 
                airport sponsor.
            (3) Definition.--In this subsection, the term ``Year 2000 
        processing'' means the processing (including, without 
        limitation, calculating, comparing, sequencing, displaying, or 
        storing), transmitting, or receiving of date or date/time data 
        from, into, and between the twentieth and twenty-first 
        centuries, and the years 1999 and 2000, and leap year 
        calculations.

    (e) Scorekeeping Adjustment.--Notwithstanding Rule 3 of the Budget 
Scorekeeping Guidelines set forth in the Joint Explanatory Statement of 
the Committee of Conference accompanying Conference Report No. 105-217, 
legislation in this section that would have been estimated by the Office 
of Management and Budget as changing direct spending or receipts under 
section 252 of the Balanced Budget and Emergency Deficit Control Act of 
1985 were it included in an Act other than an appropriation Act shall be 
treated as direct spending or receipts legislation, as appropriate, 
under section 252 of the Balanced Budget and Emergency Deficit Control 
Act of 1985.
    (f) Joint Venture Agreements.
            (1) In general.--Subchapter I of chapter 417 is amended by 
        adding at the end the following:

``Sec. 41716. Joint venture agreements <> 

    ``(a) Definitions.--In this section, the following definitions 
apply:
            ``(1) Joint venture agreement.--The term `joint venture 
        agreement' means an agreement entered into by a major air 
        carrier on or after January 1, 1998, with regard to (A) code-
        sharing, blocked-space arrangements, long-term wet leases (as 
        defined in section 207.1 of title 14, Code of Federal 
        Regulations)

[[Page 112 STAT. 2681-589]]

        of a substantial number (as defined by the Secretary by 
        regulation) of aircraft, or frequent flyer programs, or (B) any 
        other cooperative working arrangement (as defined by the 
        Secretary by regulation) between 2 or more major air carriers 
        that affects more than 15 percent of the total number of 
        available seat miles offered by the major air carriers.
            ``(2) Major air carrier.--The term `major air carrier' means 
        a passenger air carrier that is certificated under chapter 411 
        of this title and included in Carrier Group III under criteria 
        contained in section 04 of part 241 of title 14, Code of Federal 
        Regulations.
      ``(b) Submission of Joint Venture Agreement.--At least 30 days 
before a joint venture agreement may take effect, each of the major air 
carriers that entered into the agreement shall submit to the Secretary--
            ``(1) a complete copy of the joint venture agreement and all 
        related agreements; and
            ``(2) other information and documentary material that the 
        Secretary may require by regulation.

    ``(c) Extension of Waiting Period.--
            ``(1) In general.--The Secretary may extend the 30-day 
        period referred to in subsection (b) until--
                    ``(A) in the case of a joint venture agreement with 
                regard to code-sharing, the 150th day following the last 
                day of such period; and
                    ``(B) in the case of any other joint venture 
                agreement, the 60th day following the last day of such 
                period.
            ``(2) <> Publication 
        of reasons for extension.--If the Secretary extends the 30-day 
        period referred to in subsection (b), the Secretary shall 
        publish in the Federal Register the Secretary's reasons for 
        making the extension.
      ``(d) Termination of Waiting Period.--At any time after the date 
of submission of a joint venture agreement under subsection (b), the 
Secretary may terminate the waiting periods referred to in subsections 
(b) and (c) with respect to the agreement.
      ``(e) Regulations.--The effectiveness of a joint venture agreement 
may not be delayed due to any failure of the Secretary to issue 
regulations to carry out this section.
      ``(f) Memorandum To Prevent Duplicative Reviews.--Promptly after 
the date of enactment of this section, the Secretary shall consult with 
the Assistant Attorney General of the Antitrust Division of the 
Department of Justice in order to establish, through a written 
memorandum of understanding, preclearance procedures to prevent 
unnecessary duplication of effort by the Secretary and the Assistant 
Attorney General under this section and the antitrust laws of the United 
States, respectively.
      ``(g) Prior Agreements.--With respect to a joint venture agreement 
entered into before the date of enactment of this section as to which 
the Secretary finds that--
            ``(1) the parties submitted the agreement to the Secretary 
        before such date of enactment; and
            ``(2) the parties submitted all information on the agreement 
        requested by the Secretary,

the waiting period described in paragraphs (2) and (3) shall begin on 
the date, as determined by the Secretary, on which all such information 
was submitted and end on the last day to which the period could be 
extended under this section.

[[Page 112 STAT. 2681-590]]

      ``(h) Limitation on Statutory Construction.--The authority granted 
to the Secretary under this section shall not in any way limit the 
authority of the Attorney General to enforce the antitrust laws as 
defined in the first section of the Clayton Act (15 U.S.C. 12).''.
            (2) Conforming amendment.--The analysis for subchapter I of 
        chapter 417 is amended by adding at the end the following:

``41716. Joint venture agreements.''.

    (g) Competitive Practices in the Airline Industry.--
            (1) National Research Council.--
                    (a) Study.--The National Research Council of the 
                National Academy of Sciences shall complete a 
                comprehensive update of the 1991 study of airline 
                deregulation prepared by the Transportation Research 
                Board of the Council. The update shall include updated 
                versions of the chapters contained in the study 
                pertaining to competitive issues in the airline industry 
                as well as recommendations for changes in the statutory 
                framework under which the airline industry operates.
                    (b) Report by national research council.--Not later 
                than 6 months after the date of enactment of this Act, 
                the National Research Council shall transmit to Congress 
                and the Secretary of Transportation a report containing 
                the results of the study conducted under paragraph (a).
                    (c) Report by the secretary.--Not later than 2 
                months after the date on which the Secretary receives 
                the report of the National Research Council under 
                paragraph (b), the Secretary shall transmit to Congress 
                a report containing the response of the Secretary to the 
                findings and recommendations of the National Research 
                Council.
            (2) Report to Congress.--The Secretary shall conduct a study 
        and transmit to Congress a report that includes--
                    (a) a description of any complaints received by the 
                Secretary concerning acts of unfair competition or 
                predatory pricing in the airline industry (including the 
                number of such complaints) and of specific examples of 
                such acts;
                    (b) a description of the options of the Secretary 
                for addressing any acts of unfair competition or 
                predatory pricing identified under paragraph (a);
                    (c) an analysis of the guidelines proposed in Docket 
                OST-98-3713, including information documenting and 
                quantifying the impact of the guidelines on the items 
                listed in subsection (3)(c); and
                    (d) a description of the manner in which the 
                Secretary plans to coordinate the handling of predatory 
                pricing and unfair competition complaints against air 
                carriers filed with the Secretary and similar complaints 
                filed with the Attorney General, including methods to 
                ensure efficient use of limited government resources and 
                to ensure that all parties avoid duplicate requests by 
                government agencies for information unless each of the 
                agencies needs the information to carry out its 
                statutory responsibilities.
            (3) Guidelines.--

[[Page 112 STAT. 2681-591]]

                    (a) Issuance.--The Secretary shall not issue final 
                guidelines in Docket OST-98-3713 before the date of 
                transmittal to Congress of a report under subsection 
                (2).
                    (b) Transmittal to congress.--If the Secretary 
                issues final guidelines in Docket OST-98-3713, the 
                Secretary shall transmit the guidelines to Congress.
                    (c) Impact of guidelines.--If, as a result of the 
                study conducted under subsection (2), the Secretary 
                decides to issue final guidelines in Docket OST-98-3713 
                that are different from the guidelines originally 
                proposed, the Secretary shall, as part of the 
                transmittal under paragraph (b), include information 
                that documents and quantifies the impact of the 
                guidelines on the following:
                          (i) Scheduled service to small- and medium-
                      sized communities.
                          (ii) Airfares, including the availability of 
                      senior citizen, Internet, and standby discounts on 
                      routes covered by the guidelines.
                          (iii) The incentive and ability of major air 
                      carriers to offer low airfares.
                          (iv) The incentive of new entrant air carriers 
                      to offer low airfares.
                          (v) The ability of air carriers to offer 
                      inclusive leisure travel for which airfares are 
                      not separately advertised.
                          (vi) Members of frequent flyer programs.
                          (vii) The ability of air carriers to carry 
                      nonorigination and destination traffic on the 
                      portion of routes that are served by new entrant 
                      air carriers covered by the guidelines.
                          (viii) Airline employees.
            (4) Consultation.--In conducting the study under section 
        (2), the Secretary shall consult with the Attorney General, 
        major air carriers, new entrant air carriers, airport and 
        community leaders, academic and economic experts, and airline 
        employees and passengers.
            (5) Effective Date.--The guidelines adopted in Docket OST-
        98-3713, or any similar guidelines, shall not become effective 
        before the last day of the 12-week period beginning on the date 
        of transmittal to Congress of final guidelines in Docket OST-98-
        3713, except that a week shall not count toward such 12-week 
        period unless the House of Representatives is in session for 
        legislative business at least 1 day during the week.

    Sec. 111. Steel Imports Into the United States. (a) Findings.--
Congress makes the following findings:
            (1) The current financial crises in Asia, the independent 
        States of the former Soviet Union (as defined in section 3 of 
        the FREEDOM Support Act), Russia, and other areas of the world, 
        involve significant depreciation in the currencies of several 
        key steel-producing and steel-consuming countries, along with a 
        collapse in the domestic demand for steel in the countries.
            (2) The crises have generated and will continue to generate 
        increases in United States imports of steel, both from the 
        countries whose currencies have been depreciated and from other 
        Asian steel-producing countries that are no longer able

[[Page 112 STAT. 2681-592]]

        to export steel to the countries that are experiencing an 
        economic crisis.
            (3) United States imports of finished steel mill products 
        from Asian steel-producing countries, such as the People's 
        Republic of China, Japan, Korea, India, Taiwan, Indonesia, 
        Thailand, and Malaysia, increased by 79 percent in the first 5 
        months of 1998.
            (4) Year-to-date imports of steel from Russia now exceed the 
        record import levels of 1997, and steel imports from Russia and 
        the Ukraine now approach 2,500,000 net tons.
            (5) Foreign government trade restrictions and private 
        restraints of trade distort international trade and investment 
        patterns and result in burdens on United States commerce, 
        including absorption of a disproportionate share of steel 
        diverted from other countries.
            (6) The European Union, for example, despite also being a 
        major economy, in 1997 imported only one-tenth as much finished 
        steel products from Asian steel-producing countries as the 
        United States did and has restricted imports of steel from the 
        independent states of the former Soviet Union and Russia.
            (7) The United States is simultaneously facing a substantial 
        increase in steel imports from the independent states of the 
        former Soviet Union and Russia, caused in part by the closure of 
        Asian markets to steel imports.
            (8) There is a well recognized need for improvement in the 
        enforcement of the United States trade laws to provide an 
        effective response to situations of such increased imports.

    (b) Sense of Congress.--Congress calls upon the President to--
            (1) pursue enhanced enforcement of the United States trade 
        laws with respect to the increase in steel imports into the 
        United States, using all remedies available under United States 
        laws including imposition of offsetting duties, quantitative 
        restrictions, and other appropriate remedial measures;
            (2) pursue with all methods at the President's disposal to 
        achieve a more equitable sharing of the burden of accepting 
        imports of finished steel products from Asia and the independent 
        states of the former Soviet Union;
            (3) establish a task force within the executive branch that 
        has responsibility for closely monitoring imports of steel into 
        the United States; and
            (4) report to Congress not later than January 5, 1999, with 
        a comprehensive plan for responding to the increase in steel 
        imports, including ways of limiting the deleterious effects on 
        employment, prices, and investment in the United States steel 
        industry.

    Sec. 112. Inclusion of Spirit Mound, South Dakota, on the Lewis and 
Clark Trail. (a) Acquisition.--The Secretary of the Interior is 
authorized to acquire on a willing seller basis, at a cost of not to 
exceed $600,000, the tract of land known as ``Spirit Mound'', located on 
South Dakota Highway 19 near Vermilion, South Dakota.
    (b) Inclusion on the Lewis and Clark Trail.--The tract described in 
subsection (a) shall be administered as part of the Lewis and Clark 
National Historic Trail.

[[Page 112 STAT. 2681-593]]

    (c) Cooperative Agreement.--The Secretary of the Interior shall 
enter into a cooperative agreement with Lewis and Clark/Spirit Mound 
Trust Inc., providing for the restoration, interpretation, and long-term 
preservation of, and public access to, Spirit Mound.
    Sec. 113. (a) Designation of Dick Cheney Federal Building.--The 
Federal Building and Post Office located at 100 East B Street, Casper, 
Wyoming, shall be known and designated as the ``Dick Cheney Federal 
Building''.
    (b) References.--Any reference in a law, map, regulation, document, 
paper, or other record of the United States to the Federal Building and 
Post Office referred to in subsection (a) shall be deemed to be a 
reference to the ``Dick Cheney Federal Building''.
    Sec. 114. (a) Designation.--The United States Post Office located at 
297 Larkfield Road in East Northport, New York, shall be known and 
designated as the ``Jerome Anthony Ambro, Jr. Post Office Building''.
    (b) References.--Any reference in a law, map, regulation, document, 
paper, or other record of the United States to the United States Post 
Office referred to in subsection (a) shall be deemed to be a reference 
to the ``Jerome Anthony Ambro, Jr. Post Office Building''.

    Sec. 115. Designation of Lieutenant Henry O. Flipper Station. (a) In 
General.--The facility of the United States Postal Service located at 
Tall Timbers Village Square, United States Highway 19 South, in 
Thomasville, Georgia, shall be known and designated as the ``Lieutenant 
Henry O. Flipper Station''.
    (b) References.--Any reference in a law, map, regulation, document, 
paper, or other record of the United States to the facility of the 
United States Postal Service referred to in subsection (a) shall be 
deemed to be a reference to the ``Lieutenant Henry O. Flipper Station''.
    Sec. 116. William R. ``Billy'' Rolle Post Office Building. (a) 
Designation.--The United States Postal Service building located at 3191 
Grand Avenue in Coconut Grove, Florida, shall be known and designated as 
the ``William R. `Billy' Rolle Post Office Building''.
    (b) References.--Any reference in a law, map, regulation, document, 
paper, or other record of the United States to the building referred to 
in subsection (a) shall be deemed to be a reference to the ``William R. 
`Billy' Rolle Post Office Building''.
    Sec. 117. Helen Miller Post Office Building. (a) Designation.--The 
United States Postal Service building located at 550 Fisherman Street in 
Opa Locka, Florida, shall be known and designated as the ``Helen Miller 
Post Office Building''.
    (b) References.--Any reference in a law, map, regulation, document, 
paper, or other record of the United States to the building referred to 
in subsection (a) shall be deemed to be a reference to the ``Helen 
Miller Post Office Building''.
    Sec. 118. Essie Silva Post Office Building. (a) Designation.--The 
United States Postal Service building located at 18690 N.W. 37th Avenue 
in Carol City, Florida, shall be known and designated as the ``Essie 
Silva Post Office Building''.
    (b) References.--Any reference in a law, map, regulation, document, 
paper, or other record of the United States to the building referred to 
in subsection (a) shall be deemed to be a reference to the ``Essie Silva 
Post Office Building''.

[[Page 112 STAT. 2681-594]]

    Sec. 119. Athalie Range Post Office Building. (a) Designation.--The 
United States Postal Service building located at 500 North West 2d 
Avenue in Miami, Florida, shall be known and designated as the ``Athalie 
Range Post Office Building''.
    (b) References.--Any reference in a law, map, regulation, document, 
paper, or other record of the United States to the building referred to 
in subsection (a) shall be deemed to be a reference to the ``Athalie 
Range Post Office Building''.
    Sec. 120. Garth Reeves, Sr. Post Office Building. (a) Designation.--
The United States Postal Service building located at 995 North West 
119th Street in Miami, Florida, shall be known and designated as the 
``Garth Reeves, Sr. Post Office Building''.
    (b) References.--Any reference in a law, map, regulation, document, 
paper, or other record of the United States to the building referred to 
in subsection (a) shall be deemed to be a reference to the ``Garth 
Reeves, Sr. Post Office Building''.
    Sec. 121. (a) Designation.--The United States Post Office located at 
16250 Highway 603 in Kiln, Mississippi, shall be known and designated as 
the ``Ray J. Favre Post Office Building''.
    (b) References.--Any reference in a law, map, regulation, document, 
paper, or other record of the United States to the United States Post 
Office referred to in subsection (a) shall be deemed to be a reference 
to the ``Ray J. Favre Post Office Building''.
    Sec. 122. (a) Redesignation.--The building of the United States 
Postal Service located at 2419 West Monroe Street, in Chicago, Illinois, 
and known as the Midwest Post Office Building, shall be known and 
designated as the ``Nancy B. Jefferson Post Office Building''.
    (b) References.--Any reference in a law, map, regulation, document, 
paper, or other record of the United States to the building referred to 
in subsection (a) shall be deemed to be a reference to the ``Nancy B. 
Jefferson Post Office Building''.
    Sec. 123. (a) Redesignation.--The facility of the United States 
Postal Service located at 9719 Candelaria Road NE in Albuquerque, New 
Mexico, and known as the Eldorado Station Post Office, shall be known 
and designated as the ``Steve Schiff Post Office''.
    (b) References.--Any reference in a law, map, regulation, document, 
paper, or other record of the United States to the facility referred to 
in subsection (a) shall be deemed to be a reference to the ``Steve 
Schiff Post Office''.
    Sec. 124. (a) Designation.--The United States Post Office located at 
860 Penniman Avenue in Plymouth, Michigan, shall be known and designated 
as the ``Carl D. Pursell Post Office''.
    (b) References.--Any reference in a law, map, regulation, document, 
paper, or other record of the United States to the United States Post 
Office referred to in subsection (a) shall be deemed to be a reference 
to the ``Carl D. Pursell Post Office''.
    Sec. 125. (a) Designation.--The United States Post Office located at 
202 Center Street in Garwood, New Jersey, shall be known and designated 
as the ``James T. Leonard, Sr. Post Office''.
    (b) References.--Any reference in a law, map, regulation, document, 
paper, or other record of the United States to the United States Post 
Office referred to in subsection (a) shall be deemed to be a reference 
to the ``James T. Leonard, Sr. Post Office''.
    Sec. 126. Edgar C. Campbell, Sr., Post Office Building. (a) 
Designation.--The United States Postal Service building located at 658 
63rd Street, in Philadelphia, Pennsylvania, shall

[[Page 112 STAT. 2681-595]]

be known and designated as the ``Edgar C. Campbell, Sr., Post Office 
Building''.
    (b) References.--Any reference in a law, map, regulation, document, 
paper, or other record of the United States to the building referred to 
in subsection (a) shall be deemed to be a reference to the ``Edgar C. 
Campbell, Sr., Post Office Building''.
    Sec. 127. David P. Richardson, Jr., Post Office Building. (a) 
Designation.--The United States Postal Service building located at 5209 
Greene Street, in Philadelphia, Pennsylvania, shall be known and 
designated as the ``David P. Richardson, Jr., Post Office Building''.
    (b) References.--Any reference in a law, map, regulation, document, 
paper, or other record of the United States to the building referred to 
in subsection (a) shall be deemed to be a reference to the ``David P. 
Richardson, Jr., Post Office Building''.
    Sec. 128. (a) Redesignation.--The building of the United States 
Postal Service located at 324 South Laramie Street, in Chicago, 
Illinois, and known as the Austin Post Office Building, shall be known 
and designated as the ``Reverend Milton R. Brunson Post Office 
Building''.
    (b) References.--Any reference in a law, map, regulation, document, 
paper, or other record of the United States to the building referred to 
in subsection (a) shall be deemed to be a reference to the ``Reverend 
Milton R. Brunson Post Office Building''.
    Sec. 129. Designation. (a) In General.--The facility of the United 
States Postal Service located at 3750 North Kedzie Avenue in Chicago, 
Illinois, shall be known and designated as the ``Daniel J. Doffyn Post 
Office Building''.
    (b) References.--Any reference in a law, map, regulation, document, 
paper, or other record of the United States to the United States Post 
Office building referred to in subsection (a) shall be deemed to be a 
reference to the ``Daniel J. Doffyn Post Office Building''.
    Sec. 130. (a) Designation.--The United States Post Office located at 
215 East Jackson Street in Painesville, Ohio, as the ``Karl Bernal Post 
Office Building''.
    (b) References.--Any reference in a law, map, regulation, document, 
paper, or other record of the United States to the United States Post 
Office referred to in subsection (a) shall be deemed to be a reference 
to the ``Karl Bernal Post Office Building''.
    Sec. 131. (a) Designation.--The United States Post Office located at 
95 West #100 South in Provo, Utah, shall be known and designated as the 
``Howard C. Nielson Post Office Building''.
    (b) References.--Any reference in a law, map, regulation, document, 
paper, or other record of the United States to the United States Post 
Office referred to in subsection (a) shall be deemed to be a reference 
to the ``Howard C. Nielson Post Office Building''.
    Sec. 132. (a) Designation.--The United States Postal Service 
building located at 11550 Livingston Road, in Fort Washington, Maryland, 
shall be known and designated as the ``Jacob Joseph Chestnut Post Office 
Building''.
    (b) References.--Any reference in a law, map, regulation, document, 
paper, or other record of the United States to the building referred to 
in subsection (a) shall be deemed to be a reference to the ``Jacob 
Joseph Chestnut Post Office Building''.

[[Page 112 STAT. 2681-596]]

    Sec. 133. (a) Designation.--The Federal building located at 309 
North Church Street in Dyersburg, Tennessee, shall be known and 
designated as the ``Jere Cooper Federal Building''.
    (b) References.--Any reference in a law, map, regulation, document, 
paper, or other record of the United States to the Federal building 
referred to in subsection (a) shall be deemed to be a reference to the 
``Jere Cooper Federal Building''.
    Sec. 134. Notwithstanding any other law, sections 101 (d), (k), (p), 
(s) and (x) of the Omnibus Personnel Reform Amendment Act of 1998, D.C. 
Law 12-124, effective June 11, 1998, are enacted into law.
    Sec. 135. (a) Any right, title, or interest of the United States in 
the property described in subsection (b) is hereby waived.
    (b) The property described in this subsection is certain real 
property comprised of approximately 106.94 acres of land located in Anne 
Arundel County in the State of Maryland, said property being originally 
approximately 144.5 acres of land granted to the United States to be 
held in title by the ``Commissioners of the District of Columbia on 
behalf of the United States of America'', in fee simple, by a Judgment 
of Taking in U.S. District Court, Civil Action Number 2391, saving and 
excepting therefrom approximately 37.57 acres of land by deed dated June 
17, 1947, and recorded at Liber 584, Folio 591.
    Sec. 136. Flood Mitigation Near Pierre, South Dakota. (a) In 
General.--
            (1) Land acquisition.--To provide full operational 
        capability to carry out the authorized purposes of the Missouri 
        River Main Stem dams that are part of the Pick-Sloan Missouri 
        River Basin Program authorized by section 9 of the Act entitled 
        ``An Act authorizing the construction of certain public works on 
        rivers and harbors for flood control, and other purposes'', 
        approved December 22, 1944, the Secretary may acquire from 
        willing sellers such land and property in the vicinity of 
        Pierre, South Dakota, or floodproof or relocate such property 
        within the project area, as the Secretary determines is 
        adversely affected by the full wintertime Oahe Powerplant 
        releases.
            (2) Ownership and use.--Any land that is acquired under this 
        authority shall be kept in public ownership and will be 
        dedicated and maintained in perpetuity for a use that is 
        compatible with any remaining flood threat.
            (3) Report.--
                    (A) In general.--The Secretary shall not obligate 
                funds to implement this paragraph until the Secretary 
                has completed a report addressing the criteria for 
                selecting which properties are to be acquired, relocated 
                or floodproofed, and a plan for implementing such 
                measures and has made a determination that the measures 
                are economically justified.
                    (B) Deadline.--The report shall be completed not 
                later than 180 days after funding is made available.
            (4) Coordination and cooperation.--The report and 
        implementation plan--
                    (A) shall be coordinated with the Federal Emergency 
                Management Agency; and
                    (B) shall be prepared in consultation with other 
                Federal agencies, and State and local officials, and 
                residents.

[[Page 112 STAT. 2681-597]]

            (5) Considerations.--Such report should take into account 
        information from prior and ongoing studies.

    (b) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $35,000,000.
    Sec. 137. Grand Forks, North Dakota, and East Grand Forks, 
Minnesota.--The following project for water resources development and 
conservation and other purposes is authorized to be carried out by the 
Secretary of the Army, acting through the Chief of Engineers, 
substantially in accordance with the plans, and subject to the 
conditions recommended in a final report of the Chief of Engineers as 
approved by the Secretary, if the report of the Chief is completed not 
later than December 31, 1998: The project for flood damage reduction and 
recreation, Grand Forks, North Dakota, and East Grand Forks, Minnesota, 
at a total cost of $307,750,000, with an estimated Federal cost of 
$154,360,000 and an estimated non-Federal cost of $153,390,000.
    Sec. 138. Police Corps Act. (a) Training Period.--
            (1) In general.--Section 200108 of the Police Corps Act (42 
        U.S.C. 14097) is amended by striking subsection (b) and 
        inserting the following:

    ``(b) Training Sessions.--A participant in a State Police Corps 
program shall attend up to 24 weeks, but no less than 16 weeks, of 
training at a training center. The Director may approve training 
conducted in not more than 3 separate sessions.''.
            (2) Conforming amendment.--Section 200108(c) of the Police 
        Corps Act (42 U.S.C. 14097(c)) is amended by striking ``16 weeks 
        of''.

    (b) Reauthorization.--Section 200112 of the Police Corps Act (42 
U.S.C. 14101) is amended by striking ``$20,000'' and all that follows 
before the period and inserting ``$50,000,000 for fiscal year 1999, 
$70,000,000 for fiscal year 2000, $90,000,000 for fiscal year 2001, and 
$90,000,000 for fiscal year 2002''.
    Sec. 139. <> Congressional Gold Medals and 
Commemorative Coins. (a) Little Rock Nine.--
            (1) The Congress hereby finds the following:
                    (A) Jean Brown Trickey, Carlotta Walls LaNier, Melba 
                Patillo Beals, Terrence Roberts, Gloria Ray Karlmark, 
                Thelma Mothershed Wair, Ernest Green, Elizabeth Eckford, 
                and Jefferson Thomas, hereafter in this section referred 
                to as the ``Little Rock Nine'', voluntarily subjected 
                themselves to the bitter stinging pains of racial 
                bigotry.
                    (B) The Little Rock Nine are civil rights pioneers 
                whose selfless acts considerably advanced the civil 
                rights debate in this country.
                    (C) The Little Rock Nine risked their lives to 
                integrate Central High School in Little Rock, Arkansas, 
                and subsequently the Nation.
                    (D) The Little Rock Nine sacrificed their innocence 
                to protect the American principle that we are all ``one 
                Nation, under God, indivisible''.
                    (E) The Little Rock Nine have indelibly left their 
                mark on the history of the Nation.
                    (F) The Little Rock Nine have continued to work 
                toward equality for all Americans.
            (2)(A) The President is authorized to present, on behalf of 
        Congress, to Jean Brown Trickey, Carlotta Walls LaNier, Melba 
        Patillo Beals, Terrence Roberts, Gloria Ray Karlmark,

[[Page 112 STAT. 2681-598]]

        Thelma Mothershed Wair, Ernest Green, Elizabeth Eckford, and 
        Jefferson Thomas, commonly referred to as the ``Little Rock 
        Nine'', gold medals of appropriate design, in recognition of the 
        selfless heroism such individuals exhibited and the pain they 
        suffered in the cause of civil rights by integrating Central 
        High School in Little Rock, Arkansas.
            (B) For purposes of the presentation referred to in 
        subsection (A) the Secretary of the Treasury shall strike a gold 
        medal with suitable emblems, devices, and inscriptions to be 
        determined by the Secretary for each recipient.
            (C) <> Effective October 1, 1998, 
        there be authorized to be appropriated such sums as may be 
        necessary to carry out this subsection.
            (3)(A) The Secretary of the Treasury may strike and sell 
        duplicates in bronze of the gold medals struck pursuant to 
        subsection (a)(2)(B) under such regulations as the Secretary may 
        prescribe, at a price sufficient to cover the cost thereof, 
        including labor, materials, dies, use of machinery, and overhead 
        expenses, and the cost of the gold medal.
            (B) The appropriation used to carry out this subsection 
        shall be reimbursed out of the proceeds of sales under 
        subsection (a)(3)(A).
            (4) The medals struck pursuant to this subsection are 
        national medals for purposes of chapter 51 of title 31, United 
        States Code.

    (b) Gerald R. and Betty Ford.--
            (1) The President is authorized to present, on behalf of the 
        Congress, to Gerald R. and Betty Ford a gold medal of 
        appropriate design--
                    (A) in recognition of their dedicated public service 
                and outstanding humanitarian contributions to the people 
                of the United States; and
                    (B) in commemoration of the following occasions in 
                1998:
                          (i) The 85th anniversary of the birth of 
                      President Ford.
                          (ii) The 80th anniversary of the birth of Mrs. 
                      Ford.
                          (iii) The 50th wedding anniversary of 
                      President and Mrs. Ford.
                          (iv) The 50th anniversary of the 1st election 
                      of Gerald R. Ford to the United States to the 
                      United States House of Representatives.
                          (v) The 25th anniversary of the approval of 
                      Gerald R. Ford by the Congress to become Vice 
                      President of the United States.
            (2) For purposes of the presentation referred to in 
        subsection (b)(1), the Secretary of the Treasury shall strike a 
        gold medal with suitable emblems, devices, and inscriptions to 
        be determined by the Secretary.
            (3) There are authorized to be appropriated not to exceed 
        $20,000 to carry out this subsection.
            (4) The Secretary of the Treasury may strike and sell 
        duplicates in bronze of the gold medal struck pursuant to 
        subsection (b)(2) under such regulations as the Secretary may 
        prescribe, at a price sufficient to cover the cost thereof, 
        including labor, materials, dies, use of machinery, and overhead 
        expenses, and the cost of the gold medal.

[[Page 112 STAT. 2681-599]]

            (5) The appropriation used to carry out this subsection 
        shall be reimbursed out of the proceeds of sales under 
        subsection (b)(4).
            (6) The medals struck pursuant to this subsection are 
        national medals for purposes of chapter 51 of title 31, United 
        States Code.

    (c) <> 6-Month Extension for Certain 
Sales.--Notwithstanding section 101(7)(D) of the United States 
Commemorative Coin Act of 1996, the Secretary of the Treasury may, at 
any time before January 1, 1999, make bulk sales at a reasonable 
discount to the Jackie Robinson Foundation of not less than 20 percent 
of any denomination of proof and uncirculated coins minted under section 
101(7) of such Act which remained unissued as of July 1, 1998, except 
that the total number of coins of any such denomination which were 
issued under such section or this section may not exceed the amount of 
such denomination of coins which were authorized to be minted and issued 
under section 101(7)(A) of such Act.

    Sec. 140. (a) Land Conveyance, San Joaquin County, California.--
Notwithstanding any other provision of law (including the Federal 
Property and Administrative Services Act of 1949 (40 U.S.C. 471 et 
seq.)), the Attorney General shall convey, by quit claim deed and by 
negotiated sale, to the City of Tracy, California (in this section 
referred to as the ``City''), the interest of the United States in a 
parcel of real property consisting of approximately 200 acres located in 
San Joaquin County, California, and currently administered by the 
Federal Bureau of Prisons of the Department of Justice. The Attorney 
General shall complete the conveyance to the City not later than 120 
days after the date of the enactment of this Act.
    (b) Description of Property.--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 Attorney General. 
The cost of the survey shall be borne by the City.
    (c) Purpose of Conveyance.--The purpose of the real property 
conveyance under subsection (a) is to permit the City to use 
approximately 150 acres of the conveyed property as the location of a 
joint secondary and post secondary educational facility and for other 
educational purposes and to use approximately 50 acres of the conveyed 
property for economic development. In the event that the City determines 
that a joint secondary and post secondary educational facility is 
unfeasible for the 150-acre portion of the conveyed property, the City 
shall use up to 50 acres of that portion for at least 30 years as the 
location for a secondary school and for other educational purposes and 
use up to 100 acres of that portion as a public park and for other 
recreational purposes.
    (d) Conditions on Use.--(1) The use of the real property conveyed 
under subsection (a) for educational purposes, as provided in subsection 
(c), shall be subject to the approval of the Secretary of Education.
    (2) The use of the conveyed real property for economic development, 
as provided in subsection (c), shall be subject to the approval of the 
Attorney General.
    (3) If a portion of the conveyed real property is used as a public 
park or for other recreational purposes, as provided in subsection (c), 
the use of such portion shall be subject to the approval of the 
Secretary of the Interior.

[[Page 112 STAT. 2681-600]]

    (e) Reversionary Interests.--(1) If the Secretary of Education 
determines at any time that the portion of the real property conveyed 
under subsection (a) that is to be used for educational purposes is not 
being used for such purposes, all right, title, and interest in and to 
that portion of the property, including any improvements thereon, shall 
revert to the United States.
    (2) If the Attorney General determines at any time that the portion 
of the real property conveyed under subsection (a) that is to be used 
for economic development is not being used for such purposes, all right, 
title, and interest in and to that portion of the property, including 
any improvements thereon, shall revert to the United States.
    (3) If a portion of the real property conveyed under subsection (a) 
is used as a public park or for other recreational purposes, as provided 
in subsection (c), and the Secretary of the Interior determines that 
such portion is no longer being used for such purposes, all right, 
title, and interest in and to that portion of the property, including 
any improvements thereon, shall revert to the United States.
    (f) Additional Terms and Conditions.--The Attorney General may 
require such additional terms and conditions in connection with the 
conveyance under subsection (a) as the Attorney General considers 
appropriate to protect the interests of the United States.
    Sec. 141. <> (a) 
Short Title. This section may be cited as the ``Lorton Technical 
Corrections Act of 1998''.

    (b) Transfer of Land to General Services Administration. Section 
11201 of the National Capital Revitalization and Self-Government 
Improvement Act of 1997 (Public Law 105-33; D.C. Code 24-1201) is 
amended--
            (1) by redesignating the second subsection (g) and 
        subsection (h) as subsections (h) and (i);
            (2) in subsection (g)(1)--
                    (A) by inserting ``(A)'' before ``Notwithstanding'';
                    (B) by striking ``Except as provided in paragraph 
                (2)'' and all that follows through ``Department of the 
                Interior.''; and
                    (C) by adding at the end the following new 
                subparagraphs:
            ``(B) <> Contingent on the 
        General Services Administration (GSA) receiving the necessary 
        appropriations to carry out the requirements of this paragraph 
        and subsection (g), and notwithstanding the Federal Property and 
        Administrative Services Act of 1949 (40 U.S.C. 471 et seq.), not 
        later than 60 days after the date of the enactment of the Lorton 
        Technical Corrections Act of 1998, any property on which the 
        Lorton Correctional Complex is located shall be transferred to 
        the GSA.
            ``(C) Not later than 1 year after the date of the enactment 
        of the Lorton Technical Corrections Act of 1998, Fairfax County 
        shall submit a reuse plan that complies with all requisite 
        approvals to the Administrator of General Services, that aims to 
        maximize use of the land for open space, park land, or 
        recreation, while delineating permissible or required uses, 
        potential development densities, and any time limits on such 
        development factors of the property on which the Lorton 
        Correctional Complex is located.
            ``(D) Not later than 180 days after the date of the 
        enactment of the Lorton Technical Corrections Act of 1998, the 
        Secretary

[[Page 112 STAT. 2681-601]]

        of the Interior shall notify GSA of any property it requests to 
        be transferred to the Department of the Interior for the purpose 
        of a land exchange by the United States Fish and Wildlife 
        Service within the Commonwealth of Virginia or such other 
        purposes consistent with the reuse plan developed by Fairfax 
        County as the Secretary may request. The Administrator of 
        General Services shall approve the Secretary's request to the 
        extent that the request is consistent with the reuse plan 
        developed by Fairfax County and does not result in a significant 
        reduction in the marketability or value of any remaining 
        property. The Administrator of General Services shall coordinate 
        with the Secretary of the Interior to resolve any conflicts 
        presented by the Department of the Interior's request and shall 
        transfer the property to the Department of the Interior at no 
        cost.
            ``(E) Any property not transferred to the Department of the 
        Interior under subparagraph (D) shall be disposed of according 
        to paragraphs (2) and (4).'';
            (3) in subsection (g)(2)(A)(ii) by striking ``Department of 
        Parks and Recreation'' each place it appears and inserting 
        ``Park Authority'';
            (4) in subsection (g) by adding at the end the following new 
        paragraphs:
            ``(4) Conditions on transfer of lorton property east of ox 
        road (state route 123).--
                    ``(A) In general.--With respect to property east of 
                Ox Road (State Route 123) on which the Lorton 
                Correctional Complex is located, the Administrator of 
                General Services shall--
                          ``(i) cooperate with the District of Columbia 
                      Corrections Trustee to determine property 
                      necessary for the Trustee to maintain the security 
                      of the Lorton Correctional Complex until its 
                      closure;
                          ``(ii) prepare a report of title, complete a 
                      property description, provide protection and 
                      maintenance, conduct an environmental assessment 
                      of the property to determine the extent of 
                      contamination, complete National Environmental 
                      Policy Act of 1969 (42 U.S.C. 4331 et seq.) and 
                      National Historic Preservation Act (16 U.S.C. 470 
                      et seq.) processes for closure and disposal of the 
                      property, and provide an estimate of the cost for 
                      remediation and contingent on receiving the 
                      necessary appropriations complete the remediation 
                      in compliance with applicable Federal and State 
                      environmental laws;
                          ``(iii) develop a disposition strategy 
                      incorporating the Fairfax County reuse plan and 
                      the Department of the Interior's land transfer 
                      request, and resolve conflicts between the plan 
                      and the transfer request, or between the reuse 
                      plan, the transfer request and the results of the 
                      environmental studies;
                          ``(iv) negotiate with any entity that has a 
                      lease, agreement, memorandum of understanding, 
                      right-of-way, or easement with the District of 
                      Columbia to occupy or utilize any parcels of such 
                      property on the date of the enactment of this 
                      title, to perfect or extend

[[Page 112 STAT. 2681-602]]

                      such lease, agreement, memorandum of 
                      understanding, right-of-way, or easement;
                          ``(v) transfer any property identified for use 
                      for open space, park land, or recreation in the 
                      Fairfax County reuse plan to the Northern Virginia 
                      Regional Park Authority, the Fairfax County Park 
                      Authority, or another public entity, subject to 
                      the condition that the recipient use the conveyed 
                      property only for open space, park land, or 
                      recreation and that the transfer be at fair market 
                      value considering the highest and best use of the 
                      property to be open space, park land, and 
                      recreation;
                          ``(vi) not later than 60 days after the 
                      property is transferred to the General Services 
                      Administration, transfer at fair market value the 
                      six-acre parcel east of Shirley Highway on 
                      Interstate 95 to Amtrak, subject to such terms and 
                      conditions as the Administrator determines to be 
                      in the best interest of the United States;
                          ``(vii) dispose of any parcels not reserved by 
                      the Department of the Interior and not otherwise 
                      addressed under this subparagraph at fair market 
                      value, subject to such terms and conditions as the 
                      Administrator determines to be in the best 
                      interest of the United States;
                          ``(viii) deposit any proceeds from the sale of 
                      property on which the Lorton Correctional Complex 
                      is located into a special fund established in the 
                      treasury for purposes of covering real property 
                      utilization and disposal related expenses, 
                      including environmental compliance and remediation 
                      for the Lorton Correctional Complex until all 
                      property has been conveyed; and
                          ``(ix) deposit any remaining funds in the 
                      Policy and Operations appropriation account of the 
                      General Services Administration to be used for 
                      real property utilization and disposal activities 
                      until expended.
                    ``(B) Report.--Not later than 90 days after the date 
                of the receipt of the Fairfax County reuse plan and the 
                Department of the Interior property transfer request by 
                the Administrator of General Services, the Administrator 
                shall report to the Committees on Appropriations and 
                Government Reform and Oversight of the House of 
                Representatives, and the Committees on Appropriations 
                and Governmental Affairs of the Senate on plans to 
                comply with the terms of this paragraph and any 
                estimated costs associated with such compliance.
                    ``(C) Authorization.--There is authorized to be 
                appropriated such sums as are necessary from the general 
                funds of the Treasury, to remain available until 
                expended, to the Policy and Operations appropriation 
                account of the General Services Administration for the 
                real property utilization and disposal activities in 
                carrying out the provisions of this title.
            ``(5) Jurisdiction.--Any property disposed of according to 
        paragraphs (2) and (4) shall be under the jurisdiction of the 
        Commonwealth of Virginia. Any development of such property and 
        any property transferred to the Department of the Interior

[[Page 112 STAT. 2681-603]]

        for exchange purposes shall comply with any applicable planning 
        and zoning requirements of Fairfax County and the Fairfax County 
        reuse plan.''.

    Sec. 142. <> Olympic and Amateur Sports. (a) Short Title.--
This section may be cited as the ``Olympic and Amateur Sports Act 
Amendments of 1998''.

    (b) Amendment of Title 36, United States Code; Title of Chapter.--
            (1) Except as otherwise expressly provided, whenever in this 
        section an amendment or repeal is expressed in terms of an 
        amendment to, or repeal of, a section or other provision, the 
        reference shall be considered to be made to a section or other 
        provision of title 36, United States Code.
            (2) Section 220501 is amended--
                    (A) by striking ``Definitions'' in the heading and 
                inserting ``Title and Definitions'';
                    (B) by inserting after the heading the following:

    ``(a) <> Title.--This chapter may 
be cited as the `Ted Stevens Olympic and Amateur Sports Act'.''; and
                    (C) by inserting ``(b) Definitions.--'' immediately 
                before ``For the purposes of''.

    (c) Definitions.--Section 220501 is amended by--
            (1) inserting ``or paralympic sports organization'' after 
        ``national governing body'' in paragraph (1);
            (2) redesignating paragraph (7) as paragraph (8); and
            (3) inserting after paragraph (6) the following:

    ``(7) `paralympic sports organization' means an amateur sports 
organization which is recognized by the corporation under section 220521 
of this title.''.
    (d) Purposes.--Section 220503 is amended by--
            (1) striking ``Olympic Games'' each place it appears in 
        paragraphs (3) and (4) and inserting ``Olympic Games, the 
        Paralympic Games,''; and
            (2) striking paragraph (13) and inserting the following:
            ``(13) to encourage and provide assistance to amateur 
        athletic programs and competition for amateur athletes with 
        disabilities, including, where feasible, the expansion of 
        opportunities for meaningful participation by such amateur 
        athletes in programs of athletic competition for able-bodied 
        amateur athletes; and''.

    (e) Membership.--Section 220504(b) is amended by--
            (1) striking paragraphs (1) and (2) and inserting the 
        following:
            ``(1) amateur sports organizations recognized as national 
        governing bodies and paralympic sports organizations in 
        accordance with section 220521 of this title, including through 
        provisions which establish and maintain a National Governing 
        Bodies' Council composed of representatives of the national 
        governing bodies and any paralympic sports organizations and 
        selected by their boards of directors or such other governing 
        boards to ensure effective communication between the corporation 
        and such national governing bodies and paralympic sports 
        organizations;
            ``(2) amateur athletes who are actively engaged in amateur 
        athletic competition or who have represented the United States 
        in international amateur athletic competition within the 
        preceding 10 years, including through provisions which--

[[Page 112 STAT. 2681-604]]

                    ``(A) <> establish and 
                maintain an Athletes' Advisory Council composed of, and 
                elected by, such amateur athletes to ensure 
                communication between the corporation and such amateur 
                athletes; and
                    ``(B) ensure that the membership and voting power 
                held by such amateur athletes is not less than 20 
                percent of the membership and voting power held in the 
                board of directors of the corporation and in the 
                committees and entities of the corporation;''; and
            (2) inserting a comma and ``the Paralympic Games,'' after 
        ``Olympic Games'' in paragraph (3).

    (f) Powers.--
            (1) General corporate powers.--Section 220505(b)(9) is 
        amended by striking ``sued; and'' and inserting ``sued, except 
        that any civil action brought in a State court against the 
        corporation and solely relating to the corporation's 
        responsibilities under this Act shall be removed, at the request 
        of the corporation, to the district court of the United States 
        in the district in which the action was brought, and such 
        district court shall have original jurisdiction over the action 
        without regard to the amount in controversy or citizenship of 
        the parties involved, and except that neither this paragraph nor 
        any other provision of this chapter shall create a private right 
        of action under this chapter; and''.
            (2) Powers related to amateur athletics and the olympic 
        games.--Section 220505(c) is amended by--
                    (A) striking ``Organization;'' in paragraph (2) and 
                inserting ``Organization and as its national Paralympic 
                committee in relations with the International Paralympic 
                Committee;'';
                    (B) striking ``Games and of'' in paragraph (3) and 
                inserting ``Games, the Paralympic Games, and'';
                    (C) striking ``Games;'' in paragraph (4) and 
                inserting ``Games, or as paralympic sports organizations 
                for any sport that is included on the program of the 
                Paralympic Games;''; and
                    (D) striking ``Games,'' in paragraph (5) and 
                inserting ``Games, the Paralympic Games, the Pan-
                American Games, world championship competition,''.

    (g) Use of Olympic, Paralympic, and Pan-American Symbols.--Section 
220506 is amended by--
            (1) striking ``rings;'' in subsection (a)(2) and inserting 
        ``rings, the symbol of the International Paralympic Committee, 
        consisting of 3 TaiGeuks, or the symbol of the Pan-American 
        Sports Organization, consisting of a torch surrounded by 
        concentric rings;'';
            (2) inserting `` `Paralympic', `Paralympiad', `Pan-
        American', `America Espirito Sport Fraternite','' before ``or 
        any combination'' in subsection (a)(4);
            (3) inserting a comma and ``International Paralympic 
        Committee, the Pan-American Sports Organization,'' after 
        ``International Olympic Committee'' in subsection (b);
            (4) inserting ``the Paralympic team,'' before ``the Pan-
        American team'' in subsection (b);
            (5) inserting a comma and ``Paralympic, or Pan-American 
        Games'' after ``any Olympic'' in subsection (c)(3);

[[Page 112 STAT. 2681-605]]

            (6) inserting a comma and ``the International Paralympic 
        Committee, the Pan-American Sports Organization,'' after 
        ``International Olympic Committee'' in subsection (c)(4);
            (7) inserting ``AND GEOGRAPHIC REFERENCE'' after ``PRE-
        EXISTING'' in subsection (d); and
            (8) adding at the end of subsection (d) the following:
            ``(3) Use of the word `Olympic' to identify a business or 
        goods or services is permitted by this section where--
                    ``(A) such use is not combined with any of the 
                intellectual properties referenced in subsections (a) or 
                (c) of this section;
                    ``(B) it is evident from the circumstances that such 
                use of the word `Olympic' refers to the naturally 
                occurring mountains or geographical region of the same 
                name that were named prior to February 6, 1998, and not 
                to the corporation or any Olympic activity; and
                    ``(C) such business, goods, or services are 
                operated, sold, and marketed in the State of Washington 
                west of the Cascade Mountain range and operations, 
                sales, and marketing outside of this area are not 
                substantial.''.

    (h) Resolution of Disputes.--Section 220509 is amended by--
            (1) inserting ``(a) General.--'' before ``The corporation'';
            (2) inserting ``the Paralympic Games,'' before ``the Pan-
        American Games'';
            (3) inserting after ``the corporation.'' the following: ``In 
        any lawsuit relating to the resolution of a dispute involving 
        the opportunity of an amateur athlete to participate in the 
        Olympic Games, the Paralympic Games, or the Pan-American Games, 
        a court shall not grant injunctive relief against the 
        corporation within 21 days before the beginning of such games if 
        the corporation, after consultation with the chair of the 
        Athletes' Advisory Council, has provided a sworn statement in 
        writing executed by an officer of the corporation to such court 
        that its constitution and bylaws cannot provide for the 
        resolution of such dispute prior to the beginning of such 
        games.''; and
            (4) adding at the end thereof the following:

    ``(b) Ombudsman.--
            ``(1) The corporation shall hire and provide salary, 
        benefits, and administrative expenses for an ombudsman for 
        athletes, who shall--
                    ``(A) provide independent advice to athletes at no 
                cost about the applicable provisions of this chapter and 
                the constitution and bylaws of the corporation, national 
                governing bodies, a paralympic sports organizations, 
                international sports federations, the International 
                Olympic Committee, the International Paralympic 
                Committee, and the Pan-American Sports Organization, and 
                with respect to the resolution of any dispute involving 
                the opportunity of an amateur athlete to participate in 
                the Olympic Games, the Paralympic Games, the Pan-
                American Games, world championship competition or other 
                protected competition as defined in the constitution and 
                bylaws of the corporation;
                    ``(B) assist in mediating any such disputes; and
                    ``(C) report to the Athletes' Advisory Council on a 
                regular basis.
            ``(2)(A) The procedure for hiring the ombudsman for athletes 
        shall be as follows:

[[Page 112 STAT. 2681-606]]

                    ``(i) The Athletes' Advisory Council shall provide 
                the corporation's executive director with the name of 
                one qualified person to serve as ombudsman for athletes.
                    ``(ii) The corporation's executive director shall 
                immediately transmit the name of such person to the 
                corporation's executive committee.
                    ``(iii) The corporation's executive committee shall 
                hire or not hire such person after fully considering the 
                advice and counsel of the Athletes' Advisory Council.
        ``If there is a vacancy in the position of the ombudsman for 
        athletes, the nomination and hiring procedure set forth in this 
        paragraph shall be followed in a timely manner.
            ``(B) The corporation may terminate the employment of an 
        individual serving as ombudsman for athletes only if--
                    ``(i) the termination is carried out in accordance 
                with the applicable policies and procedures of the 
                corporation;
                    ``(ii) the termination is initially recommended to 
                the corporation's executive committee by either the 
                corporation's executive director or by the Athletes' 
                Advisory Council; and
                    ``(iii) the corporation's executive committee fully 
                considers the advice and counsel of the Athletes' 
                Advisory Council prior to deciding whether or not to 
                terminate the employment of such individual.''.

    (i) Agent for Service of Process.--The text of section 220510 is 
amended to read as follows: ``As a condition to the exercise of any 
power or privilege granted by this chapter, the corporation shall have a 
designated agent in the State of Colorado to receive service of process 
for the corporation. Notice to or service on the agent, or mailed to the 
business address of the agent, is notice to or service on the 
corporation.''.
    (j) Report.--
            (1) Section 220511(a) is amended to read as follows:

    ``(a) Submission to President and Congress.--The corporation shall, 
on or before the first day of June, 2001, and every fourth year 
thereafter, transmit simultaneously to the President and to each House 
of Congress a detailed report of its operations for the preceding 4 
years, including--
            ``(1) a complete statement of its receipts and expenditures;
            ``(2) a comprehensive description of the activities and 
        accomplishments of the corporation during such 4-year period;
            ``(3) data concerning the participation of women, disabled 
        individuals, and racial and ethnic minorities in the amateur 
        athletic activities and administration of the corporation and 
        national governing bodies; and
            ``(4) a description of the steps taken to encourage the 
        participation of women, disabled individuals, and racial 
        minorities in amateur athletic activities.''.
            (2) The chapter analysis for chapter 2205 is amended by 
        striking the item relating to section 220511 and inserting the 
        following:

``220511. Report.''.

    (k) Complete Teams.--
            (1) General.--Subchapter I of chapter 2205 is amended by 
        adding at the end thereof the following:

[[Page 112 STAT. 2681-607]]

``Sec.  220512. Complete teams

    ``In obtaining representation for the United States in each 
competition and event of the Olympic Games, Paralympic Games, and Pan-
American Games, the corporation, either directly or by delegation to the 
appropriate national governing body or paralympic sports organization, 
may select, but is not obligated to select (even if not selecting will 
result in an incomplete team for an event), athletes who have not met 
the eligibility standard of the national governing body and the 
Corporation, when the number of athletes who have met the eligibility 
standards of such entities is insufficient to fill the roster for an 
event.''.
            (2) The chapter analysis for chapter 2205 is amended by 
        inserting after the item relating to section 220511 the 
        following:

``220512. Complete teams.''.

    (l) Recognition of Amateur Sports Organizations.--Section 220521 is 
amended by--
            (1) striking the first sentence of subsection (a) and 
        inserting the following: ``For any sport which is included on 
        the program of the Olympic Games, the Paralympic Games, or the 
        Pan-American Games, the corporation is authorized to recognize 
        as a national governing body (in the case of a sport on the 
        program of the Olympic Games or Pan-American Games) or as a 
        paralympic sports organization (in the case of a sport on the 
        program of the Paralympic Games for which a national governing 
        body has not been designated under section 220522(b)) an amateur 
        sports organization which files an application and is eligible 
        for such recognition in accordance with the provisions of 
        subsections (a) or (b) of section 220522.'';
            (2) striking ``approved.'' in subsection (a) and inserting 
        ``approved, except as provided in section 220522(b) with respect 
        to a paralympic sports organization.'';
            (3) striking ``hold a public hearing'' in subsection (b) and 
        inserting ``hold at least 2 public hearings'';
            (4) striking ``hearing.'' each place it appears in 
        subsection (b) and inserting ``hearings.''; and
            (5) adding at the end of subsection (b) the following: ``The 
        corporation shall send written notice, which shall include a 
        copy of the application, at least 30 days prior to the date of 
        any such public hearing to all amateur sports organizations 
        known to the corporation in that sport.''.

    (m) Eligibility Requirements.--Section 220522 is amended by--
            (1) inserting ``(a) General.--'' before ``An amateur'';
            (2) striking paragraph (4) and inserting the following:
            ``(4) agrees to submit to binding arbitration in any 
        controversy involving--
                    ``(A) its recognition as a national governing body, 
                as provided for in section 220529 of this title, upon 
                demand of the corporation; and
                    ``(B) the opportunity of any amateur athlete, coach, 
                trainer, manager, administrator or official to 
                participate in amateur athletic competition, upon demand 
                of the corporation or any aggrieved amateur athlete, 
                coach, trainer, manager, administrator or official, 
                conducted in accordance with the Commercial Rules of the 
                American Arbitration Association, as modified and 
                provided for in the

[[Page 112 STAT. 2681-608]]

                corporation's constitution and bylaws, except that if 
                the Athletes' Advisory Council and National Governing 
                Bodies' Council do not concur on any modifications to 
                such Rules, and if the corporation's executive committee 
                is not able to facilitate such concurrence, the 
                Commercial Rules of Arbitration shall apply unless at 
                least two-thirds of the corporation's board of directors 
                approves modifications to such Rules;'';
            (3) striking paragraph (10) and inserting the following:
            ``(10) demonstrates, based on guidelines approved by the 
        corporation, the Athletes' Advisory Council, and the National 
        Governing Bodies' Council, that its board of directors and other 
        such governing boards have established criteria and election 
        procedures for and maintain among their voting members 
        individuals who are actively engaged in amateur athletic 
        competition in the sport for which recognition is sought or who 
        have represented the United States in international amateur 
        athletic competition within the preceding 10 years, that any 
        exceptions to such guidelines by such organization have been 
        approved by the corporation, and that the voting power held by 
        such individuals is not less than 20 percent of the voting power 
        held in its board of directors and other such governing 
        boards;'';
            (4) inserting ``or to participation in the Olympic Games, 
        the Paralympic Games, or the Pan-American Games'' after 
        ``amateur status'' in paragraph (14); and
            (5) adding at the end thereof the following:

    ``(b) Recognition of Paralympic Sports Organizations.--For any sport 
which is included on the program of the Paralympic Games, the 
corporation is authorized to designate, where feasible and when such 
designation would serve the best interest of the sport, and with the 
approval of the affected national governing body, a national governing 
body recognized under subsection (a) to govern such sport. Where such 
designation is not feasible or would not serve the best interest of the 
sport, the corporation is authorized to recognize another amateur sports 
organization as a paralympic sports organization to govern such sport, 
except that, notwithstanding the other requirements of this chapter, any 
such paralympic sports organization--
            ``(1) shall comply only with those requirements, perform 
        those duties, and have those powers that the corporation, in its 
        sole discretion, determines are appropriate to meet the objects 
        and purposes of this chapter; and
            ``(2) may, with the approval of the corporation, govern more 
        than one sport included on the program of the Paralympic 
        Games.''.

    (n) Authority of National Governing Bodies.--Section 220523 is 
amended by--
            (1) striking ``Games and'' in paragraph (6) and inserting 
        ``Games, the Paralympic Games, and''; and
            (2) striking ``Games and'' in paragraph (7) and inserting 
        ``Games, the Paralympic Games, and''.

    (o) Duties of National Governing Bodies.--Section 220524 is amended 
by--
            (1) redesignating paragraphs (4) through (8) as paragraphs 
        (5) through (9); and
            (2) inserting after paragraph (3) the following:

[[Page 112 STAT. 2681-609]]

            ``(4) disseminate and distribute to amateur athletes, 
        coaches, trainers, managers, administrators, and officials in a 
        timely manner the applicable rules and any changes to such rules 
        of the national governing body, the corporation, the appropriate 
        international sports federation, the International Olympic 
        Committee, the International Paralympic Committee, and the Pan-
        American Sports Organization;''.

    (p) Replacement of National Governing Body.--Section 220528 is 
amended by--
            (1) striking ``Olympic Games or both'' in subsection 
        (c)(1)(A) and inserting ``Olympic Games or the Paralympic Games, 
        or in both'';
            (2) striking ``registered'' in subsection (c)(2) and 
        inserting ``certified'';
            (3) striking ``body.'' in subsection (c)(2) and inserting 
        ``body and with any other organization that has filed an 
        application.'';
            (4) inserting ``open to the public'' in subsection (d) after 
        ``formal hearing'' in the first sentence;
            (5) inserting after the second sentence in subsection (d) 
        the following: ``The corporation also shall send written notice, 
        including a copy of the application, at least 30 days prior to 
        the date of the hearing to all amateur sports organizations 
        known to the corporation in that sport.''; and
            (6) striking ``title.'' in subsection (f)(4) and inserting 
        ``title and notify such national governing body of such 
        probation and of the actions needed to comply with such 
        requirements.''.

    (q) <> Special Report to Congress.--Five 
years from the date of the enactment of this Act, the United States 
Olympic Committee shall submit a special report to the Congress on the 
effectiveness of the provisions of chapter 2205 of title 36, United 
States Code, as amended by this Act, together with any additional 
proposed changes to that chapter the United States Olympic Committee 
determines are appropriate.

    Sec. 143. Section 8106(a) of the Department of Defense 
Appropriations Act, 1997 (titles I through VIII of the matter under 
section 101(b) of Public Law 104-208; 110 Stat. 3009-111; 10 U.S.C. 113 
note), is amended by striking ``$3,000,000'' and inserting 
``$1,000,000''.
    Sec. 144. Section 8120 of the Department of Defense Appropriations 
Act, 1999, <> is amended by striking out ``owned, 
or partially owned by'' and inserting in lieu thereof ``if the Secretary 
of Defense determines that'', and is further amended by inserting before 
the period ``owns more than a fifty per centum interest in the 
company''.

    Sec. 145. Modification of Land Conveyance Authority, Armed Forces 
Retirement Home. (a) Postponement of Sale.--Subsection (a) of section 
1053 of the National Defense Authorization Act for Fiscal Year 1997 
(Public Law 104-201), as amended by section 1043 of the Strom Thurmond 
National Defense Authorization Act for Fiscal Year 1999, <> is further amended--
            (1) by inserting ``(1)'' before ``Notwithstanding''; and
            (2) by adding at the end the following:

    ``(2) The sale under paragraph (1) may not occur before April 30, 
1999.''.
    (b) Deposit of Proceeds of Sale.--Subsection (b) of such section 
1053, as so amended, is further amended by adding at the end the 
following:

[[Page 112 STAT. 2681-610]]

    ``(3) The payment received under paragraph (2) shall be deposited in 
the Armed Forces Retirement Home Trust Fund in accordance with section 
1519(a)(2) of the National Defense Authorization Act for Fiscal Year 
1991 (104 Stat. 1730; 24 U.S.C. 419(a)(2)).''.
    Sec. 146. Certification of Exports of Missile Equipment or 
Technology to China. (a) Certification.--Section 1512 of the Strom 
Thurmond National Defense Authorization Act for Fiscal Year 
1999 <> is amended--
            (1) by striking ``The'' and inserting ``(a) Certification.--
        The''; and
            (2) by adding at the end the following:

    ``(b) Exception.--The certification requirement contained in 
subsection (a) shall not apply to the export of inertial reference units 
and components in manned civilian aircraft or supplied as spare or 
replacement parts for such aircraft.''.
    (b) <> Effective Date.--The amendments made 
by this section shall take effect on the later of--
            (1) the enactment of this Act; or
            (2) the enactment of the Strom Thurmond National Defense 
        Authorization Act for Fiscal Year 1999.

    Sec. 147. The Secretary of the Navy, in consultation with the 
Commandant of the Marine Corps, shall assess the requirement for Marine 
Corps warfighting and attrition reserve F/A-18 aircraft and monitor the 
viability of the existing F/A-18 production line to meet these 
requirements: Provided, That, pursuant to section 8005 of the Department 
of Defense Appropriations Act, 1999, the Secretary of the Navy may 
transfer funds sufficient to ensure that the F/A-18 production 
capability remains available to meet Marine Corps F/A-18 warfighting and 
attrition reserve aircraft requirements through additional aircraft 
production.
    Sec. 148. Section 8135 of the Department of Defense Appropriations 
Act, 1992 (Public Law 102-172; 105 Stat. 1212; 37 U.S.C. 301b note), is 
amended--
            (1) in subsection (a), by inserting before the period at the 
        end the following: ``or as a supplemental payment if the 
        officer's final military pay account is already settled''; and
            (2) in subsection (b)--
                    (A) by inserting ``applies'' after ``subsection 
                (a)'';
                    (B) by striking ``January 17, 1991'' and inserting 
                ``August 2, 1990'';
                    (C) by inserting ``(regardless of the date of the 
                commencement of combatant activities in such zone as 
                specified in that Executive Order)'' after ``as a combat 
                zone''; and
                    (D) by striking ``section 302b'' and inserting 
                ``section 301b''.
      Sec. 149. (a) <> Chapter 12 of title 11 of the United States 
Code, as in effect on September 30, 1998, is hereby reenacted for the 
period beginning on October 1, 1998, and ending on April 1, 1999.
      (b) All cases commenced or pending under chapter 12 of title 11, 
United States Code, as reenacted under subsection (a), and all matters 
and proceedings in or relating to such cases, shall be conducted and 
determined under such chapter as if such chapter were continued in 
effect after April 1, 1999. The substantive rights of parties in 
connection with such cases, matters, and proceedings shall continue to 
be governed under the laws applicable to such

[[Page 112 STAT. 2681-611]]

cases, matters, and proceedings as if such chapter were continued in 
effect after April 1, 1999.
      (c) This section shall take effect on October 1, 1998.

    Sec. 150. (a) Extension of Agreement for State of Mississippi.--The 
Secretary of the Interior shall offer to reinstate the Memorandum of 
Agreement between the Mississippi Department of Wildlife Conservation 
and the United States Fish and Wildlife Service concerning the framework 
closing dates for the 1979-1980 through 1981-1982 duck hunting seasons, 
executed in November 1979, for the 1998-1999 duck hunting season in the 
State of Mississippi, except that--
            (1) the duck hunting season shall end on January 31, 1999; 
        and
            (2) the total number of days for the duck hunting season in 
        the State of Mississippi shall not exceed 51 days.
      (b) Extension of Agreement to Other States.--At the request of any 
other State represented on the Lower-Region Regulations Committee of the 
Mississippi Flyway Council, the Secretary of the Interior shall extend 
the agreement described in subsection (a) to that State for the 1998-
1999 duck hunting season if the State agrees to reduce the total number 
of days of the duck hunting season in the State to the extent necessary 
to result in no net increase in the duck harvest in the State for that 
season.

SEC. 151. <> FEDERAL VACANCIES AND APPOINTMENTS.

    (a) Short Title.--This section may be cited as the ``Federal 
Vacancies Reform Act of 1998''.
    (b) In General.--Chapter 33 of title 5, United States Code, is 
amended by striking sections 3345 through 3349 and inserting the 
following:

``Sec. 3345. Acting officer

    ``(a) If an officer of an Executive agency (including the Executive 
Office of the President, and other than the General Accounting Office) 
whose appointment to office is required to be made by the President, by 
and with the advice and consent of the Senate, dies, resigns, or is 
otherwise unable to perform the functions and duties of the office--
            ``(1) the first assistant to the office of such officer 
        shall perform the functions and duties of the office temporarily 
        in an acting capacity subject to the time limitations of section 
        3346;
            ``(2) notwithstanding paragraph (1), the President (and only 
        the President) may direct a person who serves in an office for 
        which appointment is required to be made by the President, by 
        and with the advice and consent of the Senate, to perform the 
        functions and duties of the vacant office temporarily in an 
        acting capacity subject to the time limitations of section 3346; 
        or
            ``(3) notwithstanding paragraph (1), the President (and only 
        the President) may direct an officer or employee of such 
        Executive agency to perform the functions and duties of the 
        vacant office temporarily in an acting capacity, subject to the 
        time limitations of section 3346, if--
                    ``(A) during the 365-day period preceding the date 
                of death, resignation, or beginning of inability to 
                serve of

[[Page 112 STAT. 2681-612]]

                the applicable officer, the officer or employee served 
                in a position in such agency for not less than 90 days; 
                and
                    ``(B) the rate of pay for the position described 
                under subparagraph (A) is equal to or greater than the 
                minimum rate of pay payable for a position at GS-15 of 
                the General Schedule.

    ``(b)(1) Notwithstanding subsection (a)(1), a person may not serve 
as an acting officer for an office under this section, if--
            ``(A) during the 365-day period preceding the date of the 
        death, resignation, or beginning of inability to serve, such 
        person--
                    ``(i) did not serve in the position of first 
                assistant to the office of such officer; or
                    ``(ii) served in the position of first assistant to 
                the office of such officer for less than 90 days; and
            ``(B) the President submits a nomination of such person to 
        the Senate for appointment to such office.

    ``(2) Paragraph (1) shall not apply to any person if--
            ``(A) such person is serving as the first assistant to the 
        office of an officer described under subsection (a);
            ``(B) the office of such first assistant is an office for 
        which appointment is required to be made by the President, by 
        and with the advice and consent of the Senate; and
            ``(C) the Senate has approved the appointment of such person 
        to such office.

    ``(c)(1) Notwithstanding subsection (a)(1), the President (and only 
the President) may direct an officer who is nominated by the President 
for reappointment for an additional term to the same office in an 
Executive department without a break in service, to continue to serve in 
that office subject to the time limitations in section 3346, until such 
time as the Senate has acted to confirm or reject the nomination, 
notwithstanding adjournment sine die.
    ``(2) For purposes of this section and sections 3346, 3347, 3348, 
3349, 3349a, and 3349d, the expiration of a term of office is an 
inability to perform the functions and duties of such office.

``Sec. 3346. Time limitation

    ``(a) Except in the case of a vacancy caused by sickness, the person 
serving as an acting officer as described under section 3345 may serve 
in the office--
            ``(1) for no longer than 210 days beginning on the date the 
        vacancy occurs; or
            ``(2) subject to subsection (b), once a first or second 
        nomination for the office is submitted to the Senate, from the 
        date of such nomination for the period that the nomination is 
        pending in the Senate.

    ``(b)(1) If the first nomination for the office is rejected by the 
Senate, withdrawn, or returned to the President by the Senate, the 
person may continue to serve as the acting officer for no more than 210 
days after the date of such rejection, withdrawal, or return.
    ``(2) Notwithstanding paragraph (1), if a second nomination for the 
office is submitted to the Senate after the rejection, withdrawal, or 
return of the first nomination, the person serving as the acting officer 
may continue to serve--
            ``(A) until the second nomination is confirmed; or

[[Page 112 STAT. 2681-613]]

            ``(B) for no more than 210 days after the second nomination 
        is rejected, withdrawn, or returned.

    ``(c) If a vacancy occurs during an adjournment of the Congress sine 
die, the 210-day period under subsection (a) shall begin on the date 
that the Senate first reconvenes.

``Sec. 3347. Exclusivity

    ``(a) Sections 3345 and 3346 are the exclusive means for temporarily 
authorizing an acting official to perform the functions and duties of 
any office of an Executive agency (including the Executive Office of the 
President, and other than the General Accounting Office) for which 
appointment is required to be made by the President, by and with the 
advice and consent of the Senate, unless--
            ``(1) a statutory provision expressly--
                    ``(A) authorizes the President, a court, or the head 
                of an Executive department, to designate an officer or 
                employee to perform the functions and duties of a 
                specified office temporarily in an acting capacity; or
                    ``(B) designates an officer or employee to perform 
                the functions and duties of a specified office 
                temporarily in an acting capacity; or
            ``(2) the President makes an appointment to fill a vacancy 
        in such office during the recess of the Senate pursuant to 
        clause 3 of section 2 of article II of the United States 
        Constitution.

    ``(b) Any statutory provision providing general authority to the 
head of an Executive agency (including the Executive Office of the 
President, and other than the General Accounting Office) to delegate 
duties statutorily vested in that agency head to, or to reassign duties 
among, officers or employees of such Executive agency, is not a 
statutory provision to which subsection (a)(2) applies.

``Sec. 3348. Vacant office

    ``(a) In this section--
            ``(1) the term `action' includes any agency action as 
        defined under section 551(13); and
            ``(2) the term `function or duty' means any function or duty 
        of the applicable office that--
                    ``(A)(i) is established by statute; and
                    ``(ii) is required by statute to be performed by the 
                applicable officer (and only that officer); or
                    ``(B)(i)(I) is established by regulation; and
                    ``(II) is required by such regulation to be 
                performed by the applicable officer (and only that 
                officer); and
                    ``(ii) includes a function or duty to which clause 
                (i) (I) and (II) applies, and the applicable regulation 
                is in effect at any time during the 180-day period 
                preceding the date on which the vacancy occurs.

    ``(b) Unless an officer or employee is performing the functions and 
duties in accordance with sections 3345, 3346, and 3347, if an officer 
of an Executive agency (including the Executive Office of the President, 
and other than the General Accounting Office) whose appointment to 
office is required to be made by the President, by and with the advice 
and consent of the Senate, dies, resigns, or is otherwise unable to 
perform the functions and duties of the office--

[[Page 112 STAT. 2681-614]]

            ``(1) the office shall remain vacant; and
            ``(2) in the case of an office other than the office of the 
        head of an Executive agency (including the Executive Office of 
        the President, and other than the General Accounting Office), 
        only the head of such Executive agency may perform any function 
        or duty of such office.

    ``(c) If the last day of any 210-day period under section 3346 is a 
day on which the Senate is not in session, the second day the Senate is 
next in session and receiving nominations shall be deemed to be the last 
day of such period.
    ``(d)(1) An action taken by any person who is not acting under 
section 3345, 3346, or 3347, or as provided by subsection (b), in the 
performance of any function or duty of a vacant office to which this 
section and sections 3346, 3347, 3349, 3349a, 3349b, and 3349c apply 
shall have no force or effect.
    ``(2) An action that has no force or effect under paragraph (1) may 
not be ratified.
    ``(e) This section shall not apply to--
            ``(1) the General Counsel of the National Labor Relations 
        Board;
            ``(2) the General Counsel of the Federal Labor Relations 
        Authority;
            ``(3) any Inspector General appointed by the President, by 
        and with the advice and consent of the Senate;
            ``(4) any Chief Financial Officer appointed by the 
        President, by and with the advice and consent of the Senate; or
            ``(5) an office of an Executive agency (including the 
        Executive Office of the President, and other than the General 
        Accounting Office) if a statutory provision expressly prohibits 
        the head of the Executive agency from performing the functions 
        and duties of such office.

``Sec. 3349. Reporting of vacancies

    ``(a) The head of each Executive agency (including the Executive 
Office of the President, and other than the General Accounting Office) 
shall submit to the Comptroller General of the United States and to each 
House of Congress--
            ``(1) notification of a vacancy in an office to which this 
        section and sections 3345, 3346, 3347, 3348, 3349a, 3349b, 
        3349c, and 3349d apply and the date such vacancy occurred 
        immediately upon the occurrence of the vacancy;
            ``(2) the name of any person serving in an acting capacity 
        and the date such service began immediately upon the 
        designation;
            ``(3) the name of any person nominated to the Senate to fill 
        the vacancy and the date such nomination is submitted 
        immediately upon the submission of the nomination; and
            ``(4) the date of a rejection, withdrawal, or return of any 
        nomination immediately upon such rejection, withdrawal, or 
        return.

    ``(b) If the Comptroller General of the United States makes a 
determination that an officer is serving longer than the 210-day period 
including the applicable exceptions to such period under section 3346 or 
section 3349a, the Comptroller General shall report such determination 
immediately to--
            ``(1) the Committee on Governmental Affairs of the Senate;

[[Page 112 STAT. 2681-615]]

            ``(2) the Committee on Government Reform and Oversight of 
        the House of Representatives;
            ``(3) the Committees on Appropriations of the Senate and 
        House of Representatives;
            ``(4) the appropriate committees of jurisdiction of the 
        Senate and House of Representatives;
            ``(5) the President; and
            ``(6) the Office of Personnel Management.

``Sec. 3349a. Presidential inaugural transitions

    ``(a) In this section, the term `transitional inauguration day' 
means the date on which any person swears or affirms the oath of office 
as President, if such person is not the President on the date preceding 
the date of swearing or affirming such oath of office.
    ``(b) With respect to any vacancy that exists during the 60-day 
period beginning on a transitional inauguration day, the 210-day period 
under section 3346 or 3348 shall be deemed to begin on the later of the 
date occurring--
            ``(1) 90 days after such transitional inauguration day; or
            ``(2) 90 days after the date on which the vacancy occurs.

``Sec. 3349b. Holdover provisions

    ``Sections 3345 through 3349a shall not be construed to affect any 
statute that authorizes a person to continue to serve in any office--
            ``(1) after the expiration of the term for which such person 
        is appointed; and
            ``(2) until a successor is appointed or a specified period 
        of time has expired.

``Sec. 3349c. Exclusion of certain officers

    ``Sections 3345 through 3349b shall not apply to--
            ``(1) any member who is appointed by the President, by and 
        with the advice and consent of the Senate to any board, 
        commission, or similar entity that--
                    ``(A) is composed of multiple members; and
                    ``(B) governs an independent establishment or 
                Government corporation;
            ``(2) any commissioner of the Federal Energy Regulatory 
        Commission;
            ``(3) any member of the Surface Transportation Board; or
            ``(4) any judge appointed by the President, by and with the 
        advice and consent of the Senate, to a court constituted under 
        article I of the United States Constitution.

``Sec. 3349d. Notification of intent to nominate during certain recesses 
                        or adjournments

    ``(a) The submission to the Senate, during a recess or adjournment 
of the Senate in excess of 15 days, of a written notification by the 
President of the President's intention to submit a nomination after the 
recess or adjournment shall be considered a nomination for purposes of 
sections 3345 through 3349c if such notification contains the name of 
the proposed nominee and the office for which the person is nominated.
    ``(b) If the President does not submit a nomination of the person 
named under subsection (a) within 2 days after the end

[[Page 112 STAT. 2681-616]]

of such recess or adjournment, effective after such second day the 
notification considered a nomination under subsection (a) shall be 
treated as a withdrawn nomination for purposes of sections 3345 through 
3349c.''.
    (c) Technical and Conforming Amendment.--
            (1) Table of sections.--The table of sections for chapter 33 
        of title 5, United States Code, is amended by striking the 
         matter relating to subchapter III and inserting the following:

``3341. Details; within Executive or military departments.
``[3342. Repealed.]
``3343. Details; to international organizations.
``3344. Details; administrative law judges.
``3345. Acting officer.
``3346. Time limitation.
``3347. Exclusivity.
``3348. Vacant office.
``3349. Reporting of vacancies.
``3349a. Presidential inaugural transitions.
``3349b. Holdover provisions relating to certain independent 
           establishments.
``3349c. Exclusion of certain officers.
``3349d. Notification of intent to nominate during certain recesses or 
           adjournments.''.

            (2) Subchapter heading.--The subchapter heading for 
        subchapter III of chapter 33 of title 5, United States Code, is 
        amended to read as follows:

        ``SUBCHAPTER III--DETAILS, VACANCIES, AND APPOINTMENTS''

    (d) Effective <> Date and Application.--
            (1) Effective date.--Subject to paragraph (2), this section 
        and the amendments made by this section shall take effect 30 
        days after the date of enactment of this section.
            (2) Application.--
                    (A) In general.--This section shall apply to any 
                office that becomes vacant after the effective date of 
                this section.
                    (B) Immediate application of time limitation.--
                Notwithstanding subparagraph (A), for any office vacant 
                on the effective date of this section, the time 
                limitations under section 3346 of title 5, United States 
                Code (as amended by this section) shall apply to such 
                office. Such time limitations shall apply as though such 
                office first became vacant on the effective date of this 
                section.
                    (C) Certain nominations.--If the President submits 
                to the Senate the nomination of any person after the 
                effective date of this section for an office for which 
                such person had been nominated before such date, the 
                next nomination of such person after such date shall be 
                considered a first nomination of such person to that 
                office for purposes of sections 3345 through 3349 and 
                section 3349d of title 5, United States Code (as amended 
                by this section).

TITLE <> II--FISHERIES

                    Subtitle I--Fishery Endorsements

SEC. 201. <> SHORT TITLE.

    This title may be cited as the ``American Fisheries Act''.

[[Page 112 STAT. 2681-617]]

SEC. 202. STANDARD FOR FISHERY ENDORSEMENTS.

    (a) Standard.--Section 12102(c) of title 46, United States Code, is 
amended to read as follows--
    ``(c)(1) A vessel owned by a corporation, partnership, association, 
trust, joint venture, limited liability company, limited liability 
partnership, or any other entity is not eligible for a fishery 
endorsement under section 12108 of this title unless at least 75 per 
centum of the interest in such entity, at each tier of ownership of such 
entity and in the aggregate, is owned and controlled by citizens of the 
United States.
    ``(2) <> The Secretary shall apply section 
2(c) of the Shipping Act, 1916 (46 App. U.S.C. 802(c)) in determining 
under this subsection whether at least 75 per centum of the interest in 
a corporation, partnership, association, trust, joint venture, limited 
liability company, limited liability partnership, or any other entity is 
owned and controlled by citizens of the United States. For the purposes 
of this subsection and of applying the restrictions on controlling 
interest in section 2(c) of such Act, the terms `control' or 
`controlled'--
            ``(A) shall include--
                    ``(i) the right to direct the business of the entity 
                which owns the vessel;
                    ``(ii) the right to limit the actions of or replace 
                the chief executive officer, a majority of the board of 
                directors, any general partner, or any person serving in 
                a management capacity of the entity which owns the 
                vessel; or
                    ``(iii) the right to direct the transfer, operation 
                or manning of a vessel with a fishery endorsement; and
            ``(B) shall not include the right to simply participate in 
        the activities under subparagraph (A), or the use by a mortgagee 
        under paragraph (4) of loan covenants approved by the Secretary.

    ``(3) A fishery endorsement for a vessel that is chartered or leased 
to an individual who is not a citizen of the United States or to an 
entity that is not eligible to own a vessel with a fishery endorsement 
and used as a fishing vessel shall be invalid immediately upon such use.
    ``(4)(A) An individual or entity that is otherwise eligible to own a 
vessel with a fishery endorsement shall be ineligible by reason of an 
instrument or evidence of indebtedness, secured by a mortgage of the 
vessel to a trustee eligible to own a vessel with a fishery endorsement 
that is issued, assigned, transferred or held in trust for a person not 
eligible to own a vessel with a fishery endorsement, unless the 
Secretary determines that the issuance, assignment, transfer, or trust 
arrangement does not result in an impermissible transfer of control of 
the vessel and that the trustee--
            ``(i) is organized as a corporation, and is doing business, 
        under the laws of the United States or of a State;
            ``(ii) is authorized under those laws to exercise corporate 
        trust powers;
            ``(iii) is subject to supervision or examination by an 
        official of the United States Government or a State;
            ``(iv) has a combined capital and surplus (as stated in its 
        most recent published report of condition) of at least 
        $3,000,000; and

[[Page 112 STAT. 2681-618]]

            ``(v) meets any other requirements prescribed by the 
        Secretary.

    ``(B) A vessel with a fishery endorsement may be operated by a 
trustee only with the approval of the Secretary.

    ``(C) A right under a mortgage of a vessel with a fishery 
endorsement may be issued, assigned, or transferred to a person not 
eligible to be a mortgagee of that vessel under section 31322(a)(4) of 
this title only with the approval of the Secretary.
    ``(D) The issuance, assignment, or transfer of an instrument or 
evidence of indebtedness contrary to this paragraph is voidable by the 
Secretary.
    ``(5) The requirements of this subsection shall not apply to a 
vessel when it is engaged in fisheries in the exclusive economic zone 
under the authority of the Western Pacific Fishery Management Council 
established under section 302(a)(1)(H) of the Magnuson-Stevens Fishery 
Conservation and Management Act (16 U.S.C. 1852(a)(1)(H)) or to a purse 
seine vessel when it is engaged in tuna fishing in the Pacific Ocean 
outside the exclusive economic zone of the United States or pursuant to 
the South Pacific Regional Fisheries Treaty, provided that the owner of 
the vessel continues to comply with the eligibility requirements for a 
fishery endorsement under the federal law that was in effect on October 
1, 1998. A fishery endorsement issued by the Secretary pursuant to this 
paragraph shall be valid for engaging only in fisheries in the exclusive 
economic zone under the authority of such Council, in such tuna fishing 
in the Pacific Ocean, or pursuant to such Treaty.
    ``(6) A vessel greater than 165 feet in registered length, of more 
than 750 gross registered tons, or that has an engine or engines capable 
of producing a total of more than 3,000 shaft horsepower is not eligible 
for a fishery endorsement under section 12108 of this title unless--
            ``(A)(i) a certificate of documentation was issued for the 
        vessel and endorsed with a fishery endorsement that was 
        effective on September 25, 1997;
            ``(ii) the vessel is not placed under foreign registry after 
        the date of the enactment of the American Fisheries Act; and
            ``(iii) in the event of the invalidation of the fishery 
        endorsement after the date of the enactment of the American 
        Fisheries Act, application is made for a new fishery endorsement 
        within fifteen (15) business days of such invalidation; or
            ``(B) the owner of such vessel demonstrates to the Secretary 
        that the regional fishery management council of jurisdiction 
        established under section 302(a)(1) of the Magnuson-Stevens 
        Fishery Conservation and Management Act (16 U.S.C. 1852(a)(1)) 
        has recommended after the date of the enactment of the American 
        Fisheries Act, and the Secretary of Commerce has approved, 
        conservation and management measures in accordance with such Act 
        to allow such vessel to be used in fisheries under such 
        council's authority.''.

    (b) Preferred Mortgage.--Section 31322(a) of title 46, United States 
Code is amended--
            (1) by striking ``and'' at the end of paragraph (2);
            (2) by striking the period at the end of paragraph (3)(B) 
        and inserting in lieu thereof a semicolon and ``and''; and
            (3) by inserting at the end the following new paragraph:

[[Page 112 STAT. 2681-619]]

            ``(4) with respect to a vessel with a fishery endorsement 
        that is 100 feet or greater in registered length, has as the 
        mortgagee--
                    ``(A) a person eligible to own a vessel with a 
                fishery endorsement under section 12102(c) of this 
                title;
                    ``(B) a state or federally chartered financial 
                institution that satisfies the controlling interest 
                criteria of section 2(b) of the Shipping Act, 1916 (46 
                U.S.C. 802(b)); or
                    ``(C) a person that complies with the provisions of 
                section 12102(c)(4) of this title.''.

SEC. 203. ENFORCEMENT OF STANDARD.

    (a) Effective Date.--The amendments made by section 202 shall take 
effect on October 1, 2001.
    (b) <> Regulations.--Final regulations to implement this subtitle shall 
be published in the Federal Register by April 1, 2000. Letter rulings 
and other interim interpretations about the effect of this subtitle and 
amendments made by this subtitle on specific vessels may not be issued 
prior to the publication of such final regulations. The regulations to 
implement this subtitle shall prohibit impermissible transfers of 
ownership or control, specify any transactions which require prior 
approval of an implementing agency, identify transactions which do not 
require prior agency approval, and to the extent practicable, minimize 
disruptions to the commercial fishing industry, to the traditional 
financing arrangements of such industry, and to the opportunity to form 
fishery cooperatives.

    (c) <> Vessels Measuring 100 Feet and 
Greater.--(1) The Administrator of the Maritime Administration shall 
administer section 12102(c) of title 46, United States Code, as amended 
by this subtitle, with respect to vessels 100 feet or greater in 
registered length. The owner of each such vessel shall file a statement 
of citizenship setting forth all relevant facts regarding vessel 
ownership and control with the Administrator of the Maritime 
Administration on an annual basis to demonstrate compliance with such 
section. Regulations to implement this subsection shall conform to the 
extent practicable with the regulations establishing the form of 
citizenship affidavit set forth in part 355 of title 46, Code of Federal 
Regulations, as in effect on September 25, 1997, except that the form of 
the statement under this paragraph shall be written in a manner to allow 
the owner of each such vessel to satisfy any annual renewal requirements 
for a certificate of documentation for such vessel and to comply with 
this subsection and section 12102(c) of title 46, United States Code, as 
amended by this Act, and shall not be required to be notarized.

    (2) After October 1, 2001, transfers of ownership and control of 
vessels subject to section 12102(c) of title 46, United States Code, as 
amended by this Act, which are 100 feet or greater in registered length, 
shall be rigorously scrutinized for violations of such section, with 
particular attention given to leases, charters, mortgages, financing, 
and similar arrangements, to the control of persons not eligible to own 
a vessel with a fishery endorsement under section 12102(c) of title 46, 
United States Code, as amended by this Act, over the management, sales, 
financing, or other operations of an entity, and to contracts involving 
the purchase over extended periods of time of all, or substantially all, 
of the living marine resources harvested by a fishing vessel.

[[Page 112 STAT. 2681-620]]

    (d)  <> Vessels Measuring Less Than 100 
Feet.--The Secretary of Transportation shall establish such requirements 
as are reasonable and necessary to demonstrate compliance with section 
12102(c) of title 46, United States Code, as amended by this Act, with 
respect to vessels measuring less than 100 feet in registered length, 
and shall seek to minimize the administrative burden on individuals who 
own and operate such vessels.

    (e) <> Endorsements Revoked.--The 
Secretary of Transportation shall revoke the fishery endorsement of any 
vessel subject to section 12102(c) of title 46, United States Code, as 
amended by this Act, whose owner does not comply with such section.

    (f) Penalty.--Section 12122 of title 46, United States Code, is 
amended by inserting at the end the following new subsection:
    ``(c) In addition to penalties under subsections (a) and (b), the 
owner of a documented vessel for which a fishery endorsement has been 
issued is liable to the United States Government for a civil penalty of 
up to $100,000 for each day in which such vessel has engaged in fishing 
(as such term is defined in section 3 of the Magnuson-Stevens Fishery 
Conservation and Management Act (16 U.S.C. 1802)) within the exclusive 
economic zone of the United States, if the owner or the representative 
or agent of the owner knowingly falsified or concealed a material fact, 
or knowingly made a false statement or representation with respect to 
the eligibility of the vessel under section 12102(c) of this title in 
applying for or applying to renew such fishery endorsement.''.
    (g) Certain Vessels.--The vessels EXCELLENCE (United States official 
number 967502), GOLDEN ALASKA (United States official number 651041), 
OCEAN PHOENIX (United States official number 296779), NORTHERN TRAVELER 
(United States official number 635986), and NORTHERN VOYAGER (United 
States official number 637398) (or a replacement vessel for the NORTHERN 
VOYAGER that complies with paragraphs (2), (5), and (6) of section 
208(g) of this Act) shall be exempt from section 12102(c), as amended by 
this Act, until such time after October 1, 2001 as more than 50 percent 
of the interest owned and controlled in the vessel changes, provided 
that the vessel maintains eligibility for a fishery endorsement under 
the federal law that was in effect the day before the date of the 
enactment of this Act, and unless, in the case of the NORTHERN TRAVELER 
or the NORTHERN VOYAGER (or such replacement), the vessel is used in any 
fishery under the authority of a regional fishery management council 
other than the New England Fishery Management Council or Mid-Atlantic 
Fishery Management Council established, respectively, under 
subparagraphs (A) and (B) of section 302(a)(1) of the Magnuson-Stevens 
Fishery Conservation and Management Act (16 U.S.C. 1852(a)(1) (A) and 
(B)), or in the case of the EXCELLENCE, GOLDEN ALASKA, or OCEAN PHOENIX, 
the vessel is used to harvest any fish.

SEC. 204. REPEAL OF OWNERSHIP SAVINGS CLAUSE.

    (a) Repeal.--Section 7(b) of the Commercial Fishing Industry Vessel 
Anti-Reflagging Act of 1987 (Public Law 100-239; 46 U.S.C. 12102 note) 
is hereby repealed.
    (b) <> Effective Date.--Subsection (a) 
shall take effect on October 1, 2001.

[[Page 112 STAT. 2681-621]]

Subtitle II--Bering <> Sea Pollock Fishery

SEC. 205. DEFINITIONS.

    As used in this subtitle--
            (1) the term ``Bering Sea and Aleutian Islands Management 
        Area'' has the same meaning as the meaning given for such term 
        in part 679.2 of title 50, Code of Federal Regulations, as in 
        effect on October 1, 1998;
            (2) the term ``catcher/processor'' means a vessel that is 
        used for harvesting fish and processing that fish;
            (3) the term ``catcher vessel'' means a vessel that is used 
        for harvesting fish and that does not process pollock onboard;
            (4) the term ``directed pollock fishery'' means the fishery 
        for the directed fishing allowances allocated under paragraphs 
        (1), (2), and (3) of section 206(b);
            (5) the term ``harvest'' means to commercially engage in the 
        catching, taking, or harvesting of fish or any activity that can 
        reasonably be expected to result in the catching, taking, or 
        harvesting of fish;
            (6) the term ``inshore component'' means the following 
        categories that process groundfish harvested in the Bering Sea 
        and Aleutian Islands Management Area:
                    (A) shoreside processors, including those eligible 
                under section 208(f); and
                    (B) vessels less than 125 feet in length overall 
                that process less than 126 metric tons per week in 
                round-weight equivalents of an aggregate amount of 
                pollock and Pacific cod;
            (7) the term ``Magnuson-Stevens Act'' means the Magnuson-
        Stevens Fishery Conservation and Management Act (16 U.S.C. 1801 
        et seq.);
            (8) the term ``mothership'' means a vessel that receives and 
        processes fish from other vessels in the exclusive economic zone 
        of the United States and is not used for, or equipped to be used 
        for, harvesting fish;
            (9) the term ``North Pacific Council'' means the North 
        Pacific Fishery Management Council established under section 
        302(a)(1)(G) of the Magnuson-Stevens Act (16 U.S.C. 
        1852(a)(1)(G));
            (10) the term ``offshore component'' means all vessels not 
        included in the definition of ``inshore component'' that process 
        groundfish harvested in the Bering Sea and Aleutian Islands 
        Management Area;
            (11) the term ``Secretary'' means the Secretary of Commerce; 
        and
            (12) the term ``shoreside processor'' means any person or 
        vessel that receives unprocessed fish, except catcher/
        processors, motherships, buying stations, restaurants, or 
        persons receiving fish for personal consumption or bait.

SEC. 206. ALLOCATIONS.

    (a) <> Pollock Community Development Quota.--
Effective January 1, 1999, 10 percent of the total allowable catch of 
pollock in the Bering Sea and Aleutian Islands Management Area shall be 
allocated as a directed fishing allowance to the western Alaska 
community development quota program established under section 305(i) of 
the Magnuson-Stevens Act (16 U.S.C. 1855(i)).

[[Page 112 STAT. 2681-622]]

    (b) <> Inshore/Offshore.--Effective January 
1, 1999, the remainder of the pollock total allowable catch in the 
Bering Sea and Aleutian Islands Management Area, after the subtraction 
of the allocation under subsection (a) and the subtraction of allowances 
for the incidental catch of pollock by vessels harvesting other 
groundfish species (including under the western Alaska community 
development quota program) shall be allocated as directed fishing 
allowances as follows--
            (1) 50 percent to catcher vessels harvesting pollock for 
        processing by the inshore component;
            (2) 40 percent to catcher/processors and catcher vessels 
        harvesting pollock for processing by catcher/processors in the 
        offshore component; and
            (3) 10 percent to catcher vessels harvesting pollock for 
        processing by motherships in the offshore component.

SEC. 207. BUYOUT.

    (a) Federal Loan.--Under the authority of sections 1111 and 1112 of 
title XI of the Merchant Marine Act, 1936 (46 U.S.C. App. 1279f and 
1279g) and notwithstanding the requirements of section 312 of the 
Magnuson-Stevens Act (16 U.S.C. 1861a), the Secretary shall, subject to 
the availability of appropriations for the cost of the direct loan, 
provide up to $75,000,000 through a direct loan obligation for the 
payments required under subsection (d).
    (b) Inshore Fee System.--Notwithstanding the requirements of section 
304(d) or 312 of the Magnuson-Stevens Act (16 U.S.C. 1854(d) and 1861a), 
the Secretary shall establish a fee for the repayment of such loan 
obligation which--
            (1) shall be six-tenths (0.6) of one cent for each pound 
        round-weight of all pollock harvested from the directed fishing 
        allowance under section 206(b)(1); and
            (2) shall begin with such pollock harvested on or after 
        January 1, 2000, and continue without interruption until such 
        loan obligation is fully repaid; and
            (3) shall be collected in accordance with section 
        312(d)(2)(C) of the Magnuson-Stevens Act (16 U.S.C. 
        1861a(d)(2)(C)) and in accordance with such other conditions as 
        the Secretary establishes.

    (c) Federal Appropriation.--Under the authority of section 
312(c)(1)(B) of the Magnuson-Stevens Act (16 U.S.C. 1861a(c)(1)(B)), 
there are authorized to be appropriated $20,000,000 for the payments 
required under subsection (d).
    (d) Payments.--Subject to the availability of appropriations for the 
cost of the direct loan under subsection (a) and funds under subsection 
(c), the Secretary shall pay by not later than December 31, 1998--
            (1) up to $90,000,000 to the owner or owners of the catcher/
        processors listed in paragraphs (1) through (9) of section 209, 
        in such manner as the owner or owners, with the concurrence of 
        the Secretary, agree, except that--
                    (A) the portion of such payment with respect to the 
                catcher/processor listed in paragraph (1) of section 209 
                shall be made only after the owner submits a written 
                certification acceptable to the Secretary that neither 
                the owner nor a purchaser from the owner intends to use 
                such catcher/processor outside of the exclusive economic

[[Page 112 STAT. 2681-623]]

                zone of the United States to harvest any stock of fish 
                (as such term is defined in section 3 of the Magnuson-
                Stevens Fishery Conservation and Management Act (16 
                U.S.C. 1802)) that occurs within the exclusive economic 
                zone of the United States; and
                    (B) the portion of such payment with respect to the 
                catcher/processors listed in paragraphs (2) through (9) 
                of section 209 shall be made only after the owner or 
                owners of such catcher/processors submit a written 
                certification acceptable to the Secretary that such 
                catcher/processors will be scrapped by December 31, 2000 
                and will not, before that date, be used to harvest or 
                process any fish; and
            (2)(A) if a contract has been filed under section 210(a) by 
        the catcher/processors listed in section 208(e), $5,000,000 to 
        the owner or owners of the catcher/processors listed in 
        paragraphs (10) through (14) of such section in such manner as 
        the owner or owners, with the concurrence of the Secretary, 
        agree; or
            (B) if such a contract has not been filed by such date, 
        $5,000,000 to the owners of the catcher vessels eligible under 
        section 208(b) and the catcher/processors eligible under 
        paragraphs (1) through (20) of section 208(e), divided based on 
        the amount of the harvest of pollock in the directed pollock 
        fishery by each such vessel in 1997 in such manner as the 
        Secretary deems appropriate,

except that any such payments shall be reduced by any obligation to the 
federal government that has not been satisfied by such owner or owners 
of any such vessels.
    (e) Penalty.--If the catcher/processor under paragraph (1) of 
section 209 is used outside of the exclusive economic zone of the United 
States to harvest any stock of fish that occurs within the exclusive 
economic zone of the United States while the owner who received the 
payment under subsection (d)(1)(A) has an ownership interest in such 
vessel, or if the catcher/processors listed in paragraphs (2) through 
(9) of section 209 are determined by the Secretary not to have been 
scrapped by December 31, 2000 or to have been used in a manner 
inconsistent with subsection (d)(1)(B), the Secretary may suspend any or 
all of the federal permits which allow any vessels owned in whole or in 
part by the owner or owners who received payments under subsection 
(d)(1) to harvest or process fish within the exclusive economic zone of 
the United States until such time as the obligations of such owner or 
owners under subsection (d)(1) have been fulfilled to the satisfaction 
of the Secretary.
    (f) Program Defined; Maturity.--For the purposes of section 1111 of 
the Merchant Marine Act, 1936 (46 U.S.C. App. 1279f), the fishing 
capacity reduction program in this subtitle shall be within the meaning 
of the term ``program'' as defined and used in such section. 
Notwithstanding section 1111(b)(4) of such Act (46 U.S.C. App. 
1279f(b)(4)), the debt obligation under subsection (a) of this section 
may have a maturity not to exceed 30 years.
    (g) <> Fishery Capacity Reduction Regulations.--
The Secretary of Commerce shall by not later than October 15, 1998 
publish proposed regulations to implement subsections (b), (c), (d), and 
(e) of section 312 of the Magnuson-Stevens Act (16 U.S.C. 1861a) and 
sections 1111 and 1112 of title XI of the Merchant Marine Act, 1936 (46 
U.S.C. App. 1279f and 1279g).

[[Page 112 STAT. 2681-624]]

SEC. 208. ELIGIBLE VESSELS AND PROCESSORS.

    (a) <> Catcher Vessels Onshore.--Effective 
January 1, 2000, only catcher vessels which are--
            (1) determined by the Secretary--
                    (A) to have delivered at least 250 metric tons of 
                pollock; or
                    (B) to be less than 60 feet in length overall and to 
                have delivered at least 40 metric tons of pollock,

for processing by the inshore component in the directed pollock fishery 
in any one of the years 1996 or 1997, or between January 1, 1998 and 
September 1, 1998;
            (2) eligible to harvest pollock in the directed pollock 
        fishery under the license limitation program recommended by the 
        North Pacific Council and approved by the Secretary; and
            (3) not listed in subsection (b),

shall be eligible to harvest the directed fishing allowance under 
section 206(b)(1) pursuant to a federal fishing permit.
    (b) Catcher Vessels to Catcher/Processors.--Effective January 1, 
1999, only the following catcher vessels shall be eligible to harvest 
the directed fishing allowance under section 206(b)(2) pursuant to a 
federal fishing permit:
            (1) AMERICAN CHALLENGER (United States official number 
        615085);
            (2) FORUM STAR (United States official number 925863);
            (3) MUIR MILACH (United States official number 611524);
            (4) NEAHKAHNIE (United States official number 599534);
            (5) OCEAN HARVESTER (United States official number 549892);
            (6) SEA STORM (United States official number 628959);
            (7) TRACY ANNE (United States official number 904859); and
            (8) any catcher vessel--
                    (A) determined by the Secretary to have delivered at 
                least 250 metric tons and at least 75 percent of the 
                pollock it harvested in the directed pollock fishery in 
                1997 to catcher/processors for processing by the 
                offshore component; and
                    (B) eligible to harvest pollock in the directed 
                pollock fishery under the license limitation program 
                recommended by the North Pacific Council and approved by 
                the Secretary.

    (c) Catcher Vessels to Motherships.--Effective January 1, 2000, only 
the following catcher vessels shall be eligible to harvest the directed 
fishing allowance under section 206(b)(3) pursuant to a federal fishing 
permit:
            (1) ALEUTIAN CHALLENGER (United States official number 
        603820);
            (2) ALYESKA (United States official number 560237);
            (3) AMBER DAWN (United States official number 529425);
            (4) AMERICAN BEAUTY (United States official number 613847);
            (5) CALIFORNIA HORIZON (United States official number 
        590758);
            (6) MAR-GUN (United States official number 525608);
            (7) MARGARET LYN (United States official number 615563);
            (8) MARK I (United States official number 509552);
            (9) MISTY DAWN (United States official number 926647);

[[Page 112 STAT. 2681-625]]

            (10) NORDIC FURY (United States official number 542651);
            (11) OCEAN LEADER (United States official number 561518);
            (12) OCEANIC (United States official number 602279);
            (13) PACIFIC ALLIANCE (United States official number 
        612084);
            (14) PACIFIC CHALLENGER (United States official number 
        518937);
            (15) PACIFIC FURY (United States official number 561934);
            (16) PAPADO II (United States official number 536161);
            (17) TRAVELER (United States official number 929356);
            (18) VESTERAALEN (United States official number 611642);
            (19) WESTERN DAWN (United States official number 524423); 
        and
            (20) any vessel--
                    (A) determined by the Secretary to have delivered at 
                least 250 metric tons of pollock for processing by 
                motherships in the offshore component of the directed 
                pollock fishery in any one of the years 1996 or 1997, or 
                between January 1, 1998 and September 1, 1998;
                    (B) eligible to harvest pollock in the directed 
                pollock fishery under the license limitation program 
                recommended by the North Pacific Council and approved by 
                the Secretary; and
                    (C) not listed in subsection (b).

    (d) <> Motherships.--Effective January 1, 
2000, only the following motherships shall be eligible to process the 
directed fishing allowance under section 206(b)(3) pursuant to a federal 
fishing permit:
            (1) EXCELLENCE (United States official number 967502);
            (2) GOLDEN ALASKA (United States official number 651041); 
        and
            (3) OCEAN PHOENIX (United States official number 296779).

    (e) Catcher/Processors.--Effective January 1, 1999, only the 
following catcher/processors shall be eligible to harvest the directed 
fishing allowance under section 206(b)(2) pursuant to a federal fishing 
permit:
            (1) AMERICAN DYNASTY (United States official number 951307);
            (2) KATIE ANN (United States official number 518441);
            (3) AMERICAN TRIUMPH (United States official number 646737);
            (4) NORTHERN EAGLE (United States official number 506694);
            (5) NORTHERN HAWK (United States official number 643771);
            (6) NORTHERN JAEGER (United States official number 521069);
            (7) OCEAN ROVER (United States official number 552100);
            (8) ALASKA OCEAN (United States official number 637856);
            (9) ENDURANCE (United States official number 592206);

[[Page 112 STAT. 2681-626]]

            (10) AMERICAN ENTERPRISE (United States official number 
        594803);
            (11) ISLAND ENTERPRISE (United States official number 
        610290);
            (12) KODIAK ENTERPRISE (United States official number 
        579450);
            (13) SEATTLE ENTERPRISE (United States official number 
        904767);
            (14) US ENTERPRISE (United States official number 921112);
            (15) ARCTIC STORM (United States official number 903511);
            (16) ARCTIC FJORD (United States official number 940866);
            (17) NORTHERN GLACIER (United States official number 
        663457);
            (18) PACIFIC GLACIER (United States official number 933627);
            (19) HIGHLAND LIGHT (United States official number 577044);
            (20) STARBOUND (United States official number 944658); and
            (21) any catcher/processor not listed in this subsection and 
        determined by the Secretary to have harvested more than 2,000 
        metric tons of the pollock in the 1997 directed pollock fishery 
        and determined to be eligible to harvest pollock in the directed 
        pollock fishery under the license limitation program recommended 
        by the North Pacific Council and approved by the Secretary, 
        except that catcher/processors eligible under this paragraph 
        shall be prohibited from harvesting in the aggregate a total of 
        more than one-half (0.5) of a percent of the pollock apportioned 
        for the directed pollock fishery under section 206(b)(2).

Notwithstanding section 213(a), failure to satisfy the requirements of 
section 4(a) of the Commercial Fishing Industry Vessel Anti-Reflagging 
Act of 1987 (Public Law 100-239; 46 U.S.C. 12108 note) shall not make a 
catcher/processor listed under this subsection ineligible for a fishery 
endorsement.

    (f) <> Shoreside Processors.--(1) Effective 
January 1, 2000 and except as provided in paragraph (2), the catcher 
vessels eligible under subsection (a) may deliver pollock harvested from 
the directed fishing allowance under section 206(b)(1) only to--
            (A) shoreside processors (including vessels in a single 
        geographic location in Alaska State waters) determined by the 
        Secretary to have processed more than 2,000 metric tons round-
        weight of pollock in the inshore component of the directed 
        pollock fishery during each of 1996 and 1997; and
            (B) shoreside processors determined by the Secretary to have 
        processed pollock in the inshore component of the directed 
        pollock fishery in 1996 or 1997, but to have processed less than 
        2,000 metric tons round-weight of such pollock in each year, 
        except that effective January 1, 2000, each such shoreside 
        processor may not process more than 2,000 metric tons round-
        weight from such directed fishing allowance in any year.

    (2) Upon recommendation by the North Pacific Council, the Secretary 
may approve measures to allow catcher vessels eligible under subsection 
(a) to deliver pollock harvested from the directed

[[Page 112 STAT. 2681-627]]

fishing allowance under section 206(b)(1) to shoreside processors not 
eligible under paragraph (1) if the total allowable catch for pollock in 
the Bering Sea and Aleutian Islands Management Area increases by more 
than 10 percent above the total allowable catch in such fishery in 1997, 
or in the event of the actual total loss or constructive total loss of a 
shoreside processor eligible under paragraph (1)(A).
    (g) Replacement Vessels.--In the event of the actual total loss or 
constructive total loss of a vessel eligible under subsections (a), (b), 
(c), (d), or (e), the owner of such vessel may replace such vessel with 
a vessel which shall be eligible in the same manner under that 
subsection as the eligible vessel, provided that--
            (1) such loss was caused by an act of God, an act of war, a 
        collision, an act or omission of a party other than the owner or 
        agent of the vessel, or any other event not caused by the 
        willful misconduct of the owner or agent;
            (2) the replacement vessel was built in the United States 
        and if ever rebuilt, was rebuilt in the United States;
            (3) the fishery endorsement for the replacement vessel is 
        issued within 36 months of the end of the last year in which the 
        eligible vessel harvested or processed pollock in the directed 
        pollock fishery;
            (4) if the eligible vessel is greater than 165 feet in 
        registered length, of more than 750 gross registered tons, or 
        has engines capable of producing more than 3,000 shaft 
        horsepower, the replacement vessel is of the same or lesser 
        registered length, gross registered tons, and shaft horsepower;
            (5) if the eligible vessel is less than 165 feet in 
        registered length, of fewer than 750 gross registered tons, and 
        has engines incapable of producing less than 3,000 shaft 
        horsepower, the replacement vessel is less than each of such 
        thresholds and does not exceed by more than 10 percent the 
        registered length, gross registered tons or shaft horsepower of 
        the eligible vessel; and
            (6) the replacement vessel otherwise qualifies under federal 
        law for a fishery endorsement, including under section 12102(c) 
        of title 46, United States Code, as amended by this Act.

    (h) Eligibility During Implementation.--In the event the Secretary 
is unable to make a final determination about the eligibility of a 
vessel under subsection (b)(8) or subsection (e)(21) before January 1, 
1999, or a vessel or shoreside processor under subsection (a), 
subsection (c)(21), or subsection (f) before January 1, 2000, such 
vessel or shoreside processor, upon the filing of an application for 
eligibility, shall be eligible to participate in the directed pollock 
fishery pending final determination by the Secretary with respect to 
such vessel or shoreside processor.
    (i) Eligibility Not a Right.--Eligibility under this section shall 
not be construed--
            (1) to confer any right of compensation, monetary or 
        otherwise, to the owner of any catcher vessel, catcher/
        processor, mothership, or shoreside processor if such 
        eligibility is revoked or limited in any way, including through 
        the revocation or limitation of a fishery endorsement or any 
        federal permit or license;
            (2) to create any right, title, or interest in or to any 
        fish in any fishery; or

[[Page 112 STAT. 2681-628]]

            (3) to waive any provision of law otherwise applicable to 
        such catcher vessel, catcher/processor, mothership, or shoreside 
        processor.

SEC. 209. <> LIST OF INELIGIBLE VESSELS.

    Effective December 31, 1998, the following vessels shall be 
permanently ineligible for fishery endorsements, and any claims 
(including relating to catch history) associated with such vessels that 
could qualify any owners of such vessels for any present or future 
limited access system permit in any fishery within the exclusive 
economic zone of the United States (including a vessel moratorium permit 
or license limitation program permit in fisheries under the authority of 
the North Pacific Council) are hereby extinguished:
            (1) AMERICAN EMPRESS (United States official number 942347);
            (2) PACIFIC SCOUT (United States official number 934772);
            (3) PACIFIC EXPLORER (United States official number 942592);
            (4) PACIFIC NAVIGATOR (United States official number 
        592204);
            (5) VICTORIA ANN (United States official number 592207);
            (6) ELIZABETH ANN (United States official number 534721);
            (7) CHRISTINA ANN (United States official number 653045);
            (8) REBECCA ANN (United States official number 592205); and
            (9) BROWNS POINT (United States official number 587440).

SEC. 210. FISHERY COOPERATIVE LIMITATIONS.

    (a) Public Notice.--(1) Any contract implementing a fishery 
cooperative under section 1 of the Act of June 25, 1934 (15 U.S.C. 521) 
in the directed pollock fishery and any material modifications to any 
such contract shall be filed not less than 30 days prior to the start of 
fishing under the contract with the North Pacific Council and with the 
Secretary, together with a copy of a letter from a party to the contract 
requesting a business review letter on the fishery cooperative from the 
Department of Justice and any response to such request. Notwithstanding 
section 402 of the Magnuson-Stevens Act (16 U.S.C. 1881a) or any other 
provision of law, but taking into account the interest of parties to any 
such contract in protecting the confidentiality of proprietary 
information, the North Pacific Council and Secretary shall--
            (A) make available to the public such information about the 
        contract, contract modifications, or fishery cooperative the 
        North Pacific Council and Secretary deem appropriate, which at a 
        minimum shall include a list of the parties to the contract, a 
        list of the vessels involved, and the amount of pollock and 
        other fish to be harvested by each party to such contract; and
            (B) make available to the public in such manner as the North 
        Pacific Council and Secretary deem appropriate information about 
        the harvest by vessels under a fishery cooperative of all 
        species (including bycatch) in the directed pollock fishery on a 
        vessel-by-vessel basis.

[[Page 112 STAT. 2681-629]]

    (b) Catcher Vessels Onshore.--
            (1) <> Catcher vessel cooperatives.--
        Effective January 1, 2000, upon the filing of a contract 
        implementing a fishery cooperative under subsection (a) which--
                    (A) is signed by the owners of 80 percent or more of 
                the qualified catcher vessels that delivered pollock for 
                processing by a shoreside processor in the directed 
                pollock fishery in the year prior to the year in which 
                the fishery cooperative will be in effect; and
                    (B) specifies, except as provided in paragraph (6), 
                that such catcher vessels will deliver pollock in the 
                directed pollock fishery only to such shoreside 
                processor during the year in which the fishery 
                cooperative will be in effect and that such shoreside 
                processor has agreed to process such pollock,

the Secretary shall allow only such catcher vessels (and catcher vessels 
whose owners voluntarily participate pursuant to paragraph (2)) to 
harvest the aggregate percentage of the directed fishing allowance under 
section 206(b)(1) in the year in which the fishery cooperative will be 
in effect that is equivalent to the aggregate total amount of pollock 
harvested by such catcher vessels (and by such catcher vessels whose 
owners voluntarily participate pursuant to paragraph (2)) in the 
directed pollock fishery for processing by the inshore component during 
1995, 1996, and 1997 relative to the aggregate total amount of pollock 
harvested in the directed pollock fishery for processing by the inshore 
component during such years and shall prevent such catcher vessels (and 
catcher vessels whose owners voluntarily participate pursuant to 
paragraph (2)) from harvesting in aggregate in excess of such percentage 
of such directed fishing allowance.
            (2) Voluntary participation.--Any contract implementing a 
        fishery cooperative under paragraph (1) must allow the owners of 
        other qualified catcher vessels to enter into such contract 
        after it is filed and before the calender year in which fishing 
        will begin under the same terms and conditions as the owners of 
        the qualified catcher vessels who entered into such contract 
        upon filing.
            (3) Qualified catcher vessel.--For the purposes of this 
        subsection, a catcher vessel shall be considered a ``qualified 
        catcher vessel'' if, during the year prior to the year in which 
        the fishery cooperative will be in effect, it delivered more 
        pollock to the shoreside processor to which it will deliver 
        pollock under the fishery cooperative in paragraph (1) than to 
        any other shoreside processor.
            (4) Consideration of certain vessels.--Any contract 
        implementing a fishery cooperative under paragraph (1) which has 
        been entered into by the owner of a qualified catcher vessel 
        eligible under section 208(a) that harvested pollock for 
        processing by catcher/processors or motherships in the directed 
        pollock fishery during 1995, 1996, and 1997 shall, to the extent 
        practicable, provide fair and equitable terms and conditions for 
        the owner of such qualified catcher vessel.
            (5) Open access.--A catcher vessel eligible under section 
        208(a) the catch history of which has not been attributed to a 
        fishery cooperative under paragraph (1) may be used to deliver 
        pollock harvested by such vessel from the directed fishing 
        allowance under section 206(b)(1) (other than pollock

[[Page 112 STAT. 2681-630]]

        reserved under paragraph (1) for a fishery cooperative) to any 
        of the shoreside processors eligible under section 208(f). A 
        catcher vessel eligible under section 208(a) the catch history 
        of which has been attributed to a fishery cooperative under 
        paragraph (1) during any calendar year may not harvest any 
        pollock apportioned under section 206(b)(1) in such calendar 
        year other than the pollock reserved under paragraph (1) for 
        such fishery cooperative.
            (6) Transfer of cooperative harvest.--A contract 
        implementing a fishery cooperative under paragraph (1) may, 
        notwithstanding the other provisions of this subsection, provide 
        for up to 10 percent of the pollock harvested under such 
        cooperative to be processed by a shoreside processor eligible 
        under section 208(f) other than the shoreside processor to which 
        pollock will be delivered under paragraph (1).

    (c) <> Catcher Vessels to Catcher/
Processors.--Effective January 1, 1999, not less than 8.5 percent of the 
directed fishing allowance under section 206(b)(2) shall be available 
for harvest only by the catcher vessels eligible under section 208(b). 
The owners of such catcher vessels may participate in a fishery 
cooperative with the owners of the catcher/processors eligible under 
paragraphs (1) through (20) of the section 208(e). The owners of such 
catcher vessels may participate in a fishery cooperative that will be in 
effect during 1999 only if the contract implementing such cooperative 
establishes penalties to prevent such vessels from exceeding in 1999 the 
traditional levels harvested by such vessels in all other fisheries in 
the exclusive economic zone of the United States.

    (d) Catcher Vessels to Motherships.--
            (1) <> Processing.--Effective January 
        1, 2000, the authority in section 1 of the Act of June 25, 1934 
        (48 Stat. 1213 and 1214; 15 U.S.C. 521 et seq.) shall extend to 
        processing by motherships eligible under section 208(d) solely 
        for the purposes of forming or participating in a fishery 
        cooperative in the directed pollock fishery upon the filing of a 
        contract to implement a fishery cooperative under subsection (a) 
        which has been entered into by the owners of 80 percent or more 
        of the catcher vessels eligible under section 208(c) for the 
        duration of such contract, provided that such owners agree to 
        the terms of the fishery cooperative involving processing by the 
        motherships.
            (2) Voluntary participation.--Any contract implementing a 
        fishery cooperative described in paragraph (1) must allow the 
        owners of any other catcher vessels eligible under section 
        208(c) to enter such contract after it is filed and before the 
        calendar year in which fishing will begin under the same terms 
        and conditions as the owners of the catcher vessels who entered 
        into such contract upon filing.

    (e) Excessive Shares.--
            (1) Harvesting.--No particular individual, corporation, or 
        other entity may harvest, through a fishery cooperative or 
        otherwise, a total of more than 17.5 percent of the pollock 
        available to be harvested in the directed pollock fishery.
            (2) Processing.--Under the authority of section 301(a)(4) of 
        the Magnuson-Stevens Act (16 U.S.C. 1851(a)(4)), the North 
        Pacific Council is directed to recommend for approval by the 
        Secretary conservation and management measures to prevent any 
        particular individual or entity from processing an excessive

[[Page 112 STAT. 2681-631]]

        share of the pollock available to be harvested in the directed 
        pollock fishery. In the event the North Pacific Council 
        recommends and the Secretary approves an excessive processing 
        share that is lower than 17.5 percent, any individual or entity 
        that previously processed a percentage greater than such share 
        shall be allowed to continue to process such percentage, except 
        that their percentage may not exceed 17.5 percent (excluding 
        pollock processed by catcher/processors that was harvested in 
        the directed pollock fishery by catcher vessels eligible under 
        208(b)) and shall be reduced if their percentage decreases, 
        until their percentage is below such share. In recommending the 
        excessive processing share, the North Pacific Council shall 
        consider the need of catcher vessels in the directed pollock 
        fishery to have competitive buyers for the pollock harvested by 
        such vessels.
            (3) Review by maritime administration.--At the request of 
        the North Pacific Council or the Secretary, any individual or 
        entity believed by such Council or the Secretary to have 
        exceeded the percentage in either paragraph (1) or (2) shall 
        submit such information to the Administrator of the Maritime 
        Administration as the Administrator deems appropriate to allow 
        the Administrator to determine whether such individual or entity 
        has exceeded either such percentage. The Administrator shall 
        make a finding as soon as practicable upon such request and 
        shall submit such finding to the North Pacific Council and the 
        Secretary. For the purposes of this subsection, any entity in 
        which 10 percent or more of the interest is owned or controlled 
        by another individual or entity shall be considered to be the 
        same entity as the other individual or entity.

    (f) Landing Tax Jurisdiction.--Any contract filed under subsection 
(a) shall include a contract clause under which the parties to the 
contract agree to make payments to the State of Alaska for any pollock 
harvested in the directed pollock fishery which is not landed in the 
State of Alaska, in amounts which would otherwise accrue had the pollock 
been landed in the State of Alaska subject to any landing taxes 
established under Alaska law. Failure to include such a contract clause 
or for such amounts to be paid shall result in a revocation of the 
authority to form fishery cooperatives under section 1 of the Act of 
June 25, 1934 (15 U.S.C. 521 et seq.).
    (g) Penalties.--The violation of any of the requirements of this 
section or section 211 shall be considered the commission of an act 
prohibited by section 307 of the Magnuson-Stevens Act (16 U.S.C. 1857). 
In addition to the civil penalties and permit sanctions applicable to 
prohibited acts under section 308 of such Act (16 U.S.C. 1858), any 
person who is found by the Secretary, after notice and an opportunity 
for a hearing in accordance with section 554 of title 5, United States 
Code, to have violated a requirement of this section shall be subject to 
the forfeiture to the Secretary of Commerce of any fish harvested or 
processed during the commission of such act.

SEC. 211. PROTECTIONS FOR OTHER FISHERIES; CONSERVATION MEASURES.

    (a) General.--The North Pacific Council shall recommend for approval 
by the Secretary such conservation and management

[[Page 112 STAT. 2681-632]]

measures as it determines necessary to protect other fisheries under its 
jurisdiction and the participants in those fisheries, including 
processors, from adverse impacts caused by this Act or fishery 
cooperatives in the directed pollock fishery.
    (b) Catcher/Processor Restrictions.--
            (1) General.--The <> restrictions in 
        this subsection shall take effect on January 1, 1999 and shall 
        remain in effect thereafter except that they may be superceded 
        (with the exception of paragraph (4)) by conservation and 
        management measures recommended after the date of the enactment 
        of this Act by the North Pacific Council and approved by the 
        Secretary in accordance with the Magnuson-Stevens Act.
            (2) Bering sea fishing.--The catcher/processors eligible 
        under paragraphs (1) through (20) of section 208(e) are hereby 
        prohibited from, in the aggregate--
                    (A) exceeding the percentage of the harvest 
                available in the offshore component of any Bering Sea 
                and Aleutian Islands groundfish fishery (other than the 
                pollock fishery) that is equivalent to the total harvest 
                by such catcher/processors and the catcher/processors 
                listed in section 209 in the fishery in 1995, 1996, and 
                1997 relative to the total amount available to be 
                harvested by the offshore component in the fishery in 
                1995, 1996, and 1997;
                    (B) exceeding the percentage of the prohibited 
                species available in the offshore component of any 
                Bering Sea and Aleutian Islands groundfish fishery 
                (other than the pollock fishery) that is equivalent to 
                the total of the prohibited species harvested by such 
                catcher/processors and the catcher/processors listed in 
                section 209 in the fishery in 1995, 1996, and 1997 
                relative to the total amount of prohibited species 
                available to be harvested by the offshore component in 
                the fishery in 1995, 1996, and 1997; and
                    (C) fishing for Atka mackerel in the eastern area of 
                the Bering Sea and Aleutian Islands and from exceeding 
                the following percentages of the directed harvest 
                available in the Bering Sea and Aleutian Islands Atka 
                mackerel fishery--
                          (i) 11.5 percent in the central area; and
                          (ii) 20 percent in the western area.
            (3) Bering sea processing.--The catcher/processors eligible 
        under paragraphs (1) through (20) of section 208(e) are hereby 
        prohibited from--
                    (A) processing any of the directed fishing 
                allowances under paragraphs (1) or (3) of section 
                206(b); and
                    (B) processing any species of crab harvested in the 
                Bering Sea and Aleutian Islands Management Area.
            (4) Gulf of alaska.--The catcher/processors eligible under 
        paragraphs (1) through (20) of section 208(e) are hereby 
        prohibited from--
                    (A) harvesting any fish in the Gulf of Alaska;
                    (B) processing any groundfish harvested from the 
                portion of the exclusive economic zone off Alaska known 
                as area 630 under the fishery management plan for Gulf 
                of Alaska groundfish; or
                    (C) processing any pollock in the Gulf of Alaska 
                (other than as bycatch in non-pollock groundfish 
                fisheries) or processing, in the aggregate, a total of 
                more than 10 percent

[[Page 112 STAT. 2681-633]]

                of the cod harvested from areas 610, 620, and 640 of the 
                Gulf of Alaska under the fishery management plan for 
                Gulf of Alaska groundfish.
            (5) Fisheries other than north pacific.--The catcher/
        processors eligible under paragraphs (1) through (20) of section 
        208(e) and motherships eligible under section 208(d) are hereby 
        prohibited from harvesting fish in any fishery under the 
        authority of any regional fishery management council established 
        under section 302(a) of the Magnuson-Stevens Act (16 U.S.C. 
        1852(a)) other than the North Pacific Council, except for the 
        Pacific whiting fishery, and from processing fish in any fishery 
        under the authority of any such regional fishery management 
        council other than the North Pacific Council, except in the 
        Pacific whiting fishery, unless the catcher/processor or 
        mothership is authorized to harvest or process fish under a 
        fishery management plan recommended by the regional fishery 
        management council of jurisdiction and approved by the 
        Secretary.
            (6) Observers and scales.--The catcher/processors eligible 
        under paragraphs (1) through (20) of section 208(e) shall--
                    (A) have two observers onboard at all times while 
                groundfish is being harvested, processed, or received 
                from another vessel in any fishery under the authority 
                of the North Pacific Council; and
                    (B) weigh its catch on a scale onboard approved by 
                the National Marine Fisheries Service while harvesting 
                groundfish in fisheries under the authority of the North 
                Pacific Council.
        This <> paragraph shall take effect on 
        January 1, 1999 for catcher/processors eligible under paragraphs 
        (1) through (20) of section 208(e) that will harvest pollock 
        allocated under section 206(a) in 1999, and shall take effect on 
        January 1, 2000 for all other catcher/processors eligible under 
        such paragraphs of section 208(e).

    (c) Catcher Vessel and Shoreside Processor Restrictions.--
            (1) Required council recommendations.--By not later than 
        July 1, 1999, the North Pacific Council shall recommend for 
        approval by the Secretary conservation and management measures 
        to--
                    (A) prevent the catcher vessels eligible under 
                subsections (a), (b), and (c) of section 208 from 
                exceeding in the aggregate the traditional harvest 
                levels of such vessels in other fisheries under the 
                authority of the North Pacific Council as a result of 
                fishery cooperatives in the directed pollock fishery; 
                and
                    (B) protect processors not eligible to participate 
                in the directed pollock fishery from adverse effects as 
                a result of this Act or fishery cooperatives in the 
                directed pollock fishery.
        If the North Pacific Council does not recommend such 
        conservation and management measures by such date, or if the 
        Secretary determines that such conservation and management 
        measures recommended by the North Pacific Council are not 
        adequate to fulfill the purposes of this paragraph, the 
        Secretary may by regulation restrict or change the authority in 
        section

[[Page 112 STAT. 2681-634]]

        210(b) to the extent the Secretary deems appropriate, including 
        by preventing fishery cooperatives from being formed pursuant to 
        such section and by providing greater flexibility with respect 
        to the shoreside processor or shoreside processors to which 
        catcher vessels in a fishery cooperative under section 210(b) 
        may deliver pollock.
            (2) Bering sea crab and groundfish.--
                    (A) <> Effective January 1, 
                2000, the owners of the motherships eligible under 
                section 208(d) and the shoreside processors eligible 
                under section 208(f) that receive pollock from the 
                directed pollock fishery under a fishery cooperative are 
                hereby prohibited from processing, in the aggregate for 
                each calendar year, more than the percentage of the 
                total catch of each species of crab in directed 
                fisheries under the jurisdiction of the North Pacific 
                Council than facilities operated by such owners 
                processed of each such species in the aggregate, on 
                average, in 1995, 1996, 1997. For the purposes of this 
                subparagraph, the term ``facilities'' means any 
                processing plant, catcher/processor, mothership, 
                floating processor, or any other operation that 
                processes fish. Any entity in which 10 percent or more 
                of the interest is owned or controlled by another 
                individual or entity shall be considered to be the same 
                entity as the other individual or entity for the 
                purposes of this subparagraph.
                    (B) Under the authority of section 301(a)(4) of the 
                Magnuson-Stevens Act (16 U.S.C. 1851(a)(4)), the North 
                Pacific Council is directed to recommend for approval by 
                the Secretary conservation and management measures to 
                prevent any particular individual or entity from 
                harvesting or processing an excessive share of crab or 
                of groundfish in fisheries in the Bering Sea and 
                Aleutian Islands Management Area.
                    (C) The catcher vessels eligible under section 
                208(b) are hereby prohibited from participating in a 
                directed fishery for any species of crab in the Bering 
                Sea and Aleutian Islands Management Area unless the 
                catcher vessel harvested crab in the directed fishery 
                for that species of crab in such Area during 1997 and is 
                eligible to harvest such crab in such directed fishery 
                under the license limitation program recommended by the 
                North Pacific Council and approved by the Secretary. The 
                North Pacific Council is directed to recommend measures 
                for approval by the Secretary to eliminate latent 
                licenses under such program, and nothing in this 
                subparagraph shall preclude the Council from 
                recommending measures more restrictive than under this 
                paragraph.
            (3) Fisheries other than north pacific.--
                    (A) By not later than July 1, 2000, the Pacific 
                Fishery Management Council established under section 
                302(a)(1)(F) of the Magnuson-Stevens Act (16 U.S.C. 
                1852(a)(1)(F)) shall recommend for approval by the 
                Secretary conservation and management measures to 
                protect fisheries under its jurisdiction and the 
                participants in those fisheries from adverse impacts 
                caused by this Act or by any fishery cooperatives in the 
                directed pollock fishery.
                    (B) If the Pacific Council does not recommend such 
                conservation and management measures by such date, or

[[Page 112 STAT. 2681-635]]

                if the Secretary determines that such conservation and 
                management measures recommended by the Pacific Council 
                are not adequate to fulfill the purposes of this 
                paragraph, the Secretary may by regulation implement 
                adequate measures including, but not limited to, 
                restrictions on vessels which harvest pollock under a 
                fishery cooperative which will prevent such vessels from 
                harvesting Pacific groundfish, and restrictions on the 
                number of processors eligible to process Pacific 
                groundfish.

    (d) Bycatch Information.--Notwithstanding section 402 of the 
Magnuson-Stevens Act (16 U.S.C. 1881a), the North Pacific Council may 
recommend and the Secretary may approve, under such terms and conditions 
as the North Pacific Council and Secretary deem appropriate, the public 
disclosure of any information from the groundfish fisheries under the 
authority of such Council that would be beneficial in the implementation 
of section 301(a)(9) or section 303(a)(11) of the Magnuson-Stevens Act 
(16 U.S.C. 1851(a)(9) and 1853(a)(11)).
    (e) Community Development Loan Program.--Under the authority of 
title XI of the Merchant Marine Act, 1936 (46 U.S.C. App. 1271 et seq.), 
and subject to the availability of appropriations, the Secretary is 
authorized to provide direct loan obligations to communities eligible to 
participate in the western Alaska community development quota program 
established under 304(i) of the Magnuson-Stevens Act (16 U.S.C. 1855(i)) 
for the purposes of purchasing all or part of an ownership interest in 
vessels and shoreside processors eligible under subsections (a), (b), 
(c), (d), (e), or (f) of section 208. Notwithstanding the eligibility 
criteria in section 208(a) and section 208(c), the LISA MARIE (United 
States official number 1038717) shall be eligible under such sections in 
the same manner as other vessels eligible under such sections.

SEC. 212. <> RESTRICTION ON FEDERAL LOANS.

    Section 302(b) of the Fisheries Financing Act (46 U.S.C. 1274 note) 
is amended--
            (1) by inserting ``(1)'' before ``Until October 1, 2001''; 
        and
            (2) by inserting at the end the following new paragraph:
            ``(2) No loans may be provided or guaranteed by the Federal 
        Government for the construction or rebuilding of a vessel 
        intended for use as a fishing vessel (as defined in section 2101 
        of title 46, United States Code), if such vessel will be greater 
        than 165 feet in registered length, of more than 750 gross 
        registered tons, or have an engine or engines capable of 
        producing a total of more than 3,000 shaft horsepower, after 
        such construction or rebuilding is completed. This prohibition 
        shall not apply to vessels to be used in the menhaden fishery or 
        in tuna purse seine fisheries outside the exclusive economic 
        zone of the United States or the area of the South Pacific 
        Regional Fisheries Treaty.''.

SEC. 213. DURATION.

    (a) <> General.--Except as otherwise provided 
in this title, the provisions of this title shall take effect upon the 
date of the enactment of this Act. Sections 206, 208, and 210 shall 
remain in <> effect until December 31, 2004, 
and shall be repealed on such date, except that the North Pacific 
Council may recommend and the Secretary may approve conservation and 
management measures

[[Page 112 STAT. 2681-636]]

as part of a fishery management plan under the Magnuson-Stevens Act to 
give effect to the measures in such sections thereafter.

    (b) Existing Authority.--Except for the measures required by this 
subtitle, nothing in this subtitle shall be construed to limit the 
authority of the North Pacific Council or the Secretary under the 
Magnuson-Stevens Act.
    (c) Changes to Fishery Cooperative Limitations and Pollock CDQ 
Allocation.--The North Pacific Council may recommend and the Secretary 
may approve conservation and management measures in accordance with the 
Magnuson-Stevens Act--
            (1) that supersede the provisions of this title, except for 
        sections 206 and 208, for conservation purposes or to mitigate 
        adverse effects in fisheries or on owners of fewer than three 
        vessels in the directed pollock fishery caused by this title or 
        fishery cooperatives in the directed pollock fishery, provided 
        such measures take into account all factors affecting the 
        fisheries and are imposed fairly and equitably to the extent 
        practicable among and within the sectors in the directed pollock 
        fishery;
            (2) that supersede the allocation in section 206(a) for any 
        of the years 2002, 2003, and 2004, upon the finding by such 
        Council that the western Alaska community development quota 
        program for pollock has been adversely affected by the 
        amendments in this title; or
            (3) that supersede the criteria required in paragraph (1) of 
        section 210(b) to be used by the Secretary to set the percentage 
        allowed to be harvested by catcher vessels pursuant to a fishery 
        cooperative under such paragraph.

    (d) Report to Congress.--Not later than October 1, 2000, the North 
Pacific Council shall submit a report to the Secretary and to Congress 
on the implementation and effects of this Act, including the effects on 
fishery conservation and management, on bycatch levels, on fishing 
communities, on business and employment practices of participants in any 
fishery cooperatives, on the western Alaska community development quota 
program, on any fisheries outside of the authority of the North Pacific 
Council, and such other matters as the North Pacific Council deems 
appropriate.
    (e) Report on Fillet Production.--Not later than June 1, 2000, the 
General Accounting Office shall submit a report to the North Pacific 
Council, the Secretary, and the Congress on whether this Act has 
negatively affected the market for fillets and fillet blocks, including 
through the reduction in the supply of such fillets and fillet blocks. 
If the report determines that such market has been negatively affected, 
the North Pacific Council shall recommend measures for the Secretary's 
approval to mitigate any negative effects.
    (f) Severability.--If any provision of this title, an amendment made 
by this title, or the application of such provision or amendment to any 
person or circumstance is held to be unconstitutional, the remainder of 
this title, the amendments made by this title, and the application of 
the provisions of such to any person or circumstance shall not be 
affected thereby.
    (g) International Agreements.--In the event that any provision of 
section 12102(c) or section 31322(a) of title 46, United States Code, as 
amended by this Act, is determined to be inconsistent with an existing 
international agreement relating to foreign investment to which the 
United States is a party with respect

[[Page 112 STAT. 2681-637]]

to the owner or mortgagee on October 1, 2001 of a vessel with a fishery 
endorsement, such provision shall not apply to that owner or mortgagee 
with respect to such vessel to the extent of any such inconsistency. The 
provisions of section 12102(c) and section 31322(a) of title 46, United 
States Code, as amended by this Act, shall apply to all subsequent 
owners and mortgagees of such vessel, and shall apply, notwithstanding 
the preceding sentence, to the owner on October 1, 2001 of such vessel 
if any ownership interest in that owner is transferred to or otherwise 
acquired by a foreign individual or entity after such date.

  TITLE III--DENALI <> COMMISSION

SEC. 301. SHORT TITLE.

    This title may be cited as the ``Denali Commission Act of 1998''.

SEC. 302. PURPOSES.

    The purposes of this title are as follows:
            (1) To deliver the services of the Federal Government in the 
        most cost-effective manner practicable by reducing 
        administrative and overhead costs.
            (2) To provide job training and other economic development 
        services in rural communities particularly distressed 
        communities (many of which have a rate of unemployment that 
        exceeds 50 percent).
            (3) To promote rural development, provide power generation 
        and transmission facilities, modern communication systems, water 
        and sewer systems and other infrastructure needs.

SEC. 303. ESTABLISHMENT OF COMMISSION.

    (a) Establishment.--There is established a commission to be known as 
the Denali Commission (referred to in this title as the ``Commission'').
    (b) <> Membership.--
            (1) Composition.--The Commission shall be composed of 7 
        members, who shall be appointed by the Secretary of Commerce 
        (referred to in this title as the ``Secretary''), of whom--
                    (A) one shall be the Governor of the State of 
                Alaska, or an individual selected from nominations 
                submitted by the Governor, who shall serve as the State 
                Cochairperson;
                    (B) one shall be the President of the University of 
                Alaska, or an individual selected from nominations 
                submitted by the President of the University of Alaska;
                    (C) one shall be the President of the Alaska 
                Municipal League or an individual selected from 
                nominations submitted by the President of the Alaska 
                Municipal League;
                    (D) one shall be the President of the Alaska 
                Federation or Natives or an individual selected from 
                nominations submitted by the President of the Alaska 
                Federation or Natives;
                    (E) one shall be the Executive President of the 
                Alaska State AFL-CIO or an individual selected from 
                nominations submitted by the Executive President;
                    (F) one shall be the President of the Associated 
                General Contractors of Alaska or an individual selected 
                from nominations submitted by the President of the 
                Associated General Contractors of Alaska; and

[[Page 112 STAT. 2681-638]]

                    (G) one shall be the Federal Cochairperson, who 
                shall be selected in accordance with the requirements of 
                paragraph (2).
            (2) Federal cochairperson.--
                    (A) In general.--The President pro temporare of the 
                Senate and the Speaker of the House of Representatives 
                shall each submit a list of nominations for the position 
                of the Federal Cochairperson under paragraph (1)(G), 
                including pertinent biographical information, to the 
                Secretary.
                    (B) Appointment.--The Secretary shall appoint the 
                Federal Cochairperson from among the list of nominations 
                submitted under subparagraph (A). The Federal 
                Cochairperson shall serve as an employee of the 
                Department of Commerce, and may be removed by the 
                Secretary for cause.
                    (C) Federal cochairperson vote.--The Federal 
                Cochairperson appointed under this paragraph shall break 
                any tie in the voting of the Commission.
            (4) Date.--The appointments of the members of the Commission 
        shall be made no later than January 1, 1999.

    (c) Period of Appointment; Vacancies.--Members shall be appointed 
for the life of the Commission. Any vacancy in the Commission shall not 
affect its powers, but shall be filled in the same manner as the 
original appointment.
    (d) Meetings.--
            (1) In general.--The Commission shall meet at the call of 
        the Federal Cochairperson not less frequently than 2 times each 
        year, and may, as appropriate, conduct business by telephone or 
        other electronic means.
            (2) Notification.--Not later than 2 weeks before calling a 
        meeting under this subsection, the Federal Cochairperson shall--
                    (A) notify each member of the Commission of the 
                time, date and location of that meeting; and
                    (B) provide each member of the Commission with a 
                written agenda for the meeting, including any proposals 
                for discussion and consideration, and any appropriate 
                background materials.

    (e) Quorum.--A majority of the members of the Commission shall 
constitute a quorum, but a lesser number of members may hold hearings.

SEC. 304. DUTIES OF THE COMMISSION.

    (a) Work Plan.--
            (1) In general.--Not later than 1 year after the date of 
        enactment of this Act and annually thereafter, the Commission 
        shall develop a proposed work plan for Alaska that meets the 
        requirements of paragraph (2) and submit that plan to the 
        Federal Cochairperson for review in accordance with the 
        requirements of subsection (b).
            (2) Work plan.--In developing the work plan, the Commission 
        shall--
                    (A) solicit project proposals from local governments 
                and other entities and organizations; and
                    (B) provide for a comprehensive work plan for rural 
                and infrastructure development and necessary job 
                training in the area covered under the work plan.

[[Page 112 STAT. 2681-639]]

            (3) Report.--Upon completion of a work plan under this 
        subsection, the Commission shall prepare, and submit to the 
        Secretary, the Federal Cochairperson, and the Director of the 
        Office of Management and Budget, a report that outlines the work 
        plan and contains recommendations for funding priorities.

    (b) Review by Federal Cochairperson.--
            (1) <> In general.--
        Upon receiving a work plan under this section, the Secretary, 
        acting through the Federal Cochairperson, shall publish the work 
        plan in the Federal Register, with notice and an opportunity for 
        public comment. The period for public review and comment shall 
        be the 30-day period beginning on the date of publication of 
        that notice.
            (2) Criteria for review.--In conducting a review under 
        paragraph (1), the Secretary, acting through the Federal 
        Cochairperson, shall--
                    (A) take into consideration the information, views, 
                and comments received from interested parties through 
                the public review and comment process specified in 
                paragraph (1); and
                    (B) consult with appropriate Federal officials in 
                Alaska including but not limited to Bureau of Indian 
                Affairs, Economic Development Administration, and Rural 
                Development Administration.
            (3) Approval.--Not later than 30 days after the end of the 
        period specified in paragraph (1), the Secretary acting through 
        the Federal Cochairperson, shall--
                    (A) approve, disapprove, or partially approve the 
                work plan that is the subject of the review; and
                    (B) issue to the Commission a notice of the 
                approval, disapproval, or partial approval that--
                          (i) specifies the reasons for disapproving any 
                      portion of the work plan; and
                          (ii) if applicable, includes recommendations 
                      for revisions to the work plan to make the plan 
                      subject to approval.
            (4) Review of disapproval or partial approval.--If the 
        Secretary, acting through the Federal Cochairperson, disapproves 
        or partially approves a work plan, the Federal Cochairperson 
        shall submit that work plan to the Commission for review and 
        revision.

SEC. 305. POWERS OF THE COMMISSION.

    (a) Information From Federal Agencies.--The Commission may secure 
directly from any Federal department or agency such information as it 
considers necessary to carry out the provisions of this Act. Upon 
request of the Federal Cochairperson of the Commission, the head of such 
department or agency shall furnish such information to the Commission. 
Agencies must provide the Commission with the requested information in a 
timely manner. Agencies are not required to provide the Commission any 
information that is exempt from disclosure by the Freedom of Information 
Act. Agenices may, upon request by the Commission, make services and 
personnel available to the Commission to carry out the duties of the 
Commission. To the maximum extent practicable, the Commission shall 
contract for completion of necesssary work utilizing local firms and 
labor to minimize costs.

[[Page 112 STAT. 2681-640]]

    (b) Postal Services.--The Commission may use the United States mails 
in the same manner and under the same conditions as other departments 
and agencies of the Federal Government.
    (c) Gifts.--The Commission may accept, use, and dispose of gifts or 
donations of services or property.

SEC. 306. COMMISSION PERSONNEL MATTERS.

    (a) Compensation of Members.--Each member of the Commission who is 
not an officer or employee of the Federal Government shall be 
compensated at a rate equal to the daily equivalent of the annual rate 
of basic pay prescribed for level IV of the Executive Schedule under 
section 5315 of title 5, United States Code, for each day (including 
travel time) during the time such member is engaged in the performance 
of the duties of the Commission. All members of the Commission who are 
officers or employees of the United States shall serve without 
compensation that is in addition to that received for their services as 
officers or employees of the United States.
    (b) Travel Expenses.--The members of the Commission shall be allowed 
travel expenses, including per diem in lieu of subsistence, at rates 
authorized for employees of agencies under subchapter I of chapter 57 of 
title 5, United States Code, while away from their homes or regular 
places of business in the performance of services for the Commission.
    (c) Staff.--
            (1) In general.--The Federal Cochairperson of the Commission 
        may, without regard to the civil service laws and regulations, 
        appoint such personnel as may be necessary to enable the 
        Commission to perform its duties.
            (2) Compensation.--The Chairman of the Commission may fix 
        the compensation of personnel without regard to the provisions 
        of chapter 51 and subchapter III of chapter 53 of title 5, 
        United States Code, relating to classification of positions and 
        General Schedule pay rates.

    (d) Detail of Government Employees.--Any Federal Government employee 
may be detailed to the Commission without reimbursement, and such detail 
shall be without interruption or loss of civil service status or 
privilege.
    (e) Procurement of Temporary and Intermittent Services.--The Federal 
Cochairperson of the Commission may procure temporary and intermittent 
services under section 3109(b) of title 5, United States Code, at rates 
for individuals which do not exceed the daily equivalent of the annual 
rate of basic pay prescribed for level V of the Executive Schedule under 
section 5316 of such title.
    (f) Offices.--The principal office of the Commission shall be 
located in Alaska, at a location that the Commission shall select.

SEC. 307. SPECIAL FUNCTIONS.

    (a) Rural Utilities.--In carrying out its functions under this 
title, the Commission shall as appropriate, provide assistance, seek to 
avoid duplicating services and assistance, and complement the water and 
sewer wastewater programs under section 306D of the Consolidated Farm 
and Rural Development Act (7 U.S.C. 1926d) and section 303 of the Safe 
Drinking Water Act Amendments of 1996 (33 U.S.C. 1263a).
    (b) Bulk Fuels.--The Commission, in consultation with the Commandant 
of the Coast Guard, shall develop a plan to provide

[[Page 112 STAT. 2681-641]]

for the repair or replacement of bulk fuel storage tanks in Alaska that 
are not in compliance with applicable--
            (1) Federal law, including the Oil Pollution Act of 1990 
        (104 Stat. 484); or
            (2) State law.

SEC. 308. EXEMPTION FROM FEDERAL ADVISORY COMMITTEE ACT.

    The Federal Advisory Committee Act shall not apply to the 
Commission.

SEC. 309. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--There are authorized to be appropriated to the 
Commission to carry out the duties of the Commission consistent with the 
purposes of this title and pursuant to the work plan approved under 
section 4 under this Act, $20,000,000 for fiscal year 1999, and such 
sums as may be necessary for fiscal years 2000, 2001, 2002, and 2003
    (b) Availability.--Any sums appropriated under the authorization 
contained in this section shall remain available until expended.

TITLE <> IV--AMERICAN COMPETITIVENESS AND WORKFORCE IMPROVEMENT ACT

SEC. 401. SHORT TITLE; TABLE OF CONTENTS; AMENDMENTS TO IMMIGRATION AND 
            NATIONALITY ACT.

    (a) Short <> Title.--This title may be cited 
as the ``American Competitiveness and Workforce Improvement Act of 
1998''.

    (b) Table of Contents.--The table of contents of this title is as 
follows:

Sec. 401. Short title; table of contents; amendments to Immigration and 
           Nationality Act.

          Subtitle A--Provisions Relating to H-1B Nonimmigrants

Sec. 411. Temporary increase in access to temporary skilled personnel 
           under H-1B program.
Sec. 412. Protection against displacement of United States workers in 
           case of H-1B-dependent employers.
Sec. 413. Changes in enforcement and penalties.
Sec. 414. Collection and use of H-1B nonimmigrant fees for scholarships 
           for low-income math, engineering, and computer science 
           students and job training of United States workers.
Sec. 415. Computation of prevailing wage level.
Sec. 416. Improving count of H-1B and H-2B nonimmigrants.
Sec. 417. Report on older workers in the information technology field.
Sec. 418. Report on high technology labor market needs; reports on 
           economic impact of increase in H-1B nonimmigrants.

Subtitle B--Special Immigrant Status for Certain NATO Civilian Employees

Sec. 421. Special immigrant status for certain NATO civilian employees.

                   Subtitle C--Miscellaneous Provision

Sec. 431. Academic honoraria.

    (c) Amendments to Immigration and Nationality Act.--Except as 
otherwise specifically provided in this title, whenever in this title an 
amendment is expressed in terms of an amendment to a section or other 
provision, the reference shall be considered to be made to that section 
or other provision of the Immigration and Nationality Act (8 U.S.C. 1101 
et seq.).

[[Page 112 STAT. 2681-642]]

          Subtitle A--Provisions Relating to H-1B Nonimmigrants

SEC. 411. TEMPORARY INCREASE IN ACCESS TO TEMPORARY SKILLED PERSONNEL 
            UNDER H-1B PROGRAM.

    (a) Temporary Increase in Skilled Nonimmigrant Workers.--Paragraph 
(1)(A) of section 214(g) (8 U.S.C. 1184(g)) is amended to read as 
follows:
            ``(A) under section 101(a)(15)(H)(i)(b), may not exceed--
                    ``(i) 65,000 in each fiscal year before fiscal year 
                1999;
                    ``(ii) 115,000 in fiscal year 1999;
                    ``(iii) 115,000 in fiscal year 2000;
                    ``(iv) 107,500 in fiscal year 2001; and
                    ``(v) 65,000 in each succeeding fiscal year; or''.

     <> (b) Effective Dates.--The amendment made 
by subsection (a) applies beginning with fiscal year 1999.

SEC. 412. PROTECTION AGAINST DISPLACEMENT OF UNITED STATES WORKERS IN 
            CASE OF H-1B-DEPENDENT EMPLOYERS.

    (a) Protection Against Layoff and Requirement for Prior Recruitment 
of United States Workers.--
            (1) Additional statements on application.--Section 212(n)(1) 
        (8 U.S.C. 1182(n)(1)) is amended by inserting after subparagraph 
        (D) the following:
            ``(E)(i) In the case of an application described in clause 
        (ii), the employer did not displace and will not displace a 
        United States worker (as defined in paragraph (4)) employed by 
        the employer within the period beginning 90 days before and 
        ending 90 days after the date of filing of any visa petition 
        supported by the application.
            ``(ii) An application described in this clause is an 
        application filed on or after the date final regulations are 
        first promulgated to carry out this subparagraph, and before 
        October 1, 2001, by an H-1B-dependent employer (as defined in 
        paragraph (3)) or by an employer that has been found, on or 
        after the date of the enactment of the American Competitiveness 
        and Workforce Improvement Act of 1998, under paragraph (2)(C) or 
        (5) to have committed a willful failure or misrepresentation 
        during the 5-year period preceding the filing of the 
        application. An application is not described in this clause if 
        the only H-1B nonimmigrants sought in the application are exempt 
        H-1B nonimmigrants.
            ``(F) In the case of an application described in 
        subparagraph (E)(ii), the employer will not place the 
        nonimmigrant with another employer (regardless of whether or not 
        such other employer is an H-1B-dependent employer) where--
                    ``(i) the nonimmigrant performs duties in whole or 
                in part at one or more worksites owned, operated, or 
                controlled by such other employer; and
                    ``(ii) there are indicia of an employment 
                relationship between the nonimmigrant and such other 
                employer;
        unless the employer has inquired of the other employer as to 
        whether, and has no knowledge that, within the period beginning 
        90 days before and ending 90 days after the date of the 
        placement of the nonimmigrant with the other employer, the other 
        employer has displaced or intends to displace a United States 
        worker employed by the other employer.

[[Page 112 STAT. 2681-643]]

            ``(G)(i) In the case of an application described in 
        subparagraph (E)(ii), subject to clause (ii), the employer, 
        prior to filing the application--
                    ``(I) has taken good faith steps to recruit, in the 
                United States using procedures that meet industry-wide 
                standards and offering compensation that is at least as 
                great as that required to be offered to H-1B 
                nonimmigrants under subparagraph (A), United States 
                workers for the job for which the nonimmigrant or 
                nonimmigrants is or are sought; and
                    ``(II) has offered the job to any United States 
                worker who applies and is equally or better qualified 
                for the job for which the nonimmigrant or nonimmigrants 
                is or are sought.
            ``(ii) The conditions described in clause (i) shall not 
        apply to an application filed with respect to the employment of 
        an H-1B nonimmigrant who is described in subparagraph (A), (B), 
        or (C) of section 203(b)(1).''.
            (2) Notice on application of potential liability of placing 
        employers.--Section 212(n)(1) (8 U.S.C. 1182(n)(1)) is amended 
        by adding at the end the following: ``The application form shall 
        include a clear statement explaining the liability under 
        subparagraph (F) of a placing employer if the other employer 
        described in such subparagraph displaces a United States worker 
        as described in such subparagraph.''.
            (3) Construction.--Section 212(n)(1) (8 U.S.C. 1182(n)(1)) 
        is further amended by adding at the end the following: ``Nothing 
        in subparagraph (G) shall be construed to prohibit an employer 
        from using legitimate selection criteria relevant to the job 
        that are normal or customary to the type of job involved, so 
        long as such criteria are not applied in a discriminatory 
        manner.''.

    (b) H-1B-Dependent Employer and Other Definitions.--
            (1) In general.--Section 212(n) (8 U.S.C. 1182(n)) is 
        amended by adding at the end the following:

    ``(3)(A) For purposes of this subsection, the term `H-1B-dependent 
employer' means an employer that--
            ``(i)(I) has 25 or fewer full-time equivalent employees who 
        are employed in the United States; and (II) employs more than 7 
        H-1B nonimmigrants;
            ``(ii)(I) has at least 26 but not more than 50 full-time 
        equivalent employees who are employed in the United States; and 
        (II) employs more than 12 H-1B nonimmigrants; or
            ``(iii)(I) has at least 51 full-time equivalent employees 
        who are employed in the United States; and (II) employs H-1B 
        nonimmigrants in a number that is equal to at least 15 percent 
        of the number of such full-time equivalent employees.

    ``(B) For purposes of this subsection--
            ``(i) the term `exempt H-1B nonimmigrant' means an H-1B 
        nonimmigrant who--
                    ``(I) receives wages (including cash bonuses and 
                similar compensation) at an annual rate equal to at 
                least $60,000; or
                    ``(II) has attained a master's or higher degree (or 
                its equivalent) in a specialty related to the intended 
                employment; and

[[Page 112 STAT. 2681-644]]

            ``(ii) the term `nonexempt H-1B nonimmigrant' means an H-1B 
        nonimmigrant who is not an exempt H-1B nonimmigrant.

    ``(C) For purposes of subparagraph (A)--
            ``(i) in computing the number of full-time equivalent 
        employees and the number of H-1B nonimmigrants, exempt H-1B 
        nonimmigrants shall not be taken into account during the longer 
        of--
                    ``(I) the 6-month period beginning on the date of 
                the enactment of the American Competitiveness and 
                Workforce Improvement Act of 1998; or
                    ``(II) the period beginning on the date of the 
                enactment of the American Competitiveness and Workforce 
                Improvement Act of 1998 and ending on the date final 
                regulations are issued to carry out this paragraph; and
            ``(ii) any group treated as a single employer under 
        subsection (b), (c), (m), or (o) of section 414 of the Internal 
        Revenue Code of 1986 shall be treated as a single employer.

    ``(4) For purposes of this subsection:
            ``(A) The term `area of employment' means the area within 
        normal commuting distance of the worksite or physical location 
        where the work of the H-1B nonimmigrant is or will be performed. 
        If such worksite or location is within a Metropolitan 
        Statistical Area, any place within such area is deemed to be 
        within the area of employment.
            ``(B) In the case of an application with respect to one or 
        more H-1B nonimmigrants by an employer, the employer is 
        considered to `displace' a United States worker from a job if 
        the employer lays off the worker from a job that is essentially 
        the equivalent of the job for which the nonimmigrant or 
        nonimmigrants is or are sought. A job shall not be considered to 
        be essentially equivalent of another job unless it involves 
        essentially the same responsibilities, was held by a United 
        States worker with substantially equivalent qualifications and 
        experience, and is located in the same area of employment as the 
        other job.
            ``(C) The term `H-1B nonimmigrant' means an alien admitted 
        or provided status as a nonimmigrant described in section 
        101(a)(15)(H)(i)(b).
            ``(D)(i) The term `lays off', with respect to a worker--
                    ``(I) means to cause the worker's loss of 
                employment, other than through a discharge for 
                inadequate performance, violation of workplace rules, 
                cause, voluntary departure, voluntary retirement, or the 
                expiration of a grant or contract (other than a 
                temporary employment contract entered into in order to 
                evade a condition described in subparagraph (E) or (F) 
                of paragraph (1)); but
                    ``(II) does not include any situation in which the 
                worker is offered, as an alternative to such loss of 
                employment, a similar employment opportunity with the 
                same employer (or, in the case of a placement of a 
                worker with another employer under paragraph (1)(F), 
                with either employer described in such paragraph) at 
                equivalent or higher compensation and benefits than the 
                position from which the employee was discharged, 
                regardless of whether or not the employee accepts the 
                offer.

[[Page 112 STAT. 2681-645]]

            ``(ii) Nothing in this subparagraph is intended to limit an 
        employee's rights under a collective bargaining agreement or 
        other employment contract.
            ``(E) The term `United States worker' means an employee 
        who--
                    ``(i) is a citizen or national of the United States; 
                or
                    ``(ii) is an alien who is lawfully admitted for 
                permanent residence, is admitted as a refugee under 
                section 207, is granted asylum under section 208, or is 
                an immigrant otherwise authorized, by this Act or by the 
                Attorney General, to be employed.''.
            (2) Conforming amendments.--Section 212(n)(1) (8 U.S.C. 
        1182(n)(1)) is amended by striking ``a nonimmigrant described in 
        section 101(a)(15)(H)(i)(b)'' each place it appears and 
        inserting ``an H-1B nonimmigrant''.

    (c) Improved Posting of Notice of Application.--Section 
212(n)(1)(C)(ii) (8 U.S.C. 1182(n)(1)(C)(ii)) is amended to read as 
follows:
                    ``(ii) if there is no such bargaining 
                representative, has provided notice of filing in the 
                occupational classification through such methods as 
                physical posting in conspicuous locations at the place 
                of employment or electronic notification to employees in 
                the occupational classification for which H-1B 
                nonimmigrants are sought.''.

     <> (d) Effective Dates.--The amendments 
made by subsection (a) apply to applications filed under section 
212(n)(1) of the Immigration and Nationality Act on or after the date 
final regulations are issued to carry out such amendments, and the 
amendments made by subsections (b) and (c) take effect on the date of 
the enactment of this Act.

     <> (e) Reduction of Period for Public 
Comment.--In first promulgating regulations to implement the amendments 
made by this section in a timely manner, the Secretary of Labor and the 
Attorney General may reduce to not less than 30 days the period of 
public comment on proposed regulations.

SEC. 413. CHANGES IN ENFORCEMENT AND PENALTIES.

    (a) Increased Enforcement and Penalties.--Section 212(n)(2)(C) (8 
U.S.C. 1182(n)(2)(C)) is amended to read as follows:
    ``(C)(i) If the Secretary finds, after notice and opportunity for a 
hearing, a failure to meet a condition of paragraph (1)(B), (1)(E), or 
(1)(F), a substantial failure to meet a condition of paragraph (1)(C), 
(1)(D), or (1)(G)(i)(I), or a misrepresentation of material fact in an 
application--
            ``(I) <> the Secretary shall notify the 
        Attorney General of such finding and may, in addition, impose 
        such other administrative remedies (including civil monetary 
        penalties in an amount not to exceed $1,000 per violation) as 
        the Secretary determines to be appropriate; and
            ``(II) the Attorney General shall not approve petitions 
        filed with respect to that employer under section 204 or 214(c) 
        during a period of at least 1 year for aliens to be employed by 
        the employer.

    ``(ii) If the Secretary finds, after notice and opportunity for a 
hearing, a willful failure to meet a condition of paragraph (1), a 
willful misrepresentation of material fact in an application, or a 
violation of clause (iv)--

[[Page 112 STAT. 2681-646]]

            ``(I) the <> Secretary shall notify the 
        Attorney General of such finding and may, in addition, impose 
        such other administrative remedies (including civil monetary 
        penalties in an amount not to exceed $5,000 per violation) as 
        the Secretary determines to be appropriate; and
            ``(II) the Attorney General shall not approve petitions 
        filed with respect to that employer under section 204 or 214(c) 
        during a period of at least 2 years for aliens to be employed by 
        the employer.

    ``(iii) If the Secretary finds, after notice and opportunity for a 
hearing, a willful failure to meet a condition of paragraph (1) or a 
willful misrepresentation of material fact in an application, in the 
course of which failure or misrepresentation the employer displaced a 
United States worker employed by the employer within the period 
beginning 90 days before and ending 90 days after the date of filing of 
any visa petition supported by the application--
            ``(I) <> the Secretary shall notify the 
        Attorney General of such finding and may, in addition, impose 
        such other administrative remedies (including civil monetary 
        penalties in an amount not to exceed $35,000 per violation) as 
        the Secretary determines to be appropriate; and
            ``(II) the Attorney General shall not approve petitions 
        filed with respect to that employer under section 204 or 214(c) 
        during a period of at least 3 years for aliens to be employed by 
        the employer.

    ``(iv) It is a violation of this clause for an employer who has 
filed an application under this subsection to intimidate, threaten, 
restrain, coerce, blacklist, discharge, or in any other manner 
discriminate against an employee (which term, for purposes of this 
clause, includes a former employee and an applicant for employment) 
because the employee has disclosed information to the employer, or to 
any other person, that the employee reasonably believes evidences a 
violation of this subsection, or any rule or regulation pertaining to 
this subsection, or because the employee cooperates or seeks to 
cooperate in an investigation or other proceeding concerning the 
employer's compliance with the requirements of this subsection or any 
rule or regulation pertaining to this subsection.
    ``(v) The Secretary of Labor and the Attorney General shall devise a 
process under which an H-1B nonimmigrant who files a complaint regarding 
a violation of clause (iv) and is otherwise eligible to remain and work 
in the United States may be allowed to seek other appropriate employment 
in the United States for a period not to exceed the maximum period of 
stay authorized for such nonimmigrant classification.
    ``(vi)(I) It is a violation of this clause for an employer who has 
filed an application under this subsection to require an H-1B 
nonimmigrant to pay a penalty for ceasing employment with the employer 
prior to a date agreed to by the nonimmigrant and the employer. The 
Secretary shall determine whether a required payment is a penalty (and 
not liquidated damages) pursuant to relevant State law.
    ``(II) It is a violation of this clause for an employer who has 
filed an application under this subsection to require an alien who is 
the subject of a petition filed under section 214(c)(1), for which a fee 
is imposed under section 214(c)(9), to reimburse, or otherwise 
compensate, the employer for part or all of the cost of such fee.

[[Page 112 STAT. 2681-647]]

It is a violation of this clause for such an employer otherwise to 
accept such reimbursement or compensation from such an alien.
    ``(III) If the Secretary finds, after notice and opportunity for a 
hearing, that an employer has committed a violation of this clause, the 
Secretary may impose a civil monetary penalty of $1,000 for each such 
violation and issue an administrative order requiring the return to the 
nonimmigrant of any amount paid in violation of this clause, or, if the 
nonimmigrant cannot be located, requiring payment of any such amount to 
the general fund of the Treasury.
    ``(vii)(I) It is a failure to meet a condition of paragraph (1)(A) 
for an employer, who has filed an application under this subsection and 
who places an H-1B nonimmigrant designated as a full-time employee on 
the petition filed under section 214(c)(1) by the employer with respect 
to the nonimmigrant, after the nonimmigrant has entered into employment 
with the employer, in nonproductive status due to a decision by the 
employer (based on factors such as lack of work), or due to the 
nonimmigrant's lack of a permit or license, to fail to pay the 
nonimmigrant full-time wages in accordance with paragraph (1)(A) for all 
such nonproductive time.
    ``(II) It is a failure to meet a condition of paragraph (1)(A) for 
an employer, who has filed an application under this subsection and who 
places an H-1B nonimmigrant designated as a part-time employee on the 
petition filed under section 214(c)(1) by the employer with respect to 
the nonimmigrant, after the nonimmigrant has entered into employment 
with the employer, in nonproductive status under circumstances described 
in subclause (I), to fail to pay such a nonimmigrant for such hours as 
are designated on such petition consistent with the rate of pay 
identified on such petition.
    ``(III) In the case of an H-1B nonimmigrant who has not yet entered 
into employment with an employer who has had approved an application 
under this subsection, and a petition under section 214(c)(1), with 
respect to the nonimmigrant, the provisions of subclauses (I) and (II) 
shall apply to the employer beginning 30 days after the date the 
nonimmigrant first is admitted into the United States pursuant to the 
petition, or 60 days after the date the nonimmigrant becomes eligible to 
work for the employer (in the case of a nonimmigrant who is present in 
the United States on the date of the approval of the petition).
    ``(IV) This clause does not apply to a failure to pay wages to an H-
1B nonimmigrant for nonproductive time due to non-work-related factors, 
such as the voluntary request of the nonimmigrant for an absence or 
circumstances rendering the nonimmigrant unable to work.
    ``(V) This clause shall not be construed as prohibiting an employer 
that is a school or other educational institution from applying to an H-
1B nonimmigrant an established salary practice of the employer, under 
which the employer pays to H-1B nonimmigrants and United States workers 
in the same occupational classification an annual salary in 
disbursements over fewer than 12 months, if--
            ``(aa) the nonimmigrant agrees to the compressed annual 
        salary payments prior to the commencement of the employment; and
            ``(bb) the application of the salary practice to the 
        nonimmigrant does not otherwise cause the nonimmigrant to

[[Page 112 STAT. 2681-648]]

        violate any condition of the nonimmigrant's authorization under 
        this Act to remain in the United States.

    ``(VI) This clause shall not be construed as superseding clause 
(viii).
    ``(viii) It is a failure to meet a condition of paragraph (1)(A) for 
an employer who has filed an application under this subsection to fail 
to offer to an H-1B nonimmigrant, during the nonimmigrant's period of 
authorized employment, benefits and eligibility for benefits (including 
the opportunity to participate in health, life, disability, and other 
insurance plans; the opportunity to participate in retirement and 
savings plans; and cash bonuses and noncash compensation, such as stock 
options (whether or not based on performance)) on the same basis, and in 
accordance with the same criteria, as the employer offers to United 
States workers.''.
    (b) Use of Arbitration Process for Disputes Involving Qualifications 
of United States Workers Not Hired.--
            (1) In general.--Section 212(n) (8 U.S.C. 1182(n)), as 
        amended by section 412(b), is further amended by adding at the 
        end the following:

    ``(5)(A) <> This paragraph shall apply instead 
of subparagraphs (A) through (E) of paragraph (2) in the case of a 
violation described in subparagraph (B), but shall not be construed to 
limit or affect the authority of the Secretary or the Attorney General 
with respect to any other violation.

    ``(B) <> The Attorney General shall establish 
a process for the receipt, initial review, and disposition in accordance 
with this paragraph of complaints respecting an employer's failure to 
meet the condition of paragraph (1)(G)(i)(II) or a petitioner's 
misrepresentation of material facts with respect to such condition. 
Complaints may be filed by an aggrieved individual who has submitted a 
resume or otherwise applied in a reasonable manner for the job that is 
the subject of the condition. No proceeding shall be conducted under 
this paragraph on a complaint concerning such a failure or 
misrepresentation unless the Attorney General determines that the 
complaint was filed not later than 12 months after the date of the 
failure or misrepresentation, respectively.

    ``(C) If the Attorney General finds that a complaint has been filed 
in accordance with subparagraph (B) and there is reasonable cause to 
believe that such a failure or misrepresentation described in such 
complaint has occurred, the Attorney General shall initiate binding 
arbitration proceedings by requesting the Federal Mediation and 
Conciliation Service to appoint an arbitrator from the roster of 
arbitrators maintained by such Service. The procedure and rules of such 
Service shall be applicable to the selection of such arbitrator and to 
such arbitration proceedings. The Attorney General shall pay the fee and 
expenses of the arbitrator.
    ``(D)(i) The arbitrator shall make findings respecting whether a 
failure or misrepresentation described in subparagraph (B) occurred. If 
the arbitrator concludes that failure or misrepresentation was willful, 
the arbitrator shall make a finding to that effect. The arbitrator may 
not find such a failure or misrepresentation (or that such a failure or 
misrepresentation was willful) unless the complainant demonstrates such 
a failure or misrepresentation (or its willful character) by clear and 
convincing evidence. The arbitrator shall transmit the findings in the 
form of a written opinion to the parties to the arbitration and the 
Attorney General. Such findings shall be final and conclusive, and, 
except as provided

[[Page 112 STAT. 2681-649]]

in this subparagraph, no official or court of the United States shall 
have power or jurisdiction to review any such findings.
    ``(ii) The Attorney General may review and reverse or modify the 
findings of an arbitrator only on the same bases as an award of an 
arbitrator may be vacated or modified under section 10 or 11 of title 9, 
United States Code.
    ``(iii) With respect to the findings of an arbitrator, a court may 
review only the actions of the Attorney General under clause (ii) and 
may set aside such actions only on the grounds described in subparagraph 
(A), (B), or (C) of section 706(a)(2) of title 5, United States Code. 
Notwithstanding any other provision of law, such judicial review may 
only be brought in an appropriate United States court of appeals.
    ``(E) If the Attorney General receives a finding of an arbitrator 
under this paragraph that an employer has failed to meet the condition 
of paragraph (1)(G)(i)(II) or has misrepresented a material fact with 
respect to such condition, unless the Attorney General reverses or 
modifies the finding under subparagraph (D)(ii)--
            ``(i) the Attorney General may impose administrative 
        remedies (including civil monetary penalties in an amount not to 
        exceed $1,000 per violation or $5,000 per violation in the case 
        of a willful failure or misrepresentation) as the Attorney 
        General determines to be appropriate; and
            ``(ii) the Attorney General is authorized to not approve 
        petitions filed, with respect to that employer and for aliens to 
        be employed by the employer, under section 204 or 214(c)--
                    ``(I) during a period of not more than 1 year; or
                    ``(II) in the case of a willful failure or willful 
                misrepresentation, during a period of not more than 2 
                years.

    ``(F) The Attorney General shall not delegate, to any other employee 
or official of the Department of Justice, any function of the Attorney 
General under this paragraph, until 60 days after the Attorney General 
has submitted a plan for such delegation to the Committees on the 
Judiciary of the United States House of Representatives and the 
Senate.''.
            (2) Conforming amendment.--The first sentence of section 
        212(n)(2)(A) (8 U.S.C. 1182(n)(2)(A)) is amended by striking 
        ``The Secretary'' and inserting ``Subject to paragraph (5)(A), 
        the Secretary''.

    (c) Liability of Petitioning Employer in Case of Placement of H-1B 
Nonimmigrant With Another Employer.--Section 212(n)(2) (8 U.S.C. 
1182(n)(2)) is amended by adding at the end the following:
    ``(E) If an H-1B-dependent employer places a nonexempt H-1B 
nonimmigrant with another employer as provided under paragraph (1)(F) 
and the other employer has displaced or displaces a United States worker 
employed by such other employer during the period described in such 
paragraph, such displacement shall be considered for purposes of this 
paragraph a failure, by the placing employer, to meet a condition 
specified in an application submitted under paragraph (1); except that 
the Attorney General may impose a sanction described in subclause (II) 
of subparagraph (C)(i), (C)(ii), or (C)(iii) only if the Secretary of 
Labor found that such placing employer--
            ``(i) knew or had reason to know of such displacement at the 
        time of the placement of the nonimmigrant with the other 
        employer; or

[[Page 112 STAT. 2681-650]]

            ``(ii) has been subject to a sanction under this 
        subparagraph based upon a previous placement of an H-1B 
        nonimmigrant with the same other employer.''.

    (d) Spot Investigations During Probationary Period.--Section 
212(n)(2) (8 U.S.C. 1182(n)(2)), as amended by subsection (c), is 
further amended by adding at the end the following:
    ``(F) The Secretary may, on a case-by-case basis, subject an 
employer to random investigations for a period of up to 5 years, 
beginning on the date (on or after the date of the enactment of the 
American Competitiveness and Workforce Improvement Act of 1998) on which 
the employer is found by the Secretary to have committed a willful 
failure to meet a condition of paragraph (1) (or has been found under 
paragraph (5) to have committed a willful failure to meet the condition 
of paragraph (1)(G)(i)(II)) or to have made a willful misrepresentation 
of material fact in an application. The preceding sentence shall apply 
to an employer regardless of whether or not the employer is an H-1B-
dependent employer. The authority of the Secretary under this 
subparagraph shall not be construed to be subject to, or limited by, the 
requirements of subparagraph (A).''.
    (e) Additional Investigative Authority.--
             (1) In general.--Section 212(n)(2) (8 U.S.C. 1182(n)(2)), 
        as amended by subsection (d), is further amended by adding at 
        the end the following:

    ``(G)(i) If the Secretary receives specific credible information 
from a source, who is likely to have knowledge of an employer's 
practices or employment conditions, or an employer's compliance with the 
employer's labor condition application under paragraph (1), and whose 
identity is known to the Secretary, and such information provides 
reasonable cause to believe that the employer has committed a willful 
failure to meet a condition of paragraph (1)(A), (1)(B), (1)(E), (1)(F), 
or (1)(G)(i)(I), has engaged in a pattern or practice of failures to 
meet such a condition, or has committed a substantial failure to meet 
such a condition that affects multiple employees, the Secretary may 
conduct a 30-day investigation into the alleged failure or 
failures. <> The Secretary (or the Acting 
Secretary in the case of the Secretary's absence or disability) shall 
personally certify that the requirements for conducting such an 
investigation have been met and shall approve commencement of the 
investigation. The Secretary may withhold the identity of the source 
from the employer, and the source's identity shall not be subject to 
disclosure under section 552 of title 5, United States Code.

    ``(ii) The Secretary shall establish a procedure for any person, 
desiring to provide to the Secretary information described in clause (i) 
that may be used, in whole or in part, as the basis for commencement of 
an investigation described in such clause, to provide the information in 
writing on a form developed and provided by the Secretary and completed 
by or on behalf of the person. The person may not be an officer or 
employee of the Department of Labor, unless the information satisfies 
the requirement of clause (iii)(II) (although an officer or employee of 
the Department of Labor may complete the form on behalf of the person).
    ``(iii) Any investigation initiated or approved by the Secretary 
under clause (i) shall be based on information that satisfies the 
requirements of such clause and that (I) originates from a source other 
than an officer or employee of the Department of Labor,

[[Page 112 STAT. 2681-651]]

or (II) was lawfully obtained by the Secretary of Labor in the course of 
lawfully conducting another Department of Labor investigation under this 
Act or any other Act.
    ``(iv) The receipt by the Secretary of information submitted by an 
employer to the Attorney General or the Secretary for purposes of 
securing the employment of an H-1B nonimmigrant shall not be considered 
a receipt of information for purposes of clause (i).
    ``(v) No investigation described in clause (i) (or hearing described 
in clause (vii)) may be conducted with respect to information about a 
failure to meet a condition described in clause (i), unless the 
Secretary receives the information not later than 12 months after the 
date of the alleged failure.
    ``(vi) <> The Secretary shall provide notice to an 
employer with respect to whom the Secretary has received information 
described in clause (i), prior to the commencement of an investigation 
under such clause, of the receipt of the information and of the 
potential for an investigation. The notice shall be provided in such a 
manner, and shall contain sufficient detail, to permit the employer to 
respond to the allegations before an investigation is commenced. The 
Secretary is not required to comply with this clause if the Secretary 
determines that to do so would interfere with an effort by the Secretary 
to secure compliance by the employer with the requirements of this 
subsection. There shall be no judicial review of a determination by the 
Secretary under this clause.

    ``(vii) <> If the Secretary determines under this 
subparagraph that a reasonable basis exists to make a finding that a 
failure described in clause (i) has occurred, the Secretary shall 
provide for notice of such determination to the interested parties and 
an opportunity for a hearing, in accordance with section 556 of title 5, 
United States Code, within 60 days after the date of the determination. 
If such a hearing is requested, the Secretary shall make a finding 
concerning the matter by not later than 60 days after the date of the 
hearing.''.
             <> (2) Sunset.--The amendment made 
        by paragraph (1) shall cease to be effective on September 30, 
        2001.

    (f) Construction.--Section 212(n)(2) (8 U.S.C. 1182(n)(2)), as 
amended by subsection (e), is further amended by adding at the end the 
following:
    ``(H) Nothing in this subsection shall be construed as superseding 
or preempting any other enforcement-related authority under this Act 
(such as the authorities under section 274B), or any other Act.''.

SEC. 414. COLLECTION AND USE OF H-1B NONIMMIGRANT FEES FOR SCHOLARSHIPS 
            FOR LOW-INCOME MATH, ENGINEERING, AND COMPUTER SCIENCE 
            STUDENTS AND JOB TRAINING OF UNITED STATES WORKERS.

    (a) Imposition of Fee.--Section 214(c) (8 U.S.C. 1184(c)) is amended 
by adding at the end the following:
    ``(9)(A) The Attorney General shall impose a fee on an employer 
(excluding an employer described in subparagraph (A) or (B) of section 
212(p)(1)) filing (on or after December 1, 1998, and before October 1, 
2001) a petition under paragraph (1)--
            ``(i) initially to grant an alien nonimmigrant status 
        described in section 101(a)(15)(H)(i)(b);

[[Page 112 STAT. 2681-652]]

            ``(ii) to extend the stay of an alien having such status 
        (unless the employer previously has obtained an extension for 
        such alien); or
            ``(iii) to obtain authorization for an alien having such 
        status to change employers.

    ``(B) The amount of the fee shall be $500 for each such petition.
    ``(C) Fees collected under this paragraph shall be deposited in the 
Treasury in accordance with section 286(s).''.
    (b) Establishment of Account; Use of Fees.--Section 286 (8 U.S.C. 
1356) is amended by adding at the end the following:
    ``(s) H-1B Nonimmigrant Petitioner Account.--
            ``(1) In general.--There is established in the general fund 
        of the Treasury a separate account, which shall be known as the 
        `H-1B Nonimmigrant Petitioner Account'. Notwithstanding any 
        other section of this title, there shall be deposited as 
        offsetting receipts into the account all fees collected under 
        section 214(c)(9).
            ``(2) Use of fees for job training.--56.3 percent of amounts 
        deposited into the H-1B Nonimmigrant Petitioner Account shall 
        remain available to the Secretary of Labor until expended for 
        demonstration programs and projects described in section 414(c) 
        of the American Competitiveness and Workforce Improvement Act of 
        1998.
            ``(3) Use of fees for low-income scholarship program.--28.2 
        percent of the amounts deposited into the H-1B Nonimmigrant 
        Petitioner Account shall remain available to the Director of the 
        National Science Foundation until expended for scholarships 
        described in section 414(d) of the American Competitiveness and 
        Workforce Improvement Act of 1998 for low-income students 
        enrolled in a program of study leading to a degree in 
        mathematics, engineering, or computer science.
            ``(4) Additional nsf uses.--
                    ``(A) Grants for mathematics, engineering, or 
                science enrichment courses.--4 percent of the amounts 
                deposited into the H-1B Nonimmigrant Petitioner Account 
                shall remain available to the Director of the National 
                Science Foundation until expended to make merit-reviewed 
                grants, under section 3(a)(1) of the National Science 
                Foundation Act of 1950 (42 U.S.C. 1862(a)(1)), for 
                programs that provide opportunities for enrollment in 
                year-round academic enrichment courses in mathematics, 
                engineering, or science.
                    ``(B) Systemic reform activities.--4 percent of the 
                amounts deposited into the H-1B Nonimmigrant Petitioner 
                Account shall remain available to the Director of the 
                National Science Foundation until expended to carry out 
                systemic reform activities administered by the National 
                Science Foundation under section 3(a)(1) of the National 
                Science Foundation Act of 1950 (42 U.S.C. 1862(a)(1)).
            ``(5) Use of fees for duties relating to petitions.--1.5 
        percent of the amounts deposited into the H-1B Nonimmigrant 
        Petitioner Account shall remain available to the Attorney 
        General until expended to carry out duties under paragraphs (1) 
        and (9) of section 214(c) related to petitions made for 
        nonimmigrants described in section 101(a)(15)(H)(i)(b), to 
        decrease the processing time for such petitions, and to carry

[[Page 112 STAT. 2681-653]]

        out duties under section 416 of the American Competitiveness and 
        Workforce Improvement Act of 1998. Such amounts shall be 
        available in addition to any other fees authorized to be 
        collected by the Attorney General with respect to such 
        petitions.
            ``(6) Use of fees for application processing and 
        enforcement.--For fiscal year 1999, 6 percent of the amounts 
        deposited into the H-1B Nonimmigrant Petitioner Account shall 
        remain available to the Secretary of Labor until expended for 
        decreasing the processing time for applications under section 
        212(n)(1) and for carrying out section 212(n)(2). Beginning with 
        fiscal year 2000, 3 percent of the amounts deposited into the H-
        1B Nonimmigrant Petitioner Account shall remain available to the 
        Secretary of Labor until expended for decreasing the processing 
        time for applications under section 212(n)(1), and 3 percent of 
        such amounts shall remain available to such Secretary until 
        expended for carrying out section 212(n)(2). Notwithstanding the 
        preceding sentence, both of the amounts made available for any 
        fiscal year (beginning with fiscal year 2000) pursuant to the 
        preceding sentence shall be available to such Secretary, and 
        shall remain available until expended, only for decreasing the 
        processing time for applications under section 212(n)(1) until 
        the Secretary submits to the Congress a report containing a 
        certification that, during the most recently concluded calendar 
        year, the Secretary substantially complied with the requirement 
        in section 212(n)(1) relating to the provision of the 
        certification described in section 101(a)(15)(H)(i)(b) within a 
        7-day period.''.

     <> (c) Demonstration Programs and Projects 
To Provide Technical Skills Training for Workers.--
            (1) In general.--In establishing demonstration programs 
        under section 452(c) of the Job Training Partnership Act (29 
        U.S.C. 1732(c)), as in effect on the date of the enactment of 
        this Act, or demonstration programs or projects under section 
        171(b) of the Workforce Investment Act of 1998, the Secretary of 
        Labor shall use funds available under section 286(s)(2) to 
        establish demonstration programs or projects to provide 
        technical skills training for workers, including both employed 
        and unemployed workers.
            (2) Grants.--The Secretary of Labor shall award grants to 
        carry out the programs and projects described in paragraph (1) 
        to--
                    (A)(i) private industry councils established under 
                section 102 of the Job Training Partnership Act (29 
                U.S.C. 1512), as in effect on the date of the enactment 
                of this Act; or
                    (ii) local boards that will carry out such programs 
                or projects through one-stop delivery systems 
                established under section 121 of the Workforce 
                Investment Act of 1998; or
                    (B) regional consortia of councils or local boards 
                described in subparagraph (A).

     <> (d) Low-Income Scholarship Program.--
            (1) Establishment.--The Director of the National Science 
        Foundation (referred to in this subsection as the ``Director'') 
        shall award scholarships to low-income individuals to enable 
        such individuals to pursue associate, undergraduate, or

[[Page 112 STAT. 2681-654]]

        graduate level degrees in mathematics, engineering, or computer 
        science.
            (2) Eligibility.--
                    (A) In general.--To be eligible to receive a 
                scholarship under this subsection, an individual--
                          (i) must be a citizen of the United States, a 
                      national of the United States (as defined in 
                      section 101(a) of the Immigration and Nationality 
                      Act), an alien admitted as a refugee under section 
                      207 of the Immigration and Nationality, or an 
                      alien lawfully admitted to the United States for 
                      permanent residence;
                          (ii) shall prepare and submit to the Director 
                      an application at such time, in such manner, and 
                      containing such information as the Director may 
                      require; and
                          (iii) shall certify to the Director that the 
                      individual intends to use amounts received under 
                      the scholarship to enroll or continue enrollment 
                      at an institution of higher education (as defined 
                      in section 101(a) of the Higher Education Act of 
                      1965) in order to pursue an associate, 
                      undergraduate, or graduate level degree in 
                      mathematics, engineering, or computer science.
                    (B) Ability.--Awards of scholarships under this 
                subsection shall be made by the Director solely on the 
                basis of the ability of the applicant, except that in 
                any case in which 2 or more applicants for scholarships 
                are deemed by the Director to be possessed of 
                substantially equal ability, and there are not 
                sufficient scholarships available to grant one to each 
                of such applicants, the available scholarship or 
                scholarships shall be awarded to the applicants in a 
                manner that will tend to result in a geographically wide 
                distribution throughout the United States of recipients' 
                places of permanent residence.
            (3) Limitation.--The amount of a scholarship awarded under 
        this subsection shall be determined by the Director, except that 
        the Director shall not award a scholarship in an amount 
        exceeding $2,500 per year.
            (4) Funding.--The Director shall carry out this subsection 
        only with funds made available under section 286(s)(3) of the 
        Immigration and Nationality Act.

SEC. 415. COMPUTATION OF PREVAILING WAGE LEVEL.

    (a) In General.--Section 212 (8 U.S.C. 1182) is amended by adding at 
the end the following:
    ``(p)(1) In computing the prevailing wage level for an occupational 
classification in an area of employment for purposes of subsections 
(n)(1)(A)(i)(II) and (a)(5)(A) in the case of an employee of--
            ``(A) an institution of higher education (as defined in 
        section 101(a) of the Higher Education Act of 1965), or a 
        related or affiliated nonprofit entity; or
            ``(B) a nonprofit research organization or a Governmental 
        research organization,

the prevailing wage level shall only take into account employees at such 
institutions and organizations in the area of employment.
    ``(2) With respect to a professional athlete (as defined in 
subsection (a)(5)(A)(iii)(II)) when the job opportunity is covered by 
professional sports league rules or regulations, the wage set forth

[[Page 112 STAT. 2681-655]]

in those rules or regulations shall be considered as not adversely 
affecting the wages of United States workers similarly employed and be 
considered the prevailing wage.''.
     <> (b) Effective Date.--The amendment made 
by subsection (a) applies to prevailing wage computations made--
            (1) for applications filed on or after the date of the 
        enactment of this Act; and
            (2) for applications filed before such date, but only to the 
        extent that the computation is subject to an administrative or 
        judicial determination that is not final as of such date.

SEC. 416. <> IMPROVING COUNT OF H-1B AND H-2B 
            NONIMMIGRANTS.

    (a) Ensuring Accurate Count.--The Attorney General shall take such 
steps as are necessary to maintain an accurate count of the number of 
aliens subject to the numerical limitations of section 214(g)(1) of the 
Immigration and Nationality Act (8 U.S.C. 1184(g)(1)) who are issued 
visas or otherwise provided nonimmigrant status.
    (b) Revision of Petition Forms.--The Attorney General shall take 
such steps as are necessary to revise the forms used for petitions for 
visas or nonimmigrant status under clause (i)(b) or (ii)(b) of section 
101(a)(15)(H) of the Immigration and Nationality Act (8 U.S.C. 
1101(a)(15)(H)) so as to ensure that the forms provide the Attorney 
General with sufficient information to permit the Attorney General 
accurately to count the number of aliens subject to the numerical 
limitations of section 214(g)(1) of such Act (8 U.S.C. 1184(g)(1)) who 
are issued visas or otherwise provided nonimmigrant status.
    (c) Provision of Information.--
            (1) Quarterly notification.--Beginning not later than 60 
        days after the first day of fiscal year 1999, the Attorney 
        General shall notify, on a quarterly basis, the Committees on 
        the Judiciary of the United States House of Representatives and 
        the Senate of the numbers of aliens who were issued visas or 
        otherwise provided nonimmigrant status under section 
        101(a)(15)(H)(i)(b) of the Immigration and Nationality Act 
        during the preceding 3-month period.
            (2) Annual submission.--Beginning with fiscal year 2000, the 
        Attorney General shall submit on an annual basis, to the 
        Committees on the Judiciary of the United States House of 
        Representatives and the Senate, information on the countries of 
        origin and occupations of, educational levels attained by, and 
        compensation paid to, aliens who were issued visas or otherwise 
        provided nonimmigrant status under section 101(a)(15)(H)(i)(b) 
        of the Immigration and Nationality Act during the previous 
        fiscal year. With respect to the first submission under this 
        paragraph, the information shall relate solely to aliens 
        provided nonimmigrant status after the date that is 60 days 
        after the date on which final regulations are issued to carry 
        out section 412(a).
            (3) Specification of number of petitions filed by certain 
        employers.--Each notification under paragraph (1), and each 
        submission under paragraph (2), shall include the number of 
        aliens who were issued visas or otherwise provided nonimmigrant 
        status pursuant to petitions filed by institutions or 
        organizations described in section 212(p)(1) of the Immigration 
        and Nationality Act (as added by section 415 of this title).

[[Page 112 STAT. 2681-656]]

SEC. 417. <> REPORT ON OLDER WORKERS IN THE 
            INFORMATION TECHNOLOGY FIELD.

     <> (a) Study.--The Director of the National 
Science Foundation shall enter into a contract with the President of the 
National Academy of Sciences to conduct a study, using the best 
available data, assessing the status of older workers in the information 
technology field. The study shall consider the following:
            (1) The existence and extent of age discrimination in the 
        information technology workplace.
            (2) The extent to which there is a difference, based on age, 
        in--
                    (A) promotion and advancement;
                    (B) working hours;
                    (C) telecommuting;
                    (D) salary; and
                    (E) stock options, bonuses, and other benefits.
            (3) The relationship between rates of advancement, 
        promotion, and compensation to experience, skill level, 
        education, and age.
            (4) Differences in skill level on the basis of age.

    (b) Report.--Not later than October 1, 2000, the Director of the 
National Science Foundation shall submit to the Committees on the 
Judiciary of the United States House of Representatives and the Senate a 
report containing the results of the study described in subsection (a).

SEC. 418. <> REPORT ON HIGH TECHNOLOGY LABOR 
            MARKET NEEDS; REPORTS ON ECONOMIC IMPACT OF INCREASE IN H-1B 
            NONIMMIGRANTS.

    (a) National Science Foundation Study and Report.--
            (1) In general.--The Director of the National Science 
        Foundation shall conduct a study to assess labor market needs 
        for workers with high technology skills during the next 10 
        years. The study shall investigate and analyze the following:
                    (A) Future training and education needs of companies 
                in the high technology and information technology 
                sectors and future training and education needs of 
                United States students to ensure that students' skills 
                at various levels are matched to the needs in such 
                sectors.
                    (B) An analysis of progress made by educators, 
                employers, and government entities to improve the 
                teaching and educational level of American students in 
                the fields of math, science, computer science, and 
                engineering since 1998.
                    (C) An analysis of the number of United States 
                workers currently or projected to work overseas in 
                professional, technical, and managerial capacities.
                    (D) The relative achievement rates of United States 
                and foreign students in secondary schools in a variety 
                of subjects, including math, science, computer science, 
                English, and history.
                    (E) The relative performance, by subject area, of 
                United States and foreign students in postsecondary and 
                graduate schools as compared to secondary schools.
                    (F) The needs of the high technology sector for 
                foreign workers with specific skills and the potential 
                benefits and costs to United States employers, workers, 
                consumers,

[[Page 112 STAT. 2681-657]]

                postsecondary educational institutions, and the United 
                States economy, from the entry of skilled foreign 
                professionals in the fields of science and engineering.
                    (G) The needs of the high technology sector to adapt 
                products and services for export to particular local 
                markets in foreign countries.
                    (H) An examination of the amount and trend of moving 
                the production or performance of products and services 
                now occurring in the United States abroad.
            (2) Report.--Not later than October 1, 2000, the Director of 
        the National Science Foundation shall submit to the Committees 
        on the Judiciary of the United States House of Representatives 
        and the Senate a report containing the results of the study 
        described in paragraph (1).
            (3) Involvement.--The study under paragraph (1) shall be 
        conducted in a manner that ensures the participation of 
        individuals representing a variety of points of view.

     <> (b) Reporting on Studies Showing 
Economic Impact of H-1B Nonimmigrant Increase.--The Chairman of the 
Board of Governors of the Federal Reserve System, the Director of the 
Office of Management and Budget, the Chair of the Council of Economic 
Advisers, the Secretary of the Treasury, the Secretary of Commerce, the 
Secretary of Labor, and any other member of the Cabinet, shall promptly 
report to the Congress the results of any reliable study that suggests, 
based on legitimate economic analysis, that the increase effected by 
section 411(a) of this title in the number of aliens who may be issued 
visas or otherwise provided nonimmigrant status under section 
101(a)(15)(H)(i)(b) of the Immigration and Nationality Act has had an 
impact on any national economic indicator, such as the level of 
inflation or unemployment, that warrants action by the Congress.

Subtitle B--Special Immigrant Status for Certain NATO Civilian Employees

SEC. 421. SPECIAL IMMIGRANT STATUS FOR CERTAIN NATO CIVILIAN EMPLOYEES.

    (a) In General.--Section 101(a)(27) (8 U.S.C. 1101(a)(27)) is 
amended--
            (1) by striking ``or'' at the end of subparagraph (J);
            (2) by striking the period at the end of subparagraph (K) 
        and inserting ``; or''; and
            (3) by adding at the end the following new subparagraph:
            ``(L) an immigrant who would be described in clause (i), 
        (ii), (iii), or (iv) of subparagraph (I) if any reference in 
        such a clause--
                    ``(i) to an international organization described in 
                paragraph (15)(G)(i) were treated as a reference to the 
                North Atlantic Treaty Organization (NATO);
                    ``(ii) to a nonimmigrant under paragraph (15)(G)(iv) 
                were treated as a reference to a nonimmigrant 
                classifiable under NATO-6 (as a member of a civilian 
                component accompanying a force entering in accordance 
                with the provisions of the NATO Status-of-Forces 
                Agreement, a member of a civilian component attached to 
                or employed by an Allied Headquarters under the 
                `Protocol on the Status of

[[Page 112 STAT. 2681-658]]

                International Military Headquarters' set up pursuant to 
                the North Atlantic Treaty, or as a dependent); and
                    ``(iii) to the Immigration Technical Corrections Act 
                of 1988 or to the Immigration and Nationality Technical 
                Corrections Act of 1994 were a reference to the American 
                Competitiveness and Workforce Improvement Act of 
                1998.''.

    (b) Conforming Nonimmigrant Status for Certain Parents of Special 
Immigrant Children.--Section 101(a)(15)(N) (8 U.S.C. 1101(a)(15)(N)) is 
amended--
            (1) by inserting ``(or under analogous authority under 
        paragraph (27)(L))'' after ``(27)(I)(i)''; and
            (2) by inserting ``(or under analogous authority under 
        paragraph (27)(L))'' after ``(27)(I)''.

                   Subtitle C--Miscellaneous Provision

SEC. 431. ACADEMIC HONORARIA.

    (a) In General.--Section 212 (8 U.S.C. 1182), as amended by section 
415, is further amended by adding at the end the following:
    ``(q) Any alien admitted under section 101(a)(15)(B) may accept an 
honorarium payment and associated incidental expenses for a usual 
academic activity or activities (lasting not longer than 9 days at any 
single institution), as defined by the Attorney General in consultation 
with the Secretary of Education, if such payment is offered by an 
institution or organization described in subsection (p)(1) and is made 
for services conducted for the benefit of that institution or entity and 
if the alien has not accepted such payment or expenses from more than 5 
institutions or organizations in the previous 6-month period.''.
     <> (b) Effective Date.--The amendment made 
by subsection (a) shall apply to activities occurring on or after the 
date of the enactment of this Act.

                  TITLE V--SALTON SEA FEASIBILITY STUDY

    (a) In General.--No later than January 1, 2000, the Secretary of the 
Interior, in accordance with this section, shall complete all 
feasibility studies and cost analyses for the options set forth in 
subsection (b)(2)(A) necessary for Congress to fully evaluate such 
options.
    (b) Feasibility Study.--
            (1) In general.--
                    (A) The Secretary shall complete all studies, 
                including, but not limited to environmental and other 
                reviews, of the feasibility and benefit-cost of various 
                options that permit the continued use of the Salton Sea 
                as a reservoir for irrigation drainage and (1) reduce 
                and stabilize the overall salinity of the Salton Sea, 
                (2) stabilize the surface elevation of the Salton Sea, 
                (3) reclaim, in the long term, healthy fish and wildlife 
                resources and their habitats, and (4) enhance the 
                potential for recreational uses and economic development 
                of the Salton Sea.
                    (B) Based solely on whatever information is 
                available at the time of submission of the report, the 
                Secretary shall (1) identify any options he deems 
                economically feasible and cost effective, (2) identify 
                any additional

[[Page 112 STAT. 2681-659]]

                information necessary to develop construction 
                specifications, and (3) submit any recommendations, 
                along with the results of the study to the Committees no 
                later than January 1, 2000.
                          (i) The Secretary shall carry out the 
                      feasibility study in accordance with a memorandum 
                      of understanding entered into by the Secretary, 
                      the Salton Sea Authority, and the Governor of 
                      California.
                          (ii) The memorandum of understanding shall, at 
                      a minimum, establish criteria for evaluation and 
                      selection of options under subparagraph (2)(A), 
                      including criteria for determining benefits and 
                      the magnitude and practicability of costs of 
                      construction, operation, and maintenance of each 
                      option evaluated.
            (2) Options to be considered.--Options considered in the 
        feasibility study--
                    (A) shall consist of, but need not be limited to--
                          (i) use of impoundments to segregate a portion 
                      of the waters of the Salton Sea in one or more 
                      evaporation ponds located in the Salton Sea basin;
                          (ii) pumping water out of the Salton Sea;
                          (iii) augmented flows of water into the Salton 
                      Sea;
                          (iv) a combination of the options referred to 
                      in clauses (i), (ii), and (iii); and
                          (v) any other economically feasible 
                      remediation option the Secretary considers 
                      appropriate and for which feasibility analyses and 
                      cost estimates can be completed by January 1, 
                      2000;
                    (B) shall be limited to proven technologies; and
                    (C) shall not include any option that--
                          (i) relies on the importation of any new or 
                      additional water from the Colorado River; or
                          (ii) is inconsistent with the provisions of 
                      subsection (c).
            (3) Assumptions.--In evaluating options, the Secretary shall 
        apply assumptions regarding water inflows into the Salton Sea 
        Basin that encourage water conservation, account for transfers 
        of water out of the Salton Sea Basin, and are based on a maximum 
        likely reduction in inflows into the Salton Sea Basin which 
        could be 800,000 acre-feet or less per year.
            (4) Consideration of costs.--In evaluating the feasibility 
        of options, the Secretary shall consider the ability of Federal, 
        tribal, State and local government sources and private sources 
        to fund capital construction costs and annual operation, 
        maintenance, energy, and replacement costs and shall set forth 
        the basis for any cost sharing allocations as well as 
        anticipated repayment, if any, of federal contributions.

    (c) Relationship to Other Law.--
            (1) Reclamation laws.--Activities authorized by this title 
        shall not be subject to the Act of June 17, 1902 (32 Stat. 388; 
        43 U.S.C. 391 et seq.), and Acts amendatory thereof and 
        supplemental thereto. Amounts expended for those activities 
        shall be considered nonreimbursable for purposes of those laws 
        and shall not be considered to be a supplemental or additional 
        benefit for purposes of the Reclamation Reform Act of 1982 (96 
        Stat. 1263; 43 U.S.C. 390aa et seq.).

[[Page 112 STAT. 2681-660]]

            (2) Preservation of rights and obligations with respect to 
        the colorado river.--This Act shall not be considered to 
        supersede or otherwise affect any treaty, law, decree, contract, 
        or agreement governing use of water from the Colorado River. All 
        activities taken under this Act must be carried out in a manner 
        consistent with rights and obligations of persons under those 
        treaties, laws, decrees, contracts, and agreements.

TITLE VI--CHEYENNE RIVER SIOUX TRIBE, LOWER BRULE SIOUX TRIBE, AND STATE 
        OF SOUTH DAKOTA TERRESTRIAL WILDLIFE HABITAT RESTORATION

SEC. 601. DEFINITIONS.

    In this title, the following definitions apply:
            (1) Restoration.--The term ``restoration'' means mitigation 
        of the habitat of wildlife.
            (2) Terrestrial wildlife habitat.--The term ``terrestrial 
        wildlife habitat'' means a habitat for a wildlife species 
        (including game and nongame species) that existed or exists on 
        an upland habitat (including a prairie grassland, woodland, 
        bottom land forest, scrub, or shrub) or an emergent wetland 
        habitat.
            (3) Wildlife.--The term ``wildlife'' has the meaning given 
        the term in section 8 of the Fish and Wildlife Coordination Act 
        (16 U.S.C. 666b).

SEC. 602. TERRESTRIAL WILDLIFE HABITAT RESTORATION.

    (a) Terrestrial Wildlife Habitat Restoration Plans.--
            (1) In general.--In accordance with this subsection and in 
        consultation with the Secretary and the Secretary of the 
        Interior, the State of South Dakota, the Cheyenne River Sioux 
        Tribe, and the Lower Brule Sioux Tribe shall, as a condition of 
        the receipt of funds under this title, each develop a plan for 
        the restoration of terrestrial wildlife habitat loss that 
        occurred as a result of flooding related to the Big Bend and 
        Oahe projects carried out as part of the Pick-Sloan Missouri 
        River Basin program.
            (2) Submission of plan to secretary.--On completion of a 
        plan for terrestrial wildlife habitat restoration, the State of 
        South Dakota, the Cheyenne River Sioux Tribe, and the Lower 
        Brule Sioux Tribe shall submit the plan to the Secretary.
            (3) Review by secretary and submission to committees.--The 
        Secretary shall review the plan and submit the plan, with any 
        comments, to the appropriate committees of the Senate and the 
        House of Representatives.
            (4) Funding for carrying out plans.--
                    (A) State of south dakota.--
                          (i) Notification.--On receipt of the plan for 
                      terrestrial wildlife habitat restoration submitted 
                      by the State of South Dakota, each of the 
                      Committees referred to in paragraph (3) shall 
                      notify the Secretary of the Treasury of the 
                      receipt of the plan.
                          (ii) Availability of funds.--On notification 
                      in accordance with clause (i), the Secretary of 
                      the Treasury shall make available to the State of 
                      South Dakota funds from the South Dakota 
                      Terrestrial Wildlife Habitat Restoration Trust 
                      Fund established under section

[[Page 112 STAT. 2681-661]]

                      803, to be used to carry out the plan for 
                      terrestrial wildlife habitat restoration submitted 
                      by the State and only after the Trust Fund is 
                      fully capitalized.
                    (B) Cheyenne river sioux tribe and lower brule sioux 
                tribe.--
                          (i) Notification.--On receipt of the plan for 
                      terrestrial wildlife habitat restoration submitted 
                      by the Cheyenne River Sioux Tribe and the Lower 
                      Brule Sioux Tribe, each of the Committees referred 
                      to in paragraph (3) shall notify the Secretary of 
                      the Treasury of the receipt of each of the plans.
                          (ii) Availability of funds.--On notification 
                      in accordance with clause (i), the Secretary of 
                      the Treasury shall make available to the Cheyenne 
                      River Sioux Tribe and the Lower Brule Sioux Tribe 
                      funds from the Cheyenne River Sioux Tribe 
                      Terrestrial Wildlife Habitat Restoration Trust 
                      Fund and the Lower Brule Sioux Tribe Terrestrial 
                      Wildlife Habitat Restoration Trust Fund, 
                      respectively, established under section 804, to be 
                      used to carry out the plan for terrestrial 
                      wildlife habitat restoration submitted by the 
                      Cheyenne River Sioux Tribe and the Lower Brule 
                      Sioux Tribe, respectively, and only after the 
                      Trust Fund is fully capitalized.
                    (C) Transition period.--
                          (i) In general.--During the period described 
                      in clause (ii), the Secretary shall--
                                    (I) fund the terrestrial wildlife 
                                habitat restoration programs being 
                                carried out on the date of enactment of 
                                this Act on Oahe and Big Bend project 
                                land and the plans established under 
                                this section at a level that does not 
                                exceed the highest amount of funding 
                                that was provided for the programs 
                                during a previous fiscal year; and
                                    (II) fund the activities described 
                                in sections 803(d)(3) and 804(d)(3).
                          (ii) Period.--Clause (i) shall apply during 
                      the period--
                                    (I) beginning on the date of 
                                enactment of this Act; and
                                    (II) ending on the date on which 
                                funds are made available for use from 
                                the South Dakota Terrestrial Wildlife 
                                Habitat Restoration Trust Fund under 
                                section 803(d)(3)(A)(i) and the Cheyenne 
                                River Sioux Tribe Terrestrial Wildlife 
                                Habitat Restoration Trust Fund and the 
                                Lower Brule Sioux Tribe Terrestrial 
                                Wildlife Habitat Restoration Trust Fund 
                                under section 804(d)(3)(A)(i).

    (b) Programs for the Purchase of Wildlife Habitat Leases.--
            (1) In general.--The State of South Dakota may use funds 
        made available under section 803(d)(3)(A)(iii) to develop a 
        program for the purchase of wildlife habitat leases that meets 
        the requirements of this subsection.
            (2) Development of a plan.--
                    (A) In general.--If the State of South Dakota, the 
                Cheyenne River Sioux Tribe, or the Lower Brule Sioux

[[Page 112 STAT. 2681-662]]

                Tribe elects to conduct a program under this subsection, 
                the State of South Dakota, the Cheyenne River Sioux 
                Tribe, or the Lower Brule Sioux Tribe (in consultation 
                with the United States Fish and Wildlife Service and the 
                Secretary and with an opportunity for public comment) 
                shall develop a plan to lease land for the protection 
                and development of wildlife habitat, including habitat 
                for threatened and endangered species, associated with 
                the Missouri River ecosystem.
                    (B) Use for program.--The plan shall be used by the 
                State of South Dakota, the Cheyenne River Sioux Tribe, 
                or the Lower Brule Sioux Tribe in carrying out the 
                program carried out under paragraph (1).
            (3) Conditions of leases.--Each lease covered under a 
        program carried out under paragraph (1) shall specify that the 
        owner of the property that is subject to the lease shall 
        provide--
                    (A) public access for sportsmen during hunting 
                season; and
                    (B) public access for other outdoor uses covered 
                under the lease, as negotiated by the landowner and the 
                State of South Dakota, the Cheyenne River Sioux Tribe, 
                or the Lower Brule Sioux Tribe.
            (4) Use of assistance.--
                    (A) State of south dakota.--If the State of South 
                Dakota conducts a program under this subsection, the 
                State may use funds made available under section 
                803(d)(3)(A)(iii) to--
                          (i) acquire easements, rights-of-way, or 
                      leases for management and protection of wildlife 
                      habitat, including habitat for threatened and 
                      endangered species, and public access to wildlife 
                      on private property in the State of South Dakota;
                          (ii) create public access to Federal or State 
                      land through the purchase of easements or rights-
                      of-way that traverse such private property; or
                          (iii) lease land for the creation or 
                      restoration of a wetland on such private property.
                    (B) Cheyenne river sioux tribe and lower brule sioux 
                tribe.--If the Cheyenne River Sioux Tribe or the Lower 
                Brule Sioux Tribe conducts a program under this 
                subsection, the Tribe may use funds made available under 
                section 804(d)(3)(A)(iii) for the purposes described in 
                subparagraph (A).

    (c) Federal Obligation for Terrestrial Wildlife Habitat Mitigation 
for the Big Bend and Oahe Projects in South Dakota.--The establishment 
of the trust funds under sections 803 and 804 and the development and 
implementation of plans for terrestrial wildlife habitat restoration 
developed by the State of South Dakota, the Cheyenne River Sioux Tribe, 
and the Lower Brule Sioux Tribe in accordance with this section shall be 
considered to satisfy the Federal obligation under the Fish and Wildlife 
Coordination Act (16 U.S.C. 661 et seq.) for terrestrial wildlife 
habitat mitigation for the State of South Dakota, the Cheyenne River 
Sioux Tribe, and the Lower Brule Sioux Tribe for the Big Bend and Oahe 
projects carried out as part of the Pick-Sloan Missouri River Basin 
program.

[[Page 112 STAT. 2681-663]]

SEC. 603. SOUTH DAKOTA TERRESTRIAL WILDLIFE HABITAT RESTORATION TRUST 
            FUND.

    (a) Establishment.--There is established in the Treasury of the 
United States a fund to be known as the ``South Dakota Terrestrial 
Wildlife Habitat Restoration Trust Fund'' (referred to in this section 
as the ``Fund'').
    (b) Funding.--For the fiscal year during which this Act is enacted 
and each fiscal year thereafter until the aggregate amount deposited in 
the Fund under this subsection is equal to at least $108,000,000, the 
Secretary of the Treasury shall deposit $10,000,000 in the Fund.
    (c) Investments.--The Secretary of the Treasury shall invest the 
amounts deposited under subsection (b) only in interest-bearing 
obligations of the United States or in obligations guaranteed by the 
United States as to both principal and interest.
    (d) Payments.--
            (1) In general.--All amounts credited as interest under 
        subsection (c) shall be available, without fiscal year 
        limitation, to the State of South Dakota for use in accordance 
        with paragraph (3) after the Fund has been fully capitalized.
            (2) Withdrawal and transfer of funds.--Subject to section 
        802(a)(4)(A), the Secretary of the Treasury shall withdraw 
        amounts credited as interest under paragraph (1) and transfer 
        the amounts to the State of South Dakota for use as State funds 
        in accordance with paragraph (3) after the Fund has been fully 
        capitalized.
            (3) Use of transferred funds.--
                    (A) In general.--Subject to subparagraph (B), the 
                State of South Dakota shall use the amounts transferred 
                under paragraph (2) only to--
                          (i) fully fund the annually scheduled work 
                      described in the terrestrial wildlife habitat 
                      restoration plan of the State developed under 
                      section 802(a); and
                          (ii) with any remaining funds--
                                    (I) protect archaeological, 
                                historical, and cultural sites located 
                                along the Missouri River on land 
                                transferred to the State;
                                    (II) fund all costs associated with 
                                the ownership, management, operation, 
                                administration, maintenance, and 
                                development of recreation areas and 
                                other lands that are transferred to the 
                                State of South Dakota by the Secretary;
                                    (III) purchase and administer 
                                wildlife habitat leases under section 
                                802(b);
                                    (IV) carry out other activities 
                                described in section 802; and
                                    (V) develop and maintain public 
                                access to, and protect, wildlife habitat 
                                and recreation areas along the Missouri 
                                River.
                    (B) Prohibition.--The amounts transferred under 
                paragraph (2) shall not be used for the purchase of land 
                in fee title.

    (e) Transfers and Withdrawals.--Except as provided in subsection 
(d), the Secretary of the Treasury may not transfer or withdraw any 
amount deposited under subsection (b).

[[Page 112 STAT. 2681-664]]

    (f) Administrative Expenses.--There are authorized to be 
appropriated to the Secretary of the Treasury such sums as are necessary 
to pay the administrative expenses of the Fund.

SEC. 604. CHEYENNE RIVER SIOUX TRIBE AND LOWER BRULE SIOUX TRIBE 
            TERRESTRIAL WILDLIFE HABITAT RESTORATION TRUST FUNDS.

    (a) Establishment.--There are established in the Treasury of the 
United States 2 funds to be known as the ``Cheyenne River Sioux Tribe 
Terrestrial Wildlife Restoration Trust Fund'' and the ``Lower Brule 
Sioux Tribe Terrestrial Wildlife Habitat Restoration Trust Fund'' (each 
of which is referred to in this section as a ``Fund'').
    (b) Funding.--
            (1) In general.--Subject to paragraph (2), for the fiscal 
        year during which this Act is enacted and each fiscal year 
        thereafter until the aggregate amount deposited in the Funds 
        under this subsection is equal to at least $57,400,000, the 
        Secretary of the Treasury shall deposit $5,000,000 in the Funds.
            (2) Allocation.--Of the total amount of funds deposited into 
        the Funds for a fiscal year, the Secretary of the Treasury shall 
        deposit--
                    (A) 74 percent of the funds into the Cheyenne River 
                Sioux Tribe Terrestrial Wildlife Restoration Trust Fund; 
                and
                    (B) 26 percent of the funds into the Lower Brule 
                Sioux Tribe Terrestrial Wildlife Habitat Restoration 
                Trust Fund.

    (c) Investments.--The Secretary of the Treasury shall invest the 
amounts deposited under subsection (b) only in interest-bearing 
obligations of the United States or in obligations guaranteed as to both 
principal and interest by the United States.
    (d) Payments.--
            (1) In general.--All amounts credited as interest under 
        subsection (c) shall be available after the Trust Funds are 
        fully capitalized, without fiscal year limitation, to the 
        Cheyenne River Sioux Tribe and the Lower Brule Sioux Tribe for 
        their use in accordance with paragraph (3).
            (2) Withdrawal and transfer of funds.--Subject to section 
        802(a)(4)(B), the Secretary of the Treasury shall withdraw 
        amounts credited as interest under paragraph (1) and transfer 
        the amounts to the Cheyenne River Sioux Tribe and the Lower 
        Brule Sioux Tribe for use in accordance with paragraph (3).
            (3) Use of transferred funds.--
                    (A) In general.--Subject to subparagraph (B), the 
                Cheyenne River Sioux Tribe and the Lower Brule Sioux 
                Tribe shall use the amounts transferred under paragraph 
                (2) only to--
                          (i) fully fund the annually scheduled work 
                      described in the terrestrial wildlife habitat 
                      restoration plan of the respective Tribe developed 
                      under section 802(a); and
                          (ii) with any remaining funds--
                                    (I) protect archaeological, 
                                historical, and cultural sites located 
                                along the Missouri River on land 
                                transferred to the respective Tribe;
                                    (II) fund all costs associated with 
                                the ownership, management, operation, 
                                administration,

[[Page 112 STAT. 2681-665]]

                                maintenance, and development of 
                                recreation areas and other lands that 
                                are transferred to the respective Tribe 
                                by the Secretary;
                                    (III) purchase and administer 
                                wildlife habitat leases under section 
                                802(b);
                                    (IV) carry out other activities 
                                described in section 802; and
                                    (V) develop and maintain public 
                                access to, and protect, wildlife habitat 
                                and recreation areas along the Missouri 
                                River.
                    (B) Prohibition.--The amounts transferred under 
                paragraph (2) shall not be used for the purchase of land 
                in fee title.

    (e) Transfers and Withdrawals.--Except as provided in subsection 
(d), the Secretary of the Treasury may not transfer or withdraw any 
amount deposited under subsection (b).
    (f) Administrative Expenses.--There are authorized to be 
appropriated to the Secretary of the Treasury such sums as are necessary 
to pay the administrative expenses of the Fund.

SEC. 605. TRANSFER OF FEDERAL LAND TO STATE OF SOUTH DAKOTA.

    (a) In General.--
            (1) Transfer.--
                    (A) In general.--The Secretary shall transfer to the 
                Department of Game, Fish and Parks of the State of South 
                Dakota (referred to in this section as the 
                ``Department'') the land and recreation areas described 
                in subsections (b) and (c) for fish and wildlife 
                purposes, or public recreation uses, in perpetuity.
                    (B) Permits, rights-of-way, and easements.--All 
                permits, rights-of-way, and easements granted by the 
                Secretary to the Oglala Sioux Tribe for land on the west 
                side of the Missouri River between the Oahe Dam and 
                Highway 14, and all permits, rights-of-way, and 
                easements on any other land administered by the 
                Secretary and used by the Oglala Sioux Rural Water 
                Supply System, are granted to the Oglala Sioux Tribe in 
                perpetuity to be held in trust under section 3(e) of the 
                Mni Wiconi Project Act of 1988 (102 Stat. 2568).
            (2) Uses.--The Department shall maintain and develop the 
        land outside the recreation areas for fish and wildlife purposes 
        in accordance with--
                    (A) fish and wildlife purposes in effect on the date 
                of enactment of this Act; or
                    (B) a plan developed under section 802.
            (3) Corps of engineers.--The transfer shall not interfere 
        with the Corps of Engineers operation of a project under this 
        section for an authorized purpose of the project under the Act 
        of December 22, 1944 (58 Stat. 887, chapter 665; 33 U.S.C. 701-1 
        et seq.), or other applicable law.
            (4) Secretary.--The Secretary shall retain the right to 
        inundate with water the land transferred to the Department under 
        this section or draw down a project reservoir, as necessary to 
        carry out an authorized purpose of a project.

    (b) Land Transferred.--The land described in this subsection is land 
that--

[[Page 112 STAT. 2681-666]]

            (1) is located above the top of the exclusive flood pool of 
        the Oahe, Big Bend, Fort Randall, and Gavin's Point projects of 
        the Pick-Sloan Missouri River Basin program;
            (2) was acquired by the Secretary for the implementation of 
        the Pick-Sloan Missouri River Basin program;
            (3) is located outside the external boundaries of a 
        reservation of an Indian Tribe; and
            (4) is located within the State of South Dakota.

    (c) Recreation Areas Transferred.--A recreation area described in 
this section includes the land and waters within a recreation area 
that--
            (1) the Secretary determines, at the time of the transfer, 
        is a recreation area classified for recreation use by the Corps 
        of Engineers on the date of enactment of this Act;
            (2) is located outside the external boundaries of a 
        reservation of an Indian Tribe;
            (3) is located within the State of South Dakota;
            (4) is not the recreation area known as ``Cottonwood'', 
        ``Training Dike'', or ``Tailwaters''; and
            (5) is located below Gavin's Point Dam in the State of South 
        Dakota in accordance with boundary agreements and reciprocal 
        fishing agreements between the State of South Dakota and the 
        State of Nebraska in effect on the date of enactment of this 
        Act, which agreements shall continue to be honored by the State 
        of South Dakota as the agreements apply to any land or 
        recreation areas transferred under this title to the State of 
        South Dakota below Gavin's Point Dam and on the waters of the 
        Missouri River.

    (d) Map.--
            (1) In general.--The Secretary, in consultation with the 
        Department, shall prepare a map of the land and recreation areas 
        transferred under this section.
            (2) Land.--The map shall identify--
                    (A) land reasonably expected to be required for 
                project purposes during the 20-year period beginning on 
                the date of enactment of this Act; and
                    (B) dams and related structures;
        which shall be retained by the Secretary.
            (3) Availability.--The map shall be on file in the 
        appropriate offices of the Secretary.

    (e) Schedule for Transfer.--
            (1) In general.--Not later than 1 year after the date of 
        enactment of this Act, the Secretary of the Army and the 
        Secretary of the Department shall jointly develop a schedule for 
        transferring the land and recreation areas under this section.
            (2) Transfer deadline.--All land and recreation areas shall 
        be transferred not later than 1 year after the full 
        capitalization of the Trust Fund described in section 803.

    (f) Transfer Conditions.--The land and recreation areas described in 
subsections (b) and (c) shall be transferred in fee title to the 
Department on the following conditions:
            (1) Responsibility for damage.--The Secretary shall not be 
        responsible for any damage to the land caused by flooding, 
        sloughing, erosion, or other changes to the land caused by the 
        operation of any project of the Pick-Sloan Missouri River Basin 
        program (except as otherwise provided by Federal law).

[[Page 112 STAT. 2681-667]]

            (2) Easements, rights-of-way, leases, and cost-sharing 
        agreements.--The Department shall maintain all easements, 
        rights-of-way, leases, and cost-sharing agreements that are in 
        effect as of the date of the transfer.

    (g) Hunting and Fishing.--
            (1) In general.--Nothing in this title affects jurisdiction 
        over the land and water below the exclusive flood pool of the 
        Missouri River within the State of South Dakota, including 
        affected Indian reservations. The State of South Dakota, the 
        Lower Brule Sioux Tribe, and the Cheyenne River Sioux Tribe 
        shall continue in perpetuity to exercise the jurisdiction the 
        State and Tribes possess on the date of enactment of this Act.
            (2) No effect on respective jurisdictions.--The Secretary 
        may not adopt any regulation or otherwise affect the respective 
        jurisdictions of the State of South Dakota, the Lower Brule 
        River Sioux Tribe, or the Cheyenne River Sioux Tribe described 
        in paragraph (1).

    (h) Applicability of Law.--Notwithstanding any other provision of 
this Act, the following provisions of law shall apply to land 
transferred under this section:
            (1) The National Historic Preservation Act (16 U.S.C. 470 et 
        seq.), including sections 106 and 304 of that Act (16 U.S.C. 
        470f, 470w-3).
            (2) The Archaeological Resources Protection Act of 1979 (16 
        U.S.C. 470aa et seq.), including sections 4, 6, 7, and 9 of that 
        Act (16 U.S.C. 470cc, 470ee, 470ff, 470hh).
            (3) The Native American Graves Protection Act and 
        Repatriation Act (25 U.S.C. 3001 et seq.), including subsections 
        (a) and (d) of section 3 of that Act (25 U.S.C. 3003).

SEC. 606. TRANSFER OF CORPS OF ENGINEERS LAND FOR INDIAN TRIBES.

    (a) In General.--
            (1) Transfer.--The Secretary of the Army shall transfer to 
        the Secretary of the Interior the land and recreation areas 
        described in subsections (b) and (c).
            (2) Corps of engineers.--The transfer shall not interfere 
        with the Corps of Engineers operation of a project under this 
        section for an authorized purpose of the project under the Act 
        of December 22, 1944 (58 Stat. 887, chapter 665; 33 U.S.C. 701-1 
        et seq.), or other applicable law.
            (3) Secretary of the army.--The Secretary of the Army shall 
        retain the right to inundate with water the land transferred to 
        the Secretary of the Interior under this section or draw down a 
        project reservoir, as necessary to carry out an authorized 
        purpose of a project.
            (4) Trust.--The Secretary of the Interior shall hold in 
        trust for the Cheyenne River Sioux Tribe and the Lower Brule 
        Sioux Tribe the land transferred under this section that is 
        located within the external boundaries of the reservation of the 
        Indian Tribes.

    (b) Land Transferred.--The land described in this subsection is land 
that--
            (1) is located above the top of the exclusive flood pool of 
        the Big Bend and Oahe projects of the Pick-Sloan Missouri River 
        Basin program;

[[Page 112 STAT. 2681-668]]

            (2) was acquired by the Secretary of the Army for the 
        implementation of the Pick-Sloan Missouri River Basin program; 
        and
            (3) is located within the external boundaries of the 
        reservation of the Cheyenne River Sioux Tribe and the Lower 
        Brule Sioux Tribe.

    (c) Recreation Areas Transferred.--A recreation area described in 
this section includes the land and waters within a recreation area 
that--
            (1) the Secretary determines, at the time of the transfer, 
        is a recreation area classified for recreation use by the Corps 
        of Engineers on the date of enactment of this Act;
            (2) is located within the external boundaries of a 
        reservation of an Indian Tribe; and
            (3) is located within the State of South Dakota.

    (d) Map.--
            (1) In general.--The Secretary, in consultation with the 
        governing bodies of the Cheyenne River Sioux Tribe and the Lower 
        Brule Sioux Tribe, shall prepare a map of the land transferred 
        under this section.
            (2) Land.--The map shall identify--
                    (A) land reasonably expected to be required for 
                project purposes during the 20-year period beginning on 
                the date of enactment of this Act; and
                    (B) dams and related structures;
        which shall be retained by the Secretary.
            (3) Availability.--The map shall be on file in the 
        appropriate offices of the Secretary.

    (e) Schedule for Transfer.--
            (1) In general.--Not later than 1 year after the date of 
        enactment of this Act, the Secretary and the Chairmen of the 
        Cheyenne River Sioux Tribe and the Lower Brule Sioux Tribe shall 
        jointly develop a schedule for transferring the land and 
        recreation areas under this section.
            (2) Transfer deadline.--All land and recreation areas shall 
        be transferred not later than 1 year after the full 
        capitalization of the State and tribal Trust Fund described in 
        section 804.

    (f) Transfer Conditions.--The land and recreation areas described in 
subsections (b) and (c) shall be transferred to, and held in trust by, 
the Secretary of the Interior on the following conditions:
            (1) Responsibility for damage.--The Secretary shall not be 
        responsible for any damage to the land caused by flooding, 
        sloughing, erosion, or other changes to the land caused by the 
        operation of any project of the Pick-Sloan Missouri River Basin 
        program (except as otherwise provided by Federal law).
            (2) Hunting and fishing.--Nothing in this title affects 
        jurisdiction over the land and waters below the exclusive flood 
        pool and within the external boundaries of the Cheyenne River 
        Sioux Tribe and Lower Brule Sioux Tribe reservations. The State 
        of South Dakota, the Lower Brule Sioux Tribe, and the Cheyenne 
        River Sioux Tribe shall continue to exercise, in perpetuity, the 
        jurisdiction they possess on the date of enactment of this Act 
        with regard to those lands and waters. The Secretary may not 
        adopt any regulation or otherwise affect the respective 
        jurisdictions of the State of South Dakota, the

[[Page 112 STAT. 2681-669]]

        Lower Brule River Sioux Tribe, or the Cheyenne River Sioux Tribe 
        described in the preceding sentence. Jurisdiction over the land 
        transferred under this section shall be the same as that over 
        other land held in trust by the Secretary of the Interior on the 
        Cheyenne River Sioux Tribe reservation and the Lower Brule Sioux 
        Tribe reservation.
            (3) Easements, rights-of-way, leases, and cost-sharing 
        agreements.--
                    (A) Maintenance.--The Secretary of the Interior 
                shall maintain all easements, rights-of-way, leases, and 
                cost-sharing agreements that are in effect as of the 
                date of the transfer.
                    (B) Payments to county.--The Secretary of the 
                Interior shall pay any affected county 100 percent of 
                the receipts from the easements, rights-of-way, leases, 
                and cost-sharing agreements described in subparagraph 
                (A).

SEC. 607. ADMINISTRATION.

    (a) In General.--Nothing in this title diminishes or affects--
            (1) any water right of an Indian Tribe;
            (2) any other right of an Indian Tribe, except as 
        specifically provided in another provision of this title;
            (3) any treaty right that is in effect on the date of 
        enactment of this Act;
            (4) any external boundary of an Indian reservation of an 
        Indian Tribe;
            (5) any authority of the State of South Dakota that relates 
        to the protection, regulation, or management of fish, 
        terrestrial wildlife, and cultural and archaeological resources, 
        except as specifically provided in this title; or
            (6) any authority of the Secretary, the Secretary of the 
        Interior, or the head of any other Federal agency under a law in 
        effect on the date of enactment of this Act, including--
                    (A) the National Historic Preservation Act (16 
                U.S.C. 470 et seq.);
                    (B) the Archaeological Resources Protection Act of 
                1979 (16 U.S.C. 470aa et seq.);
                    (C) the Fish and Wildlife Coordination Act (16 
                U.S.C. 661 et seq.);
                    (D) the Act entitled ``An Act for the protection of 
                the bald eagle'', approved June 8, 1940 (16 U.S.C. 668 
                et seq.);
                    (E) the Migratory Bird Treaty Act (16 U.S.C. 703 et 
                seq.);
                    (F) the Endangered Species Act of 1973 (16 U.S.C. 
                1531 et seq.);
                    (G) the Native American Graves Protection and 
                Repatriation Act (25 U.S.C. 3001 et seq.);
                    (H) the Federal Water Pollution Control Act 
                (commonly known as the ``Clean Water Act'') (33 U.S.C. 
                1251 et seq.);
                    (I) the Safe Drinking Water Act (42 U.S.C. 300f et 
                seq.); and
                    (J) the National Environmental Policy Act of 1969 
                (42 U.S.C. 4321 et seq.).

    (b) Federal Liability for Damage.--Nothing in this title relieves 
the Federal Government of liability for damage to private land caused by 
the operation of the Pick-Sloan Missouri River Basin program.

[[Page 112 STAT. 2681-670]]

    (c) Flood Control.--Notwithstanding any other provision of this 
title, the Secretary shall retain the authority to operate the Pick-
Sloan Missouri River Basin program for purposes of meeting the 
requirements of the Act of December 22, 1944 (58 Stat. 887, chapter 665; 
33 U.S.C. 701-1 et seq.).

SEC. 608. STUDY.

    (a) In General.--Not later than 1 year after the date of enactment 
of this Act, the Secretary shall arrange for the United States 
Geological Survey, in consultation with the Bureau of Indian Affairs and 
other appropriate Federal agencies, to conduct a comprehensive study of 
the potential impacts of the transfer of land under sections 805(b) and 
806(b), including potential impacts on South Dakota Sioux Tribes having 
water claims within the Missouri River Basin, on water flows in the 
Missouri River.
    (b) No Transfer Pending Determination.--No transfer of land under 
section 805(b) or 806(b) shall occur until the Secretary determines, 
based on the study, that the transfer of land under either section will 
not significantly reduce the amount of water flow to the downstream 
States of the Missouri River.

SEC. 609. AUTHORIZATION OF APPROPRIATIONS.

    (a) Secretary.--There are authorized to be appropriated to the 
Secretary such sums as are necessary--
            (1) to pay the administrative expenses incurred by the 
        Secretary in carrying out this title; and
            (2) to fund the implementation of terrestrial wildlife 
        habitat restoration plans under section 802(a) and other 
        activities under sections 803(d)(3) and 804(d)(3).

    (b) Secretary of the Interior.--There are authorized to be 
appropriated to the Secretary of the Interior such sums as are necessary 
to pay the administrative expenses incurred by the Secretary of the 
Interior in carrying out this title.

TITLE <> VII--OFFICE OF NATIONAL DRUG CONTROL POLICY REAUTHORIZATION

SEC. <> 701. SHORT TITLE.

    This title may be cited as the ``Office of National Drug Control 
Policy Reauthorization Act of 1998''.

SEC. <> 702. DEFINITIONS.

    In this title:
            (1) Demand reduction.--The term ``demand reduction'' means 
        any activity conducted by a National Drug Control Program 
        agency, other than an enforcement activity, that is intended to 
        reduce the use of drugs, including--
                    (A) drug abuse education;
                    (B) drug abuse prevention;
                    (C) drug abuse treatment;
                    (D) drug abuse research;
                    (E) drug abuse rehabilitation;
                    (F) drug-free workplace programs; and
                    (G) drug testing.
            (2) Director.--The term ``Director'' means the Director of 
        National Drug Control Policy.

[[Page 112 STAT. 2681-671]]

            (3) Drug.--The term ``drug'' has the meaning given the term 
        ``controlled substance'' in section 102(6) of the Controlled 
        Substances Act (21 U.S.C. 802(6)).
            (4) Drug control.--The term ``drug control'' means any 
        activity conducted by a National Drug Control Program agency 
        involving supply reduction or demand reduction.
            (5) Fund.--The term ``Fund'' means the fund established 
        under section 703(d).
            (6) National drug control program.--The term ``National Drug 
        Control Program'' means programs, policies, and activities 
        undertaken by National Drug Control Program agencies pursuant to 
        the responsibilities of such agencies under the National Drug 
        Control Strategy.
            (7) National drug control program agency.--The term 
        ``National Drug Control Program agency'' means any agency that 
        is responsible for implementing any aspect of the National Drug 
        Control Strategy, including any agency that receives Federal 
        funds to implement any aspect of the National Drug Control 
        Strategy, but does not include any agency that receives funds 
        for drug control activity solely under the National Foreign 
        Intelligence Program, the Joint Military Intelligence Program or 
        Tactical Intelligence and Related Activities, unless such agency 
        has been designated--
                    (A) by the President; or
                    (B) jointly by the Director and the head of the 
                agency.
            (8) National drug control strategy.--The term ``National 
        Drug Control Strategy'' means the strategy developed and 
        submitted to Congress under section 706.
            (9) Office.--Unless the context clearly implicates 
        otherwise, the term ``Office'' means the Office of National Drug 
        Control Policy established under section 703(a).
            (10) State and local affairs.--The term ``State and local 
        affairs'' means domestic activities conducted by a National Drug 
        Control Program agency that are intended to reduce the 
        availability and use of drugs, including--
                    (A) coordination and facilitation of Federal, State, 
                and local law enforcement drug control efforts;
                    (B) promotion of coordination and cooperation among 
                the drug supply reduction and demand reduction agencies 
                of the various States, territories, and units of local 
                government; and
                    (C) such other cooperative governmental activities 
                which promote a comprehensive approach to drug control 
                at the national, State, territory, and local levels.
            (11) Supply reduction.--The term ``supply reduction'' means 
        any activity of a program conducted by a National Drug Control 
        Program agency that is intended to reduce the availability or 
        use of drugs in the United States and abroad, including--
                    (A) international drug control;
                    (B) foreign and domestic drug intelligence;
                    (C) interdiction; and
                    (D) domestic drug law enforcement, including law 
                enforcement directed at drug users.

[[Page 112 STAT. 2681-672]]

SEC. 703. <> OFFICE OF NATIONAL DRUG CONTROL POLICY.

    (a) Establishment of Office.--There is established in the Executive 
Office of the President an Office of National Drug Control Policy, which 
shall--
            (1) develop national drug control policy;
            (2) coordinate and oversee the implementation of that 
        national drug control policy;
            (3) assess and certify the adequacy of national drug control 
        programs and the budget for those programs; and
            (4) evaluate the effectiveness of the national drug control 
        programs.

    (b) Director and Deputy Directors.--
            (1) Director.--There shall be at the head of the Office a 
        Director of National Drug Control Policy.
            (2) Deputy director of national drug control policy.--There 
        shall be in the Office a Deputy Director of National Drug 
        Control Policy, who shall assist the Director in carrying out 
        the responsibilities of the Director under this title.
            (3) Other deputy directors.--There shall be in the Office--
                    (A) a Deputy Director for Demand Reduction, who 
                shall be responsible for the activities described in 
                subparagraphs (A) through (G) of section 702(1);
                    (B) a Deputy Director for Supply Reduction, who 
                shall be responsible for the activities described in 
                subparagraphs (A) through (C) of section 702(11); and
                    (C) a Deputy Director for State and Local Affairs, 
                who shall be responsible for the activities described in 
                subparagraphs (A) through (C) of section 702(10) and 
                subparagraph (D) of section 702(11).

    (c) Access by Congress.--The location of the Office in the Executive 
Office of the President shall not be construed as affecting access by 
Congress, or any committee of the House of Representatives or the 
Senate, to any--
            (1) information, document, or study in the possession of, or 
        conducted by or at the direction of the Director; or
            (2) personnel of the Office.

    (d) Office of National Drug Control Policy Gift Fund.--
            (1) Establishment.--There is established in the Treasury of 
        the United States a fund for the receipt of gifts, both real and 
        personal, for the purpose of aiding or facilitating the work of 
        the Office under section 704(c).
            (2) Contributions.--The Office may accept, hold, and 
        administer contributions to the Fund.
            (3) Use of amounts deposited.--Amounts deposited in the Fund 
        are authorized to be appropriated, to remain available until 
        expended for authorized purposes at the discretion of the 
        Director.

SEC. 704. <> APPOINTMENT AND DUTIES OF DIRECTOR AND 
            DEPUTY DIRECTORS.

    (a) Appointment.--
            (1) In general.--The Director, the Deputy Director of 
        National Drug Control Policy, the Deputy Director for Demand 
        Reduction, the Deputy Director for Supply Reduction, and the 
        Deputy Director for State and Local Affairs, shall each be 
        appointed by the President, by and with the advice and consent

[[Page 112 STAT. 2681-673]]

        of the Senate, and shall serve at the pleasure of the President. 
        In appointing the Deputy Director for Demand Reduction under 
        this paragraph, the President shall take into consideration the 
        scientific, educational or professional background of the 
        individual, and whether the individual has experience in the 
        fields of substance abuse prevention, education, or treatment.
            (2) Duties of deputy director of national drug control 
        policy.--The Deputy Director of National Drug Control Policy 
        shall--
                    (A) carry out the duties and powers prescribed by 
                the Director; and
                    (B) serve as the Director in the absence of the 
                Director or during any period in which the office of the 
                Director is vacant.
            (3) Designation of other officers.--In the absence of the 
        Deputy Director, or if the Office of the Deputy Director is 
        vacant, the Director shall designate such other permanent 
        employee of the Office to serve as the Director, if the Director 
        is absent or unable to serve.
            (4) Prohibition.--No person shall serve as Director or a 
        Deputy Director while serving in any other position in the 
        Federal Government.
            (5) Prohibition on political campaigning.--Any officer or 
        employee of the Office who is appointed to that position by the 
        President, by and with the advice and consent of the Senate, may 
        not participate in Federal election campaign activities, except 
        that such official is not prohibited by this paragraph from 
        making contributions to individual candidates.

    (b) Responsibilities.--The Director--
            (1) shall assist the President in the establishment of 
        policies, goals, objectives, and priorities for the National 
        Drug Control Program;
            (2) shall promulgate the National Drug Control Strategy 
        under section 706(a) and each report under section 706(b) in 
        accordance with section 706;
            (3) shall coordinate and oversee the implementation by the 
        National Drug Control Program agencies of the policies, goals, 
        objectives, and priorities established under paragraph (1) and 
        the fulfillment of the responsibilities of such agencies under 
        the National Drug Control Strategy and make recommendations to 
        National Drug Control Program agency heads with respect to 
        implementation of Federal counter-drug programs;
            (4) shall make such recommendations to the President as the 
        Director determines are appropriate regarding changes in the 
        organization, management, and budgets of Federal departments and 
        agencies engaged in drug enforcement, and changes in the 
        allocation of personnel to and within those departments and 
        agencies, to implement the policies, goals, priorities, and 
        objectives established under paragraph (1) and the National Drug 
        Control Strategy;
            (5) shall consult with and assist State and local 
        governments with respect to the formulation and implementation 
        of National Drug Control Policy and their relations with the 
        National Drug Control Program agencies;

[[Page 112 STAT. 2681-674]]

            (6) shall appear before duly constituted committees and 
        subcommittees of the House of Representatives and of the Senate 
        to represent the drug policies of the executive branch;
            (7) shall notify any National Drug Control Program agency if 
        its policies are not in compliance with the responsibilities of 
        the agency under the National Drug Control Strategy, transmit a 
        copy of each such notification to the President, and maintain a 
        copy of each such notification;
            (8) shall provide, by July 1 of each year, budget 
        recommendations, including requests for specific initiatives 
        that are consistent with the priorities of the President under 
        the National Drug Control Strategy, to the heads of departments 
        and agencies with responsibilities under the National Drug 
        Control Program, which recommendations shall--
                    (A) apply to the next budget year scheduled for 
                formulation under the Budget and Accounting Act of 1921, 
                and each of the 4 subsequent fiscal years; and
                    (B) address funding priorities developed in the 
                National Drug Control Strategy;
            (9) may serve as representative of the President in 
        appearing before Congress on all issues relating to the National 
        Drug Control Program;
            (10) shall, in any matter affecting national security 
        interests, work in conjunction with the Assistant to the 
        President for National Security Affairs;
            (11) may serve as spokesperson of the Administration on drug 
        issues;
            (12) shall ensure that no Federal funds appropriated to the 
        Office of National Drug Control Policy shall be expended for any 
        study or contract relating to the legalization (for a medical 
        use or any other use) of a substance listed in schedule I of 
        section 202 of the Controlled Substances Act (21 U.S.C. 812) and 
        take such actions as necessary to oppose any attempt to legalize 
        the use of a substance (in any form) that--
                    (A) is listed in schedule I of section 202 of the 
                Controlled Substances Act (21 U.S.C. 812); and
                    (B) has not been approved for use for medical 
                purposes by the Food and Drug Administration;
            (13) shall require each National Drug Control Program agency 
        to submit to the Director on an annual basis (beginning in 1999) 
        an evaluation of progress by the agency with respect to drug 
        control program goals using the performance measures for the 
        agency developed under section 706(c), including progress with 
        respect to--
                    (A) success in reducing domestic and foreign sources 
                of illegal drugs;
                    (B) success in protecting the borders of the United 
                States (and in particular the Southwestern border of the 
                United States) from penetration by illegal narcotics;
                    (C) success in reducing violent crime associated 
                with drug use in the United States;
                    (D) success in reducing the negative health and 
                social consequences of drug use in the United States; 
                and
                    (E) implementation of drug treatment and prevention 
                programs in the United States and improvements in the 
                adequacy and effectiveness of such programs;

[[Page 112 STAT. 2681-675]]

            (14) shall submit to the Appropriations committees and the 
        authorizing committees of jurisdiction of the House of 
        Representatives and the Senate on an annual basis, not later 
        than 60 days after the date of the last day of the applicable 
        period, a summary of--
                    (A) each of the evaluations received by the Director 
                under paragraph (13); and
                    (B) the progress of each National Drug Control 
                Program agency toward the drug control program goals of 
                the agency using the performance measures for the agency 
                developed under section 706(c); and
            (15) shall ensure that drug prevention and drug treatment 
        research and information is effectively disseminated by National 
        Drug Control Program agencies to State and local governments and 
        nongovernmental entities involved in demand reduction by--
                    (A) encouraging formal consultation between any such 
                agency that conducts or sponsors research, and any such 
                agency that disseminates information in developing 
                research and information product development agendas;
                    (B) encouraging such agencies (as appropriate) to 
                develop and implement dissemination plans that 
                specifically target State and local governments and 
                nongovernmental entities involved in demand reduction; 
                and
                    (C) developing a single interagency clearinghouse 
                for the dissemination of research and information by 
                such agencies to State and local governments and 
                nongovernmental agencies involved in demand reduction.

    (c) National Drug Control Program Budget.--
            (1) Responsibilities of national drug control program 
        agencies.--
                    (A) In general.--For each fiscal year, the head of 
                each department, agency, or program of the Federal 
                Government with responsibilities under the National Drug 
                Control Program Strategy shall transmit to the Director 
                a copy of the proposed drug control budget request of 
                the department, agency, or program at the same time as 
                that budget request is submitted to their superiors (and 
                before submission to the Office of Management and 
                Budget) in the preparation of the budget of the 
                President submitted to Congress under section 1105(a) of 
                title 31, United States Code.
                    (B) Submission of drug control budget requests.--The 
                head of each National Drug Control Program agency shall 
                ensure timely development and submission to the Director 
                of each proposed drug control budget request transmitted 
                pursuant to this paragraph, in such format as may be 
                designated by the Director with the concurrence of the 
                Director of the Office of Management and Budget.
            (2) National drug control program budget proposal.--For each 
        fiscal year, following the transmission of proposed drug control 
        budget requests to the Director under paragraph (1), the 
        Director shall, in consultation with the head of each National 
        Drug Control Program agency--
                    (A) develop a consolidated National Drug Control 
                Program budget proposal designed to implement the 
                National Drug Control Strategy;

[[Page 112 STAT. 2681-676]]

                    (B) submit the consolidated budget proposal to the 
                President; and
                    (C) after submission under subparagraph (B), submit 
                the consolidated budget proposal to Congress.
            (3) Review and certification of budget requests and budget 
        submissions of national drug control program agencies.--
                    (A) In general.--The Director shall review each drug 
                control budget request submitted to the Director under 
                paragraph (1).
                    (B) Review of budget requests.--
                          (i) Inadequate requests.--If the Director 
                      concludes that a budget request submitted under 
                      paragraph (1) is inadequate, in whole or in part, 
                      to implement the objectives of the National Drug 
                      Control Strategy with respect to the department, 
                      agency, or program at issue for the year for which 
                      the request is submitted, the Director shall 
                      submit to the head of the applicable National Drug 
                      Control Program agency a written description of 
                      funding levels and specific initiatives that 
                      would, in the determination of the Director, make 
                      the request adequate to implement those 
                      objectives.
                          (ii) Adequate requests.--If the Director 
                      concludes that a budget request submitted under 
                      paragraph (1) is adequate to implement the 
                      objectives of the National Drug Control Strategy 
                      with respect to the department, agency, or program 
                      at issue for the year for which the request is 
                      submitted, the Director shall submit to the head 
                      of the applicable National Drug Control Program 
                      agency a written statement confirming the adequacy 
                      of the request.
                          (iii) Record.--The Director shall maintain a 
                      record of each description submitted under clause 
                      (i) and each statement submitted under clause 
                      (ii).
                    (C) Agency response.--
                          (i) In general.--The head of a National Drug 
                      Control Program agency that receives a description 
                      under subparagraph (B)(i) shall include the 
                      funding levels and initiatives described by the 
                      Director in the budget submission for that agency 
                      to the Office of Management and Budget.
                          (ii) Impact statement.--The head of a National 
                      Drug Control Program agency that has altered its 
                      budget submission under this subparagraph shall 
                      include as an appendix to the budget submission 
                      for that agency to the Office of Management and 
                      Budget an impact statement that summarizes--
                                    (I) the changes made to the budget 
                                under this subparagraph; and
                                    (II) the impact of those changes on 
                                the ability of that agency to perform 
                                its other responsibilities, including 
                                any impact on specific missions or 
                                programs of the agency.
                          (iii) Congressional notification.--The head of 
                      a National Drug Control Program agency shall 
                      submit a copy of any impact statement under clause 
                      (ii) to the Senate and the House of 
                      Representatives at the

[[Page 112 STAT. 2681-677]]

                      time the budget for that agency is submitted to 
                      Congress under section 1105(a) of title 31, United 
                      States Code.
                    (D) Certification of budget submissions.--
                          (i) In general.--At the time a National Drug 
                      Control Program agency submits its budget request 
                      to the Office of Management and Budget, the head 
                      of the National Drug Control Program agency shall 
                      submit a copy of the budget request to the 
                      Director.
                          (ii) Certification.--The Director--
                                    (I) shall review each budget 
                                submission submitted under clause (i); 
                                and
                                    (II) based on the review under 
                                subclause (I), if the Director concludes 
                                that the budget submission of a National 
                                Drug Control Program agency does not 
                                include the funding levels and 
                                initiatives described under subparagraph 
                                (B)--
                                            (aa) may issue a written 
                                        decertification of that agency's 
                                        budget; and
                                            (bb) in the case of a 
                                        decertification issued under 
                                        item (aa), shall submit to the 
                                        Senate and the House of 
                                        Representatives a copy of--

                                              
                                              
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            (4) Reprogramming and transfer requests.--
                    (A) In general.--No National Drug Control Program 
                agency shall submit to Congress a reprogramming or 
                transfer request with respect to any amount of 
                appropriated funds in an amount exceeding $5,000,000 
                that is included in the National Drug Control Program 
                budget unless the request has been approved by the 
                Director.
                    (B) Appeal.--The head of any National Drug Control 
                Program agency may appeal to the President any 
                disapproval by the Director of a reprogramming or 
                transfer request under this paragraph.

    (d) Powers of the Director.--In carrying out subsection (b), the 
Director may--
            (1) select, appoint, employ, and fix compensation of such 
        officers and employees of the Office as may be necessary to 
        carry out the functions of the Office under this title;
            (2) subject to subsection (e)(3), request the head of a 
        department or agency, or program of the Federal Government to 
        place department, agency, or program personnel who are engaged 
        in drug control activities on temporary detail to another 
        department, agency, or program in order to implement the 
        National Drug Control Strategy, and the head of the department 
        or agency shall comply with such a request;
            (3) use for administrative purposes, on a reimbursable 
        basis, the available services, equipment, personnel, and 
        facilities of Federal, State, and local agencies;
            (4) procure the services of experts and consultants in 
        accordance with section 3109 of title 5, United States Code, 
        relating to appointments in the Federal Service, at rates of

[[Page 112 STAT. 2681-678]]

        compensation for individuals not to exceed the daily equivalent 
        of the rate of pay payable under level IV of the Executive 
        Schedule under section 5311 of title 5, United States Code;
            (5) accept and use gifts and donations of property from 
        Federal, State, and local government agencies, and from the 
        private sector, as authorized in section 703(d);
            (6) use the mails in the same manner as any other department 
        or agency of the executive branch;
            (7) monitor implementation of the National Drug Control 
        Program, including--
                    (A) conducting program and performance audits and 
                evaluations; and
                    (B) requesting assistance from the Inspector General 
                of the relevant agency in such audits and evaluations;
            (8) transfer funds made available to a National Drug Control 
        Program agency for National Drug Control Strategy programs and 
        activities to another account within such agency or to another 
        National Drug Control Program agency for National Drug Control 
        Strategy programs and activities, except that--
                    (A) the authority under this paragraph may be 
                limited in an annual appropriations Act or other 
                provision of Federal law;
                    (B) the Director may exercise the authority under 
                this paragraph only with the concurrence of the head of 
                each affected agency;
                    (C) in the case of an interagency transfer, the 
                total amount of transfers under this paragraph may not 
                exceed 3 percent of the total amount of funds made 
                available for National Drug Control Strategy programs 
                and activities to the agency from which those funds are 
                to be transferred;
                    (D) funds transferred to an agency under this 
                paragraph may only be used to increase the funding for 
                programs or activities have been authorized by Congress; 
                and
                    (E) the Director shall--
                          (i) submit to Congress, including to the 
                      Committees on Appropriations of the Senate and the 
                      House of Representatives, the authorizing 
                      committees for the Office, and any other 
                      applicable committees of jurisdiction, a 
                      reprogramming or transfer request in advance of 
                      any transfer under this paragraph in accordance 
                      with the regulations of the affected agency or 
                      agencies; and
                          (ii) <> annually submit to 
                      Congress a report describing the effect of all 
                      transfers of funds made pursuant to this paragraph 
                      or subsection (c)(4) during the 12-month period 
                      preceding the date on which the report is 
                      submitted;
            (9) issue to the head of a National Drug Control Program 
        agency a fund control notice described in subsection (f) to 
        ensure compliance with the National Drug Control Program 
        Strategy; and
            (10) participate in the drug certification process pursuant 
        to section 490 of the Foreign Assistance Act of 1961 (22 U.S.C. 
        2291j).

    (e) Personnel Detailed to Office.--

[[Page 112 STAT. 2681-679]]

            (1) Evaluations.--Notwithstanding any provision of chapter 
        43 of title 5, United States Code, the Director shall perform 
        the evaluation of the performance of any employee detailed to 
        the Office for purposes of the applicable performance appraisal 
        system established under such chapter for any rating period, or 
        part thereof, that such employee is detailed to such office.
            (2) Compensation.--
                    (A) Bonus payments.--Notwithstanding any other 
                provision of law, the Director may provide periodic 
                bonus payments to any employee detailed to the Office.
                    (B) Restrictions.--An amount paid under this 
                paragraph to an employee for any period--
                          (i) shall not be greater than 20 percent of 
                      the basic pay paid or payable to such employee for 
                      such period; and
                          (ii) shall be in addition to the basic pay of 
                      such employee.
                    (C) Aggregate amount.--The aggregate amount paid 
                during any fiscal year to an employee detailed to the 
                Office as basic pay, awards, bonuses, and other 
                compensation shall not exceed the annual rate payable at 
                the end of such fiscal year for positions at level III 
                of the Executive Schedule.
            (3) Maximum number of detailees.--The maximum number of 
        personnel who may be detailed to another department or agency 
        (including the Office) under subsection (d)(2) during any fiscal 
        year is--
                    (A) for the Department of Defense, 50; and
                    (B) for any other department or agency, 10.

    (f) Fund Control Notices.--
            (1) In general.--A fund control notice may direct that all 
        or part of an amount appropriated to the National Drug Control 
        Program agency account be obligated by--
                    (A) months, fiscal year quarters, or other time 
                periods; and
                    (B) activities, functions, projects, or object 
                classes.
            (2) Unauthorized obligation or expenditure prohibited.--An 
        officer or employee of a National Drug Control Program agency 
        shall not make or authorize an expenditure or obligation 
        contrary to a fund control notice issued by the Director.
            (3) Disciplinary action for violation.--In the case of a 
        violation of paragraph (2) by an officer or employee of a 
        National Drug Control Program agency, the head of the agency, 
        upon the request of and in consultation with the Director, may 
        subject the officer or employee to appropriate administrative 
        discipline, including, when circumstances warrant, suspension 
        from duty without pay or removal from office.

    (g) Inapplicability to Certain Programs.--The provisions of this 
section shall not apply to the National Foreign Intelligence Program, 
the Joint Military Intelligence Program and Tactical Intelligence and 
Related Activities unless the agency that carries out such program is 
designated as a National Drug Control Program agency by the President or 
jointly by the Director and the head of the agency.

[[Page 112 STAT. 2681-680]]

    (h) Construction.--Nothing in this Act shall be construed as 
derogating the authorities and responsibilities of the Director of 
Central Intelligence contained in sections 104 and 504 of the National 
Security Act of 1947 or any other law.

SEC. 705. <> COORDINATION WITH NATIONAL DRUG CONTROL 
            PROGRAM AGENCIES IN DEMAND REDUCTION, SUPPLY REDUCTION, AND 
            STATE AND LOCAL AFFAIRS.

    (a) Access to Information.--
            (1) In general.--Upon the request of the Director, the head 
        of any National Drug Control Program agency shall cooperate with 
        and provide to the Director any statistics, studies, reports, 
        and other information prepared or collected by the agency 
        concerning the responsibilities of the agency under the National 
        Drug Control Strategy that relate to--
                    (A) drug abuse control; or
                    (B) the manner in which amounts made available to 
                that agency for drug control are being used by that 
                agency.
            (2) Protection of intelligence information.--
                    (A) In general.--The authorities conferred on the 
                Office and the Director by this title shall be exercised 
                in a manner consistent with provisions of the National 
                Security Act of 1947 (50 U.S.C. 401 et 
                seq.). <> The Director of Central 
                Intelligence shall prescribe such regulations as may be 
                necessary to protect information provided pursuant to 
                this title regarding intelligence sources and methods.
                    (B) Duties of director.--The Director of Central 
                Intelligence shall, to the maximum extent practicable in 
                accordance with subparagraph (A), render full assistance 
                and support to the Office and the Director.
            (3) Illegal drug cultivation.--The Secretary of Agriculture 
        shall annually submit to the Director an assessment of the 
        acreage of illegal drug cultivation in the United States.

    (b) Certification of Policy Changes to Director.--
            (1) In general.--Subject to paragraph (2), the head of a 
        National Drug Control Program agency shall, unless exigent 
        circumstances require otherwise, notify the Director in writing 
        regarding any proposed change in policies relating to the 
        activities of that agency under the National Drug Control 
        Program prior to implementation of such change. The Director 
        shall promptly review such proposed change and certify to the 
        head of that agency in writing whether such change is consistent 
        with the National Drug Control Strategy.
            (2) Exception.--If prior notice of a proposed change under 
        paragraph (1) is not practicable--
                    (A) <> the head of the National 
                Drug Control Program agency shall notify the Director of 
                the proposed change as soon as practicable; and
                    (B) upon such notification, the Director shall 
                review the change and certify to the head of that agency 
                in writing whether the change is consistent with the 
                National Drug Control Program.

    (c) General Services Administration.--The Administrator of General 
Services shall provide to the Director, in a reimbursable basis, such 
administrative support services as the Director may request.
    (d) Accounting of Funds Expended.--The Director shall--

[[Page 112 STAT. 2681-681]]

            (A) require the National Drug Control Program agencies to 
        submit to the Director not later than February 1 of each year a 
        detailed accounting of all funds expended by the agencies for 
        National Drug Control Program activities during the previous 
        fiscal year, and require such accounting to be authenticated by 
        the Inspector General for each agency prior to submission to the 
        Director; and
            (B) submit to Congress not later than April 1 of each year 
        the information submitted to the Director under subparagraph 
        (A).

SEC. 706. <> DEVELOPMENT, SUBMISSION, 
            IMPLEMENTATION, AND ASSESSMENT OF NATIONAL DRUG CONTROL 
            STRATEGY.

    (a) Timing, Contents, and Process for Development and Submission of 
National Drug Control Strategy.--
            (1) Timing.--Not later than February 1, 1999, the President 
        shall submit to Congress a National Drug Control Strategy, which 
        shall set forth a comprehensive plan, covering a period of not 
        more than 5 years, for reducing drug abuse and the consequences 
        of drug abuse in the United States, by limiting the availability 
        of and reducing the demand for illegal drugs.
            (2) Contents.--
                    (A) In general.--The National Drug Control Strategy 
                submitted under paragraph (1) shall include--
                          (i) comprehensive, research-based, long-range, 
                      quantifiable, goals for reducing drug abuse and 
                      the consequences of drug abuse in the United 
                      States;
                          (ii) annual, quantifiable, and measurable 
                      objectives and specific targets to accomplish 
                      long-term quantifiable goals that the Director 
                      determines may be achieved during each year of the 
                      period beginning on the date on which the National 
                      Drug Control Strategy is submitted;
                          (iii) 5-year projections for program and 
                      budget priorities; and
                          (iv) a review of international, State, local, 
                      and private sector drug control activities to 
                      ensure that the United States pursues well-
                      coordinated and effective drug control at all 
                      levels of government.
                    (B) Classified information.--Any contents of the 
                National Drug Control Strategy that involves information 
                properly classified under criteria established by an 
                Executive order shall be presented to Congress 
                separately from the rest of the National Drug Control 
                Strategy.
            (3) Process for development and submission.--
                    (A) Consultation.--In developing and effectively 
                implementing the National Drug Control Strategy, the 
                Director--
                          (i) shall consult with--
                                    (I) the heads of the National Drug 
                                Control Program agencies;
                                    (II) Congress;
                                    (III) State and local officials;
                                    (IV) private citizens and 
                                organizations with experience and 
                                expertise in demand reduction;
                                    (V) private citizens and 
                                organizations with experience and 
                                expertise in supply reduction; and

[[Page 112 STAT. 2681-682]]

                                    (VI) appropriate representatives of 
                                foreign governments;
                          (ii) with the concurrence of the Attorney 
                      General, may require the El Paso Intelligence 
                      Center to undertake specific tasks or projects to 
                      implement the National Drug Control Strategy; and
                          (iii) with the concurrence of the Director of 
                      Central Intelligence and the Attorney General, may 
                      request that the National Drug Intelligence Center 
                      undertake specific tasks or projects to implement 
                      the National Drug Control Strategy.
                    (B) Inclusion in strategy.--The National Drug 
                Control Strategy under this subsection, and each report 
                submitted under subsection (b), shall include a list of 
                each entity consulted under subparagraph (A)(i).
            (4) Specific targets.--The targets in the National Drug 
        Control Strategy shall include the following:
                    (A) Reduction of unlawful drug use to 3 percent of 
                the population of the United States or less by December 
                31, 2003 (as measured in terms of overall illicit drug 
                use during the past 30 days by the National Household 
                Survey), and achievement of at least 20 percent of such 
                reduction during each of 1999, 2000, 2001, 2002, and 
                2003.
                    (B) Reduction of adolescent unlawful drug use (as 
                measured in terms of illicit drug use during the past 30 
                days by the Monitoring the Future Survey of the 
                University of Michigan or the National PRIDE Survey 
                conducted by the National Parents' Resource Institute 
                for Drug Education) to 3 percent of the adolescent 
                population of the United States or less by December 31, 
                2003, and achievement of at least 20 percent of such 
                reduction during each of 1999, 2000, 2001, 2002, and 
                2003.
                    (C) Reduction of the availability of cocaine, 
                heroin, marijuana, and methamphetamine in the United 
                States by 80 percent by December 31, 2003.
                    (D) Reduction of the respective nationwide average 
                street purity levels for cocaine, heroin, marijuana, and 
                methamphetamine (as estimated by the interagency drug 
                flows assessment led by the Office of National Drug 
                Control Policy, and based on statistics collected by the 
                Drug Enforcement Administration and other National Drug 
                Control Program agencies identified as relevant by the 
                Director) by 60 percent by December 31, 2003, and 
                achievement of at least 20 percent of each such 
                reduction during each of 1999, 2000, 2001, 2002, and 
                2003.
                    (E) Reduction of drug-related crime in the United 
                States by 50 percent by December 31, 2003, and 
                achievement of at least 20 percent of such reduction 
                during each of 1999, 2000, 2001, 2002, and 2003, 
                including--
                          (i) reduction of State and Federal unlawful 
                      drug trafficking and distribution;
                          (ii) reduction of State and Federal crimes 
                      committed by persons under the influence of 
                      unlawful drugs;
                          (iii) reduction of State and Federal crimes 
                      committed for the purpose of obtaining unlawful 
                      drugs or obtaining property that is intended to be 
                      used for the purchase of unlawful drugs; and

[[Page 112 STAT. 2681-683]]

                          (iv) reduction of drug-related emergency room 
                      incidents in the United States (as measured by 
                      data of the Drug Abuse Warning Network on illicit 
                      drug abuse), including incidents involving gunshot 
                      wounds and automobile accidents in which illicit 
                      drugs are identified in the bloodstream of the 
                      victim, by 50 percent by December 31, 2003.
            (5) Further reductions in drug use, availability, and 
        crime.--Following the submission of a National Drug Control 
        Strategy under this section to achieve the specific targets 
        described in paragraph (4), the Director may formulate a 
        strategy for additional reductions in drug use and availability 
        and drug-related crime beyond the 5-year period covered by the 
        National Drug Control Strategy that has been submitted.

    (b) Annual Strategy Report.--
            (1) In general.--Not later than February 1, 1999, and on 
        February 1 of each year thereafter, the President shall submit 
        to Congress a report on the progress in implementing the 
        Strategy under subsection (a), which shall include--
                    (A) an assessment of the Federal effectiveness in 
                achieving the National Drug Control Strategy goals and 
                objectives using the performance measurement system 
                described in subsection (c), including--
                          (i) an assessment of drug use and availability 
                      in the United States; and
                          (ii) an estimate of the effectiveness of 
                      interdiction, treatment, prevention, law 
                      enforcement, and international programs under the 
                      National Drug Control Strategy in effect during 
                      the preceding year, or in effect as of the date on 
                      which the report is submitted;
                    (B) any modifications of the National Drug Control 
                Strategy or the performance measurement system described 
                in subsection (c);
                    (C) an assessment of the manner in which the budget 
                proposal submitted under section 704(c) is intended to 
                implement the National Drug Control Strategy and whether 
                the funding levels contained in such proposal are 
                sufficient to implement such Strategy;
                    (D) measurable data evaluating the success or 
                failure in achieving the annual measurable objectives 
                described in subsection (a)(2)(A)(ii);
                    (E) an assessment of current drug use (including 
                inhalants) and availability, impact of drug use, and 
                treatment availability, which assessment shall include--
                          (i) estimates of drug prevalence and frequency 
                      of use as measured by national, State, and local 
                      surveys of illicit drug use and by other special 
                      studies of--
                                    (I) casual and chronic drug use;
                                    (II) high-risk populations, 
                                including school dropouts, the homeless 
                                and transient, arrestees, parolees, 
                                probationers, and juvenile delinquents; 
                                and
                                    (III) drug use in the workplace and 
                                the productivity lost by such use;
                          (ii) an assessment of the reduction of drug 
                      availability against an ascertained baseline, as 
                      measured by--

[[Page 112 STAT. 2681-684]]

                                    (I) the quantities of cocaine, 
                                heroin, marijuana, methamphetamine, and 
                                other drugs available for consumption in 
                                the United States;
                                    (II) the amount of marijuana, 
                                cocaine, heroin, and precursor chemicals 
                                entering the United States;
                                    (III) the number of hectares of 
                                marijuana, poppy, and coca cultivated 
                                and destroyed domestically and in other 
                                countries;
                                    (IV) the number of metric tons of 
                                marijuana, heroin, cocaine, and 
                                methamphetamine seized;
                                    (V) the number of cocaine and 
                                methamphetamine processing laboratories 
                                destroyed domestically and in other 
                                countries;
                                    (VI) changes in the price and purity 
                                of heroin and cocaine, changes in the 
                                price of methamphetamine, and changes in 
                                tetrahydrocannabinol level of marijuana;
                                    (VII) the amount and type of 
                                controlled substances diverted from 
                                legitimate retail and wholesale sources; 
                                and
                                    (VIII) the effectiveness of Federal 
                                technology programs at improving drug 
                                detection capabilities in interdiction, 
                                and at United States ports of entry;
                          (iii) an assessment of the reduction of the 
                      consequences of drug use and availability, which 
                      shall include estimation of--
                                    (I) the burden drug users placed on 
                                hospital emergency departments in the 
                                United States, such as the quantity of 
                                drug-related services provided;
                                    (II) the annual national health care 
                                costs of drug use, including costs 
                                associated with people becoming infected 
                                with the human immunodeficiency virus 
                                and other infectious diseases as a 
                                result of drug use;
                                    (III) the extent of drug-related 
                                crime and criminal activity; and
                                    (IV) the contribution of drugs to 
                                the underground economy, as measured by 
                                the retail value of drugs sold in the 
                                United States;
                          (iv) a determination of the status of drug 
                      treatment in the United States, by assessing--
                                    (I) public and private treatment 
                                capacity within each State, including 
                                information on the treatment capacity 
                                available in relation to the capacity 
                                actually used;
                                    (II) the extent, within each State, 
                                to which treatment is available;
                                    (III) the number of drug users the 
                                Director estimates could benefit from 
                                treatment; and
                                    (IV) the specific factors that 
                                restrict the availability of treatment 
                                services to those seeking it and 
                                proposed administrative or legislative 
                                remedies to make treatment available to 
                                those individuals; and

[[Page 112 STAT. 2681-685]]

                          (v) a review of the research agenda of the 
                      Counter-Drug Technology Assessment Center to 
                      reduce the availability and abuse of drugs; and
                    (F) an assessment of private sector initiatives and 
                cooperative efforts between the Federal Government and 
                State and local governments for drug control.
            (2) Submission of revised strategy.--The President may 
        submit to Congress a revised National Drug Control Strategy that 
        meets the requirements of this section--
                    (A) at any time, upon a determination by the 
                President, in consultation with the Director, that the 
                National Drug Control Strategy in effect is not 
                sufficiently effective; and
                    (B) if a new President or Director takes office.
            (3) 1999 strategy report.--With respect to the Strategy 
        report required to be submitted by this subsection on February 
        1, 1999, the President shall prepare the report using such 
        information as is available for the period covered by the 
        report.

    (c) Performance Measurement System.--
            (1) Sense of congress.--It is the sense of Congress that--
                    (A) the targets described in subsection (a) are 
                important to the reduction of overall drug use in the 
                United States;
                    (B) the President should seek to achieve those 
                targets during the 5 years covered by the National Drug 
                Control Strategy required to be submitted under 
                subsection (a);
                    (C) the purpose of such targets and the annual 
                reports to Congress on the progress towards achieving 
                the targets is to allow for the annual restructuring of 
                appropriations by the Appropriations Committees and 
                authorizing committees of jurisdiction of Congress to 
                meet the goals described in this Act;
                    (D) the performance measurement system developed by 
                the Director described in this subsection is central to 
                the National Drug Control Program targets, programs, and 
                budget;
                    (E) the Congress strongly endorses the performance 
                measurement system for establishing clear outcomes for 
                reducing drug use nationwide during the next five years, 
                and the linkage of this system to all agency drug 
                control programs and budgets receiving funds scored as 
                drug control agency funding.
            (2) Submission to congress.--Not later than February 1, 
        1999, the Director shall submit to Congress a description of the 
        national drug control performance measurement system, designed 
        in consultation with affected National Drug Control Program 
        agencies, that--
                    (A) develops performance objectives, measures, and 
                targets for each National Drug Control Strategy goal and 
                objective;
                    (B) revises performance objectives, measures, and 
                targets, to conform with National Drug Control Program 
                Agency budgets;
                    (C) identifies major programs and activities of the 
                National Drug Control Program agencies that support the 
                goals and objectives of the National Drug Control 
                Strategy;

[[Page 112 STAT. 2681-686]]

                    (D) evaluates in detail the implementation by each 
                National Drug Control Program agency of program 
                activities supporting the National Drug Control 
                Strategy;
                    (E) monitors consistency between the drug-related 
                goals and objectives of the National Drug Control 
                Program agencies and ensures that drug control agency 
                goals and budgets support and are fully consistent with 
                the National Drug Control Strategy; and
                    (F) coordinates the development and implementation 
                of national drug control data collection and reporting 
                systems to support policy formulation and performance 
                measurement, including an assessment of--
                          (i) the quality of current drug use 
                      measurement instruments and techniques to measure 
                      supply reduction and demand reduction activities;
                          (ii) the adequacy of the coverage of existing 
                      national drug use measurement instruments and 
                      techniques to measure the casual drug user 
                      population and groups that are at risk for drug 
                      use; and
                          (iii) the actions the Director shall take to 
                      correct any deficiencies and limitations 
                      identified pursuant to subparagraphs (A) and (B) 
                      of subsection (b)(4).
            (3) Modifications.--A description of any modifications made 
        during the preceding year to the national drug control 
        performance measurement system described in paragraph (2) shall 
        be included in each report submitted under subsection (b).

SEC. 707. <> HIGH INTENSITY DRUG TRAFFICKING AREAS 
            PROGRAM.

    (a) Establishment.--There is established in the Office a program to 
be known as the High Intensity Drug Trafficking Areas Program.
    (b) Designation.--The Director, upon consultation with the Attorney 
General, the Secretary of the Treasury, heads of the National Drug 
Control Program agencies, and the Governor of each applicable State, may 
designate any specified area of the United States as a high intensity 
drug trafficking area. After making such a designation and in order to 
provide Federal assistance to the area so designated, the Director may--
            (1) obligate such sums as appropriated for the High 
        Intensity Drug Trafficking Areas Program;
            (2) direct the temporary reassignment of Federal personnel 
        to such area, subject to the approval of the head of the 
        department or agency that employs such personnel;
            (3) take any other action authorized under section 704 to 
        provide increased Federal assistance to those areas;
            (4) coordinate activities under this subsection 
        (specifically administrative, recordkeeping, and funds 
        management activities) with State and local officials.

    (c) Factors for Consideration.--In considering whether to designate 
an area under this section as a high intensity drug trafficking area, 
the Director shall consider, in addition to such other criteria as the 
Director considers to be appropriate, the extent to which--
            (1) the area is a center of illegal drug production, 
        manufacturing, importation, or distribution;

[[Page 112 STAT. 2681-687]]

            (2) State and local law enforcement agencies have committed 
        resources to respond to the drug trafficking problem in the 
        area, thereby indicating a determination to respond aggressively 
        to the problem;
            (3) drug-related activities in the area are having a harmful 
        impact in other areas of the country; and
            (4) a significant increase in allocation of Federal 
        resources is necessary to respond adequately to drug-related 
        activities in the area.

    (d) Use of Funds.--The Director shall ensure that no Federal funds 
appropriated for the High Intensity Drug Trafficking Program are 
expended for the establishment or expansion of drug treatment programs.

SEC. 708. <> COUNTER-DRUG TECHNOLOGY ASSESSMENT 
            CENTER.

    (a) Establishment.--There is established within the Office the 
Counter-Drug Technology Assessment Center (referred to in this section 
as the ``Center''). The Center shall operate under the authority of the 
Director of National Drug Control Policy and shall serve as the central 
counter-drug technology research and development organization of the 
United States Government.
    (b) Director of Technology.--There shall be at the head of the 
Center the Director of Technology, who shall be appointed by the 
Director of National Drug Control Policy from among individuals 
qualified and distinguished in the area of science, medicine, 
engineering, or technology.
    (c) Additional Responsibilities of the Director of National Drug 
Control Policy.--
            (1) In general.--The Director, acting through the Director 
        of Technology shall--
                    (A) identify and define the short-, medium-, and 
                long-term scientific and technological needs of Federal, 
                State, and local drug supply reduction agencies, 
                including--
                          (i) advanced surveillance, tracking, and radar 
                      imaging;
                          (ii) electronic support measures;
                          (iii) communications;
                          (iv) data fusion, advanced computer systems, 
                      and artificial intelligence; and
                          (v) chemical, biological, radiological 
                      (including neutron, electron, and graviton), and 
                      other means of detection;
                    (B) identify demand reduction basic and applied 
                research needs and initiatives, in consultation with 
                affected National Drug Control Program agencies, 
                including--
                          (i) improving treatment through 
                      neuroscientific advances;
                          (ii) improving the transfer of biomedical 
                      research to the clinical setting; and
                          (iii) in consultation with the National 
                      Institute on Drug Abuse, and through interagency 
                      agreements or grants, examining addiction and 
                      rehabilitation research and the application of 
                      technology to expanding the effectiveness or 
                      availability of drug treatment;
                    (C) make a priority ranking of such needs identified 
                in subparagraphs (A) and (B) according to fiscal and

[[Page 112 STAT. 2681-688]]

                technological feasibility, as part of a National 
                Counter-Drug Enforcement Research and Development 
                Program;
                    (D) oversee and coordinate counter-drug technology 
                initiatives with related activities of other Federal 
                civilian and military departments;
                    (E) provide support to the development and 
                implementation of the national drug control performance 
                measurement system; and
                    (F) pursuant to the authority of the Director of 
                National Drug Control Policy under section 704, submit 
                requests to Congress for the reprogramming or transfer 
                of funds appropriated for counter-drug technology 
                research and development.
            (2) Limitation on authority.--The authority granted to the 
        Director under this subsection shall not extend to the award of 
        contracts, management of individual projects, or other 
        operational activities.

    (d) Assistance and Support to Office of National Drug Control 
Policy.--The Secretary of Defense and the Secretary of Health and Human 
Services shall, to the maximum extent practicable, render assistance and 
support to the Office and to the Director in the conduct of counter-drug 
technology assessment.

SEC. 709. <> PRESIDENT'S COUNCIL ON COUNTER-
            NARCOTICS.

    (a) Establishment.--There is established a council to be known as 
the President's Council on Counter-Narcotics (referred to in this 
section as the ``Council'').
    (b) Membership.--
            (1) In general.--Subject to paragraph (2), the Council shall 
        be composed of 18 members, of whom--
                    (A) 1 shall be the President, who shall serve as 
                Chairman of the Council;
                    (B) 1 shall be the Vice President;
                    (C) 1 shall be the Secretary of State;
                    (D) 1 shall be the Secretary of the Treasury;
                    (E) 1 shall be the Secretary of Defense;
                    (F) 1 shall be the Attorney General;
                    (G) 1 shall be the Secretary of Transportation;
                    (H) 1 shall be the Secretary of Health and Human 
                Services;
                    (I) 1 shall be the Secretary of Education;
                    (J) 1 shall be the Representative of the United 
                States of America to the United Nations;
                    (K) 1 shall be the Director of the Office of 
                Management and Budget;
                    (L) 1 shall be the Chief of Staff to the President;
                    (M) 1 shall be the Director of the Office, who shall 
                serve as the Executive Director of the Council;
                    (N) 1 shall be the Director of Central Intelligence;
                    (O) 1 shall be the Assistant to the President for 
                National Security Affairs;
                    (P) 1 shall be the Counsel to the President;
                    (Q) 1 shall be the Chairman of the Joint Chiefs of 
                Staff; and
                    (R) 1 shall be the National Security Adviser to the 
                Vice President.

[[Page 112 STAT. 2681-689]]

            (2) Additional members.--The President may, in the 
        discretion of the President, appoint additional members to the 
        Council.

    (c) Functions.--The Council shall advise and assist the President 
in--
            (1) providing direction and oversight for the national drug 
        control strategy, including relating drug control policy to 
        other national security interests and establishing priorities; 
        and
            (2) ensuring coordination among departments and agencies of 
        the Federal Government concerning implementation of the National 
        Drug Control Strategy.

    (d) Administration.--
            (1) In general.--The Council may utilize established or ad 
        hoc committees, task forces, or interagency groups chaired by 
        the Director (or a representative of the Director) in carrying 
        out the functions of the Council under this section.
            (2) Staff.--The staff of the Office, in coordination with 
        the staffs of the Vice President and the Assistant to the 
        President for National Security Affairs, shall act as staff for 
        the Council.
            (3) Cooperation from other agencies.--Each department and 
        agency of the executive branch shall--
                    (A) cooperate with the Council in carrying out the 
                functions of the Council under this section; and
                    (B) provide such assistance, information, and advice 
                as the Council may request, to the extent permitted by 
                law.

SEC. 710. <> PARENTS ADVISORY COUNCIL ON YOUTH DRUG 
            ABUSE.

    (a) In General.--
            (1) Establishment.--There is established a Council to be 
        known as the Parents Advisory Council on Youth Drug Abuse 
        (referred to in this section as the ``Council'').
            (2) Membership.--
                    (A) Composition.--The Council shall be composed of 
                16 members, of whom--
                          (i) 4 shall be appointed by the President, 
                      each of whom shall be a parent or guardian of a 
                      child who is not less than 6 and not more than 18 
                      years of age as of the date on which the 
                      appointment is made;
                          (ii) 4 shall be appointed by the Majority 
                      Leader of the Senate, 3 of whom shall be a parent 
                      or guardian of a child who is not less than 6 and 
                      not more than 18 years of age as of the date on 
                      which the appointment is made;
                          (iii) 2 shall be appointed by the Minority 
                      Leader of the Senate, each of whom shall be a 
                      parent or guardian of a child who is not less than 
                      6 and not more than 18 years of age as of the date 
                      on which the appointment is made;
                          (iv) 4 shall be appointed by the Speaker of 
                      the House of Representatives, 3 of whom shall be a 
                      parent or guardian of a child who is not less than 
                      6 and not more than 18 years of age as of the date 
                      on which the appointment is made; and

[[Page 112 STAT. 2681-690]]

                          (v) 2 shall be appointed by the Minority 
                      Leader of the House of Representatives, each of 
                      whom shall be a parent or guardian of a child who 
                      is not less than 6 and not more than 18 years of 
                      age as of the date on which the appointment is 
                      made.
                    (B) Requirements.--
                          (i) In general.--Each member of the Council 
                      shall be an individual from the private sector 
                      with a demonstrated interest and expertise in 
                      research, education, treatment, or prevention 
                      activities related to youth drug abuse.
                          (ii) Representatives of nonprofit 
                      organizations.--Not less than 1 member appointed 
                      under each of clauses (i) through (v) of paragraph 
                      (2)(A) shall be a representative of a nonprofit 
                      organization focused on involving parents in 
                      antidrug education and prevention.
                    (C) Date.--The appointments of the initial members 
                of the Council shall be made not later than 60 days 
                after the date of enactment of this section.
                    (D) Executive director.--The Director shall appoint 
                the Executive Director of the Council, who shall be an 
                employee of the Office of National Drug Control Policy.
            (3) Period of appointment; vacancies.--
                    (A) Period of appointment.--Each member of the 
                Council shall be appointed for a term of 3 years, except 
                that, of the initial members of the Council--
                          (i) 1 member appointed under each of clauses 
                      (i) through (v) of paragraph (2)(A) shall be 
                      appointed for a term of 1 year; and
                          (ii) 1 member appointed under each of clauses 
                      (i) through (v) of paragraph (2)(A) shall be 
                      appointed for a term of 2 years.
                    (B) Vacancies.--Any vacancy in the Council shall not 
                affect its powers, provided that a quorum is present, 
                but shall be filled in the same manner as the original 
                appointment. Any member appointed to fill a vacancy 
                occurring before the expiration of the term for which 
                the member's predecessor was appointed shall be 
                appointed only for the remainder of that term.
                    (C) Appointment of successor.--To the extent 
                necessary to prevent a vacancy in the membership of the 
                Council, a member of the Council may serve for not more 
                than 6 months after the expiration of the term of that 
                member, if the successor of that member has not been 
                appointed.
            (4) Initial meeting.--Not later than 120 days after the date 
        on which all initial members of the Council have been appointed, 
        the Council shall hold its first meeting.
            (5) Meetings.--The Council shall meet at the call of the 
        Chairperson.
            (6) Quorum.--Nine members of the Council shall constitute a 
        quorum, but a lesser number of members may hold hearings.
            (7) Chairperson and vice chairperson.--
                    (A) In general.--The members of the Council shall 
                select a Chairperson and Vice Chairperson from among the 
                members of the Council.

[[Page 112 STAT. 2681-691]]

                    (B) Duties of chairperson.--The Chairperson of the 
                Council shall assign committee duties relating to the 
                Council and direct the Executive Director to convene 
                hearings and conduct other necessary business of the 
                Council.
                    (C) Duties of vice chairperson.--If the Chairperson 
                of the Council is unable to serve, the Vice Chairperson 
                shall serve as the Chairperson.

    (b) Duties of the Council.--
            (1) In general.--The Council--
                    (A) shall advise the Director on drug prevention, 
                education, and treatment and assist the Deputy Director 
                of Demand Reduction in the responsibilities for the 
                coordination of the demand reduction programs of the 
                Federal Government and the analysis and consideration of 
                prevention and treatment alternatives; and
                    (B) may issue reports and recommendations on drug 
                prevention, education, and treatment, in addition to the 
                reports detailed in paragraph (2), as the Council 
                considers appropriate.
            (2) Submission of reports.--Any report or recommendation 
        issued by the Council shall be submitted to the Director and 
        subsequently to Congress.
            (3) Advice on the national drug control strategy.--Not later 
        than December 1, 1999, and on December 1 of each year 
        thereafter, the Council shall submit to the Director an annual 
        report containing drug control strategy recommendations on drug 
        prevention, education, and treatment. The Director may include 
        any recommendations submitted under this paragraph in the report 
        submitted by the Director under section 706(b).

    (c) Expenses.--The members of the Council shall be allowed travel 
expenses, including per diem in lieu of subsistence, at rates authorized 
for employees of agencies under subchapter I of chapter 57 of title 5, 
United States Code, while away from their homes or regular places of 
business in the performance of services for the Council.
    (d) Authorization of Appropriations.--There are authorized to be 
appropriated to the Council such sums as may be necessary carry out this 
section.

SEC. 711. <> DRUG INTERDICTION.

    (a) Definition.--In this section, the term ``Federal drug control 
agency'' means--
            (1) the Office of National Drug Control Policy;
            (2) the Department of Defense;
            (3) the Drug Enforcement Administration;
            (4) the Federal Bureau of Investigation;
            (5) the Immigration and Naturalization Service;
            (6) the United States Coast Guard;
            (7) the United States Customs Service; and
            (8) any other department or agency of the Federal Government 
        that the Director determines to be relevant.

    (b) Report.--In order to assist Congress in determining the 
personnel, equipment, funding, and other resources that would be 
required by Federal drug control agencies in order to achieve a level of 
interdiction success at or above the highest level achieved before the 
date of enactment of this title, not later than 90 days

[[Page 112 STAT. 2681-692]]

after the date of enactment of this Act, the Director shall submit to 
Congress and to each Federal drug control program agency a report, which 
shall include--
            (1) with respect to the southern and western border regions 
        of the United States (including the Pacific coast, the border 
        with Mexico, the Gulf of Mexico coast, and other ports of entry) 
        and in overall totals, data relating to--
                    (A) the amount of marijuana, heroin, 
                methamphetamine, and cocaine--
                          (i) seized during the year of highest recorded 
                      seizures for each drug in each region and during 
                      the year of highest recorded overall seizures; and
                          (ii) disrupted during the year of highest 
                      recorded disruptions for each drug in each region 
                      and during the year of highest recorded overall 
                      seizures; and
                    (B) the number of persons arrested for violations of 
                section 1010(a) of the Controlled Substances Import and 
                Export Act (21 U.S.C. 960(a)) and related offenses 
                during the year of the highest number of arrests on 
                record for each region and during the year of highest 
                recorded overall arrests;
            (2) the price of cocaine, heroin, methamphetamine, and 
        marijuana during the year of highest price on record during the 
        preceding 10-year period, adjusted for purity where possible; 
        and
            (3) a description of the personnel, equipment, funding, and 
        other resources of the Federal drug control agency devoted to 
        drug interdiction and securing the borders of the United States 
        against drug trafficking for each of the years identified in 
        paragraphs (1) and (2) for each Federal drug control agency.

    (c) Budget Process.--
            (1) Information to director.--Based on the report submitted 
        under subsection (b), each Federal drug control agency shall 
        submit to the Director, at the same time as each annual drug 
        control budget request is submitted by the Federal drug control 
        agency to the Director under section 704(c)(1), a description of 
        the specific personnel, equipment, funding, and other resources 
        that would be required for the Federal drug control agency to 
        meet or exceed the highest level of interdiction success for 
        that agency identified in the report submitted under subsection 
        (b).
            (2) Information to congress.--The Director shall include 
        each submission under paragraph (1) in each annual consolidated 
        National Drug Control Program budget proposal submitted by the 
        Director to Congress under section 704(c)(2), which submission 
        shall be accompanied by a description of any additional 
        resources that would be required by the Federal drug control 
        agencies to meet the highest level of interdiction success 
        identified in the report submitted under subsection (b).

SEC. 712. ESTABLISHMENT OF SPECIAL FORFEITURE FUND.

    Section 6073 of the Asset Forfeiture Amendments Act of 1988 (21 
U.S.C. 1509) is amended--
            (1) in subsection (b)--
                    (A) by striking ``section 524(c)(9)'' and inserting 
                ``section 524(c)(8)''; and

[[Page 112 STAT. 2681-693]]

                    (B) by striking ``section 9307(g)'' and inserting 
                ``section 9703(g)''; and
            (2) in subsection (e), by striking ``strategy'' and 
        inserting ``Strategy''.

SEC. 713. TECHNICAL AND CONFORMING AMENDMENTS.

    (a) Title 5, United States Code.--Chapter 53 of title 5, United 
States Code, is amended--
            (1) in section 5312, by adding at the end the following:
            ``Director of National Drug Control Policy.'';
            (2) in section 5313, by adding at the end the following:
            ``Deputy Director of National Drug Control Policy.''; and
            (3) in section 5314, by adding at the end the following:
            ``Deputy Director for Demand Reduction, Office of National 
        Drug Control Policy.
            ``Deputy Director for Supply Reduction, Office of National 
        Drug Control Policy.
            ``Deputy Director for State and Local Affairs, Office of 
        National Drug Control Policy.''.

    (b) National Security Act of 1947.--Section 101 of the National 
Security Act of 1947 (50 U.S.C. 402) is amended by redesignating 
subsection (f) as subsection (g) and inserting after subsection (e) the 
following:
    ``(f) The Director of National Drug Control Policy may, in the role 
of the Director as principal adviser to the National Security Council on 
national drug control policy, and subject to the direction of the 
President, attend and participate in meetings of the National Security 
Council.''.
    (c) Submission of National Drug Control Program Budget With Annual 
Budget Request of President.--Section 1105(a) of title 31, United States 
Code, is amended by inserting after paragraph (25) the following:
            ``(26) a separate statement of the amount of appropriations 
        requested for the Office of National Drug Control Policy and 
        each program of the National Drug Control Program.''.

SEC. 714. <> AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to carry out this title, to 
remain available until expended, such sums as may be necessary for each 
of fiscal years 1999 through 2003.

SEC. 715. <> TERMINATION OF OFFICE OF NATIONAL DRUG 
            CONTROL POLICY.

    (a) In General.--Except as provided in subsection (b), effective on 
September 30, 2003, this title and the amendments made by this title are 
repealed.
    (b) Exception.--Subsection (a) does not apply to section 713 or the 
amendments made by that section.

   TITLE <> VIII--WESTERN HEMISPHERE DRUG ELIMINATION

SEC. 801. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This title may be cited as the ``Western 
Hemisphere Drug Elimination Act''.
    (b) Table of Contents.--The table of contents for this title is as 
follows:

Sec. 801. Short title; table of contents.
Sec. 802. Findings and statement of policy.

[[Page 112 STAT. 2681-694]]

        Subtitle A--Enhanced Source and Transit Country Coverage

Sec. 811. Expansion of radar coverage and operation in source and 
           transit countries.
Sec. 812. Expansion of Coast Guard drug interdiction.
Sec. 813. Expansion of aircraft coverage and operation in source and 
           transit countries.

  Subtitle B--Enhanced Eradication and Interdiction Strategy in Source 
                                Countries

Sec. 821. Additional eradication resources for Colombia.
Sec. 822. Additional eradication resources for Peru.
Sec. 823. Additional eradication resources for Bolivia.
Sec. 824. Miscellaneous additional eradication resources.
Sec. 825. Bureau of International Narcotics and Law Enforcement Affairs.

Subtitle C--Enhanced Alternative Crop Development Support in Source Zone

Sec. 831. Alternative crop development support.
Sec. 832. Authorization of appropriations for Agricultural Research 
           Service counterdrug research and development activities.
Sec. 833. Master plan for herbicides to control narcotic crops.
Sec. 834. Authorization of use of environmentally-approved herbicides to 
           eliminate illicit narcotics crops.

       Subtitle D--Enhanced International Law Enforcement Training

Sec. 841. Enhanced international law enforcement academy training.
Sec. 842. Enhanced United States drug enforcement international 
           training.
Sec. 843. Provision of nonlethal equipment to foreign law enforcement 
           organizations for cooperative illicit narcotics control 
           activities.

   Subtitle E--Enhanced Drug Transit and Source Zone Law Enforcement 
                        Operations and Equipment

Sec. 851. Increased funding for operations and equipment; report.
Sec. 852. Funding for computer software and hardware to facilitate 
           direct communication between drug enforcement agencies.
Sec. 853. Sense of Congress regarding priority of drug interdiction and 
           counterdrug activities.

                 Subtitle F--Relationship to Other Laws

Sec. 861. Authorizations of appropriations.

            Subtitle G--Trafficking in Controlled Substances

Sec. 871. Short title.
Sec. 872. Limitation.

SEC. 802. FINDINGS AND STATEMENT OF POLICY.

    (a) Findings.--Congress makes the following findings:
            (1) Teenage drug use in the United States has doubled since 
        1993.
            (2) The drug crisis facing the United States is a top 
        national security threat.
            (3) The spread of illicit drugs through United States 
        borders cannot be halted without an effective drug interdiction 
        strategy.
            (4) Effective drug interdiction efforts have been shown to 
        limit the availability of illicit narcotics, drive up the street 
        price, support demand reduction efforts, and decrease overall 
        drug trafficking and use.
            (5) A prerequisite for reducing youth drug use is increasing 
        the price of drugs. To increase price substantially, at least 60 
        percent of drugs must be interdicted.
            (6) In 1987, the national drug control budget maintained a 
        significant balance between demand and supply reduction efforts, 
        illustrated as follows:
                    (A) 29 percent of the total drug control budget 
                expenditures for demand reduction programs.

[[Page 112 STAT. 2681-695]]

                    (B) 38 percent of the total drug control budget 
                expenditures for domestic law enforcement.
                    (C) 33 percent of the total drug control budget 
                expenditures for international drug interdiction 
                efforts.
            (7) In the late 1980's and early 1990's, counternarcotic 
        efforts were successful, specifically in protecting the borders 
        of the United States from penetration by illegal narcotics 
        through increased seizures by the United States Coast Guard and 
        other agencies, including a 302 percent increase in pounds of 
        cocaine seized between 1987 and 1991.
            (8) Limiting the availability of narcotics to drug 
        traffickers in the United States had a promising effect as 
        illustrated by the decline of illicit drug use between 1988 and 
        1991, through a--
                    (A) 13 percent reduction in total drug use;
                    (B) 35 percent drop in cocaine use; and
                    (C) 16 percent decrease in marijuana use.
            (9) In 1993, drug interdiction efforts in the transit zones 
        were reduced due to an imbalance in the national drug control 
        strategy. This trend has continued through 1995 as shown by the 
        following figures:
                    (A) 35 percent for demand reduction programs.
                    (B) 53 percent for domestic law enforcement.
                    (C) 12 percent for international drug interdiction 
                efforts.
            (10) Supply reduction efforts became a lower priority for 
        the Administration and the seizures by the United States Coast 
        Guard and other agencies decreased as shown by a 68 percent 
        decrease in the pounds of cocaine seized between 1991 and 1996.
            (11) Reductions in funding for comprehensive interdiction 
        operations like OPERATION GATEWAY and OPERATION STEELWEB, 
        initiatives that encompassed all areas of interdiction and 
        attempted to disrupt the operating methods of drug smugglers 
        along the entire United States border, have created unprotected 
        United States border areas which smugglers exploit to move their 
        product into the United States.
            (12) The result of this new imbalance in the national drug 
        control strategy caused the drug situation in the United States 
        to become a crisis with serious consequences including--
                    (A) doubling of drug-abuse-related arrests for 
                minors between 1992 and 1996;
                    (B) 70 percent increase in overall drug use among 
                children aged 12 to 17;
                    (C) 80 percent increase in drug use for graduating 
                seniors since 1992;
                    (D) a sharp drop in the price of 1 pure gram of 
                heroin from $1,647 in 1992 to $966 in February 1996; and
                    (E) a reduction in the street price of 1 gram of 
                cocaine from $123 to $104 between 1993 and 1994.
            (13) The percentage change in drug use since 1992, among 
        graduating high school students who used drugs in the past 12 
        months, has substantially increased--marijuana use is up 80 
        percent, cocaine use is up 80 percent, and heroin use is up 100 
        percent.
            (14) The Department of Defense has been called upon to 
        support counter-drug efforts of Federal law enforcement

[[Page 112 STAT. 2681-696]]

        agencies that are carried out in source countries and through 
        transit zone interdiction, but in recent years Department of 
        Defense assets critical to those counter-drug activities have 
        been consistently diverted to missions that the Secretary of 
        Defense and the Chairman of the Joint Chiefs of Staff consider a 
        higher priority.
            (15) The Secretary of Defense and the Chairman of the Joint 
        Chiefs of Staff, through the Department of Defense policy 
        referred to as the Global Military Force Policy, has established 
        the priorities for the allocation of military assets in the 
        following order: (1) war; (2) military operations other than war 
        that might involve contact with hostile forces (such as 
        peacekeeping operations and noncombatant evacuations); (3) 
        exercises and training; and (4) operational tasking other than 
        those involving hostilities (including counter-drug activities 
        and humanitarian assistance).
            (16) Use of Department of Defense assets is critical to the 
        success of efforts to stem the flow of illegal drugs from source 
        countries and through transit zones to the United States.
            (17) The placement of counter-drug activities in the fourth 
        and last priority of the Global Military Force Policy list of 
        priorities for the allocation of military assets has resulted in 
        a serious deficiency in assets vital to the success of source 
        country and transit zone efforts to stop the flow of illegal 
        drugs into the United States.
            (18) At present the United States faces few, if any, threats 
        from abroad greater than the threat posed to the Nation's youth 
        by illegal and dangerous drugs.
            (19) The conduct of counter-drug activities has the 
        potential for contact with hostile forces.
            (20) The Department of Defense counter-drug activities 
        mission should be near the top, not among the last, of the 
        priorities for the allocation of Department of Defense assets 
        after the first priority for those assets for the war-fighting 
        mission of the Department of Defense.

    (b) Statement of Policy.--It is the policy of the United States to--
            (1) reduce the supply of drugs and drug use through an 
        enhanced drug interdiction effort in the major drug transit 
        countries, as well support a comprehensive supply country 
        eradication and crop substitution program, because a commitment 
        of increased resources in international drug interdiction 
        efforts will create a balanced national drug control strategy 
        among demand reduction, law enforcement, and international drug 
        interdiction efforts; and
            (2) develop and establish comprehensive drug interdiction 
        and drug eradication strategies, and dedicate the required 
        resources, to achieve the goal of reducing the flow of illegal 
        drugs into the United States by 80 percent by as early as 
        January 1, 2003.

        Subtitle A--Enhanced Source and Transit Country Coverage

SEC. 811. EXPANSION OF RADAR COVERAGE AND OPERATION IN SOURCE AND 
            TRANSIT COUNTRIES.

    (a) Authorization of Appropriations.--Funds are authorized to be 
appropriated for the Department of the Treasury for fiscal

[[Page 112 STAT. 2681-697]]

years 1999, 2000, and 2001 for the enhancement of radar coverage in drug 
source and transit countries in the total amount of $14,300,000 which 
shall be available for the following purposes:
            (1) For restoration of radar, and operation and maintenance 
        of radar, in the Bahamas.
            (2) For operation and maintenance of ground-based radar at 
        Guantanamo Bay Naval Base, Cuba.

    (b) Report.--Not later than January 31, 1999, the Secretary of 
Defense, in conjunction with the Director of Central Intelligence, shall 
submit to the Committee on National Security, the Committee on 
International Relations, and the Permanent Select Committee on 
Intelligence of the House of Representatives and the Committee on Armed 
Services, the Committee on Foreign Relations, and the Select Committee 
on Intelligence of the Senate a report examining the options available 
to the United States for improving Relocatable Over the Horizon (ROTHR) 
capability to provide enhanced radar coverage of narcotics source zone 
countries in South America and transit zones in the Eastern Pacific. The 
report shall include--
            (1) a discussion of the need and costs associated with the 
        establishment of a proposed fourth ROTHR site located in the 
        source or transit zones; and
            (2) an assessment of the intelligence specific issues raised 
        if such a ROTHR facility were to be established in conjunction 
        with a foreign government.

SEC. 812. EXPANSION OF COAST GUARD DRUG INTERDICTION.

    (a) Operating Expenses.--For operating expenses of the Coast Guard 
associated with expansion of drug interdiction activities around Puerto 
Rico, the United States Virgin Islands, and other transit zone areas of 
operation, there is authorized to be appropriated to the Secretary of 
Transportation $151,500,000 for each of fiscal years 1999, 2000, and 
2001. Such amounts shall include (but are not limited to) amounts for 
the following:
            (1) For deployment of intelligent acoustic detection buoys 
        in the Florida Straits and Bahamas.
            (2) For a nonlethal technology program to enhance 
        countermeasures against the threat of transportation of drugs by 
        so-called Go-Fast boats.

    (b) Acquisition, Construction, and Improvement.--
            (1) In general.--For acquisition, construction, and 
        improvement of facilities and equipment to be used for expansion 
        of Coast Guard drug interdiction activities, there is authorized 
        to be appropriated to the Secretary of Transportation for fiscal 
        year 1999 the total amount of $630,300,000 which shall be 
        available for the following purposes:
                    (A) For maritime patrol aircraft sensors.
                    (B) For acquisition of deployable pursuit boats.
                    (C) For the acquisition and construction of up to 15 
                United States Coast Guard Coastal Patrol Boats.
                    (D) For--
                          (i) the reactivation of up to 3 United States 
                      Coast Guard HU-25 Falcon jets;
                          (ii) the procurement of up to 3 C-37A 
                      aircraft; or
                          (iii) the procurement of up to 3 C-20H 
                      aircraft.

[[Page 112 STAT. 2681-698]]

                    (E) For acquisition of installed or deployable 
                electronic sensors and communications systems for Coast 
                Guard Cutters.
                    (F) For acquisition and construction of facilities 
                and equipment to support regional and international law 
                enforcement training and support in Puerto Rico, the 
                United States Virgin Islands, and the Caribbean Basin.
                    (G) For acquisition or conversion of maritime patrol 
                aircraft.
                    (H) For acquisition or conversion of up to 2 vessels 
                to be used as Coast Guard Medium or High Endurance 
                Cutters.
                    (I) For acquisition or conversion of up to 2 vessels 
                to be used as Coast Guard Cutters as support, command, 
                and control platforms for drug interdiction operations.
                    (J) For acquisition of up to 6 Coast Guard Medium 
                Endurance Cutters.
            (2) Continued availability.--Amounts appropriated under this 
        subsection may remain available until expended.

    (c) Requirement To Accept Patrol Craft From Department of Defense.--
The Secretary of Transportation shall accept, for use by the Coast Guard 
for expanded drug interdiction activities, 7 PC-170 patrol craft if 
offered by the Department of Defense.

SEC. 813. EXPANSION OF AIRCRAFT COVERAGE AND OPERATION IN SOURCE AND 
            TRANSIT COUNTRIES.

    (a) Department of the Treasury.--Funds are authorized to be 
appropriated for the Department of the Treasury for fiscal years 1999, 
2000, and 2001 for the enhancement of air coverage and operation for 
drug source and transit countries in the total amount of $886,500,000 
which shall be available for the following purposes:
            (1) For procurement of 10 P-3B Early Warning aircraft for 
        the United States Customs Service to enhance overhead air 
        coverage of drug source zone countries.
            (2) For the procurement and deployment of 10 P-3B Slick 
        airplanes for the United States Customs Service to enhance 
        overhead air coverage of the drug source zone.
            (3) In fiscal years 2000 and 2001, for operation and 
        maintenance of 10 P-3B Early Warning aircraft for the United 
        States Customs Service to enhance overhead air coverage of drug 
        source zone countries.
            (4) For personnel for the 10 P-3B Early Warning aircraft for 
        the United States Customs Service to enhance overhead air 
        coverage of drug source zone countries.
            (5) In fiscal years 2000 and 2001, for operation and 
        maintenance of 10 P-3B Slick airplanes for the United States 
        Customs Service to enhance overhead coverage of the drug source 
        zone.
            (6) For personnel for the 10 P-3B Slick airplanes for the 
        United States Customs Service to enhance overhead air coverage 
        of drug source zone countries.
            (7) For construction and furnishing of an additional 
        facility for the P-3B aircraft.
            (8) For operation and maintenance for overhead air coverage 
        for source countries.
            (9) For operation and maintenance for overhead coverage for 
        the Caribbean and Eastern Pacific regions.

[[Page 112 STAT. 2681-699]]

            (10) For purchase and for operation and maintenance of 3 RU-
        38A observation aircraft (to be piloted by pilots under contract 
        with the United States).

    (b) Report.--Not later than January 31, 1999, the Secretary of 
Defense, in consultation with the Secretary of State and the Director of 
Central Intelligence, shall submit to the Committee on National 
Security, the Committee on International Relations, and the Permanent 
Select Committee on Intelligence of the House of Representatives and to 
the Committee on Armed Services, the Committee on Foreign Relations, and 
the Select Committee on Intelligence of the Senate a report examining 
the options available in the source and transit zones to replace Howard 
Air Force Base in Panama and specifying the requirements of the United 
States to establish an airbase or airbases for use in support of 
counternarcotics operations to optimize operational effectiveness in the 
source and transit zones. The report shall identify the following:
            (1) The specific requirements necessary to support the 
        national drug control policy of the United States.
            (2) The estimated construction, operation, and maintenance 
        costs for a replacement counterdrug airbase or airbases in the 
        source and transit zones.
            (3) Possible interagency cost sharing arrangements for a 
        replacement airbase or airbases.
            (4) Any legal or treaty-related issues regarding the 
        replacement airbase or airbases.
            (5) A summary of completed alternative site surveys for the 
        airbase or airbases.

    (c) Transfer of Aircraft.--The Secretary of the Navy shall transfer 
to the United States Customs Service--
            (1) ten currently retired and previously identified 
        heavyweight P-3B aircraft for modification into P-3 AEW&C 
        aircraft; and
            (2) ten currently retired and previously identified 
        heavyweight P-3B aircraft for modification into P-3 Slick 
        aircraft.

  Subtitle B--Enhanced Eradication and Interdiction Strategy in Source 
                                Countries

SEC. 821. ADDITIONAL ERADICATION RESOURCES FOR COLOMBIA.

    (a) Department of State.--Funds are authorized to be appropriated 
for the Department of State for fiscal years 1999, 2000, and 2001 for 
the enhancement of drug-related eradication efforts in Colombia in the 
total amount of $201,250,000 which shall be available for the following 
purposes:
            (1) For each such fiscal year for sustaining support of the 
        helicopters and fixed wing fleet of the national police of 
        Colombia.
            (2) For the purchase of DC-3 transport aircraft for the 
        national police of Colombia.
            (3) For acquisition of resources needed for prison security 
        in Colombia.
            (4) For the purchase of minigun systems for the national 
        police of Colombia.
            (5) For the purchase of 6 UH-60L Black Hawk utility 
        helicopters for the national police of Colombia and for 
        operation, maintenance, and training relating to such 
        helicopters.

[[Page 112 STAT. 2681-700]]

            (6) For procurement, for upgrade of 50 UH-1H helicopters to 
        the Huey II configuration equipped with miniguns for the use of 
        the national police of Colombia.
            (7) For the repair and rebuilding of the antinarcotics base 
        in southern Colombia.
            (8) For providing sufficient and adequate base and force 
        security for any rebuilt facility in southern Colombia, and the 
        other forward operating antinarcotics bases of the Colombian 
        National Police antinarcotics unit.

     <> (b) Counternarcotics Assistance.--
            (1) Limitation on provision of assistance.--Except as 
        provided in paragraph (2), United States counternarcotics 
        assistance may not be provided for the Government of Colombia 
        under this title or under any other provision of law on or after 
        the date of enactment of this Act if the Government of Colombia 
        negotiates or permits the establishment of any demilitarized 
        zone in which the eradication of drug production by the security 
        forces of Colombia, including the Colombian National Police 
        antinarcotics unit, is prohibited.
            (2) Exception.--If the Government of Colombia negotiates or 
        permits the establishment of a demilitarized zone described in 
        paragraph (1), United States counternarcotics assistance may be 
        provided for the Government of Colombia for a period of up to 90 
        consecutive days upon a finding by the President that providing 
        such assistance is in the national interest of the United 
        States.
            (3) Notification.--In each case in which counternarcotics 
        assistance is provided for the Government of Colombia as a 
        result of a finding by the President described in paragraph (2), 
        the President shall notify the Committees on Appropriations and 
        the authorizing committees of jurisdiction of the House of 
        Representatives and the Senate not later than 5 days after such 
        assistance is provided.

SEC. 822. ADDITIONAL ERADICATION RESOURCES FOR PERU.

    (a) Department of State.--Funds are authorized to be appropriated 
for the Department of State for fiscal years 1999, 2000, and 2001 for 
the establishment of a third drug interdiction site in Peru to support 
air bridge and riverine missions for enhancement of drug-related 
eradication efforts in Peru, in the total amount of $3,000,000, and an 
additional amount of $1,000,000 for each of fiscal years 2000 and 2001 
for operation and maintenance.
    (b) Department of Defense Study.--The Secretary of Defense shall 
conduct a study of Peruvian counternarcotics air interdiction 
requirements and, not later than 90 days after the date of enactment of 
this Act, submit to Congress a report on the results of the study. The 
study shall include a review of the Peruvian Air Force's current and 
future requirements for counternarcotics air interdiction to complement 
the Peruvian Air Force's A-37 capability.

SEC. 823. ADDITIONAL ERADICATION RESOURCES FOR BOLIVIA.

    Funds are authorized to be appropriated for the Department of State 
for fiscal years 1999, 2000, and 2001 for enhancement of drug-related 
eradication efforts in Bolivia in the total amount of $17,000,000 which 
shall be available for the following purposes:
            (1) For support of air operations in Bolivia.
            (2) For support of riverine operations in Bolivia.
            (3) For support of coca eradication programs.

[[Page 112 STAT. 2681-701]]

            (4) For procurement of 2 mobile x-ray machines, with 
        operation and maintenance support.

SEC. 824. MISCELLANEOUS ADDITIONAL ERADICATION RESOURCES.

    Funds are authorized to be appropriated for the Department of State 
for fiscal years 1999, 2000, and 2001 for enhanced precursor chemical 
control projects, in the total amount of $500,000.

SEC. 825. BUREAU OF INTERNATIONAL NARCOTICS AND LAW ENFORCEMENT AFFAIRS.

    (a) Sense of Congress Relating to Professional Qualifications of 
Officials Responsible for International Narcotics Control.--It is the 
sense of Congress that any individual serving in the position of 
assistant secretary in any department or agency of the Federal 
Government who has primary responsibility for international narcotics 
control and law enforcement, and the principal deputy of any such 
assistant secretary, shall have substantial professional qualifications 
in the fields of--
            (1) management;
            (2) Federal law enforcement or intelligence; and
            (3) foreign policy.

    (b) Sense of Congress Relating to Deficiencies in International 
Narcotics Assistance Activities.--It is the sense of Congress that the 
responsiveness and effectiveness of international narcotics assistance 
activities under the Department of State have been severely hampered 
due, in part, to the lack of law enforcement expertise by responsible 
personnel in the Department of State.

Subtitle C--Enhanced Alternative Crop Development Support in Source Zone

SEC. 831. ALTERNATIVE CROP DEVELOPMENT SUPPORT.

    Funds are authorized to be appropriated for the United States Agency 
for International Development for fiscal years 1999, 2000, and 2001 for 
alternative development programs in the total amount of $180,000,000 
which shall be available as follows:
            (1) In the Guaviare, Putumayo, and Caqueta regions in 
        Colombia.
            (2) In the Ucayali, Apurimac, and Huallaga Valley regions in 
        Peru.
            (3) In the Chapare and Yungas regions in Bolivia.

SEC. 832. AUTHORIZATION OF APPROPRIATIONS FOR AGRICULTURAL RESEARCH 
            SERVICE COUNTERDRUG RESEARCH AND DEVELOPMENT ACTIVITIES.

    (a) In General.--There is authorized to be appropriated to the 
Secretary of Agriculture for each of fiscal years 1999, 2000, and 2001, 
$23,000,000 to support the counternarcotics research efforts of the 
Agricultural Research Service of the Department of Agriculture. Of that 
amount, funds are authorized as follows:
            (1) $5,000,000 shall be used for crop eradication 
        technologies.
            (2) $2,000,000 shall be used for narcotics plant 
        identification, chemistry, and biotechnology.
            (3) $1,000,000 shall be used for worldwide crop 
        identification, detection tagging, and production estimation 
        technology.
            (4) $5,000,000 shall be used for improving the disease 
        resistance, yield, and economic competitiveness of commercial

[[Page 112 STAT. 2681-702]]

        crops that can be promoted as alternatives to the production of 
        narcotics plants.
            (5) $10,000,000 to contract with entities meeting the 
        criteria described in subsection (b) for the product 
        development, environmental testing, registration, production, 
        aerial distribution system development, product effectiveness 
        monitoring, and modification of multiple herbicides to control 
        narcotic crops (including coca, poppy, and cannabis) in the 
        United States and internationally.

    (b) Criteria for Eligible Entities.--An entity under this subsection 
is an entity which possesses--
            (1) experience in diseases of narcotic crops;
            (2) intellectual property involving seed-borne dispersal 
        formulations;
            (3) the availability of state-of-the-art containment or 
        quarantine facilities;
            (4) country-specific herbicide formulations;
            (5) specialized fungicide resistant formulations; or
            (6) special security arrangements.

SEC. 833. MASTER PLAN FOR HERBICIDES TO CONTROL NARCOTIC CROPS.

    (a) In General.--The Director of the Office of National Drug Control 
Policy shall develop a 10-year master plan for the use of herbicides to 
control narcotic crops (including coca, poppy, and cannabis) in the 
United States and internationally.
    (b) Coordination.--The Director shall develop the plan in 
coordination with--
            (1) the Department of Agriculture;
            (2) the Drug Enforcement Administration of the Department of 
        Justice;
            (3) the Department of Defense;
            (4) the Environmental Protection Agency;
            (5) the Bureau for International Narcotics and Law 
        Enforcement Activities of the Department of State;
            (6) the United States Information Agency; and
            (7) other appropriate agencies.

    (c) Report.--Not later than March 1, 1999, the Director of the 
Office of National Drug Control Policy shall submit to Congress a report 
describing the activities undertaken to carry out this section.

SEC. 834. <> AUTHORIZATION OF USE OF 
            ENVIRONMENTALLY-APPROVED HERBICIDES TO ELIMINATE ILLICIT 
            NARCOTICS CROPS.

    The Secretary of State, the Attorney General, the Secretary of 
Agriculture, the Secretary of Defense, the Director of the Office of 
National Drug Control Policy, and the Administrator of the Environmental 
Protection Agency are authorized to support the development and use of 
environmentally-approved herbicides to eliminate illicit narcotics 
crops, including coca, cannabis, and opium poppy, both in the United 
States and in foreign countries.

[[Page 112 STAT. 2681-703]]

       Subtitle D--Enhanced International Law Enforcement Training

SEC. 841. ENHANCED INTERNATIONAL LAW ENFORCEMENT ACADEMY TRAINING.

    (a) Maritime Law Enforcement Training Center.--Funds are authorized 
to be appropriated for the Department of Transportation and the 
Department of the Treasury for fiscal years 1999, 2000, and 2001 for the 
joint establishment, operation, and maintenance in San Juan, Puerto 
Rico, of a center for training law enforcement personnel of countries 
located in the Latin American and Caribbean regions in matters relating 
to maritime law enforcement, including customs-related ports management 
matters, as follows:
            (1) For each such fiscal year for funding by the Department 
        of Transportation, $1,500,000.
            (2) For each such fiscal year for funding by the Department 
        of the Treasury, $1,500,000.

    (b) United States Coast Guard International Maritime Training 
Vessel.--Funds are authorized to be appropriated for the Department of 
Transportation for fiscal years 1999, 2000, and 2001 for the 
establishment, operation, and maintenance of maritime training vessels 
in the total amount of $15,000,000 which shall be available for the 
following purposes:
            (1) For a vessel for international maritime training, which 
        shall visit participating Latin American and Caribbean nations 
        on a rotating schedule in order to provide law enforcement 
        training and to perform maintenance on participating national 
        assets.
            (2) For support of the United States Coast Guard Balsam 
        Class Buoy Tender training vessel.

SEC. 842. ENHANCED UNITED STATES DRUG ENFORCEMENT INTERNATIONAL 
            TRAINING.

    (a) Mexico.--Funds are authorized to be appropriated for the 
Department of Justice for fiscal years 1999, 2000, and 2001 for 
substantial exchanges for Mexican judges, prosecutors, and police, in 
the total amount of $2,000,000 for each such fiscal year. The Attorney 
General shall consult with the Secretary of State regarding such 
exchanges.
    (b) Brazil.--Funds are authorized to be appropriated for the 
Department of Justice for fiscal years 1999, 2000, and 2001 for enhanced 
support for the Brazilian Federal Police Training Center, in the total 
amount of $1,000,000 for each such fiscal year. The Attorney General 
shall consult with the Secretary of State regarding such enhanced 
support.
    (c) Panama.--
            (1) In general.--Funds are authorized to be appropriated for 
        the Department of Transportation for fiscal years 1999, 2000, 
        and 2001 for operation and maintenance, for locating and 
        operating Coast Guard assets so as to strengthen the capability 
        of the Coast Guard of Panama to patrol the Atlantic and Pacific 
        coasts of Panama for drug enforcement and interdiction 
        activities, in the total amount of $1,000,000 for each such 
        fiscal year. The Secretary of Transportation shall consult with 
        the Secretary of State regarding the location and operation of 
        such assets for such purposes.

[[Page 112 STAT. 2681-704]]

            (2) Eligibility to receive training.--Notwithstanding any 
        other provision of law, members of the national police of Panama 
        shall be eligible to receive training through the International 
        Military Education Training program.

    (d) Venezuela.--There are authorized to be appropriated for the 
Department of Justice for each of fiscal years 1999, 2000, and 2001, 
$1,000,000 for operation and maintenance, for support for the Venezuelan 
Judicial Technical Police Counterdrug Intelligence Center. The Attorney 
General shall consult with the Secretary of State regarding such 
support.
    (e) Ecuador.--
            (1) In general.--Funds are authorized to be appropriated for 
        the Department of Transportation and the Department of the 
        Treasury for each of fiscal years 1999, 2000, and 2001 for the 
        buildup of local coast guard and port control in Guayaquil and 
        Esmeraldas, Ecuador, as follows:
                    (A) For each such fiscal year for the Department of 
                Transportation, $500,000.
                    (B) For each such fiscal year for the Department of 
                the Treasury, $500,000.
            (2) Consultation.--The Secretary of Transportation and the 
        Secretary of the Treasury shall consult with the Secretary of 
        State regarding the buildup described in paragraph (1).

    (f) Haiti and the Dominican Republic.--Funds are authorized to be 
appropriated for the Department of the Treasury for each of fiscal years 
1999, 2000, and 2001, $500,000 for the buildup of local coast guard and 
port control in Haiti and the Dominican Republic. The Secretary of the 
Treasury shall consult with the Secretary of State regarding such 
buildup of local coast guard and port patrol.
    (g) Central America.--There are authorized to be appropriated for 
the Department of the Treasury for each of fiscal years 1999, 2000, and 
2001, $12,000,000 for the buildup of local coast guard and port control 
in Belize, Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua. 
The Secretary of the Treasury shall consult with the Secretary of State 
regarding such buildup of local coast guard and port patrol.

SEC. 843. <> PROVISION OF NONLETHAL EQUIPMENT TO 
            FOREIGN LAW ENFORCEMENT ORGANIZATIONS FOR COOPERATIVE 
            ILLICIT NARCOTICS CONTROL ACTIVITIES.

    (a) In General.--(1) Subject to paragraph (2), the Administrator of 
the Drug Enforcement Administration, in consultation with the Secretary 
of State, may transfer or lease each year nonlethal equipment to foreign 
law enforcement organizations for the purpose of establishing and 
carrying out cooperative illicit narcotics control activities.
    (2)(A) The Administrator may transfer or lease equipment under 
paragraph (1) only if the equipment is not designated as a munitions 
item or controlled on the United States Munitions List pursuant to 
section 38 of the Arms Export Control Act.
    (B) The value of each piece of equipment transferred or leased under 
paragraph (1) may not exceed $100,000.
    (b) Additional Requirement.--The Administrator shall provide for the 
maintenance and repair of any equipment transferred or leased under 
subsection (a).

[[Page 112 STAT. 2681-705]]

    (c) Notification Requirement.--Before the export of any item 
authorized for transfer under subsection (a), the Administrator shall 
provide written notice to the Committee on Foreign Relations of the 
Senate and the Committee on International Relations of the House of 
Representatives in accordance with the procedures applicable to 
reprogramming notifications under section 634A of the Foreign Assistance 
Act of 1961 (22 U.S.C. 2394-1).
    (d) Sense of Congress.--It is the sense of Congress that--
            (1) all United States law enforcement personnel serving in 
        Mexico should be accredited the same status under the Vienna 
        Convention on Diplomatic Immunity as other diplomatic personnel 
        serving at United States posts in Mexico; and
            (2) all Mexican narcotics law enforcement personnel serving 
        in the United States should be accorded the same diplomatic 
        status as Drug Enforcement Administration personnel serving in 
        Mexico.

   Subtitle E--Enhanced Drug Transit and Source Zone Law Enforcement 
                        Operations and Equipment

SEC. 851. INCREASED FUNDING FOR OPERATIONS AND EQUIPMENT; REPORT.

    (a) Drug Enforcement Administration.--Funds are authorized to be 
appropriated for the Drug Enforcement Administration for fiscal years 
1999, 2000, and 2001 for enhancement of counternarcotic operations in 
drug transit and source countries in the total amount of $58,900,000 
which shall be available for the following purposes:
            (1) For support of the Merlin program.
            (2) For support of the intercept program.
            (3) For support of the development and implementation of 
        automation systems to support investigative and intelligence 
        requirements.
            (4) For support of the Caribbean Initiative.
            (5) For the hire of special agents, administrative and 
        investigative support personnel, and intelligence analysts for 
        the support of overseas investigations.

    (b) Department of State.--Funds are authorized to be appropriated 
for the Department of State for fiscal year 1999, 2000, and 2001 for the 
deployment of commercial unclassified intelligence and imaging data and 
a Passive Coherent Location System for counternarcotics and interdiction 
purposes in the Western Hemisphere, the total amount of $20,000,000.
    (c) Department of the Treasury.--Funds are authorized to be 
appropriated for the United States Customs Service for fiscal years 
1999, 2000, and 2001 for enhancement of counternarcotic operations in 
drug transit and source countries in the total amount of $71,500,000 
which shall be available for the following purposes:
            (1) For refurbishment of up to 30 interceptor and Blue Water 
        Platform vessels in the Caribbean maritime fleet.
            (2) For purchase of up to 9 new interceptor vessels in the 
        Caribbean maritime fleet.
            (3) For the hire and training of up to 25 special agents for 
        maritime operations in the Caribbean.
            (4) For purchase of up to 60 automotive vehicles for ground 
        use in South Florida.

[[Page 112 STAT. 2681-706]]

            (5) For each such fiscal year for operation and maintenance 
        support for up to 10 United States Customs Service Citations 
        Aircraft to be dedicated for the source and transit zone.
            (6) For purchase of non-intrusive inspection systems 
        consistent with the United States Customs Service 5-year 
        technology plan, including truck x-rays and gamma-imaging for 
        drug interdiction purposes at high-threat seaports and land 
        border ports of entry.

    (d) Department of Defense Report.--Not later than January 31, 1999, 
the Secretary of Defense, in consultation with the Director of the 
Office of National Drug Control Policy, shall submit to Congress a 
report examining and proposing recommendations regarding any 
organizational changes to optimize counterdrug activities, including 
alternative cost-sharing arrangements regarding the following 
facilities:
            (1) The Joint Inter-Agency Task Force, East, Key West, 
        Florida.
            (2) The Joint Inter-Agency Task Force, West, Alameda, 
        California.
            (3) The Joint Inter-Agency Task Force, South, Panama City, 
        Panama.
            (4) The Joint Task Force 6, El Paso, Texas.

SEC. 852. FUNDING FOR COMPUTER SOFTWARE AND HARDWARE TO FACILITATE 
            DIRECT COMMUNICATION BETWEEN DRUG ENFORCEMENT AGENCIES.

    (a) Authorization.--Funds are authorized to be appropriated for the 
development and purchase of computer software and hardware to facilitate 
direct communication between agencies that perform work relating to the 
interdiction of drugs at United States borders, including the United 
States Customs Service, the Border Patrol, the Federal Bureau of 
Investigation, the Drug Enforcement Agency, and the Immigration and 
Naturalization Service, in the total amount of $50,000,000.
    (b) Availability.--Funds authorized pursuant to the authorization of 
appropriations in subsection (a) shall remain available until expended.

SEC. 853. SENSE OF CONGRESS REGARDING PRIORITY OF DRUG INTERDICTION AND 
            COUNTERDRUG ACTIVITIES.

    It is the sense of Congress that the Secretary of Defense should 
revise the Global Military Force Policy of the Department of Defense in 
order--
            (1) to treat the international drug interdiction and 
        counter-drug activities of the Department as a military 
        operation other than war, thereby elevating the priority given 
        such activities under the Policy to the next priority below the 
        priority given to war under the Policy and to the same priority 
        as is given to peacekeeping operations under the Policy; and
            (2) to allocate the assets of the Department to drug 
        interdiction and counter-drug activities in accordance with the 
        priority given those activities.

                 Subtitle F--Relationship to Other Laws

SEC. 861. AUTHORIZATIONS OF APPROPRIATIONS.

    The funds authorized to be appropriated for any department or agency 
of the Federal Government for fiscal years 1999, 2000,

[[Page 112 STAT. 2681-707]]

or 2001 by this title are in addition to funds authorized to be 
appropriated for that department or agency for fiscal year 1999, 2000, 
or 2001 by any other provision of law.

 Subtitle <> G--Trafficking in Controlled Substances

SEC. 871. SHORT TITLE.

    This subtitle may be cited as the ``Controlled Substances 
Trafficking Prohibition Act''.

SEC. 872. LIMITATION.

    (a) Amendment.--Section 1006(a) of the Controlled Substances Import 
and Export Act (21 U.S.C. 956(a)) is amended--
            (1) by striking ``The Attorney General'' and inserting ``(1) 
        Subject to paragraph (2), the Attorney General''; and
            (2) by adding at the end the following:

    ``(2) Notwithstanding any exemption under paragraph (1), a United 
States resident who enters the United States through an international 
land border with a controlled substance (except a substance in schedule 
I) for which the individual does not possess a valid prescription issued 
by a practitioner (as defined in section 102 of the Controlled 
Substances Act (21 U.S.C. 802)) in accordance with applicable Federal 
and State law (or documentation that verifies the issuance of such a 
prescription to that individual) may not import the controlled substance 
into the United States in an amount that exceeds 50 dosage units of the 
controlled substance.''.
     <> (b) Federal Minimum Requirement.--
Section 1006(a)(2) of the Controlled Substances Import and Export Act, 
as added by subsection (a), is a minimum Federal requirement and shall 
not be construed to limit a State from imposing any additional 
requirement.

     <> (c) Extent.--The amendment made by 
subsection (a) shall not be construed to affect the jurisdiction of the 
Secretary of Health and Human Services under the Federal Food, Drug and 
Cosmetic Act (21 U.S.C. 301 et seq.).

 TITLE <> IX--
DRUG-FREE WORKPLACE ACT

SEC. 901. SHORT TITLE.

    This title may be cited as the ``Drug-Free Workplace Act of 1998''.

SEC. 902. <> FINDINGS; PURPOSES.

    (a) Findings.--Congress finds that--
            (1) 74 percent of adults who use illegal drugs are employed;
            (2) small business concerns employ over 50 percent of the 
        Nation's workforce;
            (3) in more than 88 percent of families with children under 
        the age of 18, at least 1 parent is employed; and
            (4) employees who use and abuse addictive illegal drugs and 
        alcohol increase costs for businesses and risk the health and 
        safety of all employees because--
                    (A) absenteeism is 66 percent higher among drug 
                users than individuals who do not use drugs;
                    (B) health benefit utilization is 300 percent higher 
                among drug users than individuals who do not use drugs;
                    (C) 47 percent of workplace accidents are drug-
                related;

[[Page 112 STAT. 2681-708]]

                    (D) disciplinary actions are 90 percent higher among 
                drug users than among individuals who do not use drugs; 
                and
                    (E) employee turnover is significantly higher among 
                drug users than among individuals who do not use drugs.

    (b) Purposes.--The purposes of this title are to--
            (1) educate small business concerns about the advantages of 
        a drug-free workplace;
            (2) provide grants and technical assistance in addition to 
        financial incentives to enable small business concerns to create 
        a drug-free workplace;
            (3) assist working parents in keeping their children drug-
        free; and
            (4) encourage small business employers and employees alike 
        to participate in drug-free workplace programs.

SEC. 903. <> SENSE OF CONGRESS.

    It is the sense of Congress that--
            (1) businesses should adopt drug-free workplace programs;
            (2) States should consider incentives to encourage 
        businesses to adopt drug-free workplace programs; and
            (3) such incentives may include--
                  (A) financial incentives, including--
                        (i) a reduction in workers' compensation 
                      premiums;
                        (ii) a reduction in unemployment insurance 
                      premiums; and
                        (iii) tax deductions in an amount equal to the 
                      amount of expenditures for employee assistance 
                      programs, treatment, or illegal drug testing; and
                  (B) other incentives, such as the adoption of 
                liability limitations, as recommended by the President's 
                Commission on Model State Drug Laws.

SEC. 904. <> DRUG-FREE WORKPLACE DEMONSTRATION 
            PROGRAM.
      Section 27 of the Small Business Act (15 U.S.C. 654) is amended to 
read as follows:

``SEC. 27. DRUG-FREE WORKPLACE DEMONSTRATION PROGRAM.

      ``(a) Definitions.--In this section:
            ``(1) Drug-free workplace program.--The term `drug-free 
        workplace program' means a program that includes--
                    ``(A) a written policy, including a clear statement 
                of expectations for workplace behavior, prohibitions 
                against reporting to work or working under the influence 
                of illegal drugs or alcohol, prohibitions against the 
                use or possession of illegal drugs in the workplace, and 
                the consequences of violating those expectations and 
                prohibitions;
                    ``(B) drug and alcohol abuse prevention training for 
                a total of not less than 2 hours for each employee, and 
                additional voluntary drug and alcohol abuse prevention 
                training for employees who are parents;
                    ``(C) employee illegal drug testing, with analysis 
                conducted by a drug testing laboratory certified by the 
                Substance Abuse and Mental Health Services 
                Administration, or approved by the College of American 
                Pathologists for forensic drug testing, and a review of 
                each positive test result by a medical review officer;

[[Page 112 STAT. 2681-709]]

                    ``(D) employee access to an employee assistance 
                program, including confidential assessment, referral, 
                and short-term problem resolution; and
                    ``(E) continuing alcohol and drug abuse prevention 
                education.
            ``(2) Eligible intermediary.--The term `eligible 
        intermediary' means an organization--
                    ``(A) that has not less than 2 years of experience 
                in carrying out drug-free workplace programs;
                    ``(B) that has a drug-free workplace policy in 
                effect;
                    ``(C) that is located in a State, the District of 
                Columbia, or a territory of the United States; and
                    ``(D) the purpose of which is--
                          ``(i) to develop comprehensive drug-free 
                      workplace programs or to supply drug-free 
                      workplace services; or
                          ``(ii) to provide other forms of assistance 
                      and services to small business concerns.
            ``(3) Employee.--The term `employee' includes any--
                    ``(A) applicant for employment;
                    ``(B) employee;
                    ``(C) supervisor;
                    ``(D) manager;
                    ``(E) officer of a small business concern who is 
                active in management of the concern; and
                    ``(F) owner of a small business concern who is 
                active in management of the concern.
            ``(4) Medical review officer.--The term `medical review 
        officer'--
                    ``(A) means a licensed physician with knowledge of 
                substance abuse disorders; and
                    ``(B) does not include any--
                          ``(i) employee of the small business concern; 
                      or
                          ``(ii) employee or agent of, or any person 
                      having a financial interest in, the laboratory for 
                      which the illegal drug test results are being 
                      reviewed.

    ``(b) Establishment.--There is established a drug-free workplace 
demonstration program, under which the Administrator may make grants to, 
or enter into cooperative agreements or contracts with, eligible 
intermediaries for the purpose of providing financial and technical 
assistance to small business concerns seeking to establish a drug-free 
workplace program.
    ``(c) Privacy Protection for Employees Participating in a Drug-Free 
Workplace Program.--Each drug-free workplace program established with 
assistance made available under this section shall--
            ``(1) include, as reasonably necessary and appropriate, 
        practices and procedures to ensure the confidentiality of 
        illegal drug test results and of any participation by an 
        employee in a rehabilitation program;
            ``(2) prohibit the mandatory disclosure of medical 
        information by an employee prior to a confirmed positive illegal 
        drug test; and
            ``(3) require that a medical review officer reviewing 
        illegal drug test results shall report only the final results, 
        limited to those drugs for which the employee tests positive, in 
        writing

[[Page 112 STAT. 2681-710]]

        and in a manner designed to ensure the confidentiality of the 
        results.

    ``(d) Evaluation and Coordination.--Not later than 18 months after 
the date of enactment of the Drug-Free Workplace Act of 1998, the 
Administrator, in coordination with the Secretary of Labor, the 
Secretary of Health and Human Services, and the Director of National 
Drug Control Policy, shall--
            ``(1) evaluate the drug-free workplace programs established 
        with assistance made available under this section; and
            ``(2) <> submit to Congress a report 
        describing the results of the evaluation under paragraph (1).

    ``(e) Contract Authority.--In carrying out this section, the 
Administrator may--
            ``(1) contract with public and private entities to provide 
        assistance related to carrying out the program under this 
        section; and
            ``(2) compensate those entities for provision of that 
        assistance.

    ``(f) Construction.--Nothing in this section may be construed to 
require an employer who attends a program offered by an intermediary to 
contract for any service offered by the intermediary.
    ``(g) Authorization.--
            ``(1) In general.--There is authorized to be appropriated to 
        carry out this section, $10,000,000 for fiscal years 1999 and 
        2000. Amounts made available under this subsection shall remain 
        available until expended.
            ``(2) Small business development centers.--Of the total 
        amount made available under this subsection, not more than the 
        greater of 10 percent or $1,000,000 may be used to carry out 
        section 21(c)(3)(T).''.

SEC. 905. SMALL BUSINESS DEVELOPMENT CENTERS.

    Section 21(c)(3) of the Small Business Act (15 U.S.C. 648(c)(3)) is 
amended--
            (1) in subparagraph (R), by striking ``and'' at the end;
            (2) in subparagraph (S), by striking the period at the end 
        and inserting ``; and''; and
            (3) by adding at the end the following:
            ``(T) providing information and assistance to small business 
        concerns with respect to establishing drug-free workplace 
        programs on or before October 1, 2000.''.

              TITLE X--CANYON FERRY RESERVOIR, MONTANA, ACT

SECTION 1001. FINDINGS.

    Congress finds that the conveyance of the properties described in 
section 4(b) to the lessees of those properties for fair market value 
would have the beneficial results of--
            (1) reducing Pick-Sloan project debt for the Canyon Ferry 
        Unit;
            (2) providing a permanent source of funding to acquire 
        publicly accessible land and interests in land, including 
        easements and conservation easements, in the State from willing 
        sellers at fair market value to--
                    (A) restore and conserve fisheries habitat, 
                including riparian habitat;
                    (B) restore and conserve wildlife habitat;

[[Page 112 STAT. 2681-711]]

                    (C) enhance public hunting, fishing, and 
                recreational opportunities; and
                    (D) improve public access to public land;
            (3) eliminating Federal payments in lieu of taxes and 
        associated management expenditures in connection with the 
        Federal Government's ownership of the properties while 
        increasing local tax revenues from the new owners; and
            (4) eliminating expensive and contentious disputes between 
        the Secretary and leaseholders while ensuring that the Federal 
        Government receives full and fair value for the properties.

SEC. 1002. PURPOSES.

    The purposes of this Act are to--
            (1) establish terms and conditions under which the Secretary 
        of the Interior shall, for fair market value, convey certain 
        properties around Canyon Ferry Reservoir, Montana, to private 
        parties; and
            (2) acquire certain land for fish and wildlife conservation 
        purposes.

SEC. 1003. DEFINITIONS.

    In this Act:
            (1) Canyon ferry-broadwater county trust.--The term ``Canyon 
        Ferry-Broadwater County Trust'' means the Canyon Ferry-
        Broadwater County Trust established under section 8.
            (2) CFRA.--The term ``CFRA'' means the Canyon Ferry 
        Recreation Association, Incorporated, a Montana corporation.
            (3) Commissioners.--The term ``Commissioners'' means the 
        Board of Commissioners for Broadwater County, Montana.
            (4) Lease.--The term ``lease'' means a lease or permit in 
        effect on the date of enactment of this Act that gives a 
        leaseholder the right to occupy a property.
            (5) Lessee.--The term ``lessee'' means--
                    (A) the leaseholder of 1 of the properties on the 
                date of enactment of this Act; and
                    (B) the leaseholder's heirs, executors, and assigns 
                of the leasehold interest in the property.
            (6) Montana fish and wildlife conservation trust.--The term 
        ``Montana Fish and Wildlife Conservation Trust'' means the 
        Montana Fish and Wildlife Conservation Trust established under 
        section 7.
            (7) Project.--The term ``project'' means the Canyon Ferry 
        Unit of the Pick-Sloan Missouri River Basin Project.
            (8) Property.--
                    (A) In general.--The term ``property'' means 1 of 
                the cabin sites described in section 4(b).
                    (B) Use in the plural.--The term ``properties'' 
                means all 265 of the properties and any contiguous 
                parcels referred to in section 4(b)(1)(B).
            (9) Purchaser.--The term ``purchaser'' means a person or 
        entity, excluding CFRA or a lessee, that purchases the 
        properties under section 4.
            (10) Reservoir.--The term ``Reservoir'' means the Canyon 
        Ferry Reservoir, Montana.
            (11) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior.
            (12) State.--The term ``State'' means the State of Montana.

[[Page 112 STAT. 2681-712]]

SEC. 1004. SALE OF PROPERTIES.

    (a) In General.--Consistent with the Act of June 17, 1902 (32 Stat. 
388, chapter 1093) and Acts supplemental to and amendatory of that Act 
(43 U.S.C. 371 et seq.), the Secretary shall convey to CFRA or a 
purchaser--
            (1) all right, title, and interest (except the mineral 
        estate) of the United States in and to the properties, subject 
        to valid existing rights and the operational requirements of the 
        Pick-Sloan Missouri River Basin Program; and
            (2) perpetual easements for--
                    (A) vehicular access to each property;
                    (B) access to and use of 1 dock per property; and
                    (C) access to and use of all boathouses, ramps, 
                retaining walls, and other improvements for which access 
                is provided in the leases as of the date of enactment of 
                this Act.

    (b) Description of Properties.--
            (1) In general.--The properties to be conveyed are--
                    (A) the 265 cabin sites of the Bureau of Reclamation 
                located along the northern end of the Reservoir in 
                portions of sections 2, 11, 12, 13, 15, 22, 23, and 26, 
                Township 10 North, Range 1 West; and
                    (B) any small parcel contiguous to any property (not 
                including shoreline or land needed to provide public 
                access to the shoreline of the Reservoir) that the 
                Secretary determines should be conveyed in order to 
                eliminate an inholding and facilitate administration of 
                surrounding land remaining in Federal ownership.
            (2) Acreage; legal description.--The acreage and legal 
        description of each property and of each parcel shall be 
        determined by the Secretary in consultation with CFRA.
            (3) Restrictive use covenant.--
                    (A) In general.--In order to maintain the unique 
                character of the Reservoir area, the Secretary, the 
                purchaser, CFRA, and each subsequent owner of each 
                property shall covenant that the use restrictions to 
                carry out subparagraphs (B) and (C) shall--
                          (i) be appurtenant to, and run, with each 
                      property; and
                          (ii) be binding on each subsequent owner of 
                      each property.
                    (B) Access to reservoir.--
                          (i) In general.--The Secretary, the purchaser, 
                      CFRA, and the subsequent owners of each property 
                      shall ensure that--
                                    (I) public access to and along the 
                                shoreline of the Reservoir in existence 
                                on the date of enactment of this Act is 
                                not obstructed; and
                                    (II) adequate public access to and 
                                along the shoreline of the Reservoir is 
                                maintained.
                          (ii) Federal reclamation law.--
                                    (I) In general.--No conveyance of 
                                property under this Act shall restrict 
                                or limit the authority or ability of the 
                                Secretary to fulfill the duties of the 
                                Secretary under the Act of June 17, 1902 
                                (32 Stat. 388, chapter 1093), and Acts 
                                supplemental

[[Page 112 STAT. 2681-713]]

                                to and amendatory of that Act (43 U.S.C. 
                                371 et seq.).
                                    (II) No liability.--The operation of 
                                the Reservoir by the Secretary in 
                                fulfillment of the duties described in 
                                subclause (I) shall not result in 
                                liability for damages, direct or 
                                indirect, to the owner of any property 
                                conveyed under section 4(a) or damages 
                                from any loss of use or enjoyment of the 
                                property.
                    (C) Historical use.--The Secretary, the purchaser, 
                CFRA, and each subsequent owner of each property shall 
                covenant that future uses of the property shall be 
                limited to the type and intensity of uses in existence 
                on the date of enactment of this Act, as limited by the 
                prohibitions contained in the annual operating plan of 
                the Bureau of Reclamation for the Reservoir in effect on 
                October 1, 1998.

    (c) Purchase Process.--
            (1) In general.--The Secretary shall--
                    (A) solicit sealed bids for the properties;
                    (B) subject to paragraph (2), sell the properties to 
                the bidder that submits the highest bid above the 
                minimum bid determined under paragraph (2); and
                    (C) not accept any bid for less than all of the 
                properties in 1 transaction.
            (2) Minimum bid.--
                    (A) In general.--Before accepting bids, the 
                Secretary shall establish a minimum bid, which shall be 
                equal to the fair market value of the properties 
                determined by an appraisal of each property, exclusive 
                of the value of private improvements made by the 
                leaseholders before the date of the conveyance, in 
                conformance with the Uniform Appraisal Standards for 
                Federal Land Acquisition.
                    (B) Fair market value.--Any dispuste over the fair 
                market value of a property under subparagraph (A) shall 
                be resolved in accordance with section 2201.4 of title 
                43, Code of Federal Regulations.
            (3) Right of first refusal.--If the highest bidder is other 
        than CFRA, CFRA shall have the right to match the highest bid 
        and purchase the properties at a price equal to the amount of 
        the highest bid.

    (d) Terms of Conveyance.--
            (1) Purchaser.--If the highest bidder is other than CFRA, 
        and CFRA does not match the highest bid, the following shall 
        apply:
                    (A) Payment.--The purchaser shall pay the amount bid 
                to the Secretary for distribution in accordance with 
                section 6.
                    (B) Conveyance.--The Secretary shall convey the 
                properties to the purchaser.
                    (C) Option to purchase.--The purchaser shall give 
                each lessee of a property conveyed under this section an 
                option to purchase the property at fair market value, as 
                determined under subsection (c)(2).
                    (D) Nonpurchasing lessees.--
                          (i) Right to continue lease.--A lessee that is 
                      unable or unwilling to purchase a property shall 
                      be provided the opportunity to continue to lease 
                      the

[[Page 112 STAT. 2681-714]]

                      property for fair market value rent under the same 
                      terms and conditions as apply under the existing 
                      lease for the property, and shall have the right 
                      to renew the term of the existing lease for 2 
                      consecutive 5-year terms.
                          (ii) Compensation for improvements.--If a 
                      lessee declines to purchase a property, the 
                      purchaser shall compensate the lessee for the fair 
                      market value, as determined pursuant to customary 
                      appraisal procedures, of all improvements made to 
                      the property by the lessee. The lessee may sell 
                      the improvements to the purchaser at any time, but 
                      the sale shall be completed by the final 
                      termination of the lease, after all renewals under 
                      clause (i).
            (2) CFRA.--If CFRA is the highest bidder, or matches the 
        highest bid, the following shall apply:
                    (A) Closing.--On receipt of a purchase request from 
                a lessee or CFRA, the Secretary shall close on the 
                property and prepare all other properties for closing 
                within 45 days.
                    (B) Payment.--At the closing for a property--
                          (i) the lessee or CFRA shall deliver to the 
                      Secretary payment for the property, which the 
                      Secretary shall distribute in accordance with 
                      section 6; and
                          (ii) the Secretary shall convey the property 
                      to the lessee or CFRA.
                    (C) Appraisal.--The Secretary shall determine the 
                purchase amount of each property based on the appraisal 
                conducted under subsection (c)(2), the amount of the bid 
                under subsection (c)(1), and the proportionate share of 
                administrative costs pursuant to subsection (e). The 
                total purchase amount for all properties shall equal the 
                total bid amount plus administrative costs under 
                subsection (e).
                    (D) Timing.--CFRA and the lessees shall purchase at 
                least 75 percent of the properties not later than August 
                1 of the year that begins at least 12 months after title 
                to the first property is conveyed by the Secretary to a 
                lessee.
                    (E) Right to renew.--The Secretary shall afford the 
                lessees who have not purchased properties under this 
                section the right to renew the term of the existing 
                lease for 2 (but not more than 2) consecutive 5-year 
                terms.
                    (F) Reimbursement.--A lessee shall reimburse CFRA 
                for a proportionate share of the costs to CFRA of 
                completing the transactions contemplated by this Act, 
                including any interest charges.
                    (G) Rental payments.--All rent received from the 
                leases shall be distributed by the Secretary in 
                accordance with section 6.

    (e) Administrative Costs.--Any reasonable administrative costs 
incurred by the Secretary, including the costs of survey and appraisals, 
incident to the conveyance under subsection (a) shall be reimbursed by 
the purchaser or CFRA.
    (f) Timing.--The Secretary shall make every effort to complete the 
conveyance under subsection (a) not later than 1 year after the 
satisfaction of the condition established by section 8(b).

[[Page 112 STAT. 2681-715]]

    (g) Closings.--Real estate closings to complete the conveyance under 
subsection (a) may be staggered to facilitate the conveyance as agreed 
to by the Secretary and the purchaser or CFRA.
    (h) Conveyance to Lessee.--If a lessee purchases a property from the 
purchaser or CFRA, the Secretary, at the request of the lessee, shall 
have the conveyance documents prepared in the name or names of the 
lessee so as to minimize the amount of time and number of documents 
required to complete the closing for the property.

SEC. 1005. AGREEMENT.

    (a) Management of Silo's Campground.--Not later than 180 days after 
the date of enactment of this Act, the Secretary, acting through the 
Commissioner of Reclamation, shall--
            (1) offer to contract with the Commissioners to manage the 
        Silo's campground;
            (2) enter into such a contract if agreed to by the Secretary 
        and the Commissioners; and
            (3) grant necessary easements for access roads within and 
        adjacent to the Silo's campground.

    (b) Concession Income.--Any income generated by any concession that 
may be granted by the Commissioners at the Silo's recreation area--
            (1) shall be deposited in the Canyon Ferry-Broadwater County 
        Trust; and
            (2) may be disbursed by the Canyon Ferry-Broadwater County 
        Trust manager as part of the income of the Trust.

SEC. 1006. USE OF PROCEEDS.

    Notwithstanding any other provision of law, proceeds of conveyances 
under this Act shall be available, without further Act of appropriation, 
as follows:
            (1) 10 percent of the proceeds shall be applied by the 
        Secretary of the Treasury to reduce the outstanding debt for the 
        Pick-Sloan project at the Reservoir.
            (2) 90 percent of the proceeds shall be deposited in the 
        Montana Fish and Wildlife Conservation Trust.

SEC. 1007. MONTANA FISH AND WILDLIFE CONSERVATION TRUST.

    (a) Establishment.--The Secretary, in consultation with the State 
congressional delegation and the Governor of the State, shall establish 
a nonprofit charitable permanent perpetual public trust in the State, to 
be known as the ``Montana Fish and Wildlife Conservation Trust'' 
(referred to in this section as the ``Trust'').
    (b) Purpose.--The purpose of the Trust shall be to provide a 
permanent source of funding to acquire publicly accessible land and 
interests in land, including easements and conservation easements, in 
the State from willing sellers at fair market value to--
            (1) restore and conserve fisheries habitat, including 
        riparian habitat;
            (2) restore and conserve wildlife habitat;
            (3) enhance public hunting, fishing, and recreational 
        opportunities; and
            (4) improve public access to public land.

    (c) Administration.--
            (1) Trust manager.--The Trust shall be managed by a trust 
        manager, who--

[[Page 112 STAT. 2681-716]]

                    (A) shall be responsible for investing the corpus of 
                the Trust; and
                    (B) shall disburse funds from the Trust on receiving 
                a request for disbursement from a majority of the 
                members of the Joint State-Federal Agency Board 
                established under paragraph (2) and after determining, 
                in consultation with the Citizen Advisory Board 
                established under paragraph (3) and after consideration 
                of any comments submitted by members of the public, that 
                the request meets the purpose of the Trust under 
                subsection (b) and the requirements of subsections (d) 
                and (e).
            (2) Joint state-federal agency board.--
                    (A) Establishment.--There is established a Joint 
                State-Federal agency Board, which shall consist of--
                          (i) 1 Forest Service employee employed in the 
                      State designated by the Forest Service;
                          (ii) 1 Bureau of Land Management employee 
                      employed in the State designated by the Bureau of 
                      Land Management;
                          (iii) 1 Bureau of Reclamation employee 
                      employed in the State designated by the Bureau of 
                      Reclamation;
                          (iv) 1 United States Fish and Wildlife Service 
                      employee employed in the State designated by the 
                      United States Fish and Wildlife Service; and
                          (v) 1 Montana Department of Fish, Wildlife and 
                      Parks employee designated by the Department.
                    (B) Requests for disbursement.--After consulting 
                with the Citizen Advisory Board established under 
                paragraph (3) and after consideration of the Trust plan 
                prepared under paragraph (3)(C) and of any comments or 
                requests submitted by members of the public, the Joint 
                State-Federal Agency Board, by a vote of a majority of 
                its members, may submit to the Trust Manager a request 
                for disbursement if the Board determines that the 
                request meets the purpose of the Trust.
            (3) Citizen advisory board.--
                    (A) In general.--The Secretary shall nominate, and 
                the Joint State-Federal Agency Board shall approve by a 
                majority vote, a Citizen Advisory Board.
                    (B) Membership.--The Citizen Advisory Board shall 
                consist of 4 members, including 1 with a demonstrated 
                commitment to improving public access to public land and 
                to fish and wildlife conservation, from each of--
                          (i) a Montana organization representing 
                      agricultural landowners;
                          (ii) a Montana organization representing 
                      hunters;
                          (iii) a Montana organization representing 
                      fishermen; and
                          (iv) a Montana nonprofit land trust or 
                      environmental organization.
                    (C) Duties.--The Citizen Advisory Board, in 
                consultation with the Joint State-Federal Agency Board 
                and the Montana Association of Counties, shall prepare 
                and periodically update a Trust plan including 
                recommendations for requests for disbursement by the 
                Joint State-Federal Agency Board.

[[Page 112 STAT. 2681-717]]

                    (D) Objectives of plan.--The Trust plan shall be 
                designed to maximize the effectiveness of Montana Fish 
                and Wildlife Conservation Trust expenditures 
                considering--
                          (i) public needs and requests;
                          (ii) availability of property;
                          (iii) alternative sources of funding; and
                          (iv) availability of matching funds.
            (4) Public notice and comment.--Before requesting any 
        disbursements under paragraph (2), the Joint State-Federal 
        Agency Board shall--
                    (A) notify members of the public, including local 
                governments; and
                    (B) provide opportunity for public comment.

    (d) Use.--
            (1) Principal.--The principal of the Trust shall be 
        inviolate.
            (2) Earnings.--Earnings on amounts in the Trust shall be 
        used to carry out subsection (b) and to administer the Trust and 
        Citizen Advisory Board.
            (3) Local purposes.--Not more than 50 percent of the income 
        from the Trust in any year shall be used outside the watershed 
        of the Missouri River in the State, from Holter Dam upstream to 
        the confluence of the Jefferson River, Gallatin River, and 
        Madison River.

    (e) Management.--Land and interests in land acquired under this 
section shall be managed for the purpose described in subsection (b).

SEC. 1008. CANYON FERRY-BROADWATER COUNTY TRUST.

    (a) Establishment.--The Commissioners shall establish a nonprofit 
charitable permanent perpetual public trust to be known as the ``Canyon 
Ferry-Broadwater County Trust'' (referred to in this section as the 
``Trust'').
    (b) Priority of Trust Establishment.--
            (1) Condition to sale.--No sale of property under section 4 
        shall be made until at least $3,000,000, or a lesser amount as 
        offset by in-kind contributions made before full funding of the 
        trust, is deposited as the initial corpus of the Trust.
            (2) In-kind contributions.--
                    (A) In general.--In-kind contributions--
                          (i) shall be approved in advance by the 
                      Commissioners;
                          (ii) shall be made in Broadwater County;
                          (iii) shall be related to the improvement of 
                      access to the portions of the Reservoir lying 
                      within Broadwater County or to the creation and 
                      improvement of new and existing recreational areas 
                      within Broadwater County; and
                          (iv) shall not include any contribution made 
                      by Broadwater County.
                    (B) Approval.--Approval by the Commissioners of an 
                in-kind contribution under subparagraph (A) shall 
                include approval of the value, nature, and type of the 
                contribution and of the entity that makes the 
                contribution.
            (3) Interest.--Notwithstanding any other provision of this 
        Act, all interest earned on the principal of the Trust shall

[[Page 112 STAT. 2681-718]]

        be reinvested and considered part of its corpus until the 
        condition stated in paragraph (1) is met.

    (c) Trust Management.--
            (1) Trust manager.--The Trust shall be managed by a 
        nonprofit foundation or other independent trustee to be selected 
        by the Commissioners.
            (2) Use.--The Trust manager shall invest the corpus of the 
        Trust and disburse funds as follows:
                    (A) Principal.--A sum not to exceed $500,000 may be 
                expended from the corpus to pay for the planning and 
                construction of a harbor at the Silo's recreation area.
                    (B) Interest.--The balance of the Trust shall be 
                held and the income shall be expended annually for the 
                improvement of access to the portions of the Reservoir 
                lying within Broadwater County, Montana, and for the 
                creation and improvement of new and existing 
                recreational areas within Broadwater County.
            (3) Disbursement.--The Trust manager--
                    (A) shall approve or reject any request for 
                disbursement; and
                    (B) shall not make any expenditure except on the 
                recommendation of the advisory committee established 
                under subsection (d).

    (d) Advisory Committee.--
            (1) Establishment.--The Commissioners shall appoint an 
        advisory committee consisting of not fewer than 3 nor more than 
        5 persons.
            (2) Duties.--The advisory committee shall meet on a regular 
        basis to establish priorities and make requests for the 
        disbursement of funds to the Trust manager.
            (3) Approval by the commissioners.--The advisory committee 
        shall recommend only such expenditures as are approved by the 
        Commissioners.

    (e) No Offset.--Neither the corpus nor the income of the Trust shall 
be used to reduce or replace the regular operating expenses of the 
Secretary at the Reservoir, unless approved by the Commissioners.

SEC. 1009. AUTHORIZATION.

    (a) In General.--The Secretary is authorized to--
            (1) investigate, plan, construct, operate, and maintain 
        public recreational facilities on land withdrawn or acquired for 
        the development of the project;
            (2) conserve the scenery, the natural historic, 
        paleontologic, and archaeologic objects, and the wildlife on the 
        land;
            (3) provide for public use and enjoyment of the land and of 
        the water areas created by the project by such means as are 
        consistent with but subordinate to the purposes of the project; 
        and
            (4) investigate, plan, construct, operate, and maintain 
        facilities for the conservation of fish and wildlife resources.

    (b) Costs.--The costs (including operation and maintenance costs) of 
carrying out subsection (a) shall be nonreimbursable and nonreturnable 
under Federal reclamation law.

[[Page 112 STAT. 2681-719]]

TITLE XI--MORATORIUM ON CERTAIN <> TAXES

SEC. 1100. SHORT TITLE.

      This title may be cited as the ``Internet Tax Freedom Act''.

SEC. 1101. MORATORIUM.

      (a) Moratorium.--No State or political subdivision thereof shall 
impose any of the following taxes during the period beginning on October 
1, 1998, and ending 3 years after the date of the enactment of this 
Act--
            (1) taxes on Internet access, unless such tax was generally 
        imposed and actually enforced prior to October 1, 1998; and
            (2) multiple or discriminatory taxes on electronic commerce.
      (b) Preservation of State and Local Taxing Authority.--Except as 
provided in this section, nothing in this title shall be construed to 
modify, impair, or supersede, or authorize the modification, impairment, 
or superseding of, any State or local law pertaining to taxation that is 
otherwise permissible by or under the Constitution of the United States 
or other Federal law and in effect on the date of enactment of this Act.
      (c) Liabilities and Pending Cases.--Nothing in this title affects 
liability for taxes accrued and enforced before the date of enactment of 
this Act, nor does this title affect ongoing litigation relating to such 
taxes.
      (d) Definition of Generally Imposed and Actually Enforced.--For 
purposes of this section, a tax has been generally imposed and actually 
enforced prior to October 1, 1998, if, before that date, the tax was 
authorized by statute and either--
            (1) a provider of Internet access services had a reasonable 
        opportunity to know by virtue of a rule or other public 
        proclamation made by the appropriate administrative agency of 
        the State or political subdivision thereof, that such agency has 
        interpreted and applied such tax to Internet access services; or
            (2) a State or political subdivision thereof generally 
        collected such tax on charges for Internet access.
      (e) Exception to Moratorium.--
            (1) In general.--Subsection (a) shall also not apply in the 
        case of any person or entity who knowingly and with knowledge of 
        the character of the material, in interstate or foreign commerce 
        by means of the World Wide Web, makes any communication for 
        commercial purposes that is available to any minor and that 
        includes any material that is harmful to minors unless such 
        person or entity has restricted access by minors to material 
        that is harmful to minors--
                    (A) by requiring use of a credit card, debit 
                account, adult access code, or adult personal 
                identification number;
                    (B) by accepting a digital certificate that verifies 
                age; or
                    (C) by any other reasonable measures that are 
                feasible under available technology.
            (2) Scope of exception.--For purposes of paragraph (1), a 
        person shall not be considered to making a communication for 
        commercial purposes of material to the extent that the person 
        is--
                    (A) a telecommunications carrier engaged in the 
                provision of a telecommunications service;

[[Page 112 STAT. 2681-720]]

                    (B) a person engaged in the business of providing an 
                Internet access service;
                    (C) a person engaged in the business of providing an 
                Internet information location tool; or
                    (D) similarly engaged in the transmission, storage, 
                retrieval, hosting, formatting, or translation (or any 
                combination thereof) of a communication made by another 
                person, without selection or alteration of the 
                communication.
            (3) Definitions.--In this subsection:
                    (A) By means of the world wide web.--The term ``by 
                means of the World Wide Web'' means by placement of 
                material in a computer server-based file archive so that 
                it is publicly accessible, over the Internet, using 
                hypertext transfer protocol, file transfer protocol, or 
                other similar protocols.
                    (B) Commercial purposes; engaged in the business.--
                          (i) Commercial purposes.--A person shall be 
                      considered to make a communication for commercial 
                      purposes only if such person is engaged in the 
                      business of making such communications.
                          (ii) Engaged in the business.--The term 
                      ``engaged in the business'' means that the person 
                      who makes a communication, or offers to make a 
                      communication, by means of the World Wide Web, 
                      that includes any material that is harmful to 
                      minors, devotes time, attention, or labor to such 
                      activities, as a regular course of such person's 
                      trade or business, with the objective of earning a 
                      profit as a result of such activities (although it 
                      is not necessary that the person make a profit or 
                      that the making or offering to make such 
                      communications be the person's sole or principal 
                      business or source of income). A person may be 
                      considered to be engaged in the business of 
                      making, by means of the World Wide Web, 
                      communications for commercial purposes that 
                      include material that is harmful to minors, only 
                      if the person knowingly causes the material that 
                      is harmful to minors to be posted on the World 
                      Wide Web or knowingly solicits such material to be 
                      posted on the World Wide Web.
                    (C) Internet.--The term ``Internet'' means 
                collectively the myriad of computer and 
                telecommunications facilities, including equipment and 
                operating software, which comprise the interconnected 
                world-wide network of networks that employ the 
                Transmission Control Protocol/Internet Protocol, or any 
                predecessor or successor protocols to such protocol, to 
                communicate information of all kinds by wire or radio.
                    (D) Internet access service.--The term ``Internet 
                access service'' means a service that enables users to 
                access content, information, electronic mail, or other 
                services offered over the Internet and may also include 
                access to proprietary content, information, and other 
                services as part of a package of services offered to 
                consumers. Such term does not include telecommunications 
                services.
                    (E) Internet information location tool.--The term 
                ``Internet information location tool'' means a service 
                that

[[Page 112 STAT. 2681-721]]

                refers or links users to an online location on the World 
                Wide Web. Such term includes directories, indices, 
                references, pointers, and hypertext links.
                    (F) Material that is harmful to minors.--The term 
                ``material that is harmful to minors'' means any 
                communication, picture, image, graphic image file, 
                article, recording, writing, or other matter of any kind 
                that is obscene or that--
                          (i) the average person, applying contemporary 
                      community standards, would find, taking the 
                      material as a whole and with respect to minors, is 
                      designed to appeal to, or is designed to pander 
                      to, the prurient interest;
                          (ii) depicts, describes, or represents, in a 
                      manner patently offensive with respect to minors, 
                      an actual or simulated sexual act or sexual 
                      contact, an actual or simulated normal or 
                      perverted sexual act, or a lewd exhibition of the 
                      genitals or post-pubescent female breast; and
                          (iii) taken as a whole, lacks serious 
                      literary, artistic, political, or scientific value 
                      for minors.
                    (G) Minor.--The term ``minor'' means any person 
                under 17 years of age.
                    (H) Telecommunications carrier; telecommunications 
                service.--The terms ``telecommunications carrier'' and 
                ``telecommunications service'' have the meanings given 
                such terms in section 3 of the Communications Act of 
                1934 (47 U.S.C. 153).
      (f) Additional Exception to Moratorium.--
            (1) In general.--Subsection (a) shall also not apply with 
        respect to an Internet access provider, unless, at the time of 
        entering into an agreement with a customer for the provision of 
        Internet access services, such provider offers such customer 
        (either for a fee or at no charge) screening software that is 
        designed to permit the customer to limit access to material on 
        the Internet that is harmful to minors.
            (2) Definitions.--In this subsection:
                    (A) Internet access provider.--The term `Internet 
                access provider' means a person engaged in the business 
                of providing a computer and communications facility 
                through which a customer may obtain access to the 
                Internet, but does not include a common carrier to the 
                extent that it provides only telecommunications 
                services.
                    (B) Internet access services.--The term `Internet 
                access services' means the provision of computer and 
                communications services through which a customer using a 
                computer and a modem or other communications device may 
                obtain access to the Internet, but does not include 
                telecommunications services provided by a common 
                carrier.
                    (C) Screening software.--The term ``screening 
                software'' means software that is designed to permit a 
                person to limit access to material on the Internet that 
                is harmful to minors.
            (3) Applicability.--Paragraph (1) shall apply to agreements 
        for the provision of Internet access services entered into on or 
        after the date that is 6 months after the date of enactment of 
        this Act.

[[Page 112 STAT. 2681-722]]

SEC. 1102. ADVISORY COMMISSION ON ELECTRONIC COMMERCE.

    (a) Establishment of Commission.--There is established a commission 
to be known as the Advisory Commission on Electronic Commerce (in this 
title referred to as the ``Commission''). The Commission shall--
            (1) be composed of 19 members appointed in accordance with 
        subsection (b), including the chairperson who shall be selected 
        by the members of the Commission from among themselves; and
            (2) conduct its business in accordance with the provisions 
        of this title.

    (b) Membership.--
            (1) In general.--The Commissioners shall serve for the life 
        of the Commission. The membership of the Commission shall be as 
        follows:
                    (A) 3 representatives from the Federal Government, 
                comprised of the Secretary of Commerce, the Secretary of 
                the Treasury, and the United States Trade Representative 
                (or their respective delegates).
                    (B) 8 representatives from State and local 
                governments (one such representative shall be from a 
                State or local government that does not impose a sales 
                tax and one representative shall be from a State that 
                does not impose an income tax).
                    (C) 8 representatives of the electronic commerce 
                industry (including small business), telecommunications 
                carriers, local retail businesses, and consumer groups, 
                comprised of--
                          (i) 5 individuals appointed by the Majority 
                      Leader of the Senate;
                          (ii) 3 individuals appointed by the Minority 
                      Leader of the Senate;
                          (iii) 5 individuals appointed by the Speaker 
                      of the House of Representatives; and
                          (iv) 3 individuals appointed by the Minority 
                      Leader of the House of Representatives.
            (2) Appointments.--Appointments to the Commission shall be 
        made not later than 45 days after the date of the enactment of 
        this Act. The chairperson shall be selected not later than 60 
        days after the date of the enactment of this Act.
            (3) Vacancies.--Any vacancy in the Commission shall not 
        affect its powers, but shall be filled in the same manner as the 
        original appointment.

    (c) Acceptance of Gifts and Grants.--The Commission may accept, use, 
and dispose of gifts or grants of services or property, both real and 
personal, for purposes of aiding or facilitating the work of the 
Commission. Gifts or grants not used at the expiration of the Commission 
shall be returned to the donor or grantor.
    (d) Other Resources.--The Commission shall have reasonable access to 
materials, resources, data, and other information from the Department of 
Justice, the Department of Commerce, the Department of State, the 
Department of the Treasury, and the Office of the United States Trade 
Representative. The Commission shall also have reasonable access to use 
the facilities of any such Department or Office for purposes of 
conducting meetings.
    (e) Sunset.--The Commission shall terminate 18 months after the date 
of the enactment of this Act.

[[Page 112 STAT. 2681-723]]

    (f) Rules of the Commission.--
            (1) Quorum.--Nine members of the Commission shall constitute 
        a quorum for conducting the business of the Commission.
            (2) Meetings.--Any meetings held by the Commission shall be 
        duly noticed at least 14 days in advance and shall be open to 
        the public.
            (3) Opportunities to testify.--The Commission shall provide 
        opportunities for representatives of the general public, 
        taxpayer groups, consumer groups, and State and local government 
        officials to testify.
            (4) Additional rules.--The Commission may adopt other rules 
        as needed.

    (g) Duties of the Commission.--
            (1) In general.--The Commission shall conduct a thorough 
        study of Federal, State and local, and international taxation 
        and tariff treatment of transactions using the Internet and 
        Internet access and other comparable intrastate, interstate or 
        international sales activities.
            (2) Issues to be studied.--The Commission may include in the 
        study under subsection (a)--
                    (A) an examination of--
                          (i) barriers imposed in foreign markets on 
                      United States providers of property, goods, 
                      services, or information engaged in electronic 
                      commerce and on United States providers of 
                      telecommunications services; and
                          (ii) how the imposition of such barriers will 
                      affect United States consumers, the 
                      competitiveness of United States citizens 
                      providing property, goods, services, or 
                      information in foreign markets, and the growth and 
                      maturing of the Internet;
                    (B) an examination of the collection and 
                administration of consumption taxes on electronic 
                commerce in other countries and the United States, and 
                the impact of such collection on the global economy, 
                including an examination of the relationship between the 
                collection and administration of such taxes when the 
                transaction uses the Internet and when it does not;
                    (C) an examination of the impact of the Internet and 
                Internet access (particularly voice transmission) on the 
                revenue base for taxes imposed under section 4251 of the 
                Internal Revenue Code of 1986;
                    (D) an examination of model State legislation that--
                          (i) would provide uniform definitions of 
                      categories of property, goods, service, or 
                      information subject to or exempt from sales and 
                      use taxes; and
                          (ii) would ensure that Internet access 
                      services, online services, and communications and 
                      transactions using the Internet, Internet access 
                      service, or online services would be treated in a 
                      tax and technologically neutral manner relative to 
                      other forms of remote sales;
                    (E) an examination of the effects of taxation, 
                including the absence of taxation, on all interstate 
                sales transactions, including transactions using the 
                Internet, on retail businesses and on State and local 
                governments, which examination may include a review of 
                the efforts of State

[[Page 112 STAT. 2681-724]]

                and local governments to collect sales and use taxes 
                owed on in-State purchases from out-of-State sellers; 
                and
                    (F) the examination of ways to simplify Federal and 
                State and local taxes imposed on the provision of 
                telecommunications services.
            (3) Effect on the communications act of 1934.--Nothing in 
        this section shall include an examination of any fees or charges 
        imposed by the Federal Communications Commission or States 
        related to--
                    (A) obligations under the Communications Act of 1934 
                (47 U.S.C. 151 et seq.); or
                    (B) the implementation of the Telecommunications Act 
                of 1996 (or of amendments made by that Act).
      (h) National Tax Association Communications and Electronic 
Commerce Tax Project.--The Commission shall, to the extent possible, 
ensure that its work does not undermine the efforts of the National Tax 
Association Communications and Electronic Commerce Tax Project.

SEC. 1103. REPORT.

      Not later than 18 months after the date of the enactment of this 
Act, the Commission shall transmit to Congress for its consideration a 
report reflecting the results, including such legislative 
recommendations as required to address the findings of the Commission's 
study under this title. Any recommendation agreed to by the Commission 
shall be tax and technologically neutral and apply to all forms of 
remote commerce. No finding or recommendation shall be included in the 
report unless agreed to by at least two-thirds of the members of the 
Commission serving at the time the finding or recommendation is made.

SEC. 1104. DEFINITIONS.

      For the purposes of this title:
            (1) Bit tax.--The term ``bit tax'' means any tax on 
        electronic commerce expressly imposed on or measured by the 
        volume of digital information transmitted electronically, or the 
        volume of digital information per unit of time transmitted 
        electronically, but does not include taxes imposed on the 
        provision of telecommunications services.
            (2) Discriminatory tax.--The term ``discriminatory tax'' 
        means--
                    (A) any tax imposed by a State or political 
                subdivision thereof on electronic commerce that--
                          (i) is not generally imposed and legally 
                      collectible by such State or such political 
                      subdivision on transactions involving similar 
                      property, goods, services, or information 
                      accomplished through other means;
                          (ii) is not generally imposed and legally 
                      collectible at the same rate by such State or such 
                      political subdivision on transactions involving 
                      similar property, goods, services, or information 
                      accomplished through other means, unless the rate 
                      is lower as part of a phase-out of the tax over 
                      not more than a 5-year period;
                          (iii) imposes an obligation to collect or pay 
                      the tax on a different person or entity than in 
                      the case of transactions involving similar 
                      property, goods, services, or information 
                      accomplished through other means;

[[Page 112 STAT. 2681-725]]

                          (iv) establishes a classification of Internet 
                      access service providers or online service 
                      providers for purposes of establishing a higher 
                      tax rate to be imposed on such providers than the 
                      tax rate generally applied to providers of similar 
                      information services delivered through other 
                      means; or
                    (B) any tax imposed by a State or political 
                subdivision thereof, if--
                          (i) except with respect to a tax (on Internet 
                      access) that was generally imposed and actually 
                      enforced prior to October 1, 1998, the sole 
                      ability to access a site on a remote seller's out-
                      of-State computer server is considered a factor in 
                      determining a remote seller's tax collection 
                      obligation; or
                          (ii) a provider of Internet access service or 
                      online services is deemed to be the agent of a 
                      remote seller for determining tax collection 
                      obligations solely as a result of--
                                    (I) the display of a remote seller's 
                                information or content on the out-of-
                                State computer server of a provider of 
                                Internet access service or online 
                                services; or
                                    (II) the processing of orders 
                                through the out-of-State computer server 
                                of a provider of Internet access service 
                                or online services.
            (3) Electronic commerce.--The term ``electronic commerce'' 
        means any transaction conducted over the Internet or through 
        Internet access, comprising the sale, lease, license, offer, or 
        delivery of property, goods, services, or information, whether 
        or not for consideration, and includes the provision of Internet 
        access.
            (4) Internet.--The term ``Internet'' means collectively the 
        myriad of computer and telecommunications facilities, including 
        equipment and operating software, which comprise the 
        interconnected world-wide network of networks that employ the 
        Transmission Control Protocol/Internet Protocol, or any 
        predecessor or successor protocols to such protocol, to 
        communicate information of all kinds by wire or radio.
            (5) Internet access.--The term ``Internet access'' means a 
        service that enables users to access content, information, 
        electronic mail, or other services offered over the Internet, 
        and may also include access to proprietary content, information, 
        and other services as part of a package of services offered to 
        users. Such term does not include telecommunications services.
            (6) Multiple tax.--
                    (A) In general.--The term ``multiple tax'' means any 
                tax that is imposed by one State or political 
                subdivision thereof on the same or essentially the same 
                electronic commerce that is also subject to another tax 
                imposed by another State or political subdivision 
                thereof (whether or not at the same rate or on the same 
                basis), without a credit (for example, a resale 
                exemption certificate) for taxes paid in other 
                jurisdictions.
                    (B) Exception.--Such term shall not include a sales 
                or use tax imposed by a State and 1 or more political 
                subdivisions thereof on the same electronic commerce or

[[Page 112 STAT. 2681-726]]

                a tax on persons engaged in electronic commerce which 
                also may have been subject to a sales or use tax 
                thereon.
                    (C) Sales or use tax.--For purposes of subparagraph 
                (B), the term ``sales or use tax'' means a tax that is 
                imposed on or incident to the sale, purchase, storage, 
                consumption, distribution, or other use of tangible 
                personal property or services as may be defined by laws 
                imposing such tax and which is measured by the amount of 
                the sales price or other charge for such property or 
                service.
            (7) State.--The term ``State'' means any of the several 
        States, the District of Columbia, or any commonwealth, 
        territory, or possession of the United States.
            (8) Tax.--
                    (A) In general.--The term ``tax'' means--
                          (i) any charge imposed by any governmental 
                      entity for the purpose of generating revenues for 
                      governmental purposes, and is not a fee imposed 
                      for a specific privilege, service, or benefit 
                      conferred; or
                          (ii) the imposition on a seller of an 
                      obligation to collect and to remit to a 
                      governmental entity any sales or use tax imposed 
                      on a buyer by a governmental entity.
                    (B) Exception.--Such term does not include any 
                franchise fee or similar fee imposed by a State or local 
                franchising authority, pursuant to section 622 or 653 of 
                the Communications Act of 1934 (47 U.S.C. 542, 573), or 
                any other fee related to obligations or 
                telecommunications carriers under the Communications Act 
                of 1934 (47 U.S.C. 151 et seq.).
            (9) Telecommunications service.--The term 
        ``telecommunications service'' has the meaning given such term 
        in section 3(46) of the Communications Act of 1934 (47 U.S.C. 
        153(46)) and includes communications services (as defined in 
        section 4251 of the Internal Revenue Code of 1986).
            (10) Tax on internet access.--The term ``tax on Internet 
        access'' means a tax on Internet access, including the 
        enforcement or application of any new or preexisting tax on the 
        sale or use of Internet services unless such tax was generally 
        imposed and actually enforced prior to October 1, 1998.

                       TITLE XII--OTHER PROVISIONS

SEC. 1201. DECLARATION THAT INTERNET SHOULD BE FREE OF NEW FEDERAL 
            TAXES.

    It is the sense of Congress that no new Federal taxes similar to the 
taxes described in section 1101(a) should be enacted with respect to the 
Internet and Internet access during the moratorium provided in such 
section.

SEC. 1202. NATIONAL TRADE ESTIMATE.

    Section 181 of the Trade Act of 1974 (19 U.S.C. 2241) is amended--
            (1) in subsection (a)(1)--
                    (A) in subparagraph (A)--
                          (i) by striking ``and'' at the end of clause 
                      (i);
                          (ii) by inserting ``and'' at the end of clause 
                      (ii); and

[[Page 112 STAT. 2681-727]]

                          (iii) by inserting after clause (ii) the 
                      following new clause:
                          ``(iii) United States electronic commerce,''; 
                      and
                    (B) in subparagraph (C)--
                          (i) by striking ``and'' at the end of clause 
                      (i);
                          (ii) by inserting ``and'' at the end of clause 
                      (ii);
                          (iii) by inserting after clause (ii) the 
                      following new clause:
                          ``(iii) the value of additional United States 
                      electronic commerce,''; and
                          (iv) by inserting ``or transacted with,'' 
                      after ``or invested in'';
            (2) in subsection (a)(2)(E)--
                    (A) by striking ``and'' at the end of clause (i);
                    (B) by inserting ``and'' at the end of clause (ii); 
                and
                    (C) by inserting after clause (ii) the following new 
                clause:
                          ``(iii) the value of electronic commerce 
                      transacted with,''; and
            (3) by adding at the end the following new subsection:

    ``(d) Electronic Commerce.--For purposes of this section, the term 
`electronic commerce' has the meaning given that term in section 1104(3) 
of the Internet Tax Freedom Act.''.

SEC. 1203. <> DECLARATION THAT THE INTERNET 
            SHOULD BE FREE OF FOREIGN TARIFFS, TRADE BARRIERS, AND OTHER 
            RESTRICTIONS.

    (a) In General.--It is the sense of Congress that the President 
should seek bilateral, regional, and multilateral agreements to remove 
barriers to global electronic commerce through the World Trade 
Organization, the Organization for Economic Cooperation and Development, 
the Trans-Atlantic Economic Partnership, the Asia Pacific Economic 
Cooperation forum, the Free Trade Area of the America, the North 
American Free Trade Agreement, and other appropriate venues.
    (b) Negotiating Objectives.--The negotiating objectives of the 
United States shall be--
            (1) to assure that electronic commerce is free from--
                    (A) tariff and nontariff barriers;
                    (B) burdensome and discriminatory regulation and 
                standards; and
                    (C) discriminatory taxation; and
            (2) to accelerate the growth of electronic commerce by 
        expanding market access opportunities for--
                    (A) the development of telecommunications 
                infrastructure;
                    (B) the procurement of telecommunications equipment;
                    (C) the provision of Internet access and 
                telecommunications services; and
                    (D) the exchange of goods, services, and digitalized 
                information.

    (c) Electronic Commerce.--For purposes of this section, the term 
``electronic commerce'' has the meaning given that term in section 
1104(3).

[[Page 112 STAT. 2681-728]]

SEC. 1204. NO EXPANSION OF TAX <> AUTHORITY.

    Nothing in this title shall be construed to expand the duty of any 
person to collect or pay taxes beyond that which existed immediately 
before the date of the enactment of this Act.

SEC. 1205. <> PRESERVATION OF AUTHORITY.

    Nothing in this title shall limit or otherwise affect the 
implementation of the Telecommunications Act of 1996 (Public Law 104-
104) or the amendments made by such Act.

SEC. 1206. <> SEVERABILITY.

    If any provision of this title, or any amendment made by this title, 
or the application of that provision to any person or circumstance, is 
held by a court of competent jurisdiction to violate any provision of 
the Constitution of the United States, then the other provisions of that 
title, and the application of that provision to other persons and 
circumstances, shall not be affected.

TITLE <> XIII--
CHILDREN'S ONLINE PRIVACY PROTECTION

SEC. 1301. <> SHORT TITLE.

    This title may be cited as the ``Children's Online Privacy 
Protection Act of 1998''.

SEC. 1302. <> DEFINITIONS.

    In this title:
            (1) Child.--The term ``child'' means an individual under the 
        age of 13.
            (2) Operator.--The term ``operator''--
                    (A) means any person who operates a website located 
                on the Internet or an online service and who collects or 
                maintains personal information from or about the users 
                of or visitors to such website or online service, or on 
                whose behalf such information is collected or 
                maintained, where such website or online service is 
                operated for commercial purposes, including any person 
                offering products or services for sale through that 
                website or online service, involving commerce--
                          (i) among the several States or with 1 or more 
                      foreign nations;
                          (ii) in any territory of the United States or 
                      in the District of Columbia, or between any such 
                      territory and--
                                    (I) another such territory; or
                                    (II) any State or foreign nation; or
                          (iii) between the District of Columbia and any 
                      State, territory, or foreign nation; but
                    (B) does not include any nonprofit entity that would 
                otherwise be exempt from coverage under section 5 of the 
                Federal Trade Commission Act (15 U.S.C. 45).
            (3) Commission.--The term ``Commission'' means the Federal 
        Trade Commission.
            (4) Disclosure.--The term ``disclosure'' means, with respect 
        to personal information--
                    (A) the release of personal information collected 
                from a child in identifiable form by an operator for any 
                purpose, except where such information is provided to a 
                person other than the operator who provides support for 
                the

[[Page 112 STAT. 2681-729]]

                internal operations of the website and does not disclose 
                or use that information for any other purpose; and
                    (B) making personal information collected from a 
                child by a website or online service directed to 
                children or with actual knowledge that such information 
                was collected from a child, publicly available in 
                identifiable form, by any means including by a public 
                posting, through the Internet, or through--
                          (i) a home page of a website;
                          (ii) a pen pal service;
                          (iii) an electronic mail service;
                          (iv) a message board; or
                          (v) a chat room.
            (5) Federal agency.--The term ``Federal agency'' means an 
        agency, as that term is defined in section 551(1) of title 5, 
        United States Code.
            (6) Internet.--The term ``Internet'' means collectively the 
        myriad of computer and telecommunications facilities, including 
        equipment and operating software, which comprise the 
        interconnected world-wide network of networks that employ the 
        Transmission Control Protocol/Internet Protocol, or any 
        predecessor or successor protocols to such protocol, to 
        communicate information of all kinds by wire or radio.
            (7) Parent.--The term ``parent'' includes a legal guardian.
            (8) Personal information.--The term ``personal information'' 
        means individually identifiable information about an individual 
        collected online, including--
                    (A) a first and last name;
                    (B) a home or other physical address including 
                street name and name of a city or town;
                    (C) an e-mail address;
                    (D) a telephone number;
                    (E) a Social Security number;
                    (F) any other identifier that the Commission 
                determines permits the physical or online contacting of 
                a specific individual; or
                    (G) information concerning the child or the parents 
                of that child that the website collects online from the 
                child and combines with an identifier described in this 
                paragraph.
            (9) Verifiable parental consent.--The term ``verifiable 
        parental consent'' means any reasonable effort (taking into 
        consideration available technology), including a request for 
        authorization for future collection, use, and disclosure 
        described in the notice, to ensure that a parent of a child 
        receives notice of the operator's personal information 
        collection, use, and disclosure practices, and authorizes the 
        collection, use, and disclosure, as applicable, of personal 
        information and the subsequent use of that information before 
        that information is collected from that child.
            (10) Website or online service directed to children.--
                    (A) In general.--The term ``website or online 
                service directed to children'' means--
                          (i) a commercial website or online service 
                      that is targeted to children; or
                          (ii) that portion of a commercial website or 
                      online service that is targeted to children.

[[Page 112 STAT. 2681-730]]

                    (B) Limitation.--A commercial website or online 
                service, or a portion of a commercial website or online 
                service, shall not be deemed directed to children solely 
                for referring or linking to a commercial website or 
                online service directed to children by using information 
                location tools, including a directory, index, reference, 
                pointer, or hypertext link.
            (11) Person.--The term ``person'' means any individual, 
        partnership, corporation, trust, estate, cooperative, 
        association, or other entity.
            (12) Online contact information.--The term ``online contact 
        information'' means an e-mail address or another substantially 
        similar identifier that permits direct contact with a person 
        online.

SEC. 1303. <> REGULATION OF UNFAIR AND DECEPTIVE 
            ACTS AND PRACTICES IN CONNECTION WITH THE COLLECTION AND USE 
            OF PERSONAL INFORMATION FROM AND ABOUT CHILDREN ON THE 
            INTERNET.
      (a) Acts Prohibited.--
            (1) In general.--It is unlawful for an operator of a website 
        or online service directed to children, or any operator that has 
        actual knowledge that it is collecting personal information from 
        a child, to collect personal information from a child in a 
        manner that violates the regulations prescribed under subsection 
        (b).
            (2) Disclosure to parent protected.--Notwithstanding 
        paragraph (1), neither an operator of such a website or online 
        service nor the operator's agent shall be held to be liable 
        under any Federal or State law for any disclosure made in good 
        faith and following reasonable procedures in responding to a 
        request for disclosure of personal information under subsection 
        (b)(1)(B)(iii) to the parent of a child.
      (b) Regulations.--
            (1) In general.--Not later than 1 year after the date of the 
        enactment of this Act, the Commission shall promulgate under 
        section 553 of title 5, United States Code, regulations that--
                    (A) require the operator of any website or online 
                service directed to children that collects personal 
                information from children or the operator of a website 
                or online service that has actual knowledge that it is 
                collecting personal information from a child--
                          (i) <> to provide notice on the 
                      website of what information is collected from 
                      children by the operator, how the operator uses 
                      such information, and the operator's disclosure 
                      practices for such information; and
                          (ii) to obtain verifiable parental consent for 
                      the collection, use, or disclosure of personal 
                      information from children;
                    (B) require the operator to provide, upon request of 
                a parent under this subparagraph whose child has 
                provided personal information to that website or online 
                service, upon proper identification of that parent, to 
                such parent--
                          (i) a description of the specific types of 
                      personal information collected from the child by 
                      that operator;
                          (ii) the opportunity at any time to refuse to 
                      permit the operator's further use or maintenance 
                      in

[[Page 112 STAT. 2681-731]]

                      retrievable form, or future online collection, of 
                      personal information from that child; and
                          (iii) notwithstanding any other provision of 
                      law, a means that is reasonable under the 
                      circumstances for the parent to obtain any 
                      personal information collected from that child;
                    (C) prohibit conditioning a child's participation in 
                a game, the offering of a prize, or another activity on 
                the child disclosing more personal information than is 
                reasonably necessary to participate in such activity; 
                and
                    (D) require the operator of such a website or online 
                service to establish and maintain reasonable procedures 
                to protect the confidentiality, security, and integrity 
                of personal information collected from children.
            (2) When consent not required.--The regulations shall 
        provide that verifiable parental consent under paragraph 
        (1)(A)(ii) is not required in the case of--
                    (A) online contact information collected from a 
                child that is used only to respond directly on a one-
                time basis to a specific request from the child and is 
                not used to recontact the child and is not maintained in 
                retrievable form by the operator;
                    (B) a request for the name or online contact 
                information of a parent or child that is used for the 
                sole purpose of obtaining parental consent or providing 
                notice under this section and where such information is 
                not maintained in retrievable form by the operator if 
                parental consent is not obtained after a reasonable 
                time;
                    (C) online contact information collected from a 
                child that is used only to respond more than once 
                directly to a specific request from the child and is not 
                used to recontact the child beyond the scope of that 
                request--
                          (i) if, before any additional response after 
                      the initial response to the child, the operator 
                      uses reasonable efforts to provide a parent notice 
                      of the online contact information collected from 
                      the child, the purposes for which it is to be 
                      used, and an opportunity for the parent to request 
                      that the operator make no further use of the 
                      information and that it not be maintained in 
                      retrievable form; or
                          (ii) without notice to the parent in such 
                      circumstances as the Commission may determine are 
                      appropriate, taking into consideration the 
                      benefits to the child of access to information and 
                      services, and risks to the security and privacy of 
                      the child, in regulations promulgated under this 
                      subsection;
                    (D) the name of the child and online contact 
                information (to the extent reasonably necessary to 
                protect the safety of a child participant on the site)--
                          (i) used only for the purpose of protecting 
                      such safety;
                          (ii) not used to recontact the child or for 
                      any other purpose; and
                          (iii) not disclosed on the site,
                if the operator uses reasonable efforts to provide a 
                parent notice of the name and online contact information 
                collected from the child, the purposes for which it is 
                to be used,

[[Page 112 STAT. 2681-732]]

                and an opportunity for the parent to request that the 
                operator make no further use of the information and that 
                it not be maintained in retrievable form; or
                    (E) the collection, use, or dissemination of such 
                information by the operator of such a website or online 
                service necessary--
                          (i) to protect the security or integrity of 
                      its website;
                          (ii) to take precautions against liability;
                          (iii) to respond to judicial process; or
                          (iv) to the extent permitted under other 
                      provisions of law, to provide information to law 
                      enforcement agencies or for an investigation on a 
                      matter related to public safety.
            (3) Termination of service.--The regulations shall permit 
        the operator of a website or an online service to terminate 
        service provided to a child whose parent has refused, under the 
        regulations prescribed under paragraph (1)(B)(ii), to permit the 
        operator's further use or maintenance in retrievable form, or 
        future online collection, of personal information from that 
        child.

    (c) Enforcement.--Subject to sections 1304 and 1306, a violation of 
a regulation prescribed under subsection (a) shall be treated as a 
violation of a rule defining an unfair or deceptive act or practice 
prescribed under section 18(a)(1)(B) of the Federal Trade Commission Act 
(15 U.S.C. 57a(a)(1)(B)).
    (d) Inconsistent State Law.--No State or local government may impose 
any liability for commercial activities or actions by operators in 
interstate or foreign commerce in connection with an activity or action 
described in this title that is inconsistent with the treatment of those 
activities or actions under this section.

SEC. 1304. <> SAFE HARBORS.

    (a) Guidelines.--An operator may satisfy the requirements of 
regulations issued under section 1303(b) by following a set of self-
regulatory guidelines, issued by representatives of the marketing or 
online industries, or by other persons, approved under subsection (b).
    (b) Incentives.--
            (1) Self-regulatory incentives.--In prescribing regulations 
        under section 1303, the Commission shall provide incentives for 
        self-regulation by operators to implement the protections 
        afforded children under the regulatory requirements described in 
        subsection (b) of that section.
            (2) Deemed compliance.--Such incentives shall include 
        provisions for ensuring that a person will be deemed to be in 
        compliance with the requirements of the regulations under 
        section 1303 if that person complies with guidelines that, after 
        notice and comment, are approved by the Commission upon making a 
        determination that the guidelines meet the requirements of the 
        regulations issued under section 1303.
            (3) Expedited response to requests.--The Commission shall 
        act upon requests for safe harbor treatment within 180 days of 
        the filing of the request, and shall set forth in writing its 
        conclusions with regard to such requests.

    (c) Appeals.--Final action by the Commission on a request for 
approval of guidelines, or the failure to act within 180 days on a 
request for approval of guidelines, submitted under subsection

[[Page 112 STAT. 2681-733]]

(b) may be appealed to a district court of the United States of 
appropriate jurisdiction as provided for in section 706 of title 5, 
United States Code.

SEC. 1305. <> ACTIONS BY STATES.
      (a) In General.--
            (1) Civil actions.--In any case in which the attorney 
        general of a State has reason to believe that an interest of the 
        residents of that State has been or is threatened or adversely 
        affected by the engagement of any person in a practice that 
        violates any regulation of the Commission prescribed under 
        section 1303(b), the State, as parens patriae, may bring a civil 
        action on behalf of the residents of the State in a district 
        court of the United States of appropriate jurisdiction to--
                    (A) enjoin that practice;
                    (B) enforce compliance with the regulation;
                    (C) obtain damage, restitution, or other 
                compensation on behalf of residents of the State; or
                    (D) obtain such other relief as the court may 
                consider to be appropriate.
            (2) Notice.--
                    (A) In general.--Before filing an action under 
                paragraph (1), the attorney general of the State 
                involved shall provide to the Commission--
                          (i) written notice of that action; and
                          (ii) a copy of the complaint for that action.
                    (B) Exemption.--
                          (i) In general.--Subparagraph (A) shall not 
                      apply with respect to the filing of an action by 
                      an attorney general of a State under this 
                      subsection, if the attorney general determines 
                      that it is not feasible to provide the notice 
                      described in that subparagraph before the filing 
                      of the action.
                          (ii) Notification.--In an action described in 
                      clause (i), the attorney general of a State shall 
                      provide notice and a copy of the complaint to the 
                      Commission at the same time as the attorney 
                      general files the action.

    (b) Intervention.--
            (1) In general.--On receiving notice under subsection 
        (a)(2), the Commission shall have the right to intervene in the 
        action that is the subject of the notice.
            (2) Effect of intervention.--If the Commission intervenes in 
        an action under subsection (a), it shall have the right--
                    (A) to be heard with respect to any matter that 
                arises in that action; and
                    (B) to file a petition for appeal.
            (3) Amicus curiae.--Upon application to the court, a person 
        whose self-regulatory guidelines have been approved by the 
        Commission and are relied upon as a defense by any defendant to 
        a proceeding under this section may file amicus curiae in that 
        proceeding.

    (c) Construction.--For purposes of bringing any civil action under 
subsection (a), nothing in this title shall be construed to prevent an 
attorney general of a State from exercising the powers conferred on the 
attorney general by the laws of that State to--

[[Page 112 STAT. 2681-734]]

            (1) conduct investigations;
            (2) administer oaths or affirmations; or
            (3) compel the attendance of witnesses or the production of 
        documentary and other evidence.
      (d) Actions by the Commission.--In any case in which an action is 
instituted by or on behalf of the Commission for violation of any 
regulation prescribed under section 1303, no State may, during the 
pendency of that action, institute an action under subsection (a) 
against any defendant named in the complaint in that action for 
violation of that regulation.
      (e) Venue; Service of Process.--
            (1) Venue.--Any action brought under subsection (a) may be 
        brought in the district court of the United States that meets 
        applicable requirements relating to venue under section 1391 of 
        title 28, United States Code.
            (2) Service of process.--In an action brought under 
        subsection (a), process may be served in any district in which 
        the defendant--
                    (A) is an inhabitant; or
                    (B) may be found.

SEC. 1306. <> ADMINISTRATION AND APPLICABILITY OF 
            ACT.
      (a) In General.--Except as otherwise provided, this title shall be 
enforced by the Commission under the Federal Trade Commission Act (15 
U.S.C. 41 et seq.).
      (b) Provisions.--Compliance with the requirements imposed under 
this title shall be enforced under--
            (1) section 8 of the Federal Deposit Insurance Act (12 
        U.S.C. 1818), in the case of--
                    (A) national banks, and Federal branches and Federal 
                agencies of foreign banks, by the Office of the 
                Comptroller of the Currency;
                    (B) member banks of the Federal Reserve System 
                (other than national banks), branches and agencies of 
                foreign banks (other than Federal branches, Federal 
                agencies, and insured State branches of foreign banks), 
                commercial lending companies owned or controlled by 
                foreign banks, and organizations operating under section 
                25 or 25(a) of the Federal Reserve Act (12 U.S.C. 601 et 
                seq. and 611 et. seq.), by the Board; and
                    (C) banks insured by the Federal Deposit Insurance 
                Corporation (other than members of the Federal Reserve 
                System) and insured State branches of foreign banks, by 
                the Board of Directors of the Federal Deposit Insurance 
                Corporation;
            (2) section 8 of the Federal Deposit Insurance Act (12 
        U.S.C. 1818), by the Director of the Office of Thrift 
        Supervision, in the case of a savings association the deposits 
        of which are insured by the Federal Deposit Insurance 
        Corporation;
            (3) the Federal Credit Union Act (12 U.S.C. 1751 et seq.) by 
        the National Credit Union Administration Board with respect to 
        any Federal credit union;
            (4) part A of subtitle VII of title 49, United States Code, 
        by the Secretary of Transportation with respect to any air 
        carrier or foreign air carrier subject to that part;
            (5) the Packers and Stockyards Act, 1921 (7 U.S.C. 181 et. 
        seq.) (except as provided in section 406 of that Act (7

[[Page 112 STAT. 2681-735]]

        U.S.C. 226, 227)), by the Secretary of Agriculture with respect 
        to any activities subject to that Act; and
            (6) the Farm Credit Act of 1971 (12 U.S.C. 2001 et seq.) by 
        the Farm Credit Administration with respect to any Federal land 
        bank, Federal land bank association, Federal intermediate credit 
        bank, or production credit association.

    (c) Exercise of Certain Powers.--For the purpose of the exercise by 
any agency referred to in subsection (a) of its powers under any Act 
referred to in that subsection, a violation of any requirement imposed 
under this title shall be deemed to be a violation of a requirement 
imposed under that Act. In addition to its powers under any provision of 
law specifically referred to in subsection (a), each of the agencies 
referred to in that subsection may exercise, for the purpose of 
enforcing compliance with any requirement imposed under this title, any 
other authority conferred on it by law.
    (d) Actions by the Commission.--The Commission shall prevent any 
person from violating a rule of the Commission under section 1303 in the 
same manner, by the same means, and with the same jurisdiction, powers, 
and duties as though all applicable terms and provisions of the Federal 
Trade Commission Act (15 U.S.C. 41 et seq.) were incorporated into and 
made a part of this title. Any entity that violates such rule shall be 
subject to the penalties and entitled to the privileges and immunities 
provided in the Federal Trade Commission Act in the same manner, by the 
same means, and with the same jurisdiction, power, and duties as though 
all applicable terms and provisions of the Federal Trade Commission Act 
were incorporated into and made a part of this title.
    (e) Effect on Other Laws.--Nothing contained in the Act shall be 
construed to limit the authority of the Commission under any other 
provisions of law.

SEC. 1307. <> REVIEW.

    Not later than 5 years after the effective date of the regulations 
initially issued under section 1303, the Commission shall--
            (1) review the implementation of this title, including the 
        effect of the implementation of this title on practices relating 
        to the collection and disclosure of information relating to 
        children, children's ability to obtain access to information of 
        their choice online, and on the availability of websites 
        directed to children; and
            (2) <> prepare and submit to Congress a 
        report on the results of the review under paragraph (1).

SEC. 1308. <> EFFECTIVE DATE.

    Sections 1303(a), 1305, and 1306 of this title take effect on the 
later of--
            (1) the date that is 18 months after the date of enactment 
        of this Act; or
            (2) the date on which the Commission rules on the first 
        application filed for safe harbor treatment under section 1304 
        if the Commission does not rule on the first such application 
        within one year after the date of enactment of this Act, but in 
        no case later than the date that is 30 months after the date of 
        enactment of this Act.

[[Page 112 STAT. 2681-736]]

TITLE <> XIV--CHILD 
ONLINE PROTECTION

SEC. 1401. SHORT TITLE.

    This title may be cited as the ``Child Online Protection Act''.

SEC. 1402. <> CONGRESSIONAL FINDINGS.

    The Congress finds that--
            (1) while custody, care, and nurture of the child resides 
        first with the parent, the widespread availability of the 
        Internet presents opportunities for minors to access materials 
        through the World Wide Web in a manner that can frustrate 
        parental supervision or control;
            (2) the protection of the physical and psychological well-
        being of minors by shielding them from materials that are 
        harmful to them is a compelling governmental interest;
            (3) to date, while the industry has developed innovative 
        ways to help parents and educators restrict material that is 
        harmful to minors through parental control protections and self-
        regulation, such efforts have not provided a national solution 
        to the problem of minors accessing harmful material on the World 
        Wide Web;
            (4) a prohibition on the distribution of material harmful to 
        minors, combined with legitimate defenses, is currently the most 
        effective and least restrictive means by which to satisfy the 
        compelling government interest; and
            (5) notwithstanding the existence of protections that limit 
        the distribution over the World Wide Web of material that is 
        harmful to minors, parents, educators, and industry must 
        continue efforts to find ways to protect children from being 
        exposed to harmful material found on the Internet.

SEC. 1403. REQUIREMENT TO RESTRICT ACCESS BY MINORS TO MATERIALS 
            COMMERCIALLY DISTRIBUTED BY MEANS OF THE WORLD WIDE WEB THAT 
            ARE HARMFUL TO MINORS.

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

``SEC. 231. <> RESTRICTION OF ACCESS BY MINORS TO 
            MATERIALS COMMERCIALLY DISTRIBUTED BY MEANS OF WORLD WIDE 
            WEB THAT ARE HARMFUL TO MINORS.

    ``(a) Requirement To Restrict Access.--
            ``(1) Prohibited conduct.--Whoever knowingly and with 
        knowledge of the character of the material, in interstate or 
        foreign commerce by means of the World Wide Web, makes any 
        communication for commercial purposes that is available to any 
        minor and that includes any material that is harmful to minors 
        shall be fined not more than $50,000, imprisoned not more than 6 
        months, or both.
            ``(2) Intentional violations.--In addition to the penalties 
        under paragraph (1), whoever intentionally violates such 
        paragraph shall be subject to a fine of not more than $50,000 
        for each violation. For purposes of this paragraph, each day of 
        violation shall constitute a separate violation.
            ``(3) Civil penalty.--In addition to the penalties under 
        paragraphs (1) and (2), whoever violates paragraph (1) shall be 
        subject to a civil penalty of not more than $50,000 for

[[Page 112 STAT. 2681-737]]

        each violation. For purposes of this paragraph, each day of 
        violation shall constitute a separate violation.

    ``(b) Inapplicability of Carriers and Other Service Providers.--For 
purposes of subsection (a), a person shall not be considered to make any 
communication for commercial purposes to the extent that such person 
is--
            ``(1) a telecommunications carrier engaged in the provision 
        of a telecommunications service;
            ``(2) a person engaged in the business of providing an 
        Internet access service;
            ``(3) a person engaged in the business of providing an 
        Internet information location tool; or
            ``(4) similarly engaged in the transmission, storage, 
        retrieval, hosting, formatting, or translation (or any 
        combination thereof) of a communication made by another person, 
        without selection or alteration of the content of the 
        communication, except that such person's deletion of a 
        particular communication or material made by another person in a 
        manner consistent with subsection (c) or section 230 shall not 
        constitute such selection or alteration of the content of the 
        communication.
      ``(c) Affirmative Defense.--
            ``(1) Defense.--It is an affirmative defense to prosecution 
        under this section that the defendant, in good faith, has 
        restricted access by minors to material that is harmful to 
        minors--
                    ``(A) by requiring use of a credit card, debit 
                account, adult access code, or adult personal 
                identification number;
                    ``(B) by accepting a digital certificate that 
                verifies age; or
                    ``(C) by any other reasonable measures that are 
                feasible under available technology.
            ``(2) Protection for use of defenses.--No cause of action 
        may be brought in any court or administrative agency against any 
        person on account of any activity that is not in violation of 
        any law punishable by criminal or civil penalty, and that the 
        person has taken in good faith to implement a defense authorized 
        under this subsection or otherwise to restrict or prevent the 
        transmission of, or access to, a communication specified in this 
        section.
      ``(d) Privacy Protection Requirements.--
            ``(1) Disclosure of information limited.--A person making a 
        communication described in subsection (a)--
                    ``(A) shall not disclose any information collected 
                for the purposes of restricting access to such 
                communications to individuals 17 years of age or older 
                without the prior written or electronic consent of--
                          ``(i) the individual concerned, if the 
                      individual is an adult; or
                          ``(ii) the individual's parent or guardian, if 
                      the individual is under 17 years of age; and
                    ``(B) shall take such actions as are necessary to 
                prevent unauthorized access to such information by a 
                person other than the person making such communication 
                and the recipient of such communication.
            ``(2) Exceptions.--A person making a communication described 
        in subsection (a) may disclose such information if the 
        disclosure is--

[[Page 112 STAT. 2681-738]]

                    ``(A) necessary to make the communication or conduct 
                a legitimate business activity related to making the 
                communication; or
                    ``(B) made pursuant to a court order authorizing 
                such disclosure.
      ``(e) Definitions.--For purposes of this subsection, the following 
definitions shall apply:
            ``(1) By means of the world wide web.--The term `by means of 
        the World Wide Web' means by placement of material in a computer 
        server-based file archive so that it is publicly accessible, 
        over the Internet, using hypertext transfer protocol or any 
        successor protocol.
            ``(2) Commercial purposes; engaged in the business.--
                    ``(A) Commercial purposes.--A person shall be 
                considered to make a communication for commercial 
                purposes only if such person is engaged in the business 
                of making such communications.
                    ``(B) Engaged in the business.--The term `engaged in 
                the business' means that the person who makes a 
                communication, or offers to make a communication, by 
                means of the World Wide Web, that includes any material 
                that is harmful to minors, devotes time, attention, or 
                labor to such activities, as a regular course of such 
                person's trade or business, with the objective of 
                earning a profit as a result of such activities 
                (although it is not necessary that the person make a 
                profit or that the making or offering to make such 
                communications be the person's sole or principal 
                business or source of income). A person may be 
                considered to be engaged in the business of making, by 
                means of the World Wide Web, communications for 
                commercial purposes that include material that is 
                harmful to minors, only if the person knowingly causes 
                the material that is harmful to minors to be posted on 
                the World Wide Web or knowingly solicits such material 
                to be posted on the World Wide Web.
            ``(3) Internet.--The term `Internet' means the combination 
        of computer facilities and electromagnetic transmission media, 
        and related equipment and software, comprising the 
        interconnected worldwide network of computer networks that 
        employ the Transmission Control Protocol/Internet Protocol or 
        any successor protocol to transmit information.
            ``(4) Internet access service.--The term `Internet access 
        service' means a service that enables users to access content, 
        information, electronic mail, or other services offered over the 
        Internet, and may also include access to proprietary content, 
        information, and other services as part of a package of services 
        offered to consumers. Such term does not include 
        telecommunications services.
            ``(5) Internet information location tool.--The term 
        `Internet information location tool' means a service that refers 
        or links users to an online location on the World Wide Web. Such 
        term includes directories, indices, references, pointers, and 
        hypertext links.
            ``(6) Material that is harmful to minors.--The term 
        `material that is harmful to minors' means any communication, 
        picture, image, graphic image file, article, recording, writing, 
        or other matter of any kind that is obscene or that--

[[Page 112 STAT. 2681-739]]

                    ``(A) the average person, applying contemporary 
                community standards, would find, taking the material as 
                a whole and with respect to minors, is designed to 
                appeal to, or is designed to pander to, the prurient 
                interest;
                    ``(B) depicts, describes, or represents, in a manner 
                patently offensive with respect to minors, an actual or 
                simulated sexual act or sexual contact, an actual or 
                simulated normal or perverted sexual act, or a lewd 
                exhibition of the genitals or post-pubescent female 
                breast; and
                    ``(C) taken as a whole, lacks serious literary, 
                artistic, political, or scientific value for minors.
            ``(7) Minor.--The term `minor' means any person under 17 
        years of age.''.

SEC. 1404. NOTICE REQUIREMENT.

      (a) Notice.--Section 230 of the Communications Act of 1934 (47 
U.S.C. 230) is amended--
            (1) in subsection (d)(1), by inserting ``or 231'' after 
        ``section 223'';
            (2) by redesignating subsections (d) and (e) as subsections 
        (e) and (f), respectively; and
            (3) by inserting after subsection (c) the following new 
        subsection:
      ``(d) Obligations of Interactive Computer Service.--A provider of 
interactive computer service shall, at the time of entering an agreement 
with a customer for the provision of interactive computer service and in 
a manner deemed appropriate by the provider, notify such customer that 
parental control protections (such as computer hardware, software, or 
filtering services) are commercially available that may assist the 
customer in limiting access to material that is harmful to minors. Such 
notice shall identify, or provide the customer with access to 
information identifying, current providers of such protections.''.
      (b) Conforming Amendment.--Section 223(h)(2) of the Communications 
Act of 1934 (47 U.S.C. 223(h)(2)) is amended by striking ``230(e)(2)'' 
and inserting ``230(f)(2)''.

SEC. 1405. <> STUDY BY COMMISSION ON ONLINE 
            CHILD PROTECTION.
      (a) Establishment.--There is hereby established a temporary 
Commission to be known as the Commission on Online Child Protection (in 
this section referred to as the ``Commission'') for the purpose of 
conducting a study under this section regarding methods to help reduce 
access by minors to material that is harmful to minors on the Internet.
      (b) Membership.--The Commission shall be composed of 19 members, 
as follows:
            (1) Industry members.--The Commission shall include--
                    (A) 2 members who are engaged in the business of 
                providing Internet filtering or blocking services or 
                software;
                    (B) 2 members who are engaged in the business of 
                providing Internet access services;
                    (C) 2 members who are engaged in the business of 
                providing labeling or ratings services;
                    (D) 2 members who are engaged in the business of 
                providing Internet portal or search services;
                    (E) 2 members who are engaged in the business of 
                providing domain name registration services;

[[Page 112 STAT. 2681-740]]

                    (F) 2 members who are academic experts in the field 
                of technology; and
                    (G) 4 members who are engaged in the business of 
                making content available over the Internet.
            Of the members of the Commission by reason of each 
        subparagraph of this paragraph, an equal number shall be 
        appointed by the Speaker of the House of Representatives and by 
        the Majority Leader of the Senate.
            (2) Ex officio members.--The Commission shall include the 
        following officials:
                    (A) The Assistant Secretary (or the Assistant 
                Secretary's designee).
                    (B) The Attorney General (or the Attorney General's 
                designee).
                    (C) The Chairman of the Federal Trade Commission (or 
                the Chairman's designee).

    (c) Study.--
            (1) In general.--The Commission shall conduct a study to 
        identify technological or other methods that--
                    (A) will help reduce access by minors to material 
                that is harmful to minors on the Internet; and
                    (B) may meet the requirements for use as affirmative 
                defenses for purposes of section 231(c) of the 
                Communications Act of 1934 (as added by this title).
            Any methods so identified shall be used as the basis for 
        making legislative recommendations to the Congress under 
        subsection (d)(3).
            (2) Specific methods.--In carrying out the study, the 
        Commission shall identify and analyze various technological 
        tools and methods for protecting minors from material that is 
        harmful to minors, which shall include (without limitation)--
                    (A) a common resource for parents to use to help 
                protect minors (such as a ``one-click-away'' resource);
                    (B) filtering or blocking software or services;
                    (C) labeling or rating systems;
                    (D) age verification systems;
                    (E) the establishment of a domain name for posting 
                of any material that is harmful to minors; and
                    (F) any other existing or proposed technologies or 
                methods for reducing access by minors to such material.
            (3) Analysis.--In analyzing technologies and other methods 
        identified pursuant to paragraph (2), the Commission shall 
        examine--
                    (A) the cost of such technologies and methods;
                    (B) the effects of such technologies and methods on 
                law enforcement entities;
                    (C) the effects of such technologies and methods on 
                privacy;
                    (D) the extent to which material that is harmful to 
                minors is globally distributed and the effect of such 
                technologies and methods on such distribution;
                    (E) the accessibility of such technologies and 
                methods to parents; and
                    (F) such other factors and issues as the Commission 
                considers relevant and appropriate.

    (d) Report.--Not later than 1 year after the enactment of this Act, 
the Commission shall submit a report to the Congress

[[Page 112 STAT. 2681-741]]

containing the results of the study under this section, which shall 
include--
            (1) a description of the technologies and methods identified 
        by the study and the results of the analysis of each such 
        technology and method;
            (2) the conclusions and recommendations of the Commission 
        regarding each such technology or method;
            (3) recommendations for legislative or administrative 
        actions to implement the conclusions of the committee; and
            (4) a description of the technologies or methods identified 
        by the study that may meet the requirements for use as 
        affirmative defenses for purposes of section 231(c) of the 
        Communications Act of 1934 (as added by this title).

    (e) Staff and Resources.--The Assistant Secretary for Communication 
and Information of the Department of Commerce shall provide to the 
Commission such staff and resources as the Assistant Secretary 
determines necessary for the Commission to perform its duty efficiently 
and in accordance with this section.
    (f) Termination.--The Commission shall terminate 30 days after the 
submission of the report under subsection (d).
    (g) Inapplicability of Federal Advisory Committee Act.--The Federal 
Advisory Committee Act (5 U.S.C. App.) shall not apply to the 
Commission.

SEC. 1406. <> EFFECTIVE DATE.

    This title and the amendments made by this title shall take effect 
30 days after the date of enactment of this Act.

 TITLE <> XV--VACCINE INJURY COMPENSATION PROGRAM MODIFICATION ACT

SECTION 1501. SHORT TITLE.

    This title may be cited as the ``Vaccine Injury Compensation Program 
Modification Act''.

SEC. 1502. ELIMINATION OF THRESHOLD REQUIREMENT OF UNREIMBURSABLE 
            EXPENSES.

    Section 2111(c)(1)(D)(i) of the Public Health Service Act (42 U.S.C. 
300aa-11(c)(1)(D)(i)) is amended by striking ``and incurred 
unreimbursable expenses due in whole or in part to such illness, 
disability, injury, or condition in an amount greater than $1,000''.

SEC. 1503. INCLUSION OF ROTAVIRUS GASTROENTERITIS AS A TAXABLE VACCINE.

    (a) In General.--Section 4132(1) of the Internal Revenue Code of 
1986 <> (defining taxable vaccine) is amended by 
adding at the end the following new subparagraph:
                    ``(K) Any vaccine against rotavirus 
                gastroenteritis.''.

     <> (b) Effective Date.--
            (1) Sales.--The amendment made by this section shall apply 
        to sales after the date of the enactment of this Act.
            (2) Deliveries.--For purposes of paragraph (1), in the case 
        of sales on or before the date of the enactment of this Act for 
        which delivery is made after such date, the delivery date shall 
        be considered the sale date.

SEC. 1504. VACCINE INJURY COMPENSATION TRUST FUND.

    (a) Amendments Related to Section 904 of 1997 Act.--

[[Page 112 STAT. 2681-742]]

            (1) Paragraph (1) of section 9510(c) of the 1986 
        Code <> is amended to read as follows:
            ``(1) In general.--Amounts in the Vaccine Injury 
        Compensation Trust Fund shall be available, as provided in 
        appropriation Acts, only for--
                    ``(A) the payment of compensation under subtitle 2 
                of title XXI of the Public Health Service Act (as in 
                effect on August 6, 1997) for vaccine-related injury or 
                death with respect to any vaccine--
                          ``(i) which is administered after September 
                      30, 1988, and
                          ``(ii) which is a taxable vaccine (as defined 
                      in section 4132(a)(1)) at the time the vaccine was 
                      administered, or
                    ``(B) the payment of all expenses of administration 
                incurred by the Federal Government in administering such 
                subtitle.''.
            (2) Section 9510(b) of the 1986 Code is amended by adding at 
        the end the following new paragraph:
            ``(3) Limitation on transfers to vaccine injury compensation 
        trust fund.--No amount may be appropriated to the Vaccine Injury 
        Compensation Trust Fund on and after the date of any expenditure 
        from the Trust Fund which is not permitted by this section. The 
        determination of whether an expenditure is so permitted shall be 
        made without regard to--
                    ``(A) any provision of law which is not contained or 
                referenced in this title or in a revenue Act, and
                    ``(B) whether such provision of law is a 
                subsequently enacted provision or directly or indirectly 
                seeks to waive the application of this paragraph.''.

     <> (b) Effective Date.--The amendments 
made by this section shall take effect as if included in the provisions 
of the Taxpayer Relief Act of 1997 to which they relate.

  TITLE <> XVI--SERVICE 
CONNECTION FOR PERSIAN GULF WAR ILLNESSES

SEC. 1601. <> SHORT TITLE.

    This title may be cited as the ``Persian Gulf War Veterans Act of 
1998''.

SEC. 1602. PRESUMPTION OF SERVICE CONNECTION FOR ILLNESSES ASSOCIATED 
            WITH SERVICE IN THE PERSIAN GULF DURING THE PERSIAN GULF 
            WAR.

    (a) In General.--(1) Subchapter II of chapter 11 of title 38, United 
States Code, is amended by adding at the end the following:

``Sec. 1118. Presumptions of service connection for illnesses associated 
                        with service in the Persian Gulf during the 
                        Persian Gulf War

    ``(a)(1) For purposes of section 1110 of this title, and subject to 
section 1113 of this title, each illness, if any, described in paragraph 
(2) shall be considered to have been incurred in or aggravated by 
service referred to in that paragraph, notwithstanding that there is no 
record of evidence of such illness during the period of such service.

[[Page 112 STAT. 2681-743]]

    ``(2) An illness referred to in paragraph (1) is any diagnosed or 
undiagnosed illness that--
            ``(A) <> the Secretary determines in 
        regulations prescribed under this section to warrant a 
        presumption of service connection by reason of having a positive 
        association with exposure to a biological, chemical, or other 
        toxic agent, environmental or wartime hazard, or preventive 
        medicine or vaccine known or presumed to be associated with 
        service in the Armed Forces in the Southwest Asia theater of 
        operations during the Persian Gulf War; and
            ``(B) becomes manifest within the period, if any, prescribed 
        in such regulations in a veteran who served on active duty in 
        that theater of operations during that war and by reason of such 
        service was exposed to such agent, hazard, or medicine or 
        vaccine.

    ``(3) For purposes of this subsection, a veteran who served on 
active duty in the Southwest Asia theater of operations during the 
Persian Gulf War and has an illness described in paragraph (2) shall be 
presumed to have been exposed by reason of such service to the agent, 
hazard, or medicine or vaccine associated with the illness in the 
regulations prescribed under this section unless there is conclusive 
evidence to establish that the veteran was not exposed to the agent, 
hazard, or medicine or vaccine by reason of such service.

    ``(b)(1)(A) <> Whenever the Secretary makes a 
determination described in subparagraph (B), the Secretary shall 
prescribe regulations providing that a presumption of service connection 
is warranted for the illness covered by that determination for purposes 
of this section.

    ``(B) A determination referred to in subparagraph (A) is a 
determination based on sound medical and scientific evidence that a 
positive association exists between--
            ``(i) the exposure of humans or animals to a biological, 
        chemical, or other toxic agent, environmental or wartime hazard, 
        or preventive medicine or vaccine known or presumed to be 
        associated with service in the Southwest Asia theater of 
        operations during the Persian Gulf War; and
            ``(ii) the occurrence of a diagnosed or undiagnosed illness 
        in humans or animals.

    ``(2)(A) In making determinations for purposes of paragraph (1), the 
Secretary shall take into account--
            ``(i) the reports submitted to the Secretary by the National 
        Academy of Sciences under section 1603 of the Persian Gulf War 
        Veterans Act of 1998; and
            ``(ii) all other sound medical and scientific information 
        and analyses available to the Secretary.

    ``(B) In evaluating any report, information, or analysis for 
purposes of making such determinations, the Secretary shall take into 
consideration whether the results are statistically significant, are 
capable of replication, and withstand peer review.
    ``(3) An association between the occurrence of an illness in humans 
or animals and exposure to an agent, hazard, or medicine or vaccine 
shall be considered to be positive for purposes of this subsection if 
the credible evidence for the association is equal to or outweighs the 
credible evidence against the association.
    ``(c)(1) Not later than 60 days after the date on which the 
Secretary receives a report from the National Academy of Sciences

[[Page 112 STAT. 2681-744]]

under section 1603 of the Persian Gulf War Veterans Act of 1998, the 
Secretary shall determine whether or not a presumption of service 
connection is warranted for each illness, if any, covered by the report.
    ``(2) <> If the Secretary determines under this 
subsection that a presumption of service connection is warranted, the 
Secretary shall, not later than 60 days after making the determination, 
issue proposed regulations setting forth the Secretary's determination.

    ``(3)(A) <> If the Secretary 
determines under this subsection that a presumption of service 
connection is not warranted, the Secretary shall, not later than 60 days 
after making the determination, publish in the Federal Register a notice 
of the determination. The notice shall include an explanation of the 
scientific basis for the determination.

    ``(B) <> If an illness already presumed to be 
service connected under this section is subject to a determination under 
subparagraph (A), the Secretary shall, not later than 60 days after 
publication of the notice under that subparagraph, issue proposed 
regulations removing the presumption of service connection for the 
illness.

    ``(4) <> Not later than 90 days after the date 
on which the Secretary issues any proposed regulations under this 
subsection, the Secretary shall <> issue final 
regulations. Such regulations shall be effective on the date of 
issuance.

    ``(d) Whenever the presumption of service connection for an illness 
under this section is removed under subsection (c)--
            ``(1) a veteran who was awarded compensation for the illness 
        on the basis of the presumption before the effective date of the 
        removal of the presumption shall continue to be entitled to 
        receive compensation on that basis; and
            ``(2) a survivor of a veteran who was awarded dependency and 
        indemnity compensation for the death of a veteran resulting from 
        the illness on the basis of the presumption before that date 
        shall continue to be entitled to receive dependency and 
        indemnity compensation on that basis.

    ``(e) <> Subsections (b) through (d) shall 
cease to be effective 10 years after the first day of the fiscal year in 
which the National Academy of Sciences submits to the Secretary the 
first report under section 1603 of the Persian Gulf War Veterans Act of 
1998.''.

    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 1117 the 
following new item:

``1118. Presumptions of service connection for illnesses associated with 
           service in the Persian Gulf during the Persian Gulf War.''.

    (b) Conforming Amendments.--Section 1113 of title 38, United States 
Code, is amended--
            (1) by striking out ``or 1117'' each place it appears and 
        inserting in lieu thereof ``1117, or 1118''; and
            (2) in subsection (a), by striking out ``or 1116'' and 
        inserting in lieu thereof ``, 1116, or 1118''.

    (c) Compensation for Undiagnosed Gulf War Illnesses.--Section 1117 
of title 38, United States Code, is amended--
            (1) by redesignating subsections (c), (d), and (e) as 
        subsections (d), (e), and (f), respectively; and
            (2) by inserting after subsection (b) the following new 
        subsection (c):

[[Page 112 STAT. 2681-745]]

    ``(c)(1) Whenever the Secretary determines under section 1118(c) of 
this title that a presumption of service connection for an undiagnosed 
illness (or combination of undiagnosed illnesses) previously established 
under this section is no longer warranted--
            ``(A) a veteran who was awarded compensation under this 
        section for such illness (or combination of illnesses) on the 
        basis of the presumption shall continue to be entitled to 
        receive compensation under this section on that basis; and
            ``(B) a survivor of a veteran who was awarded dependency and 
        indemnity compensation for the death of a veteran resulting from 
        the disease on the basis of the presumption before that date 
        shall continue to be entitled to receive dependency and 
        indemnity compensation on that basis.

    ``(2) <> This subsection shall cease to be 
effective 10 years after the first day of the fiscal year in which the 
National Academy of Sciences submits to the Secretary the first report 
under section 1603 of the Persian Gulf War Veterans Act of 1998.''.

SEC. 1603. <> AGREEMENT WITH NATIONAL ACADEMY 
            OF SCIENCES.

    (a) Purpose.--The purpose of this section is to provide for the 
National Academy of Sciences, an independent nonprofit scientific 
organization with appropriate expertise, to review and evaluate the 
available scientific evidence regarding associations between illnesses 
and exposure to toxic agents, environmental or wartime hazards, or 
preventive medicines or vaccines associated with Gulf War service.
    (b) Agreement.--The Secretary of Veterans Affairs shall seek to 
enter into an agreement with the National Academy of Sciences for the 
Academy to perform the activities covered by this section. The Secretary 
shall seek to enter into the agreement not later than two months after 
the date of enactment of this Act.
    (c) Identification of Agents and Illnesses.--(1) Under the agreement 
under subsection (b), the National Academy of Sciences shall--
            (A) identify the biological, chemical, or other toxic 
        agents, environmental or wartime hazards, or preventive 
        medicines or vaccines to which members of the Armed Forces who 
        served in the Southwest Asia theater of operations during the 
        Persian Gulf War may have been exposed by reason of such 
        service; and
            (B) identify the illnesses (including diagnosed illnesses 
        and undiagnosed illnesses) that are manifest in such members.

    (2) In identifying illnesses under paragraph (1)(B), the Academy 
shall review and summarize the relevant scientific evidence regarding 
illnesses among the members described in paragraph (1)(A) and among 
other appropriate populations of individuals, including mortality, 
symptoms, and adverse reproductive health outcomes among such members 
and individuals.
    (d) Initial Consideration of Specific Agents.--(1) In identifying 
under subsection (c) the agents, hazards, or preventive medicines or 
vaccines to which members of the Armed Forces may have been exposed for 
purposes of the first report under subsection (i), the National Academy 
of Sciences shall consider, within the first six months after the date 
of enactment of this Act, the following:
            (A) The following organophosphorous pesticides:
                    (i) Chlorpyrifos.

[[Page 112 STAT. 2681-746]]

                    (ii) Diazinon.
                    (iii) Dichlorvos.
                    (iv) Malathion.
            (B) The following carbamate pesticides:
                    (i) Proxpur.
                    (ii) Carbaryl.
                    (iii) Methomyl.
            (C) The carbamate pyridostigmine bromide used as nerve agent 
        prophylaxis.
            (D) The following chlorinated hydrocarbon and other 
        pesticides and repellents:
                    (i) Lindane.
                    (ii) Pyrethrins.
                    (iii) Permethrins.
                    (iv) Rodenticides (bait).
                    (v) Repellent (DEET).
            (E) The following low-level nerve agents and precursor 
        compounds at exposure levels below those which produce 
        immediately apparent incapacitating symptoms:
                    (i) Sarin.
                    (ii) Tabun.
            (F) The following synthetic chemical compounds:
                    (i) Mustard agents at levels below those which cause 
                immediate blistering.
                    (ii) Volatile organic compounds.
                    (iii) Hydrazine.
                    (iv) Red fuming nitric acid.
                    (v) Solvents.
                    (vi) Uranium.
            (G) The following ionizing radiation:
                    (i) Depleted uranium.
                    (ii) Microwave radiation.
                    (iii) Radio frequency radiation.
            (H) The following environmental particulates and pollutants:
                    (i) Hydrogen sulfide.
                    (ii) Oil fire byproducts.
                    (iii) Diesel heater fumes.
                    (iv) Sand micro-particles.
            (I) Diseases endemic to the region (including the 
        following):
                    (i) Leishmaniasis.
                    (ii) Sandfly fever.
                    (iii) Pathogenic escherechia coli.
                    (iv) Shigellosis.
            (J) Time compressed administration of multiple live, 
        `attenuated', and toxoid vaccines.

    (2) The consideration of agents, hazards, and medicines and vaccines 
under paragraph (1) shall not preclude the Academy from identifying 
other agents, hazards, or medicines or vaccines to which members of the 
Armed Forces may have been exposed for purposes of any report under 
subsection (i).
    (3) <> Not later than six months after the date of 
enactment of this Act, the Academy shall submit to the designated 
congressional committees a report specifying the agents, hazards, and 
medicines and vaccines considered under paragraph (1).

    (e) Determinations of Associations Between Agents and Illnesses.--
(1) For each agent, hazard, or medicine or vaccine

[[Page 112 STAT. 2681-747]]

and illness identified under subsection (c), the National Academy of 
Sciences shall determine, to the extent that available scientific data 
permit meaningful determinations--
            (A) whether a statistical association exists between 
        exposure to the agent, hazard, or medicine or vaccine and the 
        illness, taking into account the strength of the scientific 
        evidence and the appropriateness of the scientific methodology 
        used to detect the association;
            (B) the increased risk of the illness among human or animal 
        populations exposed to the agent, hazard, or medicine or 
        vaccine; and
            (C) whether a plausible biological mechanism or other 
        evidence of a causal relationship exists between exposure to the 
        agent, hazard, or medicine or vaccine and the illness.

    (2) The Academy shall include in its reports under subsection (i) a 
full discussion of the scientific evidence and reasoning that led to its 
conclusions under this subsection.
    (f) Review of Potential Treatment Models for Certain Illnesses.--
Under the agreement under subsection (b), the National Academy of 
Sciences shall separately review, for each chronic undiagnosed illness 
identified under subsection (c)(1)(B) and for any other chronic illness 
that the Academy determines to warrant such review, the available 
scientific data in order to identify empirically valid models of 
treatment for such illnesses which employ successful treatment 
modalities for populations with similar symptoms.
    (g) Recommendations for Additional Scientific Studies.--(1) Under 
the agreement under subsection (b), the National Academy of Sciences 
shall make any recommendations that it considers appropriate for 
additional scientific studies (including studies relating to treatment 
models) to resolve areas of continuing scientific uncertainty relating 
to the health consequences of exposure to toxic agents, environmental or 
wartime hazards, or preventive medicines or vaccines associated with 
Gulf War service.
    (2) In making recommendations for additional studies, the Academy 
shall consider the available scientific data, the value and relevance of 
the information that could result from such studies, and the cost and 
feasibility of carrying out such studies.
    (h) Subsequent Reviews.--(1) Under the agreement under subsection 
(b), the National Academy of Sciences shall conduct on a periodic and 
ongoing basis additional reviews of the evidence and data relating to 
its activities under this section.
    (2) As part of each review under this subsection, the Academy 
shall--
            (A) conduct as comprehensive a review as is practicable of 
        the evidence referred to in subsection (c) and the data referred 
        to in subsections (e), (f), and (g) that became available since 
        the last review of such evidence and data under this section; 
        and
            (B) make determinations under the subsections referred to in 
        subparagraph (A) on the basis of the results of such review and 
        all other reviews previously conducted for purposes of this 
        section.

    (i) Reports.--(1) Under the agreement under subsection (b), the 
National Academy of Sciences shall submit to the committees and 
officials referred to in paragraph (5) periodic written reports 
regarding the Academy's activities under the agreement.

[[Page 112 STAT. 2681-748]]

    (2) The first report under paragraph (1) shall be submitted not 
later than 18 months after the date of enactment of this Act. That 
report shall include--
            (A) the determinations and discussion referred to in 
        subsection (e);
            (B) the results of the review of models of treatment under 
        subsection (f); and
            (C) any recommendations of the Academy under subsection (g).

    (3) Reports shall be submitted under this subsection at least once 
every two years, as measured from the date of the report under paragraph 
(2).
    (4) In any report under this subsection (other than the report under 
paragraph (2)), the Academy may specify an absence of meaningful 
developments in the scientific or medical community with respect to the 
activities of the Academy under this section during the 2-year period 
ending on the date of such report.

    (5) Reports under this subsection shall be submitted to the 
following:
            (A) The designated congressional committees.
            (B) The Secretary of Veterans Affairs.
            (C) The Secretary of Defense.
      (j) Sunset.--This section shall cease to be effective 10 years 
after the last day of the fiscal year in which the National Academy of 
Sciences submits the first report under subsection (i).
      (k) Alternative Contract Scientific Organization.--(1) If the 
Secretary is unable within the time period set forth in subsection (b) 
to enter into an agreement with the National Academy of Sciences for the 
purposes of this section on terms acceptable to the Secretary, the 
Secretary shall seek to enter into an agreement for purposes of this 
section with another appropriate scientific organization that is not 
part of the Government, operates as a not-for-profit entity, and has 
expertise and objectivity comparable to that of the National Academy of 
Sciences.
      (2) If the Secretary enters into an agreement with another 
organization under this subsection, any reference in this section and 
section 1118 of title 38, United States Code (as added by section 
1602(a)), to the National Academy of Sciences shall be treated as a 
reference to such other organization.

SEC. 1604. <> REPEAL OF INCONSISTENT PROVISIONS 
            OF LAW.
      In the event of the enactment, before, on, or after the date of 
the enactment of this Act, of section 101 of the Veterans Programs 
Enhancement Act of 1998, or any similar provision of law enacted during 
the second session of the 105th Congress requiring an agreement with the 
National Academy of Sciences regarding an evaluation of health 
consequences of service in Southwest Asia during the Persian Gulf War, 
such section 101 (or other provision of law) shall be treated as if 
never enacted, and shall have no force or effect.

SEC. 1605. <> DEFINITIONS.
      In this title:
            (1) The term ``toxic agent, environmental or wartime hazard, 
        or preventive medicine or vaccine associated with Gulf War 
        service'' means a biological, chemical, or other toxic agent, 
        environmental or wartime hazard, or preventive medicine or 
        vaccine that is known or presumed to be associated with service

[[Page 112 STAT. 2681-749]]

        in the Armed Forces in the Southwest Asia theater of operations 
        during the Persian Gulf War, whether such association arises as 
        a result of single, repeated, or sustained exposure and whether 
        such association arises through exposure singularly or in 
        combination.
            (2) The term ``designated congressional committees'' means 
        the following:
                    (A) The Committees on Veterans' Affairs and Armed 
                Services of the Senate.
                    (B) The Committees on Veterans' Affairs and National 
                Security of the House of Representatives.
            (3) The term ``Persian Gulf War'' has the meaning given that 
        term in section 101(33) of title 38, United States Code.

    TITLE <> XVII--GOVERNMENT PAPERWORK ELIMINATION ACT

SEC. 1701. SHORT TITLE.

      This title may be cited as the ``Government Paperwork Elimination 
Act''.

SEC. 1702. AUTHORITY OF OMB TO PROVIDE FOR ACQUISITION AND USE OF 
            ALTERNATIVE INFORMATION TECHNOLOGIES BY EXECUTIVE AGENCIES.

      Section 3504(a)(1)(B)(vi) of title 44, United States Code, is 
amended to read as follows:
                          ``(vi) the acquisition and use of information 
                      technology, including alternative information 
                      technologies that provide for electronic 
                      submission, maintenance, or disclosure of 
                      information as a substitute for paper and for the 
                      use and acceptance of electronic signatures.''.

SEC. 1703. PROCEDURES FOR USE AND ACCEPTANCE OF ELECTRONIC SIGNATURES BY 
            EXECUTIVE AGENCIES.

      (a) In General.--In order to fulfill the responsibility to 
administer the functions assigned under chapter 35 of title 44, United 
States Code, the provisions of the Clinger-Cohen Act of 1996 (divisions 
D and E of Public Law 104-106) and the amendments made by that Act, and 
the provisions of this title, the Director of the Office of Management 
and Budget shall, in consultation with the National Telecommunications 
and Information Administration and not later than 18 months after the 
date of enactment of this Act, develop procedures for the use and 
acceptance of electronic signatures by Executive agencies.
      (b) Requirements for Procedures.--(1) The procedures developed 
under subsection (a)--
            (A) shall be compatible with standards and technology for 
        electronic signatures that are generally used in commerce and 
        industry and by State governments;
            (B) may not inappropriately favor one industry or 
        technology;
            (C) shall ensure that electronic signatures are as reliable 
        as is appropriate for the purpose in question and keep intact 
        the information submitted;
            (D) shall provide for the electronic acknowledgment of 
        electronic forms that are successfully submitted; and
            (E) shall, to the extent feasible and appropriate, require 
        an Executive agency that anticipates receipt by electronic

[[Page 112 STAT. 2681-750]]

        means of 50,000 or more submittals of a particular form to take 
        all steps necessary to ensure that multiple methods of 
        electronic signatures are available for the submittal of such 
        form.
      (2) The Director shall ensure the compatibility of the procedures 
under paragraph (1)(A) in consultation with appropriate private bodies 
and State government entities that set standards for the use and 
acceptance of electronic signatures.

SEC. 1704. DEADLINE FOR IMPLEMENTATION BY EXECUTIVE AGENCIES OF 
            PROCEDURES FOR USE AND ACCEPTANCE OF ELECTRONIC SIGNATURES.

      In order to fulfill the responsibility to administer the functions 
assigned under chapter 35 of title 44, United States Code, the 
provisions of the Clinger-Cohen Act of 1996 (divisions D and E of Public 
Law 104-106) and the amendments made by that Act, and the provisions of 
this title, the Director of the Office of Management and Budget shall 
ensure that, commencing not later than five years after the date of 
enactment of this Act, Executive agencies provide--
            (1) for the option of the electronic maintenance, 
        submission, or disclosure of information, when practicable as a 
        substitute for paper; and
            (2) for the use and acceptance of electronic signatures, 
        when practicable.

SEC. 1705. ELECTRONIC STORAGE AND FILING OF EMPLOYMENT FORMS.

    In order to fulfill the responsibility to administer the functions 
assigned under chapter 35 of title 44, United States Code, the 
provisions of the Clinger-Cohen Act of 1996 (divisions D and E of Public 
Law 104-106) and the amendments made by that Act, and the provisions of 
this title, the Director of the Office of Management and Budget shall, 
not later than 18 months after the date of enactment of this Act, 
develop procedures to permit private employers to store and file 
electronically with Executive agencies forms containing information 
pertaining to the employees of such employers.

SEC. 1706. STUDY ON USE OF ELECTRONIC SIGNATURES.

    (a) Ongoing Study Required.--In order to fulfill the responsibility 
to administer the functions assigned under chapter 35 of title 44, 
United States Code, the provisions of the Clinger-Cohen Act of 1996 
(divisions D and E of Public Law 104-106) and the amendments made by 
that Act, and the provisions of this title, the Director of the Office 
of Management and Budget shall, in cooperation with the National 
Telecommunications and Information Administration, conduct an ongoing 
study of the use of electronic signatures under this title on--
            (1) paperwork reduction and electronic commerce;
            (2) individual privacy; and
            (3) the security and authenticity of transactions.

    (b) Reports.--The Director shall submit to Congress on a periodic 
basis a report describing the results of the study carried out under 
subsection (a).

[[Page 112 STAT. 2681-751]]

SEC. 1707. ENFORCEABILITY AND LEGAL EFFECT OF ELECTRONIC RECORDS.

    Electronic records submitted or maintained in accordance with 
procedures developed under this title, or electronic signatures or other 
forms of electronic authentication used in accordance with such 
procedures, shall not be denied legal effect, validity, or 
enforceability because such records are in electronic form.

SEC. 1708. DISCLOSURE OF INFORMATION.

    Except as provided by law, information collected in the provision of 
electronic signature services for communications with an executive 
agency, as provided by this title, shall only be used or disclosed by 
persons who obtain, collect, or maintain such information as a business 
or government practice, for the purpose of facilitating such 
communications, or with the prior affirmative consent of the person 
about whom the information pertains.

SEC. 1709. APPLICATION WITH INTERNAL REVENUE LAWS.

    No provision of this title shall apply to the Department of the 
Treasury or the Internal Revenue Service to the extent that such 
provision--
            (1) involves the administration of the internal revenue 
        laws; or
            (2) conflicts with any provision of the Internal Revenue 
        Service Restructuring and Reform Act of 1998 or the Internal 
        Revenue Code of 1986.

SEC. 1710. DEFINITIONS.

    For purposes of this title:
            (1) Electronic signature.--The term ``electronic signature'' 
        means a method of signing an electronic message that--
                    (A) identifies and authenticates a particular person 
                as the source of the electronic message; and
                    (B) indicates such person's approval of the 
                information contained in the electronic message.
            (2) Executive agency.--The term ``Executive agency'' has the 
        meaning given that term in section 105 of title 5, United States 
        Code.

DIVISION <> D--DRUG 
DEMAND REDUCTION ACT

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This division may be cited as the ``Drug Demand 
Reduction Act''.
    (b) Table of Contents.--The table of contents for this division is 
as follows:

Sec. 1. Short title; table of contents.

   TITLE I--TARGETED SUBSTANCE ABUSE PREVENTION AND TREATMENT PROGRAMS

           Subtitle A--National Youth Anti-Drug Media Campaign

Sec. 101. Short title.
Sec. 102. Requirement <> to conduct national media 
           campaign.

Sec. 103. Use of funds.
Sec. 104. Reports to Congress.
Sec. 105. Authorization of appropriations.

                 Subtitle B--Drug-Free Prisons and Jails

Sec. 111. Short title.

[[Page 112 STAT. 2681-752]]

Sec. 112. Purpose.
Sec. 113. Program authorization.
Sec. 114. Grant application.
Sec. 115. Uses of funds.
Sec. 116. Evaluation and recommendation report to Congress.
Sec. 117. Definitions.
Sec. 118. Authorization of appropriations.

             Subtitle C--Drug-Free Schools Quality Assurance

Sec. 121. Short title.
Sec. 122. Amendment to Safe and Drug-Free Schools and Communities Act.

             TITLE II--STATEMENT OF NATIONAL ANTIDRUG POLICY

      Subtitle A--Congressional Leadership in Community Coalitions

Sec. 201. Sense of Congress.

             Subtitle B--Rejection of Legalization of Drugs

Sec. 211. Sense of Congress.

  Subtitle C--Report on Streamlining Federal Prevention and Treatment 
                                 Efforts

Sec. 221. Report on streamlining Federal prevention and treatment 
           efforts.

   TITLE <> I--TARGETED 
SUBSTANCE ABUSE PREVENTION AND TREATMENT PROGRAMS

           Subtitle A--National Youth Anti-Drug Media Campaign

SEC. 101. <> SHORT TITLE.

    This subtitle may be cited as the ``Drug-Free Media Campaign Act of 
1998''.

SEC. 102. <> REQUIREMENT TO CONDUCT NATIONAL MEDIA 
            CAMPAIGN.

    (a) In General.--The Director of the Office of National Drug Control 
Policy (in this subtitle referred to as the ``Director'') shall conduct 
a national media campaign in accordance with this subtitle for the 
purpose of reducing and preventing drug abuse among young people in the 
United States.
    (b) Local Target Requirement.--The Director shall, to the maximum 
extent feasible, use amounts made available to carry out this subtitle 
under section 105 for media that focuses on, or includes specific 
information on, prevention or treatment resources for consumers within 
specific local areas.

SEC. 103. <> USE OF FUNDS.

    (a) Authorized Uses.--
            (1) In general.--Amounts made available to carry out this 
        subtitle for the support of the national media campaign may only 
        be used for--
                    (A) the purchase of media time and space;
                    (B) talent reuse payments;
                    (C) out-of-pocket advertising production costs;
                    (D) testing and evaluation of advertising;
                    (E) evaluation of the effectiveness of the media 
                campaign;
                    (F) the negotiated fees for the winning bidder on 
                request for proposals issued by the Office of National 
                Drug Control Policy;
                    (G) partnerships with community, civic, and 
                professional groups, and government organizations 
                related to the media campaign; and

[[Page 112 STAT. 2681-753]]

                    (H) entertainment industry collaborations to fashion 
                antidrug messages in motion pictures, television 
                programing, popular music, interactive (Internet and 
                new) media projects and activities, public information, 
                news media outreach, and corporate sponsorship and 
                participation.
            (2) Advertising.--In carrying out this subtitle, the 
        Director shall devote sufficient funds to the advertising 
        portion of the national media campaign to meet the stated reach 
        and frequency goals of the campaign.

    (b) Prohibitions.--None of the amounts made available under section 
105 may be obligated or expended--
            (1) to supplant current antidrug community based coalitions;
            (2) to supplant current pro bono public service time donated 
        by national and local broadcasting networks;
            (3) for partisan political purposes; or
            (4) to fund media campaigns that feature any elected 
        officials, persons seeking elected office, cabinet level 
        officials, or other Federal officials employed pursuant to 
        section 213 of Schedule C of title 5, Code of Federal 
        Regulations, unless the Director provides advance notice to the 
        Committees on Appropriations of the House of Representatives and 
        the Senate, the Committee on Government Reform and Oversight of 
        the House of Representatives and the Committee on the Judiciary 
        of the Senate.

    (c) Matching Requirement.--Amounts made available under section 105 
should be matched by an equal amount of non-Federal funds for the 
national media campaign, or be matched with in-kind contributions to the 
campaign of the same value.

SEC. 104. <> REPORTS TO CONGRESS.

    The Director shall--
            (1) submit to Congress on an annual basis a report on the 
        activities for which amounts made available under section 105 
        have been obligated during the preceding year, including 
        information for each quarter of such year, and on the specific 
        parameters of the national media campaign; and
            (2) not later than 1 year after the date of enactment of 
        this Act, submit to Congress a report on the effectiveness of 
        the national media campaign based on measurable outcomes 
        provided to Congress previously.

SEC. 105. <> AUTHORIZATION OF APPROPRIATIONS.

    There is authorized to be appropriated to the Office of National 
Drug Control Policy to carry out this subtitle $195,000,000 for each of 
fiscal years 1999 through 2002.

 Subtitle <> B--Drug-Free Prisons and Jails

SEC. 111. SHORT TITLE.

    This subtitle may be cited as the ``Drug-Free Prisons and Jails Act 
of 1998''.

SEC. 112. PURPOSE.

    The purpose of this subtitle is to provide for the establishment of 
model programs for comprehensive treatment of substance-involved 
offenders in the criminal justice system to reduce drug abuse and drug-
related crime, and reduce the costs of the criminal

[[Page 112 STAT. 2681-754]]

justice system, that can be successfully replicated by States and local 
units of government through a comprehensive evaluation.

SEC. 113. PROGRAM AUTHORIZATION.

    (a) Establishment.--The Director of the Bureau of Justice Assistance 
shall establish a model substance abuse treatment program for substance-
involved offenders by--
            (1) providing financial assistance to grant recipients 
        selected in accordance with section 114(b); and
            (2) evaluating the success of programs conducted pursuant to 
        this subtitle.

    (b) Grant Awards.--The Director may award not more than 5 grants to 
units of local government and not more than 5 grants to States.
    (c) Administrative Costs.--Not more than 5 percent of a grant award 
made pursuant to this subtitle may be used for administrative costs.

SEC. 114. GRANT APPLICATION.

    (a) Contents.--An application submitted by a unit of local 
government or a State for a grant award under this subtitle shall 
include each of the following:
            (1) Strategy.--A strategy to coordinate programs and 
        services for substance-involved offenders provided by the unit 
        of local government or the State, as the case may be, developed 
        in consultation with representatives from all components of the 
        criminal justice system within the jurisdiction, including 
        judges, law enforcement personnel, prosecutors, corrections 
        personnel, probation personnel, parole personnel, substance 
        abuse treatment personnel, and substance abuse prevention 
        personnel.
            (2) Certification.--A certification that--
                    (A) Federal funds made available under this subtitle 
                will not be used to supplant State or local funds, but 
                will be used to increase the amounts of such funds that 
                would, in the absence of Federal funds, be made 
                available for law enforcement activities; and
                    (B) the programs developed pursuant to this subtitle 
                meet all requirements of this subtitle.

    (b) Review and Approval.--Subject to section 113(b), the Director 
shall approve applications and make grant awards to units of local 
governments and States that show the most promise for accomplishing the 
purposes of this subtitle consistent with the provisions of section 115.

SEC. 115. USES OF FUNDS.

    A unit of local government or State that receives a grant award 
under this subtitle shall use such funds to provide comprehensive 
treatment programs to inmates in prisons or jails, including not less 
than 3 of the following:
            (1) Tailored treatment programs to meet the special needs of 
        different types of substance-involved offenders.
            (2) Random and frequent drug testing, including a system of 
        sanctions.
            (3) Training and assistance for corrections officers and 
        personnel to assist substance-involved offenders in correctional 
        facilities.

[[Page 112 STAT. 2681-755]]

            (4) Clinical assessment of incoming substance-involved 
        offenders.
            (5) Availability of religious and spiritual activity and 
        counseling to provide an environment that encourages recovery 
        from substance involvement in correctional facilities.
            (6) Education and vocational training.
            (7) A substance-free correctional facility policy.

SEC. 116. EVALUATION AND RECOMMENDATION REPORT TO CONGRESS.

    (a) Evaluation.--
             <> (1) In general.--The Director shall 
        enter into a contract, with an evaluating agency that has 
        demonstrated experience in the evaluation of substance abuse 
        treatment, to conduct an evaluation that incorporates the 
        criteria described in paragraph (2).
            (2) Evaluation criteria.--The Director, in consultation with 
        the Directors of the appropriate National Institutes of Health, 
        shall establish minimum criteria for evaluating each program. 
        Such criteria shall include--
                    (A) reducing substance abuse among participants;
                    (B) reducing recidivism among participants;
                    (C) cost effectiveness of providing services to 
                participants; and
                    (D) a data collection system that will produce data 
                comparable to that used by the Office of Applied Studies 
                of the Substance Abuse and Mental Health Services 
                Administration and the Bureau of Justice Statistics of 
                the Office of Justice Programs.

    (b) Report.--The Director shall submit to the appropriate 
committees, at the same time as the President's budget for fiscal year 
2001 is submitted, a report that--
            (1) describes the activities funded by grant awards under 
        this subtitle;
            (2) includes the evaluation submitted pursuant to subsection 
        (a); and
            (3) makes recommendations regarding revisions to the 
        authorization of the program, including extension, expansion, 
        application requirements, reduction, and termination.

SEC. 117. DEFINITIONS.

    In this subtitle:
            (1) Appropriate committees.--The term ``appropriate 
        committees'' means the Committees on the Judiciary and the 
        Committees on Appropriations of the House of Representatives and 
        the Senate.
            (2) Director.--The term ``Director'' means the Director of 
        the Bureau of Justice Assistance.
            (3) Substance-involved offender.--The term ``substance-
        involved offender'' means an individual under the supervision of 
        a State or local criminal justice system, awaiting trial or 
        serving a sentence imposed by the criminal justice system, who--
                    (A) violated or has been arrested for violating a 
                drug or alcohol law;
                    (B) was under the influence of alcohol or an illegal 
                drug at the time the crime was committed;
                    (C) stole property to buy illegal drugs; or

[[Page 112 STAT. 2681-756]]

                    (D) has a history of substance abuse and addiction.
            (4) Unit of local government.--The term ``unit of local 
        government'' means any city, county, township, town, borough, 
        parish, village, or other general purpose political subdivision 
        of a State, an Indian tribe which performs law enforcement 
        functions as determined by the Secretary of the Interior and any 
        agency of the District of Columbia government or the United 
        States Government performing law enforcement functions in and 
        for the District of Columbia, and the Trust Territory of the 
        Pacific Islands.

SEC. 118. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--There are authorized to be appropriated to carry 
out this subtitle from the Violent Crime Reduction Trust Fund as 
authorized by title 31 of the Violent Crime and Control and Law 
Enforcement Act of 1994 (42 U.S.C. 14211)--
            (1) for fiscal year 1999, $30,000,000; and
            (2) for fiscal year 2000, $20,000,000.

    (b) Reservation.--The Director may reserve each fiscal year not more 
than 20 percent of the funds appropriated pursuant to subsection (a) for 
activities required under section 116.

 Subtitle <> C--Drug-Free Schools Quality Assurance

SEC. 121. SHORT TITLE.

    This subtitle may be cited as the ``Drug-Free Schools Quality 
Assurance Act''.

SEC. 122. AMENDMENT TO SAFE AND DRUG-FREE SCHOOLS AND COMMUNITIES ACT.

    Subpart 3 of title IV of the Elementary and Secondary Education Act 
of 1965 (20 U.S.C. 7141 et seq.) is amended by adding at the end the 
following:

``SEC. 4134. <> QUALITY RATING.

    ``(a) In General.--The chief executive officer of each State, or in 
the case of a State in which the constitution or law of such State 
designates another individual, entity, or agency in the State to be 
responsible for education activities, such individual, entity, or 
agency, is authorized and encouraged--
            ``(1) to establish a standard of quality for drug, alcohol, 
        and tobacco prevention programs implemented in public elementary 
        schools and secondary schools in the State in accordance with 
        subsection (b); and
            ``(2) to identify and designate, upon application by a 
        public elementary school or secondary school, any such school 
        that achieves such standard as a quality program school.

    ``(b) Criteria.--The standard referred to in subsection (a) shall 
address, at a minimum--
            ``(1) a comparison of the rate of illegal use of drugs, 
        alcohol, and tobacco by students enrolled in the school for a 
        period of time to be determined by the chief executive officer 
        of the State;
            ``(2) the rate of suspensions or expulsions of students 
        enrolled in the school for drug, alcohol, or tobacco-related 
        offenses;
            ``(3) the effectiveness of the drug, alcohol, or tobacco 
        prevention program as proven by research;

[[Page 112 STAT. 2681-757]]

            ``(4) the involvement of parents and community members in 
        the design of the drug, alcohol, and tobacco prevention program; 
        and
            ``(5) the extent of review of existing community drug, 
        alcohol, and tobacco prevention programs before implementation 
        of the public school program.

    ``(c) Request for Quality Program School Designation.--A school that 
wishes to receive a quality program school designation shall submit a 
request and documentation of compliance with this section to the chief 
executive officer of the State or the individual, entity, or agency 
described in subsection (a), as the case may be.
    ``(d) Public Notification.--Not less than once a year, the chief 
executive officer of each State or the individual, entity, or agency 
described in subsection (a), as the case may be, shall make available to 
the public a list of the names of each public school in the State that 
has received a quality program school designation in accordance with 
this section.''.

             TITLE II--STATEMENT OF NATIONAL ANTIDRUG POLICY

      Subtitle A--Congressional Leadership in Community Coalitions

SEC. 201. SENSE OF CONGRESS.

    (a) Findings.--Congress finds the following:
            (1) Illegal drug use is dangerous to the physical well-being 
        of the Nation's youth.
            (2) Illegal drug use can destroy the lives of the Nation's 
        youth by diminishing their sense of morality and with it 
        everything in life that is important and worthwhile.
            (3) According to recently released national surveys, drug 
        use among the Nation's youth remains at alarmingly high levels.
            (4) National leadership is critical to conveying to the 
        Nation's youth the message that drug use is dangerous and wrong.
            (5) National leadership can help mobilize every sector of 
        the community to support the implementation of comprehensive, 
        sustainable, and effective programs to reduce drug abuse.
            (6) As of September 1, 1998, 76 Members of the House of 
        Representatives were establishing community-based antidrug 
        coalitions in their congressional districts or were actively 
        supporting such coalitions that already existed.
            (7) The individual Members of the House of Representatives 
        can best help their constituents prevent drug use among the 
        Nation's youth by establishing community-based antidrug 
        coalitions in their congressional districts or by actively 
        supporting such coalitions that already exist.

    (b) Sense of Congress.--It is the sense of Congress that the 
individual Members of the House of Representatives, including the 
Delegates and the Resident Commissioner, should establish community-
based antidrug coalitions in their congressional districts or should 
actively support any such coalitions that have been established.

[[Page 112 STAT. 2681-758]]

             Subtitle B--Rejection of Legalization of Drugs

SEC. 211. SENSE OF CONGRESS.

    (a) Findings.--Congress finds the following:
            (1) Illegal drug use is harmful and wrong.
            (2) Illegal drug use can kill the individuals involved or 
        cause the individuals to hurt or kill others, and such use 
        strips the individuals of their moral sense.
            (3) The greatest threat presented by such use is to the 
        youth of the United States, who are illegally using drugs in 
        increasingly greater numbers.
            (4) The people of the United States are more concerned about 
        illegal drug use and crimes associated with such use than with 
        any other current social problem.
            (5) Efforts to legalize or otherwise legitimize drug use 
        present a message to the youth of the United States that drug 
        use is acceptable.
            (6) Article VI, clause 2 of the Constitution of the United 
        States states that ``[t]his Constitution, and the laws of the 
        United States which shall be made in pursuance thereof; and all 
        treaties made, or which shall be made, under the authority of 
        the United States, shall be the supreme law of the land; and 
        judges in every state shall be bound thereby, any thing in the 
        Constitution or laws of any state to the contrary 
        notwithstanding.''.
            (7) The courts of the United States have repeatedly found 
        that any State law that conflicts with a Federal law or treaty 
        is preempted by such law or treaty.
            (8) The Controlled Substances Act (21 U.S.C. 801 et seq.) 
        strictly regulates the use and possession of drugs.
            (9) The United Nations Convention Against Illicit Traffic in 
        Narcotic Drugs and Psychotrophic Substances Treaty similarly 
        regulates the use and possession of drugs.
            (10) Any attempt to authorize under State law an activity 
        prohibited under such Treaty or the Controlled Substances Act 
        would conflict with that Treaty or Act.

    (b) Sense of Congress.--It is the sense of Congress that--
            (1) the several States, and the citizens of such States, 
        should reject the legalization of drugs through legislation, 
        ballot proposition, constitutional amendment, or any other 
        means; and
            (2) each State should make efforts to be a drug-free State.

  Subtitle C--Report on Streamlining Federal Prevention and Treatment 
                                 Efforts

SEC. 221. REPORT ON STREAMLINING FEDERAL <> PREVENTION AND TREATMENT EFFORTS.

    (a) Sense of Congress.--It is the sense of Congress that--
            (1) the efforts of the Federal Government to reduce the 
        demand for illegal drugs in the United States are frustrated by 
        the fragmentation of those efforts across multiple departments 
        and agencies; and
            (2) improvement of those efforts can best be achieved 
        through consolidation and coordination.

    (b) Report Requirement.--

[[Page 112 STAT. 2681-759]]

            (1) In general.--Not later than 18 months after the date of 
        enactment of this Act, the Director of the Office of National 
        Drug Control Policy shall prepare and submit to the appropriate 
        committees a report evaluating options for increasing the 
        efficacy of drug prevention and treatment programs and 
        activities by the Federal Government. Such option shall include 
        the merits of a consolidation of programs into a single agency, 
        transferring programs from 1 agency to another, and improving 
        coordinating mechanisms and authorities. The report shall also 
        include a thorough review of the activities and potential 
        consolidation of existing Federal drug information 
        clearinghouses.
            (2) Recommendation and explanatory statement.--The study 
        submitted under paragraph (1) shall identify options that are 
        determined by the Director to have merit, and an explanation 
        which options should be implemented.
            (3) Authorization of appropriations.--There is authorized to 
        be appropriated to the Office of National Drug Control Policy to 
        carry out this subsection $1,000,000 for contracting, policy 
        research, and related costs.

    (c) Appropriate Committees Defined.--In this section, the term 
``appropriate committees'' means the Committee on Appropriations, the 
Committee on Commerce, and the Committee on Education and the Workforce 
of the House of Representatives, and the Committee on Appropriations, 
and Committee on Labor and Human Resources of the Senate.

 DIVISION <> E--METHAMPHETAMINE TRAFFICKING PENALTY 
ENHANCEMENT ACT OF 1998

SECTION 1. SHORT TITLE.

    This division may be cited as the ``Methamphetamine Trafficking 
Penalty Enhancement Act of 1998''.

SEC. 2. METHAMPHETAMINE PENALTY INCREASES.

    (a) Controlled Substances Act.--Section 401(b)(1) of the Controlled 
Substances Act (21 U.S.C. 841(b)(1)) is amended--
            (1) in subparagraph (A)(viii)--
                    (A) by striking ``100 grams'' and inserting ``50 
                grams''; and
                    (B) by striking ``1 kilogram'' and inserting ``500 
                grams''; and
            (2) in subparagraph (B)(viii)--
                    (A) by striking ``10 grams'' and inserting ``5 
                grams''; and
                    (B) by striking ``100 grams'' and inserting ``50 
                grams''.

    (b) Controlled Substances Import and Export Act.--Section 1010(b) of 
the Controlled Substances Import and Export Act (21 U.S.C. 960(b)) is 
amended--
            (1) in paragraph (1)(H)--
                    (A) by striking ``100 grams'' and inserting ``50 
                grams''; and
                    (B) by striking ``1 kilogram'' and inserting ``500 
                grams''; and
            (2) in paragraph (2)(H)--
                    (A) by striking ``10 grams'' and inserting ``5 
                grams''; and
                    (B) by striking ``100 grams'' and inserting ``50 
                grams''.

[[Page 112 STAT. 2681-760]]

SEC. 3. ADDITIONAL REQUIREMENTS FOR THE USE OF FUNDS UNDER THE VIOLENT 
            OFFENDER INCARCERATION AND TRUTH-IN-SENTENCING GRANTS 
            PROGRAM.

    Section 20105(b) of the Violent Crime Control and Law Enforcement 
Act of 1994 <> is amended to read as follows:

    ``(b) Additional Requirements.--
            ``(1) Eligibility for grant.--To be eligible to receive a 
        grant under section 20103 or section 20104, a State shall--
                    ``(A) provide assurances to the Attorney General 
                that the State has implemented or will implement not 
                later than 18 months after the date of the enactment of 
                this subtitle, policies that provide for the recognition 
                of the rights of crime victims; and
                    ``(B) subject to the limitation of paragraph (2), no 
                later than September 1, 2000, consider a program of drug 
                testing and intervention for appropriate categories of 
                convicted offenders during periods of incarceration and 
                post-incarceration and criminal justice supervision, 
                with sanctions including denial or revocation of release 
                for positive drug tests, consistent with guidelines 
                issued by the Attorney General.
            ``(2) Use of funds.--Beginning in fiscal year 1999, not more 
        than 10 percent of the funds provided under section 20103 or 
        section 20104 of this subtitle may be applied to the cost of 
        offender drug testing and intervention programs during periods 
        of incarceration and post-incarceration criminal justice 
        supervision, consistent with guidelines issued by the Attorney 
        General. Further, such funds may be used by the States to pay 
        the costs of providing to the Attorney General a baseline study 
        on their prison drug abuse problem. Such studies shall be 
        consistent with guidelines issued by the Attorney General.''.

         DIVISION F--NOT LEGALIZING MARIJUANA FOR MEDICINAL USE

      It is the sense of the Congress that--
          (1) certain drugs are listed on Schedule I of the Controlled 
        Substances Act if they have a high potential for abuse, lack any 
        currently accepted medical use in treatment, and are unsafe, 
        even under medical supervision;
          (2) the consequences of illegal use of Schedule I drugs are 
        well documented, particularly with regard to physical health, 
        highway safety, and criminal activity;
          (3) pursuant to section 401 of the Controlled Substances Act, 
        it is illegal to manufacture, distribute, or dispense marijuana, 
        heroin, LSD, and more than 100 other Schedule I drugs;
          (4) pursuant to section 505 of the Federal Food, Drug and 
        Cosmetic Act, before any drug can be approved as a medication in 
        the United States, it must meet extensive scientific and medical 
        standards established by the Food and Drug Administration to 
        ensure it is safe and effective;
          (5) marijuana and other Schedule I drugs have not been 
        approved by the Food and Drug Administration to treat any 
        disease or condition;
          (6) the Federal Food, Drug and Cosmetic Act already prohibits 
        the sale of any unapproved drug, including marijuana, that

[[Page 112 STAT. 2681-761]]

        has not been proven safe and effective for medical purposes and 
        grants the Food and Drug Administration the authority to enforce 
        this prohibition through seizure and other civil action, as well 
        as through criminal penalties;
          (7) marijuana use by children in grades 8 through 12 declined 
        steadily from 1980 to 1992, but, from 1992 to 1996, has 
        dramatically increased by 253 percent among 8th graders, 151 
        percent among 10th graders, and 84 percent among 12th graders, 
        and the average age of first-time use of marijuana is now 
        younger than it has ever been;
          (8) according to the 1997 survey by the Center on Addiction 
        and Substance Abuse at Columbia University, 500,000 8th graders 
        began using marijuana in the 6th and 7th grades;
          (9) according to that same 1997 survey, youths between the 
        ages of 12 and 17 who use marijuana are 85 times more likely to 
        use cocaine than those who abstain from marijuana, and 60 
        percent of adolescents who use marijuana before the age of 15 
        will later use cocaine; and
          (10) the rate of illegal drug use among youth is linked to 
        their perceptions of the health and safety risks of those drugs, 
        and the ambiguous cultural messages about marijuana use are 
        contributing to a growing acceptance of marijuana use among 
        children and teenagers;
          (11) Congress continues to support the existing Federal legal 
        process for determining the safety and efficacy of drugs and 
        opposes efforts to circumvent this process by legalizing 
        marijuana, and other Schedule I drugs, for medicinal use without 
        valid scientific evidence and the approval of the Food and Drug 
        Administration; and
          (12) not later than 90 days after the date of the enactment of 
        this Act--
                  (A) <> the Attorney General shall 
                submit to the Committees on the Judiciary of the House 
                of Representatives and the Senate a report on--
                        (i) the total quantity of marijuana eradicated 
                      in the United States during the period from 1992 
                      through 1997; and
                        (ii) the annual number of arrests and 
                      prosecutions for Federal marijuana offenses during 
                      the period described in clause (i); and
                  (B) <> the Commissioner of Foods and 
                Drugs shall submit to the Committee on Commerce of the 
                House of Representatives and the Committee on Labor and 
                Human Resources of the Senate a report on the specific 
                efforts underway to enforce sections 304 and 505 of the 
                Federal Food, Drug and Cosmetic Act with respect to 
                marijuana and other Schedule I drugs.

    DIVISION <> G--FOREIGN AFFAIRS REFORM AND RESTRUCTURING 
ACT OF 1998

SEC. 1001. SHORT TITLE.

      This division may be cited as the ``Foreign Affairs Reform and 
Restructuring Act of 1998''.

[[Page 112 STAT. 2681-762]]

SEC. 1002. ORGANIZATION OF DIVISION INTO SUBDIVISIONS; TABLE OF 
            CONTENTS.

      (a) Divisions.--This division is organized into three subdivisions 
as follows:
          (1) Subdivision a.--Foreign Affairs Agencies Consolidation Act 
        of 1998.
          (2) Subdivision b.--Foreign Relations Authorization Act, 
        Fiscal Years 1998 and 1999.
          (3) Subdivision c.--United Nations Reform Act of 1998.
      (b) Table of Contents.--The table of contents for this division is 
as follows:

     DIVISION --FOREIGN AFFAIRS REFORM AND RESTRUCTURING ACT OF 1998

Sec. 1001. Short title.
Sec. 1002. Organization of division into subdivisions; table of 
           contents.

        Subdivision A--Consolidation of Foreign Affairs Agencies

                      TITLE XI--GENERAL PROVISIONS

Sec. 1101. Short title.
Sec. 1102. Purposes.
Sec. 1103. Definitions.
Sec. 1104. Report on budgetary cost savings resulting from 
           reorganization.

      TITLE XII--UNITED STATES ARMS CONTROL AND DISARMAMENT AGENCY

                      Chapter 1--General Provisions

Sec. 1201. Effective date.

             Chapter 2--Abolition and Transfer of Functions

Sec. 1211. Abolition of United States Arms Control and Disarmament 
           Agency.
Sec. 1212. Transfer of functions to Secretary of State.
Sec. 1213. Under Secretary for Arms Control and International Security.

                    Chapter 3--Conforming Amendments

Sec. 1221. References.
Sec. 1222. Repeals.
Sec. 1223. Amendments to the Arms Control and Disarmament Act.
Sec. 1224. Compensation of officers.
Sec. 1225. Additional conforming amendments.

              TITLE XIII--UNITED STATES INFORMATION AGENCY

                      Chapter 1--General Provisions

Sec. 1301. Effective date.

             Chapter 2--Abolition and Transfer of Functions

Sec. 1311. Abolition of United States Information Agency.
Sec. 1312. Transfer of functions.
Sec. 1313. Under Secretary of State for Public Diplomacy.
Sec. 1314. Abolition of Office of Inspector General of United States 
           Information Agency and transfer of functions.

                  Chapter 3--International Broadcasting

Sec. 1321. Congressional findings and declaration of purpose.
Sec. 1322. Continued existence of Broadcasting Board of Governors.
Sec. 1323. Conforming amendments to the United States International 
           Broadcasting Act of 1994.
Sec. 1324. Amendments to the Radio Broadcasting to Cuba Act.
Sec. 1325. Amendments to the Television Broadcasting to Cuba Act.
Sec. 1326. Transfer of broadcasting related funds, property, and 
           personnel.
Sec. 1327. Savings provisions.
Sec. 1328. Report on the privatization of RFE/RL, Incorporated.

                    Chapter 4--Conforming Amendments

Sec. 1331. References.

[[Page 112 STAT. 2681-763]]

Sec. 1332. Amendments to title 5, United States Code.
Sec. 1333. Application of certain laws.
Sec. 1334. Abolition of United States Advisory Commission on Public 
           Diplomacy.
Sec. 1335. Conforming amendments.
Sec. 1336. Repeals.

  TITLE XIV--UNITED STATES INTERNATIONAL DEVELOPMENT COOPERATION AGENCY

                      Chapter 1--General Provisions

Sec. 1401. Effective date.

             Chapter 2--Abolition and Transfer of Functions

Sec. 1411. Abolition of United States International Development 
           Cooperation Agency.
Sec. 1412. Transfer of functions and authorities.
Sec. 1413. Status of AID.

                    Chapter 3--Conforming Amendments

Sec. 1421. References.
Sec. 1422. Conforming amendments.

             TITLE XV--AGENCY FOR INTERNATIONAL DEVELOPMENT

                      Chapter 1--General Provisions

Sec. 1501. Effective date.

           Chapter 2--Reorganization and Transfer of Functions

Sec. 1511. Reorganization of Agency for International Development.

            Chapter 3--Authorities of the Secretary of State

Sec. 1521. Definition of United States assistance.
Sec. 1522. Administrator of AID reporting to the Secretary of State.
Sec. 1523. Assistance programs coordination and oversight.

                          TITLE XVI--TRANSITION

                     Chapter 1--Reorganization Plan

Sec. 1601. Reorganization plan and report.

                   Chapter 2--Reorganization Authority

Sec. 1611. Reorganization authority.
Sec. 1612. Transfer and allocation of appropriations.
Sec. 1613. Transfer, appointment, and assignment of personnel.
Sec. 1614. Incidental transfers.
Sec. 1615. Savings provisions.
Sec. 1616. Authority of Secretary of State to facilitate transition.
Sec. 1617. Final report.

             Subdivision B--Foreign Relations Authorization

                      TITLE XX--GENERAL PROVISIONS

Sec. 2001. Short title.
Sec. 2002. Definition of appropriate congressional committees.

   TITLE XXI--AUTHORIZATION OF APPROPRIATIONS FOR DEPARTMENT OF STATE

Sec. 2101. Administration of foreign affairs.
Sec. 2102. International commissions.
Sec. 2103. Grants to The Asia Foundation.
Sec. 2104. Voluntary contributions to international organizations.
Sec. 2105. Voluntary contributions to peacekeeping operations.
Sec. 2106. Limitation on United States voluntary contributions to United 
           Nations Development Program.

       TITLE XXII--DEPARTMENT OF STATE AUTHORITIES AND ACTIVITIES

                  Chapter 1--Authorities and Activities

Sec. 2201. Reimbursement of Department of State for assistance to 
           overseas educational facilities.

[[Page 112 STAT. 2681-764]]

Sec. 2202. Revision of Department of State rewards program.
Sec. 2203. Retention of additional defense trade controls registration 
           fees.
Sec. 2204. Fees for commercial services.
Sec. 2205. Pilot program for foreign affairs reimbursement.
Sec. 2206. Fee for use of diplomatic reception rooms.
Sec. 2207. Budget presentation documents.
Sec. 2208. Office of the Inspector General.
Sec. 2209. Capital Investment Fund.
Sec. 2210. Contracting for local guards services overseas.
Sec. 2211. Authority of the Foreign Claims Settlement Commission.
Sec. 2212. Expenses relating to certain international claims and 
           proceedings.
Sec. 2213. Grants to remedy international abductions of children.
Sec. 2214. Counterdrug and anticrime activities of the Department of 
           State.
Sec. 2215. Annual report on overseas surplus properties.
Sec. 2216. Human rights reports.
Sec. 2217. Reports and policy concerning diplomatic immunity.
Sec. 2218. Reaffirming United States international telecommunications 
           policy.
Sec. 2219. Reduction of reporting.

       Chapter 2--Consular Authorities of the Department of State

Sec. 2221. Use of certain passport processing fees for enhanced passport 
           services.
Sec. 2222. Consular officers.
Sec. 2223. Repeal of outdated consular receipt requirements.
Sec. 2224. Elimination of duplicate Federal Register publication for 
           travel advisories.
Sec. 2225. Denial of visas to confiscators of American property. 
Sec. 2226. Inadmissibility of any alien supporting an international 
           child abductor.

                    Chapter 3--Refugees and Migration

              subchapter a--authorization of appropriations

Sec. 2231. Migration and refugee assistance.
                        subchapter b--authorities

Sec. 2241. United States policy regarding the involuntary return of 
           refugees.
Sec. 2242. United States policy with respect to the involuntary return 
           of persons in danger of subjection to torture.
Sec. 2243. Reprogramming of migration and refugee assistance funds.
Sec. 2244. Eligibility for refugee status.
Sec. 2245. Reports to Congress concerning Cuban emigration policies.

  TITLE XXIII--ORGANIZATION OF THE DEPARTMENT OF STATE; DEPARTMENT OF 
                  STATE PERSONNEL; THE FOREIGN SERVICE

           Chapter 1--Organization of the Department of State

Sec. 2301. Coordinator for Counterterrorism.
Sec. 2302. Elimination of Deputy Assistant Secretary of State for 
           Burdensharing.
Sec. 2303. Personnel management.
Sec. 2304. Diplomatic security.
Sec. 2305. Number of senior official positions authorized for the 
           Department of State.
Sec. 2306. Nomination of Under Secretaries and Assistant Secretaries of 
           State.

  Chapter 2--Personnel of the Department of State; the Foreign Service

Sec. 2311. Foreign Service reform.
Sec. 2312. Retirement benefits for involuntary separation.
Sec. 2313. Authority of Secretary to separate convicted felons from the 
           Foreign Service.
Sec. 2314. Career counseling.
Sec. 2315. Limitations on management assignments.
Sec. 2316. Availability pay for certain criminal investigators within 
           the Diplomatic Security Service.
Sec. 2317. Nonovertime differential pay.
Sec. 2318. Report concerning minorities and the Foreign Service.

   TITLE XXIV--UNITED STATES INFORMATIONAL, EDUCATIONAL, AND CULTURAL 
                                PROGRAMS

               Chapter 1--Authorization of Appropriations

Sec. 2401. International information activities and educational and 
           cultural exchange programs.

[[Page 112 STAT. 2681-765]]

                  Chapter 2--Authorities and Activities

Sec. 2411. Retention of interest.
Sec. 2412. Use of selected program fees.
Sec. 2413. Muskie Fellowship Program.
Sec. 2414. Working Group on United States Government-Sponsored 
           International Exchanges and Training.
Sec. 2415. Educational and cultural exchanges and scholarships for 
           Tibetans and Burmese.
Sec. 2416. Surrogate broadcasting study.
Sec. 2417. Radio broadcasting to Iran in the Farsi language.
Sec. 2418. Authority to administer summer travel and work programs.
Sec. 2419. Permanent administrative authorities regarding 
           appropriations.
Sec. 2420. Voice of America broadcasts.

    TITLE XXV--INTERNATIONAL ORGANIZATIONS OTHER THAN UNITED NATIONS

Sec. 2501. International conferences and contingencies.
Sec. 2502. Restriction relating to United States accession to any new 
           international criminal tribunal.
Sec. 2503. United States membership in the Bureau of the 
           Interparliamentary Union.
Sec. 2504. Service in international organizations.
Sec. 2505. Reports regarding foreign travel.

      TITLE XXVI--UNITED STATES ARMS CONTROL AND DISARMAMENT AGENCY

Sec. 2601. Authorization of appropriations.
Sec. 2602. Statutory construction.

               TITLE XXVII--EUROPEAN SECURITY ACT OF 1998

Sec. 2701. Short title.
Sec. 2702. Statement of policy.
Sec. 2703. Authorities relating to NATO enlargement.
Sec. 2704. Sense of Congress with respect to the Treaty on Conventional 
           Armed Forces in Europe.
Sec. 2705. Restrictions and requirements relating to ballistic missile 
           defense.

              TITLE XXVIII--OTHER FOREIGN POLICY PROVISIONS

Sec. 2801. Reports on claims by United States firms against the 
           Government of Saudi Arabia.
Sec. 2802. Reports on determinations under title IV of the Libertad Act.
Sec. 2803. Report on compliance with the Hague Convention on 
           International Child Abduction.
Sec. 2804. Sense of Congress relating to recognition of the Ecumenical 
           Patriarchate by the Government of Turkey.
Sec. 2805. Report on relations with Vietnam.
Sec. 2806. Reports and policy concerning human rights violations in 
           Laos.
Sec. 2807. Report on an alliance against narcotics trafficking in the 
           Western Hemisphere.
Sec. 2808. Congressional statement regarding the accession of Taiwan to 
           the World Trade Organization.
Sec. 2809. Programs or projects of the International Atomic Energy 
           Agency in Cuba.
Sec. 2810. Limitation on assistance to countries aiding Cuba nuclear 
           development.
Sec. 2811. International Fund for Ireland.
Sec. 2812. Support for democratic opposition in Iraq.
Sec. 2813. Development of democracy in the Republic of Serbia.

   SUBDIVISION <> A--CONSOLIDATION OF FOREIGN AFFAIRS AGENCIES

                      TITLE XI--GENERAL PROVISIONS

SEC. 1101. <> SHORT TITLE.

    This subdivision may be cited as the ``Foreign Affairs Agencies 
Consolidation Act of 1998''.

SEC. 1102. <> PURPOSES.

    The purposes of this subdivision are--

[[Page 112 STAT. 2681-766]]

            (1) to strengthen--
                    (A) the coordination of United States foreign 
                policy; and
                    (B) the leading role of the Secretary of State in 
                the formulation and articulation of United States 
                foreign policy;
            (2) to consolidate and reinvigorate the foreign affairs 
        functions of the United States within the Department of State 
        by--
                    (A) abolishing the United States Arms Control and 
                Disarmament Agency, the United States Information 
                Agency, and the United States International Development 
                Cooperation Agency, and transferring the functions of 
                these agencies to the Department of State while 
                preserving the special missions and skills of these 
                agencies;
                    (B) transferring certain functions of the Agency for 
                International Development to the Department of State; 
                and
                    (C) providing for the reorganization of the 
                Department of State to maximize the efficient use of 
                resources, which may lead to budget savings, eliminated 
                redundancy in functions, and improvement in the 
                management of the Department of State;
            (3) to ensure that programs critical to the promotion of 
        United States national interests be maintained;
            (4) to assist congressional efforts to balance the Federal 
        budget and reduce the Federal debt;
            (5) to ensure that the United States maintains effective 
        representation abroad within budgetary restraints; and
            (6) to encourage United States foreign affairs agencies to 
        maintain a high percentage of the best qualified, most competent 
        United States citizens serving in the United States Government.

SEC. 1103. <> DEFINITIONS.

    In this subdivision:
            (1) ACDA.--The term ``ACDA'' means the United States Arms 
        Control and Disarmament Agency.
            (2) AID.--The term ``AID'' means the United States Agency 
        for International Development.
            (3) Agency; federal agency.--The term ``agency'' or 
        ``Federal agency'' means an Executive agency as defined in 
        section 105 of title 5, United States Code.
            (4) Appropriate congressional committees.--The term 
        ``appropriate congressional committees'' means the Committee on 
        International Relations and the Committee on Appropriations of 
        the House of Representatives and the Committee on Foreign 
        Relations and the Committee on Appropriations of the Senate.
            (5) Covered agency.--The term ``covered agency'' means any 
        of the following agencies: ACDA, USIA, IDCA, and AID.
            (6) Department.--The term ``Department'' means the 
        Department of State.
            (7) Function.--The term ``function'' means any duty, 
        obligation, power, authority, responsibility, right, privilege, 
        activity, or program.
            (8) IDCA.--The term ``IDCA'' means the United States 
        International Development Cooperation Agency.

[[Page 112 STAT. 2681-767]]

            (9) Office.--The term ``office'' includes any office, 
        administration, agency, institute, unit, organizational entity, 
        or component thereof.
            (10) Secretary.--The term ``Secretary'' means the Secretary 
        of State.
            (11) USIA.--The term ``USIA'' means the United States 
        Information Agency.

SEC. 1104. <> REPORT ON BUDGETARY COST SAVINGS 
            RESULTING FROM REORGANIZATION.
      The Secretary of State shall submit a report, together with the 
congressional presentation document for the budget of the Department of 
State for each of the fiscal years 2000 and 2001, to the appropriate 
congressional committees describing the total anticipated and achieved 
cost savings in budget outlays and budget authority related to the 
reorganization implemented under this subdivision, including cost 
savings by each of the following categories:
          (1) Reductions in personnel.
          (2) Administrative consolidation, including procurement.
          (3) Program consolidation.
          (4) Consolidation of real properties and leases.

      TITLE XII--UNITED STATES ARMS CONTROL AND DISARMAMENT AGENCY

                      CHAPTER 1--GENERAL PROVISIONS

SEC. 1201. <> EFFECTIVE DATE.
      This title, and the amendments made by this title, shall take 
effect on the earlier of--
          (1) April 1, 1999; or
          (2) the date of abolition of the United States Arms Control 
        and Disarmament Agency pursuant to the reorganization plan 
        described in section 1601.

             CHAPTER 2--ABOLITION AND TRANSFER OF FUNCTIONS

SEC. 1211. <> ABOLITION OF UNITED STATES ARMS 
            CONTROL AND DISARMAMENT AGENCY.
      The United States Arms Control and Disarmament Agency is 
abolished.

SEC. 1212. <> TRANSFER OF FUNCTIONS TO SECRETARY OF 
            STATE.
      There are transferred to the Secretary of State all functions of 
the Director of the United States Arms Control and Disarmament Agency, 
and all functions of the United States Arms Control and Disarmament 
Agency and any office or component of such agency, under any statute, 
reorganization plan, Executive order, or other provision of law, as of 
the day before the effective date of this title.

SEC. 1213. UNDER SECRETARY FOR ARMS CONTROL AND INTERNATIONAL SECURITY.

      Section 1(b) of the State Department Basic Authorities Act of 1956 
(22 U.S.C. 2651(b)) <> is amended--
          (1) by striking ``There'' and inserting the following:
          ``(1) In general.--There''; and

[[Page 112 STAT. 2681-768]]

          (2) by adding at the end the following:
          ``(2) Under secretary for arms control and international 
        security.--There shall be in the Department of State, among the 
        Under Secretaries authorized by paragraph (1), an Under 
        Secretary for Arms Control and International Security, who shall 
        assist the Secretary and the Deputy Secretary in matters related 
        to international security policy, arms control, and 
        nonproliferation. Subject to the direction of the President, the 
        Under Secretary may attend and participate in meetings of the 
        National Security Council in his role as Senior Advisor to the 
        President and the Secretary of State on Arms Control and 
        Nonproliferation Matters.''.

                    CHAPTER 3--CONFORMING AMENDMENTS

SEC. 1221. <> REFERENCES.

    Except as otherwise provided in section 1223 or 1225, any reference 
in any statute, reorganization plan, Executive order, regulation, 
agreement, determination, or other official document or proceeding to--
            (1) the Director of the United States Arms Control and 
        Disarmament Agency, the Director of the Arms Control and 
        Disarmament Agency, or any other officer or employee of the 
        United States Arms Control and Disarmament Agency or the Arms 
        Control and Disarmament Agency shall be deemed to refer to the 
        Secretary of State; or
            (2) the United States Arms Control and Disarmament Agency or 
        the Arms Control and Disarmament Agency shall be deemed to refer 
        to the Department of State.

SEC. 1222. REPEALS.

    The following sections of the Arms Control and Disarmament Act (22 
U.S.C. 2551 et seq.) are repealed: Sections 21 through 26 (22 U.S.C. 
2561-2566), section 35 (22 U.S.C. 2575), section 42 (22 U.S.C. 2582), 
section 43 (22 U.S.C. 2583), sections 45 through 50 (22 U.S.C. 2585-
2593), section 53 (22 U.S.C. 2593c), section 54 (22 U.S.C. 2593d), and 
section 63 (22 U.S.C. 2595b).

SEC. 1223. AMENDMENTS TO THE ARMS CONTROL AND DISARMAMENT ACT.

    The Arms Control and Disarmament Act (22 U.S.C. 2551 et seq.) is 
amended--
            (1) in section 2 (22 U.S.C. 2551)--
                    (A) in the first undesignated paragraph, by striking 
                ``creating a new agency of peace to deal with'' and 
                inserting ``addressing'';
                    (B) by striking the second undesignated paragraph; 
                and
                    (C) in the third undesignated paragraph--
                          (i) by striking ``This organization'' and 
                      inserting ``The Secretary of State'';
                          (ii) by striking ``It shall have'' and 
                      inserting ``The Secretary shall have'';
                          (iii) by striking ``and the Secretary of 
                      State'';
                          (iv) by inserting ``, nonproliferation,'' 
                      after ``arms control'' in paragraph (1);
                          (v) by striking paragraph (2);

[[Page 112 STAT. 2681-769]]

                          (vi) by redesignating paragraphs (3) through 
                      (5) as paragraphs (2) through (4), respectively; 
                      and
                          (vii) by striking ``, as appropriate,'' in 
                      paragraph (3) (as redesignated);
            (2) in section 3 (22 U.S.C. 2552), by striking subsection 
        (c);
            (3) in the heading for title II, by striking 
        ``ORGANIZATION'' and inserting ``SPECIAL REPRESENTATIVES AND 
        VISITING SCHOLARS'';
            (4) in section 27 (22 U.S.C. 2567)--
                    (A) by striking the third sentence;
                    (B) in the fourth sentence, by striking ``, acting 
                through the Director''; and
                    (C) in the fifth sentence, by striking ``Agency'' 
                and inserting ``Department of State'';
            (5) in section 28 (22 U.S.C. 2568)--
                    (A) by striking ``Director'' each place it appears 
                and inserting ``Secretary of State'';
                    (B) in the second sentence--
                          (i) by striking ``Agency'' each place it 
                      appears and inserting ``Department of State''; and
                          (ii) by striking ``Agency's'' and inserting 
                      ``Department of State's''; and
            (6) in section 31 (22 U.S.C. 2571)--
                    (A) by inserting ``this title in'' after ``powers 
                in'';
                    (B) by striking ``Director'' each place it appears 
                and inserting ``Secretary of State'';
                    (C) by striking ``insure'' each place it appears and 
                inserting ``ensure'';
                    (D) in the second sentence, by striking ``in 
                accordance with procedures established under section 35 
                of this Act'';
                    (E) in the fourth sentence by striking ``The 
                authority'' and all that follows through 
                ``disarmament:'' and inserting the following: ``The 
                authority of the Secretary under this Act with respect 
                to research, development, and other studies concerning 
                arms control, nonproliferation, and disarmament shall be 
                limited to participation in the following:''; and
                    (F) in subsection (l), by inserting ``and'' at the 
                end;
            (7) in section 32 (22 U.S.C. 2572)--
                    (A) by striking ``Director'' and inserting 
                ``Secretary of State''; and
                    (B) by striking ``subsection'' and inserting 
                ``section'';
            (8) in section 33(a) (22 U.S.C. 2573(a))--
                    (A) by striking ``the Secretary of State,''; and
                    (B) by striking ``Director'' and inserting 
                ``Secretary of State'';
            (9) in section 34 (22 U.S.C. 2574)--
                    (A) in subsection (a)--
                          (i) in the first sentence, by striking 
                      ``Director'' and inserting ``Secretary of State'';
                          (ii) in the first sentence, by striking ``and 
                      the Secretary of State'';
                          (iii) in the first sentence, by inserting ``, 
                      nonproliferation,'' after ``in the fields of arms 
                      control'';
                          (iv) in the first sentence, by striking ``and 
                      shall have primary responsibility, whenever 
                      directed by the

[[Page 112 STAT. 2681-770]]

                      President, for the preparation, conduct, and 
                      management of the United States participation in 
                      international negotiations and implementation fora 
                      in the field of nonproliferation'';
                          (v) in the second sentence, by striking 
                      ``section 27'' and inserting ``section 201''; and
                          (vi) in the second sentence, by striking 
                      ``the'' after ``serve as'';
                    (B) by striking subsection (b);
                    (C) by redesignating subsection (c) as subsection 
                (b); and
                    (D) in subsection (b) (as redesignated)--
                          (i) in the text above paragraph (1), by 
                      striking ``Director'' and inserting ``Secretary of 
                      State'';
                          (ii) by striking paragraph (1); and
                          (iii) by redesignating paragraphs (2) and (3) 
                      as paragraphs (1) and (2), respectively;
            (10) in section 36 (22 U.S.C. 2576)--
                    (A) by striking ``Director'' each place it appears 
                and inserting ``Secretary of State''; and
                    (B) by striking ``, in accordance with the 
                procedures established pursuant to section 35 of this 
                Act,'';
            (11) in section 37 (22 U.S.C. 2577)--
                    (A) by striking ``Director'' and ``Agency'' each 
                place it appears and inserting ``Secretary of State'' or 
                ``Department of State'', respectively; and
                    (B) by striking subsection (d);
            (12) in section 38 (22 U.S.C. 2578)--
                    (A) by striking ``Director'' each place it appears 
                and inserting ``Secretary of State''; and
                    (B) by striking subsection (c);
            (13) in section 41 (22 U.S.C. 2581)--
                    (A) by striking ``In the performance of his 
                functions, the Director'' and inserting ``In addition to 
                any authorities otherwise available, the Secretary of 
                State in the performance of functions under this Act'';
                    (B) by striking ``Agency'', ``Agency's'', 
                ``Director'', and ``Director's'' each place they appear 
                and inserting ``Department of State'', ``Department of 
                State's'', ``Secretary of State'', or ``Secretary of 
                State's'', as appropriate;
                    (C) in subsection (a), by striking the sentence that 
                begins ``It is the intent'';
                    (D) in subsection (b)--
                          (i) by striking ``appoint officers and 
                      employees, including attorneys, for the Agency in 
                      accordance with the provisions of title 5, United 
                      States Code, governing appointment in the 
                      competitive service, and fix their compensation in 
                      accordance with chapter 51 and with subchapter III 
                      of chapter 53 of such title, relating to 
                      classification and General Schedule pay rates, 
                      except that the Director may, to the extent the 
                      Director determines necessary to the discharge of 
                      his responsibilities,'';
                          (ii) in paragraph (1), by striking 
                      ``exception'' and inserting ``subsection''; and
                          (iii) in paragraph (2)--

[[Page 112 STAT. 2681-771]]

                                    (I) by striking ``exception'' and 
                                inserting ``subsection''; and
                                    (II) by striking ``ceiling'' and 
                                inserting ``positions allocated to carry 
                                out the purpose of this Act'';
                    (E) by striking subsection (g);
                    (F) by redesignating subsections (h), (i), and (j) 
                as subsections (g), (h), and (i), respectively;
                    (G) by amending subsection (f) to read as follows:
            ``(f) establish a scientific and policy advisory board to 
        advise with and make recommendations to the Secretary of State 
        on United States arms control, nonproliferation, and disarmament 
        policy and activities. A majority of the board shall be composed 
        of individuals who have a demonstrated knowledge and technical 
        expertise with respect to arms control, nonproliferation, and 
        disarmament matters and who have distinguished themselves in any 
        of the fields of physics, chemistry, mathematics, biology, or 
        engineering, including weapons engineering. The members of the 
        board may receive the compensation and reimbursement for 
        expenses specified for consultants by subsection (d) of this 
        section;''; and
                    (H) in subsection (h) (as redesignated), by striking 
                ``Deputy Director'' and inserting ``Under Secretary for 
                Arms Control and International Security'';
            (14) in section 44 (22 U.S.C. 2584)--
                    (A) by striking ``conflict-of-interest and'';
                    (B) by striking ``The members'' and all that follows 
                through ``(5 U.S.C. 2263), or any other'' and inserting 
                ``Members of advisory boards and consultants may serve 
                as such without regard to any''; and
                    (C) <> by inserting at the end 
                the following new sentence: ``This section shall apply 
                only to individuals carrying out activities related to 
                arms control, nonproliferation, and disarmament.'';
            (15) in section 51 (22 U.S.C. 2593a)--
                    (A) in subsection (a)--
                          (i) in paragraphs (1) and (3), by inserting 
                      ``, nonproliferation,'' after ``arms control'' 
                      each place it appears;
                          (ii) by striking ``Director, in consultation 
                      with the Secretary of State,'' and inserting 
                      ``Secretary of State with the concurrence of the 
                      Director of Central Intelligence and in 
                      consultation with'';
                          (iii) by striking ``the Chairman of the Joint 
                      Chiefs of Staff, and the Director of Central 
                      Intelligence'' and inserting ``and the Chairman of 
                      the Joint Chiefs of Staff'';
                          (iv) by striking paragraphs (2) and (4); and
                          (v) by redesignating paragraphs (3), (5), (6), 
                      and (7) as paragraphs (2) through (5), 
                      respectively; and
                    (B) by adding at the end of subsection (b) the 
                following: ``The portions of this report described in 
                paragraphs (4) and (5) of subsection (a) shall summarize 
                in detail, at least in classified annexes, the 
                information, analysis, and conclusions relevant to 
                possible noncompliance by other nations that are 
                provided by United States intelligence agencies.'';

[[Page 112 STAT. 2681-772]]

            (16) in section 52 (22 U.S.C. 2593b), by striking 
        ``Director'' and inserting ``Secretary of State'';
            (17) in section 61 (22 U.S.C. 2593a)--
                    (A) in paragraph (1), by striking ``United States 
                Arms Control and Disarmament Agency'' and inserting 
                ``Department of State'';
                    (B) by striking paragraph (2);
                    (C) by redesignating paragraphs (3) through (7) as 
                paragraphs (2) through (6), respectively;
                    (D) in paragraph (4) (as redesignated), by striking 
                ``paragraph (4)'' and inserting ``paragraph (3)''; and
                    (E) in paragraph (6) (as redesignated), by striking 
                ``United States Arms Control and Disarmament Agency and 
                the'';
            (18) in section 62 (22 U.S.C. 2595a)--
                    (A) in subsection (c)--
                          (i) in the subsection heading, by striking 
                      ``Director'' and inserting ``Secretary of State''; 
                      and
                          (ii) by striking ``2(d), 22, and 34(c)'' and 
                      inserting ``102(3) and 304(b)''; and
                    (B) by striking ``Director'' and inserting 
                ``Secretary of State'';
            (19) in section 64 (22 U.S.C. 2595b-1)--
                    (A) by striking the section title and inserting 
                ``SEC. 503. REVIEW OF CERTAIN REPROGRAMMING 
                NOTIFICATIONS.'';
                    (B) by striking subsection (a); and
                    (C) in subsection (b)--
                          (i) by striking ``(b) Review of Certain 
                      Reprogramming Notifications.--''; and
                          (ii) by striking ``Foreign Affairs'' and 
                      inserting ``International Relations'';
            (20) in section 65(1) (22 U.S.C. 2595c(1)) by inserting ``of 
        America'' after ``United States''; and
            (21) <> by redesignating sections 
        1, 2, 3, 27, 28, 31, 32, 33, 34, 36, 37, 38, 39, 41, 44, 51, 52, 
        61, 62, 64, and 65, as amended by this section, as sections 101, 
        102, 103, 201, 202, 301, 302, 303, 304, 305, 306, 307, 308, 401, 
        402, 403, 404, 501, 502, 503, and 504, respectively.

SEC. 1224. COMPENSATION OF OFFICERS.

      Title 5, United States Code, is amended--
            (1) in section 5313, by striking ``Director of the United 
        States Arms Control and Disarmament Agency.'';
            (2) in section 5314, by striking ``Deputy Director of the 
        United States Arms Control and Disarmament Agency.'';
            (3) in section 5315--
                    (A) by striking ``Assistant Directors, United States 
                Arms Control and Disarmament Agency (4).''; and
                    (B) by striking ``Special Representatives of the 
                President for arms control, nonproliferation, and 
                disarmament matters, United States Arms Control and 
                Disarmament Agency'', and inserting ``Special 
                Representatives of the President for arms control, 
                nonproliferation, and disarmament matters, Department of 
                State''; and
            (4) in section 5316, by striking ``General Counsel of the 
        United States Arms Control and Disarmament Agency.''.

[[Page 112 STAT. 2681-773]]

SEC. 1225. ADDITIONAL CONFORMING AMENDMENTS.

    (a) Arms Export Control Act.--The Arms Export Control Act is 
amended--
            (1) in section 36(b)(1)(D) (22 U.S.C. 2776(b)(1)(D)), by 
        striking ``Director of the Arms Control and Disarmament Agency 
        in consultation with the Secretary of State and the Secretary of 
        Defense'' and inserting ``Secretary of State in consultation 
        with the Secretary of Defense and the Director of Central 
        Intelligence'';
            (2) in section 38(a)(2) (22 U.S.C. 2778(a)(2))--
                    (A) in the first sentence, by striking ``be made in 
                coordination with the Director of the United States Arms 
                Control and Disarmament Agency, taking into account the 
                Director's assessment as to'' and inserting ``take into 
                account''; and
                    (B) by striking the second sentence;
            (3) in section 42(a) (22 U.S.C. 2791(a))--
                    (A) in paragraph (1)(C), by striking ``the 
                assessment of the Director of the United States Arms 
                Control and Disarmament Agency as to'';
                    (B) by striking ``(1)'' after ``(a)''; and
                    (C) by striking paragraph (2);
            (4) in section 71(a) (22 U.S.C. 2797(a)), by striking ``, 
        the Director of the Arms Control and Disarmament Agency,'';
            (5) in section 71(b)(1) (22 U.S.C. 2797(b)(1)), by striking 
        ``and the Director of the United States Arms Control and 
        Disarmament Agency'';
            (6) in section 71(b)(2) (22 U.S.C. 2797(b)(2))--
                    (A) by striking ``, the Secretary of Commerce, and 
                the Director of the United States Arms Control and 
                Disarmament Agency'' and inserting ``and the Secretary 
                of Commerce''; and
                    (B) by striking ``or the Director'';
            (7) in section 71(c) (22 U.S.C. 2797(c)), by striking ``with 
        the Director of the United States Arms Control and Disarmament 
        Agency,''; and
            (8) in section 73(d) (22 U.S.C. 2797b(d)), by striking ``, 
        the Secretary of Commerce, and the Director of the United States 
        Arms Control and Disarmament Agency'' and inserting ``and the 
        Secretary of Commerce''.

    (b) Foreign Assistance Act.--Section 511 of the Foreign Assistance 
Act of 1961 (22 U.S.C. 2321d) is amended by striking ``be made in 
coordination with the Director of the United States Arms Control and 
Disarmament Agency and shall take into account his opinion as to'' and 
inserting ``take into account''.

    (c) United States Institute of Peace Act.--
            (1) Section 1706(b) of the United States Institute of Peace 
        Act (22 U.S.C. 4605(b)) is amended--
                    (A) by striking paragraph (3);
                    (B) by redesignating paragraphs (4) and (5) as 
                paragraphs (3) and (4), respectively; and
                    (C) in paragraph (4) (as redesignated), by striking 
                ``Eleven'' and inserting ``Twelve''.
            (2) Section 1707(d)(2) of that Act (22 U.S.C. 4606(d)(2)) is 
        amended by striking ``, Director of the Arms Control and 
        Disarmament Agency''.

[[Page 112 STAT. 2681-774]]

    (d) Atomic Energy Act of 1954.--The Atomic Energy Act of 1954 is 
amended--
            (1) in section 57b. (42 U.S.C. 2077(b))--
                    (A) in the first sentence, by striking ``the Arms 
                Control and Disarmament Agency,''; and
                    (B) in the second sentence, by striking ``the 
                Director of the Arms Control and Disarmament Agency,'';
            (2) in section 109b. (42 U.S.C. 2129(b)), <> by striking ``and the Director'';
            (3) in section 111b. (42 U.S.C. 2131(b)) <> by striking ``the Arms Control and Disarmament Agency, 
        the Nuclear Regulatory Commission,'' and inserting ``the Nuclear 
        Regulatory Commission'';
            (4) in section 123 (42 U.S.C. 2153)--
                    (A) in subsection a., in the third sentence--
                          (i) by striking ``and in consultation with the 
                      Director of the Arms Control and Disarmament 
                      Agency (`the Director')'';
                          (ii) by inserting ``and'' after ``Energy,'';
                          (iii) by striking ``Commission, and the 
                      Director, who'' and inserting ``Commission. The 
                      Secretary of State''; and
                          (iv) after ``nuclear explosive purpose.'', by 
                      inserting the following new sentence: ``Each 
                      Nuclear Proliferation Assessment Statement 
                      prepared pursuant to this Act shall be accompanied 
                      by a classified annex, prepared in consultation 
                      with the Director of Central Intelligence, 
                      summarizing relevant classified information.'';
                    (B) in subsection d., in the first proviso--
                          (i) by striking ``Nuclear Proliferation 
                      Assessment Statement prepared by the Director of 
                      the Arms Control and Disarmament Agency,'' and 
                      inserting ``Nuclear Proliferation Assessment 
                      Statement prepared by the Secretary of State, and 
                      any annexes thereto,''; and
                          (ii) by striking ``has been'' and inserting 
                      ``have been''; and
                    (C) in the first undesignated paragraph following 
                subsection d., by striking ``the Arms Control and 
                Disarmament Agency,'';
            (5) in section 126a.(1), <> by striking 
        ``the Director of the Arms Control and Disarmament Agency, and 
        the Nuclear Regulatory Commission'' and inserting ``and the 
        Nuclear Regulatory Commission,'';
            (6) in section 131a. (42 U.S.C. 2160(a))--
                    (A) in paragraph (1)--
                          (i) in the first sentence, by striking ``the 
                      Director,'';
                          (ii) in the third sentence, by striking ``the 
                      Director declares that he intends'' and inserting 
                      ``the Secretary of State is required''; and
                          (iii) in the third sentence, by striking ``the 
                      Director's declaration'' and inserting ``the 
                      requirement to prepare a Nuclear Proliferation 
                      Assessment Statement'';
                    (B) in paragraph (2)--
                          (i) by striking ``Director's view'' and 
                      inserting ``view of the Secretary of State, 
                      Secretary of Energy, Secretary of Defense, or the 
                      Commission''; and

[[Page 112 STAT. 2681-775]]

                          (ii) by striking ``he may prepare'' and 
                      inserting ``the Secretary of State, in 
                      consultation with such Secretary or the 
                      Commission, shall prepare''; and
            (7) in section 131c. (42 U.S.C. 2160(c))--
                    (A) in the first sentence, by striking ``, the 
                Director of the Arms Control and Disarmament Agency,'';
                    (B) in the sixth and seventh sentences, by striking 
                ``Director'' each place it appears and inserting 
                ``Secretary of State''; and
                    (C) in the seventh sentence, by striking 
                ``Director's'' and inserting ``Secretary of State's''.

    (e) Nuclear Non-Proliferation Act of 1978.--The Nuclear Non-
Proliferation Act of 1978 is amended--
            (1) in section 4 (22 U.S.C. 3203)--
                    (A) by striking paragraph (2); and
                    (B) by redesignating paragraphs (3) through (8) as 
                paragraphs (2) through (7), respectively;
            (2) in section 102 (22 U.S.C. 3222), by striking ``, the 
        Secretary of State, and the Director of the Arms Control and 
        Disarmament Agency'' and inserting ``and the Secretary of 
        State'';
            (3) in section 304(d) (42 U.S.C. 2156a), by striking ``the 
        Secretary of Defense, and the Director,'' and inserting ``and 
        the Secretary of Defense,'';
            (4) in section 309 (42 U.S.C. 2139a)--
                    (A) in subsection (b), by striking ``the Department 
                of Commerce, and the Arms Control and Disarmament 
                Agency'' and inserting ``and the Department of 
                Commerce''; and
                    (B) in subsection (c), by striking ``the Arms 
                Control and Disarmament Agency,'';
            (5) in section 406 (42 U.S.C. 2160a), by inserting ``, or 
        any annexes thereto,'' after ``Statement''; and
            (6) in section 602 (22 U.S.C. 3282)--
                    (A) in subsection (c), by striking ``the Arms 
                Control and Disarmament Agency,''; and
                    (B) in subsection (e), by striking ``and the 
                Director''.

    (f) State Department Basic Authorities Act of 1956.--Section 23(a) 
of the State Department Basic Authorities Act of 1956 (22 U.S.C. 
2695(a)) is amended by striking ``the Agency for International 
Development, and the Arms Control and Disarmament Agency'' and inserting 
``and the Agency for International Development''.
    (g) Foreign Relations Authorization Act of 1972.--Section 502 of the 
Foreign Relations Authorization Act of 1972 (2 U.S.C. 194a) is amended 
by striking ``the United States Arms Control and Disarmament Agency,''.
    (h) Title 49.--Section 40118(d) of title 49, United States Code, is 
amended by striking ``, or the Director of the Arms Control and 
Disarmament Agency''.

[[Page 112 STAT. 2681-776]]

              TITLE XIII--UNITED STATES INFORMATION AGENCY

                      CHAPTER 1--GENERAL PROVISIONS

SEC. 1301. <> EFFECTIVE DATE.

    This title, and the amendments made by this title, shall take effect 
on the earlier of--
            (1) October 1, 1999; or
            (2) the date of abolition of the United States Information 
        Agency pursuant to the reorganization plan described in section 
        1601.

             CHAPTER 2--ABOLITION AND TRANSFER OF FUNCTIONS

SEC. 1311. <> ABOLITION OF UNITED STATES INFORMATION 
            AGENCY.

    The United States Information Agency (other than the Broadcasting 
Board of Governors and the International Broadcasting Bureau) is 
abolished.

SEC. 1312. <> TRANSFER OF FUNCTIONS.

    (a) In General.--There are transferred to the Secretary of State all 
functions of the Director of the United States Information Agency and 
all functions of the United States Information Agency and any office or 
component of such agency, under any statute, reorganization plan, 
Executive order, or other provision of law, as of the day before the 
effective date of this title.
    (b) Exception.--Subsection (a) does not apply to the Broadcasting 
Board of Governors, the International Broadcasting Bureau, or any 
function performed by the Board or the Bureau.

SEC. 1313. UNDER SECRETARY OF STATE FOR PUBLIC DIPLOMACY.

    Section 1(b) of the State Department Basic Authorities Act of 1956 
(22 U.S.C. 2651a(b)), as amended by this division, is further amended by 
adding at the end the following new paragraph:
            ``(3) Under secretary for public diplomacy.--There shall be 
        in the Department of State, among the Under Secretaries 
        authorized by paragraph (1), an Under Secretary for Public 
        Diplomacy, who shall have primary responsibility to assist the 
        Secretary and the Deputy Secretary in the formation and 
        implementation of United States public diplomacy policies and 
        activities, including international educational and cultural 
        exchange programs, information, and international 
        broadcasting.''.

SEC. 1314. <> ABOLITION OF OFFICE OF INSPECTOR 
            GENERAL OF UNITED STATES INFORMATION AGENCY AND TRANSFER OF 
            FUNCTIONS.

    (a) Abolition of Office.--The Office of Inspector General of the 
United States Information Agency is abolished.
    (b) Amendments to Inspector General Act of 1978.--Section 11 of the 
Inspector General Act of 1978 (5 U.S.C. App.) is amended--
            (1) in paragraph (1), by striking ``the Office of Personnel 
        Management, the United States Information Agency'' and inserting 
        ``or the Office of Personnel Management''; and
            (2) in paragraph (2), by striking ``the United States 
        Information Agency,''.

    (c) Executive Schedule.--Section 5315 of title 5, United States 
Code, is amended by striking the following:

[[Page 112 STAT. 2681-777]]

            ``Inspector General, United States Information Agency.''.

    (d) Amendments to Public Law 103-236.--Subsections (i) and (j) of 
section 308 of the United States International Broadcasting Act of 1994 
(22 U.S.C. 6207 (i) and (j)) are amended--
            (1) by striking ``Inspector General of the United States 
        Information Agency'' each place it appears and inserting 
        ``Inspector General of the Department of State and the Foreign 
        Service''; and
            (2) by striking ``, the Director of the United States 
        Information Agency,''.

    (e) Transfer of Functions.--There are transferred to the Office of 
the Inspector General of the Department of State and the Foreign Service 
the functions that the Office of Inspector General of the United States 
Information Agency exercised before the effective date of this title 
(including all related functions of the Inspector General of the United 
States Information Agency).

                  CHAPTER 3--INTERNATIONAL BROADCASTING

SEC. 1321. <> CONGRESSIONAL FINDINGS AND DECLARATION 
            OF PURPOSE.

    Congress finds that--
            (1) it is the policy of the United States to promote the 
        right of freedom of opinion and expression, including the 
        freedom ``to seek, receive, and impart information and ideas 
        through any media and regardless of frontiers'', in accordance 
        with Article 19 of the Universal Declaration of Human Rights;
            (2) open communication of information and ideas among the 
        peoples of the world contributes to international peace and 
        stability, and the promotion of such communication is in the 
        interests of the United States;
            (3) it is in the interest of the United States to support 
        broadcasting to other nations consistent with the requirements 
        of this chapter and the United States International Broadcasting 
        Act of 1994; and
            (4) international broadcasting is, and should remain, an 
        essential instrument of United States foreign policy.

SEC. 1322. CONTINUED EXISTENCE OF BROADCASTING BOARD OF GOVERNORS.

    Section 304(a) of the United States International Broadcasting Act 
of 1994 (22 U.S.C. 6203(a)) is amended to read as follows:
    ``(a) Continued Existence Within Executive Branch.--
            ``(1) In general.--The Broadcasting Board of Governors shall 
        continue to exist within the Executive branch of Government as 
        an entity described in section 104 of title 5, United States 
        Code.
            ``(2) Retention of existing board members.--The members of 
        the Broadcasting Board of Governors appointed by the President 
        pursuant to subsection (b)(1)(A) before the effective date of 
        title XIII of the Foreign Affairs Agencies Consolidation Act of 
        1998 and holding office as of that date may serve the remainder 
        of their terms of office without reappointment.
            ``(3) Inspector general authorities.--
                    ``(A) In general.--The Inspector General of the 
                Department of State and the Foreign Service shall 
                exercise the same authorities with respect to the 
                Broadcasting

[[Page 112 STAT. 2681-778]]

                Board of Governors and the International Broadcasting 
                Bureau as the Inspector General exercises under the 
                Inspector General Act of 1978 and section 209 of the 
                Foreign Service Act of 1980 with respect to the 
                Department of State.
                    ``(B) Respect for journalistic integrity of 
                broadcasters.--The Inspector General shall respect the 
                journalistic integrity of all the broadcasters covered 
                by this title and may not evaluate the philosophical or 
                political perspectives reflected in the content of 
                broadcasts.''.

SEC. 1323. CONFORMING AMENDMENTS TO THE UNITED STATES INTERNATIONAL 
            BROADCASTING ACT OF 1994.

    (a) References in Section.--Whenever in this section an amendment or 
repeal is expressed as an amendment or repeal of a provision, the 
reference shall be deemed to be made to the United States International 
Broadcasting Act of 1994 (22 U.S.C. 6201 et seq.).
    (b) Substitution of Secretary of State.--Sections 304(b)(1)(B), 
304(b) (2) and (3), 304(c), and 304(e) (22 U.S.C. 6203(b)(1)(B), 6203(b) 
(2) and (3), 6203(c), and 6203(e)) are amended by striking ``Director of 
the United States Information Agency'' each place it appears and 
inserting ``Secretary of State''.
    (c) Substitution of Acting Secretary of State.--Section 304(c) (22 
U.S.C. 6203(c)) is amended by striking ``acting Director of the agency'' 
and inserting ``Acting Secretary of State''.
    (d) Standards and Principles of International Broadcasting.--Section 
303(b) (22 U.S.C. 6202(b)) is amended--
            (1) in paragraph (3), by inserting ``, including editorials, 
        broadcast by the Voice of America, which present the views of 
        the United States Government'' after ``policies'';
            (2) by redesignating paragraphs (4) through (9) as 
        paragraphs (5) through (10), respectively; and
            (3) by inserting after paragraph (3) the following:
            ``(4) the capability to provide a surge capacity to support 
        United States foreign policy objectives during crises abroad;'';

    (e) Authorities of the Board.--Section 305(a) (22 U.S.C. 6204(a)) is 
amended--
            (1) in paragraph (1)--
                    (A) by striking ``direct and''; and
                    (B) by striking ``and the Television Broadcasting to 
                Cuba Act'' and inserting ``, the Television Broadcasting 
                to Cuba Act, and Worldnet Television, except as provided 
                in section 306(b)'';
            (2) in paragraph (4), by inserting ``, after consultation 
        with the Secretary of State,'' after ``annually,'';
            (3) in paragraph (9)--
                    (A) by striking ``, through the Director of the 
                United States Information Agency,''; and
                    (B) by adding at the end the following new sentence: 
                ``Each annual report shall place special emphasis on the 
                assessment described in paragraph (2).'';
            (4) in paragraph (12)--
                    (A) by striking ``1994 and 1995'' and inserting 
                ``1998 and 1999''; and
                    (B) by striking ``to the Board for International 
                Broadcasting for such purposes for fiscal year 1993'' 
                and inserting

[[Page 112 STAT. 2681-779]]

                ``to the Board and the International Broadcasting Bureau 
                for such purposes for fiscal year 1997''; and
            (5) by adding at the end the following new paragraphs:
            ``(15)(A) To procure temporary and intermittent personal 
        services to the same extent as is authorized by section 3109 of 
        title 5, United States Code, at rates not to exceed the daily 
        equivalent of the rate provided for positions classified above 
        grade GS-15 of the General Schedule under section 5108 of title 
        5, United States Code.
            ``(B) To allow those providing such services, while away 
        from their homes or their regular places of business, travel 
        expenses (including per diem in lieu of subsistence) as 
        authorized by section 5703 of title 5, United States Code, for 
        persons in the Government service employed intermittently, while 
        so employed.
            ``(16) To procure, pursuant to section 1535 of title 31, 
        United States Code (commonly known as the `Economy Act'), such 
        goods and services from other departments or agencies for the 
        Board and the International Broadcasting Bureau as the Board 
        determines are appropriate.
            ``(17) To utilize the provisions of titles III, IV, V, VII, 
        VIII, IX, and X of the United States Information and Educational 
        Exchange Act of 1948, and section 6 of Reorganization Plan 
        Number 2 of 1977, as in effect on the day before the effective 
        date of title XIII of the Foreign Affairs Agencies Consolidation 
        Act of 1998, to the extent the Board considers necessary in 
        carrying out the provisions and purposes of this title.
            ``(18) To utilize the authorities of any other statute, 
        reorganization plan, Executive order, regulation, agreement, 
        determination, or other official document or proceeding that had 
        been available to the Director of the United States Information 
        Agency, the Bureau, or the Board before the effective date of 
        title XIII of the Foreign Affairs Consolidation Act of 1998 for 
        carrying out the broadcasting activities covered by this 
        title.''.

    (f) Delegation of Authority.--Section 305 (22 U.S.C. 6204) is 
amended--
            (1) by redesignating subsections (b), (c), and (d) as 
        subsections (c), (d), and (e), respectively; and
            (2) by inserting after subsection (a) the following new 
        subsection:

    ``(b) Delegation of Authority.--The Board may delegate to the 
Director of the International Broadcasting Bureau, or any other officer 
or employee of the United States, to the extent the Board determines to 
be appropriate, the authorities provided in this section, except those 
authorities provided in paragraph (1), (2), (3), (4), (5), (6), (9), or 
(11) of subsection (a).''.
    (g) Broadcasting Budgets.--Section 305(c)(1) (as redesignated) is 
amended--
            (1) by striking ``(1)'' before ``The Director''; and
            (2) by striking ``the Director of the United States 
        Information Agency for the consideration of the Director as a 
        part of the Agency's budget submission to''.

    (h) Repeal.--Section 305(c)(2) (as redesignated) is repealed.

    (i) Implementation.--Section 305(d) (as redesignated) is amended to 
read as follows:

[[Page 112 STAT. 2681-780]]

    ``(d) Professional Independence of Broadcasters.--The Secretary of 
State and the Board, in carrying out their functions, shall respect the 
professional independence and integrity of the International 
Broadcasting Bureau, its broadcasting services, and the grantees of the 
Board.''.
    (j) Foreign Policy Guidance.--Section 306 (22 U.S.C. 6205) is 
amended--
            (1) in the section heading, by striking ``FOREIGN POLICY 
        GUIDANCE'' and inserting ``ROLE OF THE SECRETARY OF STATE'';
            (2) by inserting ``(a) Foreign Policy Guidance.--'' 
        immediately before ``To'';
            (3) by striking ``State, acting through the Director of the 
        United States Information Agency,'' and inserting ``State'';
            (4) by inserting before the period at the end the following: 
        ``, as the Secretary may deem appropriate''; and
            (5) by adding at the end the following:

    ``(b) Certain Worldnet Programming.--The Secretary of State is 
authorized to use Worldnet broadcasts for the purposes of continuing 
interactive dialogues with foreign media and other similar overseas 
public diplomacy programs sponsored by the Department of State. The 
Chairman of the Broadcasting Board of Governors shall provide access to 
Worldnet for this purpose on a nonreimbursable basis.''.
    (k) International Broadcasting Bureau.--Section 307 (22 U.S.C. 6206) 
is amended--
            (1) in subsection (a), by striking ``within the United 
        States Information Agency'' and inserting ``under the Board'';
            (2) in subsection (b)(1), by striking ``Chairman of the 
        Board, in consultation with the Director of the United States 
        Information Agency and with the concurrence of a majority of the 
        Board'' and inserting ``President, by and with the advice and 
        consent of the Senate'';
            (3) by redesignating subsection (b)(1) as subsection (b);
            (4) by striking subsection (b)(2); and
            (5) by adding at the end the following new subsection:

    ``(c) Responsibilities of the Director.--The Director shall organize 
and chair a coordinating committee to examine and make recommendations 
to the Board on long-term strategies for the future of international 
broadcasting, including the use of new technologies, further 
consolidation of broadcast services, and consolidation of currently 
existing public affairs and legislative relations functions in the 
various international broadcasting entities. The coordinating committee 
shall include representatives of Radio Free Asia, RFE/RL, Incorporated, 
the Broadcasting Board of Governors, and, as appropriate, the Office of 
Cuba Broadcasting, the Voice of America, and Worldnet.''.
    (l) Repeals.--The following provisions of law are repealed:
            (1) Subsections (k) and (l) of section 308 (22 U.S.C. 6207 
        (k), (l)).
            (2) Section 310 (22 U.S.C. 6209).

SEC. 1324. AMENDMENTS TO THE RADIO BROADCASTING TO CUBA ACT.

    The Radio Broadcasting to Cuba Act (22 U.S.C. 1465 et seq.) is 
amended--

[[Page 112 STAT. 2681-781]]

            (1) <> by striking 
        ``United States Information Agency'' each place it appears and 
        inserting ``Broadcasting Board of Governors'';
            (2) <> by striking ``Agency'' each place it appears and 
        inserting ``Board'';
            (3) by striking ``the Director of the United States 
        Information Agency'' each place it appears and inserting ``the 
        Broadcasting Board of Governors'';
            (4) in section 4 (22 U.S.C. 1465b), by striking ``the Voice 
        of America'' and inserting ``the International Broadcasting 
        Bureau'';
            (5) in section 5 (22 U.S.C. 1465c)--
                    (A) by striking ``Board'' each place it appears and 
                inserting ``Advisory Board''; and
                    (B) in subsection (a), by striking the first 
                sentence and inserting ``There is established within the 
                Office of the President the Advisory Board for Cuba 
                Broadcasting (in this division referred to as the 
                `Advisory Board').''; and
            (6) <> by striking any other reference 
        to ``Director'' not amended by paragraph (3) each place it 
        appears and inserting ``Board''.

SEC. 1325. AMENDMENTS TO THE TELEVISION BROADCASTING TO CUBA ACT.

    The Television Broadcasting to Cuba Act (22 U.S.C. 1465aa et seq.) 
is amended--
            (1) in section 243(a) (22 U.S.C. 1465bb(a)) and section 246 
        (22 U.S.C. 1465dd), by striking ``United States Information 
        Agency'' each place it appears and inserting ``Broadcasting 
        Board of Governors'';
            (2) in section 243(c) (22 U.S.C. 1465bb(c))--
                    (A) in the subsection heading, by striking ``USIA''; 
                and
                    (B) by striking `` `USIA Television'' and inserting 
                ``the `Television'';
            (3) in section 244(c) (22 U.S.C. 1465cc(c)) and section 246 
        (22 U.S.C. 1465dd), by striking ``Agency'' each place it appears 
        and inserting ``Board'';
            (4) in section 244 (22 U.S.C. 1465cc)--
                    (A) in the section heading, by striking ``OF THE 
                UNITED STATES INFORMATION AGENCY'';
                    (B) in subsection (a)--
                          (i) in the first sentence, by striking ``The 
                      Director of the United States Information Agency 
                      shall establish'' and inserting ``There is''; and
                          (ii) in the second sentence--
                                    (I) by striking ``Director of the 
                                United States Information Agency'' and 
                                inserting ``Broadcasting Board of 
                                Governors''; and
                                    (II) by striking ``the Director of 
                                the Voice of America'' and inserting 
                                ``the International Broadcasting 
                                Bureau'';
                    (C) in subsection (b)--
                          (i) by striking ``Agency facilities'' and 
                      inserting ``Board facilities''; and
                          (ii) by striking ``Information Agency'' and 
                      inserting ``International''; and
                    (D) in the heading of subsection (c), by striking 
                ``USIA''; and

[[Page 112 STAT. 2681-782]]

            (5) in section 245(d) (22 U.S.C. 1465c note), by striking 
        ``Board'' and inserting ``Advisory Board''.

SEC. 1326. <> TRANSFER OF BROADCASTING RELATED 
            FUNDS, PROPERTY, AND PERSONNEL.
      (a) Transfer and Allocation of Property and Appropriations.--
            (1) In general.--The assets, liabilities (including 
        contingent liabilities arising from suits continued with a 
        substitution or addition of parties under section 1327(d)), 
        contracts, property, records, and unexpended balance of 
        appropriations, authorizations, allocations, and other funds 
        employed, held, used, arising from, available to, or to be made 
        available in connection with the functions and offices of USIA 
        transferred to the Broadcasting Board of Governors by this 
        chapter shall be transferred to the Broadcasting Board of 
        Governors for appropriate allocation.
            (2) Additional transfers.--In addition to the transfers made 
        under paragraph (1), there shall be transferred to the Chairman 
        of the Broadcasting Board of Governors the assets, contracts, 
        property, records, and unexpended balance of appropriations, 
        authorizations, allocations, and other funds, as determined by 
        the Secretary, in concurrence with the Broadcasting Board of 
        Governors, to support the functions transferred by this chapter.
      (b) Transfer of Personnel.--Notwithstanding any other provision of 
law--
            (1) except as provided in subsection (c), all personnel and 
        positions of USIA employed or maintained to carry out the 
        functions transferred by this chapter to the Broadcasting Board 
        of Governors shall be transferred to the Broadcasting Board of 
        Governors at the same grade or class and the same rate of basic 
        pay or basic salary rate and with the same tenure held 
        immediately preceding transfer; and
            (2) the personnel and positions of USIA, as determined by 
        the Secretary of State, with the concurrence of the Broadcasting 
        Board of Governors and the Director of USIA, to support the 
        functions transferred by this chapter shall be transferred to 
        the Broadcasting Board of Governors, including the International 
        Broadcasting Bureau, at the same grade or class and the same 
        rate of basic pay or basic salary rate and with the same tenure 
        held immediately preceding transfer.
      (c) Transfer and Allocation of Property, Appropriations, and 
Personnel Associated With Worldnet.--USIA personnel responsible for 
carrying out interactive dialogs with foreign media and other similar 
overseas public diplomacy programs using the Worldnet television 
broadcasting system, and funds associated with such personnel, shall be 
transferred to the Department of State in accordance with the provisions 
of title XVI of this subdivision.
      (d) Incidental Transfers.--The Director of the Office of 
Management and Budget, when requested by the Broadcasting Board of 
Governors, is authorized to make such incidental dispositions of 
personnel, assets, liabilities, grants, contracts, property, records, 
and unexpended balances of appropriations, authorizations, allocations, 
and other funds held, used, arising from, available to, or to be made 
available in connection with functions and offices

[[Page 112 STAT. 2681-783]]

transferred from USIA, as may be necessary to carry out the provisions 
of this section.

SEC. 1327. <> SAVINGS PROVISIONS.

    (a) Continuing Legal Force and Effect.--All orders, determinations, 
rules, regulations, permits, agreements, grants, contracts, 
certificates, licenses, registrations, privileges, and other 
administrative actions--
            (1) that have been issued, made, granted, or allowed to 
        become effective by the President, any Federal agency or 
        official thereof, or by a court of competent jurisdiction, in 
        the performance of functions exercised by the Broadcasting Board 
        of Governors of the United States Information Agency on the day 
        before the effective date of this title, and
            (2) that are in effect at the time this title takes effect, 
        or were final before the effective date of this title and are to 
        become effective on or after the effective date of this title,

shall continue in effect according to their terms until modified, 
terminated, superseded, set aside, or revoked in accordance with law by 
the President, the Broadcasting Board of Governors, or other authorized 
official, a court of competent jurisdiction, or by operation of law.
    (b) Pending Proceedings.--
            (1) In general.--The provisions of this chapter, or 
        amendments made by this chapter, shall not affect any 
        proceedings, including notices of proposed rulemaking, or any 
        application for any license, permit, certificate, or financial 
        assistance pending before the Broadcasting Board of Governors of 
        the United States Information Agency at the time this title 
        takes effect, with respect to functions exercised by the Board 
        as of the effective date of this title but such proceedings and 
        applications shall be continued.
            (2) Orders, appeals, and payments.--Orders shall be issued 
        in such proceedings, appeals shall be taken therefrom, and 
        payments shall be made pursuant to such orders, as if this 
        chapter had not been enacted, and orders issued in any such 
        proceedings shall continue in effect until modified, terminated, 
        superseded, or revoked by a duly authorized official, by a court 
        of competent jurisdiction, or by operation of law.
            (3) Statutory construction.--Nothing in this subsection 
        shall be deemed to prohibit the discontinuance or modification 
        of any such proceeding under the same terms and conditions and 
        to the same extent that such proceeding could have been 
        discontinued or modified if this chapter had not been enacted.

    (c) Nonabatement of Proceedings.--No suit, action, or other 
proceeding commenced by or against any officer in the official capacity 
of such individual as an officer of the Broadcasting Board of Governors, 
or any commission or component thereof, shall abate by reason of the 
enactment of this chapter. No cause of action by or against the 
Broadcasting Board of Governors, or any commission or component thereof, 
or by or against any officer thereof in the official capacity of such 
officer, shall abate by reason of the enactment of this chapter.
    (d) Continuation of Proceedings With Substitution of Parties.--
            (1) Substitution of parties.--If, before the effective date 
        of this title, USIA or the Broadcasting Board of Governors,

[[Page 112 STAT. 2681-784]]

        or any officer thereof in the official capacity of such officer, 
        is a party to a suit which is related to the functions 
        transferred by this chapter, then effective on such date such 
        suit shall be continued with the Broadcasting Board of Governors 
        or other appropriate official of the Board substituted or added 
        as a party.
            (2) Liability of the board.--The Board shall participate in 
        suits continued under paragraph (1) where the Broadcasting Board 
        of Governors or other appropriate official of the Board is added 
        as a party and shall be liable for any judgments or remedies in 
        those suits or proceedings arising from the exercise of the 
        functions transferred by this chapter to the same extent that 
        USIA would have been liable if such judgment or remedy had been 
        rendered on the day before the abolition of USIA.

    (e) Administrative Actions Relating to Promulgation of 
Regulations.--Any administrative action relating to the preparation or 
promulgation of a regulation by the Broadcasting Board of Governors 
relating to a function exercised by the Board before the effective date 
of this title may be continued by the Board with the same effect as if 
this chapter had not been enacted.
    (f) References.--Reference in any other Federal law, Executive 
order, rule, regulation, or delegation of authority, or any document of 
or relating to the Broadcasting Board of Governors of the United States 
Information Agency with regard to functions exercised before the 
effective date of this title, shall be deemed to refer to the Board.

SEC. 1328. <> REPORT ON THE PRIVATIZATION OF RFE/RL, 
            INCORPORATED.
      Not later than March 1 of each year, the Broadcasting Board of 
Governors shall submit to the appropriate congressional committees a 
report on the progress of the Board and of RFE/RL, Incorporated, on any 
steps taken to further the policy declared in section 312(a) of the 
Foreign Relations Authorization Act, Fiscal Years 1994 and 1995. The 
report under this subsection shall include the following:
            (1) Efforts by RFE/RL, Incorporated, to terminate individual 
        language services.
            (2) A detailed description of steps taken with regard to 
        section 312(a) of that Act.
            (3) An analysis of prospects for privatization over the 
        coming year.
            (4) An assessment of the extent to which United States 
        Government funding may be appropriate in the year 2000 and 
        subsequent years for surrogate broadcasting to the countries to 
        which RFE/RL, Incorporated, broadcast during the year. This 
        assessment shall include an analysis of the environment for 
        independent media in those countries, noting the extent of 
        government control of the media, the ability of independent 
        journalists and news organizations to operate, relevant domestic 
        legislation, level of government harassment and efforts to 
        censor, and other indications of whether the people of such 
        countries enjoy freedom of expression.

[[Page 112 STAT. 2681-785]]

                    CHAPTER 4--CONFORMING AMENDMENTS

SEC. 1331. <> REFERENCES.
      (a) In General.--Except as otherwise provided in this subdivision, 
any reference in any statute, reorganization plan, Executive order, 
regulation, agreement, determination, or other official document or 
proceeding to--
            (1) the Director of the United States Information Agency or 
        the Director of the International Communication Agency shall be 
        deemed to refer to the Secretary of State; and
            (2) the United States Information Agency, USIA, or the 
        International Communication Agency shall be deemed to refer to 
        the Department of State.
      (b) Continuing References to USIA or Director.--Subsection (a) 
shall not apply to section 146 (a), (b), or (c) of the Foreign Relations 
Authorization Act, Fiscal Years 1990 and 1991 (22 U.S.C. 4069a(f), 
4069b(g), or 4069c(f)).

SEC. 1332. AMENDMENTS TO TITLE 5, UNITED STATES CODE.

      Title 5, United States Code, is amended--
            (1) in section 5313, by striking ``Director of the United 
        States Information Agency.'';
            (2) in section 5315--
                    (A) by striking ``Deputy Director of the United 
                States Information Agency.''; and
                    (B) by striking ``Director of the International 
                Broadcasting Bureau, the United States Information 
                Agency.'' and inserting ``Director of the International 
                Broadcasting Bureau.''; and
            (3) in section 5316--
                    (A) by striking ``Deputy Director, Policy and Plans, 
                United States Information Agency.''; and
                    (B) by striking ``Associate Director (Policy and 
                Plans), United States Information Agency.''.

SEC. 1333. <> APPLICATION OF CERTAIN LAWS.
      (a) Application to Functions of Department of State.--Section 501 
of Public Law 80-402 (22 U.S.C. 1461), section 202 of Public Law 95-426 
(22 U.S.C. 1461-1), and section 208 of Public Law 99-93 (22 U.S.C. 1461-
1a) shall not apply to public affairs and other information 
dissemination functions of the Secretary of State as carried out prior 
to any transfer of functions pursuant to this subdivision.
      (b) Application to Functions Transferred to Department of State.--
Section 501 of Public Law 80-402 (22 U.S.C. 1461), section 202 of Public 
Law 95-426 (22 U.S.C. 1461-1), and section 208 of Public Law 99-93 (22 
U.S.C. 1461-1a) shall apply only to public diplomacy programs of the 
Director of the United States Information Agency as carried out prior to 
any transfer of functions pursuant to this subdivision to the same 
extent that such programs were covered by these provisions prior to such 
transfer.
      (c) Limitation on Use of Funds.--Except as provided in section 501 
of Public Law 80-402 and section 208 of Public Law 99-93, funds 
specifically authorized to be appropriated for such public diplomacy 
programs shall not be used to influence public opinion in the United 
States, and no program material prepared

[[Page 112 STAT. 2681-786]]

using such funds shall be distributed or disseminated in the United 
States.
      (d) Reporting Requirements.--The report submitted pursuant to 
section 1601(f) of this subdivision shall include a detailed statement 
of the manner in which the special mission of public diplomacy carried 
out by USIA prior to the transfer of functions under this subdivision 
shall be preserved within the Department of State, including the planned 
duties and responsibilities of any new bureaus that will perform such 
public diplomacy functions. Such report shall also include the best 
available estimates of--
            (1) the amounts expended by the Department of State for 
        public affairs programs during fiscal year 1998, and on the 
        personnel and support costs for such programs;
            (2) the amounts expended by USIA for its public diplomacy 
        programs during fiscal year 1998, and on the personnel and 
        support costs for such programs; and
            (3) the amounts, including funds to be transferred from USIA 
        and funds appropriated to the Department, that will be allocated 
        for the programs described in paragraphs (1) and (2), 
        respectively, during the fiscal year in which the transfer of 
        functions from USIA to the Department occurs.
      (e) Congressional Presentation Document.--The Department of 
State's Congressional Presentation Document for fiscal year 2000 and 
each fiscal year thereafter shall include--
            (1) the aggregated amounts that the Department will spend on 
        such public diplomacy programs and on costs of personnel for 
        such programs, and a detailed description of the goals and 
        purposes for which such funds shall be expended; and
            (2) the amount of funds allocated to and the positions 
        authorized for such public diplomacy programs, including bureaus 
        to be created upon the transfer of functions from USIA to the 
        Department.

SEC. 1334. <> ABOLITION OF UNITED STATES ADVISORY 
            COMMISSION ON PUBLIC DIPLOMACY.
      (a) Abolition.--The United States Advisory Commission on Public 
Diplomacy is abolished.
      (b) Repeals.--Section 604 of the United States Information and 
Educational Exchange Act of 1948 (22 U.S.C. 1469) and section 8 of 
Reorganization Plan Numbered 2 of 1977 are repealed.

SEC. 1335. CONFORMING AMENDMENTS.

      (a) The United States Information and Educational Exchange Act of 
1948 (22 U.S.C. 1431 et seq.) is amended--
            (1) in section 505 (22 U.S.C. 1464a)--
                    (A) by striking ``Director of the United States 
                Information Agency'' each place it appears and inserting 
                ``Broadcasting Board of Governors'';
                    (B) by striking ``United States Information Agency'' 
                each place it appears and inserting ``Broadcasting Board 
                of Governors'';
                    (C) in subsection (b)--
                          (i) by striking ``Agency's'' and all that 
                      follows through `` `USIA-TV')'' and inserting 
                      ``television broadcasts of the United States 
                      International Television Service''; and

[[Page 112 STAT. 2681-787]]

                          (ii) in paragraphs (1), (2), and (3), by 
                      striking ``USIA-TV'' each place it appears and 
                      inserting ``The United States International 
                      Television Service''; and
                    (D) in subsections (d) and (e), by striking ``USIA-
                TV'' each place it appears and inserting ``the United 
                States International Television Service'';
            (2) in section 506(c) (22 U.S.C. 1464b(c))--
                    (A) by striking ``Director of the United States 
                Information Agency'' and inserting ``Broadcasting Board 
                of Governors'';
                    (B) by striking ``Agency'' and inserting ``Board''; 
                and
                    (C) by striking ``Director'' and inserting 
                ``Board'';
            (3) in section 705 (22 U.S.C 1477c)--
                    (A) by striking subsections (a) and (c); and
                    (B) in subsection (b)--
                          (i) by striking ``(b) In addition, the United 
                      States Information Agency'' and inserting ``The 
                      Department of State''; and
                          (ii) by striking ``program grants'' and 
                      inserting ``grants for overseas public diplomacy 
                      programs'';
            (4) in section 801(7) (22 U.S.C. 1471(7))--
                    (A) by striking ``Agency'' and inserting ``overseas 
                public diplomacy''; and
                    (B) by inserting ``other'' after ``together with''; 
                and
            (5) in section 812 (22 U.S.C. 1475g)--
                    (A) by striking ``United States Information Agency 
                post'' each place it appears and inserting ``overseas 
                public diplomacy post'';
                    (B) in subsection (a), by striking ``United States 
                Information Agency'' the first place it appears and 
                inserting ``Department of State'';
                    (C) in subsection (b), by striking ``Director of the 
                United States Information Agency'' and inserting 
                ``Secretary of State''; and
                    (D) in the section heading, by striking ``USIA'' and 
                inserting ``OVERSEAS PUBLIC DIPLOMACY''.
      (b) Section 212 of the Foreign Relations Authorization Act, Fiscal 
Years 1992 and 1993 (22 U.S.C. 1475h) is amended--
            (1) by striking ``United States Information Agency'' each 
        place it appears and inserting ``Department of State'';
            (2) in subsection (a), by inserting ``for carrying out its 
        overseas public diplomacy functions'' after ``grants'';
            (3) in subsection (b)--
                    (A) by striking ``a grant'' the first time it 
                appears and inserting ``an overseas public diplomacy 
                grant''; and
                    (B) in paragraph (1), by inserting ``such'' before 
                ``a grant'' the first place it appears;
            (4) in subsection (c)(1), by inserting ``overseas public 
        diplomacy'' before ``grants'';
            (5) in subsection (c)(3), by inserting ``such'' before 
        ``grant''; and
            (6) by striking subsection (d).
      (c) Section 602 of the National and Community Service Act of 1990 
(22 U.S.C. 2452a) is amended--
            (1) in the second sentence of subsection (a), by striking 
        ``United States Information Agency'' and inserting ``Department 
        of State''; and

[[Page 112 STAT. 2681-788]]

            (2) in subsection (b)--
                    (A) by striking ``appropriations account of the 
                United States Information Agency'' and inserting 
                ``appropriate appropriations account of the Department 
                of State''; and
                    (B) by striking ``and the United States Information 
                Agency''.

    (d) Section 305 of Public Law 97-446 (19 U.S.C. 2604) is amended in 
the first sentence, by striking ``, after consultation with the Director 
of the United States Information Agency,''.
    (e) Section 601 of Public Law 103-227 (20 U.S.C. 5951(a)) is amended 
by striking ``of the Director of the United States Information Agency 
and with'' and inserting ``and''.
    (f) Section 1003(b) of the Fascell Fellowship Act (22 U.S.C. 
4902(b)) is amended--
            (1) in the text above paragraph (1), by striking ``9 
        members'' and inserting ``7 members'';
            (2) in paragraph (4), by striking ``Six'' and inserting 
        ``Five'';
            (3) by striking paragraph (3); and
            (4) by redesignating paragraph (4) as paragraph (3).

    (g) Section 803 of the Intelligence Authorization Act, Fiscal Year 
1992 (50 U.S.C. 1903) is amended--
            (1) in subsection (b)--
                    (A) by striking paragraph (6); and
                    (B) by redesignating paragraphs (7) and (8) as 
                paragraphs (6) and (7), respectively; and
            (2) in subsection (c), by striking ``subsection (b)(7)'' and 
        inserting ``subsection (b)(6)''.

    (h) Section 7 of the Federal Triangle Development Act (40 U.S.C. 
1106) is amended--
            (1) in subsection (c)(1)--
                    (A) in the text above subparagraph (A), by striking 
                ``15 members'' and inserting ``14 members'';
                    (B) by striking subparagraph (F); and
                    (C) by redesignating subparagraphs (G) through (J) 
                as subparagraphs (F) through (I), respectively;
            (2) in paragraphs (3) and (5) of subsection (c), by striking 
        ``paragraph (1)(J)'' each place it appears and inserting 
        ``paragraph (1)(I)''; and
            (3) in subsection (d)(3) and subsection (e), by striking 
        ``the Administrator and the Director of the United States 
        Information Agency'' each place it appears and inserting ``and 
        the Administrator''.

    (i) Section 3 of the Woodrow Wilson Memorial Act of 1968 (Public Law 
90-637; 20 U.S.C. 80f) is amended--
            (1) in subsection (b)--
                    (A) in the text preceding paragraph (1), by striking 
                ``19 members'' and inserting ``17 members'';
                    (B) by striking paragraph (7);
                    (C) by striking ``10'' in paragraph (10) and 
                inserting ``9''; and
                    (D) by redesignating paragraphs (8) through (10) as 
                paragraphs (7) through (9), respectively; and
            (2) in subsection (c), by striking ``(9)'' and inserting 
        ``(8)''.

    (j) Section 624 of Public Law 89-329 (20 U.S.C. 1131c) is amended by 
striking ``the United States Information Agency,''.
    (k) The Foreign Service Act of 1980 (22 U.S.C. 3901 et seq.) is 
amended--

[[Page 112 STAT. 2681-789]]

            (1) in section 202(a)(1) (22 U.S.C. 3922(a)(1)), by striking 
        ``Director of the United States Information Agency'' and 
        inserting ``Broadcasting Board of Governors'';
            (2) in section 210 (22 U.S.C. 3930), by striking ``United 
        States Information Agency'' and inserting ``Broadcasting Board 
        of Governors'';
            (3) in section 1003(a) (22 U.S.C. 4103(a)), by striking 
        ``United States Information Agency'' and inserting 
        ``Broadcasting Board of Governors''; and
            (4) in section 1101(c) (22 U.S.C. 4131(c)), by striking 
        ``the United States Information Agency,'' and inserting 
        ``Broadcasting Board of Governors,''.

    (l) The State Department Authorities Act of 1956, as amended by this 
division, is further amended--
            (1) in section 23(a) (22 U.S.C. 2695(a)), by striking 
        ``United States Information Agency'' and inserting 
        ``Broadcasting Board of Governors'';
            (2) in section 25(f) (22 U.S.C. 2697(f))--
                    (A) by striking ``Director of the United States 
                Information Agency'' and inserting ``Broadcasting Board 
                of Governors''; and
                    (B) by striking ``with respect to their respective 
                agencies'' and inserting ``with respect to the Board and 
                the Agency'';
            (3) in section 26(b) (22 U.S.C. 2698(b)), as amended by this 
        division--
                    (A) by striking ``Director of the United States 
                Information Agency, the chairman of the Board for 
                International Broadcasting,'' and inserting 
                ``Broadcasting Board of Governors,''; and
                    (B) by striking ``with respect to their respective 
                agencies'' and inserting ``with respect to the Board and 
                the Agency''; and
            (4) in section 32 (22 U.S.C. 2704), as amended by this 
        division, by striking ``the Director of the United States 
        Information Agency'' and inserting ``the Broadcasting Board of 
        Governors''.
      (m) Section 507(b)(3) of Public Law 103-317 (22 U.S.C. 
2669a(b)(3)) is amended by striking ``, the United States Information 
Agency,''.
      (n) Section 502 of Public Law 92-352 (2 U.S.C. 194a) is amended by 
striking ``the United States Information Agency,''.
      (o) Section 6 of Public Law 104-288 (22 U.S.C. 2141d) is amended--
            (1) in subsection (a), by striking ``Director of the United 
        States Information Agency,''; and
            (2) in subsection (b), by striking ``the Director of the 
        United States Information Agency'' and inserting ``the Under 
        Secretary of State for Public Diplomacy''.
      (p) Section 40118(d) of title 49, United States Code, is amended 
by striking ``, the Director of the United States Information Agency,''.
      (q) Section 155 of Public Law 102-138 <> is amended--
            (1) by striking the comma before ``Department of Commerce'' 
        and inserting ``and''; and
            (2) by striking ``, and the United States Information 
        Agency''.

[[Page 112 STAT. 2681-790]]

      (r) Section 107 of the Cuban Liberty and Democratic Solidarity 
(LIBERTAD) Act of 1996 (22 U.S.C. 6037) is amended by striking 
``Director of the United States Information Agency'' each place it 
appears and inserting ``Director of the International Broadcasting 
Bureau''.

SEC. 1336. REPEALS.

      The following provisions are repealed:
            (1) Sections 701 (22 U.S.C. 1476), 704 (22 U.S.C. 1477b), 
        807 (22 U.S.C 1475b), 808 (22 U.S.C 1475c), 811 (22 U.S.C 
        1475f), and 1009 (22 U.S.C. 1440) of the United States 
        Information and Educational Exchange Act of 1948.
            (2) Section 106(c) of the Mutual Educational and Cultural 
        Exchange Act of 1961 (22 U.S.C. 2456(c)).
            (3) Section 565(e) of the Anti-Economic Discrimination Act 
        of 1994 (22 U.S.C. 2679c(e)).
            (4) <> Section 206(b) of Public 
        Law 102-138.
            (5) Section 2241 of Public Law 104-66.
            (6) Sections 1 through 6 of Reorganization Plan Numbered 2 
        of 1977 (91 Stat. 636).
            (7) Section 207 of the Foreign Relations Authorization Act, 
        Fiscal Years 1988 and 1989 (Public Law 100-204; 22 U.S.C. 1463 
        note).

  TITLE XIV--UNITED STATES INTERNATIONAL DEVELOPMENT COOPERATION AGENCY

                      CHAPTER 1--GENERAL PROVISIONS

SEC. 1401. <> EFFECTIVE DATE.

    This title, and the amendments made by this title, shall take effect 
on the earlier of--
            (1) April 1, 1999; or
            (2) the date of abolition of the United States International 
        Development Cooperation Agency pursuant to the reorganization 
        plan described in section 1601.

             CHAPTER 2--ABOLITION AND TRANSFER OF FUNCTIONS

SEC. 1411. <> ABOLITION OF UNITED STATES 
            INTERNATIONAL DEVELOPMENT COOPERATION AGENCY.

    (a) In General.--Except for the components specified in subsection 
(b), the United States International Development Cooperation Agency 
(including the Institute for Scientific and Technological Cooperation) 
is abolished.
    (b) AID and OPIC Exempted.--Subsection (a) does not apply to the 
Agency for International Development or the Overseas Private Investment 
Corporation.

SEC. 1412. <> TRANSFER OF FUNCTIONS AND AUTHORITIES.

    (a) Allocation of Funds.--
            (1) Allocation to the secretary of state.--Funds made 
        available under the categories of assistance deemed allocated to 
        the Director of the International Development Cooperation Agency 
        under section 1-801 of Executive Order No. 12163 (22 U.S.C. 2381 
        note) as of October 1, 1997, shall be allocated

[[Page 112 STAT. 2681-791]]

        to the Secretary of State on and after the effective date of 
        this title without further action by the President.
            (2) Procedures for reallocations or transfers.--The 
        Secretary of State may allocate or transfer as appropriate any 
        funds received under paragraph (1) in the same manner as 
        previously provided for the Director of the International 
        Development Cooperation Agency under section 1-802 of that 
        Executive Order, as in effect on October 1, 1997.

    (b) With Respect to the Overseas Private Investment Corporation.--
There are transferred to the Administrator of the Agency for 
International Development all functions of the Director of the United 
States International Development Cooperation Agency as of the day before 
the effective date of this title with respect to the Overseas Private 
Investment Corporation.
    (c) Other Activities.--The authorities and functions transferred to 
the United States International Development Cooperation Agency or the 
Director of that Agency by section 6 of Reorganization Plan Numbered 2 
of 1979 shall, to the extent such authorities and functions have not 
been repealed, be transferred to those agencies or heads of agencies, as 
the case may be, in which those authorities and functions were vested by 
statute as of the day before the effective date of such reorganization 
plan.

SEC. 1413. <> STATUS OF AID.

    (a) In General.--Unless abolished pursuant to the reorganization 
plan submitted under section 1601, and except as provided in section 
1412, there is within the Executive branch of Government the United 
States Agency for International Development as an entity described in 
section 104 of title 5, United States Code.
    (b) Retention of Officers.--Nothing in this section shall require 
the reappointment of any officer of the United States serving in the 
Agency for International Development of the United States International 
Development Cooperation Agency as of the day before the effective date 
of this title.

                    CHAPTER 3--CONFORMING AMENDMENTS

SEC. 1421. <> REFERENCES.

    Except as otherwise provided in this subdivision, any reference in 
any statute, reorganization plan, Executive order, regulation, 
agreement, determination, or other official document or proceeding to 
the United States International Development Cooperation Agency (IDCA) or 
to the Director or any other officer or employee of IDCA--
            (1) insofar as such reference relates to any function or 
        authority transferred under section 1412(a), shall be deemed to 
        refer to the Secretary of State;
            (2) insofar as such reference relates to any function or 
        authority transferred under section 1412(b), shall be deemed to 
        refer to the Administrator of the Agency for International 
        Development;
            (3) insofar as such reference relates to any function or 
        authority transferred under section 1412(c), shall be deemed to 
        refer to the head of the agency to which such function or 
        authority is transferred under such section; and
            (4) insofar as such reference relates to any function or 
        authority not transferred by this title, shall be deemed to

[[Page 112 STAT. 2681-792]]

        refer to the President or such agency or agencies as may be 
        specified by Executive order.

SEC. 1422. CONFORMING AMENDMENTS.

     <> (a) Termination of 
Reorganization Plans and Delegations.--The following shall cease to be 
effective:
            (1) Reorganization Plan Numbered 2 of 1979 (5 U.S.C. App.).
            (2) Section 1-101 through 1-103, sections 1-401 through 1-
        403, section 1-801(a), and such other provisions that relate to 
        the United States International Development Cooperation Agency 
        or the Director of IDCA, of Executive Order No. 12163 (22 U.S.C. 
        2381 note; relating to administration of foreign assistance and 
        related functions).
            (3) The International Development Cooperation Agency 
        Delegation of Authority Numbered 1 (44 Fed. Reg. 57521), except 
        for section 1-6 of such Delegation of Authority.
            (4) <> Section 3 of Executive Order 
        No. 12884 (58 Fed. Reg. 64099; relating to the delegation of 
        functions under the Freedom for Russia and Emerging Eurasian 
        Democracies and Open Markets Support Act of 1992, the Foreign 
        Assistance Act of 1961, the Foreign Operations, Export Financing 
        and Related Programs Appropriations Act, 1993, and section 301 
        of title 3, United States Code).

    (b) Other Statutory Amendments and Repeal.--
            (1) Title 5.--Section 7103(a)(2)(B)(iv) of title 5, United 
        States Code, is amended by striking ``United States 
        International Development Cooperation Agency'' and inserting 
        ``Agency for International Development''.
            (2) Inspector general act of 1978.--Section 8A of the 
        Inspector General Act of 1978 (5 U.S.C. App. 3) is amended--
                    (A) in subsection (a)--
                          (i) by striking ``Development'' through ``(1) 
                      shall'' and inserting ``Development shall'';
                          (ii) by striking ``; and'' at the end of 
                      subsection (a)(1) and inserting a period; and
                          (iii) by striking paragraph (2);
                    (B) by striking subsections (c) and (f); and
                    (C) by redesignating subsections (d), (e), (g), and 
                (h) as subsections (c), (d), (e), and (f), respectively.
            (3) State department basic authorities act of 1956.--The 
        State Department Basic Authorities Act of 1956 is amended--
                    (A) in section 25(f) (22 U.S.C. 2697(f)), as amended 
                by this division, by striking ``Director of the United 
                States International Development Cooperation Agency'' 
                and inserting ``Administrator of the Agency for 
                International Development'';
                    (B) in section 26(b) (22 U.S.C. 2698(b)), as amended 
                by this divisionAct, by striking ``Director of the 
                United States International Development Cooperation 
                Agency'' and inserting ``Administrator of the Agency for 
                International Development''; and
                    (C) in section 32 (22 U.S.C. 2704), by striking 
                ``Director of the United States International 
                Development Cooperation Agency'' and inserting 
                ``Administrator of the Agency for International 
                Development''.

[[Page 112 STAT. 2681-793]]

            (4) Foreign service act of 1980.--The Foreign Service Act of 
        1980 is amended--
                    (A) in section 202(a)(1) (22 U.S.C. 3922(a)(1)), by 
                striking ``Director of the United States International 
                Development Cooperation Agency'' and inserting 
                ``Administrator of the Agency for International 
                Development'';
                    (B) in section 210 (22 U.S.C. 3930), by striking 
                ``United States International Development Cooperation 
                Agency'' and inserting ``Agency for International 
                Development'';
                    (C) in section 1003(a) (22 U.S.C. 4103(a)), by 
                striking ``United States International Development 
                Cooperation Agency'' and inserting ``Agency for 
                International Development''; and
                    (D) in section 1101(c) (22 U.S.C. 4131(c)), by 
                striking ``United States International Development 
                Cooperation Agency'' and inserting ``Agency for 
                International Development''.
            (5) Repeal.--Section 413 of Public Law 96-53 (22 U.S.C. 
        3512) is repealed.
            (6) Title 49.--Section 40118(d) of title 49, United States 
        Code, is amended by striking ``the Director of the United States 
        International Development Cooperation Agency'' and inserting 
        ``or the Administrator of the Agency for International 
        Development''.
            (7) Export administration act of 1979.--Section 2405(g) of 
        the Export Administration Act of 1979 (50 U.S.C. App. 2405(g)) 
        is amended--
                    (A) by striking ``Director of the United States 
                International Development Cooperation Agency'' each 
                place it appears and inserting ``Administrator of the 
                Agency for International Development''; and
                    (B) in the fourth sentence, by striking ``Director'' 
                and inserting ``Administrator''.

             TITLE XV--AGENCY FOR INTERNATIONAL DEVELOPMENT

                      CHAPTER 1--GENERAL PROVISIONS

SEC. 1501. <> EFFECTIVE DATE.

    This title, and the amendments made by this title, shall take effect 
on the earlier of--
            (1) April 1, 1999; or
            (2) the date of reorganization of the Agency for 
        International Development pursuant to the reorganization plan 
        described in section 1601.

           CHAPTER 2--REORGANIZATION AND TRANSFER OF FUNCTIONS

SEC. 1511. REORGANIZATION OF AGENCY FOR <> INTERNATIONAL DEVELOPMENT.

    (a) In General.--The Agency for International Development shall be 
reorganized in accordance with this subdivision and the reorganization 
plan transmitted pursuant to section 1601.
    (b) Functions To Be Transferred.--The reorganization of the Agency 
for International Development shall provide, at a

[[Page 112 STAT. 2681-794]]

minimum, for the transfer to and consolidation with the Department of 
State of the following functions of AID:
            (1) The Press office.
            (2) Certain administrative functions.

            CHAPTER 3--AUTHORITIES OF THE SECRETARY OF STATE

SEC. 1521. <> DEFINITION OF UNITED STATES 
            ASSISTANCE.

    In this chapter, the term ``United States assistance'' means 
development and other economic assistance, including assistance made 
available under the following provisions of law:
            (1) Chapter 1 of part I of the Foreign Assistance Act of 
        1961 (relating to development assistance).
            (2) Chapter 4 of part II of the Foreign Assistance Act of 
        1961 (relating to the economic support fund).
            (3) Chapter 10 of part I of the Foreign Assistance Act of 
        1961 (relating to the Development Fund for Africa).
            (4) Chapter 11 of part I of the Foreign Assistance Act of 
        1961 (relating to assistance for the independent states of the 
        former Soviet Union).
            (5) The Support for East European Democracy Act (22 U.S.C. 
        5401 et seq.).

SEC. 1522. <> ADMINISTRATOR OF AID REPORTING TO THE 
            SECRETARY OF STATE.

    The Administrator of the Agency for International Development, 
appointed pursuant to section 624(a) of the Foreign Assistance Act of 
1961 (22 U.S.C. 2384(a)), shall report to and be under the direct 
authority and foreign policy guidance of the Secretary of State.

SEC. 1523. <> ASSISTANCE PROGRAMS COORDINATION AND 
            OVERSIGHT.

    (a) Authority of the Secretary of State.--
            (1) In general.--Under the direction of the President, the 
        Secretary of State shall coordinate all United States assistance 
        in accordance with this section, except as provided in 
        paragraphs (2) and (3).
            (2) Export promotion activities.--Coordination of activities 
        relating to promotion of exports of United States goods and 
        services shall continue to be primarily the responsibility of 
        the Secretary of Commerce.
            (3) International economic activities.--Coordination of 
        activities relating to United States participation in 
        international financial institutions and relating to 
        organization of multilateral efforts aimed at currency 
        stabilization, currency convertibility, debt reduction, and 
        comprehensive economic reform programs shall continue to be 
        primarily the responsibility of the Secretary of the Treasury.
            (4) Authorities and powers of the secretary of state.--The 
        powers and authorities of the Secretary provided in this chapter 
        are in addition to the powers and authorities provided to the 
        Secretary under any other Act, including section 101(b) and 
        section 622(c) of the Foreign Assistance Act of 1961 (22 U.S.C. 
        2151(b), 2382(c)).

    (b) Coordination Activities.--Coordination activities of the 
Secretary of State under subsection (a) shall include--

[[Page 112 STAT. 2681-795]]

            (1) approving an overall assistance and economic cooperation 
        strategy;
            (2) ensuring program and policy coordination among agencies 
        of the United States Government in carrying out the policies set 
        forth in the Foreign Assistance Act of 1961, the Arms Export 
        Control Act, and other relevant assistance Acts;
            (3) pursuing coordination with other countries and 
        international organizations; and
            (4) resolving policy, program, and funding disputes among 
        United States Government agencies.

    (c) Statutory Construction.--Nothing in this section may be 
construed to lessen the accountability of any Federal agency 
administering any program, project, or activity of United States 
assistance for any funds made available to the Federal agency for that 
purpose.
    (d) Authority To Provide Personnel of the Agency for International 
Development.--The Administrator of the Agency for International 
Development is authorized to detail to the Department of State on a 
nonreimbursable basis such personnel employed by the Agency as the 
Secretary of State may require to carry out this section.

                          TITLE XVI--TRANSITION

                     CHAPTER 1--REORGANIZATION PLAN

SEC. 1601. <> REORGANIZATION PLAN AND 
            REPORT.

    (a) Submission of Plan and Report.--Not later than 60 days after the 
date of the enactment of this Act, the President shall transmit to the 
appropriate congressional committees a reorganization plan and report 
regarding--
            (1) the abolition of the United States Arms Control and 
        Disarmament Agency, the United States Information Agency, and 
        the United States International Development Cooperation Agency 
        in accordance with this subdivision;
            (2) with respect to the Agency for International 
        Development, the consolidation and streamlining of the Agency 
        and the transfer of certain functions of the Agency to the 
        Department in accordance with section 1511;
            (3) the termination of functions of each covered agency as 
        may be necessary to effectuate the reorganization under this 
        subdivision, and the termination of the affairs of each agency 
        abolished under this subdivision;
            (4) the transfer to the Department of the functions and 
        personnel of each covered agency consistent with the provisions 
        of this subdivision; and
            (5) the consolidation, reorganization, and streamlining of 
        the Department in connection with the transfer of such functions 
        and personnel in order to carry out such functions.

    (b) Covered Agencies.--The agencies covered by this section are the 
following:
            (1) The United States Arms Control and Disarmament Agency.
            (2) The United States Information Agency.
            (3) The United States International Development Cooperation 
        Agency.
            (4) The Agency for International Development.

[[Page 112 STAT. 2681-796]]

    (c) Plan Elements.--The plan transmitted under subsection (a) shall 
contain, consistent with this subdivision, such elements as the 
President deems appropriate, including elements that--
            (1) identify the functions of each covered agency that will 
        be transferred to the Department under the plan;
            (2) specify the steps to be taken by the Secretary of State 
        to reorganize internally the functions of the Department, 
        including the consolidation of offices and functions, that will 
        be required under the plan in order to permit the Department to 
        carry out the functions transferred to it under the plan;
            (3) specify the funds available to each covered agency that 
        will be transferred to the Department as a result of the 
        transfer of functions of such agency to the Department;
            (4) specify the proposed allocations within the Department 
        of unexpended funds transferred in connection with the transfer 
        of functions under the plan; and
            (5) specify the proposed disposition of the property, 
        facilities, contracts, records, and other assets and liabilities 
        of each covered agency in connection with the transfer of the 
        functions of such agency to the Department.

    (d) Reorganization Plan of Agency for International Development.--In 
addition to applicable provisions of subsection (c), the reorganization 
plan transmitted under this section for the Agency for International 
Development--
            (1) may provide for the abolition of the Agency for 
        International Development and the transfer of all its functions 
        to the Department of State; or
            (2) in lieu of the abolition and transfer of functions under 
        paragraph (1)--
                    (A) shall provide for the transfer to and 
                consolidation within the Department of the functions set 
                forth in section 1511; and
                    (B) may provide for additional consolidation, 
                reorganization, and streamlining of AID, including--
                          (i) the termination of functions and 
                      reductions in personnel of AID;
                          (ii) the transfer of functions of AID, and the 
                      personnel associated with such functions, to the 
                      Department; and
                          (iii) the consolidation, reorganization, and 
                      streamlining of the Department upon the transfer 
                      of such functions and personnel in order to carry 
                      out the functions transferred.

    (e) Modification of Plan.--The President may, on the basis of 
consultations with the appropriate congressional committees, modify or 
revise any part of the plan transmitted under subsection (a) until that 
part of the plan becomes effective in accordance with subsection (g).
    (f) Report.--The report accompanying the reorganization plan for the 
Department and the covered agencies submitted pursuant to this section 
shall describe the implementation of the plan and shall include--
            (1) a detailed description of--
                    (A) the actions necessary or planned to complete the 
                reorganization,
                    (B) the anticipated nature and substance of any 
                orders, directives, and other administrative and 
                operational actions

[[Page 112 STAT. 2681-797]]

                which are expected to be required for completing or 
                implementing the reorganization, and
                    (C) any preliminary actions which have been taken in 
                the implementation process;
            (2) the number of personnel and positions of each covered 
        agency (including civil service personnel, Foreign Service 
        personnel, and detailees) that are expected to be transferred to 
        the Department, separated from service with such agency, or 
        eliminated under the plan, and a projected schedule for such 
        transfers, separations, and terminations;
            (3) the number of personnel and positions of the Department 
        (including civil service personnel, Foreign Service personnel, 
        and detailees) that are expected to be transferred within the 
        Department, separated from service with the Department, or 
        eliminated under the plan, and a projected schedule for such 
        transfers, separations, and terminations;
            (4) a projected schedule for completion of the 
        implementation process; and
            (5) recommendations, if any, for legislation necessary to 
        carry out changes made by this subdivision relating to personnel 
        and to incidental transfers.

    (g) Effective Date.--
            (1) In general.--The reorganization plan described in this 
        section, including any modifications or revisions of the plan 
        under subsection (e), shall become effective on the earlier of 
        the date for the respective covered agency specified in 
        paragraph (2) or the date announced by the President under 
        paragraph (3).
            (2) Statutory effective dates.--The effective dates under 
        this paragraph for the reorganization plan described in this 
        section are the following:
                    (A) April 1, 1999, with respect to functions of the 
                Agency for International Development described in 
                section 1511.
                    (B) April 1, 1999, with respect to the abolition of 
                the United States Arms Control and Disarmament Agency 
                and the United States International Development 
                Cooperation Agency.
                    (C) October 1, 1999, with respect to the abolition 
                of the United States Information Agency.
             <> (3) Effective date 
        by presidential determination.--An effective date under this 
        paragraph for a reorganization plan described in this section is 
        such date as the President shall determine to be appropriate and 
        announce by notice published in the Federal Register, which date 
        may be not earlier than 90 calendar days after the President has 
        transmitted the reorganization plan to the appropriate 
        congressional committees pursuant to subsection (a).
            (4) Statutory construction.--Nothing in this subsection may 
        be construed to require the transfer of functions, personnel, 
        records, balance of appropriations, or other assets of a covered 
        agency on a single date.
             <> (5) Supersedes existing law.--
        Paragraph (1) shall apply notwithstanding section 905(b) of 
        title 5, United States Code.

    (h) Publication.--The <> reorganization plan described in this section shall be 
printed in the Federal Register after the date upon which it first 
becomes effective.

[[Page 112 STAT. 2681-798]]

                   CHAPTER 2--REORGANIZATION AUTHORITY

SEC. 1611. <> REORGANIZATION AUTHORITY.

    (a) In General.--The Secretary is authorized, subject to the 
requirements of this subdivision, to allocate or reallocate any function 
transferred to the Department under any title of this subdivision, and 
to establish, consolidate, alter, or discontinue such organizational 
entities within the Department as may be necessary or appropriate to 
carry out any reorganization under this subdivision, but this subsection 
does not authorize the Secretary to modify the terms of any statute that 
establishes or defines the functions of any bureau, office, or officer 
of the Department.
    (b) Requirements and Limitations on Reorganization Plan.--The 
reorganization plan transmitted under section 1601 may not have the 
effect of--
            (1) creating a new executive department;
            (2) continuing a function beyond the period authorized by 
        law for its exercise or beyond the time when it would have 
        terminated if the reorganization had not been made;
            (3) authorizing a Federal agency to exercise a function 
        which is not authorized by law at the time the plan is 
        transmitted to Congress;
            (4) creating a new Federal agency which is not a component 
        or part of an existing executive department or independent 
        agency; or
            (5) increasing the term of an office beyond that provided by 
        law for the office.

SEC. 1612. <> TRANSFER AND ALLOCATION OF 
            APPROPRIATIONS.

    (a) In General.--Except as otherwise provided in this subdivision, 
the assets, liabilities (including contingent liabilities arising from 
suits continued with a substitution or addition of parties under section 
1615(e)), contracts, property, records, and unexpended balance of 
appropriations, authorizations, allocations, and other funds employed, 
held, used, arising from, available to, or to be made available in 
connection with the functions and offices, or portions thereof, 
transferred by any title of this subdivision shall be transferred to the 
Secretary for appropriate allocation.
    (b) Limitation on Use of Transferred Funds.--Except as provided in 
subsection (c), unexpended and unobligated funds transferred pursuant to 
any title of this subdivision shall be used only for the purposes for 
which the funds were originally authorized and appropriated.
    (c) Funds To Facilitate Transition.--
            (1) Congressional notification.--Funds transferred pursuant 
        to subsection (a) may be available for the purposes of 
        reorganization subject to notification of the appropriate 
        congressional committees in accordance with the procedures 
        applicable to a reprogramming of funds under section 34 of the 
        State Department Basic Authorities Act of 1956 (22 U.S.C. 2706).
            (2) Transfer authority.--Funds in any account appropriated 
        to the Department of State may be transferred to another such 
        account for the purposes of reorganization, subject to 
        notification of the appropriate congressional committees in 
        accordance with the procedures applicable to a reprogramming of 
        funds under section 34 of the State Department Basic

[[Page 112 STAT. 2681-799]]

        Authorities Act of 1956 (22 U.S.C. 2706). The authority in this 
        paragraph is in addition to any other transfer authority 
        available to the Secretary of State and shall expire September 
        30, 2000.

SEC. 1613. <> TRANSFER, APPOINTMENT, AND ASSIGNMENT 
            OF PERSONNEL.

    (a) Transfer of Personnel From ACDA and USIA.--Except as otherwise 
provided in title XIII--
            (1) not later than the date of abolition of ACDA, all 
        personnel and positions of ACDA, and
            (2) not later than the date of abolition of USIA, all 
        personnel and positions of USIA,

shall be transferred to the Department of State at the same grade or 
class and the same rate of basic pay or basic salary rate and with the 
same tenure held immediately preceding transfer.
    (b) Transfer of Personnel From AID.--Except as otherwise provided in 
title XIII, not later than the date of transfer of any function of AID 
to the Department of State under this subdivision, all AID personnel 
performing such functions and all positions associated with such 
functions shall be transferred to the Department of State at the same 
grade or class and the same rate of basic pay or basic salary rate and 
with the same tenure held immediately preceding transfer.
    (c) Assignment Authority.--The Secretary, for a period of not more 
than 6 months commencing on the effective date of the transfer to the 
Department of State of personnel under subsections (a) and (b), is 
authorized to assign such personnel to any position or set of duties in 
the Department of State regardless of the position held or duties 
performed by such personnel prior to transfer, except that, by virtue of 
such assignment, such personnel shall not have their grade or class or 
their rate of basic pay or basic salary rate reduced, nor their tenure 
changed. The Secretary shall consult with the relevant exclusive 
representatives (as defined in section 1002 of the Foreign Service Act 
and in section 7103 of title 5, United States Code) with regard to the 
exercise of this authority. This subsection does not authorize the 
Secretary to assign any individual to any position that by law requires 
appointment by the President, by and with the advice and consent of the 
Senate.
      (d) Superseding Other Provisions of Law.--Subsections (a) through 
(c) shall be exercised notwithstanding any other provision of law.

SEC. 1614. INCIDENTAL <> TRANSFERS.
      The Director of the Office of Management and Budget, when 
requested by the Secretary, is authorized to make such incidental 
dispositions of personnel, assets, liabilities, grants, contracts, 
property, records, and unexpended balances of appropriations, 
authorizations, allocations, and other funds held, used, arising from, 
available to, or to be made available in connection with such functions, 
as may be necessary to carry out the provisions of any title of this 
subdivision. The Director of the Office of Management and Budget, in 
consultation with the Secretary, shall provide for the termination of 
the affairs of all entities terminated by this subdivision and for such 
further measures and dispositions as may be necessary to effectuate the 
purposes of any title of this subdivision.

[[Page 112 STAT. 2681-800]]

SEC. 1615. <> SAVINGS PROVISIONS.
      (a) Continuing Legal Force and Effect.--All orders, 
determinations, rules, regulations, permits, agreements, grants, 
contracts, certificates, licenses, registrations, privileges, and other 
administrative actions--
            (1) that have been issued, made, granted, or allowed to 
        become effective by the President, any Federal agency or 
        official thereof, or by a court of competent jurisdiction, in 
        the performance of functions that are transferred under any 
        title of this subdivision; and
            (2) that are in effect as of the effective date of such 
        title, or were final before the effective date of such title and 
        are to become effective on or after the effective date of such 
        title,

shall continue in effect according to their terms until modified, 
terminated, superseded, set aside, or revoked in accordance with law by 
the President, the Secretary, or other authorized official, a court of 
competent jurisdiction, or by operation of law.
      (b) Pending Proceedings.--
            (1) In general.--The provisions of any title of this 
        subdivision shall not affect any proceedings, including notices 
        of proposed rulemaking, or any application for any license, 
        permit, certificate, or financial assistance pending on the 
        effective date of any title of this subdivision before any 
        Federal agency, commission, or component thereof, functions of 
        which are transferred by any title of this subdivision. Such 
        proceedings and applications, to the extent that they relate to 
        functions so transferred, shall be continued.
            (2) Orders, appeals, payments.--Orders shall be issued in 
        such proceedings, appeals shall be taken therefrom, and payments 
        shall be made pursuant to such orders, as if this subdivision 
        had not been enacted. Orders issued in any such proceedings 
        shall continue in effect until modified, terminated, superseded, 
        or revoked by the Secretary, by a court of competent 
        jurisdiction, or by operation of law.
            (3) Statutory construction.--Nothing in this subdivision 
        shall be deemed to prohibit the discontinuance or modification 
        of any such proceeding under the same terms and conditions and 
        to the same extent that such proceeding could have been 
        discontinued or modified if this subdivision had not been 
        enacted.
            (4) Regulations.--The Secretary is authorized to promulgate 
        regulations providing for the orderly transfer of proceedings 
        continued under this subsection to the Department.

    (c) No Effect on Judicial or Administrative Proceedings.--Except as 
provided in subsection (e) and section 1327(d)--
            (1) the provisions of this subdivision shall not affect 
        suits commenced prior to the effective dates of the respective 
        titles of this subdivision; and
            (2) in all such suits, proceedings shall be had, appeals 
        taken, and judgments rendered in the same manner and effect as 
        if this subdivision had not been enacted.

    (d) Nonabatement of Proceedings.--No suit, action, or other 
proceeding commenced by or against any officer in the official capacity 
of such individual as an officer of any Federal agency, or any 
commission or component thereof, functions of which are transferred by 
any title of this subdivision, shall abate by reason of the enactment of 
this subdivision. No cause of action by or

[[Page 112 STAT. 2681-801]]

against any Federal agency, or any commission or component thereof, 
functions of which are transferred by any title of this subdivision, or 
by or against any officer thereof in the official capacity of such 
officer shall abate by reason of the enactment of this subdivision.
    (e) Continuation of Proceeding With Substitution of Parties.--If, 
before the effective date of any title of this subdivision, any Federal 
agency, or officer thereof in the official capacity of such officer, is 
a party to a suit, and under this subdivision any function of such 
department, agency, or officer is transferred to the Secretary or any 
other official of the Department, then effective on such date such suit 
shall be continued with the Secretary or other appropriate official of 
the Department substituted or added as a party.
    (f) Reviewability of Orders and Actions Under Transferred 
Functions.--Orders and actions of the Secretary in the exercise of 
functions transferred under any title of this subdivision shall be 
subject to judicial review to the same extent and in the same manner as 
if such orders and actions had been by the Federal agency or office, or 
part thereof, exercising such functions immediately preceding their 
transfer. Any statutory requirements relating to notice, hearings, 
action upon the record, or administrative review that apply to any 
function transferred by any title of this subdivision shall apply to the 
exercise of such function by the Secretary.

SEC. 1616. <> AUTHORITY OF SECRETARY OF STATE TO 
            FACILITATE TRANSITION.

    Notwithstanding any provision of this subdivision, the Secretary of 
State, with the concurrence of the head of the appropriate Federal 
agency exercising functions transferred under this subdivision, may 
transfer the whole or part of such functions prior to the effective 
dates established in this subdivision, including the transfer of 
personnel and funds associated with such functions.

SEC. 1617. <> FINAL REPORT.

    Not later than January 1, 2001, the President, in consultation with 
the Secretary of the Treasury and the Director of the Office of 
Management and Budget, shall submit to the appropriate congressional 
committees a report which provides a final accounting of the finances 
and operations of the agencies abolished under this subdivision.

SUBDIVISION B--FOREIGN RELATIONS <> AUTHORIZATION

                      TITLE XX--GENERAL PROVISIONS

SEC. 2001. SHORT TITLE.

    This subdivision may be cited as the ``Foreign Relations 
Authorization Act, Fiscal Years 1998 and 1999''.

SEC. 2002. DEFINITION OF APPROPRIATE CONGRESSIONAL COMMITTEES.

    In this subdivision, the term ``appropriate congressional 
committees'' means the Committee on International Relations of the House 
of Representatives and the Committee on Foreign Relations of the Senate.

[[Page 112 STAT. 2681-802]]

   TITLE XXI--AUTHORIZATION OF APPROPRIATIONS FOR DEPARTMENT OF STATE

SEC. 2101. ADMINISTRATION OF FOREIGN AFFAIRS.

    The following amounts are authorized to be appropriated for the 
Department of State under ``Administration of Foreign Affairs'' to carry 
out the authorities, functions, duties, and responsibilities in the 
conduct of the foreign affairs of the United States and for other 
purposes authorized by law, including the diplomatic security program:
            (1) Diplomatic and consular programs.--For ``Diplomatic and 
        Consular Programs'', of the Department of State $1,730,000,000 
        for the fiscal year 1998 and $1,644,300,000 for the fiscal year 
        1999.
            (2) Salaries and expenses.--
                    (A) Authorization of appropriations.--For ``Salaries 
                and Expenses'', of the Department of State $363,513,000 
                for the fiscal year 1998 and $355,000,000 for the fiscal 
                year 1999.
                    (B) Limitations.--Of the amounts authorized to be 
                appropriated by subparagraph (A), $2,000,000 for fiscal 
                year 1998 and $2,000,000 for the fiscal year 1999 are 
                authorized to be appropriated only for the recruitment 
                of minorities for careers in the Foreign Service and 
                international affairs.
            (3) Capital investment fund.--For ``Capital Investment 
        Fund'', of the Department of State $86,000,000 for the fiscal 
        year 1998 and $80,000,000 for the fiscal year 1999.
            (4) Security and maintenance of united states missions.--For 
        ``Security and Maintenance of United States Missions'', 
        $404,000,000 for the fiscal year 1998 and $403,561,000 for the 
        fiscal year 1999.
            (5) Representation allowances.--For ``Representation 
        Allowances'', $4,200,000 for the fiscal year 1998 and $4,350,000 
        for the fiscal year 1999.
            (6) Emergencies in the diplomatic and consular service.--For 
        ``Emergencies in the Diplomatic and Consular Service'', 
        $5,500,000 for the fiscal year 1998 and $5,500,000 for the 
        fiscal year 1999.
            (7) Office of the inspector general.--For ``Office of the 
        Inspector General'', $27,495,000 for the fiscal year 1998 and 
        $27,495,000 for the fiscal year 1999.
            (8) Payment to the american institute in taiwan.--For 
        ``Payment to the American Institute in Taiwan'', $14,000,000 for 
        the fiscal year 1998 and $14,750,000 for the fiscal year 1999.
            (9) Protection of foreign missions and officials.--(A) For 
        ``Protection of Foreign Missions and Officials'', $7,900,000 for 
        the fiscal year 1998 and $8,100,000 for the fiscal year 1999.
            (B) Each amount appropriated pursuant to this paragraph is 
        authorized to remain available through September 30 of the 
        fiscal year following the fiscal year for which the amount 
        appropriated was made.
            (10) Repatriation loans.--For ``Repatriation Loans'', 
        $1,200,000 for the fiscal year 1998 and $1,200,000 for the 
        fiscal year 1999, for administrative expenses.

[[Page 112 STAT. 2681-803]]

SEC. 2102. INTERNATIONAL COMMISSIONS.

    The following amounts are authorized to be appropriated under 
``International Commissions'' for the Department of State to carry out 
the authorities, functions, duties, and responsibilities in the conduct 
of the foreign affairs of the United States and for other purposes 
authorized by law:
            (1) International boundary and water commission, united 
        states and mexico.--For ``International Boundary and Water 
        Commission, United States and Mexico''--
                    (A) for ``Salaries and Expenses'' $17,490,000 for 
                the fiscal year 1998 and $19,551,000 for the fiscal year 
                1999; and
                    (B) for ``Construction'' $6,463,000 for the fiscal 
                year 1998 and $6,463,000 for the fiscal year 1999.
            (2) International boundary commission, united states and 
        canada.--For ``International Boundary Commission, United States 
        and Canada'', $761,000 for the fiscal year 1998 and $761,000 for 
        the fiscal year 1999.
            (3) International joint commission.--For ``International 
        Joint Commission'', $3,189,000 for the fiscal year 1998 and 
        $3,432,000 for the fiscal year 1999.
            (4) International fisheries commissions.--For 
        ``International Fisheries Commissions'', $14,549,000 for the 
        fiscal year 1998 and $14,549,000 for the fiscal year 1999.

SEC. 2103. GRANTS TO THE ASIA FOUNDATION.

    Section 404 of The Asia Foundation Act (title IV of Public Law 98-
164) <> is amended to read as follows:

    ``Sec. 404. There are authorized to be appropriated to the Secretary 
of State $10,000,000 for each of the fiscal years 1998 and 1999 for 
grants to The Asia Foundation pursuant to this title.''.

SEC. 2104. VOLUNTARY CONTRIBUTIONS TO INTERNATIONAL ORGANIZATIONS.

    (a) Authorization of Appropriations.--There are authorized to be 
appropriated for ``Voluntary Contributions to International 
Organizations'', $194,500,000 for the fiscal year 1998 and $214,000,000 
for the fiscal year 1999.
    (b) Limitations.--
            (1) World food program.--Of the amounts authorized to be 
        appropriated under subsection (a), $4,000,000 for the fiscal 
        year 1998 and $2,000,000 for the fiscal year 1999 are authorized 
        to be appropriated only for a United States contribution to the 
        World Food Program.
            (2) United nations voluntary fund for victims of torture.--
        Of the amount authorized to be appropriated under subsection 
        (a), $3,000,000 for the fiscal year 1998 and $3,000,000 for the 
        fiscal year 1999 are authorized to be appropriated only for a 
        United States contribution to the United Nations Voluntary Fund 
        for Victims of Torture.
            (3) International program on the elimination of child 
        labor.--Of the amounts authorized to be appropriated under 
        subsection (a), $5,000,000 for the fiscal year 1998 and 
        $5,000,000 for the fiscal year 1999 are authorized to be 
        appropriated only for a United States contribution to the

[[Page 112 STAT. 2681-804]]

        International Labor Organization for the activities of the 
        International Program on the Elimination of Child Labor.

    (c) Availability of Funds.--Amounts authorized to be appropriated 
under subsection (a) are authorized to remain available until expended.

SEC. 2105. VOLUNTARY CONTRIBUTIONS TO PEACEKEEPING OPERATIONS.

    There are authorized to be appropriated for ``Peacekeeping 
Operations'', $77,500,000 for the fiscal year 1998 and $83,000,000 for 
the fiscal year 1999 for the Department of State to carry out section 
551 of Public Law 87-195.

SEC. 2106. <> LIMITATION ON UNITED STATES VOLUNTARY 
            CONTRIBUTIONS TO UNITED NATIONS DEVELOPMENT PROGRAM.

    (a) Limitation.--Of the amounts made available for fiscal years 1998 
and 1999 for United States voluntary contributions to the United Nations 
Development Program an amount equal to the amount the United Nations 
Development Program will spend in Burma during each fiscal year shall be 
withheld unless during such fiscal year the President submits to the 
appropriate congressional committees the certification described in 
subsection (b).
    (b) Certification.--The certification referred to in subsection (a) 
is a certification by the President that all programs and activities of 
the United Nations Development Program (including United Nations 
Development Program--Administered Funds) in Burma--
            (1) are focused on eliminating human suffering and 
        addressing the needs of the poor;
            (2) are undertaken only through international or private 
        voluntary organizations that have been deemed independent of the 
        State Law and Order Restoration Council (SLORC), after 
        consultation with the leadership of the National League for 
        Democracy and the leadership of the National Coalition 
        Government of the Union of Burma;
            (3) provide no financial, political, or military benefit to 
        the SLORC; and
            (4) are carried out only after consultation with the 
        leadership of the National League for Democracy and the 
        leadership of the National Coalition Government of the Union of 
        Burma.

       TITLE XXII--DEPARTMENT OF STATE AUTHORITIES AND ACTIVITIES

                  CHAPTER 1--AUTHORITIES AND ACTIVITIES

SEC. 2201. REIMBURSEMENT OF DEPARTMENT OF STATE FOR ASSISTANCE TO 
            OVERSEAS EDUCATIONAL FACILITIES.

    Section 29 of the State Department Basic Authorities Act of 1956 (22 
U.S.C. 2701) is amended by adding at the end the following: 
``Notwithstanding any other provision of law, where the child of a 
United States citizen employee of an agency of the United States 
Government who is stationed outside the United States attends an 
educational facility assisted by the Secretary of State under this 
section, the head of that agency is authorized to reimburse, or credit 
with advance payment, the Department of State for funds used in 
providing assistance to such educational facilities, by grant or 
otherwise, under this section.''.

[[Page 112 STAT. 2681-805]]

SEC. 2202. REVISION OF DEPARTMENT OF STATE REWARDS PROGRAM.

    Section 36 of the State Department Basic Authorities Act of 1956 (22 
U.S.C. 2708) is amended to read as follows:

``SEC. 36. <> DEPARTMENT OF STATE REWARDS PROGRAM.

    ``(a) Establishment.--
            ``(1) In general.--There is established a program for the 
        payment of rewards to carry out the purposes of this section.
            ``(2) Purpose.--The rewards program shall be designed to 
        assist in the prevention of acts of international terrorism, 
        international narcotics trafficking, and other related criminal 
        acts.
            ``(3) Implementation.--The rewards program shall be 
        administered by the Secretary of State, in consultation, as 
        appropriate, with the Attorney General.

    ``(b) Rewards Authorized.--In the sole discretion of the Secretary 
(except as provided in subsection (c)(2)) and in consultation, as 
appropriate, with the Attorney General, the Secretary may pay a reward 
to any individual who furnishes information leading to--
            ``(1) the arrest or conviction in any country of any 
        individual for the commission of an act of international 
        terrorism against a United States person or United States 
        property;
            ``(2) the arrest or conviction in any country of any 
        individual conspiring or attempting to commit an act of 
        international terrorism against a United States person or United 
        States property;
            ``(3) the arrest or conviction in any country of any 
        individual for committing, primarily outside the territorial 
        jurisdiction of the United States, any narcotics-related offense 
        if that offense involves or is a significant part of conduct 
        that involves--
                    ``(A) a violation of United States narcotics laws 
                such that the individual would be a major violator of 
                such laws;
                    ``(B) the killing or kidnapping of--
                          ``(i) any officer, employee, or contract 
                      employee of the United States Government while 
                      such individual is engaged in official duties, or 
                      on account of that individual's official duties, 
                      in connection with the enforcement of United 
                      States narcotics laws or the implementing of 
                      United States narcotics control objectives; or
                          ``(ii) a member of the immediate family of any 
                      such individual on account of that individual's 
                      official duties, in connection with the 
                      enforcement of United States narcotics laws or the 
                      implementing of United States narcotics control 
                      objectives; or
                    ``(C) an attempt or conspiracy to commit any act 
                described in subparagraph (A) or (B);
            ``(4) the arrest or conviction in any country of any 
        individual aiding or abetting in the commission of an act 
        described in paragraph (1), (2), or (3); or
            ``(5) the prevention, frustration, or favorable resolution 
        of an act described in paragraph (1), (2), or (3).

    ``(c) Coordination.--
            ``(1) Procedures.--To ensure that the payment of rewards 
        pursuant to this section does not duplicate or interfere with 
        the payment of informants or the obtaining of evidence or 
        information, as authorized to the Department of Justice, the

[[Page 112 STAT. 2681-806]]

        offering, administration, and payment of rewards under this 
        section, including procedures for--
                    ``(A) identifying individuals, organizations, and 
                offenses with respect to which rewards will be offered;
                    ``(B) the publication of rewards;
                    ``(C) the offering of joint rewards with foreign 
                governments;
                    ``(D) the receipt and analysis of data; and
                    ``(E) the payment and approval of payment,

        shall be governed by procedures developed by the Secretary of 
        State, in consultation with the Attorney General.
            ``(2) Prior approval of attorney general required.--Before 
        making a reward under this section in a matter over which there 
        is Federal criminal jurisdiction, the Secretary of State shall 
        obtain the concurrence of the Attorney General.

    ``(d) Funding.--
            ``(1) Authorization of appropriations.--Notwithstanding 
        section 102 of the Foreign Relations Authorization Act, Fiscal 
        Years 1986 and 1987 (Public Law 99-93; 99 Stat. 408), but 
        subject to paragraph (2), there are authorized to be 
        appropriated to the Department of State from time to time such 
        amounts as may be necessary to carry out this section.
            ``(2) Limitation.--No amount of funds may be appropriated 
        under paragraph (1) which, when added to the unobligated balance 
        of amounts previously appropriated to carry out this section, 
        would cause such amounts to exceed $15,000,000.
            ``(3) Allocation of funds.--To the maximum extent 
        practicable, funds made available to carry out this section 
        should be distributed equally for the purpose of preventing acts 
        of international terrorism and for the purpose of preventing 
        international narcotics trafficking.
            ``(4) Period of availability.--Amounts appropriated under 
        paragraph (1) shall remain available until expended.

    ``(e) Limitations and Certification.--
            ``(1) Maximum amount.--No reward paid under this section may 
        exceed $2,000,000.
            ``(2) Approval.--A reward under this section of more than 
        $100,000 may not be made without the approval of the Secretary.
            ``(3) Certification for payment.--Any reward granted under 
        this section shall be approved and certified for payment by the 
        Secretary.
            ``(4) Nondelegation of authority.--The authority to approve 
        rewards of more than $100,000 set forth in paragraph (2) may not 
        be delegated.
            ``(5) Protection measures.--If the Secretary determines that 
        the identity of the recipient of a reward or of the members of 
        the recipient's immediate family must be protected, the 
        Secretary may take such measures in connection with the payment 
        of the reward as he considers necessary to effect such 
        protection.

    ``(f) Ineligibility.--An officer or employee of any entity of 
Federal, State, or local government or of a foreign government who, 
while in the performance of his or her official duties, furnishes 
information described in subsection (b) shall not be eligible for a 
reward under this section.
    ``(g) Reports.--

[[Page 112 STAT. 2681-807]]

            ``(1) Reports on payment of rewards.--Not later than 30 days 
        after the payment of any reward under this section, the 
        Secretary shall submit a report to the appropriate congressional 
        committees with respect to such reward. The report, which may be 
        submitted in classified form if necessary, shall specify the 
        amount of the reward paid, to whom the reward was paid, and the 
        acts with respect to which the reward was paid. The report shall 
        also discuss the significance of the information for which the 
        reward was paid in dealing with those acts.
            ``(2) Annual reports.--Not later than 60 days after the end 
        of each fiscal year, the Secretary shall submit a report to the 
        appropriate congressional committees with respect to the 
        operation of the rewards program. The report shall provide 
        information on the total amounts expended during the fiscal year 
        ending in that year to carry out this section, including amounts 
        expended to publicize the availability of rewards.

    ``(h) Publication Regarding Rewards Offered by Foreign 
Governments.--Notwithstanding any other provision of this section, in 
the sole discretion of the Secretary, the resources of the rewards 
program shall be available for the publication of rewards offered by 
foreign governments regarding acts of international terrorism which do 
not involve United States persons or property or a violation of the 
narcotics laws of the United States.
    ``(i) Determinations of the Secretary.--A determination made by the 
Secretary under this section shall be final and conclusive and shall not 
be subject to judicial review.
    ``(j) Definitions.--As used in this section:
            ``(1) Act of international terrorism.--The term `act of 
        international terrorism' includes--
                    ``(A) any act substantially contributing to the 
                acquisition of unsafeguarded special nuclear material 
                (as defined in paragraph (8) of section 830 of the 
                Nuclear Proliferation Prevention Act of 1994 (22 U.S.C. 
                3201 note)) or any nuclear explosive device (as defined 
                in paragraph (4) of that section) by an individual, 
                group, or non-nuclear-weapon state (as defined in 
                paragraph (5) of that section); and
                    ``(B) any act, as determined by the Secretary, which 
                materially supports the conduct of international 
                terrorism, including the counterfeiting of United States 
                currency or the illegal use of other monetary 
                instruments by an individual, group, or country 
                supporting international terrorism as determined for 
                purposes of section 6(j)(1)(A) of the Export 
                Administration Act of 1979 (50 U.S.C. App. 
                2405(j)(1)(A)).
            ``(2) Appropriate congressional committees.--The term 
        `appropriate congressional committees' means the Committee on 
        International Relations of the House of Representatives and the 
        Committee on Foreign Relations of the Senate.
            ``(3) Member of the immediate family.--The term `member of 
        the immediate family', with respect to an individual, includes--
                    ``(A) a spouse, parent, brother, sister, or child of 
                the individual;
                    ``(B) a person with respect to whom the individual 
                stands in loco parentis; and

[[Page 112 STAT. 2681-808]]

                    ``(C) any person not covered by subparagraph (A) or 
                (B) who is living in the individual's household and is 
                related to the individual by blood or marriage.
            ``(4) Rewards program.--The term `rewards program' means the 
        program established in subsection (a)(1).
            ``(5) United states narcotics laws.--The term `United States 
        narcotics laws' means the laws of the United States for the 
        prevention and control of illicit trafficking in controlled 
        substances (as such term is defined in section 102(6) of the 
        Controlled Substances Act (21 U.S.C. 802(6))).
            ``(6) United states person.--The term `United States person' 
        means--
                    ``(A) a citizen or national of the United States; 
                and
                    ``(B) an alien lawfully present in the United 
                States.''.

SEC. 2203. RETENTION OF ADDITIONAL DEFENSE TRADE CONTROLS REGISTRATION 
            FEES.

    Section 45(a) of the State Department Basic Authorities Act of 1956 
(22 U.S.C. 2717(a)) is amended--
            (1) at the end of paragraph (1), by striking ``and'';
            (2) in paragraph (2)--
                    (A) by striking ``functions'' and inserting 
                ``functions, including compliance and enforcement 
                activities,''; and
                    (B) by striking the period at the end and inserting 
                ``; and''; and
            (3) by adding at the end the following new paragraph:
            ``(3) the enhancement of defense trade export compliance and 
        enforcement activities, including compliance audits of United 
        States and foreign parties, the conduct of administrative 
        proceedings, monitoring of end-uses in cases of direct 
        commercial arms sales or other transfers, and cooperation in 
        proceedings for enforcement of criminal laws related to defense 
        trade export controls.''.

SEC. 2204. FEES FOR COMMERCIAL SERVICES.

    Section 52(b) of the State Department Basic Authorities Act of 1956 
(22 U.S.C. 2724(b)) is amended by adding at the end the following: 
``Funds deposited under this subsection shall remain available for 
obligation through September 30 of the fiscal year following the fiscal 
year in which the funds were deposited.''.

SEC. 2205. PILOT PROGRAM FOR FOREIGN AFFAIRS REIMBURSEMENT.

    (a) Foreign Affairs Reimbursement.--
            (1) In general.--Section 701 of the Foreign Service Act of 
        1980 (22 U.S.C. 4021) is amended--
                    (A) by redesignating subsection (d)(4) as subsection 
                (g); and
                    (B) by inserting after subsection (d) the following 
                new subsections:

    ``(e)(1) The Secretary may provide appropriate training or related 
services, except foreign language training, through the institution to 
any United States person (or any employee or family member thereof) that 
is engaged in business abroad.
    ``(2) The Secretary may provide job-related training or related 
services, including foreign language training, through the institution 
to a United States person under contract to provide services to the 
United States Government or to any employee thereof that is performing 
such services.

[[Page 112 STAT. 2681-809]]

    ``(3) Training under this subsection may be provided only to the 
extent that space is available and only on a reimbursable or advance-of-
funds basis. Reimbursements and advances shall be credited to the 
currently available applicable appropriation account.

    ``(4) Training and related services under this subsection is 
authorized only to the extent that it will not interfere with the 
institution's primary mission of training employees of the Department 
and of other agencies in the field of foreign relations.
    ``(5) In this subsection, the term `United States person' means--
            ``(A) any individual who is a citizen or national of the 
        United States; or
            ``(B) any corporation, company, partnership, association, or 
        other legal entity that is 50 percent or more beneficially owned 
        by citizens or nationals of the United States.

    ``(f)(1) The Secretary is authorized to provide, on a reimbursable 
basis, training programs to Members of Congress or the Judiciary.
    ``(2) Employees of the legislative branch and employees of the 
judicial branch may participate, on a reimbursable basis, in training 
programs offered by the institution.
    ``(3) Reimbursements collected under this subsection shall be 
credited to the currently available applicable appropriation account.
    ``(4) Training under this subsection is authorized only to the 
extent that it will not interfere with the institution's primary mission 
of training employees of the Department and of other agencies in the 
field of foreign relations.''.
             <> (2) Effective date.--The 
        amendments made by paragraph (1) shall take effect on October 1, 
        1998.
            (3) Termination of pilot program.--Effective October 1, 
        2002, section 701 of the Foreign Service Act of 1980 (22 U.S.C. 
        4021), as amended by this subsection, is further amended--
                    (A) by striking subsections (e) and (f); and
                    (B) by redesignating subsection (g) as paragraph (4) 
                of subsection (d).

    (b) Fees for Use of National Foreign Affairs Training Center.--Title 
I of the State Department Basic Authorities Act of 1956 (22 U.S.C. 2651a 
et seq.) is amended by adding at the end the following new section:

``SEC. 53. FEES FOR USE OF THE NATIONAL FOREIGN <> AFFAIRS TRAINING CENTER.

    ``The Secretary is authorized to charge a fee for use of the 
National Foreign Affairs Training Center of the Department of State. 
Amounts collected under this section (including reimbursements and 
surcharges) shall be deposited as an offsetting collection to any 
Department of State appropriation to recover the costs of such use and 
shall remain available for obligation until expended.''.

     <> (c) Reporting on Pilot Program.--Two 
years after the date of enactment of this Act, the Secretary of State 
shall submit a report to the appropriate congressional committees 
containing--
            (1) the number of persons who have taken advantage of the 
        pilot program established under subsections (e) and (f) of 
        section 701 of the Foreign Service Act of 1980 and section 53 of 
        the State Department Basic Authorities Act of 1956, as added by 
        this section;
            (2) the business or government affiliation of such persons;
            (3) the amount of fees collected; and

[[Page 112 STAT. 2681-810]]

            (4) the impact of the program on the primary mission of the 
        National Foreign Affairs Training Center.

SEC. 2206. FEE FOR USE OF DIPLOMATIC RECEPTION ROOMS.

    Title I of the State Department Basic Authorities Act of 1956 (22 
U.S.C. 2651a et seq.), as amended by this division, is further amended 
by adding at the end the following new section:

``SEC. 54. <> FEE FOR USE OF DIPLOMATIC RECEPTION 
            ROOMS.

    ``The Secretary is authorized to charge a fee for use of the 
diplomatic reception rooms of the Department of State. Amounts collected 
under this section (including reimbursements and surcharges) shall be 
deposited as an offsetting collection to any Department of State 
appropriation to recover the costs of such use and shall remain 
available for obligation until expended.''.

SEC. 2207. ACCOUNTING OF COLLECTIONS IN BUDGET PRESENTATION DOCUMENTS.

    Title I of the State Department Basic Authorities Act of 1956 (22 
U.S.C. 2651a et seq.), as amended by this division, is further amended 
by adding at the end the following new section:

``SEC. 55. <> ACCOUNTING OF COLLECTIONS IN BUDGET 
            PRESENTATION DOCUMENTS.

    ``The Secretary shall include in the annual Congressional 
Presentation Document and the Budget in Brief a detailed accounting of 
the total collections received by the Department of State from all 
sources, including fee collections. Reporting on total collections shall 
also cover collections from the preceding fiscal year and the projected 
expenditures from all collections accounts.''.

SEC. 2208. OFFICE OF THE INSPECTOR GENERAL.

    (a) Procedures.--Section 209(c) of the Foreign Service Act of 1980 
(22 U.S.C. 3929(c)) is amended by adding at the end the following:
            ``(4) The Inspector General shall develop and provide to 
        employees--
                    ``(A) information detailing their rights to counsel; 
                and
                    ``(B) guidelines describing in general terms the 
                policies and procedures of the Office of Inspector 
                General with respect to individuals under investigation 
                other than matters exempt from disclosure under other 
                provisions of law.''.

    (b) Notice.--Section 209(e) of the Foreign Service Act of 1980 (22 
U.S.C. 3929(e)) is amended by adding at the end the following new 
paragraph:
    ``(3) The Inspector General shall ensure that only officials from 
the Office of the Inspector General may participate in formal interviews 
or other formal meetings with the individual who is the subject of an 
investigation, other than an intelligence-related or sensitive 
undercover investigation, or except in those situations when the 
Inspector General has a reasonable basis to believe that such notice 
would cause tampering with witnesses, destroying evidence, or 
endangering the lives of individuals, unless that individual receives 
prior adequate notice regarding participation by officials of any other 
agency, including the Department of Justice, in such interviews or 
meetings.''.
    (c) Report.--

[[Page 112 STAT. 2681-811]]

            (1) In general.--Not later than 90 days after the date of 
        enactment of this Act, the Inspector General of the Department 
        of State and the Foreign Service shall submit a report to the 
        appropriate congressional committees which includes the 
        following:
                    (A) Detailed descriptions of the internal guidance 
                developed or used by the Office of the Inspector General 
                with respect to public disclosure of any information 
                related to an ongoing investigation of any officer or 
                employee of the Department of State, the United States 
                Information Agency, or the United States Arms Control 
                and Disarmament Agency.
                    (B) Detailed descriptions of those instances for the 
                year ending December 31, 1997, in which any disclosure 
                of information to the public by an employee of the 
                Office of Inspector General about an ongoing 
                investigation occurred, including details on the 
                recipient of the information, the date of the 
                disclosure, and the internal clearance process for the 
                disclosure.
            (2) Statutory construction.--Disclosure of information to 
        the public under this section shall not be construed to include 
        information shared with Congress by an employee of the Office of 
        the Inspector General.

SEC. 2209. CAPITAL INVESTMENT FUND.

    Section 135 of the Foreign Relations Authorization Act, Fiscal Years 
1994 and 1995 (22 U.S.C. 2684a) is amended--
            (1) in subsection (a), by inserting ``and enhancement'' 
        after ``procurement'';
            (2) in subsection (c), by striking ``are authorized to'' and 
        inserting ``shall'';
            (3) in subsection (d), by striking ``for expenditure to 
        procure capital equipment and information technology'' and 
        inserting ``for purposes of subsection (a)''; and
            (4) by amending subsection (e) to read as follows:

    ``(e) Reprogramming Procedures.--Funds credited to the Capital 
Investment Fund shall not be available for obligation or expenditure 
except in compliance with the procedures applicable to reprogramming 
notifications under section 34 of the State Department Basic Authorities 
Act of 1956 (22 U.S.C. 2706).''.

SEC. 2210. CONTRACTING FOR LOCAL GUARDS SERVICES OVERSEAS.

    Section 136(c) of the Foreign Relations Authorization Act, Fiscal 
Years 1990 and 1991 (22 U.S.C. 4864(c)) is amended--
            (1) by amending paragraph (3) to read as follows:
            ``(3) in evaluating proposals for such contracts, award 
        contracts to the technically acceptable firm offering the lowest 
        evaluated price, except that proposals of United States persons 
        and qualified United States joint venture persons (as defined in 
        subsection (d)) shall be evaluated by reducing the bid price by 
        10 percent;'';
            (2) by inserting ``and'' at the end of paragraph (5);
            (3) by striking ``; and'' at the end of paragraph (6) and 
        inserting a period; and
            (4) by striking paragraph (7).

[[Page 112 STAT. 2681-812]]

SEC. 2211. AUTHORITY OF THE FOREIGN CLAIMS SETTLEMENT COMMISSION.

    Section 4(a) of the International Claims Settlement Act of 1949 (22 
U.S.C. 1623(a)) is amended--
            (1) by redesignating paragraphs (1) and (2) as subparagraphs 
        (A) and (B), respectively;
            (2) in the first sentence, by striking ``(a) The'' and all 
        that follows through the period and inserting the following:

    ``(a)(1) The Commission shall have jurisdiction to receive, examine, 
adjudicate, and render a final decision with respect to any claim of the 
Government of the United States or of any national of the United 
States--
            ``(A) included within the terms of the Yugoslav Claims 
        Agreement of 1948;
            ``(B) included within the terms of any claims agreement 
        concluded on or after March 10, 1954, between the Government of 
        the United States and a foreign government (exclusive of 
        governments against which the United States declared the 
        existence of a state of war during World War II) similarly 
        providing for the settlement and discharge of claims of the 
        Government of the United States and of nationals of the United 
        States against a foreign government, arising out of the 
        nationalization or other taking of property, by the agreement of 
        the Government of the United States to accept from that 
        government a sum in en bloc settlement thereof; or
            ``(C) included in a category of claims against a foreign 
        government which is referred to the Commission by the Secretary 
        of State.''; and
            (3) by redesignating the second sentence as paragraph (2).

SEC. 2212. EXPENSES RELATING TO CERTAIN INTERNATIONAL CLAIMS AND 
            PROCEEDINGS.

    (a) Recovery of Certain Expenses.--The Department of State 
Appropriation Act of 1937 (22 U.S.C. 2661) is amended in the fifth 
undesignated paragraph under the heading entitled ``international 
fisheries commission'' by inserting ``(including such expenses as 
salaries and other personnel expenses)'' after ``extraordinary 
expenses''.
    (b) Procurement of Services.--Section 38(c) of the State Department 
Basic Authorities Act of 1956 (22 U.S.C. 2710(c)) is amended in the 
first sentence by inserting ``personal and'' before ``other support 
services''.

SEC. 2213. GRANTS TO REMEDY INTERNATIONAL ABDUCTIONS OF CHILDREN.

    Section 7 of the International Child Abduction Remedies Act (42 
U.S.C. 11606; Public Law 100-300) is amended by adding at the end the 
following new subsection:
    ``(e) Grant Authority.--The United States Central Authority is 
authorized to make grants to, or enter into contracts or agreements 
with, any individual, corporation, other Federal, State, or local 
agency, or private entity or organization in the United States for 
purposes of accomplishing its responsibilities under the Convention and 
this Act.''.

SEC. 2214. COUNTERDRUG AND ANTICRIME ACTIVITIES OF <> THE DEPARTMENT OF STATE.

    (a) Counterdrug and Law Enforcement Strategy.--

[[Page 112 STAT. 2681-813]]

            (1) Requirement.--Not later than 180 days after the date of 
        enactment of this Act, the Secretary of State shall establish, 
        implement, and submit to Congress a comprehensive, long-term 
        strategy to carry out the counterdrug responsibilities of the 
        Department of State in a manner consistent with the National 
        Drug Control Strategy. The strategy shall involve all elements 
        of the Department in the United States and abroad.
            (2) Objectives.--In establishing the strategy, the Secretary 
        shall--
                    (A) coordinate with the Office of National Drug 
                Control Policy in the development of clear, specific, 
                and measurable counterdrug objectives for the Department 
                that support the goals and objectives of the National 
                Drug Control Strategy;
                    (B) develop specific and, to the maximum extent 
                practicable, quantifiable measures of performance 
                relating to the objectives, including annual and long-
                term measures of performance, for purposes of assessing 
                the success of the Department in meeting the objectives;
                    (C) assign responsibilities for meeting the 
                objectives to appropriate elements of the Department;
                    (D) develop an operational structure within the 
                Department that minimizes impediments to meeting the 
                objectives;
                    (E) ensure that every United States ambassador or 
                chief of mission is fully briefed on the strategy, and 
                works to achieve the objectives; and
                    (F) ensure that--
                          (i) all budgetary requests and transfers of 
                      equipment (including the financing of foreign 
                      military sales and the transfer of excess defense 
                      articles) relating to international counterdrug 
                      efforts conforms with the objectives; and
                          (ii) the recommendations of the Department 
                      regarding certification determinations made by the 
                      President on March 1 as to the counterdrug 
                      cooperation, or adequate steps on its own, of each 
                      major illicit drug producing and drug trafficking 
                      country to achieve full compliance with the goals 
                      and objectives established by the United Nations 
                      Convention Against Illicit Traffic in Narcotic 
                      Drugs and Psychotropic Substances also conform to 
                      meet such objectives.
            (3) Reports.--Not later than February 15 of each year 
        subsequent to the submission of the strategy described in 
        paragraph (1), the Secretary shall submit to Congress an update 
        of the strategy. The update shall include--
                    (A) an outline of the proposed activities with 
                respect to the strategy during the succeeding year, 
                including the manner in which such activities will meet 
                the objectives set forth in paragraph (2); and
                    (B) detailed information on how certification 
                determinations described in paragraph (2)(F) made the 
                previous year affected achievement of the objectives set 
                forth in paragraph (2) for the previous calendar year.
            (4) Limitation on delegation.--The Secretary shall designate 
        an official in the Department who reports directly to

[[Page 112 STAT. 2681-814]]

        the Secretary to oversee the implementation of the strategy 
        throughout the Department.

    (b) Information on International Criminals.--
            (1) Information system.--The Secretary shall, in 
        consultation with the heads of appropriate United States law 
        enforcement agencies, including the Attorney General and the 
        Secretary of the Treasury, take appropriate actions to establish 
        an information system or improve existing information systems 
        containing comprehensive information on serious crimes committed 
        by foreign nationals. The information system shall be available 
        to United States embassies and missions abroad for use in 
        consideration of applications for visas for entry into the 
        United States.
            (2) Report.--Not later than 180 days after the date of 
        enactment of this Act, the Secretary shall submit to the 
        appropriate congressional committees a report on the actions 
        taken under paragraph (1).

    (c) Overseas Coordination of Counterdrug and Anticrime Programs, 
Policy, and Assistance.--
            (1) Strengthening coordination.--The responsibilities of 
        every diplomatic mission of the United States shall include the 
        strengthening of cooperation between and among the United States 
        and foreign governmental entities and multilateral entities with 
        respect to activities relating to international narcotics and 
        crime.
            (2) Designation of officers.--
                    (A) In general.--Consistent with existing memoranda 
                of understanding between the Department of State and 
                other departments and agencies of the United States, 
                including the Department of Justice, the chief of 
                mission of every diplomatic mission of the United States 
                shall designate an officer or officers within the 
                mission to carry out the responsibility of the mission 
                under paragraph (1), including the coordination of 
                counterdrug, law enforcement, rule of law, and 
                administration of justice programs, policy, and 
                assistance. Such officer or officers shall report to the 
                chief of mission, or the designee of the chief of 
                mission, on a regular basis regarding activities 
                undertaken in carrying out such responsibility.
                    (B) Reports.--The chief of mission of every 
                diplomatic mission of the United States shall submit to 
                the Secretary on a regular basis a report on the actions 
                undertaken by the mission to carry out such 
                responsibility.
            (3) Report to congress.--Not later than 180 days after the 
        date of enactment of this Act, the Secretary shall submit to the 
        Committee on Foreign Relations of the Senate and the Committee 
        on International Relations of the House of Representatives a 
        report on the status of any proposals for action or on action 
        undertaken to improve staffing and personnel management at 
        diplomatic missions of the United States in order to carry out 
        the responsibility set forth in paragraph (1).

SEC. 2215. <> ANNUAL REPORT ON OVERSEAS SURPLUS 
            PROPERTIES.

    The Foreign Service Buildings Act, 1926 (22 U.S.C. 292 et seq.) is 
amended by adding at the end the following new section:

[[Page 112 STAT. 2681-815]]

    ``Sec. 12. <> Not later than March 1 of each 
year, the Secretary of State shall submit to Congress a report listing 
overseas United States surplus properties that are administered under 
this Act and that have been identified for sale.''.

SEC. 2216. HUMAN RIGHTS REPORTS.

    Section 116(d) of the Foreign Assistance Act of 1961 (22 U.S.C. 
2151n(d)) is amended--
            (1) by striking ``January 31'' and inserting ``February 
        25'';
            (2) by redesignating paragraphs (3), (4), (5), and (6) as 
        paragraphs (4), (5), (6), and (7), respectively; and
            (3) by inserting after paragraph (2) the following new 
        paragraph:
            ``(3) the status of child labor practices in each country, 
        including--
                    ``(A) whether such country has adopted policies to 
                protect children from exploitation in the workplace, 
                including a prohibition of forced and bonded labor and 
                policies regarding acceptable working conditions; and
                    ``(B) the extent to which each country enforces such 
                policies, including the adequacy of the resources and 
                oversight dedicated to such policies;''.

SEC. 2217. REPORTS AND POLICY CONCERNING DIPLOMATIC IMMUNITY.

    Title I of the State Department Basic Authorities Act of 1956 (22 
U.S.C. 2651a et seq.), as amended by this division, is further amended 
by adding at the end the following new section:

``SEC. 56. <> CRIMES COMMITTED BY DIPLOMATS.

    ``(a) Annual Report Concerning Diplomatic Immunity.--
            ``(1) Report to congress.--180 days after the date of 
        enactment, and annually thereafter, the Secretary of State shall 
        prepare and submit to the Congress, a report concerning 
        diplomatic immunity entitled ``Report on Cases Involving 
        Diplomatic Immunity''.
            ``(2) Content of report.--In addition to such other 
        information as the Secretary of State may consider appropriate, 
        the report under paragraph (1) shall include the following:
                    ``(A) The number of persons residing in the United 
                States who enjoy full immunity from the criminal 
                jurisdiction of the United States under laws extending 
                diplomatic privileges and immunities.
                    ``(B) Each case involving an alien described in 
                subparagraph (A) in which an appropriate authority of a 
                State, a political subdivision of a State, or the United 
                States reported to the Department of State that the 
                authority had reasonable cause to believe the alien 
                committed a serious criminal offense within the United 
                States, and any additional information provided to the 
                Secretary relating to other serious criminal offenses 
                that any such authority had reasonable cause to believe 
                the alien committed before the period covered by the 
                report. The Secretary may omit from such report any 
                matter the provision of which the Secretary reasonably 
                believes would compromise a criminal investigation or 
                prosecution or which would directly compromise law 
                enforcement or intelligence sources or methods.

[[Page 112 STAT. 2681-816]]

                    ``(C) Each case described in subparagraph (B) in 
                which the Secretary of State has certified that a person 
                enjoys full immunity from the criminal jurisdiction of 
                the United States under laws extending diplomatic 
                privileges and immunities.
                    ``(D) The number of United States citizens who are 
                residing in a receiving state and who enjoy full 
                immunity from the criminal jurisdiction of such state 
                under laws extending diplomatic privileges and 
                immunities.
                    ``(E) Each case involving a United States citizen 
                under subparagraph (D) in which the United States has 
                been requested by the government of a receiving state to 
                waive the immunity from criminal jurisdiction of the 
                United States citizen.
                    ``(F) Whether the Secretary has made the 
                notifications referred to in subsection (c) during the 
                period covered by the report.
            ``(3) Serious criminal offense defined.--For the purposes of 
        this section, the term `serious criminal offense' means--
                    ``(A) any felony under Federal, State, or local law;
                    ``(B) any Federal, State, or local offense 
                punishable by a term of imprisonment of more than 1 
                year;
                    ``(C) any crime of violence as defined for purposes 
                of section 16 of title 18, United States Code; or
                    ``(D)(i) driving under the influence of alcohol or 
                drugs;
                    ``(ii) reckless driving; or
                    ``(iii) driving while intoxicated.

    ``(b) United States Policy Concerning Reform of Diplomatic 
Immunity.--It is the sense of the Congress that the Secretary of State 
should explore, in appropriate fora, whether states should enter into 
agreements and adopt legislation--
            ``(1) to provide jurisdiction in the sending state to 
        prosecute crimes committed in the receiving state by persons 
        entitled to immunity from criminal jurisdiction under laws 
        extending diplomatic privileges and immunities; and
            ``(2) to provide that where there is probable cause to 
        believe that an individual who is entitled to immunity from the 
        criminal jurisdiction of the receiving state under laws 
        extending diplomatic privileges and immunities committed a 
        serious crime, the sending state will waive such immunity or the 
        sending state will prosecute such individual.

    ``(c) Notification of Diplomatic Corps.--The Secretary should 
periodically notify each foreign mission of United States policies 
relating to criminal offenses committed by individuals with immunity 
from the criminal jurisdiction of the United States under laws extending 
diplomatic privileges and immunities.''.

SEC. 2218. <> REAFFIRMING UNITED STATES 
            INTERNATIONAL TELECOMMUNICATIONS POLICY.

    (a) Procurement Policy.--It is the policy of the United States to 
foster and support procurement of goods and services from private, 
commercial companies.
    (b) Implementation.--In order to achieve the policy set forth in 
subsection (a), the Diplomatic Telecommunications Service Program Office 
(DTS-PO) shall--
            (1) utilize full and open competition, to the maximum extent 
        practicable, in the procurement of telecommunications

[[Page 112 STAT. 2681-817]]

        services, including satellite space segment, for the Department 
        of State and each other Federal entity represented at United 
        States diplomatic missions and consular posts overseas;
            (2) make every effort to ensure and promote the 
        participation in the competition for such procurement of 
        commercial private sector providers of satellite space segment 
        who have no ownership or other connection with an 
        intergovernmental satellite organization; and
            (3) implement the competitive procedures required by 
        paragraphs (1) and (2) at the prime contracting level and, to 
        the maximum extent practicable, the subcontracting level.

SEC. 2219. REDUCTION OF REPORTING.

    (a) Repeals.--The following provisions of law are repealed:
            (1) Model foreign language competence posts.--The second 
        sentence of section 161(c) of the Foreign Relations 
        Authorization Act, Fiscal Year 1990 and 1991 (22 U.S.C. 4171 
        note).
            (2) Actions of the government of haiti.--Section 705(c) of 
        the International Security and Development Cooperation Act of 
        1985 (Public Law 99-83).
             <> (3) Training facility for the 
        foreign service institute.--Section 123(e)(2) of the Foreign 
        Relations Authorization Act, Fiscal Years 1986 and 1987 (Public 
        Law 99-93).
            (4) Military assistance for haiti.--Section 203(c) of the 
        Special Foreign Assistance Act of 1986 (Public Law 99-529).
            (5) International sugar agreement, 1977.--Section 5 of the 
        Act entitled ``An Act providing for the implementation of the 
        International Sugar Agreement, 1977, and for other purposes'' 
        (Public Law 96-236; 7 U.S.C. 3605 and 3606).
            (6) Audience survey of worldnet program.--Section 209 (c) 
        and (d) of the Foreign Relations Authorization Act, Fiscal Years 
        1988 and 1989 (Public Law 100-204).
            (7) Research on the near and middle east.--Section 228(b) of 
        the Foreign Relations Authorization Act, Fiscal Years 1992 and 
        1993 (Public Law 102-138; 22 U.S.C. 2452 note).

    (b) Progress Toward Regional Nonproliferation.--Section 620F(c) of 
the Foreign Assistance Act of 1961 (22 U.S.C. 2376(c); relating to 
periodic reports on progress toward regional nonproliferation) is 
amended by striking ``Not later than April 1, 1993 and every six months 
thereafter,'' and inserting ``Not later than April 1 of each year,''.
    (c) Report on Participation by United States Military Personnel 
Abroad in United States Elections.--Section 101(b)(6) of the Uniformed 
and Overseas Citizens Absentee Voting Act of 1986 (42 U.S.C. 
1973ff(b)(6)) is amended by striking ``of voter participation'' and 
inserting ``of uniformed services voter participation, a general 
assessment of overseas nonmilitary participation,''.

[[Page 112 STAT. 2681-818]]

       CHAPTER 2--CONSULAR AUTHORITIES OF THE DEPARTMENT OF STATE

SEC. 2221. USE OF CERTAIN PASSPORT PROCESSING FEES FOR ENHANCED PASSPORT 
            SERVICES.

    For each of the fiscal years 1998 and 1999, of the fees collected 
for expedited passport processing and deposited to an offsetting 
collection pursuant to title V of the Department of State and Related 
Agencies Appropriations Act for Fiscal Year 1995 (Public Law 103-317; 22 
U.S.C. 214 note), 30 percent shall be available only for enhancing 
passport services for United States citizens, improving the integrity 
and efficiency of the passport issuance process, improving the secure 
nature of the United States passport, investigating passport fraud, and 
deterring entry into the United States by terrorists, drug traffickers, 
or other criminals.

SEC. 2222. CONSULAR OFFICERS.

    (a) Persons Authorized To Issue Reports of Births Abroad.--Section 
33 of the State Department Basic Authorities Act of 1956 (22 U.S.C. 
2705) is amended in paragraph (2) by adding at the end the following: 
``For purposes of this paragraph, the term `consular officer' includes 
any United States citizen employee of the Department of State who is 
designated by the Secretary of State to adjudicate nationality abroad 
pursuant to such regulations as the Secretary may prescribe.''.
    (b) Provisions Applicable to Consular Officers.--Section 1689 of the 
Revised Statutes (22 U.S.C. 4191) is amended by inserting ``and to such 
other United States citizen employees of the Department of State as may 
be designated by the Secretary of State pursuant to such regulations as 
the Secretary may prescribe'' after ``such officers''.
    (c) Persons Authorized To Authenticate Foreign Documents.--
            (1) Designated united states citizens performing notarial 
        acts.--Section 1750 of the Revised Statutes, as amended (22 
        U.S.C. 4221) is further amended by inserting after the first 
        sentence: ``At any post, port, or place where there is no 
        consular officer, the Secretary of State may authorize any other 
        officer or employee of the United States Government who is a 
        United States citizen serving overseas, including any contract 
        employee of the United States Government, to perform such acts, 
        and any such contractor so authorized shall not be considered to 
        be a consular officer.''.
            (2) Definition of consular officers.--Section 3492(c) of 
        title 18, United States Code, is amended by adding at the end 
        the following: ``For purposes of this section and sections 3493 
        through 3496 of this title, the term `consular officers' 
        includes any United States citizen who is designated to perform 
        notarial functions pursuant to section 1750 of the Revised 
        Statutes, as amended (22 U.S.C. 4221).''.

    (d) Persons Authorized To Administer Oaths.--Section 115 of title 
35, United States Code, is amended by adding at the end the following: 
``For purposes of this section, a consular officer shall include any 
United States citizen serving overseas, authorized to perform notarial 
functions pursuant to section 1750 of the Revised Statutes, as amended 
(22 U.S.C. 4221).''.

[[Page 112 STAT. 2681-819]]

    (e) Definition of Consular Officer.--Section 101(a)(9) of the 
Immigration and Nationality Act (8 U.S.C. 1101(a)(9)) is amended by--
            (1) inserting ``or employee'' after ``officer'' the second 
        place it appears; and
            (2) inserting before the period at the end of the sentence 
        ``or, when used in title III, for the purpose of adjudicating 
        nationality''.

    (f) Training for Employees Performing Consular Functions.--Section 
704 of the Foreign Service Act of 1980 (22 U.S.C. 4024) is amended by 
adding at the end the following new subsection:
    ``(d)(1) Before a United States citizen employee (other than a 
diplomatic or consular officer of the United States) may be designated 
by the Secretary of State, pursuant to regulation, to perform a consular 
function abroad, the United States citizen employee shall--
            ``(A) be required to complete successfully a program of 
        training essentially equivalent to the training that a consular 
        officer who is a member of the Foreign Service would receive for 
        purposes of performing such function; and
            ``(B) be certified by an appropriate official of the 
        Department of State to be qualified by knowledge and experience 
        to perform such function.

    ``(2) As used in this subsection, the term `consular function' 
includes the issuance of visas, the performance of notarial and other 
legalization functions, the adjudication of passport applications, the 
adjudication of nationality, and the issuance of citizenship 
documentation.''.

SEC. 2223. REPEAL OF OUTDATED CONSULAR RECEIPT REQUIREMENTS.

    Sections 1726, 1727, and 1728 of the Revised Statutes of the United 
States (22 U.S.C. 4212, 4213, and 4214), as amended (relating to 
accounting for consular fees) are repealed.

SEC. 2224. ELIMINATION OF DUPLICATE FEDERAL REGISTER PUBLICATION FOR 
            TRAVEL ADVISORIES.

    (a) Foreign Airports.--Section 44908(a) of title 49, United States 
Code, is amended--
            (1) by inserting ``and'' at the end of paragraph (1);
            (2) by striking paragraph (2); and
            (3) by redesignating paragraph (3) as paragraph (2).

    (b) Foreign Ports.--Section 908(a) of the International Maritime and 
Port Security Act of 1986 (46 U.S.C. App. 1804(a)) is amended by 
striking the second sentence, relating to Federal Register publication 
by the Secretary of State.

SEC. 2225. DENIAL OF VISAS TO CONFISCATORS OF <> AMERICAN PROPERTY.

    (a) Denial of Visas.--Except as otherwise provided in section 401 of 
the Cuban Liberty and Democratic Solidarity (LIBERTAD) Act of 1996 
(Public Law 104-114), and subject to subsection (b), the Secretary of 
State may deny the issuance of a visa to any alien who--
            (1) through the abuse of position, including a governmental 
        or political party position, converts or has converted for 
        personal gain real property that has been confiscated or 
        expropriated,

[[Page 112 STAT. 2681-820]]

        a claim to which is owned by a national of the United States, or 
        who is complicit in such a conversion; or
            (2) induces any of the actions or omissions described in 
        paragraph (1) by any person.

    (b) Exceptions.--Subsection (a) shall not apply to--
            (1) any country established by international mandate through 
        the United Nations; or
            (2) any territory recognized by the United States Government 
        to be in dispute.

    (c) Reporting Requirement.--Not later than 6 months after the date 
of enactment of this Act, and every 12 months thereafter, the Secretary 
of State shall submit to the Speaker of the House of Representatives and 
to the chairman of the Committee on Foreign Relations of the Senate a 
report, including--
            (1) a list of aliens who have been denied a visa under this 
        subsection; and
            (2) a list of aliens who could have been denied a visa under 
        subsection (a) but were issued a visa and an explanation as to 
        why each such visa was issued.

SEC. 2226. INADMISSIBILITY OF ANY ALIEN SUPPORTING AN INTERNATIONAL 
            CHILD ABDUCTOR.

      (a) Amendment of Immigration and Nationality Act.--Section 
212(a)(10)(C) of the Immigration and Nationality Act (8 U.S.C. 
1182(a)(10)(C)) is amended by striking clause (ii) and inserting the 
following:
                          ``(ii) Aliens supporting abductors and 
                      relatives of abductors.--Any alien who--
                                    ``(I) is known by the Secretary of 
                                State to have intentionally assisted an 
                                alien in the conduct described in clause 
                                (i),
                                    ``(II) is known by the Secretary of 
                                State to be intentionally providing 
                                material support or safe haven to an 
                                alien described in clause (i), or
                                    ``(III) is a spouse (other than the 
                                spouse who is the parent of the abducted 
                                child), child (other than the abducted 
                                child), parent, sibling, or agent of an 
                                alien described in clause (i), if such 
                                person has been designated by the 
                                Secretary of State at the Secretary's 
                                sole and unreviewable discretion, is 
                                inadmissible until the child described 
                                in clause (i) is surrendered to the 
                                person granted custody by the order 
                                described in that clause, and such 
                                person and child are permitted to return 
                                to the United States or such person's 
                                place of residence.
                          ``(iii) Exceptions.--Clauses (i) and (ii) 
                      shall not apply--
                                    ``(I) to a government official of 
                                the United States who is acting within 
                                the scope of his or her official duties;
                                    ``(II) to a government official of 
                                any foreign government if the official 
                                has been designated by the Secretary of 
                                State at the Secretary's sole and 
                                unreviewable discretion; or
                                    ``(III) so long as the child is 
                                located in a foreign state that is a 
                                party to the Convention on the

[[Page 112 STAT. 2681-821]]

                                Civil Aspects of International Child 
                                Abduction, done at The Hague on October 
                                25, 1980.''.
       <> (b) Effective Date.--The amendment 
made by subsection (a) shall apply to aliens seeking admission to the 
United States on or after the date of enactment of this Act.

                    CHAPTER 3--REFUGEES AND MIGRATION

              Subchapter A--Authorization of Appropriations

SEC. 2231. MIGRATION AND REFUGEE ASSISTANCE.

      (a) Migration and Refugee Assistance.--
            (1) Authorization of appropriations.--There are authorized 
        to be appropriated for ``Migration and Refugee Assistance'' for 
        authorized activities, $650,000,000 for the fiscal year 1998 and 
        $704,500,000 for the fiscal year 1999.
            (2) Limitations.--
                    (A) Limitation regarding tibetan refugees in india 
                and nepal.--Of the amounts authorized to be appropriated 
                in paragraph (1), not more than $2,000,000 for the 
                fiscal year 1998 and $2,000,000 for the fiscal year 1999 
                are authorized to be available only for humanitarian 
                assistance, including food, medicine, clothing, and 
                medical and vocational training, to Tibetan refugees in 
                India and Nepal who have fled Chinese-occupied Tibet.
                    (B) Refugees resettling in israel.--Of the amounts 
                authorized to be appropriated in paragraph (1), 
                $80,000,000 for the fiscal year 1998 and $80,000,000 for 
                the fiscal year 1999 are authorized to be available for 
                assistance for refugees resettling in Israel from other 
                countries.
                    (C) Humanitarian assistance for displaced burmese.--
                Of the amounts authorized to be appropriated in 
                paragraph (1), $1,500,000 for the fiscal year 1998 and 
                $1,500,000 for the fiscal year 1999 for humanitarian 
                assistance are authorized to be available, including 
                food, medicine, clothing, and medical and vocational 
                training, to persons displaced as a result of civil 
                conflict in Burma, including persons still within Burma.
      (b) Availability of Funds.--Funds appropriated pursuant to this 
section are authorized to remain available until expended.

                        Subchapter B--Authorities

SEC. 2241. <> UNITED STATES POLICY REGARDING 
            THE INVOLUNTARY RETURN OF REFUGEES.
      (a) In General.--None of the funds made available by this 
subdivision shall be available to effect the involuntary return by the 
United States of any person to a country in which the person has a well-
founded fear of persecution on account of race, religion, nationality, 
membership in a particular social group, or political opinion, except on 
grounds recognized as precluding protection as a refugee under the 
United Nations Convention Relating to the Status of Refugees of July 28, 
1951, and the Protocol Relating to the Status of Refugees of January 31, 
1967, subject to the reservations contained in the United States Senate 
Resolution of Ratification.

[[Page 112 STAT. 2681-822]]

      (b) Migration and Refugee Assistance.--None of the funds made 
available by section 2231 of this division or by section 2(c) of the 
Migration and Refugee Assistance Act of 1962 (22 U.S.C. 2601(c)) shall 
be available to effect the involuntary return of any person to any 
country unless the Secretary of State first notifies the appropriate 
congressional committees, except that in the case of an emergency 
involving a threat to human life the Secretary of State shall notify the 
appropriate congressional committees as soon as practicable.
      (c) Involuntary Return Defined.--As used in this section, the term 
``to effect the involuntary return'' means to require, by means of 
physical force or circumstances amounting to a threat thereof, a person 
to return to a country against the person's will, regardless of whether 
the person is physically present in the United States and regardless of 
whether the United States acts directly or through an agent.

SEC. 2242. <> UNITED STATES POLICY WITH RESPECT 
            TO THE INVOLUNTARY RETURN OF PERSONS IN DANGER OF SUBJECTION 
            TO TORTURE.
      (a) Policy.--It shall be the policy of the United States not to 
expel, extradite, or otherwise effect the involuntary return of any 
person to a country in which there are substantial grounds for believing 
the person would be in danger of being subjected to torture, regardless 
of whether the person is physically present in the United States.
      (b) Regulations.--Not later than 120 days after the date of 
enactment of this Act, the heads of the appropriate agencies shall 
prescribe regulations to implement the obligations of the United States 
under Article 3 of the United Nations Convention Against Torture and 
Other Forms of Cruel, Inhuman or Degrading Treatment or Punishment, 
subject to any reservations, understandings, declarations, and provisos 
contained in the United States Senate resolution of ratification of the 
Convention.
      (c) Exclusion of Certain Aliens.--To the maximum extent consistent 
with the obligations of the United States under the Convention, subject 
to any reservations, understandings, declarations, and provisos 
contained in the United States Senate resolution of ratification of the 
Convention, the regulations described in subsection (b) shall exclude 
from the protection of such regulations aliens described in section 
241(b)(3)(B) of the Immigration and Nationality Act (8 U.S.C. 
1231(b)(3)(B)).
      (d) Review and Construction.--Notwithstanding any other provision 
of law, and except as provided in the regulations described in 
subsection (b), no court shall have jurisdiction to review the 
regulations adopted to implement this section, and nothing in this 
section shall be construed as providing any court jurisdiction to 
consider or review claims raised under the Convention or this section, 
or any other determination made with respect to the application of the 
policy set forth in subsection (a), except as part of the review of a 
final order of removal pursuant to section 242 of the Immigration and 
Nationality Act (8 U.S.C. 1252).
      (e) Authority To Detain.--Nothing in this section shall be 
construed as limiting the authority of the Attorney General to detain 
any person under any provision of law, including, but not limited to, 
any provision of the Immigration and Nationality Act.
      (f) Definitions.--

[[Page 112 STAT. 2681-823]]

            (1) Convention defined.--In this section, the term 
        ``Convention'' means the United Nations Convention Against 
        Torture and Other Forms of Cruel, Inhuman or Degrading Treatment 
        or Punishment, done at New York on December 10, 1984.
            (2) Same terms as in the convention.--Except as otherwise 
        provided, the terms used in this section have the meanings given 
        those terms in the Convention, subject to any reservations, 
        understandings, declarations, and provisos contained in the 
        United States Senate resolution of ratification of the 
        Convention.

SEC. 2243. REPROGRAMMING OF MIGRATION AND REFUGEE ASSISTANCE FUNDS.

      Section 34 of the State Department Basic Authorities Act of 1956 
(22 U.S.C. 2706) is amended--
            (1) in subsection (a)--
                    (A) by striking ``Foreign Affairs'' and inserting 
                ``International Relations and the Committee on 
                Appropriations''; and
                    (B) by inserting ``and the Committee on 
                Appropriations'' after ``Foreign Relations''; and
            (2) by adding at the end the following new subsection:

    ``(c) The Secretary of State may waive the notification requirement 
of subsection (a), if the Secretary determines that failure to do so 
would pose a substantial risk to human health or welfare. In the case of 
any waiver under this subsection, notification to the Committee on 
Foreign Relations and the Committee on Appropriations of the Senate and 
the Committee on International Relations and the Committee on 
Appropriations of the House of Representatives shall be provided as soon 
as practicable, but not later than 3 days after taking the action to 
which the notification requirement was applicable, and shall contain an 
explanation of the emergency circumstances.''.

SEC. 2244. ELIGIBILITY FOR REFUGEE STATUS.

    Section 584 of the Foreign Operations, Export Financing, and Related 
Programs Appropriations Act, 1997 (Public Law 104-208; 110 Stat. 3009-
171) is amended--
            (1) in subsection (a)--
                    (A) by striking ``For purposes'' and inserting 
                ``Notwithstanding any other provision of law, for 
                purposes''; and
                    (B) by striking ``fiscal year 1997'' and inserting 
                ``fiscal years 1997, 1998, and 1999''; and
            (2) by amending subsection (b) to read as follows:

    ``(b) Aliens Covered.--
            ``(1) In general.-- An alien described in this subsection is 
        an alien who--
                    ``(A) is the son or daughter of a qualified 
                national;
                    ``(B) is 21 years of age or older; and
                    ``(C) was unmarried as of the date of acceptance of 
                the alien's parent for resettlement under the Orderly 
                Departure Program.
            ``(2) Qualified national.--For purposes of paragraph (1), 
        the term `qualified national' means a national of Vietnam who--
                    ``(A)(i) was formerly interned in a reeducation camp 
                in Vietnam by the Government of the Socialist Republic 
                of Vietnam; or

[[Page 112 STAT. 2681-824]]

                    ``(ii) is the widow or widower of an individual 
                described in clause (i); and
                    ``(B)(i) qualified for refugee processing under the 
                reeducation camp internees subprogram of the Orderly 
                Departure Program; and
                    ``(ii) on or after April 1, 1995, is or has been 
                accepted--
                          ``(I) for resettlement as a refugee; or
                          ``(II) for admission as an immigrant under the 
                      Orderly Departure Program.''.

SEC. 2245. REPORTS TO CONGRESS CONCERNING CUBAN EMIGRATION POLICIES.

    Beginning not later than 6 months after the date of enactment of 
this Act, and every 6 months thereafter, the Secretary of State shall 
supplement the monthly report to Congress entitled ``Update on 
Monitoring of Cuban Migrant Returnees'' with additional information 
concerning the methods employed by the Government of Cuba to enforce the 
United States-Cuba agreement of September 1994 and the treatment by the 
Government of Cuba of persons who have returned to Cuba pursuant to the 
United States-Cuba agreement of May 1995.

  TITLE XXIII--ORGANIZATION OF THE DEPARTMENT OF STATE; DEPARTMENT OF 
                  STATE PERSONNEL; THE FOREIGN SERVICE

           CHAPTER 1--ORGANIZATION OF THE DEPARTMENT OF STATE

SEC. 2301. COORDINATOR FOR COUNTERTERRORISM.

    (a) Establishment.--Section 1 of the State Department Basic 
Authorities Act of 1956 (22 U.S.C. 2651a) is amended by adding at the 
end the following new subsection:
    ``(f) Coordinator for Counterterrorism.--
            `` <> (1) In general.--There is 
        within the office of the Secretary of State a Coordinator for 
        Counterterrorism (in this paragraph referred to as the 
        `Coordinator') who shall be appointed by the President, by and 
        with the advice and consent of the Senate.
            ``(2) Duties.--
                    ``(A) In general.--The Coordinator shall perform 
                such duties and exercise such powers as the Secretary of 
                State shall prescribe.
                    ``(B) Duties described.--The principal duty of the 
                Coordinator shall be the overall supervision (including 
                policy oversight of resources) of international 
                counterterrorism activities. The Coordinator shall be 
                the principal adviser to the Secretary of State on 
                international counterterrorism matters. The Coordinator 
                shall be the principal counterterrorism official within 
                the senior management of the Department of State and 
                shall report directly to the Secretary of State.
            ``(3) Rank and status of ambassador.--The Coordinator shall 
        have the rank and status of Ambassador at Large.''.

    (b) Technical and Conforming Amendments.--Section 161 of the Foreign 
Relations Authorization Act, Fiscal Years 1994 and 1995 (Public Law 103-
236) <> is amended by striking subsection (e).

[[Page 112 STAT. 2681-825]]

SEC. 2302. ELIMINATION OF DEPUTY ASSISTANT SECRETARY OF STATE FOR 
            BURDENSHARING.

    Section 161 of the Foreign Relations Authorization Act, Fiscal Years 
1994 and 1995 (22 U.S.C. 2651a note) is amended by striking subsection 
(f).

SEC. 2303. PERSONNEL MANAGEMENT.

    Section 1 of the State Department Basic Authorities Act of 1956 (22 
U.S.C. 2651a), as amended by this division, is further amended by adding 
at the end the following new subsection:
    ``(g) Qualifications of Officer Having Primary Responsibility for 
Personnel Management.--The officer of the Department of State with 
primary responsibility for assisting the Secretary of State with respect 
to matters relating to personnel in the Department of State, or that 
officer's principal deputy, shall have substantial professional 
qualifications in the field of human resource policy and management.''.

SEC. 2304. DIPLOMATIC SECURITY.

    Section 1 of the State Department Basic Authorities Act of 1956 (22 
U.S.C. 2651a), as amended by this division, is further amended by adding 
at the end the following new subsection:
    ``(h) Qualifications of Officer Having Primary Responsibility for 
Diplomatic Security.--The officer of the Department of State with 
primary responsibility for assisting the Secretary of State with respect 
to diplomatic security, or that officer's principal deputy, shall have 
substantial professional qualifications in the fields of (1) management, 
and (2) Federal law enforcement, intelligence, or security.''.

SEC. 2305. NUMBER OF SENIOR OFFICIAL POSITIONS AUTHORIZED FOR THE 
            DEPARTMENT OF STATE.

    (a) Under Secretaries.--
            (1) In general.--Section 1(b) of the State Department Basic 
        Authorities Act of 1956 (22 U.S.C. 2651a(b)) is amended by 
        striking ``5'' and inserting ``6''.
            (2) Conforming amendment to title 5.--Section 5314 of title 
        5, United States Code, is amended by striking ``Under 
        Secretaries of State (5)'' and inserting ``Under Secretaries of 
        State (6)''.

    (b) Assistant Secretaries.--
            (1) In general.--Section 1(c)(1) of the State Department 
        Basic Authorities Act of 1956 (22 U.S.C. 2651a(c)(1)) is amended 
        by striking ``20'' and inserting ``24''.
            (2) Conforming amendment to title 5.--Section 5315 of title 
        5, United States Code, is amended by striking ``Assistant 
        Secretaries of State (20)'' and inserting ``Assistant 
        Secretaries of State (24)''.

    (c) Deputy Assistant Secretaries.--Section 1 of the State Department 
Basic Authorities Act of 1956 (22 U.S.C. 2651a), as amended by this 
division, is further amended--
            (1) by striking subsection (d); and
            (2) by redesignating subsections (e), (f), (g), and (h) as 
        subsections (d), (e), (f), and (g), respectively.

[[Page 112 STAT. 2681-826]]

SEC. 2306. <> NOMINATION OF UNDER SECRETARIES AND 
            ASSISTANT SECRETARIES OF STATE.

    (a) Under Secretaries of State.--Section 1(b) of the State 
Department Basic Authorities Act of 1956 (22 U.S.C. 2651a(c)), as 
amended by this division, is further amended by adding at the end the 
following new paragraph:
            ``(4) Nomination of Under Secretaries.--Whenever the 
        President submits to the Senate a nomination of an individual 
        for appointment to a position in the Department of State that is 
        described in paragraph (1), the President shall designate the 
        particular Under Secretary position in the Department of State 
        that the individual shall have.''.

    (b) Assistant Secretaries of State.--Section 1(c) of the State 
Department Basic Authorities Act of 1956 (22 U.S.C. 2651a(c)), as 
amended by this division, is further amended by adding at the end the 
following new paragraph:
            ``(3) Nomination of Assistant Secretaries.--Whenever the 
        President submits to the Senate a nomination of an individual 
        for appointment to a position in the Department of State that is 
        described in paragraph (1), the President shall designate the 
        regional or functional bureau or bureaus of the Department of 
        State with respect to which the individual shall have 
        responsibility.''.

  CHAPTER 2--PERSONNEL OF THE DEPARTMENT OF STATE; THE FOREIGN SERVICE

SEC. 2311. FOREIGN SERVICE REFORM.

    (a) Performance Pay.--Section 405 of the Foreign Service Act of 1980 
(22 U.S.C. 3965) is amended--
            (1) in subsection (a), by striking ``Members'' and inserting 
        ``Subject to subsection (e), members''; and
            (2) by adding at the end the following new subsection:

    ``(e) Notwithstanding any other provision of law, the Secretary of 
State may provide for recognition of the meritorious or distinguished 
service of any member of the Foreign Service described in subsection (a) 
(including any member of the Senior Foreign Service) by means other than 
an award of performance pay in lieu of making such an award under this 
section.''.
    (b) Expedited Separation Out.--
             <> (1) Separation of lowest ranked 
        foreign service members.--Not later than 90 days after the date 
        of enactment of this Act, the Secretary of State shall develop 
        and implement procedures to identify, and recommend for 
        separation, any member of the Foreign Service ranked by 
        promotion boards of the Department of State in the bottom 5 
        percent of his or her class for 2 or more of the 5 years 
        preceding the date of enactment of this Act (in this subsection 
        referred to as the ``years of lowest ranking'') if the rating 
        official for such member was not the same individual for any two 
        of the years of lowest ranking.
            (2) Special internal reviews.--In any case where the member 
        was evaluated by the same rating official in any 2 of the years 
        of lowest ranking, an internal review of the member's file shall 
        be conducted to determine whether the member should be 
        considered for action leading to separation.

[[Page 112 STAT. 2681-827]]

            (3) Procedures.--The Secretary of State shall develop 
        procedures for the internal reviews required under paragraph 
        (2).

SEC. 2312. RETIREMENT BENEFITS FOR INVOLUNTARY SEPARATION.

    (a) Benefits.--Section 609 of the Foreign Service Act of 1980 (22 
U.S.C. 4009) is amended--
            (1) in subsection (a)(2)(A), by inserting ``or any other 
        applicable provision of chapter 84 of title 5, United States 
        Code,'' after ``section 811'';
            (2) in subsection (a), by inserting ``or section 855, as 
        appropriate'' after ``section 806''; and
            (3) in subsection (b)(2)--
                    (A) by striking ``(2)'' and inserting ``(2)(A) for 
                those participants in the Foreign Service Retirement and 
                Disability System,''; and
                    (B) by inserting before the period at the end ``; 
                and (B) for those participants in the Foreign Service 
                Pension System, benefits as provided in section 851''; 
                and
            (4) in subsection (b) in the matter following paragraph (2), 
        by inserting ``(for participants in the Foreign Service 
        Retirement and Disability System) or age 62 (for participants in 
        the Foreign Service Pension System)'' after ``age 60''.

    (b) Entitlement to Annuity.--Section 855(b) of the Foreign Service 
Act of 1980 (22 U.S.C. 4071d(b)) is amended--
            (1) in paragraph (1)--
                    (A) by inserting ``611,'' after ``608,'';
                    (B) by inserting ``or for participants in the 
                Foreign Service Pension System,'' after ``for 
                participants in the Foreign Service Retirement and 
                Disability System''; and
                    (C) by striking ``Service shall'' and inserting 
                ``Service, shall''; and
            (2) in paragraph (3), by striking ``or 610'' and inserting 
        ``610, or 611''.

     <> (c) Effective Dates.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall take effect on the date of 
        the enactment of this Act.
             <> (2) Exceptions.--The amendments 
        made by paragraphs (2) and (3) of subsection (a) and paragraphs 
        (1)(A) and (2) of subsection (b) shall apply with respect to any 
        actions taken under section 611 of the Foreign Service Act of 
        1980 on or after January 1, 1996.

SEC. 2313. AUTHORITY OF SECRETARY TO SEPARATE CONVICTED FELONS FROM THE 
            FOREIGN SERVICE.

    Section 610(a)(2) of the Foreign Service Act of 1980 (22 U.S.C. 
4010(a)(2)) is amended in the first sentence by striking ``A member'' 
and inserting ``Except in the case of an individual who has been 
convicted of a crime for which a sentence of imprisonment of more than 1 
year may be imposed, a member''.

SEC. 2314. CAREER COUNSELING.

    (a) In General.--Section 706(a) of the Foreign Service Act of 1980 
(22 U.S.C. 4026(a)) is amended by adding at the end the following new 
sentence: ``Career counseling and related services provided pursuant to 
this Act shall not be construed to permit an assignment that consists 
primarily of paid time to conduct

[[Page 112 STAT. 2681-828]]

a job search and without other substantive duties for more than one 
month.''.
    (b) Effective Date.--The <> amendment made 
by subsection (a) shall be effective 180 days after the date of the 
enactment of this Act.

SEC. 2315. LIMITATIONS ON MANAGEMENT ASSIGNMENTS.

    Section 1017(e)(2) of the Foreign Service Act of 1980 (22 U.S.C. 
4117(e)(2)) is amended to read as follows:
            ``(2) For the purposes of paragraph (1)(A)(ii) and paragraph 
        (1)(B), the term `management official' does not include--
                    ``(A) any chief of mission;
                    ``(B) any principal officer or deputy principal 
                officer;
                    ``(C) any administrative or personnel officer 
                abroad; or
                    ``(D) any individual described in section 1002(12) 
                (B), (C), or (D) who is not involved in the 
                administration of this chapter or in the formulation of 
                the personnel policies and programs of the 
                Department.''.

SEC. 2316. AVAILABILITY PAY FOR CERTAIN CRIMINAL INVESTIGATORS WITHIN 
            THE DIPLOMATIC SECURITY SERVICE.

    (a) In General.--Section 5545a of title 5, United States Code, is 
amended by adding at the end the following:
    ``(k)(1) For purposes of this section, the term `criminal 
investigator' includes a special agent occupying a position under title 
II of Public Law 99-399 if such special agent--
            ``(A) meets the definition of such term under paragraph (2) 
        of subsection (a) (applied disregarding the parenthetical matter 
        before subparagraph (A) thereof); and
            ``(B) such special agent satisfies the requirements of 
        subsection (d) without taking into account any hours described 
        in paragraph (2)(B) thereof.

    ``(2) In applying subsection (h) with respect to a special agent 
under this subsection--
            ``(A) any reference in such subsection to `basic pay' shall 
        be considered to include amounts designated as `salary';
            ``(B) paragraph (2)(A) of such subsection shall be 
        considered to include (in addition to the provisions of law 
        specified therein) sections 609(b)(1), 805, 806, and 856 of the 
        Foreign Service Act of 1980; and
            ``(C) paragraph (2)(B) of such subsection shall be applied 
        by substituting for `Office of Personnel Management' the 
        following: `Office of Personnel Management or the Secretary of 
        State (to the extent that matters exclusively within the 
        jurisdiction of the Secretary are concerned)'.''.

    (b) Implementation.--Not later than the date on which the amendments 
made by this section take effect, each special agent of the Diplomatic 
Security Service who satisfies the requirements of subsection (k)(1) of 
section 5545a of title 5, United States Code, as amended by this 
section, and the appropriate supervisory officer, to be designated by 
the Secretary of State, shall make an initial certification to the 
Secretary of State that the special agent is expected to meet the 
requirements of subsection (d) of such section 5545a. The Secretary of 
State may prescribe procedures necessary to administer this subsection.
    (c) Technical and Conforming Amendments.--(1) Paragraph (2) of 
section 5545a(a) of title 5, United States Code, is amended

[[Page 112 STAT. 2681-829]]

(in the matter before subparagraph (A)) by striking ``Public Law 99-
399)'' and inserting ``Public Law 99-399, subject to subsection (k))''.
    (2) Section 5542(e) of such title is amended by striking ``title 18, 
United States Code,'' and inserting ``title 18 or section 37(a)(3) of 
the State Department Basic Authorities Act of 1956,''.
     <> (d) Effective Date.--The amendments made 
by this section shall take effect on the first day of the first 
applicable pay period--
            (1) which begins on or after the 90th day following the date 
        of the enactment of this Act; and
            (2) on which date all regulations necessary to carry out 
        such amendments are (in the judgment of the Director of the 
        Office of Personnel Management and the Secretary of State) in 
        effect.

SEC. 2317. NONOVERTIME DIFFERENTIAL PAY.

    Title 5 of the United States Code is amended--
            (1) in section 5544(a), by inserting after the fourth 
        sentence the following new sentence: ``For employees serving 
        outside the United States in areas where Sunday is a routine 
        workday and another day of the week is officially recognized as 
        the day of rest and worship, the Secretary of State may 
        designate the officially recognized day of rest and worship as 
        the day with respect to which the preceding sentence shall apply 
        instead of Sunday.''; and
            (2) at the end of section 5546(a), by adding the following 
        new sentence: ``For employees serving outside the United States 
        in areas where Sunday is a routine workday and another day of 
        the week is officially recognized as the day of rest and 
        worship, the Secretary of State may designate the officially 
        recognized day of rest and worship as the day with respect to 
        which the preceding sentence shall apply instead of Sunday.''.

SEC. 2318. <> REPORT CONCERNING MINORITIES AND 
            THE FOREIGN SERVICE.

    The Secretary of State shall during each of calendar years 1998 and 
1999 submit a report to the Congress concerning minorities and the 
Foreign Service officer corps. In addition to such other information as 
is relevant to this issue, the report shall include the following data 
for the last preceding examination and promotion cycles for which such 
information is available (reported in terms of real numbers and 
percentages and not as ratios):
            (1) The numbers and percentages of all minorities taking the 
        written Foreign Service examination.
            (2) The numbers and percentages of all minorities 
        successfully completing and passing the written Foreign Service 
        examination.
            (3) The numbers and percentages of all minorities 
        successfully completing and passing the oral Foreign Service 
        examination.
            (4) The numbers and percentages of all minorities entering 
        the junior officers class of the Foreign Service.
            (5) The numbers and percentages of all minority Foreign 
        Service officers at each grade.
            (6) The numbers of and percentages of minorities promoted at 
        each grade of the Foreign Service officer corps.

[[Page 112 STAT. 2681-830]]

   TITLE XXIV--UNITED STATES INFORMATIONAL, EDUCATIONAL, AND CULTURAL 
                                PROGRAMS

               CHAPTER 1--AUTHORIZATION OF APPROPRIATIONS

SEC. 2401. INTERNATIONAL INFORMATION ACTIVITIES AND EDUCATIONAL AND 
            CULTURAL EXCHANGE PROGRAMS.

    The following amounts are authorized to be appropriated to carry out 
international information activities and educational and cultural 
exchange programs under the United States Information and Educational 
Exchange Act of 1948, the Mutual Educational and Cultural Exchange Act 
of 1961, Reorganization Plan Number 2 of 1977, the United States 
International Broadcasting Act of 1994, the Radio Broadcasting to Cuba 
Act, the Television Broadcasting to Cuba Act, the Board for 
International Broadcasting Act, the North/South Center Act of 1991, and 
the National Endowment for Democracy Act, and to carry out other 
authorities in law consistent with such purposes:
            (1) International information programs.--For ``International 
        Information Programs'', $427,097,000 for the fiscal year 1998 
        and $455,246,000 for the fiscal year 1999.
            (2) Technology fund.--For the ``Technology Fund'' for the 
        United States Information Agency, $5,050,000 for the fiscal year 
        1998 and $5,050,000 for the fiscal year 1999.
            (3) Educational and cultural exchange programs.--
                    (A) Fulbright academic exchange programs.--
                          (i) Fulbright academic exchange programs.--
                      There are authorized to be appropriated for the 
                      ``Fulbright Academic Exchange Programs'' (other 
                      than programs described in subparagraph (B)), 
                      $99,236,000 for the fiscal year 1998 and 
                      $100,000,000 for the fiscal year 1999.
                          (ii) Vietnam fulbright academic exchange 
                      programs.--Of the amounts authorized to be 
                      appropriated under clause (i), $5,000,000 for the 
                      fiscal year 1998 and $5,000,000 for the fiscal 
                      year 1999 are authorized to be available for the 
                      Vietnam scholarship program established by section 
                      229 of the Foreign Relations Authorization Act, 
                      Fiscal Years 1992 and 1993 (Public Law 102-138).
                    (B) Other educational and cultural exchange 
                programs.--
                          (i) In general.--There are authorized to be 
                      appropriated for other educational and cultural 
                      exchange programs authorized by law, $100,764,000 
                      for the fiscal year 1998 and $102,500,000 for the 
                      fiscal year 1999.
                          (ii) South pacific exchanges.--Of the amounts 
                      authorized to be appropriated under clause (i), 
                      $500,000 for the fiscal year 1998 and $500,000 for 
                      the fiscal year 1999 are authorized to be 
                      available for ``South Pacific Exchanges''.
                          (iii) East timorese scholarships.--Of the 
                      amounts authorized to be appropriated under clause 
                      (i), $500,000 for the fiscal year 1998 and 
                      $500,000 for the fiscal year 1999 are authorized 
                      to be available for ``East Timorese 
                      Scholarships''.

[[Page 112 STAT. 2681-831]]

                          (iv) Tibetan exchanges.--Of the amounts 
                      authorized to be appropriated under clause (i), 
                      $500,000 for the fiscal year 1998 and $500,000 for 
                      the fiscal year 1999 are authorized to be 
                      available for ``Educational and Cultural Exchanges 
                      with Tibet'' under section 236 of the Foreign 
                      Relations Authorization Act, Fiscal Years 1994 and 
                      1995 (Public Law 103-236).
            (4) International broadcasting activities.--
                    (A) Authorization of appropriations.--For 
                ``International Broadcasting Activities'', $340,315,000 
                for the fiscal year 1998, and $340,365,000 for the 
                fiscal year 1999.
                    (B) Allocation.--Of the amounts authorized to be 
                appropriated under subparagraph (A), the Director of the 
                United States Information Agency and the Broadcasting 
                Board of Governors shall seek to ensure that the amounts 
                made available for broadcasting to nations whose people 
                do not fully enjoy freedom of expression do not decline 
                in proportion to the amounts made available for 
                broadcasting to other nations.
            (5) Radio construction.--For ``Radio Construction'', 
        $40,000,000 for the fiscal year 1998, and $13,245,000 for the 
        fiscal year 1999.
            (6) Radio free asia.--For ``Radio Free Asia'', $24,100,000 
        for the fiscal year 1998 and $22,000,000 for the fiscal year 
        1999, and an additional $8,000,000 in fiscal year 1998 for one-
        time capital costs.
            (7) Broadcasting to cuba.--For ``Broadcasting to Cuba'', 
        $22,095,000 for the fiscal year 1998 and $22,095,000 for the 
        fiscal year 1999.
            (8) Center for cultural and technical interchange between 
        east and west.--For the ``Center for Cultural and Technical 
        Interchange between East and West'', not more than $12,000,000 
        for the fiscal year 1998 and not more than $12,500,000 for the 
        fiscal year 1999.
            (9) National endowment for democracy.--For the ``National 
        Endowment for Democracy'', $30,000,000 for the fiscal year 1998 
        and $31,000,000 for the fiscal year 1999.
            (10) Center for cultural and technical interchange between 
        north and south.--For ``Center for Cultural and Technical 
        Interchange between North and South'' not more than $1,500,000 
        for the fiscal year 1998 and not more than $1,750,000 for the 
        fiscal year 1999.

                  CHAPTER 2--AUTHORITIES AND ACTIVITIES

SEC. 2411. <> RETENTION OF INTEREST.

    Notwithstanding any other provision of law, with the approval of the 
National Endowment for Democracy, grant funds made available by the 
National Endowment for Democracy may be deposited in interest-bearing 
accounts pending disbursement, and any interest which accrues may be 
retained by the grantee without returning such interest to the Treasury 
of the United States and interest earned may be obligated and expended 
for the purposes for which the grant was made without further 
appropriation.

[[Page 112 STAT. 2681-832]]

SEC. 2412. USE OF SELECTED PROGRAM FEES.

    Section 810 of the United States Information and Educational 
  Exchange Act of 1948 (22 U.S.C. 1475e) is amended to read as follows:

    ``Sec. 810. (a) In General.--Notwithstanding section 3302 of title 
31, United States Code, or any other law or limitation of authority, 
fees and receipts described in subsection (b) are authorized to be 
credited each fiscal year for authorized purposes to the appropriate 
appropriations of the United States Information Agency to such extent as 
may be provided in advance in appropriations acts.

    ``(b) Fees and Receipts Described.--The fees and receipts described 
in this subsection are fees and payments received by or for the use of 
the United States Information Agency from or in connection with--
            ``(1) English-teaching and library services,
            ``(2) educational advising and counseling,
            ``(3) Exchange Visitor Program Services,
            ``(4) advertising and business ventures of the Voice of 
        America and the International Broadcasting Bureau,
            ``(5) cooperating international organizations, and
            ``(6) Agency-produced publications,
            ``(7) an amount not to exceed $100,000 of the payments from 
        motion picture and television programs produced or conducted by 
        or on behalf of the Agency under the authority of this Act or 
        the Mutual Education and Cultural Exchange Act of 1961.''.

SEC. 2413. MUSKIE FELLOWSHIP PROGRAM.

    (a) Guidelines.--Section 227(c)(5) of the Foreign Relations 
Authorization Act, Fiscal Years 1992 and 1993 (22 U.S.C. 2452 note) is 
amended by inserting ``journalism and communications, education 
administration, public policy, library and information science,'' after 
``business administration,'' each of the two places it appears.
    (b) Redesignation of Soviet Union.--Section 227 of the Foreign 
Relations Authorization Act, Fiscal Years 1992 and 1993 (22 U.S.C. 2452 
note) is amended--
            (1) in subsections (a), (b), and (c)(5), by striking 
        ``Soviet Union'' each place it appears and inserting 
        ``independent states of the former Soviet Union'';
            (2) in subsection (c)(11), by striking ``Soviet republics'' 
        and inserting ``independent states of the former Soviet Union''; 
        and
            (3) in the section heading, by inserting ``INDEPENDENT 
        STATES OF THE FORMER'' after ``FROM THE''.

SEC. 2414. WORKING GROUP ON UNITED 
            STATES <> GOVERNMENT-SPONSORED 
            INTERNATIONAL EXCHANGES AND TRAINING.

    Section 112 of the Mutual Educational and Cultural Exchange Act of 
1961 (22 U.S.C. 2460) is amended by adding at the end the following new 
subsection:
    ``(g) Working Group on United States Government Sponsored 
International Exchanges and Training.--(1) In order to carry out the 
purposes of subsection (f) and to improve the coordination, efficiency, 
and effectiveness of United States Government-

[[Page 112 STAT. 2681-833]]

sponsored international exchanges and training, there is established 
within the United States Information Agency a senior-level interagency 
working group to be known as the Working Group on United States 
Government-Sponsored International Exchanges and Training (in this 
section referred to as the `Working Group').
    ``(2) For purposes of this subsection, the term `Government-
sponsored international exchanges and training' means the movement of 
people between countries to promote the sharing of ideas, to develop 
skills, and to foster mutual understanding and cooperation, financed 
wholly or in part, directly or indirectly, with United States Government 
funds.
    ``(3) The Working Group shall be composed as follows:
            ``(A) The Associate Director for Educational and Cultural 
        Affairs of the United States Information Agency, who shall act 
        as Chair.
            ``(B) A senior representative of the Department of State, 
        who shall be designated by the Secretary of State.
            ``(C) A senior representative of the Department of Defense, 
        who shall be designated by the Secretary of Defense.
            ``(D) A senior representative of the Department of 
        Education, who shall be designated by the Secretary of 
        Education.
            ``(E) A senior representative of the Department of Justice, 
        who shall be designated by the Attorney General.
            ``(F) A senior representative of the Agency for 
        International Development, who shall be designated by the 
        Administrator of the Agency.
            ``(G) Senior representatives of such other departments and 
        agencies as the Chair determines to be appropriate.

    ``(4) Representatives of the National Security Adviser and the 
Director of the Office of Management and Budget may participate in the 
Working Group at the discretion of the Adviser and the Director, 
respectively.
    ``(5) The Working Group shall be supported by an interagency staff 
office established in the Bureau of Educational and Cultural Affairs of 
the United States Information Agency.
    ``(6) The Working Group shall have the following purposes and 
responsibilities:
            ``(A) To collect, analyze, and report data provided by all 
        United States Government departments and agencies conducting 
        international exchanges and training programs.
            ``(B) To promote greater understanding and cooperation among 
        concerned United States Government departments and agencies of 
        common issues and challenges in conducting international 
        exchanges and training programs, including through the 
        establishment of a clearinghouse for information on 
        international exchange and training activities in the 
        governmental and nongovernmental sectors.
            ``(C) In order to achieve the most efficient and cost-
        effective use of Federal resources, to identify administrative 
        and programmatic duplication and overlap of activities by the 
        various United States Government departments and agencies 
        involved in Government-sponsored international exchange and 
        training programs, to identify how each Government-sponsored 
        international exchange and training program promotes United 
        States foreign policy, and to report thereon.
            ``(D)(i) Not later than 1 year after the date of the 
        enactment of the Foreign Relations Authorization Act, Fiscal 
        Years 1998

[[Page 112 STAT. 2681-834]]

        and 1999, the Working Group shall develop a coordinated and 
        cost-effective strategy for all United States Government-
        sponsored international exchange and training programs, 
        including an action plan with the objective of achieving a 
        minimum of 10 percent cost savings through greater efficiency, 
        the consolidation of programs, or the elimination of 
        duplication, or any combination thereof.
            ``(ii) Not later than 1 year after the date 
        of <> enactment of the Foreign Relations 
        Authorization Act, Fiscal Years 1998 and 1999, the Working Group 
        shall submit a report to the appropriate congressional 
        committees setting forth the strategy and action plan required 
        by clause (i).
            ``(iii) Each year thereafter the Working Group shall assess 
        the strategy and plan required by clause (i).
            ``(E) <> Not later than 2 years after the 
        date of the enactment of the Foreign Relations Authorization 
        Act, Fiscal Years 1998 and 1999, to develop recommendations on 
        common performance measures for all United States Government-
        sponsored international exchange and training programs, and to 
        issue a report.
            ``(F) To conduct a survey of private sector international 
        exchange activities and develop strategies for expanding public 
        and private partnerships in, and leveraging private sector 
        support for, United States Government-sponsored international 
        exchange and training activities.
            ``(G) Not later than 6 months after the date of the 
        enactment of the Foreign Relations Authorization Act, Fiscal 
        Years 1998 and 1999, to report on the feasibility and 
        advisability of transferring funds and program management for 
        the ATLAS or the Mandela Fellows programs, or both, in South 
        Africa from the Agency for International Development to the 
        United States Information Agency. <> The report 
        shall include an assessment of the capabilities of the South 
        African Fulbright Commission to manage such programs and the 
        cost effects of consolidating such programs under one entity.

    ``(7) All reports prepared by the Working Group shall be submitted 
to the President, through the Director of the United States Information 
Agency.
    ``(8) The Working Group shall meet at least on a quarterly basis.
    ``(9) All decisions of the Working Group shall be by majority vote 
of the members present and voting.
    ``(10) The members of the Working Group shall serve without 
additional compensation for their service on the Working Group. Any 
expenses incurred by a member of the Working Group in connection with 
service on the Working Group shall be compensated by that member's 
department or agency.
    ``(11) With respect to any report issued under paragraph (6), a 
member may submit dissenting views to be submitted as part of the report 
of the Working Group.''.

SEC. 2415. EDUCATIONAL AND CULTURAL EXCHANGES AND SCHOLARSHIPS FOR 
            TIBETANS AND BURMESE.

     <> (a) In General.--Section 103(b)(1) of 
the Human Rights, Refugee, and Other Foreign Relations Provisions Act of 
1996 (Public Law 104-319; 22 U.S.C. 2151 note) is amended--
            (1) by striking ``for fiscal year 1997'' and inserting ``for 
        the fiscal year 1999''; and

[[Page 112 STAT. 2681-835]]

            (2) by inserting after ``who are outside Tibet'' the 
        following: ``(if practicable, including individuals active in 
        the preservation of Tibet's unique culture, religion, and 
        language)''.

     <> (b) Effective Date.--The amendments 
made by subsection (a) shall take effect on October 1, 1998.

SEC. 2416. SURROGATE BROADCASTING STUDY.

    Not later than 6 months after the date of enactment of this Act, the 
Broadcasting Board of Governors, acting through the International 
Broadcasting Bureau, should conduct and complete a study of the 
appropriateness, feasibility, and projected costs of providing surrogate 
broadcasting service to Africa and transmit the results of the study to 
the appropriate congressional committees.

SEC. 2417. RADIO BROADCASTING TO IRAN IN THE FARSI LANGUAGE.

    (a) Radio Free Iran.--Not more than $2,000,000 of the funds made 
available under section 2401(a)(4) of this division for each of the 
fiscal years 1998 and 1999 for grants to RFE/RL, Incorporated, shall be 
available only for surrogate radio broadcasting by RFE/RL, Incorporated, 
to the Iranian people in the Farsi language, such broadcasts to be 
designated as ``Radio Free Iran''.
    (b) Report to Congress.--Not later than 60 days after the date of 
enactment of this Act, the Broadcasting Board of Governors of the United 
States Information Agency shall submit a detailed report to Congress 
describing the costs, implementation, and plans for creation of the 
surrogate broadcasting service described in subsection (a).
    (c) Availability of Funds.--None of the funds made available under 
subsection (a) may be made available until submission of the report 
required under subsection (b).

SEC. 2418. <> AUTHORITY TO ADMINISTER SUMMER 
            TRAVEL AND WORK PROGRAMS.

    The Director of the United States Information Agency is authorized 
to administer summer travel and work programs without regard to 
preplacement requirements.

SEC. 2419. PERMANENT ADMINISTRATIVE AUTHORITIES REGARDING 
            APPROPRIATIONS.

    Section 701(f) of the United States Information and Educational 
Exchange Act of 1948 (22 U.S.C. 1476(f)) is amended by striking 
paragraph (4).

SEC. 2420. <> VOICE OF AMERICA BROADCASTS.

    (a) In General.--The Voice of America shall devote programming each 
day to broadcasting information on the individual States of the United 
States. The broadcasts shall include--
            (1) information on the products, tourism, and cultural and 
        educational facilities of each State;
            (2) information on the potential for trade with each State; 
        and
            (3) discussions with State officials with respect to the 
        matters described in paragraphs (1) and (2).

    (b) Report.--Not later than one year after the date of enactment of 
this Act, the Broadcasting Board of Governors of the United States 
Information Agency shall submit a report to Congress detailing the 
actions that have been taken to carry out subsection (a).

[[Page 112 STAT. 2681-836]]

    (c) State Defined.--In this section, the term ``State'' means any of 
the several States of the United States, the District of Columbia, or 
any commonwealth or territory of the United States.

    TITLE XXV--INTERNATIONAL ORGANIZATIONS OTHER THAN UNITED NATIONS

SEC. 2501. INTERNATIONAL CONFERENCES AND CONTINGENCIES.

    There are authorized to be appropriated for ``International 
Conferences and Contingencies'', $6,537,000 for the fiscal year 1998 and 
$16,223,000 for the fiscal year 1999 for the Department of State to 
carry out the authorities, functions, duties, and responsibilities in 
the conduct of the foreign affairs of the United States with respect to 
international conferences and contingencies and to carry out other 
authorities in law consistent with such purposes.

SEC. 2502. <> RESTRICTION RELATING TO UNITED STATES 
            ACCESSION TO ANY NEW INTERNATIONAL CRIMINAL TRIBUNAL.

    (a) Prohibition.--The United States shall not become a party to any 
new international criminal tribunal, nor give legal effect to the 
jurisdiction of such a tribunal over any matter described in subsection 
(b), except pursuant to--
            (1) a treaty made under Article II, section 2, clause 2 of 
        the Constitution of the United States on or after the date of 
        enactment of this Act; or
            (2) any statute enacted by Congress on or after the date of 
        enactment of this Act.

    (b) Jurisdiction Described.--The jurisdiction described in this 
section is jurisdiction over--
            (1) persons found, property located, or acts or omissions 
        committed, within the territory of the United States; or
            (2) nationals of the United States, wherever found.

    (c) Statutory Construction.--Nothing in this section precludes 
sharing information, expertise, or other forms of assistance with such 
tribunal.
    (d) Definition.--The term ``new international criminal tribunal'' 
means any permanent international criminal tribunal established on or 
after the date of enactment of this Act and does not include--
            (1) the International Tribunal for the Prosecution of 
        Persons Responsible for Serious Violations of International 
        Humanitarian Law in the Territory of the Former Yugoslavia, as 
        established by United Nations Security Council Resolution 827 of 
        May 25, 1993; or
            (2) the International Tribunal for the Prosecution of 
        Persons Responsible for Genocide and Other Serious Violations of 
        International Humanitarian Law Committed in the Territory of 
        Rwanda and Rwandan Citizens Responsible for Genocide and Other 
        Such Violations Committed in the Territory of Neighboring 
        States, as established by United Nations Security Council 
        Resolution 955 of November 8, 1994.

SEC. 2503. <> UNITED STATES MEMBERSHIP IN THE 
            BUREAU OF THE INTERPARLIAMENTARY UNION.

     <> (a) Interparliamentary 
Union Limitation.--Unless the Secretary of State certifies to Congress 
that the United States will be assessed not more than $500,000 for its 
annual contribution to the Bureau of the Interparliamentary Union during 
fiscal year

[[Page 112 STAT. 2681-837]]

1999, then effective October 1, 1999, the authority for further 
participation by the United States in the Bureau shall terminate in 
accordance with subsection (d).

    (b) Elimination of Authority To Pay Expenses of the American 
Group.--Section 1 of the Act entitled ``An Act to authorize 
participation by the United States in the Interparliamentary Union'', 
approved June 28, 1935 (22 U.S.C. 276) is amended--
            (1) in the first sentence--
                    (A) by striking ``fiscal year'' and all that follows 
                through ``(1) for'' and inserting ``fiscal year for'';
                    (B) by striking ``; and''; and
                    (C) by striking paragraph (2); and
            (2) by striking the second sentence.

    (c) Elimination of Permanent Appropriation.--Section 303 of the 
Departments of Commerce, Justice, and State, the Judiciary, and Related 
Agencies Appropriations Act, 1988 (as contained in section 101(a) of the 
Continuing Appropriations Act, 1988 (Public Law 100-202; 22 U.S.C. 276 
note)) is amended--
            (1) by striking ``$440,000'' and inserting ``$350,000''; and
            (2) by striking ``paragraph (2) of the first section of 
        Public Law 74-170,''.

    (d) Conditional Termination of Authority.--Unless Congress receives 
the certification described in subsection (a) before October 1, 1999, 
effective on that date the Act entitled ``An Act to authorize 
participation by the United States in the Interparliamentary Union'', 
approved June 28, 1935 (22 U.S.C. 276-276a-4) is repealed.
     <> (e) Transfer of Funds to the Treasury.--
Unobligated balances of appropriations made under section 303 of the 
Departments of Commerce, Justice, and State, the Judiciary, and Related 
Agencies Appropriations Act 1988 (as contained in section 101(a) of the 
Continuing Appropriations Act, 1988; Public Law 100-202) that are 
available as of the day before the date of enactment of this Act shall 
be transferred on such date to the general fund of the Treasury of the 
United States.

SEC. 2504. SERVICE IN INTERNATIONAL ORGANIZATIONS.

    (a) In General.--Section 3582(b) of title 5, United States Code, is 
amended by striking all after the first sentence and inserting the 
following: ``On reemployment, an employee entitled to the benefits of 
subsection (a) is entitled to the rate of basic pay to which the 
employee would have been entitled had the employee remained in the civil 
service. On reemployment, the agency shall restore the sick leave 
account of the employee, by credit or charge, to its status at the time 
of transfer. The period of separation caused by the employment of the 
employee with the international organization and the period necessary to 
effect reemployment are deemed creditable service for all appropriate 
civil service employment purposes. This subsection does not apply to a 
congressional employee.''.
     <> (b) Effective Date.--The amendment made 
by subsection (a) shall apply with respect to transfers that take effect 
on or after the date of enactment of this Act.

SEC. 2505. <> REPORTS REGARDING FOREIGN TRAVEL.

    (a) Prohibition.--Except as provided in subsection (e), none of the 
funds authorized to be appropriated by this division for fiscal year 
1999 may be used to pay for the expenses of foreign travel by an officer 
or employee of an Executive branch agency

[[Page 112 STAT. 2681-838]]

to attend an international conference, or for the routine services that 
a United States diplomatic mission or consular post provides in support 
of foreign travel by such an officer or employee to attend an 
international conference, unless that officer or employee has submitted 
a preliminary report with respect to that foreign travel in accordance 
with subsection (b), and has not previously failed to submit a final 
report with respect to foreign travel to attend an international 
conference required by subsection (c).
    (b) Preliminary Reports.--A preliminary report referred to in 
subsection (a) is a report by an officer or employee of an Executive 
branch agency with respect to proposed foreign travel to attend an 
international conference, submitted to the Director prior to 
commencement of the travel, setting forth--
            (1) the name and employing agency of the officer or 
        employee;
            (2) the name of the official who authorized the travel; and
            (3) the purpose and duration of the travel.

    (c) Final Reports.--A final report referred to in subsection (a) is 
a report by an officer or employee of an Executive branch agency with 
respect to foreign travel to attend an international conference, 
submitted to the Director not later than 30 days after the conclusion of 
the travel--
            (1) setting forth the actual duration and cost of the 
        travel; and
            (2) updating any other information included in the 
        preliminary report.

    (d) Report to Congress.--The Director shall submit a report not 
later than April 1, 1999, to the Committees on Foreign Relations and 
Appropriations of the Senate and the Committees on International 
Relations and Appropriations of the House of Representatives, setting 
forth with respect to each international conference for which reports 
described in subsection (c) were required to be submitted to the 
Director during the preceding six months--
            (1) the names and employing agencies of all officers and 
        employees of Executive branch agencies who attended the 
        international conference;
            (2) the names of all officials who authorized travel to the 
        international conference, and the total number of officers and 
        employees who were authorized to travel to the conference by 
        each such official; and
            (3) the total cost of travel by officers and employees of 
        Executive branch agencies to the international conference.

    (e) Exceptions.--This section shall not apply to travel by--
            (1) the President or the Vice President;
            (2) any officer or employee who is carrying out an 
        intelligence or intelligence-related activity, who is performing 
        a protective function, or who is engaged in a sensitive 
        diplomatic mission; or
            (3) any officer or employee who travels prior to January 1, 
        1999.

    (f) Definitions.--In this section:
            (1) Director.--The term ``Director'' means the Director of 
        the Office of International Conferences of the Department of 
        State.
            (2) Executive branch agency.--The terms ``Executive branch 
        agency'' and ``Executive branch agencies'' mean--

[[Page 112 STAT. 2681-839]]

                    (A) an entity or entities, other than the General 
                Accounting Office, defined in section 105 of title 5, 
                United States Code; and
                    (B) the Executive Office of the President (except as 
                provided in subsection (e)).
            (3) International conference.--The term ``international 
        conference'' means any meeting held under the auspices of an 
        international organization or foreign government, at which 
        representatives of more than two foreign governments are 
        expected to be in attendance, and to which United States 
        Executive branch agencies will send a total of ten or more 
        representatives.

    (g) Report.--Not later than 180 days after the date of enactment of 
this Act, and annually thereafter, the President shall submit to the 
appropriate congressional committees a report describing--
            (1) the total Federal expenditure of all official 
        international travel in each Executive branch agency during the 
        previous fiscal year; and
            (2) the total number of individuals in each agency who 
        engaged in such travel.

      TITLE XXVI--UNITED STATES ARMS CONTROL AND DISARMAMENT AGENCY

SEC. 2601. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to carry out the purposes of 
the Arms Control and Disarmament Act $41,500,000 for the fiscal year 
1999.

SEC. 2602. STATUTORY CONSTRUCTION.

    Section 303 of the Arms Control and Disarmament Act (22 U.S.C. 
2573), as redesignated by section 2223 of this division, is amended by 
adding at the end the following new subsection:
    ``(c) Statutory Construction.--Nothing contained in this chapter 
shall be construed to authorize any policy or action by any Government 
agency which would interfere with, restrict, or prohibit the 
acquisition, possession, or use of firearms by an individual for the 
lawful purpose of personal defense, sport, recreation, education, or 
training.''.

TITLE <> XXVII--
EUROPEAN SECURITY ACT OF 1998

SEC. 2701. SHORT TITLE.

    This title may be cited as the ``European Security Act of 1998''.

SEC. 2702. STATEMENT OF POLICY.

    (a) Policy With Respect to NATO Enlargement.--Congress urges the 
President to outline a clear and complete strategic rationale for the 
enlargement of the North Atlantic Treaty Organization (NATO), and 
declares that--
            (1) Poland, Hungary, and the Czech Republic should not be 
        the last emerging democracies in Central and Eastern Europe 
        invited to join NATO;
            (2) the United States should ensure that NATO continues a 
        process whereby all other emerging democracies in Central and 
        Eastern Europe that wish to join NATO will be considered

[[Page 112 STAT. 2681-840]]

        for membership in NATO as soon as they meet the criteria for 
        such membership;
            (3) the United States should ensure that no limitations are 
        placed on the numbers of NATO troops or types of equipment, 
        including tactical nuclear weapons, to be deployed on the 
        territory of new member states;
            (4) the United States should reject all efforts to condition 
        NATO decisions on review or approval by the United Nations 
        Security Council;
            (5) the United States should clearly delineate those NATO 
        deliberations, including but not limited to discussions on arms 
        control, further Alliance enlargement, procurement matters, and 
        strategic doctrine, that are not subject to review or discussion 
        in the NATO-Russia Permanent Joint Council;
            (6) the United States should work to ensure that countries 
        invited to join the Alliance are provided an immediate seat in 
        NATO discussions; and
            (7) the United States already pays more than a proportionate 
        share of the costs of the common defense of Europe and should 
        obtain, in advance, agreement on an equitable distribution of 
        the cost of NATO enlargement to ensure that the United States 
        does not continue to bear a disproportionate burden.

    (b) Policy With Respect to Negotiations With Russia.--
            (1) Implementation.--NATO enlargement should be carried out 
        in such a manner as to underscore the Alliance's defensive 
        nature and demonstrate to Russia that NATO enlargement will 
        enhance the security of all countries in Europe, including 
        Russia. Accordingly, the United States and its NATO allies 
        should make this intention clear in negotiations with Russia, 
        including negotiations regarding adaptation of the Conventional 
        Armed Forces in Europe (CFE) Treaty of November 19, 1990.
            (2) Limitations on commitments to russia.--In seeking to 
        demonstrate to Russia NATO's defensive and security-enhancing 
        intentions, it is essential that neither fundamental United 
        States security interests in Europe nor the effectiveness and 
        flexibility of NATO as a defensive alliance be jeopardized. In 
        particular, no commitments should be made to Russia that would 
        have the effect of--
                    (A) extending rights or imposing responsibilities on 
                new NATO members different from those applicable to 
                current NATO members, including rights or 
                responsibilities with respect to the deployment of 
                nuclear weapons and the stationing of troops and 
                equipment from other NATO members;
                    (B) limiting the ability of NATO to defend the 
                territory of new NATO members by, for example, 
                restricting the construction of defense infrastructure 
                or limiting the ability of NATO to deploy necessary 
                reinforcements;
                    (C) providing any international organization, or any 
                country that is not a member of NATO, with authority to 
                delay, veto, or otherwise impede deliberations and 
                decisions of the North Atlantic Council or the 
                implementation of such decisions, including 
                deliberations and decisions with respect to the 
                deployment of NATO forces or the admission of additional 
                members to NATO;

[[Page 112 STAT. 2681-841]]

                    (D) impeding the development of enhanced relations 
                between NATO and other European countries that do not 
                belong to the Alliance;
                    (E) establishing a nuclear weapons-free zone in 
                Central or Eastern Europe;
                    (F) requiring NATO to subsidize Russian arms sales, 
                service, or support to the militaries of those former 
                Warsaw Pact countries invited to join the Alliance; or
                    (G) legitimizing Russian efforts to link concessions 
                in arms control negotiations to NATO enlargement.
            (3) Commitments from russia.--In order to enhance security 
        and stability in Europe, the United States should seek 
        commitments from Russia--
                    (A) to demarcate and respect all its borders with 
                neighboring states;
                    (B) to achieve the immediate and complete withdrawal 
                of any armed forces and military equipment under the 
                control of Russia that are deployed on the territories 
                of the independent states of the former Soviet Union 
                without the full and complete agreement of those states;
                    (C) to station its armed forces on the territory of 
                other states only with the full and complete agreement 
                of that state and in strict accordance with 
                international law; and
                    (D) to take steps to reduce further its nuclear and 
                conventional forces in Kaliningrad.
            (4) Consultations.--As negotiations on adaptation of the 
        Treaty on Conventional Armed Forces in Europe proceed, the 
        United States should engage in close and continuous 
        consultations not only with its NATO allies, but also with the 
        emerging democracies of Central and Eastern Europe, Ukraine, and 
        the South Caucasus.

    (c) Policy With Respect to Ballistic Missile Defense Cooperation.--
            (1) In general.--As the United States proceeds with efforts 
        to develop defenses against ballistic missile attack, it should 
        seek to foster a climate of cooperation with Russia on matters 
        related to missile defense. In particular, the United States and 
        its NATO allies should seek to cooperate with Russia in such 
        areas as early warning.
            (2) Discussions with nato allies.--The United States should 
        initiate discussions with its NATO allies for the purpose of 
        examining the feasibility of deploying a ballistic missile 
        defense capable of protecting NATO's southern and eastern flanks 
        from a limited ballistic missile attack.
            (3) Constitutional prerogatives.--Even as the Congress seeks 
        to promote ballistic missile defense cooperation with Russia, it 
        must insist on its constitutional prerogatives regarding 
        consideration of arms control agreements with Russia that bear 
        on ballistic missile defense.

SEC. 2703. AUTHORITIES RELATING TO NATO ENLARGEMENT.

    (a) Policy of Section.--This section is enacted in order to 
implement the policy set forth in section 2702(a).
    (b) Designation of Additional Countries Eligible for NATO 
Enlargement Assistance.--
            (1) Designation of additional countries.--Romania, Estonia, 
        Latvia, Lithuania, and Bulgaria are each designated

[[Page 112 STAT. 2681-842]]

        as eligible to receive assistance under the program established 
        under section 203(a) of the NATO Participation Act of 1994 (22 
        U.S.C. 1928 note) and shall be deemed to have been so designated 
        pursuant to section 203(d)(1) of such Act.
            (2) Rule of construction.--The designation of countries 
        pursuant to paragraph (1) as eligible to receive assistance 
        under the program established under section 203(a) of the NATO 
        Participation Act of 1994--
                    (A) is in addition to the designation of other 
                countries by law or pursuant to section 203(d)(2) of 
                such Act as eligible to receive assistance under the 
                program established under section 203(a) of such Act; 
                and
                    (B) shall not preclude the designation by the 
                President of other emerging democracies in Central and 
                Eastern Europe pursuant to section 203(d)(2) of such Act 
                as eligible to receive assistance under the program 
                established under section 203(a) of such Act.
            (3) Sense of congress.--It is the sense of Congress that 
        Romania, Estonia, Latvia, Lithuania, and Bulgaria--
                    (A) are to be commended for their progress toward 
                political and economic reform and meeting the guidelines 
                for prospective NATO members;
                    (B) would make an outstanding contribution to 
                furthering the goals of NATO and enhancing stability, 
                freedom, and peace in Europe should they become NATO 
                members; and
                    (C) upon complete satisfaction of all relevant 
                criteria should be invited to become full NATO members 
                at the earliest possible date.

    (c) Regional Airspace Initiative and Partnership for Peace 
Information Management System.--
            (1) In general.--Funds described in paragraph (2) are 
        authorized to be made available to support the implementation of 
        the Regional Airspace Initiative and the Partnership for Peace 
        Information Management System, including--
                    (A) the procurement of items in support of these 
                programs; and
                    (B) the transfer of such items to countries 
                participating in these programs.
            (2) Funds described.--Funds described in this paragraph are 
        funds that are available--
                    (A) during any fiscal year under the NATO 
                Participation Act of 1994 with respect to countries 
                eligible for assistance under that Act; or
                    (B) during fiscal year 1998 under any Act to carry 
                out the Warsaw Initiative.

    (d) Extension of Authority Regarding Excess Defense Articles.--
Section 105 of Public Law 104-164 (110 Stat. 1427) is amended by 
striking ``1996 and 1997'' and inserting ``1997, 1998, and 1999''.
    (e) Conforming Amendments to the NATO Participation Act of 1994.--
Section 203(c) of the NATO Participation Act of 1994 (22 U.S.C. 1928 
note) is amended--
            (1) in paragraph (1), by striking ``, without regard to the 
        restrictions'' and all that follows through ``section)'';
            (2) by striking paragraph (2);

[[Page 112 STAT. 2681-843]]

            (3) in paragraph (6), by striking ``appropriated under the 
        `Nonproliferation and Disarmament Fund' account'' and inserting 
        ``made available for the `Nonproliferation and Disarmament Fund' 
        ''; and
            (4) in paragraph (8)--
                    (A) by striking ``any restrictions in sections 516 
                and 519'' and inserting ``section 516(e)'';
                    (B) by striking ``as amended,''; and
                    (C) by striking ``paragraphs (1) and (2)'' and 
                inserting ``paragraph (1)''; and
            (5) by redesignating paragraphs (3) through (8) as 
        paragraphs (2) through (7), respectively.

SEC. 2704. SENSE OF CONGRESS WITH RESPECT TO THE TREATY ON CONVENTIONAL 
            ARMED FORCES IN EUROPE.

    It is the sense of Congress that no revisions to the Treaty on 
Conventional Armed Forces in Europe will be approved for entry into 
force with respect to the United States that jeopardize fundamental 
United States security interests in Europe or the effectiveness and 
flexibility of NATO as a defensive alliance by--
            (1) extending rights or imposing responsibilities on new 
        NATO members different from those applicable to current NATO 
        members, including rights or responsibilities with respect to 
        the deployment of nuclear weapons and the stationing of troops 
        and equipment from other NATO members;
            (2) limiting the ability of NATO to defend the territory of 
        new NATO members by, for example, restricting the construction 
        of defense infrastructure or limiting the ability of NATO to 
        deploy necessary reinforcements;
            (3) providing any international organization, or any country 
        that is not a member of NATO, with the authority to delay, veto, 
        or otherwise impede deliberations and decisions of the North 
        Atlantic Council or the implementation of such decisions, 
        including deliberations and decisions with respect to the 
        deployment of NATO forces or the admission of additional members 
        to NATO; or
            (4) impeding the development of enhanced relations between 
        NATO and other European countries that do not belong to the 
        Alliance.

SEC. 2705. RESTRICTIONS AND REQUIREMENTS RELATING TO BALLISTIC MISSILE 
            DEFENSE.

    (a) Policy of Section.--This section is enacted in order to 
implement the policy set forth in section 2702(c).
    (b) Restriction on Entry Into Force of ABM/TMD Demarcation 
Agreements.--An ABM/TMD demarcation agreement shall not be binding on 
the United States, and shall not enter into force with respect to the 
United States, unless, after the date of enactment of this Act, that 
agreement is specifically approved with the advice and consent of the 
United States Senate pursuant to Article II, section 2, clause 2 of the 
Constitution.
    (c) Sense of Congress With Respect to Demarcation Agreements.--
            (1) Relationship to multilateralization of abm treaty.--It 
        is the sense of Congress that no ABM/TMD demarcation agreement 
        will be considered for advice and consent to ratification 
        unless, consistent with the certification of the President 
        pursuant to condition (9) of the resolution of

[[Page 112 STAT. 2681-844]]

        ratification of the CFE Flank Document, the President submits 
        for Senate advice and consent to ratification any agreement, 
        arrangement, or understanding that would--
                    (A) add one or more countries as State Parties to 
                the ABM Treaty, or otherwise convert the ABM Treaty from 
                a bilateral treaty to a multilateral treaty; or
                    (B) change the geographic scope or coverage of the 
                ABM Treaty, or otherwise modify the meaning of the term 
                ``national territory'' as used in Article VI and Article 
                IX of the ABM Treaty.
            (2) Preservation of united states theater ballistic missile 
        defense potential.--It is the sense of Congress that no ABM/TMD 
        demarcation agreement that would reduce the capabilities of 
        United States theater missile defense systems, or the numbers or 
        deployment patterns of such systems, will be approved for entry 
        into force with respect to the United States.

     <> (d) Report on Cooperative Projects With 
Russia.--Not later than January 1, 1999, and January 1, 2000, the 
President shall submit to the Committees on International Relations, 
National Security, and Appropriations of the House of Representatives 
and the Committees on Foreign Relations, Armed Services, and 
Appropriations of the Senate a report on cooperative projects with 
Russia in the area of ballistic missile defense, including in the area 
of early warning. Each such report shall include the following:
            (1) Cooperative projects.--A description of all cooperative 
        projects conducted in the area of early warning and ballistic 
        missile defense during the preceding fiscal year and the fiscal 
        year during which the report is submitted.
            (2) Funding.--A description of the funding for such projects 
        during the preceding fiscal year and the year during which the 
        report is submitted and the proposed funding for such projects 
        for the next fiscal year.
            (3) Status of dialogue or discussions.--A description of the 
        status of any dialogue or discussions conducted during the 
        preceding fiscal year between the United States and Russia aimed 
        at exploring the potential for mutual accommodation of 
        outstanding issues between the two nations on matters relating 
        to ballistic missile defense and the ABM Treaty, including the 
        possibility of developing a strategic relationship not based on 
        mutual nuclear threats.

    (e) Definitions.--In this section:
            (1) ABM/TMD demarcation agreement.--The term ``ABM/TMD 
        demarcation agreement'' means any agreement that establishes a 
        demarcation between theater ballistic missile defense systems 
        and strategic antiballistic missile defense systems for purposes 
        of the ABM Treaty.
            (2) ABM treaty.--The term ``ABM Treaty'' means the Treaty 
        Between the United States of America and the Union of Soviet 
        Socialist Republics on the Limitation of Anti-Ballistic Missile 
        Systems, signed at Moscow on May 26, 1972 (23 UST 3435), and 
        includes the Protocols to that Treaty, signed at Moscow on July 
        3, 1974 (27 UST 1645).

[[Page 112 STAT. 2681-845]]

              TITLE XXVIII--OTHER FOREIGN POLICY PROVISIONS

SEC. 2801. REPORTS ON CLAIMS BY UNITED STATES FIRMS AGAINST THE 
            GOVERNMENT OF SAUDI ARABIA.

    (a) In General.--Not later than 90 days after the date of the 
enactment of this Act and every 180 days thereafter, the Secretary of 
State, after consultation with the Secretary of Defense and the 
Secretary of Commerce, shall submit a report to the appropriate 
congressional committees on specific actions taken by the Department of 
State, the Department of Defense, and the Department of Commerce toward 
progress in resolving the commercial disputes between United States 
firms and the Government of Saudi Arabia that are described in the June 
30, 1993, report by the Secretary of Defense pursuant to section 9140(c) 
of the Department of Defense Appropriations Act, 1993 (Public Law 102-
396), including the additional claims noticed by the Department of 
Commerce on page 2 of that report.
    (b) Termination.--Subsection (a) shall cease to have effect on the 
earlier of--
            (1) the date of submission of the third report under that 
        subsection; or
            (2) the date that the Secretary of State, after consultation 
        with the Secretary of Defense and the Secretary of Commerce, 
        certifies in writing to the appropriate congressional committees 
        that the commercial disputes referred to in subsection (a) have 
        been resolved satisfactorily.

SEC. 2802. REPORTS ON DETERMINATIONS UNDER TITLE IV OF THE LIBERTAD ACT.

    (a) Reports Required.--Not later than 30 days after the date of the 
enactment of this Act and every 3 months thereafter during the period 
ending September 30, 1999, the Secretary of State shall submit to the 
appropriate congressional committees a report on the implementation of 
section 401 of the Cuban Liberty and Democratic Solidarity (LIBERTAD) 
Act of 1996 (22 U.S.C. 6091). Each report shall include--
            (1) an unclassified list, by economic sector, of the number 
        of entities then under review pursuant to that section;
            (2) an unclassified list of all entities and a classified 
        list of all individuals that the Secretary of State has 
        determined to be subject to that section;
            (3) an unclassified list of all entities and a classified 
        list of all individuals that the Secretary of State has 
        determined are no longer subject to that section;
            (4) an explanation of the status of the review underway for 
        the cases referred to in paragraph (1); and
            (5) an unclassified explanation of each determination of the 
        Secretary of State under section 401(a) of that Act and each 
        finding of the Secretary under section 401(c) of that Act--
                    (A) since the date of the enactment of this Act, in 
                the case of the first report under this subsection; and
                    (B) in the preceding 3-month period, in the case of 
                each subsequent report.

[[Page 112 STAT. 2681-846]]

    (b) Protection of Identity of Concerned Entities.--In preparing the 
report under subsection (a), the names of entities shall not be 
identified under paragraph (1) or (4).

SEC. 2803. REPORT ON COMPLIANCE WITH THE HAGUE CONVENTION ON 
            INTERNATIONAL CHILD ABDUCTION.

    (a) In General.--Beginning 6 months after the date of the enactment 
of this Act and every 12 months thereafter during the period ending 
September 30, 1999, the Secretary of State shall submit a report to the 
appropriate congressional committees on the compliance with the 
provisions of the Convention on the Civil Aspects of International Child 
Abduction, done at The Hague on October 25, 1980, by the signatory 
countries of the Convention. Each such report shall include the 
following information:
            (1) The number of applications for the return of children 
        submitted by United States citizens to the Central Authority for 
        the United States that remain unresolved more than 18 months 
        after the date of filing.
            (2) A list of the countries to which children in unresolved 
        applications described in paragraph (1) are alleged to have been 
        abducted.
            (3) A list of the countries that have demonstrated a pattern 
        of noncompliance with the obligations of the Convention with 
        respect to applications for the return of children submitted by 
        United States citizens to the Central Authority for the United 
        States.
            (4) Detailed information on each unresolved case described 
        in paragraph (1) and on actions taken by the Department of State 
        to resolve each such case.
            (5) Information on efforts by the Department of State to 
        encourage other countries to become signatories of the 
        Convention.

    (b) Definition.--In this section, the term ``Central Authority for 
the United States'' has the meaning given the term in Article 6 of the 
Convention on the Civil Aspects of International Child Abduction, done 
at The Hague on October 25, 1980.

SEC. 2804. SENSE OF CONGRESS RELATING TO RECOGNITION OF THE ECUMENICAL 
            PATRIARCHATE BY THE GOVERNMENT OF TURKEY.

    It is the sense of Congress that the United States should use its 
influence with the Government of Turkey to suggest that the Government 
of Turkey--
            (1) recognize the Ecumenical Patriarchate and its 
        nonpolitical, religious mission;
            (2) ensure the continued maintenance of the institution's 
        physical security needs, as provided for under Turkish and 
        international law, including the Treaty of Lausanne, the 1968 
        Protocol, the Helsinki Final Act (1975), and the Charter of 
        Paris;
            (3) provide for the proper protection and safety of the 
        Ecumenical Patriarch and Patriarchate personnel; and
            (4) reopen the Ecumenical Patriarchate's Halki Patriarchal 
        School of Theology.

SEC. 2805. REPORT ON RELATIONS WITH VIETNAM.

    In order to provide Congress with the necessary information by which 
to evaluate the relationship between the United States

[[Page 112 STAT. 2681-847]]

and Vietnam, the Secretary of State shall submit a report to the 
appropriate congressional committees, not later than 90 days after the 
date of enactment of this Act and every 180 days thereafter during the 
period ending September 30, 1999, on the extent to which--
            (1) the Government of the Socialist Republic of Vietnam is 
        cooperating with the United States in providing the fullest 
        possible accounting of all unresolved cases of prisoners of war 
        (POWs) or persons missing-in-action (MIAs) through the provision 
        of records and the unilateral and joint recovery and 
        repatriation of American remains;
            (2) the Government of the Socialist Republic of Vietnam has 
        made progress toward the release of all political and religious 
        prisoners, including Catholic, Protestant, and Buddhist clergy;
            (3) the Government of the Socialist Republic of Vietnam is 
        cooperating with requests by the United States to obtain full 
        and free access to persons of humanitarian interest to the 
        United States for interviews under the Orderly Departure (ODP) 
        and Resettlement Opportunities for Vietnamese Refugees (ROVR) 
        programs, and in providing exit visas for such persons;
            (4) the Government of the Socialist Republic of Vietnam has 
        taken vigorous action to end extortion, bribery, and other 
        corrupt practices in connection with such exit visas; and
            (5) the Government of the United States is making vigorous 
        efforts to interview and resettle former reeducation camp 
        victims, their immediate families including unmarried sons and 
        daughters, former United States Government employees, and other 
        persons eligible for the ODP program, and to give such persons 
        the full benefit of all applicable United States laws including 
        sections 599D and 599E of the Foreign Operations, Export 
        Financing, and Related Programs Appropriations Act of 1990 
        (Public Law 101-167).

SEC. 2806. REPORTS AND POLICY CONCERNING HUMAN RIGHTS VIOLATIONS IN 
            LAOS.

    Not later than 180 days after the date of enactment of this Act, the 
Secretary of State shall submit a report to the appropriate 
congressional committees on the allegations of persecution and abuse of 
the Hmong and Laotian refugees who have returned to Laos. The report 
shall include the following:
            (1) A full investigation, including full documentation of 
        individual cases of persecution, of the Lao Government's 
        treatment of Hmong and Laotian refugees who have returned to 
        Laos.
            (2) The steps the Department of State will take to continue 
        to monitor any systematic human rights violations by the 
        Government of Laos.
            (3) The actions which the Department of State will take to 
        seek to ensure the cessation of human rights violations.

SEC. 2807. REPORT ON AN ALLIANCE AGAINST NARCOTICS TRAFFICKING IN THE 
            WESTERN HEMISPHERE.

    (a) Sense of Congress on Discussions for Alliance.--
            (1) Sense of congress.--It is the sense of Congress that the 
        President should discuss with the democratically-elected 
        governments of the Western Hemisphere, the prospect of

[[Page 112 STAT. 2681-848]]

        forming a multilateral alliance to address problems relating to 
        international drug trafficking in the Western Hemisphere.
            (2) Consultations.--In the consultations on the prospect of 
        forming an alliance described in paragraph (1), the President 
        should seek the input of such governments on the possibility of 
        forming one or more structures within the alliance--
                    (A) to develop a regional, multilateral strategy to 
                address the threat posed to nations in the Western 
                Hemisphere by drug trafficking; and
                    (B) to establish a new mechanism for improving 
                multilateral coordination of drug interdiction and drug-
                related law enforcement activities in the Western 
                Hemisphere.

    (b) Report.--
            (1) Requirement.--Not <> later than 60 
        days after the date of enactment of this Act, the President 
        shall submit to Congress a report on the proposal discussed 
        under subsection (a). The report shall include the following:
                    (A) An analysis of the reactions of the governments 
                concerned to the proposal.
                    (B) An assessment of the proposal, including an 
                evaluation of the feasibility and advisability of 
                forming the alliance.
                    (C) A determination in light of the analysis and 
                assessment whether or not the formation of the alliance 
                is in the national interests of the United States.
                    (D) If the President determines that the formation 
                of the alliance is in the national interests of the 
                United States, a plan for encouraging and facilitating 
                the formation of the alliance.
                    (E) If the President determines that the formation 
                of the alliance is not in the national interests of the 
                United States, an alternative proposal to improve 
                significantly efforts against the threats posed by 
                narcotics trafficking in the Western Hemisphere, 
                including an explanation of how the alternative proposal 
                will--
                          (i) improve upon current cooperation and 
                      coordination of counter-drug efforts among nations 
                      in the Western Hemisphere;
                          (ii) provide for the allocation of the 
                      resources required to make significant progress in 
                      disrupting and disbanding the criminal 
                      organizations responsible for the trafficking of 
                      illegal drugs in the Western Hemisphere; and
                          (iii) differ from and improve upon past 
                      strategies adopted by the United States Government 
                      which have failed to make sufficient progress 
                      against the trafficking of illegal drugs in the 
                      Western Hemisphere.
            (2) Unclassified form.--The report under paragraph (1) shall 
        be submitted in unclassified form, but may contain a classified 
        annex.

SEC. 2808. CONGRESSIONAL STATEMENT REGARDING THE ACCESSION OF TAIWAN TO 
            THE WORLD TRADE ORGANIZATION.

    (a) Findings.--The Congress makes the following findings:
            (1) The people of the United States and the people of the 
        Republic of China on Taiwan have long enjoyed extensive ties.

[[Page 112 STAT. 2681-849]]

            (2) Taiwan is currently the 8th largest trading partner of 
        the United States.
            (3) The executive branch of Government has committed 
        publicly to support Taiwan's bid to join the World Trade 
        Organization and has declared that the United States will not 
        oppose this bid solely on the grounds that the People's Republic 
        of China, which also seeks membership in the World Trade 
        Organization, is not yet eligible because of its unacceptable 
        trade practices.
            (4) The United States and Taiwan have concluded discussions 
        on a variety of outstanding trade issues that remain unresolved 
        with the People's Republic of China and that are necessary for 
        the United States to support Taiwan's membership in the World 
        Trade Organization.
            (5) The reversion of control over Hong Kong--a member of the 
        World Trade Organization--to the People's Republic of China in 
        many respects affords to the People's Republic of China the 
        practical benefit of membership in the World Trade Organization 
        for a substantial portion of its trade in goods despite the fact 
        that the trade practices of the People's Republic of China 
        currently fall far short of what the United States expects for 
        membership in the World Trade Organization.
            (6) The executive branch of Government has announced its 
        interest in the admission of the People's Republic of China to 
        the World Trade Organization; the fundamental sense of fairness 
        of the people of the United States warrants the United States 
        Government's support for Taiwan's relatively more meritorious 
        application for membership in the World Trade Organization.
            (7) Despite having made significant progress in negotiations 
        for its accession to the World Trade Organization, Taiwan has 
        yet to offer acceptable terms of accession in agricultural and 
        certain other market sectors.
            (8) It is in the economic interest of United States 
        consumers and exporters for Taiwan to complete those 
        requirements for accession to the World Trade Organization at 
        the earliest possible moment.

    (b) Congressional Statement.--The Congress favors public support by 
officials of the Department of State for the accession of Taiwan to the 
World Trade Organization.

SEC. 2809. PROGRAMS OR PROJECTS OF THE INTERNATIONAL ATOMIC ENERGY 
            AGENCY IN CUBA.

    (a) Withholding of United States Proportional Share of Assistance.--
Section 307(c) of the Foreign Assistance Act of 1961 (22 U.S.C. 2227(c)) 
is amended--
            (1) by striking ``The limitations'' and inserting ``(1) 
        Subject to paragraph (2), the limitations''; and
             <> (2) by adding at the end the 
        following:

    ``(2)(A) Except as provided in subparagraph (B), with respect to 
funds authorized to be appropriated by this chapter and available for 
the International Atomic Energy Agency, the limitations of subsection 
(a) shall apply to programs or projects of such Agency in Cuba.
    ``(B)(i) Subparagraph (A) shall not apply with respect to programs 
or projects of the International Atomic Energy Agency that provide for 
the discontinuation, dismantling, or safety inspection

[[Page 112 STAT. 2681-850]]

of nuclear facilities or related materials, or for inspections and 
similar activities designed to prevent the development of nuclear 
weapons by a country described in subsection (a).
    ``(ii) Clause (i) shall not apply with respect to the Juragua 
Nuclear Power Plant near Cienfuegos, Cuba, or the Pedro Pi Nuclear 
Research Center unless Cuba--
            ``(I) ratifies the Treaty on the Non-Proliferation of 
        Nuclear Weapons (21 UST 483) or the Treaty for the Prohibition 
        of Nuclear Weapons in Latin America (commonly known as the 
        Treaty of Tlatelolco);
            ``(II) negotiates full-scope safeguards of the International 
        Atomic Energy Agency not later than two years after ratification 
        by Cuba of such Treaty; and
            ``(III) incorporates internationally accepted nuclear safety 
        standards.''.

    (b) Opposition to <> Certain Programs or 
Projects.--The Secretary of State shall direct the United States 
representative to the International Atomic Energy Agency to oppose the 
following:
            (1) Technical assistance programs or projects of the Agency 
        at the Juragua Nuclear Power Plant near Cienfuegos, Cuba, and at 
        the Pedro Pi Nuclear Research Center.
            (2) Any other program or project of the Agency in Cuba that 
        is, or could become, a threat to the security of the United 
        States.

     <> (c) Reporting Requirements.--
            (1) Request for iaea reports.--The Secretary of State shall 
        direct the United States representative to the International 
        Atomic Energy Agency to request the Director-General of the 
        Agency to submit to the United States all reports prepared with 
        respect to all programs or projects of the Agency that are of 
        concern to the United States, including the programs or projects 
        described in subsection (b).
            (2) Annual reports to the congress.--Not later than 180 days 
        after the date of the enactment of this Act, and on an annual 
        basis thereafter, the Secretary of State, in consultation with 
        the United States representative to the International Atomic 
        Energy Agency, shall prepare and submit to the Congress a report 
        containing a description of all programs or projects of the 
        Agency in each country described in section 307(a) of the 
        Foreign Assistance Act of 1961 (22 U.S.C. 2227(a)).

SEC. 2810. LIMITATION ON ASSISTANCE TO COUNTRIES AIDING CUBA NUCLEAR 
            DEVELOPMENT.

    (a) In General.--Section 620 of the Foreign Assistance Act of 1961 
(22 U.S.C. 2370), as amended by this division, is further amended by 
adding at the end the following:
    ``(y)(1) Except as provided in paragraph (2), the President shall 
withhold from amounts made available under this Act or any other Act and 
allocated for a country for a fiscal year an amount equal to the 
aggregate value of nuclear fuel and related assistance and credits 
provided by that country, or any entity of that country, to Cuba during 
the preceding fiscal year.
    ``(2) The requirement to withhold assistance for a country for a 
fiscal year under paragraph (1) shall not apply if Cuba--
            ``(A) has ratified the Treaty on the Non-Proliferation of 
        Nuclear Weapons (21 UST 483) or the Treaty of Tlatelelco,

[[Page 112 STAT. 2681-851]]

        and Cuba is in compliance with the requirements of either such 
        Treaty;
            ``(B) has negotiated and is in compliance with full-scope 
        safeguards of the International Atomic Energy Agency not later 
        than two years after ratification by Cuba of such Treaty; and
            ``(C) incorporates and is in compliance with internationally 
        accepted nuclear safety standards.

    ``(3) The Secretary of State shall prepare and submit to the 
Congress each year a report containing a description of the amount of 
nuclear fuel and related assistance and credits provided by any country, 
or any entity of a country, to Cuba during the preceding year, including 
the terms of each transfer of such fuel, assistance, or credits.''.
     <> (b) Effective Date.--Section 620(y) of 
the Foreign Assistance Act of 1961, as added by subsection (a), shall 
apply with respect to assistance provided in fiscal years beginning on 
or after the date of the enactment of this Act.

SEC. 2811. INTERNATIONAL FUND FOR IRELAND.

    (a) Purposes.--Section 2(b) of the Anglo-Irish Agreement Support Act 
of 1986 (Public Law 99-415; 100 Stat. 947) is amended by adding at the 
end the following new sentences: ``United States contributions should be 
used in a manner that effectively increases employment opportunities in 
communities with rates of unemployment higher than the local or urban 
average of unemployment in Northern Ireland. In addition, such 
contributions should be used to benefit individuals residing in such 
communities.''.
    (b) Conditions and Understandings.--Section 5(a) of such Act is 
amended--
            (1) in the first sentence--
                    (A) by striking ``The United States'' and inserting 
                the following:
            ``(1) In general.--The United States'';
                    (B) by striking ``in this Act may be used'' and 
                inserting the following: ``in this Act--
                    ``(A) may be used'';
                    (C) by striking the period and inserting ``; and''; 
                and
                    (D) by adding at the end the following:
                    ``(B) should be provided to individuals or entities 
                in Northern Ireland which employ practices consistent 
                with the principles of economic justice.''; and
            (2) in the second sentence, by striking ``The restrictions'' 
        and inserting the following:
            ``(2) Additional requirements.--The restrictions''.

    (c) Prior Certifications.--Section 5(c)(2) of such Act is amended--
            (1) in subparagraph (A), by striking ``in accordance with 
        the principle of equality'' and all that follows and inserting 
        ``to individuals and entities whose practices are consistent 
        with principles of economic justice; and''; and
            (2) in subparagraph (B), by inserting before the period at 
        the end the following: ``and will create employment 
        opportunities in regions and communities of Northern Ireland 
        suffering from high rates of unemployment''.

    (d) Annual Reports.--Section 6 of such Act is amended--
            (1) in paragraph (2), by striking ``and'' at the end;

[[Page 112 STAT. 2681-852]]

            (2) in paragraph (3), by striking the period and inserting 
        ``; and''; and
            (3) by adding at the end the following new paragraph:
            ``(4) the extent to which the practices of each individual 
        or entity receiving assistance from United States contributions 
        to the International Fund has been consistent with the 
        principles of economic justice.''.

    (e) Requirements Relating to Funds.--Section 7 of such Act is 
amended by adding at the end the following:
    ``(c) Prohibition.--Nothing included herein shall require quotas or 
reverse discrimination or mandate their use.''.
    (f) Definitions.--Section 8 of such Act is amended--
            (1) in paragraph (1), by striking ``and'' at the end;
            (2) in paragraph (2), by striking the period at the end and 
        inserting ``; and''; and
            (3) by adding at the end the following new paragraph:
            ``(3) the term `principles of economic justice' means the 
        following principles:
                    ``(A) Increasing the representation of individuals 
                from underrepresented religious groups in the workforce, 
                including managerial, supervisory, administrative, 
                clerical, and technical jobs.
                    ``(B) Providing adequate security for the protection 
                of minority employees at the workplace.
                    ``(C) Banning provocative sectarian or political 
                emblems from the workplace.
                    ``(D) Providing that all job openings be advertised 
                publicly and providing that special recruitment efforts 
                be made to attract applicants from underrepresented 
                religious groups.
                    ``(E) Providing that layoff, recall, and termination 
                procedures do not favor a particular religious group.
                    ``(F) Abolishing job reservations, apprenticeship 
                restrictions, and differential employment criteria which 
                discriminate on the basis of religion.
                    ``(G) Providing for the development of training 
                programs that will prepare substantial numbers of 
                minority employees for skilled jobs, including the 
                expansion of existing programs and the creation of new 
                programs to train, upgrade, and improve the skills of 
                minority employees.
                    ``(H) Establishing procedures to assess, identify, 
                and actively recruit minority employees with the 
                potential for further advancement.
                    ``(I) Providing for the appointment of a senior 
                management staff member to be responsible for the 
                employment efforts of the entity and, within a 
                reasonable period of time, the implementation of the 
                principles described in subparagraphs (A) through 
                (H).''.

SEC. 2812. SUPPORT FOR DEMOCRATIC OPPOSITION IN IRAQ.

    (a) Assistance for Justice in Iraq.--There are authorized to be 
appropriated for fiscal year 1998 $3,000,000 for assistance to an 
international commission to establish an international record for the 
criminal culpability of Saddam Hussein and other Iraqi officials and for 
an international criminal tribunal established for the purpose of 
indicting, prosecuting, and punishing Saddam

[[Page 112 STAT. 2681-853]]

 Hussein and other Iraqi officials responsible for crimes against 
humanity, genocide, and other violations of international law.
    (b) Assistance to the Democratic Opposition in Iraq.--There are 
authorized to be appropriated for fiscal year 1998 $15,000,000 to 
provide support for democratic opposition forces in Iraq, of which--
            (1) not more than $10,000,000 shall be for assistance to the 
        democratic opposition, including leadership organization, 
        training political cadre, maintaining offices, disseminating 
        information, and developing and implementing agreements among 
        opposition elements; and
            (2) not more than $5,000,000 of the funds made available 
        under this subsection shall be available only for grants to RFE/
        RL, Incorporated, for surrogate radio broadcasting by RFE/RL, 
        Incorporated, to the Iraqi people in the Arabic language, such 
        broadcasts to be designated as ``Radio Free Iraq''.

    (c) Assistance for Humanitarian Relief and Reconstruction.--There 
are authorized to be appropriated for fiscal year 1998 $20,000,000 for 
the relief, rehabilitation, and reconstruction of people living in Iraq, 
and communities located in Iraq, who are not under the control of the 
Saddam Hussein regime.
    (d) Availability.--Amounts authorized to be appropriated by this 
section shall be provided in addition to amounts otherwise made 
available and shall remain available until expended.
    (e) Notification.--All assistance provided pursuant to this section 
shall be notified to Congress in accordance with the procedures 
applicable to reprogramming notifications under section 634A of the 
Foreign Assistance Act of 1961.
    (f) Relation to Other Laws.--Funds made available to carry out the 
provisions of this section may be made available notwithstanding any 
other provision of law.
    (g) Report.--Not later than 45 days after the date of enactment of 
this Act, the Secretary of State and the Broadcasting Board of Governors 
of the United States Information Agency shall submit a detailed report 
to Congress describing--
            (1) the costs, implementation, and plans for the 
        establishment of an international war crimes tribunal described 
        in subsection (a);
            (2) the establishment of a political assistance program, and 
        the surrogate broadcasting service, as described in subsection 
        (b); and
            (3) the humanitarian assistance program described in 
        subsection (c).

SEC. 2813. DEVELOPMENT OF DEMOCRACY IN THE REPUBLIC OF SERBIA.

    (a) Findings.--Congress makes the following findings:
            (1) The United States stands as the beacon of democracy and 
        freedom in the world.
            (2) A stable and democratic Republic of Serbia is important 
        to the interests of the United States, the international 
        community, and to peace in the Balkans.
            (3) Democratic forces in the Republic of Serbia are 
        beginning to emerge, notwithstanding the efforts of Europe's 
        longest-standing communist dictator, Slobodan Milosevic.
            (4) The Serbian authorities have sought to continue to 
        hinder the growth of free and independent news media in

[[Page 112 STAT. 2681-854]]

        the Republic of Serbia, in particular the broadcast news media, 
        and have harassed journalists performing their professional 
        duties.
            (5) Under Slobodan Milosevic, the political opposition in 
        Serbia has been denied free, fair, and equal opportunity to 
        participate in the democratic process.

    (b) Sense of Congress.--It is the sense of Congress that--
            (1) the United States, the international community, 
        nongovernmental organizations, and the private sector should 
        continue to promote the building of democratic institutions and 
        civic society in the Republic of Serbia, help strengthen the 
        independent news media, and press for the Government of the 
        Republic of Serbia to respect the rule of law; and
            (2) the normalization of relations between the ``Federal 
        Republic of Yugoslavia'' (Serbia and Montenegro) and the United 
        States requires, among other things, that President Milosevic 
        and the leadership of Serbia--
                    (A) promote the building of democratic institutions, 
                including strengthening the independent news media and 
                respecting the rule of law;
                    (B) promote the respect for human rights throughout 
                the ``Federal Republic of Yugoslavia'' (Serbia and 
                Montenegro); and
                    (C) promote and encourage free, fair, and equal 
                conditions for the democratic opposition in Serbia.

   DIVISION--H <> 

SECTION 1. SHORT TITLE.

    This Division may be cited as the ``Depository Institution-GSE 
Affiliation Act of 1998''.

SEC. 2. CERTAIN AFFILIATION PERMITTED.

    Section 18(s) of the Federal Deposit Insurance Act (12 U.S.C. 
1828(s)) is amended--
            (1) by redesignating paragraph (4) as paragraph (5); and
            (2) by inserting after paragraph (3) the following new 
        paragraph:
            ``(4) Student loans.--
                    ``(A) In general.--This subsection shall not apply 
                to any arrangement between the Holding Company (or any 
                subsidiary of the Holding Company other than the Student 
                Loan Marketing Association) and a depository 
                institution, if the Secretary approves the affiliation 
                and determines that--
                          ``(i) the reorganization of such Association 
                      in accordance with section 440 of the Higher 
                      Education Act of 1965, as amended, will not be 
                      adversely affected by the arrangement;
                          ``(ii) the dissolution of the Association 
                      pursuant to such reorganization will occur before 
                      the end of the 2-year period beginning on the date 
                      on which such arrangement is consummated or on 
                      such earlier date as the Secretary deems 
                      appropriate: Provided, That the Secretary may 
                      extend this period for not more than 1 year at a 
                      time if the Secretary determines that such 
                      extension is in the public interest and is

[[Page 112 STAT. 2681-855]]

                      appropriate to achieve an orderly reorganization 
                      of the Association or to prevent market 
                      disruptions in connection with such 
                      reorganization, but no such extensions shall in 
                      the aggregate exceed 2 years;
                          ``(iii) the Association will not purchase or 
                      extend credit to, or guarantee or provide credit 
                      enhancement to, any obligation of the depository 
                      institution;
                          ``(iv) the operations of the Association will 
                      be separate from the operations of the depository 
                      institution; and
                          ``(v) until the `dissolution date' (as that 
                      term is defined in section 440 of the Higher 
                      Education Act of 1965, as amended) has occurred, 
                      such depository institution will not use the trade 
                      name or service mark `Sallie Mae' in connection 
                      with any product or service it offers if the 
                      appropriate Federal banking agency for such 
                      depository institution determines that--
                                    ``(I) the depository institution is 
                                the only institution offering such 
                                product or service using the `Sallie 
                                Mae' name; and
                                    ``(II) such use would result in the 
                                depository institution having an unfair 
                                competitive advantage over other 
                                depository institutions.
                    ``(B) Terms and conditions.--In approving any 
                arrangement referred to in subparagraph (A) the 
                Secretary may impose any terms and conditions on such an 
                arrangement that the Secretary considers appropriate, 
                including--
                          ``(i) imposing additional restrictions on the 
                      issuance of debt obligations by the Association; 
                      or
                          ``(ii) restricting the use of proceeds from 
                      the issuance of such debt.
                    ``(C) Additional limitations.--In the event that the 
                Holding Company (or any subsidiary of the Holding 
                Company) enters into such an arrangement, the value of 
                the Association's `investment portfolio' shall not at 
                any time exceed the lesser of--
                          ``(i) the value of such portfolio on the date 
                      of the enactment of this subsection; or
                          ``(ii) the value of such portfolio on the date 
                      such an arrangement is consummated. The term 
                      `investment portfolio' shall mean all investments 
                      shown on the consolidated balance sheet of the 
                      Association other than--
                                    ``(I) any instrument or assets 
                                described in section 439(d) of the 
                                Higher Education Act of 1965, as 
                                amended;
                                    ``(II) any direct noncallable 
                                obligations of the United States or any 
                                agency thereof for which the full faith 
                                and credit of the United States is 
                                pledged; or
                                    ``(III) cash or cash equivalents.
                    ``(D) Enforcement.--The terms and conditions imposed 
                under subparagraph (B) may be enforced by the Secretary 
                in accordance with section 440 of the Higher Education 
                Act of 1965.
                    ``(E) Definitions.--For purposes of this paragraph, 
                the following definition shall apply--

[[Page 112 STAT. 2681-856]]

                          ``(i) Association; holding company.--
                      Notwithstanding any provision in section 3, the 
                      terms `Association' and `Holding Company' have the 
                      same meanings as in section 440(i) of the Higher 
                      Education Act of 1965.
                          ``(ii) Secretary.--The term `Secretary' means 
                      the Secretary of the Treasury.''.

   DIVISION <> I--CHEMICAL WEAPONS CONVENTION

SECTION 1. SHORT TITLE.

      This Division may be cited as the ``Chemical Weapons Convention 
Implementation Act of 1998''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Definitions.

                       TITLE I--GENERAL PROVISIONS

Sec. 101. Designation of United States National Authority.
Sec. 102. No abridgement of constitutional rights.
Sec. 103. Civil liability of the United States.

TITLE II--PENALTIES FOR UNLAWFUL ACTIVITIES SUBJECT TO THE JURISDICTION 
                          OF THE UNITED STATES

                Subtitle A--Criminal and Civil Penalties

Sec. 201. Criminal and civil provisions.

              Subtitle B--Revocations of Export Privileges

Sec. 211. Revocations of export privileges.

                         TITLE III--INSPECTIONS

Sec. 301. Definitions in the title.
Sec. 302. Facility agreements.
Sec. 303. Authority to conduct inspections.
Sec. 304. Procedures for inspections.
Sec. 305. Warrants.
Sec. 306. Prohibited acts relating to inspections.
Sec. 307. National security exception.
Sec. 308. Protection of constitutional rights of contractors.
Sec. 309. Annual report on inspections.
Sec. 310. United States assistance in inspections at private facilities.

                            TITLE IV--REPORTS

Sec. 401. Reports required by the United States National Authority.
Sec. 402. Prohibition relating to low concentrations of schedule 2 and 3 
           chemicals.
Sec. 403. Prohibition relating to unscheduled discrete organic chemicals 
           and coincidental byproducts in waste streams.
Sec. 404. Confidentiality of information.
Sec. 405. Recordkeeping violations.

                          TITLE V--ENFORCEMENT

Sec. 501. Penalties.
Sec. 502. Specific enforcement.
Sec. 503. Expedited judicial review.

                   TITLE VI--MISCELLANEOUS PROVISIONS

Sec. 601. Repeal.
Sec. 602. Prohibition.
Sec. 603. Bankruptcy actions.

SEC. 3. <> DEFINITIONS.
      In this Act:

[[Page 112 STAT. 2681-857]]

            (1) Chemical weapon.--The term ``chemical weapon'' means the 
        following, together or separately:
                    (A) A toxic chemical and its precursors, except 
                where intended for a purpose not prohibited under this 
                Act as long as the type and quantity is consistent with 
                such a purpose.
                    (B) A munition or device, specifically designed to 
                cause death or other harm through toxic properties of 
                those toxic chemicals specified in subparagraph (A), 
                which would be released as a result of the employment of 
                such munition or device.
                    (C) Any equipment specifically designed for use 
                directly in connection with the employment of munitions 
                or devices specified in subparagraph (B).
            (2) Chemical weapons convention; convention.--The terms 
        ``Chemical Weapons Convention'' and ``Convention'' mean the 
        Convention on the Prohibition of the Development, Production, 
        Stockpiling and Use of Chemical Weapons and on Their 
        Destruction, opened for signature on January 13, 1993.
            (3) Key component of a binary or multicomponent chemical 
        system.--The term ``key component of a binary or multicomponent 
        chemical system'' means the precursor which plays the most 
        important role in determining the toxic properties of the final 
        product and reacts rapidly with other chemicals in the binary or 
        multicomponent system.
            (4) National of the united states.--The term ``national of 
        the United States'' has the same meaning given such term in 
        section 101(a)(22) of the Immigration and Nationality Act (8 
        U.S.C. 1101(a)(22)).
            (5) Organization.--The term ``Organization'' means the 
        Organization for the Prohibition of Chemical Weapons.
            (6) Person.--The term ``person'', except as otherwise 
        provided, means any individual, corporation, partnership, firm, 
        association, trust, estate, public or private institution, any 
        State or any political subdivision thereof, or any political 
        entity within a State, any foreign government or nation or any 
        agency, instrumentality or political subdivision of any such 
        government or nation, or other entity located in the United 
        States.
            (7) Precursor.--
                    (A) In general.--The term ``precursor'' means any 
                chemical reactant which takes part at any stage in the 
                production by whatever method of a toxic chemical. The 
                term includes any key component of a binary or 
                multicomponent chemical system.
                    (B) List of precursors.--Precursors which have been 
                identified for the application of verification measures 
                under Article VI of the Convention are listed in 
                schedules contained in the Annex on Chemicals of the 
                Chemical Weapons Convention.
            (8) Purposes not prohibited by this act.--The term 
        ``purposes not prohibited by this Act'' means the following:
                    (A) Peaceful purposes.--Any peaceful purpose related 
                to an industrial, agricultural, research, medical, or 
                pharmaceutical activity or other activity.
                    (B) Protective purposes.--Any purpose directly 
                related to protection against toxic chemicals and to 
                protection against chemical weapons.

[[Page 112 STAT. 2681-858]]

                    (C) Unrelated military purposes.--Any military 
                purpose of the United States that is not connected with 
                the use of a chemical weapon and that is not dependent 
                on the use of the toxic or poisonous properties of the 
                chemical weapon to cause death or other harm.
                    (D) Law enforcement purposes.--Any law enforcement 
                purpose, including any domestic riot control purpose and 
                including imposition of capital punishment.
            (9) Technical secretariat.--The term ``Technical 
        Secretariat'' means the Technical Secretariat of the 
        Organization for the Prohibition of Chemical Weapons established 
        by the Chemical Weapons Convention.
            (10) Schedule 1 chemical agent.--The term `Schedule 1 
        chemical agent' means any of the following, together or 
        separately:
                    (A) O-Alkyl (<ls-thn-eq>C<INF>10</INF>, incl. 
                cycloalkyl) alkyl
                          (Me, Et, n-Pr or i-Pr)-phosphonofluoridates
                          (e.g. Sarin: O-Isopropyl 
                      methylphosphonofluoridate Soman: O-Pinacolyl 
                      methylphosphonofluoridate).
                    (B) O-Alkyl (<ls-thn-eq>C<INF>10</INF>, incl. 
                cycloalkyl) N,N-dialkyl
                          (Me, Et, n-Pr or i-Pr)-phosphoramidocyanidates
                          (e.g. Tabun: O-Ethyl N,N-dimethyl 
                      phosphoramidocyanidate).
                    (C) O-Alkyl (H or <ls-thn-eq>C<INF>10</INF>, incl. 
                cycloalkyl) S-2-dialkyl
                          (Me, Et, n-Pr or i-Pr)-aminoethyl alkyl
                          (Me, Et, n-Pr or i-Pr) phosphonothiolates and 
                      corresponding alkylated or protonated salts
                          (e.g. VX: O-Ethyl S-2-diisopropylaminoethyl 
                      methyl phosphonothiolate).
                    (D) Sulfur mustards:
                          2-Chloroethylchloromethylsulfide
                          Mustard gas: (Bis(2-chloroethyl)sulfide
                          Bis(2-chloroethylthio)methane
                          Sesquimustard: 1,2-Bis(2-
                      chloroethylthio)ethane
                          1,3-Bis(2-chloroethylthio)-n-propane
                          1,4-Bis(2-chloroethylthio)-n-butane
                          1,5-Bis(2-chloroethylthio)-n-pentane
                          Bis(2-chloroethylthiomethyl)ether
                          O-Mustard: Bis(2-chloroethylthioethyl)ether.
                    (E) Lewisites:
                          Lewisite 1: 2-Chlorovinyldichloroarsine
                          Lewisite 2: Bis(2-chlorovinyl)chloroarsine
                          Lewisite 3: Tris (2-clorovinyl)arsine.
                    (F) Nitrogen mustards:
                          HN1: Bis(2-chloroethyl)ethylamine
                          HN2: Bis(2-chloroethyl)methylamine
                          HN3: Tris(2-chloroethyl)amine.
                    (G) Saxitoxin.
                    (H) Ricin.
                    (I) Alkyl (Me, Et, n-Pr or i-Pr) 
                phosphonyldifluorides
                          e.g. DF: Methylphosphonyldifluoride.
                    (J) O-Alkyl (H or >C<INF>10</INF>, incl. 
                cycloalkyl)O-2-dialkyl
                          (Me, Et, n-Pr or i-Pr)-aminoethyl alkyl
                          (Me, Et, n-Pr or i-Pr) phosphonites and 
                      corresponding alkylated or protonated salts
      e.g. QL: O-Ethyl O-2-diisopropylaminoethyl methylphosphonite.
      (K) Chlorosarin: O-Isopropyl methylphosphonochloridate.

[[Page 112 STAT. 2681-859]]

      (L) Chlorosoman: O-Pinacolyl methylphosphonochloridate.
      (11) Schedule 2 chemical agent.--The term `Schedule 2 chemical 
agent' means the following, together or separately:
      (A) Amiton: O,O-Diethyl S-[2-(diethylamino)ethyl]
      phosphorothiolate and corresponding alkylated or protonated salts.
      (B) PFIB: 1,1,3,3,3-Pentafluoro-2-(trifluoromethyl)-1-propene.
      (C) BZ: 3-Quinuclidinyl benzilate
      (D) Chemicals, except for those listed in Schedule 1, containing a 
phosphorus atom to which is bonded one methyl, ethyl or propyl (normal 
or iso) group but not further carbon atoms,
      e.g. Methylphosphonyl dichloride Dimethyl methylphosphonate
      Exemption: Fonofos: O-Ethyl S-phenyl ethylphosphonothiolothionate.
      (E) N,N-Dialkyl (Me, Et, n-Pr or i-Pr) phosphoramidic dihalides.
      (F) Dialkyl (Me, Et, n-Pr or i-Pr) N,N-dialkyl (Me, Et, n-Pr or i-
Pr)-phosphoramidates.
      (G) arsenic trichloride.
      (H) 2,2-Diphenyl-2-hydroxyacetic acid.
      (I) Quinuclidine-3-ol.
      (J) N,N-Dialkyl (Me, Et, n-Pr or i-Pr) aminoethyl-2-chlorides and 
corresponding protonated salts.
      (K) N,N-Dialkyl (Me, Et, n-Pr or i-Pr) aminoethane-2-ols and 
corresponding protonated salts
      Exemptions: N,N-Dimethylaminoethanol and corresponding protonated 
salts N,N-Diethylaminoethanol and corresponding protonated salts.
      (L) N,N-Dialkyl (Me, Et, n-Pr or i-Pr) aminoethane-2-thiols and 
corresponding protonated salts.
      (M) Thiodiglycol: Bis(2-hydroxyethyl)sulfide.
      (N) Pinacolyl alcohol: 3,3-Dimethylbutane-2-ol.
      (12) Schedule 3 chemical agent.--The term `Schedule 3 chemical 
agent' means any of the following, together or separately:
      (A) Phosgene: carbonyl dichloride.
      (B) Cyanogen chloride.
      (C) Hydrogen cyanide.
      (D) Chloropicrin: trichloronitromethane.
      (E) Phosphorous oxychloride.
      (F) Phosphorous trichloride.
      (G) Phosphorous pentachloride.
      (H) Trimethyl phosphite.
      (I) Triethyl phosphite.
      (J) Dimethyl phosphite.
      (K) Diethyl phosphite.
      (L) Sulfur monochloride.
      (M) Sulfur dichloride.
      (N) Thionyl chloride.
      (O) Ethyldiethanolamine.
      (P) Methyldiethanolamine.
      (Q) Triethanolamine.
      (13) Toxic chemical.--
      (A) In general.--The term ``toxic chemical'' means any chemical 
which through its chemical action on life processes can cause death, 
temporary incapacitation or permanent harm to humans or animals. The 
term includes all such chemicals, regardless of their origin or of their 
method of production, and regardless of whether they are produced in 
facilities, in munitions or elsewhere.

[[Page 112 STAT. 2681-860]]

                    (B) List of toxic chemicals.--Toxic chemicals which 
                have been identified for the application of verification 
                measures under Article VI of the Convention are listed 
                in schedules contained in the Annex on Chemicals of the 
                Chemical Weapons Convention.
            (14) United states.--The term ``United States'' means the 
        several States of the United States, the District of Columbia, 
        and the commonwealths, territories, and possessions of the 
        United States and includes all places under the jurisdiction or 
        control of the United States, including--
                    (A) any of the places within the provisions of 
                paragraph (41) of section 40102 of title 49, United 
                States Code;
                    (B) any civil aircraft of the United States or 
                public aircraft, as such terms are defined in paragraphs 
                (17) and (37), respectively, of section 40102 of title 
                49, United States Code; and
                    (C) any vessel of the United States, as such term is 
                defined in section 3(b) of the Maritime Drug Enforcement 
                Act, as amended (46 U.S.C., App. sec. 1903(b)).
            (15) Unscheduled discrete organic chemical.--The term 
        ``unscheduled discrete organic chemical'' means any chemical not 
        listed on any schedule contained in the Annex on Chemicals of 
        the Convention that belongs to the class of chemical compounds 
        consisting of all compounds of carbon, except for its oxides, 
        sulfides, and metal carbonates.

                       TITLE I--GENERAL PROVISIONS

SEC. 101. <> DESIGNATION OF UNITED STATES NATIONAL 
            AUTHORITY.
      (a) Designation.--Pursuant to paragraph 4 of Article VII of the 
Chemical Weapons Convention, the President shall designate the 
Department of State to be the United States National Authority.
      (b) Purposes.--The United States National Authority shall--
            (1) serve as the national focal point for effective liaison 
        with the Organization for the Prohibition of Chemical Weapons 
        and other States Parties to the Convention; and
            (2) implement the provisions of this Act in coordination 
        with an interagency group designated by the President consisting 
        of the Secretary of Commerce, Secretary of Defense, Secretary of 
        Energy, the Attorney General, and the heads of agencies 
        considered necessary or advisable by the President.
      (c) Director.--The Secretary of State shall serve as the Director 
of the United States National Authority.
      (d) Powers.--The Director may utilize the administrative 
authorities otherwise available to the Secretary of State in carrying 
out the responsibilities of the Director set forth in this Act.
      (e) Implementation.--The President is authorized to implement and 
carry out the provisions of this Act and the Convention and shall 
designate through Executive order which agencies of the United States 
shall issue, amend, or revise the regulations in order to implement this 
Act and the provisions of the Convention. The Director of the United 
States National Authority shall report to the Congress on the 
regulations that have been issued, implemented, or revised pursuant to 
this section.

[[Page 112 STAT. 2681-861]]

SEC. 102. NO <> ABRIDGEMENT OF CONSTITUTIONAL 
            RIGHTS.
      No person may be required, as a condition for entering into a 
contract with the United States or as a condition for receiving any 
benefit from the United States, to waive any right under the 
Constitution for any purpose related to this Act or the Convention.

SEC. 103. <> CIVIL LIABILITY OF THE UNITED STATES.

    (a) Claims for Taking of Property.--
            (1) Jurisdiction of courts of the united states.--
                    (A) United states court of federal claims.--The 
                United States Court of Federal Claims shall, subject to 
                subparagraph (B), have jurisdiction of any civil action 
                or claim against the United States for any taking of 
                property without just compensation that occurs by reason 
                of the action of any officer or employee of the 
                Organization for the Prohibition of Chemical Weapons, 
                including any member of an inspection team of the 
                Technical Secretariat, or by reason of the action of any 
                officer or employee of the United States pursuant to 
                this Act or the Convention. For purposes of this 
                subsection, action taken pursuant to or under the color 
                of this Act or the Convention shall be deemed to be 
                action taken by the United States for a public purpose.
                    (B) District courts.--The district courts of the 
                United States shall have original jurisdiction, 
                concurrent with the United States Court of Federal 
                Claims, of any civil action or claim described in 
                subparagraph (A) that does not exceed $10,000.
            (2) Notification.--Any person intending to bring a civil 
        action pursuant to paragraph (1) shall notify the United States 
        National Authority of that intent at least one year before 
        filing the claim in the United States Court of Federal Claims. 
        Action on any claim filed during that one-year period shall be 
        stayed. The one-year period following the notification shall not 
        be counted for purposes of any law limiting the period within 
        which the civil action may be commenced.
            (3) Initial steps by united states government to seek 
        remedies.--During the period between a notification pursuant to 
        paragraph (2) and the filing of a claim covered by the 
        notification in the United States Court of Federal Claims, the 
        United States National Authority shall pursue all diplomatic and 
        other remedies that the United States National Authority 
        considers necessary and appropriate to seek redress for the 
        claim including, but not limited to, the remedies provided for 
        in the Convention and under this Act.
            (4) Burden of proof.--In any civil action under paragraph 
        (1), the plaintiff shall have the burden to establish a prima 
        facie case that, due to acts or omissions of any official of the 
        Organization or any member of an inspection team of the 
        Technical Secretariat taken under the color of the Convention, 
        proprietary information of the plaintiff has been divulged or 
        taken without authorization. If the United States Court of 
        Federal Claims finds that the plaintiff has demonstrated such a 
        prima facie case, the burden shall shift to the United States to 
        disprove the plaintiff's claim. In deciding whether

[[Page 112 STAT. 2681-862]]

        the plaintiff has carried its burden, the United States Court of 
        Federal Claims shall consider, among other things--
                    (A) the value of proprietary information;
                    (B) the availability of the proprietary information;
                    (C) the extent to which the proprietary information 
                is based on patents, trade secrets, or other protected 
                intellectual property;
                    (D) the significance of proprietary information; and
                    (E) the emergence of technology elsewhere a 
                reasonable time after the inspection.

    (b) Tort Liability.--The district courts of the United States shall 
have exclusive jurisdiction of civil actions for money damages for any 
tort under the Constitution or any Federal or State law arising from the 
acts or omissions of any officer or employee of the United States or the 
Organization, including any member of an inspection team of the 
Technical Secretariat, taken pursuant to or under color of the 
Convention or this Act.
    (c) Waiver of Sovereign Immunity of the United States.--In any 
action under subsection (a) or (b), the United States may not raise 
sovereign immunity as a defense.
    (d) Authority for Cause of Action.--
            (1) United states actions in united states district court.--
        Notwithstanding any other law, the Attorney General of the 
        United States is authorized to bring an action in the United 
        States District Court for the District of Columbia against any 
        foreign nation for money damages resulting from that nation's 
        refusal to provide indemnification to the United States for any 
        liability imposed on the United States by virtue of the actions 
        of an inspector of the Technical Secretariat who is a national 
        of that foreign nation acting at the direction or the behest of 
        that foreign nation.
            (2) United states actions in courts outside the united 
        states.--The Attorney General is authorized to seek any and all 
        available redress in any international tribunal for 
        indemnification to the United States for any liability imposed 
        on the United States by virtue of the actions of an inspector of 
        the Technical Secretariat, and to seek such redress in the 
        courts of the foreign nation from which the inspector is a 
        national.
            (3) Actions brought by individuals and businesses.--
        Notwithstanding any other law, any national of the United 
        States, or any business entity organized and operating under the 
        laws of the United States, may bring a civil action in a United 
        States District Court for money damages against any foreign 
        national or any business entity organized and operating under 
        the laws of a foreign nation for an unauthorized or unlawful 
        acquisition, receipt, transmission, or use of property by or on 
        behalf of such foreign national or business entity as a result 
        of any tort under the Constitution or any Federal or State law 
        arising from acts or omissions by any officer or employee of the 
        United States or any member of an inspection team of the 
        Technical Secretariat taken pursuant to or under the color of 
        the Convention or this Act.

    (e) Recoupment.--
            (1) Policy.--It is the policy of the United States to recoup 
        all funds withdrawn from the Treasury of the United States in 
        payment for any tort under Federal or State law or taking

[[Page 112 STAT. 2681-863]]

        under the Constitution arising from the acts or omissions of any 
        foreign person, officer, or employee of the Organization, 
        including any member of an inspection team of the Technical 
        Secretariat, taken under color of the Chemical Weapons 
        Convention or this Act.
            (2) Sanctions on foreign companies.--
                    (A) Imposition of sanctions.--The sanctions provided 
                in subparagraph (B) shall be imposed for a period of not 
                less than ten years upon--
                          (i) any foreign person, officer, or employee 
                      of the Organization, including any member of an 
                      inspection team of the Technical Secretariat, for 
                      whose actions or omissions the United States has 
                      been held liable for a tort or taking pursuant to 
                      this Act; and
                          (ii) any foreign person or business entity 
                      organized and operating under the laws of a 
                      foreign nation which knowingly assisted, 
                      encouraged or induced, in any way, a foreign 
                      person described in clause (i) to publish, 
                      divulge, disclose, or make known in any manner or 
                      to any extent not authorized by the Convention any 
                      United States confidential business information.
                    (B) Sanctions.--
                          (i) Arms export transactions.--The United 
                      States Government shall not sell to a person 
                      described in subparagraph (A) any item on the 
                      United States Munitions List and shall terminate 
                      sales of any defense articles, defense services, 
                      or design and construction services to a person 
                      described in subparagraph (A) under the Arms 
                      Export Control Act.
                          (ii) Sanctions under export administration act 
                      of 1979.--The authorities under section 6 of the 
                      Export Administration Act of 1979 shall be used to 
                      prohibit the export of any goods or technology on 
                      the control list established pursuant to section 
                      5(c)(1) of that Act to a person described in 
                      subparagraph (A).
                          (iii) International financial assistance.--The 
                      United States shall oppose any loan or financial 
                      or technical assistance by international financial 
                      institutions in accordance with section 701 of the 
                      International Financial Institutions Act to a 
                      person described in subparagraph (A).
                          (iv) Export-import bank transactions.--The 
                      United States shall not give approval to 
                      guarantee, insure, or extend credit, or to 
                      participate in the extension of credit to a person 
                      described in subparagraph (A) through the Export-
                      Import Bank of the United States.
                          (v) Private bank transactions.--Regulations 
                      shall be issued to prohibit any United States bank 
                      from making any loan or providing any credit to a 
                      person described in subparagraph (A).
                          (vi) Blocking of assets.--The President shall 
                      take all steps necessary to block any transactions 
                      in any property subject to the jurisdiction of the 
                      United States in which a person described in 
                      subparagraph (A) has any interest whatsoever, for 
                      the purpose of

[[Page 112 STAT. 2681-864]]

                      recouping funds in accordance with the policy in 
                      paragraph (1).
                          (vii) Denial of landing rights.--Landing 
                      rights in the United States shall be denied to any 
                      private aircraft or air carrier owned by a person 
                      described in subparagraph (A) except as necessary 
                      to provide for emergencies in which the safety of 
                      the aircraft or its crew or passengers is 
                      threatened.
            (3) Sanctions on foreign governments.--
                    (A) Imposition of sanctions.--Whenever the President 
                determines that persuasive information is available 
                indicating that a foreign country has knowingly 
                assisted, encouraged or induced, in any way, a person 
                described in paragraph (2)(A) to publish, divulge, 
                disclose, or make known in any manner or to any extent 
                not authorized by the Convention any United States 
                confidential business information, the President shall, 
                within 30 days after the receipt of such information by 
                the executive branch of Government, notify the Congress 
                in writing of such determination and, subject to the 
                requirements of paragraphs (4) and (5), impose the 
                sanctions provided under subparagraph (B) for a period 
                of not less than five years.
                    (B) Sanctions.--
                          (i) Arms export transactions.--The United 
                      States Government shall not sell a country 
                      described in subparagraph (A) any item on the 
                      United States Munitions List, shall terminate 
                      sales of any defense articles, defense services, 
                      or design and construction services to that 
                      country under the Arms Export Control Act, and 
                      shall terminate all foreign military financing for 
                      that country under the Arms Export Control Act.
                          (ii) Denial of certain licenses.--Licenses 
                      shall not be issued for the export to the 
                      sanctioned country of any item on the United 
                      States Munitions List or commercial satellites.
                          (iii) Denial of assistance.--No appropriated 
                      funds may be used for the purpose of providing 
                      economic assistance, providing military assistance 
                      or grant military education and training, or 
                      extending military credits or making guarantees to 
                      a country described in subparagraph (A).
                          (iv) Sanctions under export administration act 
                      of 1979.--The authorities of section 6 of the 
                      Export Administration Act of 1979 shall be used to 
                      prohibit the export of any goods or technology on 
                      the control list established pursuant to section 
                      5(c)(1) of that Act to a country described in 
                      subparagraph (A).
                          (v) International financial assistance.--The 
                      United States shall oppose any loan or financial 
                      or technical assistance by international financial 
                      institutions in accordance with section 701 of the 
                      International Financial Institutions Act to a 
                      country described in subparagraph (A).
                          (vi) Termination of assistance under foreign 
                      assistance act of 1961.--The United States shall 
                      terminate all assistance to a country described in

[[Page 112 STAT. 2681-865]]

                      subparagraph (A) under the Foreign Assistance Act 
                      of 1961, except for urgent humanitarian 
                      assistance.
                          (vii) Private bank transactions.--The United 
                      States shall not give approval to guarantee, 
                      insure, or extend credit, or participate in the 
                      extension of credit through the Export-Import Bank 
                      of the United States to a country described in 
                      subparagraph (A).
                          (viii) Private bank transactions.--Regulations 
                      shall be issued to prohibit any United States bank 
                      from making any loan or providing any credit to a 
                      country described in subparagraph (A).
                          (ix) Denial of landing rights.--Landing rights 
                      in the United States shall be denied to any air 
                      carrier owned by a country described in 
                      subparagraph (A), except as necessary to provide 
                      for emergencies in which the safety of the 
                      aircraft or its crew or passengers is threatened.
            (4) Suspension of sanctions upon recoupment by payment.--
        Sanctions imposed under paragraph (2) or (3) may be suspended if 
        the sanctioned person, business entity, or country, within the 
        period specified in that paragraph, provides full and complete 
        compensation to the United States Government, in convertible 
        foreign exchange or other mutually acceptable compensation 
        equivalent to the full value thereof, in satisfaction of a tort 
        or taking for which the United States has been held liable 
        pursuant to this Act.
            (5) Waiver of sanctions on foreign countries.--The President 
        may waive some or all of the sanctions provided under paragraph 
        (3) in a particular case if he determines and certifies in 
        writing to the Speaker of the House of Representatives and the 
        Committee on Foreign Relations of the Senate that such waiver is 
        necessary to protect the national security interests of the 
        United States. The certification shall set forth the reasons 
        supporting the determination and shall take effect on the date 
        on which the certification is received by the Congress.
            (6) Notification to congress.--Not later than five days 
        after sanctions become effective against a foreign person 
        pursuant to this Act, the President shall transmit written 
        notification of the imposition of sanctions against that foreign 
        person to the chairmen and ranking members of the Committee on 
        International Relations of the House of Representatives and the 
        Committee on Foreign Relations of the Senate.
      (f) Sanctions for Unauthorized Disclosure of United States 
Confidential Business Information.--The Secretary of State shall deny a 
visa to, and the Attorney General shall exclude from the United States 
any alien who, after the date of enactment of this Act--
            (1) is, or previously served as, an officer or employee of 
        the Organization and who has willfully published, divulged, 
        disclosed, or made known in any manner or to any extent not 
        authorized by the Convention any United States confidential 
        business information coming to him in the course of his 
        employment or official duties, or by reason of any examination 
        or investigation of any return, report, or record made to or 
        filed with the Organization, or any officer or employee thereof, 
        such practice or disclosure having resulted in financial loses

[[Page 112 STAT. 2681-866]]

        or damages to a United States person and for which actions or 
        omissions the United States has been found liable of a tort or 
        taking pursuant to this Act;
            (2) traffics in United States confidential business 
        information, a proven claim to which is owned by a United States 
        national;
            (3) is a corporate officer, principal, shareholder with a 
        controlling interest of an entity which has been involved in the 
        unauthorized disclosure of United States confidential business 
        information, a proven claim to which is owned by a United States 
        national; or
            (4) is a spouse, minor child, or agent of a person 
        excludable under paragraph (1), (2), or (3).
      (g) United States Confidential Business Information Defined.--In 
this section, the term ``United States confidential business 
information'' means any trade secrets or commercial or financial 
information that is privileged and confidential--
            (1) including--
                    (A) data described in section 304(e)(2) of this Act,
                    (B) any chemical structure,
                    (C) any plant design process, technology, or 
                operating method,
                    (D) any operating requirement, input, or result that 
                identifies any type or quantity of chemicals used, 
                processed, or produced, or
                    (E) any commercial sale, shipment, or use of a 
                chemical, or
            (2) as described in section 552(b)(4) of title 5, United 
        States Code,

and that is obtained--
      (i) from a United States person; or
      (ii) through the United States Government or the conduct of an 
inspection on United States territory under the Convention.

TITLE II--PENALTIES FOR UNLAWFUL ACTIVITIES SUBJECT TO THE JURISDICTION 
                          OF THE UNITED STATES

                Subtitle A--Criminal and Civil Penalties

SEC. 201. CRIMINAL AND CIVIL PROVISIONS.

      (a) In General.--Part I of title 18, United States Code, is 
amended by inserting after chapter 11A the following new chapter:

                     ``CHAPTER 11B--CHEMICAL WEAPONS

``Sec.
``229. Prohibited activities.
``229A. Penalties.
``229B. Criminal forfeitures; destruction of weapons.
``229C. Individual self-defense devices.
``229D. Injunctions.
``229E. Requests for military assistance to enforce prohibition in 
           certain emergencies.
``229F. Definitions.

``Sec. 229. Prohibited activities

    ``(a) Unlawful Conduct.--Except as provided in subsection (b), it 
shall be unlawful for any person knowingly--

[[Page 112 STAT. 2681-867]]

            ``(1) to develop, produce, otherwise acquire, transfer 
        directly or indirectly, receive, stockpile, retain, own, 
        possess, or use, or threaten to use, any chemical weapon; or
            ``(2) to assist or induce, in any way, any person to violate 
        paragraph (1), or to attempt or conspire to violate paragraph 
        (1).

    ``(b) Exempted Agencies and Persons.--
            ``(1) In general.--Subsection (a) does not apply to the 
        retention, ownership, possession, transfer, or receipt of a 
        chemical weapon by a department, agency, or other entity of the 
        United States, or by a person described in paragraph (2), 
        pending destruction of the weapon.
            ``(2) Exempted persons.--A person referred to in paragraph 
        (1) is--
                    ``(A) any person, including a member of the Armed 
                Forces of the United States, who is authorized by law or 
                by an appropriate officer of the United States to 
                retain, own, possess, transfer, or receive the chemical 
                weapon; or
                    ``(B) in an emergency situation, any otherwise 
                nonculpable person if the person is attempting to 
                destroy or seize the weapon.

    ``(c) Jurisdiction.--Conduct prohibited by subsection (a) is within 
the jurisdiction of the United States if the prohibited conduct--
            ``(1) takes place in the United States;
            ``(2) takes place outside of the United States and is 
        committed by a national of the United States;
            ``(3) is committed against a national of the United States 
        while the national is outside the United States; or
            ``(4) is committed against any property that is owned, 
        leased, or used by the United States or by any department or 
        agency of the United States, whether the property is within or 
        outside the United States.

``Sec. 229A. Penalties

    ``(a) Criminal Penalties.--
            ``(1) In general.--Any person who violates section 229 of 
        this title shall be fined under this title, or imprisoned for 
        any term of years, or both.
            ``(2) Death penalty.--Any person who violates section 229 of 
        this title and by whose action the death of another person is 
        the result shall be punished by death or imprisoned for life.

    ``(b) Civil Penalties.--
            ``(1) In general.--The Attorney General may bring a civil 
        action in the appropriate United States district court against 
        any person who violates section 229 of this title and, upon 
        proof of such violation by a preponderance of the evidence, such 
        person shall be subject to pay a civil penalty in an amount not 
        to exceed $100,000 for each such violation.
            ``(2) Relation to other proceedings.--The imposition of a 
        civil penalty under this subsection does not preclude any other 
        criminal or civil statutory, common law, or administrative 
        remedy, which is available by law to the United States or any 
        other person.

[[Page 112 STAT. 2681-868]]

    ``(c) Reimbursement of Costs.--The court shall order any person 
convicted of an offense under subsection (a) to reimburse the United 
States for any expenses incurred by the United States incident to the 
seizure, storage, handling, transportation, and destruction or other 
disposition of any property that was seized in connection with an 
investigation of the commission of the offense by that person. A person 
ordered to reimburse the United States for expenses under this 
subsection shall be jointly and severally liable for such expenses with 
each other person, if any, who is ordered under this subsection to 
reimburse the United States for the same expenses.

``Sec. 229B. Criminal forfeitures; destruction of weapons

    ``(a) Property Subject to Criminal Forfeiture.--Any person convicted 
under section 229A(a) shall forfeit to the United States irrespective of 
any provision of State law--
            ``(1) any property, real or personal, owned, possessed, or 
        used by a person involved in the offense;
            ``(2) any property constituting, or derived from, and 
        proceeds the person obtained, directly or indirectly, as the 
        result of such violation; and
            ``(3) any of the property used in any manner or part, to 
        commit, or to facilitate the commission of, such violation.

The court, in imposing sentence on such person, shall order, in addition 
to any other sentence imposed pursuant to section 229A(a), that the 
person forfeit to the United States all property described in this 
subsection. In lieu of a fine otherwise authorized by section 229A(a), a 
defendant who derived profits or other proceeds from an offense may be 
fined not more than twice the gross profits or other proceeds.
    ``(b) Procedures.--
            ``(1) General.--Property subject to forfeiture under this 
        section, any seizure and disposition thereof, and any 
        administrative or judicial proceeding in relation thereto, shall 
        be governed by subsections (b) through (p) of section 413 of the 
        Comprehensive Drug Abuse Prevention and Control Act of 1970 (21 
        U.S.C. 853), except that any reference under those subsections 
        to--
                    ``(A) `this subchapter or subchapter II' shall be 
                deemed to be a reference to section 229A(a); and
                    ``(B) `subsection (a)' shall be deemed to be a 
                reference to subsection (a) of this section.
            ``(2) Temporary restraining orders.--
                    ``(A) In general.--For the purposes of forfeiture 
                proceedings under this section, a temporary restraining 
                order may be entered upon application of the United 
                States without notice or opportunity for a hearing when 
                an information or indictment has not yet been filed with 
                respect to the property, if, in addition to the 
                circumstances described in section 413(e)(2) of the 
                Comprehensive Drug Abuse Prevention and Control Act of 
                1970 (21 U.S.C. 853(e)(2)), the United States 
                demonstrates that there is probable cause to believe 
                that the property with respect to which the order is 
                sought would, in the event of conviction, be subject to 
                forfeiture under this section and exigent circumstances 
                exist that place the life or health of any person in 
                danger.

[[Page 112 STAT. 2681-869]]

                    ``(B) Warrant of seizure.--If the court enters a 
                temporary restraining order under this paragraph, it 
                shall also issue a warrant authorizing the seizure of 
                such property.
                    ``(C) Applicable procedures.--The procedures and 
                time limits applicable to temporary restraining orders 
                under section 413(e) (2) and (3) of the Comprehensive 
                Drug Abuse Prevention and Control Act of 1970 (21 U.S.C. 
                853(e) (2) and (3)) shall apply to temporary restraining 
                orders under this paragraph.

    ``(c) Affirmative Defense.--It is an affirmative defense against a 
forfeiture under subsection (b) that the property--
            ``(1) is for a purpose not prohibited under the Chemical 
        Weapons Convention; and
            ``(2) is of a type and quantity that under the circumstances 
        is consistent with that purpose.

    ``(d) Destruction or Other Disposition.--The Attorney General shall 
provide for the destruction or other appropriate disposition of any 
chemical weapon seized and forfeited pursuant to this section.
    ``(e) Assistance.--The Attorney General may request the head of any 
agency of the United States to assist in the handling, storage, 
transportation, or destruction of property seized under this section.
    ``(f) Owner Liability.--The owner or possessor of any property 
seized under this section shall be liable to the United States for any 
expenses incurred incident to the seizure, including any expenses 
relating to the handling, storage, transportation, and destruction or 
other disposition of the seized property.

``Sec. 229C. Individual self-defense devices

    ``Nothing in this chapter shall be construed to prohibit any 
individual self-defense device, including those using a pepper spray or 
chemical mace.

``Sec. 229D. Injunctions

    ``The United States may obtain in a civil action an injunction 
against--
            ``(1) the conduct prohibited under section 229 or 229C of 
        this title; or
            ``(2) the preparation or solicitation to engage in conduct 
        prohibited under section 229 or 229D of this title.

``Sec. 229E. Requests for military assistance to enforce prohibition in 
                        certain emergencies

    ``The Attorney General may request the Secretary of Defense to 
provide assistance under section 382 of title 10 in support of 
Department of Justice activities relating to the enforcement of section 
229 of this title in an emergency situation involving a chemical weapon. 
The authority to make such a request may be exercised by another 
official of the Department of Justice in accordance with section 
382(f)(2) of title 10.

``Sec. 229F. Definitions

    ``In this chapter:
            ``(1) Chemical weapon.--The term `chemical weapon' means the 
        following, together or separately:

[[Page 112 STAT. 2681-870]]

                    ``(A) A toxic chemical and its precursors, except 
                where intended for a purpose not prohibited under this 
                chapter as long as the type and quantity is consistent 
                with such a purpose.
                    ``(B) A munition or device, specifically designed to 
                cause death or other harm through toxic properties of 
                those toxic chemicals specified in subparagraph (A), 
                which would be released as a result of the employment of 
                such munition or device.
                    ``(C) Any equipment specifically designed for use 
                directly in connection with the employment of munitions 
                or devices specified in subparagraph (B).
            ``(2) Chemical weapons convention; convention.--The terms 
        `Chemical Weapons Convention' and `Convention' mean the 
        Convention on the Prohibition of the Development, Production, 
        Stockpiling and Use of Chemical Weapons and on Their 
        Destruction, opened for signature on January 13, 1993.
            ``(3) Key component of a binary or multicomponent chemical 
        system.--The term `key component of a binary or multicomponent 
        chemical system' means the precursor which plays the most 
        important role in determining the toxic properties of the final 
        product and reacts rapidly with other chemicals in the binary or 
        multicomponent system.
            ``(4) National of the united states.--The term `national of 
        the United States' has the same meaning given such term in 
        section 101(a)(22) of the Immigration and Nationality Act (8 
        U.S.C. 1101(a)(22)).
            ``(5) Person.--The term `person', except as otherwise 
        provided, means any individual, corporation, partnership, firm, 
        association, trust, estate, public or private institution, any 
        State or any political subdivision thereof, or any political 
        entity within a State, any foreign government or nation or any 
        agency, instrumentality or political subdivision of any such 
        government or nation, or other entity located in the United 
        States.
            ``(6) Precursor.--
                    ``(A) In general.--The term `precursor' means any 
                chemical reactant which takes part at any stage in the 
                production by whatever method of a toxic chemical. The 
                term includes any key component of a binary or 
                multicomponent chemical system.
                    ``(B) List of precursors.--Precursors which have 
                been identified for the application of verification 
                measures under Article VI of the Convention are listed 
                in schedules contained in the Annex on Chemicals of the 
                Chemical Weapons Convention.
            ``(7) Purposes not prohibited by this chapter.--The term 
        `purposes not prohibited by this chapter' means the following:
                    ``(A) Peaceful purposes.--Any peaceful purpose 
                related to an industrial, agricultural, research, 
                medical, or pharmaceutical activity or other activity.
                    ``(B) Protective purposes.--Any purpose directly 
                related to protection against toxic chemicals and to 
                protection against chemical weapons.
                    ``(C) Unrelated military purposes.--Any military 
                purpose of the United States that is not connected with 
                the use of a chemical weapon or that is not dependent

[[Page 112 STAT. 2681-871]]

                on the use of the toxic or poisonous properties of the 
                chemical weapon to cause death or other harm.
                    ``(D) Law enforcement purposes.--Any law enforcement 
                purpose, including any domestic riot control purpose and 
                including imposition of capital punishment.
            ``(8) Toxic chemical.--
                    ``(A) In general.--The term `toxic chemical' means 
                any chemical which through its chemical action on life 
                processes can cause death, temporary incapacitation or 
                permanent harm to humans or animals. The term includes 
                all such chemicals, regardless of their origin or of 
                their method of production, and regardless of whether 
                they are produced in facilities, in munitions or 
                elsewhere.
                    ``(B) List of toxic chemicals.--Toxic chemicals 
                which have been identified for the application of 
                verification measures under Article VI of the Convention 
                are listed in schedules contained in the Annex on 
                Chemicals of the Chemical Weapons Convention.
            ``(9) United states.--The term `United States' means the 
        several States of the United States, the District of Columbia, 
        and the commonwealths, territories, and possessions of the 
        United States and includes all places under the jurisdiction or 
        control of the United States, including--
                    ``(A) any of the places within the provisions of 
                paragraph (41) of section 40102 of title 49, United 
                States Code;
                    ``(B) any civil aircraft of the United States or 
                public aircraft, as such terms are defined in paragraphs 
                (17) and (37), respectively, of section 40102 of title 
                49, United States Code; and
                    ``(C) any vessel of the United States, as such term 
                is defined in section 3(b) of the Maritime Drug 
                Enforcement Act, as amended (46 U.S.C., App. sec. 
                1903(b)).''.

    (b) Conforming Amendments.--
            (1) Weapons of mass destruction.--Section 2332a of title 18, 
        United States Code, is amended--
                    (A) by striking ``Sec. 2332a. Use of weapons of mass 
                destruction'' and inserting ``Sec. 2332a. Use of certain 
                weapons of mass destruction'';
                    (B) in subsection (a), by inserting ``(other than a 
                chemical weapon as that term is defined in section 
                229F)'' after ``weapon of mass destruction''; and
                    (C) in subsection (b), by inserting ``(other than a 
                chemical weapon (as that term is defined in section 
                229F))'' after ``weapon of mass destruction''.
            (2) Table of chapters.--The table of chapters for part I of 
        title 18, United States Code, is amended by inserting after the 
        item for chapter 11A the following new item:

``11B. Chemical Weapons...........................................229''.

    (c) Repeals.--The following provisions of law are repealed:
            (1) Section 2332c of title 18, United States Code, relating 
        to chemical weapons.
            (2) In the table of sections for chapter 113B of title 18, 
        United States Code, the item relating to section 2332c.

[[Page 112 STAT. 2681-872]]

              Subtitle B--Revocations of Export Privileges

SEC. 211. <> REVOCATIONS OF EXPORT PRIVILEGES.
      If the President determines, after notice and an opportunity for a 
hearing in accordance with section 554 of title 5, United States Code, 
that any person within the United States, or any national of the United 
States located outside the United States, has committed any violation of 
section 229 of title 18, United States Code, the President may issue an 
order for the suspension or revocation of the authority of the person to 
export from the United States any goods or technology (as such terms are 
defined in section 16 of the Export Administration Act of 1979 (50 
U.S.C. App. 2415)).

                         TITLE III--INSPECTIONS

SEC. 301. <> DEFINITIONS IN THE TITLE.
      (a) In General.--In this title, the terms ``challenge 
inspection'', ``plant site'', ``plant'', ``facility agreement'', 
``inspection team'', and ``requesting state party'' have the meanings 
given those terms in Part I of the Annex on Implementation and 
Verification of the Chemical Weapons Convention. The term ``routine 
inspection'' means an inspection, other than an ``initial inspection'', 
undertaken pursuant to Article VI of the Convention.
      (b) Definition of Judge of the United States.--In this title, the 
term ``judge of the United States'' means a judge or magistrate judge of 
a district court of the United States.

SEC. 302. <> FACILITY AGREEMENTS.
      (a) Authorization of Inspections.--Inspections by the Technical 
Secretariat of plants, plant sites, or other facilities or locations for 
which the United States has a facility agreement with the Organization 
shall be conducted in accordance with the facility agreement. Any such 
facility agreement may not in any way limit the right of the owner or 
operator of the facility to withhold consent to an inspection request.
      (b) Types of Facility Agreements.--
            (1) Schedule two facilities.--The United States National 
        Authority shall ensure that facility agreements for plants, 
        plant sites, or other facilities or locations that are subject 
        to inspection pursuant to paragraph 4 of Article VI of the 
        Convention are concluded unless the owner, operator, occupant, 
        or agent in charge of the facility and the Technical Secretariat 
        agree that such an agreement is not necessary.
            (2) Schedule three facilities.--The United States National 
        Authority shall ensure that facility agreements are concluded 
        for plants, plant sites, or other facilities or locations that 
        are subject to inspection pursuant to paragraph 5 or 6 of 
        Article VI of the Convention if so requested by the owner, 
        operator, occupant, or agent in charge of the facility.
      (c) Notification Requirements.--The United States National 
Authority shall ensure that the owner, operator, occupant, or agent in 
charge of a facility prior to the development of the agreement relating 
to that facility is notified and, if the person notified so requests, 
the person may participate in the preparations for the negotiation of 
such an agreement. To the maximum extent practicable consistent with the 
Convention, the owner and the operator,

[[Page 112 STAT. 2681-873]]

occupant or agent in charge of a facility may observe negotiations of 
the agreement between the United States and the Organization concerning 
that facility.
      (d) Content of Facility Agreements.--Facility agreements shall--
            (1) identify the areas, equipment, computers, records, data, 
        and samples subject to inspection;
            (2) describe the procedures for providing notice of an 
        inspection to the owner, occupant, operator, or agent in charge 
        of a facility;
            (3) describe the timeframes for inspections; and
            (4) detail the areas, equipment, computers, records, data, 
        and samples that are not subject to inspection.

SEC. 303. <> AUTHORITY TO CONDUCT INSPECTIONS.

    (a) Prohibition.--No inspection of a plant, plant site, or other 
facility or location in the United States shall take place under the 
Convention without the authorization of the United States National 
Authority in accordance with the requirements of this title.
    (b) Authority.--
            (1) Technical secretariat inspection teams.--Any duly 
        designated member of an inspection team of the Technical 
        Secretariat may inspect any plant, plant site, or other facility 
        or location in the United States subject to inspection pursuant 
        to the Convention.
            (2) United states government representatives.--The United 
        States National Authority shall coordinate the designation of 
        employees of the Federal Government to accompany members of an 
        inspection team of the Technical Secretariat and, in doing so, 
        shall ensure that--
                    (A) a special agent of the Federal Bureau of 
                Investigation, as designated by the Federal Bureau of 
                Investigation, accompanies each inspection team visit 
                pursuant to paragraph (1);
                    (B) no employee of the Environmental Protection 
                Agency or the Occupational Safety and Health 
                Administration accompanies any inspection team visit 
                conducted pursuant to paragraph (1); and
                    (C) the number of duly designated representatives 
                shall be kept to the minimum necessary.
            (3) Objections to individuals serving as inspectors.--
                    (A) In general.--In deciding whether to exercise the 
                right of the United States under the Convention to 
                object to an individual serving as an inspector, the 
                President shall give great weight to his reasonable 
                belief that--
                          (i) such individual is or has been a member 
                      of, or a participant in, any group or organization 
                      that has engaged in, or attempted or conspired to 
                      engage in, or aided or abetted in the commission 
                      of, any terrorist act or activity;
                          (ii) such individual has committed any act or 
                      activity which would be a felony under the laws of 
                      the United States; or
                          (iii) the participation of such individual as 
                      a member of an inspection team would pose a risk 
                      to the

[[Page 112 STAT. 2681-874]]

                      national security or economic well-being of the 
                      United States.
                    (B) Not subject to judicial review.--Any objection 
                by the President to an individual serving as an 
                inspector, whether made pursuant to this section or 
                otherwise, shall not be reviewable in any court.

SEC. 304. <> PROCEDURES FOR INSPECTIONS.
      (a) Types of Inspections.--Each inspection of a plant, plant site, 
or other facility or location in the United States under the Convention 
shall be conducted in accordance with this section and section 305, 
except where other procedures are provided in a facility agreement 
entered into under section 302.

    (b) Notice.--
            (1) In general.--An inspection referred to in subsection (a) 
        may be made only upon issuance of an actual written notice by 
        the United States National Authority to the owner and to the 
        operator, occupant, or agent in charge of the premises to be 
        inspected.
            (2) Time of Notification.--The notice for a routine 
        inspection shall be submitted to the owner and to the operator, 
        occupant, or agent in charge within six hours of receiving the 
        notification of the inspection from the Technical Secretariat or 
        as soon as possible thereafter. Notice for a challenge 
        inspection shall be provided at any appropriate time determined 
        by the United States National Authority. Notices may be posted 
        prominently at the plant, plant site, or other facility or 
        location if the United States is unable to provide actual 
        written notice to the owner, operator, or agent in charge of the 
        premises.
            (3) Content of notice.--
                    (A) In general.--The notice under paragraph (1) 
                shall include all appropriate information supplied by 
                the Technical Secretariat to the United States National 
                Authority concerning--
                          (i) the type of inspection;
                          (ii) the basis for the selection of the plant, 
                      plant site, or other facility or location for the 
                      type of inspection sought;
                          (iii) the time and date that the inspection 
                      will begin and the period covered by the 
                      inspection; and
                          (iv) the names and titles of the inspectors.
                    (B) Special rule for challenge inspections.--In the 
                case of a challenge inspection pursuant to Article IX of 
                the Convention, the notice shall also include all 
                appropriate evidence or reasons provided by the 
                requesting state party to the Convention for seeking the 
                inspection.
            (4) Separate notices required.--A separate notice shall be 
        provided for each inspection, except that a notice shall not be 
        required for each entry made during the period covered by the 
        inspection.
      (c) Credentials.--The head of the inspection team of the Technical 
Secretariat and the accompanying employees of the Federal government 
shall display appropriate identifying credentials to the owner, 
operator, occupant, or agent in charge of the premises before the 
inspection is commenced.
      (d) Timeframe for Inspections.--Consistent with the provisions of 
the Convention, each inspection shall be commenced and

[[Page 112 STAT. 2681-875]]

completed with reasonable promptness and shall be conducted at 
reasonable times, within reasonable limits, and in a reasonable manner.
      (e) Scope.--
            (1) In general.--Except as provided in a warrant issued 
        under section 305 or a facility agreement entered into under 
        section 302, an inspection conducted under this title may extend 
        to all things within the premises inspected (including records, 
        files, papers, processes, controls, structures and vehicles) 
        related to whether the requirements of the Convention applicable 
        to such premises have been complied with.
            (2) Exception.--Unless required by the Convention, no 
        inspection under this title shall extend to--
                    (A) financial data;
                    (B) sales and marketing data (other than shipment 
                data);
                    (C) pricing data;
                    (D) personnel data;
                    (E) research data;
                    (F) patent data;
                    (G) data maintained for compliance with 
                environmental or occupational health and safety 
                regulations; or
                    (H) personnel and vehicles entering and personnel 
                and personal passenger vehicles exiting the facility.
      (f) Sampling and Safety.--
            (1) In general.--The Director of the United States National 
        Authority is authorized to require the provision of samples to a 
        member of the inspection team of the Technical Secretariat in 
        accordance with the provisions of the Convention. The owner or 
        the operator, occupant or agent in charge of the premises to be 
        inspected shall determine whether the sample shall be taken by 
        representatives of the premises or the inspection team or other 
        individuals present. No sample collected in the United States 
        pursuant to an inspection permitted by this Act may be 
        transferred for analysis to any laboratory outside the territory 
        of the United States.
            (2) Compliance with regulations.--In carrying out their 
        activities, members of the inspection team of the Technical 
        Secretariat and representatives of agencies or departments 
        accompanying the inspection team shall observe safety 
        regulations established at the premises to be inspected, 
        including those for protection of controlled environments within 
        a facility and for personal safety.
      (g) Coordination.--The appropriate representatives of the United 
States, as designated, if present, shall assist the owner and the 
operator, occupant or agent in charge of the premises to be inspected in 
interacting with the members of the inspection team of the Technical 
Secretariat.

SEC. 305. <>  WARRANTS.
      (a) In General.--The United States Government shall seek the 
consent of the owner or the operator, occupant, or agent in charge of 
the premises to be inspected prior to any inspection referred to in 
section 304(a). If consent is obtained, a warrant is not required for 
the inspection. The owner or the operator, occupant, or agent in charge 
of the premises to be inspected may withhold consent for any reason or 
no reason. After providing

[[Page 112 STAT. 2681-876]]

notification pursuant to subsection (b), the United States Government 
may seek a search warrant from a United States magistrate judge. 
Proceedings regarding the issuance of a search warrant shall be 
conducted ex parte, unless otherwise requested by the United States 
Government.
      (b) Routine Inspections.--
            (1) Obtaining administrative search warrants.--For any 
        routine inspection conducted on the territory of the United 
        States pursuant to Article VI of the Convention, where consent 
        has been withheld, the United States Government shall first 
        obtain an administrative search warrant from a judge of the 
        United States. The United States Government shall provide to the 
        judge of the United States all appropriate information supplied 
        by the Technical Secretariat to the United States National 
        Authority regarding the basis for the selection of the plant 
        site, plant, or other facility or location for the type of 
        inspection sought. The United States Government shall also 
        provide any other appropriate information available to it 
        relating to the reasonableness of the selection of the plant, 
        plant site, or other facility or location for the inspection.
            (2) Content of affidavits for administrative search 
        warrants.--The judge of the United States shall promptly issue a 
        warrant authorizing the requested inspection upon an affidavit 
        submitted by the United States Government showing that--
                    (A) the Chemical Weapons Convention is in force for 
                the United States;
                    (B) the plant site, plant, or other facility or 
                location sought to be inspected is required to report 
                data under title IV of this Act and is subject to 
                routine inspection under the Convention;
                    (C) the purpose of the inspection is--
                          (i) in the case of any facility owned or 
                      operated by a non-Government entity related to 
                      Schedule 1 chemical agents, to verify that the 
                      facility is not used to produce any Schedule 1 
                      chemical agent except for declared chemicals; 
                      quantities of Schedule 1 chemicals produced, 
                      processed, or consumed are correctly declared and 
                      consistent with needs for the declared purpose; 
                      and Schedule 1 chemicals are not diverted or used 
                      for other purposes;
                          (ii) in the case of any facility related to 
                      Schedule 2 chemical agents, to verify that 
                      activities are in accordance with obligations 
                      under the Convention and consistent with the 
                      information provided in data declarations; and
                          (iii) in the case of any facility related to 
                      Schedule 3 chemical agents and any other chemical 
                      production facility, to verify that the activities 
                      of the facility are consistent with the 
                      information provided in data declarations;
                    (D) the items, documents, and areas to be searched 
                and seized;
                    (E) in the case of a facility related to Schedule 2 
                or Schedule 3 chemical agents or unscheduled discrete 
                organic chemicals, the plant site has not been subject 
                to more than 1 routine inspection in the current 
                calendar

[[Page 112 STAT. 2681-877]]

                year, and, in the case of facilities related to Schedule 
                3 chemical agents or unscheduled discrete organic 
                chemicals, the inspection will not cause the number of 
                routine inspections in the United States to exceed 20 in 
                a calendar year;
                    (F) the selection of the site was made in accordance 
                with procedures established under the Convention and, in 
                particular--
                          (i) in the case of any facility owned or 
                      operated by a non-Government entity related to 
                      Schedule 1 chemical agents, the intensity, 
                      duration, timing, and mode of the requested 
                      inspection is based on the risk to the object and 
                      purpose of the Convention by the quantities of 
                      chemical produced, the characteristics of the 
                      facility and the nature of activities carried out 
                      at the facility, and the requested inspection, 
                      when considered with previous such inspections of 
                      the facility undertaken in the current calendar 
                      year, shall not exceed the number reasonably 
                      required based on the risk to the object and 
                      purpose of the Convention as described above;
                          (ii) in the case of any facility related to 
                      Schedule 2 chemical agents, the Technical 
                      Secretariat gave due consideration to the risk to 
                      the object and purpose of the Convention posed by 
                      the relevant chemical, the characteristics of the 
                      plant site and the nature of activities carried 
                      out there, taking into account the respective 
                      facility agreement as well as the results of the 
                      initial inspections and subsequent inspections; 
                      and
                          (iii) in the case of any facility related to 
                      Schedule 3 chemical agents or unscheduled discrete 
                      organic chemicals, the facility was selected 
                      randomly by the Technical Secretariat using 
                      appropriate mechanisms, such as specifically 
                      designed computer software, on the basis of two 
                      weighting factors: (I) equitable geographical 
                      distribution of inspections; and (II) the 
                      information on the declared sites available to the 
                      Technical Secretariat, related to the relevant 
                      chemical, the characteristics of the plant site, 
                      and the nature of activities carried out there;
                    (G) the earliest commencement and latest closing 
                dates and times of the inspection; and
                    (H) the duration of inspection will not exceed time 
                limits specified in the Convention unless agreed by the 
                owner, operator, or agent in charge of the plant.
            (3) Content of warrants.--A warrant issued under paragraph 
        (2) shall specify the same matters required of an affidavit 
        under that paragraph. In addition to the requirements for a 
        warrant issued under this paragraph, each warrant shall contain, 
        if known, the identities of the representatives of the Technical 
        Secretariat conducting the inspection and the observers of the 
        inspection and, if applicable, the identities of the 
        representatives of agencies or departments of the United States 
        accompanying those representatives.
            (4) Challenge inspections.--
                    (A) Criminal search warrant.--For any challenge 
                inspection conducted on the territory of the United 
                States

[[Page 112 STAT. 2681-878]]

                pursuant to Article IX of the Chemical Weapons 
                Convention, where consent has been withheld, the United 
                States Government shall first obtain from a judge of the 
                United States a criminal search warrant based upon 
                probable cause, supported by oath or affirmation, and 
                describing with particularity the place to be searched 
                and the person or things to be seized.
                    (B) Information provided.--The United States 
                Government shall provide to the judge of the United 
                States--
                          (i) all appropriate information supplied by 
                      the Technical Secretariat to the United States 
                      National Authority regarding the basis for the 
                      selection of the plant site, plant, or other 
                      facility or location for the type of inspection 
                      sought;
                          (ii) any other appropriate information 
                      relating to the reasonableness of the selection of 
                      the plant, plant site, or other facility or 
                      location for the inspection;
                          (iii) information concerning--
                                    (I) the duration and scope of the 
                                inspection;
                                    (II) areas to be inspected;
                                    (III) records and data to be 
                                reviewed; and
                                    (IV) samples to be taken;
                          (iv) appropriate evidence or reasons provided 
                      by the requesting state party for the inspection;
                          (v) any other evidence showing probable cause 
                      to believe that a violation of this Act has 
                      occurred or is occurring; and
                          (vi) the identities of the representatives of 
                      the Technical Secretariat on the inspection team 
                      and the Federal Government employees accompanying 
                      the inspection team.
                    (C) Content of warrant.--The warrant shall 
                specify--
                          (i) the type of inspection authorized;
                          (ii) the purpose of the inspection;
                          (iii) the type of plant site, plant, or other 
                      facility or location to be inspected;
                          (iv) the areas of the plant site, plant, or 
                      other facility or location to be inspected;
                          (v) the items, documents, data, equipment, and 
                      computers that may be inspected or seized;
                          (vi) samples that may be taken;
                          (vii) the earliest commencement and latest 
                      concluding dates and times of the inspection; and
                          (viii) the identities of the representatives 
                      of the Technical Secretariat on the inspection 
                      teams and the Federal Government employees 
                      accompanying the inspection team.

SEC. 306. <>  PROHIBITED ACTS RELATING TO 
            INSPECTIONS.
      It shall be unlawful for any person willfully to fail or refuse to 
permit entry or inspection, or to disrupt, delay, or otherwise impede an 
inspection, authorized by this Act.

SEC. 307. <> NATIONAL SECURITY EXCEPTION.
      Consistent with the objective of eliminating chemical weapons, the 
President may deny a request to inspect any facility in the

[[Page 112 STAT. 2681-879]]

United States in cases where the President determines that the 
inspection may pose a threat to the national security interests of the 
United States.

SEC. 308. PROTECTION OF CONSTITUTIONAL RIGHTS OF CONTRACTORS.

      (a) The Office of Federal Procurement Policy Act (41 U.S.C. 403 et 
seq.) is amended by adding at the end the following:

``SEC. 39. <> PROTECTION OF CONSTITUTIONAL RIGHTS OF 
            CONTRACTORS.
      ``(a) Prohibition.--A contractor may not be required, as a 
condition for entering into a contract with the Federal Government, to 
waive any right under the Constitution for any purpose related to 
Chemical Weapons Convention Implementation Act of 1997 or the Chemical 
Weapons Convention (as defined in section 3 of such Act).
      ``(b) Construction.--Nothing in subsection (a) shall be construed 
to prohibit an executive agency from including in a contract a clause 
that requires the contractor to permit inspections for the purpose of 
ensuring that the contractor is performing the contract in accordance 
with the provisions of the contract.''.
      (b) The table of contents in section 1(b) of such Act is amended 
by adding at the end the following:

``Sec. 39. Protection of constitutional rights of contractors.''.

SEC. 309. <>  ANNUAL REPORT ON INSPECTIONS.
      (a) In General.--Not later than one year after the date of 
enactment of this Act, and annually thereafter, the President shall 
submit a report in classified and unclassified form to the appropriate 
congressional committees on inspections made under the Convention during 
the preceding year.
      (b) Content of Reports.--Each report shall contain the following 
information for the reporting period:
            (1) The name of each company or entity subject to the 
        jurisdiction of the United States reporting data pursuant to 
        title IV of this Act.
            (2) The number of inspections under the Convention conducted 
        on the territory of the United States.
            (3) The number and identity of inspectors conducting any 
        inspection described in paragraph (2) and the number of 
        inspectors barred from inspection by the United States.
            (4) The cost to the United States for each inspection 
        described in paragraph (2).
            (5) The total costs borne by United States business firms in 
        the course of inspections described in paragraph (2).
            (6) A description of the circumstances surrounding 
        inspections described in paragraph (2), including instances of 
        possible industrial espionage and misconduct of inspectors.
            (7) The identity of parties claiming loss of trade secrets, 
        the circumstances surrounding those losses, and the efforts 
        taken by the United States Government to redress those losses.
            (8) A description of instances where inspections under the 
        Convention outside the United States have been disrupted or 
        delayed.
      (c) Definition.--The term ``appropriate congressional committees'' 
means the Committee on the Judiciary, the Committee on Foreign 
Relations, and the Select Committee on Intelligence of

[[Page 112 STAT. 2681-880]]

the Senate and the Committee on the Judiciary, the Committee on 
International Relations, and the Permanent Select Committee on 
Intelligence of the House of Representatives.

SEC. 310. <>  UNITED STATES ASSISTANCE IN 
            INSPECTIONS AT PRIVATE FACILITIES.
      (a) Assistance in Preparation for Inspections.--At the request of 
an owner of a facility not owned or operated by the United States 
Government, or contracted for use by or for the United States 
Government, the Secretary of Defense may assist the facility to prepare 
the facility for possible inspections pursuant to the Convention.

    (b) Reimbursement Requirement.--
            (1) In general.--Except as provided in paragraph (2), the 
        owner of a facility provided assistance under subsection (a) 
        shall reimburse the Secretary for the costs incurred by the 
        Secretary in providing the assistance.
            (2) Exception.--In the case of assistance provided under 
        subsection (a) to a facility owned by a person described in 
        subsection (c), the United States National Authority shall 
        reimburse the Secretary for the costs incurred by the Secretary 
        in providing the assistance.

    (c) Owners Covered by United States National Authority 
Reimbursements.--Subsection (b)(2) applies in the case of assistance 
provided to the following:
            (1) Small business concerns.--A small business concern as 
        defined in section 3 of the Small Business Act.
            (2) Domestic producers of schedule 3 or unscheduled discrete 
        organic chemicals.--Any person located in the United States 
        that--
                    (A) does not possess, produce, process, consume, 
                import, or export any Schedule 1 or Schedule 2 chemical; 
                and
                    (B) in the calendar year preceding the year in which 
                the assistance is to be provided, produced--
                          (i) more than 30 metric tons of Schedule 3 or 
                      unscheduled discrete organic chemicals that 
                      contain phosphorous, sulfur, or fluorine; or
                          (ii) more than 200 metric tons of unscheduled 
                      discrete organic chemicals.

                            TITLE IV--REPORTS

SEC. 401. <>  REPORTS REQUIRED BY THE UNITED STATES 
            NATIONAL AUTHORITY.

    (a) Regulations on Recordkeeping.--
            (1) Requirements.--The United States National Authority 
        shall ensure that regulations are prescribed that require each 
        person located in the United States who produces, processes, 
        consumes, exports, or imports, or proposes to produce, process, 
        consume, export, or import, a chemical substance that is subject 
        to the Convention to--
                    (A) maintain and permit access to records related to 
                that production, processing, consumption, export, or 
                import of such substance; and

[[Page 112 STAT. 2681-881]]

                    (B) submit to the Director of the United States 
                National Authority such reports as the United States 
                National Authority may reasonably require to provide to 
                the Organization, pursuant to subparagraph 1(a) of the 
                Annex on Confidentiality of the Convention, the minimum 
                amount of information and data necessary for the timely 
                and efficient conduct by the Organization of its 
                responsibilities under the Convention.
            (2) Rulemaking.--The Director of the United States National 
        Authority shall ensure that regulations pursuant to this section 
        are prescribed expeditiously.

    (b) Coordination.--
            (1) Avoidance of duplication.--To the extent feasible, the 
        United States Government shall not require the submission of any 
        report that is unnecessary or duplicative of any report required 
        by or under any other law. The head of each Federal agency shall 
        coordinate the actions of that agency with the heads of the 
        other Federal agencies in order to avoid the imposition of 
        duplicative reporting requirements under this Act or any other 
        law.
            (2) Definition.--As used in paragraph (1), the term 
        ``Federal agency'' has the meaning given the term ``agency'' in 
        section 551(1) of title 5, United States Code.

SEC. 402. <> PROHIBITION RELATING TO LOW 
            CONCENTRATIONS OF SCHEDULE 2 AND 3 CHEMICALS.

    (a) Prohibition.--Notwithstanding any other provision of this Act, 
no person located in the United States shall be required to report on, 
or to submit to, any routine inspection conducted for the purpose of 
verifying the production, possession, consumption, exportation, 
importation, or proposed production, possession, consumption, 
exportation, or importation of any substance that contains less than--
            (1) 10 percent concentration of a Schedule 2 chemical; or
            (2) 80 percent concentration of a Schedule 3 chemical.

    (b) Standard for Measurement of Concentration.--The percent 
concentration of a chemical in a substance shall be measured on the 
basis of volume or total weight, which measurement yields the lesser 
percent.

SEC. 403. <> PROHIBITION RELATING TO UNSCHEDULED 
            DISCRETE ORGANIC CHEMICALS AND COINCIDENTAL BYPRODUCTS IN 
            WASTE STREAMS.

    (a) Prohibition.--Notwithstanding any other provision of this Act, 
no person located in the United States shall be required to report on, 
or to submit to, any routine inspection conducted for the purpose of 
verifying the production, possession, consumption, exportation, 
importation, or proposed production, possession, consumption, 
exportation, or importation of any substance that is--
            (1) an unscheduled discrete organic chemical; and
            (2) a coincidental byproduct of a manufacturing or 
        production process that is not isolated or captured for use or 
        sale during the process and is routed to, or escapes, from the 
        waste stream of a stack, incinerator, or wastewater treatment 
        system or any other waste stream.

[[Page 112 STAT. 2681-882]]

SEC. 404. <>  CONFIDENTIALITY OF INFORMATION.

    (a) Freedom of Information Act Exemption for Certain Convention 
Information.--Except as provided in subsection (b) or (c), any 
confidential business information, as defined in section 103(g), 
reported to, or otherwise acquired by, the United States Government 
under this Act or under the Convention shall not be disclosed under 
section 552(a) of title 5, United States Code.
    (b) Exceptions.--
            (1) Information for the technical secretariat.--Information 
        shall be disclosed or otherwise provided to the Technical 
        Secretariat or other states parties to the Chemical Weapons 
        Convention in accordance with the Convention, in particular, the 
        provisions of the Annex on the Protection of Confidential 
        Information.
            (2) Information for congress.--Information shall be made 
        available to any committee or subcommittee of Congress with 
        appropriate jurisdiction upon the written request of the 
        chairman or ranking minority member of such committee or 
        subcommittee, except that no such committee or subcommittee, and 
        no member and no staff member of such committee or subcommittee, 
        shall disclose such information or material except as otherwise 
        required or authorized by law.
            (3) Information for enforcement actions.--Information shall 
        be disclosed to other Federal agencies for enforcement of this 
        Act or any other law, and shall be disclosed or otherwise 
        provided when relevant in any proceeding under this Act or any 
        other law, except that disclosure or provision in such a 
        proceeding shall be made in such manner as to preserve 
        confidentiality to the extent practicable without impairing the 
        proceeding.

    (c) Information Disclosed in the National Interest.--
            (1) Authority.--The United States Government shall disclose 
        any information reported to, or otherwise required by the United 
        States Government under this Act or the Convention, including 
        categories of such information, that it determines is in the 
        national interest to disclose and may specify the form in which 
        such information is to be disclosed.
            (2) Notice of disclosure.--
                    (A) Requirement.--If any Department or agency of the 
                United States Government proposes pursuant to paragraph 
                (1) to publish or disclose or otherwise provide 
                information exempt from disclosure under subsection (a), 
                the United States National Authority shall, unless 
                contrary to national security or law enforcement needs, 
                provide notice of intent to disclose the information--
                          (i) to the person that submitted such 
                      information; and
                          (ii) in the case of information about a person 
                      received from another source, to the person to 
                      whom that information pertains.

                The information may not be disclosed until the 
                expiration of 30 days after notice under this paragraph 
                has been provided.
                    (B) Proceedings on objections.--In the event that 
                the person to which the information pertains objects to 
                the disclosure, the agency shall promptly review the 
                grounds for each objection of the person and shall 
                afford

[[Page 112 STAT. 2681-883]]

                the objecting person a hearing for the purpose of 
                presenting the objections to the disclosure. Not later 
                than 10 days before the scheduled or rescheduled date 
                for the disclosure, the United States National Authority 
                shall notify such person regarding whether such 
                disclosure will occur notwithstanding the objections.

    (d) Criminal Penalty for Wrongful Disclosure.--Any officer or 
employee of the United States, and any former officer or employee of the 
United States, who by reason of such employment or official position has 
obtained possession of, or has access to, information the disclosure or 
other provision of which is prohibited by subsection (a), and who, 
knowing that disclosure or provision of such information is prohibited 
by such subsection, willfully discloses or otherwise provides the 
information in any manner to any person (including any person located 
outside the territory of the United States) not authorized to receive 
it, shall be fined under title 18, United States Code, or imprisoned for 
not more than five years, or both.
    (e) Criminal Forfeiture.--The property of any person who violates 
subsection (d) shall be subject to forfeiture to the United States in 
the same manner and to the same extent as is provided in section 229C of 
title 18, United States Code, as added by this Act.
    (f) International Inspectors.--The provisions of this section shall 
also apply to employees of the Technical Secretariat.

SEC. 405. <> RECORDKEEPING VIOLATIONS.

    It shall be unlawful for any person willfully to fail or refuse--
            (1) to establish or maintain any record required by this Act 
        or any regulation prescribed under this Act;
            (2) to submit any report, notice, or other information to 
        the United States Government in accordance with this Act or any 
        regulation prescribed under this Act; or
            (3) to permit access to or copying of any record that is 
        exempt from disclosure under this Act or any regulation 
        prescribed under this Act.

                          TITLE V--ENFORCEMENT

SEC. 501. <> PENALTIES.

    (a) Civil.--
            (1) Penalty amounts.--
                    (A) Prohibited acts relating to inspections.--Any 
                person that is determined, in accordance with paragraph 
                (2), to have violated section 306 of this Act shall be 
                required by order to pay a civil penalty in an amount 
                not to exceed $25,000 for each such violation. For 
                purposes of this paragraph, each day such a violation of 
                section 306 continues shall constitute a separate 
                violation of that section.
                    (B) Recordkeeping violations.--Any person that is 
                determined, in accordance with paragraph (2), to have 
                violated section 405 of this Act shall be required by 
                order to pay a civil penalty in an amount not to exceed 
                $5,000 for each such violation.
            (2) Hearing.--

[[Page 112 STAT. 2681-884]]

                    (A) In general.--Before imposing an order described 
                in paragraph (1) against a person under this subsection 
                for a violation of section 306 or 405, the Secretary of 
                State shall provide the person or entity with notice 
                and, upon request made within 15 days of the date of the 
                notice, a hearing respecting the violation.
                    (B) Conduct of hearing.--Any hearing so requested 
                shall be conducted before an administrative law judge. 
                The hearing shall be conducted in accordance with the 
                requirements of section 554 of title 5, United States 
                Code. If no hearing is so requested, the Secretary of 
                State's imposition of the order shall constitute a final 
                and unappealable order.
                    (C) Issuance of orders.--If the administrative law 
                judge determines, upon the preponderance of the evidence 
                received, that a person or entity named in the complaint 
                has violated section 306 or 405, the administrative law 
                judge shall state his findings of fact and issue and 
                cause to be served on such person or entity an order 
                described in paragraph (1).
                    (D) Factors for determination of penalty amounts.--
                In determining the amount of any civil penalty, the 
                administrative law judge shall take into account the 
                nature, circumstances, extent, and gravity of the 
                violation or violations and, with respect to the 
                violator, the ability to pay, effect on ability to 
                continue to do business, any history of prior such 
                violations, the degree of culpability, the existence of 
                an internal compliance program, and such other matters 
                as justice may require.
            (3) Administrative appellate review.--The decision and order 
        of an administrative law judge shall become the final agency 
        decision and order of the head of the United States National 
        Authority unless, within 30 days, the head of the United States 
        National Authority modifies or vacates the decision and order, 
        with or without conditions, in which case the decision and order 
        of the head of the United States National Authority shall become 
        a final order under this subsection.
            (4) Offsets.--The amount of the civil penalty under a final 
        order of the United States National Authority may be deducted 
        from any sums owed by the United States to the person.
            (5) Judicial review.--A person adversely affected by a final 
        order respecting an assessment may, within 30 days after the 
        date the final order is issued, file a petition in the Court of 
        Appeals for the District of Columbia Circuit or for any other 
        circuit in which the person resides or transacts business.
            (6) Enforcement of orders.--If a person fails to comply with 
        a final order issued under this subsection against the person or 
        entity--
                    (A) after the order making the assessment has become 
                a final order and if such person does not file a 
                petition for judicial review of the order in accordance 
                with paragraph (5), or
                    (B) after a court in an action brought under 
                paragraph (5) has entered a final judgment in favor of 
                the United States National Authority,


[[Page 112 STAT. 2681-885]]


        the Secretary of State shall file a suit to seek compliance with 
        the order in any appropriate district court of the United 
        States, plus interest at currently prevailing rates calculated 
        from the date of expiration of the 30-day period referred to in 
        paragraph (5) or the date of such final judgment, as the case 
        may be. In any such suit, the validity and appropriateness of 
        the final order shall not be subject to review.
            (b) Criminal.--Any person who knowingly violates any 
        provision of section 306 or 405 of this Act, shall, in addition 
        to or in lieu of any civil penalty which may be imposed under 
        subsection (a) for such violation, be fined under title 18, 
        United States Code, imprisoned for not more than one year, or 
        both.

SEC. 502. <> SPECIFIC ENFORCEMENT.

    (a) Jurisdiction.--The district courts of the United States shall 
have jurisdiction over civil actions to--
            (1) restrain any violation of section 306 or 405 of this 
        Act; and
            (2) compel the taking of any action required by or under 
        this Act or the Convention.

    (b) Civil Actions.--
            (1) In general.--A civil action described in subsection (a) 
        may be brought--
                    (A) in the case of a civil action described in 
                subsection (a)(1), in the United States district court 
                for the judicial district in which any act, omission, or 
                transaction constituting a violation of section 306 or 
                405 occurred or in which the defendant is found or 
                transacts business; or
                    (B) in the case of a civil action described in 
                subsection (a)(2), in the United States district court 
                for the judicial district in which the defendant is 
                found or transacts business.
            (2) Service of process.--In any such civil action process 
        may be served on a defendant wherever the defendant may reside 
        or may be found, whether the defendant resides or may be found 
        within the United States or elsewhere.

SEC. 503. <> EXPEDITED JUDICIAL REVIEW.

    (a) Civil Action.--Any person or entity subject to a search under 
this Act may file a civil action challenging the constitutionality of 
any provision of this Act. Notwithstanding any other provision of law, 
during the full calendar year of, and the two full calendar years 
following, the enactment of this Act, the district court shall accord 
such a case a priority in its disposition ahead of all other civil 
actions except for actions challenging the legality and conditions of 
confinement.
    (b) En Banc Review.--Notwithstanding any other provision of law, 
during the full calendar year of, and the two full calendar years 
following, the enactment of this Act, any appeal from a final order 
entered by a district court in an action brought under subsection (a) 
shall be heard promptly by the full Court of Appeals sitting en banc.

[[Page 112 STAT. 2681-886]]

                   TITLE VI--MISCELLANEOUS PROVISIONS

SEC. 601. REPEAL.

    Section 808 of the Department of Defense Appropriation Authorization 
Act, 1978 (50 U.S.C. 1520; relating to the use of human subjects for the 
testing of chemical or biological agents) is repealed.

SEC. 602. <> PROHIBITION.

    (a) In General.--Neither the Secretary of Defense nor any other 
officer or employee of the United States may, directly or by contract--
            (1) conduct any test or experiment involving the use of any 
        chemical or biological agent on a civilian population; or
            (2) use human subjects for the testing of chemical or 
        biological agents.

    (b) Construction.--Nothing in subsection (a) may be construed to 
prohibit actions carried out for purposes not prohibited by this Act (as 
defined in section 3(8)).
    (c) Biological Agent Defined.--In this section, the term 
``biological agent'' means any micro-organism (including bacteria, 
viruses, fungi, rickettsiae or protozoa), pathogen, or infectious 
substance, or any naturally occurring, bio-engineered or synthesized 
component of any such micro-organism, pathogen, or infectious substance, 
whatever its origin or method of production, capable of causing--
            (1) death, disease, or other biological malfunction in a 
        human, an animal, a plant, or another living organism;
            (2) deterioration of food, water, equipment, supplies, or 
        materials of any kind; or
            (3) deleterious alteration of the environment.

SEC. 603. BANKRUPTCY ACTIONS.

    Section 362(b) of title 11, United States Code, is amended--
            (1) by striking paragraphs (4) and (5); and
            (2) by inserting after paragraph (3) the following:
            ``(4) under paragraph (1), (2), (3), or (6) of subsection 
        (a) of this section, of the commencement or continuation of an 
        action or proceeding by a governmental unit or any organization 
        exercising authority under the Convention on the Prohibition of 
        the Development, Production, Stockpiling and Use of Chemical 
        Weapons and on Their Destruction, opened for signature on 
        January 13, 1993, to enforce such governmental unit's or 
        organization's police and regulatory power, including the 
        enforcement of a judgment other than a money judgment, obtained 
        in an action or proceeding by the governmental unit to enforce 
        such governmental unit's or organization's police or regulatory 
        power;''.

      <> DIVISION J--REVENUES AND MEDICARE

SEC. 1000. SHORT TITLE; AMENDMENT OF 1986 CODE; TABLE OF CONTENTS.

    (a) Short Title.--This division may be cited as the ``Tax and Trade 
Relief Extension Act of 1998''.

[[Page 112 STAT. 2681-887]]

    (b) Amendment of 1986 Code.--Except as otherwise expressly provided, 
whenever in this division an amendment or repeal is expressed in terms 
of an amendment to, or repeal of, a section or other provision, the 
reference shall be considered to be made to a section or other provision 
of the Internal Revenue Code of 1986.
    (c) Table of Contents.--

                    DIVISION J--REVENUES AND MEDICARE

Sec. 1000. Short title; amendment of 1986 Code; table of contents.

   TITLE I--EXTENSION AND MODIFICATION OF CERTAIN EXPIRING PROVISIONS

                       Subtitle A--Tax Provisions

Sec. 1001. Research credit.
Sec. 1002. Work opportunity credit.
Sec. 1003. Welfare-to-work credit.
Sec. 1004. Contributions of stock to private foundations; expanded 
           public inspection of private foundations' annual returns.
Sec. 1005. Subpart F exemption for active financing income.
Sec. 1006. Disclosure of return information on income contingent student 
           loans.

                      Subtitle B--Trade Provisions

Sec. 1011. Extension of duty-free treatment under Generalized System of 
           Preferences.
Sec. 1012. Trade adjustment assistance.

                     TITLE II--OTHER TAX PROVISIONS

             Subtitle A--Provisions Relating to Individuals

Sec. 2001. Nonrefundable personal credits fully allowed against regular 
           tax liability during 1998.
Sec. 2002. 100 percent deduction for health insurance costs of self-
           employed individuals.
Sec. 2003. Modification of estimated tax safe harbors.

               Subtitle B--Provisions Relating to Farmers

Sec. 2011. Income averaging for farmers made permanent.
Sec. 2012. Production flexibility contract payments.
Sec. 2013. 5-year net operating loss carryback for farming losses.

                  Subtitle C--Miscellaneous Provisions

Sec. 2021. Increase in volume cap on private activity bonds.
Sec. 2022. Depreciation study.
Sec. 2023. Exemption for students employed by State schools, colleges, 
           or universities.

                       TITLE III--REVENUE OFFSETS

Sec. 3001. Treatment of certain deductible liquidating distributions of 
           regulated investment companies and real estate investment 
           trusts.
Sec. 3002. Inclusion of rotavirus gastroenteritis as a taxable vaccine.
Sec. 3003. Clarification and expansion of mathematical error assessment 
           procedures.
Sec. 3004. Clarification of definition of specified liability loss.

                     TITLE IV--TECHNICAL CORRECTIONS

Sec. 4001. Definitions; coordination with other subtitles.
Sec. 4002. Amendments related to Internal Revenue Service Restructuring 
           and Reform Act of 1998.
Sec. 4003. Amendments related to Taxpayer Relief Act of 1997.
Sec. 4004. Amendments related to Tax Reform Act of 1984.
Sec. 4005. Amendments related to Uruguay Round Agreements Act.
Sec. 4006. Other amendments.

                  TITLE V--MEDICARE-RELATED PROVISIONS

                         Subtitle A--Home Health

Sec. 5101. Increase in per beneficiary limits and per visit payment 
           limits for payment for home health services.

[[Page 112 STAT. 2681-888]]

              Subtitle B--Other Medicare-Related Provisions

Sec. 5201. Authorization of additional exceptions to imposition of 
           penalties for providing inducements to beneficiaries.
Sec. 5202. Expansion of membership of MedPAC to 17.

                       Subtitle C--Revenue Offsets

Sec. 5301. Tax treatment of cash option for qualified prizes.

   TITLE I--EXTENSION AND MODIFICATION OF CERTAIN EXPIRING PROVISIONS

                       Subtitle A--Tax Provisions

SEC. 1001. RESEARCH CREDIT.

    (a) Temporary Extension.--Paragraph (1) of section 41(h) (relating 
to termination) is amended--
            (1) by striking ``June 30, 1998'' and inserting ``June 30, 
        1999'';
            (2) by striking ``24-month'' and inserting ``36-month''; and
            (3) by striking ``24 months'' and inserting ``36 months''.

    (b) Technical Amendment.--Subparagraph (D) of section 45C(b)(1) is 
amended by striking ``June 30, 1998'' and inserting ``June 30, 1999''.
     <> (c) Effective Date.--The amendments made 
by this section shall apply to amounts paid or incurred after June 30, 
1998.

SEC. 1002. WORK OPPORTUNITY CREDIT.

    (a) Temporary Extension.--Subparagraph (B) of section 51(c)(4) 
(relating to termination) is amended by striking ``June 30, 1998'' and 
inserting ``June 30, 1999''.
     <> (b) Effective Date.--The amendment made 
by this section shall apply to individuals who begin work for the 
employer after June 30, 1998.

SEC. 1003. WELFARE-TO-WORK CREDIT.

    Subsection (f) of section 51A (relating to termination) is amended 
by striking ``April 30, 1999'' and inserting ``June 30, 1999''.

SEC. 1004. CONTRIBUTIONS OF STOCK TO PRIVATE FOUNDATIONS; EXPANDED 
            PUBLIC INSPECTION OF PRIVATE FOUNDATIONS' ANNUAL RETURNS.

    (a) Special Rule for Contributions of Stock Made Permanent.--
            (1) In general.--Paragraph (5) of section 170(e) is amended 
        by striking subparagraph (D) (relating to termination).
             <> (2) Effective date.--The 
        amendment made by paragraph (1) shall apply to contributions 
        made after June 30, 1998.

    (b) Expanded Public Inspection of Private Foundations' Annual 
Returns, Etc.--
            (1) In general.--Section 6104 (relating to publicity of 
        information required from certain exempt organizations and 
        certain trusts) is amended by striking subsections (d) and (e) 
        and inserting after subsection (c) the following new subsection:

    ``(d) Public Inspection of Certain Annual Returns and Applications 
for Exemption.--
            ``(1) In general.--In the case of an organization described 
        in subsection (c) or (d) of section 501 and exempt from taxation 
        under section 501(a)--
                    ``(A) a copy of--

[[Page 112 STAT. 2681-889]]

                          ``(i) the annual return filed under section 
                      6033 (relating to returns by exempt organizations) 
                      by such organization, and
                          ``(ii) if the organization filed an 
                      application for recognition of exemption under 
                      section 501, the exempt status application 
                      materials of such organization,

                shall be made available by such organization for 
                inspection during regular business hours by any 
                individual at the principal office of such organization 
                and, if such organization regularly maintains 1 or more 
                regional or district offices having 3 or more employees, 
                at each such regional or district office, and
                    ``(B) upon request of an individual made at such 
                principal office or such a regional or district office, 
                a copy of such annual return and exempt status 
                application materials shall be provided to such 
                individual without charge other than a reasonable fee 
                for any reproduction and mailing costs.

        The request described in subparagraph (B) must be made in person 
        or in writing. If such request is made in person, such copy 
        shall be provided immediately and, if made in writing, shall be 
        provided within 30 days.
            ``(2) 3-year limitation on inspection of returns.--Paragraph 
        (1) shall apply to an annual return filed under section 6033 
        only during the 3-year period beginning on the last day 
        prescribed for filing such return (determined with regard to any 
        extension of time for filing).
            ``(3) Exceptions from disclosure requirement.--
                    ``(A) Nondisclosure of contributors, etc.--In the 
                case of an organization which is not a private 
                foundation (within the meaning of section 509(a)), 
                paragraph (1) shall not require the disclosure of the 
                name or address of any contributor to the organization. 
                In the case of an organization described in section 
                501(d), paragraph (1) shall not require the disclosure 
                of the copies referred to in section 6031(b) with 
                respect to such organization.
                    ``(B) Nondisclosure of certain other information.--
                Paragraph (1) shall not require the disclosure of any 
                information if the Secretary withheld such information 
                from public inspection under subsection (a)(1)(D).
            ``(4) Limitation on providing copies.--Paragraph (1)(B) 
        shall not apply to any request if, in accordance with 
        regulations promulgated by the Secretary, the organization has 
        made the requested documents widely available, or the Secretary 
        determines, upon application by an organization, that such 
        request is part of a harassment campaign and that compliance 
        with such request is not in the public interest.
            ``(5) Exempt status application materials.--For purposes of 
        paragraph (1), the term `exempt status application materials' 
        means the application for recognition of exemption under section 
        501 and any papers submitted in support of such application and 
        any letter or other document issued by the Internal Revenue 
        Service with respect to such application.''.
            (2) Conforming amendments.--
                    (A) Subsection (c) of section 6033 is amended by 
                adding ``and'' at the end of paragraph (1), by striking 
                paragraph (2), and by redesignating paragraph (3) as 
                paragraph (2).

[[Page 112 STAT. 2681-890]]

                    (B) Subparagraph (C) of section 6652(c)(1) is 
                amended by striking ``subsection (d) or (e)(1) of 
                section 6104 (relating to public inspection of annual 
                returns)'' and inserting ``section 6104(d) with respect 
                to any annual return''.
                    (C) Subparagraph (D) of section 6652(c)(1) is 
                amended by striking ``section 6104(e)(2) (relating to 
                public inspection of applications for exemption)'' and 
                inserting ``section 6104(d) with respect to any exempt 
                status application materials (as defined in such 
                section)''.
                    (D) Section 6685 is amended by striking ``or (e)''.
                    (E) Section 7207 is amended by striking ``or (e)''.
             <> (3) Effective date.--
                    (A) In general.--Except as provided in subparagraph 
                (B), the amendments made by this subsection shall apply 
                to requests made after the later of December 31, 1998, 
                or the 60th day after the Secretary of the Treasury 
                first issues the regulations referred to in section 
                6104(d)(4) of the Internal Revenue Code of 1986, as 
                amended by this section.
                    (B) Publication of annual returns.--Section 6104(d) 
                of such Code, as in effect before the amendments made by 
                this subsection, shall not apply to any return the due 
                date for which is after the date such amendments take 
                effect under subparagraph (A).

SEC. 1005. SUBPART F EXEMPTION FOR ACTIVE FINANCING INCOME.

    (a) Income Derived From Banking, Financing, or Similar Businesses.--
Section 954(h) (relating to income derived in the active conduct of 
banking, financing, or similar businesses) is amended to read as 
follows:
    ``(h) Special Rule for Income Derived in the Active Conduct of 
Banking, Financing, or Similar Businesses.--
            ``(1) In general.--For purposes of subsection (c)(1), 
        foreign personal holding company income shall not include 
        qualified banking or financing income of an eligible controlled 
        foreign corporation.
            ``(2) Eligible controlled foreign corporation.--For purposes 
        of this subsection--
                    ``(A) In general.--The term `eligible controlled 
                foreign corporation' means a controlled foreign 
                corporation which--
                          ``(i) is predominantly engaged in the active 
                      conduct of a banking, financing, or similar 
                      business, and
                          ``(ii) conducts substantial activity with 
                      respect to such business.
                    ``(B) Predominantly engaged.--A controlled foreign 
                corporation shall be treated as predominantly engaged in 
                the active conduct of a banking, financing, or similar 
                business if--
                          ``(i) more than 70 percent of the gross income 
                      of the controlled foreign corporation is derived 
                      directly from the active and regular conduct of a 
                      lending or finance business from transactions with 
                      customers which are not related persons,
                          ``(ii) it is engaged in the active conduct of 
                      a banking business and is an institution licensed 
                      to do business as a bank in the United States (or 
                      is any other

[[Page 112 STAT. 2681-891]]

                      corporation not so licensed which is specified by 
                      the Secretary in regulations), or
                          ``(iii) it is engaged in the active conduct of 
                      a securities business and is registered as a 
                      securities broker or dealer under section 15(a) of 
                      the Securities Exchange Act of 1934 or is 
                      registered as a Government securities broker or 
                      dealer under section 15C(a) of such Act (or is any 
                      other corporation not so registered which is 
                      specified by the Secretary in regulations).
            ``(3) Qualified banking or financing income.--For purposes 
        of this subsection--
                    ``(A) In general.--The term `qualified banking or 
                financing income' means income of an eligible controlled 
                foreign corporation which--
                          ``(i) is derived in the active conduct of a 
                      banking, financing, or similar business by--
                                    ``(I) such eligible controlled 
                                foreign corporation, or
                                    ``(II) a qualified business unit of 
                                such eligible controlled foreign 
                                corporation,
                          ``(ii) is derived from one or more 
                      transactions--
                                    ``(I) with customers located in a 
                                country other than the United States, 
                                and
                                    ``(II) substantially all of the 
                                activities in connection with which are 
                                conducted directly by the corporation or 
                                unit in its home country, and
                          ``(iii) is treated as earned by such 
                      corporation or unit in its home country for 
                      purposes of such country's tax laws.
                    ``(B) Limitation on nonbanking and nonsecurities 
                businesses.--No income of an eligible controlled foreign 
                corporation not described in clause (ii) or (iii) of 
                paragraph (2)(B) (or of a qualified business unit of 
                such corporation) shall be treated as qualified banking 
                or financing income unless more than 30 percent of such 
                corporation's or unit's gross income is derived directly 
                from the active and regular conduct of a lending or 
                finance business from transactions with customers which 
                are not related persons and which are located within 
                such corporation's or unit's home country.
                    ``(C) Substantial activity requirement for cross 
                border income.--The term `qualified banking or financing 
                income' shall not include income derived from 1 or more 
                transactions with customers located in a country other 
                than the home country of the eligible controlled foreign 
                corporation or a qualified business unit of such 
                corporation unless such corporation or unit conducts 
                substantial activity with respect to a banking, 
                financing, or similar business in its home country.
                    ``(D) Determinations made separately.--For purposes 
                of this paragraph, the qualified banking or financing 
                income of an eligible controlled foreign corporation and 
                each qualified business unit of such corporation shall 
                be determined separately for such corporation and each 
                such unit by taking into account--
                          ``(i) in the case of the eligible controlled 
                      foreign corporation, only items of income, 
                      deduction, gain, or

[[Page 112 STAT. 2681-892]]

                      loss and activities of such corporation not 
                      properly allocable or attributable to any 
                      qualified business unit of such corporation, and
                          ``(ii) in the case of a qualified business 
                      unit, only items of income, deduction, gain, or 
                      loss and activities properly allocable or 
                      attributable to such unit.
            ``(4) Lending or finance business.--For purposes of this 
        subsection, the term `lending or finance business' means the 
        business of--
                    ``(A) making loans,
                    ``(B) purchasing or discounting accounts receivable, 
                notes, or installment obligations,
                    ``(C) engaging in leasing (including entering into 
                leases and purchasing, servicing, and disposing of 
                leases and leased assets),
                    ``(D) issuing letters of credit or providing 
                guarantees,
                    ``(E) providing charge and credit card services, or
                    ``(F) rendering services or making facilities 
                available in connection with activities described in 
                subparagraphs (A) through (E) carried on by--
                          ``(i) the corporation (or qualified business 
                      unit) rendering services or making facilities 
                      available, or
                          ``(ii) another corporation (or qualified 
                      business unit of a corporation) which is a member 
                      of the same affiliated group (as defined in 
                      section 1504, but determined without regard to 
                      section 1504(b)(3)).
            ``(5) Other definitions.--For purposes of this subsection--
                    ``(A) Customer.--The term `customer' means, with 
                respect to any controlled foreign corporation or 
                qualified business unit, any person which has a customer 
                relationship with such corporation or unit and which is 
                acting in its capacity as such.
                    ``(B) Home country.--Except as provided in 
                regulations--
                          ``(i) Controlled foreign corporation.--The 
                      term `home country' means, with respect to any 
                      controlled foreign corporation, the country under 
                      the laws of which the corporation was created or 
                      organized.
                          ``(ii) Qualified business unit.--The term 
                      `home country' means, with respect to any 
                      qualified business unit, the country in which such 
                      unit maintains its principal office.
                    ``(C) Located.--The determination of where a 
                customer is located shall be made under rules prescribed 
                by the Secretary.
                    ``(D) Qualified business unit.--The term `qualified 
                business unit' has the meaning given such term by 
                section 989(a).
                    ``(E) Related person.--The term `related person' has 
                the meaning given such term by subsection (d)(3).
            ``(6) Coordination with exception for dealers.--Paragraph 
        (1) shall not apply to income described in subsection 
        (c)(2)(C)(ii) of a dealer in securities (within the meaning of 
        section 475) which is an eligible controlled foreign corporation 
        described in paragraph (2)(B)(iii).
            ``(7) Anti-abuse rules.--For purposes of applying this 
        subsection and subsection (c)(2)(C)(ii)--

[[Page 112 STAT. 2681-893]]

                    ``(A) there shall be disregarded any item of income, 
                gain, loss, or deduction with respect to any transaction 
                or series of transactions one of the principal purposes 
                of which is qualifying income or gain for the exclusion 
                under this section, including any transaction or series 
                of transactions a principal purpose of which is the 
                acceleration or deferral of any item in order to claim 
                the benefits of such exclusion through the application 
                of this subsection,
                    ``(B) there shall be disregarded any item of income, 
                gain, loss, or deduction of an entity which is not 
                engaged in regular and continuous transactions with 
                customers which are not related persons,
                    ``(C) there shall be disregarded any item of income, 
                gain, loss, or deduction with respect to any transaction 
                or series of transactions utilizing, or doing business 
                with--
                          ``(i) one or more entities in order to satisfy 
                      any home country requirement under this 
                      subsection, or
                          ``(ii) a special purpose entity or 
                      arrangement, including a securitization, 
                      financing, or similar entity or arrangement,
                if one of the principal purposes of such transaction or 
                series of transactions is qualifying income or gain for 
                the exclusion under this subsection, and
                    ``(D) a related person, an officer, a director, or 
                an employee with respect to any controlled foreign 
                corporation (or qualified business unit) which would 
                otherwise be treated as a customer of such corporation 
                or unit with respect to any transaction shall not be so 
                treated if a principal purpose of such transaction is to 
                satisfy any requirement of this subsection.
            ``(8) Regulations.--The Secretary shall prescribe such 
        regulations as may be necessary or appropriate to carry out the 
        purposes of this subsection, subsection (c)(1)(B)(i), subsection 
        (c)(2)(C)(ii), and the last sentence of subsection (e)(2).
            ``(9) Application.--This subsection, subsection 
        (c)(2)(C)(ii), and the last sentence of subsection (e)(2) shall 
        apply only to the first taxable year of a foreign corporation 
        beginning after December 31, 1998, and before January 1, 2000, 
        and to taxable years of United States shareholders with or 
        within which such taxable year of such foreign corporation 
        ends.''.

    (b) Income Derived From Insurance Business.--
            (1) Income attributable to issuance or reinsurance.--
                    (A) In general.--Section 953(a) (defining insurance 
                income) is amended to read as follows:

    ``(a) Insurance Income.--
            ``(1) In general.--For purposes of section 952(a)(1), the 
        term `insurance income' means any income which--
                    ``(A) is attributable to the issuing (or reinsuring) 
                of an insurance or annuity contract, and
                    ``(B) would (subject to the modifications provided 
                by subsection (b)) be taxed under subchapter L of this 
                chapter if such income were the income of a domestic 
                insurance company.
            ``(2) Exception.--Such term shall not include any exempt 
        insurance income (as defined in subsection (e)).''.

[[Page 112 STAT. 2681-894]]

                    (B) Exempt insurance income.--Section 953 (relating 
                to insurance income) is amended by adding at the end the 
                following new subsection:

    ``(e) Exempt Insurance Income.--For purposes of this section--
            ``(1) Exempt insurance income defined.--
                    ``(A) In general.--The term `exempt insurance 
                income' means income derived by a qualifying insurance 
                company which--
                          ``(i) is attributable to the issuing (or 
                      reinsuring) of an exempt contract by such company 
                      or a qualifying insurance company branch of such 
                      company, and
                          ``(ii) is treated as earned by such company or 
                      branch in its home country for purposes of such 
                      country's tax laws.
                    ``(B) Exception for certain arrangements.--Such term 
                shall not include income attributable to the issuing (or 
                reinsuring) of an exempt contract as the result of any 
                arrangement whereby another corporation receives a 
                substantially equal amount of premiums or other 
                consideration in respect of issuing (or reinsuring) a 
                contract which is not an exempt contract.
                    ``(C) Determinations made separately.--For purposes 
                of this subsection and section 954(i), the exempt 
                insurance income and exempt contracts of a qualifying 
                insurance company or any qualifying insurance company 
                branch of such company shall be determined separately 
                for such company and each such branch by taking into 
                account--
                          ``(i) in the case of the qualifying insurance 
                      company, only items of income, deduction, gain, or 
                      loss, and activities of such company not properly 
                      allocable or attributable to any qualifying 
                      insurance company branch of such company, and
                          ``(ii) in the case of a qualifying insurance 
                      company branch, only items of income, deduction, 
                      gain, or loss and activities properly allocable or 
                      attributable to such branch.
            ``(2) Exempt contract.--
                    ``(A) In general.--The term `exempt contract' means 
                an insurance or annuity contract issued or reinsured by 
                a qualifying insurance company or qualifying insurance 
                company branch in connection with property in, liability 
                arising out of activity in, or the lives or health of 
                residents of, a country other than the United States.
                    ``(B) Minimum home country income required.--
                          ``(i) In general.--No contract of a qualifying 
                      insurance company or of a qualifying insurance 
                      company branch shall be treated as an exempt 
                      contract unless such company or branch derives 
                      more than 30 percent of its net written premiums 
                      from exempt contracts (determined without regard 
                      to this subparagraph)--
                                    ``(I) which cover applicable home 
                                country risks, and
                                    ``(II) with respect to which no 
                                policyholder, insured, annuitant, or 
                                beneficiary is a related person (as 
                                defined in section 954(d)(3)).

[[Page 112 STAT. 2681-895]]

                          ``(ii) Applicable home country risks.--The 
                      term `applicable home country risks' means risks 
                      in connection with property in, liability arising 
                      out of activity in, or the lives or health of 
                      residents of, the home country of the qualifying 
                      insurance company or qualifying insurance company 
                      branch, as the case may be, issuing or reinsuring 
                      the contract covering the risks.
                    ``(C) Substantial activity requirements for cross 
                border risks.--A contract issued by a qualifying 
                insurance company or qualifying insurance company branch 
                which covers risks other than applicable home country 
                risks (as defined in subparagraph (B)(ii)) shall not be 
                treated as an exempt contract unless such company or 
                branch, as the case may be--
                          ``(i) conducts substantial activity with 
                      respect to an insurance business in its home 
                      country, and
                          ``(ii) performs in its home country 
                      substantially all of the activities necessary to 
                      give rise to the income generated by such 
                      contract.
            ``(3) Qualifying insurance company.--The term `qualifying 
        insurance company' means any controlled foreign corporation 
        which--
                    ``(A) is subject to regulation as an insurance (or 
                reinsurance) company by its home country, and is 
                licensed, authorized, or regulated by the applicable 
                insurance regulatory body for its home country to sell 
                insurance, reinsurance, or annuity contracts to persons 
                other than related persons (within the meaning of 
                section 954(d)(3)) in such home country,
                    ``(B) derives more than 50 percent of its aggregate 
                net written premiums from the issuance or reinsurance by 
                such controlled foreign corporation and each of its 
                qualifying insurance company branches of contracts--
                          ``(i) covering applicable home country risks 
                      (as defined in paragraph (2)) of such corporation 
                      or branch, as the case may be, and
                          ``(ii) with respect to which no policyholder, 
                      insured, annuitant, or beneficiary is a related 
                      person (as defined in section 954(d)(3)),
                except that in the case of a branch, such premiums shall 
                only be taken into account to the extent such premiums 
                are treated as earned by such branch in its home country 
                for purposes of such country's tax laws, and
                    ``(C) is engaged in the insurance business and would 
                be subject to tax under subchapter L if it were a 
                domestic corporation.
            ``(4) Qualifying insurance company branch.--The term 
        `qualifying insurance company branch' means a qualified business 
        unit (within the meaning of section 989(a)) of a controlled 
        foreign corporation if--
                    ``(A) such unit is licensed, authorized, or 
                regulated by the applicable insurance regulatory body 
                for its home country to sell insurance, reinsurance, or 
                annuity contracts to persons other than related persons 
                (within the meaning of section 954(d)(3)) in such home 
                country, and

[[Page 112 STAT. 2681-896]]

                    ``(B) such controlled foreign corporation is a 
                qualifying insurance company, determined under paragraph 
                (3) as if such unit were a qualifying insurance company 
                branch.
            ``(5) Life insurance or annuity contract.--For purposes of 
        this section and section 954, the determination of whether a 
        contract issued by a controlled foreign corporation or a 
        qualified business unit (within the meaning of section 989(a)) 
        is a life insurance contract or an annuity contract shall be 
        made without regard to sections 72(s), 101(f), 817(h), and 7702 
        if--
                    ``(A) such contract is regulated as a life insurance 
                or annuity contract by the corporation's or unit's home 
                country, and
                    ``(B) no policyholder, insured, annuitant, or 
                beneficiary with respect to the contract is a United 
                States person.
            ``(6) Home country.--For purposes of this subsection, except 
        as provided in regulations--
                    ``(A) Controlled foreign corporation.--The term 
                `home country' means, with respect to a controlled 
                foreign corporation, the country in which such 
                corporation is created or organized.
                    ``(B) Qualified business unit.--The term `home 
                country' means, with respect to a qualified business 
                unit (as defined in section 989(a)), the country in 
                which the principal office of such unit is located and 
                in which such unit is licensed, authorized, or regulated 
                by the applicable insurance regulatory body to sell 
                insurance, reinsurance, or annuity contracts to persons 
                other than related persons (as defined in section 
                954(d)(3)) in such country.
            ``(7) Anti-abuse rules.--For purposes of applying this 
        subsection and section 954(i)--
                    ``(A) the rules of section 954(h)(7) (other than 
                subparagraph (B) thereof) shall apply,
                    ``(B) there shall be disregarded any item of income, 
                gain, loss, or deduction of, or derived from, an entity 
                which is not engaged in regular and continuous 
                transactions with persons which are not related persons,
                    ``(C) there shall be disregarded any change in the 
                method of computing reserves a principal purpose of 
                which is the acceleration or deferral of any item in 
                order to claim the benefits of this subsection or 
                section 954(i),
                    ``(D) a contract of insurance or reinsurance shall 
                not be treated as an exempt contract (and premiums from 
                such contract shall not be taken into account for 
                purposes of paragraph (2)(B) or (3)) if--
                          ``(i) any policyholder, insured, annuitant, or 
                      beneficiary is a resident of the United States and 
                      such contract was marketed to such resident and 
                      was written to cover a risk outside the United 
                      States, or
                          ``(ii) the contract covers risks located 
                      within and without the United States and the 
                      qualifying insurance company or qualifying 
                      insurance company branch does not maintain such 
                      contemporaneous records, and file such reports, 
                      with respect to such contract as the Secretary may 
                      require,
                    ``(E) <> the Secretary may 
                prescribe rules for the allocation of contracts (and 
                income from contracts) among 2 or more qualifying 
                insurance company branches of a qualifying

[[Page 112 STAT. 2681-897]]

                insurance company in order to clearly reflect the income 
                of such branches, and
                    ``(F) premiums from a contract shall not be taken 
                into account for purposes of paragraph (2)(B) or (3) if 
                such contract reinsures a contract issued or reinsured 
                by a related person (as defined in section 954(d)(3)).
        For purposes of subparagraph (D), the determination of where 
        risks are located shall be made under the principles of section 
        953.
            ``(8) Coordination with subsection (c).--In determining 
        insurance income for purposes of subsection (c), exempt 
        insurance income shall not include income derived from exempt 
        contracts which cover risks other than applicable home country 
        risks.
            ``(9) Regulations.--The Secretary shall prescribe such 
        regulations as may be necessary or appropriate to carry out the 
        purposes of this subsection and section 954(i).
            ``(10) Application.--This subsection and section 954(i) 
        shall apply only to the first taxable year of a foreign 
        corporation beginning after December 31, 1998, and before 
        January 1, 2000, and to taxable years of United States 
        shareholders with or within which such taxable year of such 
        foreign corporation ends.
            ``(11) Cross reference.--

                  ``For income exempt from foreign personal holding 
                company income, see section 954(i).''.

            (2) Exemption from foreign personal holding company 
        income.--Section 954 (defining foreign base company income) is 
        amended by adding at the end the following new subsection:

    ``(i) Special Rule for Income Derived in the Active Conduct of 
Insurance Business.--
            ``(1) In general.--For purposes of subsection (c)(1), 
        foreign personal holding company income shall not include 
        qualified insurance income of a qualifying insurance company.
            ``(2) Qualified insurance income.--The term `qualified 
        insurance income' means income of a qualifying insurance company 
        which is--
                    ``(A) received from a person other than a related 
                person (within the meaning of subsection (d)(3)) and 
                derived from the investments made by a qualifying 
                insurance company or a qualifying insurance company 
                branch of its reserves allocable to exempt contracts or 
                of 80 percent of its unearned premiums from exempt 
                contracts (as both are determined in the manner 
                prescribed under paragraph (4)), or
                    ``(B) received from a person other than a related 
                person (within the meaning of subsection (d)(3)) and 
                derived from investments made by a qualifying insurance 
                company or a qualifying insurance company branch of an 
                amount of its assets allocable to exempt contracts equal 
                to--
                          ``(i) in the case of property, casualty, or 
                      health insurance contracts, one-third of its 
                      premiums earned on such insurance contracts during 
                      the taxable year (as defined in section 
                      832(b)(4)), and
                          ``(ii) in the case of life insurance or 
                      annuity contracts, 10 percent of the reserves 
                      described in subparagraph (A) for such contracts.

[[Page 112 STAT. 2681-898]]

            ``(3) Principles for determining insurance income.--Except 
        as provided by the Secretary, for purposes of subparagraphs (A) 
        and (B) of paragraph (2)--
                    ``(A) in the case of any contract which is a 
                separate account-type contract (including any variable 
                contract not meeting the requirements of section 817), 
                income credited under such contract shall be allocable 
                only to such contract, and
                    ``(B) income not allocable under subparagraph (A) 
                shall be allocated ratably among contracts not described 
                in subparagraph (A).
            ``(4) Methods for determining unearned premiums and 
        reserves.--For purposes of paragraph (2)(A)--
                    ``(A) Property and casualty contracts.--The unearned 
                premiums and reserves of a qualifying insurance company 
                or a qualifying insurance company branch with respect to 
                property, casualty, or health insurance contracts shall 
                be determined using the same methods and interest rates 
                which would be used if such company or branch were 
                subject to tax under subchapter L, except that--
                          ``(i) the interest rate determined for the 
                      functional currency of the company or branch, and 
                      which, except as provided by the Secretary, is 
                      calculated in the same manner as the Federal mid-
                      term rate under section 1274(d), shall be 
                      substituted for the applicable Federal interest 
                      rate, and
                          ``(ii) such company or branch shall use the 
                      appropriate foreign loss payment pattern.
                    ``(B) Life insurance and annuity contracts.--The 
                amount of the reserve of a qualifying insurance company 
                or qualifying insurance company branch for any life 
                insurance or annuity contract shall be equal to the 
                greater of--
                          ``(i) the net surrender value of such contract 
                      (as defined in section 807(e)(1)(A)), or
                          ``(ii) the reserve determined under paragraph 
                      (5).
                    ``(C) Limitation on reserves.--In no event shall the 
                reserve determined under this paragraph for any contract 
                as of any time exceed the amount which would be taken 
                into account with respect to such contract as of such 
                time in determining foreign statement reserves (less any 
                catastrophe, deficiency, equalization, or similar 
                reserves).
            ``(5) Amount of reserve.--The amount of the reserve 
        determined under this paragraph with respect to any contract 
        shall be determined in the same manner as it would be determined 
        if the qualifying insurance company or qualifying insurance 
        company branch were subject to tax under subchapter L, except 
        that in applying such subchapter--
                    ``(A) the interest rate determined for the 
                functional currency of the company or branch, and which, 
                except as provided by the Secretary, is calculated in 
                the same manner as the Federal mid-term rate under 
                section 1274(d), shall be substituted for the applicable 
                Federal interest rate,
                    ``(B) the highest assumed interest rate permitted to 
                be used in determining foreign statement reserves shall

[[Page 112 STAT. 2681-899]]

                be substituted for the prevailing State assumed interest 
                rate, and
                    ``(C) tables for mortality and morbidity which 
                reasonably reflect the current mortality and morbidity 
                risks in the company's or branch's home country shall be 
                substituted for the mortality and morbidity tables 
                otherwise used for such subchapter.
        The Secretary may provide that the interest rate and mortality 
        and morbidity tables of a qualifying insurance company may be 
        used for 1 or more of its qualifying insurance company branches 
        when appropriate.
            ``(6) Definitions.--For purposes of this subsection, any 
        term used in this subsection which is also used in section 
        953(e) shall have the meaning given such term by section 953.''.
            (3) Reserves.--Section 953(b) is amended by redesignating 
        paragraph (3) as paragraph (4) and by inserting after paragraph 
        (2) the following new paragraph:
            ``(3) Reserves for any insurance or annuity contract shall 
        be determined in the same manner as under section 954(i).''.

    (c) Special Rules for Dealers.--Section 954(c)(2)(C) is amended to 
read as follows:
                    ``(C) Exception for dealers.--Except as provided by 
                regulations, in the case of a regular dealer in property 
                which is property described in paragraph (1)(B), forward 
                contracts, option contracts, or similar financial 
                instruments (including notional principal contracts and 
                all instruments referenced to commodities), there shall 
                not be taken into account in computing foreign personal 
                holding company income--
                          ``(i) any item of income, gain, deduction, or 
                      loss (other than any item described in 
                      subparagraph (A), (E), or (G) of paragraph (1)) 
                      from any transaction (including hedging 
                      transactions) entered into in the ordinary course 
                      of such dealer's trade or business as such a 
                      dealer, and
                          ``(ii) if such dealer is a dealer in 
                      securities (within the meaning of section 475), 
                      any interest or dividend or equivalent amount 
                      described in subparagraph (E) or (G) of paragraph 
                      (1) from any transaction (including any hedging 
                      transaction or transaction described in section 
                      956(c)(2)(J)) entered into in the ordinary course 
                      of such dealer's trade or business as such a 
                      dealer in securities, but only if the income from 
                      the transaction is attributable to activities of 
                      the dealer in the country under the laws of which 
                      the dealer is created or organized (or in the case 
                      of a qualified business unit described in section 
                      989(a), is attributable to activities of the unit 
                      in the country in which the unit both maintains 
                      its principal office and conducts substantial 
                      business activity).''.

    (d) Exemption From Foreign Base Company Services Income.--Paragraph 
(2) of section 954(e) is amended by inserting ``or'' at the end of 
subparagraph (A), by striking ``, or'' at the end of subparagraph (B) 
and inserting a period, by striking subparagraph (C), and by adding at 
the end the following new flush sentence:

[[Page 112 STAT. 2681-900]]

        ``Paragraph (1) shall also not apply to income which is exempt 
        insurance income (as defined in section 953(e)) or which is not 
        treated as foreign personal holding income by reason of 
        subsection (c)(2)(C)(ii), (h), or (i).''.

    (e) Exemption for Gain.--Section 954(c)(1)(B)(i) (relating to net 
gains from certain property transactions) is amended by inserting 
``other than property which gives rise to income not treated as foreign 
personal holding company income by reason of subsection (h) or (i) for 
the taxable year'' before the comma at the end.

SEC. 1006. DISCLOSURE OF RETURN INFORMATION ON INCOME CONTINGENT STUDENT 
            LOANS.

    Subparagraph (D) of section 6103(l)(13) (relating to disclosure of 
return information to carry out income contingent repayment of student 
loans) is amended by striking ``September 30, 1998'' and inserting 
``September 30, 2003''.

                      Subtitle B--Trade Provisions

SEC. 1011. EXTENSION OF DUTY-FREE TREATMENT UNDER GENERALIZED SYSTEM OF 
            PREFERENCES.

    (a) In General.--Section 505 of the Trade Act of 1974 (19 U.S.C. 
2465) is amended by striking ``June 30, 1998'' and inserting ``June 30, 
1999''.
     <> (b) Effective Date.--
            (1) In general.--The amendments made by this section apply 
        to articles entered on or after the date of the enactment of 
        this Act.
            (2) Retroactive application for certain liquidations and 
        reliquidations.--
                    (A) General rule.--Notwithstanding section 514 of 
                the Tariff Act of 1930 or any other provision of law, 
                and subject to paragraph (3), any entry--
                          (i) of an article to which duty-free treatment 
                      under title V of the Trade Act of 1974 would have 
                      applied if such entry had been made on July 1, 
                      1998, and such title had been in effect on July 1, 
                      1998, and
                          (ii) that was made--
                                    (I) after June 30, 1998, and
                                    (II) before the date of enactment of 
                                this Act,
                shall be liquidated or reliquidated as free of duty, and 
                the Secretary of the Treasury shall refund any duty paid 
                with respect to such entry.
                    (B) Entry.--As used in this paragraph, the term 
                ``entry'' includes a withdrawal from warehouse for 
                consumption.
            (3) Requests.--Liquidation or reliquidation may be made 
        under paragraph (2) with respect to an entry only if a request 
        therefor is filed with the Customs Service, within 180 days 
        after the date of enactment of this Act, that contains 
        sufficient information to enable the Customs Service--
                    (A) to locate the entry; or
                    (B) to reconstruct the entry if it cannot be 
                located.

SEC. 1012. TRADE ADJUSTMENT ASSISTANCE.

    (a) Assistance for Workers.--Section 245 of the Trade Act of 1974 
(19 U.S.C. 2317) is amended--

[[Page 112 STAT. 2681-901]]

            (1) in subsection (a), by striking ``for each of'' and all 
        that follows through ``1998,'' and inserting ``for the period 
        beginning October 1, 1998, and ending June 30, 1999,''; and
            (2) in subsection (b), by striking ``for each of'' and all 
        that follows through ``1998,'' and inserting ``for the period 
        beginning October 1, 1998, and ending June 30, 1999,''.

    (b) NAFTA Transitional Program.--Section 250(d)(2) of the Trade Act 
of 1974 (19 U.S.C. 2331(d)(2)) is amended by striking ``for any fiscal 
year shall not exceed $30,000,000'' and inserting ``for the period 
beginning October 1, 1998, and ending June 30, 1999, shall not exceed 
$15,000,000''.
    (c) Adjustment Assistance for Firms.--Section 256(b) of the Trade 
Act of 1974 (19 U.S.C. 2346(b)) is amended by striking ``for fiscal 
years'' and all that follows through ``1998'' and inserting ``for the 
period beginning October 1, 1998, and ending June 30, 1999''.
    (d) Termination.--Section 285(c) of the Trade Act of 1974 (19 U.S.C. 
2271 note preceding) is amended--
            (1) in paragraph (1), by striking ``September 30, 1998'' and 
        inserting ``June 30, 1999''; and
            (2) in paragraph (2)(A), by striking ``the day that is'' and 
        all that follows through ``effective'' and inserting ``June 30, 
        1999''.

                     TITLE II--OTHER TAX PROVISIONS

             Subtitle A--Provisions Relating to Individuals

SEC. 2001. NONREFUNDABLE PERSONAL CREDITS FULLY ALLOWED AGAINST REGULAR 
            TAX LIABILITY DURING 1998.

    (a) In General.--Subsection (a) of section 26 is amended by adding 
at the end the following flush sentence:
``For purposes of paragraph (2), the taxpayer's tentative minimum tax 
for any taxable year beginning during 1998 shall be treated as being 
zero.''
    (b) Conforming Amendment.--Section 24(d)(2) is amended by striking 
``The credit'' and inserting ``For taxable years beginning after 
December 31, 1998, the credit''.
     <> (c) Effective Date.--The amendments made 
by this section shall apply to taxable years beginning after December 
31, 1997.

SEC. 2002. 100 PERCENT DEDUCTION FOR HEALTH INSURANCE COSTS OF SELF-
            EMPLOYED INDIVIDUALS.

    (a) In General.--The table contained in subparagraph (B) of section 
162(l)(1) (relating to special rules for health insurance costs of self-
employed individuals) is amended to read as follows:

``For taxable years beginnThe applicable percentage is--
        in calendar year--
1999 through 2001                                                    60 
2002                                                                 70 
2003 and thereafter                                               100.''

       <> (b) Effective Date.--
The amendment made by this section shall apply to taxable years 
beginning after December 31, 1998.

SEC. 2003. MODIFICATION OF ESTIMATED TAX SAFE HARBORS.

      (a) In General.--The table contained in clause (i) of section 
6654(d)(1)(C) (relating to limitation on use of preceding year's tax)

[[Page 112 STAT. 2681-902]]

is amended by striking the item relating to 1998, 1999, or 2000 and 
inserting the following new items:

``1998                                                              105 
1999 or 2000                                                      106''.

       <> (b) Effective Date.--
The amendment made by this section shall apply with respect to any 
installment payment for taxable years beginning after December 31, 1999.

               Subtitle B--Provisions Relating to Farmers

SEC. 2011. INCOME AVERAGING FOR FARMERS MADE PERMANENT.

    Subsection (c) of section 933 of the Taxpayer Relief Act of 
1997 <> is amended by striking ``, and before 
January 1, 2001''.

SEC. 2012. PRODUCTION FLEXIBILITY CONTRACT PAYMENTS.

    (a) In General.-- <> The options under 
paragraphs (2) and (3) of section 112(d) of the Federal Agriculture 
Improvement and Reform Act of 1996 (7 U.S.C. 7212(d) (2) and (3)), as in 
effect on the date of the enactment of this Act, shall be disregarded in 
determining the taxable year for which any payment under a production 
flexibility contract under subtitle B of title I of such Act (as so in 
effect) is properly includible in gross income for purposes of the 
Internal Revenue Code of 1986.

     <> (b) Effective Date.--Subsection (a) shall 
apply to taxable years ending after December 31, 1995.

SEC. 2013. 5-YEAR NET OPERATING LOSS CARRYBACK FOR FARMING LOSSES.

    (a) In General.--Paragraph (1) of section 172(b) (relating to net 
operating loss deduction) is amended by adding at the end the following 
new subparagraph:
                    ``(G) Farming losses.--In the case of a taxpayer 
                which has a farming loss (as defined in subsection (i)) 
                for a taxable year, such farming loss shall be a net 
                operating loss carryback to each of the 5 taxable years 
                preceding the taxable year of such loss.''.

    (b) Farming Loss.--Section 172 is amended by redesignating 
subsection (i) as subsection (j) and by inserting after subsection (h) 
the following new subsection:
    ``(i) Rules Relating to Farming Losses.--For purposes of this 
section--
            ``(1) In general.--The term `farming loss' means the lesser 
        of--
                    ``(A) the amount which would be the net operating 
                loss for the taxable year if only income and deductions 
                attributable to farming businesses (as defined in 
                section 263A(e)(4)) are taken into account, or
                    ``(B) the amount of the net operating loss for such 
                taxable year.
            ``(2) Coordination with subsection (b)(2).--For purposes of 
        applying subsection (b)(2), a farming loss for any taxable year 
        shall be treated in a manner similar to the manner in which a 
        specified liability loss is treated.
            ``(3) Election.--Any taxpayer entitled to a 5-year carryback 
        under subsection (b)(1)(G) from any loss year may elect to have 
        the carryback period with respect to such loss year determined 
        without regard to subsection (b)(1)(G). Such election shall be 
        made in such manner as may be prescribed

[[Page 112 STAT. 2681-903]]

        by the Secretary and shall be made by the due date (including 
        extensions of time) for filing the taxpayer's return for the 
        taxable year of the net operating loss. Such election, once made 
        for any taxable year, shall be irrevocable for such taxable 
        year.''.

    (c) Coordination With Farm Disaster Losses.--Clause (ii) of section 
172(b)(1)(F) is amended by adding at the end the following flush 
sentence:
                      ``Such term shall not include any farming loss (as 
                      defined in subsection (i)).''.

     <> (d) Effective Date.--The 
amendments made by this section shall apply to net operating losses for 
taxable years beginning after December 31, 1997.

                  Subtitle C--Miscellaneous Provisions

SEC. 2021. INCREASE IN VOLUME CAP ON PRIVATE ACTIVITY BONDS.

    (a) In General.--Subsection (d) of section 146 (relating to volume 
cap) is amended by striking paragraphs (1) and (2) and inserting the 
following new paragraphs:
            ``(1) In general.--The State ceiling applicable to any State 
        for any calendar year shall be the greater of--
                    ``(A) an amount equal to the per capita limit for 
                such year multiplied by the State population, or
                    ``(B) the aggregate limit for such year.
        Subparagraph (B) shall not apply to any possession of the United 
        States.
            ``(2) Per capita limit; aggregate limit.--For purposes of 
        paragraph (1), the per capita limit, and the aggregate limit, 
        for any calendar year shall be determined in accordance with the 
        following table:
      

 
              Calendar Year                        Per Capita Limit                    Aggregate Limit
  1999 through 2002......................                $50                            $150,000,000
  2003...................................                 55                             165,000,000
  2004...................................                 60                             180,000,000
  2005...................................                 65                             195,000,000
  2006...................................                 70                             210,000,000
  2007 and thereafter....................                 75                            225,000,000.''

     <> (b) Effective Date.--The amendment made 
by this section shall apply to calendar years after 1998.

SEC. 2022. <> DEPRECIATION STUDY.

    The Secretary of the Treasury (or the Secretary's delegate)--
            (1) shall conduct a comprehensive study of the recovery 
        periods and depreciation methods under section 168 of the 
        Internal Revenue Code of 1986, and
            (2) not later than March 31, 2000, shall submit the results 
        of such study, together with recommendations for determining 
        such periods and methods in a more rational manner, to the 
        Committee on Ways and Means of the House of Representatives and 
        the Committee on Finance of the Senate.

[[Page 112 STAT. 2681-904]]

SEC. 2023. <> EXEMPTION FOR STUDENTS EMPLOYED BY 
            STATE SCHOOLS, COLLEGES, OR UNIVERSITIES.

    (a) In General.--Notwithstanding section 218 of the Social Security 
Act, any agreement with a State (or any modification thereof) entered 
into pursuant to such section may, at the option of such State, be 
modified at any time on or after January 1, 1999, and on or before March 
31, 1999, so as to exclude service performed in the employ of a school, 
college, or university if such service is performed by a student who is 
enrolled and is regularly attending classes at such school, college, or 
university.
    (b) Effective Date of Modification.--Any modification of an 
agreement pursuant to subsection (a) shall be effective with respect to 
services performed after June 30, 2000.
    (c) Irrevocability of Modification.--If any modification of an 
agreement pursuant to subsection (a) terminates coverage with respect to 
service performed in the employ of a school, college, or university, by 
a student who is enrolled and regularly attending classes at such 
school, college, or university, the Commissioner of Social Security and 
the State may not thereafter modify such agreement so as to again make 
the agreement applicable to such service performed in the employ of such 
school, college, or university.

                       TITLE III--REVENUE OFFSETS

SEC. 3001. TREATMENT OF CERTAIN DEDUCTIBLE LIQUIDATING DISTRIBUTIONS OF 
            REGULATED INVESTMENT COMPANIES AND REAL ESTATE INVESTMENT 
            TRUSTS.

    (a) In General.--Section 332 (relating to complete liquidations of 
subsidiaries) is amended by adding at the end the following new 
subsection:

    ``(c) Deductible Liquidating Distributions of Regulated Investment 
Companies and Real Estate Investment Trusts.--If a corporation receives 
a distribution from a regulated investment company or a real estate 
investment trust which is considered under subsection (b) as being in 
complete liquidation of such company or trust, then, notwithstanding any 
other provision of this chapter, such corporation shall recognize and 
treat as a dividend from such company or trust an amount equal to the 
deduction for dividends paid allowable to such company or trust by 
reason of such distribution.''.
    (b) Conforming Amendments.--
            (1) The material preceding paragraph (1) of section 332(b) 
        is amended by striking ``subsection (a)'' and inserting ``this 
        section''.
            (2) Paragraph (1) of section 334(b) is amended by striking 
        ``section 332(a)'' and inserting ``section 332''.

     <> (c) Effective Date.--The amendments made 
by this section shall apply to distributions after May 21, 1998.

    (d) Assumptions.--In making the estimate required for this Act by 
section 252(d)(2) of the Balanced Budget and Emergency Deficit Control 
Act of 1985, that part of the estimate that measures the change in 
receipts resulting from the amendments made by this section shall be 
based on the economic and technical assumptions underlying the 
supplemental summary of the budget for fiscal year 1999, submitted on 
May 26, 1998, pursuant to section 1106 of title 31, United States Code, 
notwithstanding section 252(d)(2)(B).

[[Page 112 STAT. 2681-905]]

All other parts of such estimate required by such section 252(d)(2) 
shall be made pursuant to the requirements of such section 252(d)(2)(B).

SEC. 3002. INCLUSION OF ROTAVIRUS GASTROENTERITIS AS A TAXABLE VACCINE.

    (a) In General.--Paragraph (1) of section 4132(a) (defining taxable 
vaccine) is amended by adding at the end the following new subparagraph:
                    ``(K) Any vaccine against rotavirus 
                gastroenteritis.''.

     <> (b) Effective Date.--
            (1) Sales.--The amendment made by this section shall apply 
        to sales after the date of the enactment of this Act.
            (2) Deliveries.--For purposes of paragraph (1), in the case 
        of sales on or before the date of the enactment of this Act for 
        which delivery is made after such date, the delivery date shall 
        be considered the sale date.

SEC. 3003. CLARIFICATION AND EXPANSION OF MATHEMATICAL ERROR ASSESSMENT 
            PROCEDURES.

    (a) TIN Deemed Incorrect if Information on Return Differs With 
Agency Records.--Paragraph (2) of section 6213(g) (defining mathematical 
or clerical error) is amended by adding at the end the following flush 
sentence:
        ``A taxpayer shall be treated as having omitted a correct TIN 
        for purposes of the preceding sentence if information provided 
        by the taxpayer on the return with respect to the individual 
        whose TIN was provided differs from the information the 
        Secretary obtains from the person issuing the TIN.''.

    (b) Expansion of Mathematical Error Procedures to Cases Where TIN 
Establishes Individual Not Eligible for Tax Credit.--Paragraph (2) of 
section 6213(g) is amended by striking ``and'' at the end of 
subparagraph (J), by striking the period at the end of the subparagraph 
(K) and inserting ``, and'', and by inserting after subparagraph (K) the 
following new subparagraph:
                    ``(L) the inclusion on a return of a TIN required to 
                be included on the return under section 21, 24, or 32 
                if--
                          ``(i) such TIN is of an individual whose age 
                      affects the amount of the credit under such 
                      section, and
                          ``(ii) the computation of the credit on the 
                      return reflects the treatment of such individual 
                      as being of an age different from the individual's 
                      age based on such TIN.''.

     <> (c) Effective Date.--The amendments 
made by this section shall apply to taxable years ending after the date 
of the enactment of this Act.

SEC. 3004. CLARIFICATION OF DEFINITION OF SPECIFIED LIABILITY LOSS.

    (a) In General.--Subparagraph (B) of section 172(f)(1) (defining 
specified liability loss) is amended to read as follows:
                    ``(B)(i) Any amount allowable as a deduction under 
                this chapter (other than section 468(a)(1) or 468A(a)) 
                which is in satisfaction of a liability under a Federal 
                or State law requiring--
                          ``(I) the reclamation of land,

[[Page 112 STAT. 2681-906]]

                          ``(II) the decommissioning of a nuclear power 
                      plant (or any unit thereof),
                          ``(III) the dismantlement of a drilling 
                      platform,
                          ``(IV) the remediation of environmental 
                      contamination, or
                          ``(V) a payment under any workers compensation 
                      act (within the meaning of section 
                      461(h)(2)(C)(i)).
                    ``(ii) A liability shall be taken into account under 
                this subparagraph only if--
                          ``(I) the act (or failure to act) giving rise 
                      to such liability occurs at least 3 years before 
                      the beginning of the taxable year, and
                          ``(II) the taxpayer used an accrual method of 
                      accounting throughout the period or periods during 
                      which such act (or failure to act) occurred.''.

     <> (b) Effective Date.--The amendment made 
by this section shall apply to net operating losses arising in taxable 
years ending after the date of the enactment of this Act.

                     TITLE IV--TECHNICAL CORRECTIONS

SEC. 4001. DEFINITIONS; COORDINATION WITH <> OTHER 
            TITLES.

    (a) Definitions.--For purposes of this title--
            (1) 1986 code.--The term ``1986 Code'' means the Internal 
        Revenue Code of 1986.
            (2) 1998 act.--The term ``1998 Act'' means the Internal 
        Revenue Service Restructuring and Reform Act of 1998 (Public Law 
        105-206).
            (3) 1997 act.--The term ``1997 Act'' means the Taxpayer 
        Relief Act of 1997 (Public Law 105-34).

    (b) Coordination With Other Titles.--For purposes of applying the 
amendments made by any title of this division other than this title, the 
provisions of this title shall be treated as having been enacted 
immediately before the provisions of such other titles.

SEC. 4002. AMENDMENTS RELATED TO INTERNAL REVENUE SERVICE RESTRUCTURING 
            AND REFORM ACT OF 1998.

    (a) Amendment Related to Section 1101 of 1998 Act.--Paragraph (5) of 
section 6103(h) of the 1986 Code, as added by section 1101(b) of the 
1998 Act, is redesignated as paragraph (6).
    (b) Amendment Related to Section 3001 of 1998 Act.--Paragraph (2) of 
section 7491(a) of the 1986 Code is amended by adding at the end the 
following flush sentence:
        ``Subparagraph (C) shall not apply to any qualified revocable 
        trust (as defined in section 645(b)(1)) with respect to 
        liability for tax for any taxable year ending after the date of 
        the decedent's death and before the applicable date (as defined 
        in section 645(b)(2)).''.

    (c) Amendments Related to Section 3201 of 1998 Act.--
            (1) Section 7421(a) of the 1986 Code is amended by striking 
        ``6015(d)'' and inserting ``6015(e)''.
            (2) Subparagraph (A) of section 6015(e)(3) is amended by 
        striking ``of this section'' and inserting ``of subsection (b) 
        or (f)''.

    (d) Amendment Related to Section 3301 of 1998 Act.--Paragraph (2) of 
section 3301(c) of the 1998 Act <> is amended 
by striking ``The amendments'' and inserting ``Subject to any applicable

[[Page 112 STAT. 2681-907]]

statute of limitation not having expired with regard to either a tax 
underpayment or a tax overpayment, the amendments''.

     <> (e) Amendment Related to Section 3401 of 
1998 Act.--Section 3401(c) of the 1998 Act is amended--
            (1) in paragraph (1), by striking ``7443(b)'' and inserting 
        ``7443A(b)''; and
            (2) in paragraph (2), by striking ``7443(c)'' and inserting 
        ``7443A(c)''.

    (f) Amendment Related to Section 3433 of 1998 Act.--Section 7421(a) 
of the 1986 Code is amended by inserting ``6331(i),'' after 
``6246(b),''.
    (g) Amendment Related to Section 3467 of 1998 Act.--The subsection 
(d) of section 6159 of the 1986 Code relating to cross reference is 
redesignated as subsection (e).
    (h) Amendment Related to Section 3708 of 1998 Act.--Subparagraph (A) 
of section 6103(p)(3) of the 1986 Code is amended by inserting 
``(f)(5),'' after ``(c), (e),''.
    (i) Amendments Related to Section 5001 of 1998 Act.--
            (1) Subparagraph (B) of section 1(h)(13) of the 1986 Code is 
        amended by striking ``paragraph (7)(A)'' and inserting 
        ``paragraph (7)(A)(i)''.
             <> (2)(A) Subparagraphs (A)(i)(II), 
        (A)(ii)(II), and (B)(ii) of section 1(h)(13) of the 1986 Code 
        shall not apply to any distribution after December 31, 1997, by 
        a regulated investment company or a real estate investment trust 
        with respect to--
                    (i) gains and losses recognized directly by such 
                company or trust, and
                    (ii) amounts properly taken into account by such 
                company or trust by reason of holding (directly or 
                indirectly) an interest in another such company or trust 
                to the extent that such subparagraphs did not apply to 
                such other company or trust with respect to such 
                amounts.
            (B) Subparagraph (A) shall not apply to any distribution 
        which is treated under section 852(b)(7) or 857(b)(8) of the 
        1986 Code as received on December 31, 1997.
            (C) For purposes of subparagraph (A), any amount which is 
        includible in gross income of its shareholders under section 
        852(b)(3)(D) or 857(b)(3)(D) of the 1986 Code after December 31, 
        1997, shall be treated as distributed after such date.
            (D)(i) For purposes of subparagraph (A), in the case of a 
        qualified partnership with respect to which a regulated 
        investment company meets the holding requirement of clause 
        (iii)--
                    (I) the subparagraphs referred to in subparagraph 
                (A) shall not apply to gains and losses recognized 
                directly by such partnership for purposes of determining 
                such company's distributive share of such gains and 
                losses, and
                    (II) such company's distributive share of such gains 
                and losses (as so determined) shall be treated as 
                recognized directly by such company.
        <> The preceding sentence shall apply only 
        if the qualified partnership provides the company with written 
        documentation of such distributive share as so determined.
            (ii) For purposes of clause (i), the term ``qualified 
        partnership'' means, with respect to a regulated investment 
        company, any partnership if--
                    (I) the partnership is an investment company 
                registered under the Investment Company Act of 1940,

[[Page 112 STAT. 2681-908]]

                    (II) the regulated investment company is permitted 
                to invest in such partnership by reason of section 
                12(d)(1)(E) of such Act or an exemptive order of the 
                Securities and Exchange Commission under such section, 
                and
                    (III) the regulated investment company and the 
                partnership have the same taxable year.
            (iii) A regulated investment company meets the holding 
        requirement of this clause with respect to a qualified 
        partnership if (as of January 1, 1998)--
                    (I) the value of the interests of the regulated 
                investment company in such partnership is 35 percent or 
                more of the value of such company's total assets, or
                    (II) the value of the interests of the regulated 
                investment company in such partnership and all other 
                qualified partnerships is 90 percent or more of the 
                value of such company's total assets.
            (3) Paragraph (13) of section 1(h) of the 1986 Code is 
        amended by adding at the end the following new subparagraph:
                    ``(D) Charitable remainder trusts.--Subparagraphs 
                (A) and (B)(ii) shall not apply to any capital gain 
                distribution made by a trust described in section 664.''

    (j) Amendment Related to Section 7004 of 1998 Act.--Clause (i) of 
section 408A(c)(3)(C) of the 1986 Code, as amended by section 7004 of 
the 1998 Act, is amended by striking the period at the end of subclause 
(II) and inserting ``, and''.
    (k) Effective Date <> .--The amendments made 
by this section shall take effect as if included in the provisions of 
the 1998 Act to which they relate.

SEC. 4003. AMENDMENTS RELATED TO TAXPAYER RELIEF ACT OF 1997.

    (a) Amendments Related to Section 202 of 1997 Act.--
            (1) Paragraph (2) of section 163(h) of the 1986 Code is 
        amended by striking ``and'' at the end of subparagraph (D), by 
        striking the period at the end of subparagraph (E) and inserting 
        ``, and'', and by adding at the end the following new 
        subparagraph:
                    ``(F) any interest allowable as a deduction under 
                section 221 (relating to interest on educational 
                loans).''
            (2)(A) Subparagraph (C) of section 221(b)(2) of the 1986 
        Code is amended--
                    (i) by striking ``135, 137,'' in clause (i),
                    (ii) by inserting ``135, 137,'' after ``sections 
                86,'' in clause (ii), and
                    (iii) by striking the last sentence.
            (B) Sections 86(b)(2)(A), 135(c)(4)(A), and 219(g)(3)(A)(ii) 
        of the 1986 Code are each amended by inserting ``221,'' after 
        ``137,''.
            (C) Subparagraph (A) of section 137(b)(3) of the 1986 Code 
        is amended by inserting ``221,'' before ``911,''.
            (D) Clause (iii) of section 469(i)(3)(E) of the 1986 Code is 
        amended to read as follows:
                          ``(iii) the amounts allowable as a deduction 
                      under sections 219 and 221, and''.
            (3) The last sentence of section 221(e)(1) of the 1986 Code 
        is amended by inserting before the period ``or to any person by 
        reason of a loan under any qualified employer plan (as

[[Page 112 STAT. 2681-909]]

        defined in section 72(p)(4)) or under any contract referred to 
        in section 72(p)(5)''.

     <> (b) Provision Related to Section 311 of 
1997 Act.--In the case of any capital gain distribution made after 1997 
by a trust to which section 664 of the 1986 Code applies with respect to 
amounts properly taken into account by such trust during 1997, 
paragraphs (5)(A)(i)(I), (5)(A)(ii)(I), and (13)(A) of section 1(h) of 
the 1986 Code (as in effect for taxable years ending on December 31, 
1997) shall not apply.

    (c) Amendment Related to Section 506 of 1997 Act.--Section 
2001(f)(2) of the 1986 Code is amended by adding at the end the 
following:
        ``For purposes of subparagraph (A), the value of an item shall 
        be treated as shown on a return if the item is disclosed in the 
        return, or in a statement attached to the return, in a manner 
        adequate to apprise the Secretary of the nature of such item.''.

    (d) Amendments Related to Section 904 of 1997 Act.--
            (1) Paragraph (1) of section 9510(c) of the 1986 Code is 
        amended to read as follows:
            ``(1) In general.--Amounts in the Vaccine Injury 
        Compensation Trust Fund shall be available, as provided in 
        appropriation Acts, only for--
                    ``(A) the payment of compensation under subtitle 2 
                of title XXI of the Public Health Service Act (as in 
                effect on August 5, 1997) for vaccine-related injury or 
                death with respect to any vaccine--
                          ``(i) which is administered after September 
                      30, 1988, and
                          ``(ii) which is a taxable vaccine (as defined 
                      in section 4132(a)(1)) at the time compensation is 
                      paid under such subtitle 2, or
                    ``(B) the payment of all expenses of administration 
                (but not in excess of $9,500,000 for any fiscal year) 
                incurred by the Federal Government in administering such 
                subtitle.''.
            (2) Section 9510(b) of the 1986 Code is amended by adding at 
        the end the following new paragraph:
            ``(3) Limitation on transfers to vaccine injury compensation 
        trust fund.--No amount may be appropriated to the Vaccine Injury 
        Compensation Trust Fund on and after the date of any expenditure 
        from the Trust Fund which is not permitted by this section. The 
        determination of whether an expenditure is so permitted shall be 
        made without regard to--
                    ``(A) any provision of law which is not contained or 
                referenced in this title or in a revenue Act, and
                    ``(B) whether such provision of law is a 
                subsequently enacted provision or directly or indirectly 
                seeks to waive the application of this paragraph.''.

    (e) Amendments Related to Section 915 of 1997 Act.--
             <> (1) Section 915(b) of the 1997 
        Act is amended by inserting ``or 1998'' after ``1997''.
            (2) Paragraph (2) of section 6404(h) of the 1986 Code is 
        amended by inserting ``Robert T. Stafford'' before ``Disaster''.

    (f) Amendments Related to Section 1012 of 1997 Act.--

[[Page 112 STAT. 2681-910]]

            (1) Paragraph (2) of section 351(c) of the 1986 Code, as 
        amended by section 6010(c) of the 1998 Act, is amended by 
        inserting ``, or the fact that the corporation whose stock was 
        distributed issues additional stock,'' after ``dispose of part 
        or all of the distributed stock''.
            (2) Clause (ii) of section 368(a)(2)(H) of the 1986 Code, as 
        amended by section 6010(c) of the 1998 Act, is amended by 
        inserting ``, or the fact that the corporation whose stock was 
        distributed issues additional stock,'' after ``dispose of part 
        or all of the distributed stock''.

     <> (g) Provision Related to Section 1042 of 
1997 Act.--Rules similar to the rules of section 1.1502-75(d)(5) of the 
Treasury Regulations shall apply with respect to any organization 
described in section 1042(b) of the 1997 Act.

    (h) Amendment Related to Section 1082 of 1997 Act.--Subparagraph (F) 
of section 172(b)(1) of the 1986 Code is amended by adding at the end 
the following new clause:
                          ``(iv) Coordination with paragraph (2).--For 
                      purposes of applying paragraph (2), an eligible 
                      loss for any taxable year shall be treated in a 
                      manner similar to the manner in which a specified 
                      liability loss is treated.''

    (i) Amendment Related to Section 1084 of 1997 Act.--Paragraph (3) of 
section 264(f) of the 1986 Code is amended by adding at the end the 
following flush sentence:
        ``If the amount described in subparagraph (A) with respect to 
        any policy or contract does not reasonably approximate its 
        actual value, the amount taken into account under subparagraph 
        (A) shall be the greater of the amount of the insurance company 
        liability or the insurance company reserve with respect to such 
        policy or contract (as determined for purposes of the annual 
        statement approved by the National Association of Insurance 
        Commissioners) or shall be such other amount as is determined by 
        the Secretary.''

    (j) Amendment Related to Section 1175 of 1997 Act.--Subparagraph (C) 
of section 954(e)(2) of the 1986 Code is amended by striking 
``subsection (h)(8)'' and inserting ``subsection (h)(9)''.
    (k) Amendment Related to Section 1205 of 1997 Act.--Paragraph (2) of 
section 6311(d) of the 1986 Code is amended by striking ``under such 
contracts'' in the last sentence and inserting ``under any such contract 
for the use of credit, debit, or charge cards for the payment of taxes 
imposed by subtitle A''.
    (l) Effective Date <> .--The amendments made 
by this section shall take effect as if included in the provisions of 
the 1997 Act to which they relate.

SEC. 4004. AMENDMENTS RELATED TO TAX REFORM ACT OF 1984.

    (a) In General.--Subparagraph (C) of section 172(d)(4) of the 1986 
Code is amended to read as follows:
                    ``(C) any deduction for casualty or theft losses 
                allowable under paragraph (2) or (3) of section 165(c) 
                shall be treated as attributable to the trade or 
                business; and''.

    (b) Conforming Amendments.--
            (1) Paragraph (3) of section 67(b) of the 1986 Code is 
        amended by striking ``for losses described in subsection (c)(3) 
        or (d) of section 165'' and inserting ``for casualty or theft 
        losses

[[Page 112 STAT. 2681-911]]

        described in paragraph (2) or (3) of section 165(c) or for 
        losses described in section 165(d)''.
            (2) Paragraph (3) of section 68(c) of the 1986 Code is 
        amended by striking ``for losses described in subsection (c)(3) 
        or (d) of section 165'' and inserting ``for casualty or theft 
        losses described in paragraph (2) or (3) of section 165(c) or 
        for losses described in section 165(d)''.
            (3) Paragraph (1) of section 873(b) is amended to read as 
        follows:
            ``(1) Losses.--The deduction allowed by section 165 for 
        casualty or theft losses described in paragraph (2) or (3) of 
        section 165(c), but only if the loss is of property located 
        within the United States.''

     <> (c) Effective Dates.--
             <> (1) The amendments made by 
        subsections (a) and (b)(3) shall apply to taxable years 
        beginning after December 31, 1983.
             <> (2) The amendment made by 
        subsection (b)(1) shall apply to taxable years beginning after 
        December 31, 1986.
             <> (3) The amendment made by 
        subsection (b)(2) shall apply to taxable years beginning after 
        December 31, 1990.

SEC. 4005. AMENDMENTS RELATED TO URUGUAY ROUND AGREEMENTS ACT.

    (a) Inapplicability of Assignment Prohibition.--Section 207 of the 
Social Security Act (42 U.S.C. 407) is amended by adding at the end the 
following new subsection:
    ``(c) Nothing in this section shall be construed to prohibit 
withholding taxes from any benefit under this title, if such withholding 
is done pursuant to a request made in accordance with section 3402(p)(1) 
of the Internal Revenue Code of 1986 by the person entitled to such 
benefit or such person's representative payee.''.
    (b) Proper Allocation of Costs of Withholding Between the Trust 
Funds and the General Fund.--Section 201(g) of such Act (42 U.S.C. 
401(g)) is amended--
            (1) by inserting before the period in paragraph (1)(A)(ii) 
        the following: ``and the functions of the Social Security 
        Administration in connection with the withholding of taxes from 
        benefits, as described in section 207(c), pursuant to requests 
        by persons entitled to such benefits or such persons' 
        representative payee'';
            (2) by inserting before the period at the end of paragraph 
        (1)(A) the following: ``and the functions of the Social Security 
        Administration in connection with the withholding of taxes from 
        benefits, as described in section 207(c), pursuant to requests 
        by persons entitled to such benefits or such persons' 
        representative payee'';
            (3) in paragraph (1)(B)(i)(I), by striking ``subparagraph 
        (A)),'' and inserting ``subparagraph (A)) and the functions of 
        the Social Security Administration in connection with the 
        withholding of taxes from benefits, as described in section 
        207(c), pursuant to requests by persons entitled to such 
        benefits or such persons' representative payee,'';
            (4) in paragraph (1)(C)(iii), by inserting before the period 
        the following: ``and the functions of the Social Security 
        Administration in connection with the withholding of taxes from 
        benefits, as described in section 207(c), pursuant to requests 
        by

[[Page 112 STAT. 2681-912]]

        persons entitled to such benefits or such persons' 
        representative payee'';
            (5) in paragraph (1)(D), by inserting after ``section 232'' 
        the following: ``and the functions of the Social Security 
        Administration in connection with the withholding of taxes from 
        benefits as described in section 207(c)''; and
            (6) in paragraph (4), by inserting after the first sentence 
        the following: ``The Board of Trustees of such Trust Funds shall 
        prescribe the method of determining the costs which should be 
        borne by the general fund in the Treasury of carrying out the 
        functions of the Social Security Administration in connection 
        with the withholding of taxes from benefits, as described in 
        section 207(c), pursuant to requests by persons entitled to such 
        benefits or such persons' representative payee.''.

    (c) Effective Date.-- <> The amendments made 
by subsection (b) shall apply to benefits paid on or after the first day 
of the second month beginning after the month in which this Act is 
enacted.

SEC. 4006. OTHER AMENDMENTS.

    (a) Amendments Related to Section 6103 of 1986 Code.--
            (1) Subsection (j) of section 6103 of the 1986 Code is 
        amended by adding at the end the following new paragraph:
            ``(5) Department of agriculture.--Upon request in writing by 
        the Secretary of Agriculture, the Secretary shall furnish such 
        returns, or return information reflected thereon, as the 
        Secretary may prescribe by regulation to officers and employees 
        of the Department of Agriculture whose official duties require 
        access to such returns or information for the purpose of, but 
        only to the extent necessary in, structuring, preparing, and 
        conducting the census of agriculture pursuant to the Census of 
        Agriculture Act of 1997 (Public Law 105-113).''.
            (2) Paragraph (4) of section 6103(p) of the 1986 Code is 
        amended by striking ``(j)(1) or (2)'' in the material preceding 
        subparagraph (A) and in subparagraph (F) and inserting ``(j)(1), 
        (2), or (5)''.
             <> (3) The 
        amendments made by this subsection shall apply to requests made 
        on or after the date of the enactment of this Act.

    (b) Amendment Related to Section 9004 of Transportation Equity Act 
for the 21st Century.--
            (1) Paragraph (2) of section 9503(f) of the 1986 Code is 
        amended to read as follows:
            ``(2) notwithstanding section 9602(b), obligations held by 
        such Fund after September 30, 1998, shall be obligations of the 
        United States which are not interest-bearing.''
            (2) <> The 
        amendment made by paragraph (1) shall take effect on October 1, 
        1998.

    (c) Clerical Amendments.--
            (1) Clause (i) of section 51(d)(6)(B) of the 1986 Code is 
        amended by striking ``rehabilitation plan'' and inserting ``plan 
        for employment''. The <> reference to 
        ``plan for employment'' in such clause shall be treated as 
        including a reference to the rehabilitation plan referred to in 
        such clause as in effect before the amendment made by the 
        preceding sentence.
            (2) Paragraph (3) of section 56(a) of the 1986 Code is 
        amended by striking ``section 460(b)(2)'' and inserting 
        ``section

[[Page 112 STAT. 2681-913]]

        460(b)(1)'' and by striking ``section 460(b)(4)'' and inserting 
        ``section 460(b)(3)''.
            (3) Paragraph (10) of section 2031(c) of the 1986 Code is 
        amended by striking ``section 2033A(e)(3)'' and inserting 
        ``section 2057(e)(3)''.
            (4) Subparagraphs (C) and (D) of section 6693(a)(2) of the 
        1986 Code are each amended by striking ``Section'' and inserting 
        ``section''.

                  TITLE V--MEDICARE-RELATED PROVISIONS

                         Subtitle A--Home Health

SEC. 5101. INCREASE IN PER BENEFICIARY LIMITS AND PER VISIT PAYMENT 
            LIMITS FOR PAYMENT FOR HOME HEALTH SERVICES.

    (a) Increase in Per Beneficiary Limits.--Section 1861(v)(1)(L) of 
the Social Security Act (42 U.S.C. 1395x(v)(1)(L)) is amended--
            (1) in the first sentence of clause (v), by inserting 
        ``subject to clause (viii)(I),'' before ``the Secretary'';
            (2) in clause (vi)(I), by inserting ``subject to clauses 
        (viii)(II) and (viii)(III)'' after ``fiscal year 1994''; and
            (3) by adding at the end the following new clause:

    ``(viii)(I) In the case of a provider with a 12-month cost reporting 
period ending in fiscal year 1994, if the limit imposed under clause (v) 
(determined without regard to this subclause) for a cost reporting 
period beginning during or after fiscal year 1999 is less than the 
median described in clause (vi)(I) (but determined as if any reference 
in clause (v) to `98 percent' were a reference to `100 percent'), the 
limit otherwise imposed under clause (v) for such provider and period 
shall be increased by \1/3\ of such difference.
    ``(II) Subject to subclause (IV), for new providers and those 
providers without a 12-month cost reporting period ending in fiscal year 
1994, but for which the first cost reporting period begins before fiscal 
year 1999, for cost reporting periods beginning during or after fiscal 
year 1999, the per beneficiary limitation described in clause (vi)(I) 
shall be equal to the median described in such clause (determined as if 
any reference in clause (v) to `98 percent' were a reference to `100 
percent').
    ``(III) Subject to subclause (IV), in the case of a new provider for 
which the first cost reporting period begins during or after fiscal year 
1999, the limitation applied under clause (vi)(I) (but only with respect 
to such provider) shall be equal to 75 percent of the median described 
in clause (vi)(I).
    ``(IV) In the case of a new provider or a provider without a 12-
month cost reporting period ending in fiscal year 1994, subclause (II) 
shall apply, instead of subclause (III), to a home health agency which 
filed an application for home health agency provider status under this 
title before September 15, 1998, or which was approved as a branch of 
its parent agency before such date and becomes a subunit of the parent 
agency or a separate agency on or after such date.
    ``(V) Each of the amounts specified in subclauses (I) through (III) 
are such amounts as adjusted under clause (iii) to reflect variations in 
wages among different areas.''.

[[Page 112 STAT. 2681-914]]

    (b) Revision of Per Visit Limits.--Section 1861(v)(1)(L)(i) of such 
Act (42 U.S.C. 1395x(v)(1)(L)(i)) is amended--
            (1) in subclause (III), by striking ``or'';
            (2) in subclause (IV)--
                    (A) by inserting ``and before October 1, 1998,'' 
                after ``October 1, 1997,''; and
                    (B) by striking the period at the end and inserting 
                ``, or''; and
            (3) by adding at the end the following new subclause:
            ``(V) October 1, 1998, 106 percent of such median.''.

    (c) One-Year Delay in 15 Percent Reduction in Payment Limits; Change 
in Timing of Implementation of Prospective Payment System.--
            (1) Prospective payment system.--Section 1895 of such Act 
        (42 U.S.C. 1395fff) is amended--
                    (A) in subsection (a), by striking ``for cost 
                reporting periods beginning on or after October 1, 
                1999'' and inserting ``for portions of cost reporting 
                periods occurring on or after October 1, 2000''; and
                    (B) in subsection (b)(3)--
                          (i) in subparagraph (A)(i), by striking 
                      ``fiscal year 2000'' and inserting ``fiscal year 
                      2001'';
                          (ii) in subparagraph (A)(ii), by striking 
                      ``September 30, 1999'' and inserting ``September 
                      30, 2000''; and
                          (iii) in subparagraph (B)(i), by striking 
                      ``fiscal year 2001'' and inserting ``fiscal year 
                      2002''.
            (2) Change in effective date.--Section 4603(d) of the 
        Balanced Budget Act of 1997 (42 U.S.C. 1395fff note) is amended 
        by striking ``cost reporting periods beginning on or after 
        October 1, 1999'' and inserting ``portions of cost reporting 
        periods occurring on or after October 1, 2000''.
            (3) Contingency reduction.--Section 4603(e) of the Balanced 
        Budget Act of 1997 (42 U.S.C. 1395fff note) is amended--
                    (A) by striking ``cost reporting periods described 
                in subsection (d), for such cost reporting periods'' and 
                inserting ``portions of cost reporting periods described 
                in subsection (d), for such portions''; and
                    (B) by striking ``September 30, 1999'' and inserting 
                ``September 30, 2000''.

    (d) Change in Home Health Market Basket Increase.--
            (1) Interim payment system.--Section 1861(v)(1)(L) of the 
        Social Security Act (42 U.S.C. 1395x(v)(1)(L)), as amended by 
        subsection (a)(3), is amended by adding at the end the 
        following:

    ``(ix) Notwithstanding any other provision of this subparagraph, in 
updating any limit under this subparagraph by a home health market 
basket index for cost reporting periods beginning during each of fiscal 
years 2000, 2001, 2002, and 2003, the update otherwise provided shall be 
reduced by 1.1 percentage points.''.
            (2) Prospective payment system.--Section 1895(b)(3)(B) of 
        such Act (42 U.S.C. 1395fff(b)(3)(B)) is amended--
                    (A) in clause (i), by striking ``home health market 
                basket percentage increase'' and inserting ``home health 
                applicable increase percentage (as defined in clause 
                (ii))'';
                    (B) by redesignating clause (ii) as clause (iii); 
                and
                    (C) by inserting after clause (i) the following:
                          ``(ii) Home health applicable increase 
                      percentage.--For purposes of this subparagraph, 
                      the term

[[Page 112 STAT. 2681-915]]

                      `home health applicable increase percentage' 
                      means, with respect to--
                                    ``(I) fiscal year 2002 or 2003, the 
                                home health market basket percentage 
                                increase (as defined in clause (iii)) 
                                minus 1.1 percentage points; or
                                    ``(II) any subsequent fiscal year, 
                                the home health market basket percentage 
                                increase.''.

    (e) Exclusion of Additional Part B Costs From Determination of Part 
B Monthly Premium.--Section 1839 of such Act (42 U.S.C. 1395r) is 
amended--
            (1) in subsection (a)(3), by inserting ``(except as provided 
        in subsection (g))'' after ``year that''; and
            (2) by adding at the end the following new subsection:

    ``(g) In estimating the benefits and administrative costs which will 
be payable from the Federal Supplementary Medical Insurance Trust Fund 
for a year for purposes of determining the monthly premium rate under 
subsection (a)(3), the Secretary shall exclude an estimate of any 
benefits and administrative costs attributable to the application of 
section 1861(v)(1)(L)(viii) or to the establishment under section 
1861(v)(1)(L)(i)(V) of a per visit limit at 106 percent of the median 
(instead of 105 percent of the median), but only to the extent payment 
for home health services under this title is not being made under 
section 1895 (relating to prospective payment for home health 
services).''.
    (f) Reports on Summary of Research Conducted by the Secretary on the 
Prospective Payment System.--By not later than January 1, 1999, the 
Secretary of Health and Human Services shall submit to Congress a report 
on the following matters:
            (1) Research.--A description of any research paid for by the 
        Secretary on the development of a prospective payment system for 
        home health services furnished under the medicare program under 
        title XVIII of the Social Security Act, and a summary of the 
        results of such research.
            (2) Schedule for implementation of system.--The Secretary's 
        schedule for the implementation of the prospective payment 
        system for home health services under section 1895 of the Social 
        Security Act (42 U.S.C. 1395fff).

    (g) MedPAC Reports.--
            (1) Review of secretary's report.--Not later than 60 days 
        after the date the Secretary of Health and Human Services 
        submits to Congress the report under subsection (f), the 
        Medicare Payment Advisory Commission (established under section 
        1805 of the Social Security Act (42 U.S.C. 1395b-6)) shall 
        submit to Congress a report describing the Commission's analysis 
        of the Secretary's report, and shall include the Commission's 
        recommendations with respect to the matters contained in such 
        report.
            (2) Annual report.--The Commission shall include in its 
        annual report to Congress for June 1999 an analysis of whether 
        changes in law made by the Balanced Budget Act of 1997, as 
        modified by the amendments made by this section, with respect to 
        payments for home health services furnished under the medicare 
        program under title XVIII of the Social Security Act, impede 
        access to such services by individuals entitled to benefits 
        under such program.

    (h) GAO Audit of Research Expenditures.--The Comptroller General of 
the United States shall conduct an audit of sums

[[Page 112 STAT. 2681-916]]

obligated or expended by the Health Care Financing Administration for 
the research described in subsection (f)(1), and of the data, reports, 
proposals, or other information provided by such research.
    (i)  <> Prompt Implementation.--
            (1) In general.--The Secretary of Health and Human Services 
        shall promptly issue (without regard to chapter 8 of title 5, 
        United States Code) such regulations or program memoranda as may 
        be necessary to effect the amendments made by this section for 
        cost reporting periods beginning during fiscal year 1999.
            (2) Use of payment amounts and limits from published 
        tables.--
                    (A) Per beneficiary limits.--In effecting the 
                amendments made by subsection (a) for cost reporting 
                periods beginning in fiscal year 1999, the ``median'' 
                referred to in section 1861(v)(1)(L)(vi)(I) of the 
                Social Security Act for such periods shall be the 
                national standardized per beneficiary limitation 
                specified in Table 3C published in the Federal Register 
                on August 11, 1998 (63 FR 42926) and the ``standardized 
                regional average of such costs'' referred to in section 
                1861(v)(1)(L)(v)(I) of such Act for a census division 
                shall be the sum of the labor and nonlabor components of 
                the standardized per beneficiary limitation for that 
                census division specified in Table 3B published in the 
                Federal Register on that date (63 FR 42926) (or in Table 
                3D as so published with respect to Puerto Rico and 
                Guam), and adjusted to reflect variations in wages among 
                different geographic areas as specified in Tables 4a and 
                4b published in the Federal Register on that date (63 FR 
                42926-42933).
                    (B) Per visit limits.--In effecting the amendments 
                made by subsection (b) for cost reporting periods 
                beginning in fiscal year 1999, the limits determined 
                under section 1861(v)(1)(L)(i)(V) of such Act for cost 
                reporting periods beginning during such fiscal year 
                shall be equal to the per visit limits as specified in 
                Table 3A published in the Federal Register on August 11, 
                1998 (63 FR 42925) and as subsequently corrected, 
                multiplied by \106/105\, and adjusted to reflect 
                variations in wages among different geographic areas as 
                specified in Tables 4a and 4b published in the Federal 
                Register on August 11, 1998 (63 FR 42926-42933).

              Subtitle B--Other Medicare-Related Provisions

SEC. 5201. AUTHORIZATION OF ADDITIONAL EXCEPTIONS TO IMPOSITION OF 
            PENALTIES FOR PROVIDING INDUCEMENTS TO BENEFICIARIES.

    (a) In General.--Subparagraph (B) of section 1128A(i)(6) of the 
Social Security Act (42 U.S.C. 1320a-7a(i)(6)) is amended to read as 
follows:
                    ``(B) subject to subsection (n), any permissible 
                practice described in any subparagraph of section 
                1128B(b)(3) or in regulations issued by the 
                Secretary;''.

    (b) Special Provisions Concerning a Safe Harbor for Payment of 
Medigap Premiums of ESRD Beneficiaries.--

[[Page 112 STAT. 2681-917]]

            (1) 2-year limitation.--Section 1128A of such Act (42 U.S.C. 
        1320a-7a) is amended by adding at the end the following:

    ``(n)(1) Subparagraph (B) of subsection (i)(6) shall not apply to a 
practice described in paragraph (2) unless--
            ``(A) the Secretary, through the Inspector General of the 
        Department of Health and Human Services, promulgates a rule 
        authorizing such a practice as an exception to remuneration; and
            ``(B) the remuneration is offered or transferred by a person 
        under such rule during the 2-year period beginning on the date 
        the rule is first promulgated.

    ``(2) A practice described in this paragraph is a practice under 
which a health care provider or facility pays, in whole or in part, 
premiums for medicare supplemental policies for individuals entitled to 
benefits under part A of title XVIII pursuant to section 226A.''.
             <> (2) GAO study and report on 
        impact of safe harbor on medigap policies.--If a permissible 
        practice is promulgated under section 1128A(n)(1)(A) of the 
        Social Security Act (as added by paragraph (1)), the Comptroller 
        General of the United States shall conduct a study that compares 
        any disproportionate impact on specific issuers of medicare 
        supplemental policies (including the impact on premiums for non-
        ESRD medicare beneficiaries enrolled in such policies) due to 
        adverse selection in enrolling medicare ESRD beneficiaries 
        before the enactment of the Health Insurance Portability and 
        Accountability Act of 1996 and 1 year after the date of 
        promulgation of such permissible practice under section 
        1128A(n)(1)(A) of the Social Security Act. Not later than 18 
        months after the date of promulgation of such practice, the 
        Comptroller General shall submit a report to Congress on such 
        study and shall include in the report recommendations concerning 
        whether the time limitation imposed under section 1128A(n)(1)(B) 
        of such Act should be extended.

    (c) Extension of Advisory Opinion Authority.--Section 1128D(b)(2)(A) 
of such Act (42 U.S.C. 1320a-7d(b)(2)(A)) is amended by inserting ``or 
section 1128A(i)(6)'' after ``1128B(b)''.
    (d)  <> Effective Date.--The amendments 
made by this section shall take effect on the date of the enactment of 
this Act.

    (e) Interim <> Final Rulemaking 
Authority.--The Secretary of Health and Human Services may promulgate 
regulations that take effect on an interim basis, after notice and 
pending opportunity for public comment, in order to implement the 
amendments made by this section in a timely manner.

SEC. 5202. EXPANSION OF MEMBERSHIP OF MEDPAC TO 17.

    (a) In General.--Section 1805(c)(1) of the Social Security Act (42 
U.S.C. 1395b-6(c)(1)), as added by section 4022 of the Balanced Budget 
Act of 1997, is amended by striking ``15'' and inserting ``17''.
     <> (b) Initial Terms of Additional 
Members.--
            (1) In general.--For purposes of staggering the initial 
        terms of members of the Medicare Payment Advisory Commission 
        (under section 1805(c)(3) of such Act (42 U.S.C. 1395b-6(c)(3)), 
        the initial terms of the two additional members of

[[Page 112 STAT. 2681-918]]

        the Commission provided for by the amendment under subsection 
        (a) are as follows:
                    (A) One member shall be appointed for one year.
                    (B) One member shall be appointed for two years.
            (2) Commencement of terms.--Such terms shall begin on May 1, 
        1999.

                       Subtitle C--Revenue Offsets

SEC. 5301. TAX TREATMENT OF CASH OPTION FOR QUALIFIED PRIZES.

    (a) In General.--Section 451 (relating to taxable year for which 
items of gross income included) is amended by adding at the end the 
following new subsection:
    ``(h) Special Rule for Cash Options For Receipt of Qualified 
Prizes.--
            ``(1) In general.--For purposes of this title, in the case 
        of an individual on the cash receipts and disbursements method 
        of accounting, a qualified prize option shall be disregarded in 
        determining the taxable year for which any portion of the 
        qualified prize is properly includible in gross income of the 
        taxpayer.
            ``(2) Qualified prize option; qualified prize.--For purposes 
        of this subsection--
                    ``(A) In general.--The term `qualified prize option' 
                means an option which--
                          ``(i) entitles an individual to receive a 
                      single cash payment in lieu of receiving a 
                      qualified prize (or remaining portion thereof), 
                      and
                          ``(ii) is exercisable not later than 60 days 
                      after such individual becomes entitled to the 
                      qualified prize.
                    ``(B) Qualified prize.--The term `qualified prize' 
                means any prize or award which--
                          ``(i) is awarded as a part of a contest, 
                      lottery, jackpot, game, or other similar 
                      arrangement,
                          ``(ii) does not relate to any past services 
                      performed by the recipient and does not require 
                      the recipient to perform any substantial future 
                      service, and
                          ``(iii) is payable over a period of at least 
                      10 years.
            ``(3) Partnership, etc.--The Secretary shall provide for the 
        application of this subsection in the case of a partnership or 
        other pass-through entity consisting entirely of individuals 
        described in paragraph (1).''

     <> (b) Effective Date.--
            (1) In general.--The amendment made by this section shall 
        apply to any prize to which a person first becomes entitled 
        after the date of enactment of this Act.
            (2) Transition rule.--The amendment made by this section 
        shall apply to any prize to which a person first becomes 
        entitled on or before the date of enactment of this Act, except 
        that in determining whether an option is a qualified prize 
        option as defined in section 451(h)(2)(A) of the Internal 
        Revenue Code of 1986 (as added by such amendment)--
                    (A) clause (ii) of such section 451(h)(2)(A) shall 
                not apply, and
                    (B) such option shall be treated as a qualified 
                prize option if it is exercisable only during all or 
                part of the 18-month period beginning on July 1, 1999.

[[Page 112 STAT. 2681-919]]

                   DIVISION K--PAY-AS-YOU-GO PROVISION

    Notwithstanding Rule 3 of the Budget Scorekeeping Guidelines set 
forth in the Joint Explanatory Statement of the Committee of Conference 
accompanying Conference Report No. 105-217, legislation in section 103 
of Division A and in divisions C through J of this Act that would have 
been estimated by the Office of Management and Budget as changing direct 
spending or receipts under section 252 of the Balanced Budget and 
Emergency Deficit Control Act of 1985 were it included in an Act other 
than an appropriation Act shall be treated as direct spending or 
receipts legislation, as appropriate, under section 252 of the Balanced 
Budget and Emergency Deficit Control Act of 1985.
    This Act may be cited as the ``Omnibus Consolidated and Emergency 
Supplemental Appropriations Act, 1999''.

    Approved October 21, 1998.

LEGISLATIVE HISTORY--H.R. 4328 (S. 2307):
---------------------------------------------------------------------------

HOUSE REPORTS: No. 105-648 (Comm. on Appropriations) and 105-825 (Comm. 
of Conference).
SENATE REPORTS: No. 105-249 accompanying S. 2307 (Comm. on 
Appropriations).
CONGRESSIONAL RECORD, Vol. 144 (1998):
            July 29, considered and passed House.
            July 30, considered and passed Senate, amended, in lieu of 
                S. 2307.
            Oct. 20, House agreed to conference report.
            Oct. 21, Senate agreed to conference report.