PUBLIC LAW 95-520, 92 Stat. 1821, VETERANS ADMINISTRATION PROGRAMS EXTENSION ACT of 1978

95th CONGRESS, H.R. 5029 OCTOBER 26, 1978
AN ACT To amend title 38, United States Code, to extend

certain expiring programs of

the Veterans' Administration, to extend and improve

the program of veterans

readjustment appointments in the Federal Government,

and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as the " Veterans' Administration Programs Extension Act of 1978". // 38 USC 101 //

Sec. 2. Section 230 (b) of title 38, United States Code, relating to the Veterans' Administration office in the Republic of the Philippines, is amended by striking out " June 30, 1978" and inserting in lieu thereof " September 30, 1981".

Sec. 3. (a) Section 624 (c) of title 38, United States Code, relating to the veterans medical center in the Republic of the Philippines, is amended by striking out " Veterans Memorial Hospital" and inserting in lieu thereof " Veterans Memorial Medical Center".

(b) Section 632 of such title // 38 USC 632. // is amended--,

(1) by striking out " Veterans Memorial Hospital" each place it appears in such section and inserting in lieu thereof in each such place " Veterans Memorial Medical Center";

(2) in the matter in subsection (a) preceding clause (1)--,

(A) by striking out "a contract" and inserting in lieu thereof "contracts"; and (B) by striking out " June 30, 1978" and inserting in

lieu

thereof " September 30, 1981";

(3) by striking out " July 1, 1978" in subsection (b) and inserting in lieu thereof " October 1, 1981"; and

(4) by striking out "during the five years beginning July 1,1973, and ending June 30, 1978--" in subsection (d) and inserting in lieu thereof "occurring during the period beginning July 1,1973, and ending September 30, 1981--".

Sec. 4. Section 6 (a) (2) of the Veterans' Administration Physician and Dentist Pay Comparability Act of 1975 (Public Law 94 - 123; 89 Stat. 669), // 38 USC 4118 // relating to the expiration of authority to enter into special pay agreements, is amended by striking out " September 30, 1978" and inserting in lieu thereof " September 30, 1981".

Sec. 5. Section 601 (4) (C) of title 38, United States Code, relating to contract-care medical facilities, is amended by striking out "(v) hospital care" and all that follows through " December 31, 1978" and inserting in lieu thereof "(v) hospital care, or medical services that will obviate the need for hospital admission, for veterans in a State not contiguous to the forty-eight contiguous States, except that the annually determined hospital patient load and incidence of the provision of medical services to veterans hospitalized or treated at the expense of the Veterans' Administration in Government and private facilities in each such noncontiguous State shall be consistent with the patient load or incidence of the provision of medical services for veterans hospitalized or treated by the Veterans' Administration within the forty-eight contiguous States, but the authority of the Administrator under this subclause (except with respect to Alaska and Hawaii) shall expire on December 31, 1981, and until such date the Administrator may, if necessary to prevent hardship, waive the applicability to the Commonwealth of Puerto Rico and to the Virgin Islands of the restrictions in this subclause with respect to hospital patient loads and incidence of provision of medical services".

Sec. 6. (a) Section 2012 (b) of title 38, United States Code, relating to veterans' employment emphasis under Federal contracts, is amended by inserting after "veterans" a comma and "or if any veteran who is entitled to disability compensation under the laws administered by the Veterans' Administration believes that any such contractor has discriminated against such veteran because such veteran is a handicapped individual within the meaning of section 7 (6) of the Rehabilitation Act of 1973 (29 U.S.C. 706 (6))".

(b) (1) Subsection (b) of section 2014 // 38 USC 2014. // of such title, relating to veterans readjustment appointments within the Federal Governmnet, is amended to read as follows:

"(b) (1) To further the policy stated in subsection (a) of this section, veterans of the Vietnam era shall be eligible, in accordance with regulations which the Civil Service Commission shall prescribe, for veterans readjustment appointments, and for subsequent career-conditional appointments, under the terms and conditions specified in Executive Order Numbered 11521 (March 26, 1970), // 5 USC 3302 // except that--,

"(A) such an appointment may be made up to and including the level GS-7 or its equivalent;

"(B) a veteran of the Vietnam era shall be eligible for such an appointment without any time limitation with respect to eligibility for such an appointment; and

"(C) a veteran of the Vietnam era who is entitled to disability compensation under the laws administered by the Veterans' Administration or whose discharge or release from active duty was for a disability incurred or aggravated in line of duty shall be eligible for such an appointment without regard to the number of years of education completed by such veteran.

"(2) In this subsection, the term 'veteran of the Vietnam era' has the meaning given such term in section 2011 (2) (A) of this title. // 38 USC 2011. //

"(3) No veterans readjustment appointment may be made under authority of this subsection after September 30, 1981.".

(2) Subsection (d) of such section is amended (A) by striking out "thereof" in the second sentence and inserting in lieu thereof "of this section", and (B) by adding at the end of such subsection the following new sentence: " Each report under the preceding sentence shall include in the specification of the use and extent of appointments made under subsection (b) of this section the following information (shown for all veterans and separately for veterans described in subsection (b) (1) (C) of this section and other veterans):

"(1) The number of appointments made under such subsection since the last such report and the grade levels in which such appointments were made.

"(2) The number of individuals receiving appointments under such subsection whose appointments were converted to career conditional appointments, or whose employment under such an appointment has terminated, since the last such report, together with a complete listing of categories of causes of appointment terminations and the number of such individuals whose employment has terminated falling into each such category.

"(3) The number of such terminations since the last such report that were initiated by the department, agency, or instrumentality involved and the number of such terminations since the last such report that were initiated by the individual involved.

"(4) A description of the education and training programs in which individuals appointed under such subsection are participating at the time of such report.".

(3) Subsection (f) of such section // 38 USC 2014. // is amended by inserting "subsection (a) of "after "as used in".

Sec. 7. Section 5082 of title 38, United States Code, relating to authorizations of appropriations, is amended by adding at the end thereof the following new subsection:

"(c) There is authorized to be appropriated for fiscal year 1979 to carry out the programs authorized under this chapter such sums as may be necessary (1) to make to institutions with which the Administrator has entered into agreements under subchapter I of this chapter // 38 USC 5071. // supplemental grants for which the Administrator had, before May 1, 1978, approved applications from such institutions, and (2) to meet fully the commitments made by the Administrator before May 1, 1978, for grants and applications approved under authority of this subchapter and subchapters III and IV of this chapter, // 38 USC 5071, 5091, 5096. // except that no funds appropriated under this subsection may be used for grants and applications approved under this subchapter and such subchapters III and IV until the full amounts for which applications had been so approved have been obligated under such subchapter I.".

Sec. 8. // 38 USC 601 // (a) Not later thatn February 1, 1980, the Administrator of Veterans' Affairs shall submit a report to the Congress and to the President on the furnishing by the Veterans' Administration of hospital care and medical services in the Commonwealth of Puerto Rico and in the Virgin Islands. The Administrator shall include in such report--,

(1) a comprehensive assessment of the health-care needs of veterans in the Commonwealth of Puerto Rico and in the Virgin Islands;

(2) a detailed report on the hospital care and medical services furnished or to be furnished to such veterans during fiscal years 1975 through 1981, with information in such report shown with respect to the number of veterans treated or to be treated, the facilities at which such care and services are furnished or to be furnished, and the extent to which such care and services are furnished or are to be furnished for the treatment of veterans for service-connected disabilities of any degree and of veterans with service-connected disabilities rated at 50 per centum or more; and

(3) recommendations as to how the health-care needs of such veterans can best be addressed within the existing authority of the Administrator of Veterans' Affairs and what additional authority, if any, is necessary and desirable to meet such needs.

(b) In making recommendations under subsection (a) (3), the Administrator shall take into consideration--,

(1) the state of the economy in the Commonwealth of Puerto Rico and in the Virgin Islands;

(2) alternative sources of health-care services that would be available to veterans in the Commonwealth of Puerto Rico and in the Virgin Islands if the health-care services furnished by the Veterans' Administration for non-service-connected disabilities were substantially reduced;

(3) the desirability of equitable distribution of Veterans' Administration health-care resources; and

(4) the higher priority established by law for the care and treatment of service-connected disabilities.

Sec. 9. There is authorized to be appropriated for fiscal year 1979 the sum of $5,000,000 to enable the Administrator of Veterans' Affairs to implement the Veterans' and Survivors' Pension Improvement Act of 1978. Amounts appropriated pursuant to the preceding sentence shall remain available during the one-year period beginning on the date of the enactment of such Act and may be used to carry out a program of public information and advertising designed to advise fully all persons who may be affected by the provisions of such Act of the provisions of such Act, including the manner in which such Act may affect them and any rights they may have under such Act.

Approved October 26, 1978.

LEGISLATIVE HISTORY:

HOUSE REPORT No. 95 - 111 (Comm. on Veterans' Affairs).

SENATE REPORT No. 95 - 825 (Comm. on Veterans' Affairs).

CONGRESSIONAL RECORD:

Vol. 123 (1977): Apr. 4, considered and passed House.

Vol. 124 (1978): May 26, considered and passed Senate amended. Oct. 13, House concurred in Senate amendments with amendments. Oct. 15, Senate concurred in House amendments.

PUBLIC LAW 95-519, 92 Stat. 1819

95th CONGRESS, S. 1626 October 25, 1978
AN ACT To clarify the status of certain legislative and judicial

officers under the provisions

of title 5, United States Code, relating to annual

and sick leave, and for

other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 6301 (2) of title 5, United States Code, is amended--,

(1) by striking out "or" at the end of clause (xi);

(2) by striking out the period at the end of clause (xii) and inserting ";or" in lieu thereof; and

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

"(xiii) an officer in the legislative or judicial branch who is appointed by the President.".

Sec. 2. 5551 (b), 6302 (e), and 6306 (b) of title 5, United States Code, are each amended by striking out "section 6301 (2) (x)-(xii)" each place it appears and inserting "section 6301 (2) (x)-(xiii)" in lieu thereof.

Sec. 3. Section 8339 (m) of title 5, United States Code, is amended by adding at the end thereof the following new sentence: " For the purpose of this subsection, in the case of any such employee who is excepted from subchapter I of chapter 63 of this title // 5 USC 6301 // under section 6301 (2) (x)-(xiii) of this title, the days of unused sick leave to his credit include any unused sick leave standing to his credit when he was excepted from such subchapter.".

Sec. 4. (a) The amendments made by the first section and section 2 of this Act, // 5 USC 5551 // shall take effect beginning on the first day of the first applicable pay period beginning on or after the date of the enactment of this Act. (b) The amendment made by section 3 of this Act shall apply only with respect to employees who retire or die on or after the date of the enactment of this Act.

Approved October 25, 1978.

LEGISLATIVE HISTORY:

HOUSE REPORT No. 95 - 1496 (Comm. on Post Office and Civil Service).

SENATE REPORT No. 95 - 403 (Comm. on Governmental Affairs).

CONGRESSIONAL RECORD:

Vol. 123 (1977): Sept. 9, considered and passed Senate.

Vol. 124 (1978): Sept. 18, considered and passed House, amended. Oct. 10, Senate concurred in House amendments.

PUBLIC LAW 95-518, 92 STAT. 1818

95th CONGRESS, H.R. 12112 October 25, 1978
An Act Designating Gathright Lake on the Jackson River,

Virginia, as Gathright Dam

and Lake Moomaw.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the Gathright Lake, Jackson River, Virginia project, authorized by the Flood Control Act of 1946, // 33 USC 701j. // approved July 24, 1946, shall hereafter be known and designated as Gathright Dam and Lake Moomaw, and any law, regulation, map, document, or record of the United States in which such lake is designated or referred to as Gathright Lake or is referred to by any other name, shall be held and considered to refer to such lake under and by the name of Gathright Dam and Lake Moomaw.

Approved October 25, 1978.

LEGISLATIVE HISTORY:

HOUSE REPORT No. 95-1094 (Comm. on Public Works and Transportation).

SENATE REPORT No. 95-1165 (Comm. on Environment and Public Works).

CONGRESSIONAL RECORD, Vol. 124 (1978):

May 15, considered and passed House.

Sept. 6, considered and passed Senate, amended.

Oct. 15, House agreed to Senate amendments.

PUBLIC LAW 95-517, 92 STAT. 1817

95th CONGRESS, H.R. 11945 October 25, 1978
An Act To authorize the Secretary of the Army to return to the

Federal Republic of

Germany ten paintings of the German Navy seized by

the United States Army

at the end of World War II.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the Secretary of the Army is authorized to transfer to the Federal Republic of Germany, without compensation, title to, and custody of, ten paintings by the artist Claus Bergen depicting the German Navy that were seized from the German Government by the United States Army after World War II.

Sec. 2. No funds of the United States may be expended in connection with any transportation or handling costs incident to the transfer authorized under the first section of this Act.

Approved October 25, 1978.

LEGISLATIVE HISTORY:

HOUSE REPORT No. 95-1575 (Comm. on Armed Services).

CONGRESSIONAL RECORD, Vol. 124 (1978):

Oct. 2, considered and passed House.

Oct. 14, considered and passed Senate.

PUBLIC LAW 95-516, 92 STAT. 1816

95th CONGRESS, H.R. 10161 October 25, 1978
An Act For the relief of Eastern Telephone Supply and

Manufacturing, Incorporated,

and other matters.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That notwithstanding the time limitations in section 514 of the Tariff Act of 1930 (19 U.S. C. 1514) or in any other provision of law, Eastern Telephone Supply and Manufacturing, Incorporated, of Newport, Rhode Island, may file, within sixty days after the date of enactment of this Act, a protest with the United States Customs Service concerning the over-payment of customs duties on goods purchased from Bell of Canada that entered the United States through Buffalo, New York, and Champlain, New York, during the period from February 1974, to December 1974, inclusive. The United States Customs Service shall accept such protest as if it were filed in a timely fashion and shall review such protest in accordance with the otherwise applicable provisions of law.

SEC. 2. SUSPENSION OF DUTY ON NATURAL GRAPHITE.

(a) Item 909.01 of the Appendix to the Tariff Schedules of the United States (19 U.S.C. 1202) // 19 USC app. 1202. // is amended by striking out "6/30/78" and inserting in lieu thereof "6/30/81".

(b) The amendment made by subsection (a) // 19 USC app. 1202 // shall apply with respect to articles entered, or withdrawn from warehouse, for consumption after June 30, 1978.

(c) Upon request therefor filed with the customs officer concerned on or before the ninetieth day after the date of enactment of this Act, the entry of any article--,

(1) which was made on or after June 30, 1978, and before the date of enactment of this Act, and

(2) with respect to which there would have been no duty if the amendment made by subsection (a) of this section applied to such entry

shall, // 19 USC 1514. // notwithstanding the provisions of section 514 of the Tariff Act of 1930, or any other provisions of law, be liquidated or reliquidated as though such entry has been made on the date of enactment of this Act.

Approved October 25, 1978.

LEGISLATIVE HISTORY:

HOUSE REPORT No. 95-1363 (Comm. on Ways and Means).

SENATE REPORT No. 95-1114 (Comm. on Finance).

CONGRESSIONAL RECORD, Vol. 124 (1978):

Aug. 1, considered and passed House.

Aug. 23, considered and passed Senate, amended.

Oct. 10, House agreed to certain Senate amendments, disagreed to Senate amendment No. 2.

Oct. 12, Senate receded from amendment No. 2.

PUBLIC LAW 95-515, 92 STAT. 1811, INTERSTATE HORSE RACING ACT OF 1978

95th CONGRESS, S 1185 OCTOBER 25, 1978
An Act To regulate interstate commerce with respect to

parimutuel wagering on horseracing,

to maintain the stability of the horseracing industry,

and for other

purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, This Act // 15 USC 3001. // may be cited as the " Interstate Horseracing Act of 1978".

FINDINGS AND POLICY

SEC. 2. // 15 USC 3001. // (a) The Congress finds that--,

(1) the States should have the primary responsibility for determining what forms of gambling may legally take place within their borders;

(2) the Federal Government should prevent interference by one State with the gambling policies of another, and should act to protect identifiable national interests; and

(3) in the limited area of interstate off-track wagering on horseraces, there is a need for Federal action to ensure States will continue to cooperate with one another in the acceptance of legal interstate wagers.

(b) It is the policy of the Congress in this Act to regulate interstate commerce with respect to wagering on horseracing, in order to further the horseracing and legal off-track betting industries in the United States.

DEFINITIONS

SEC. 3. For the purposes of this Act // 15 USC 3002. // the term--,

(1) "person" means any individual, association, partnership, joint venture, corporation, State or political subdivision thereof, department, agency, or instrumentality of a State or political subdivision

thereof, or any other organization or entity;

(2) " State" means each State of the United States, the District of Columbia, the Commonwealth of Puerto Rico, and any territory or possession of the United States;

(3) "interstate off-track wager" means a legal wager placed or accepted in one State with respect to the outcome of a horserace taking place in another State;

(4) "on-track wager" means a wager with respect to the outcome of a horserace which is placed at the racetrack at which such horserace takes place;

(5) "host State" means the State in which the horserace subject to the interstate wager takes place;

(6) "off-track State" means the State in which an interstate off-track wager is accepted;

(7) "off-track betting system" means any group which is in the business of accepting wagers on horseraces at locations other than the place where the horserace is run, which business is conducted by the State or licensed or otherwise permitted by State law;

(8) "off-track betting office" means any location within an off-track State at which off-track wagers are accepted;

(9) "host racing association" means any person who, pursuant to a license or other permission granted by the host State, conducts the horserace subject to the interstate wager;

(10) "host racing commission" means that person designated by State statute or, in the absence of statute, by regulation, with jurisdiction to regulate the conduct of racing within the host State;

(11) "off-track racing commission" means that person designated by State statute or, in the absence of statute, by regulation, with jurisdiction to regulate off-track betting in that State;

(12) "horsemen's group" means, with reference to the applicable host racing association, the group which represents the majority of owners and trainers racing there, for the races subject to the interstate off-track wager on any racing day;

(13) "parimutuel" means any system whereby wagers with respect to the outcome of a horserace are placed with, or in, a wagering pool conducted by a person licensed or otherwise permitted to do so under State law, and in which the participants are wagering with each other and not against the operator;

(14) "currently operating tracks" means racing associations conducting parimutuel horseracing at the same time of day (afternoon against afternoon; nighttime against nighttime) as the racing association conducting the horseracing which is the subject of the interstate off-track wager;

(15) "race meeting" means those scheduled days during the year a racing association is granted permission by the appropriate State racing commission to conduct horseracing;

(16) "racing day" means a full program of races at a specified racing association on a specified day;

(17) "special event" means the specific individual horserace which is deemed by the off-track betting system to be of sufficient national significance and interest to warrant interstate off-track wagering on that event or events;

(18) "dark days" means those days when racing of the same type does not occur in an off-track State within 60 miles of an off-track betting office during a race meeting, including, but not limited to, a dark weekday when such racing association or associations run on Sunday, and days when a racing program is scheduled but does not take place, or cannot be completed due to weather, strikes and other factors not within the control of the off-track betting system;

(19) "year" means calendar year;

(20) "takeout" means that portion of a wager which is deducted from or not included in the parimutuel pool, and which is distributed to persons other than those placing wagers;

(21) "regular contractual process" means those negotiations by which the applicable horsemen's group and host racing association reach agreements on issues regarding the conduct of horseracing by the horsemen's group at that racing association;

(22) "terms and conditions" includes, but is not limited to, the percentage which is paid by the off-track betting system to the host racing association, the percentage which is paid by the host racing association to the horsemen's group, as well as any arrangements as to the exclusivity between the host racing association and the off-track betting system.

PROHIBITION

SEC. 4. No person may // 15 USC 3003. // accept an interstate off-track wager except as provided in this Act.

REGULATION

SEC. 5. // 15 USC 3004. // (a) An interstate off-track wager may be accepted by an off-track betting system only if consent is obtained from--,

(1) the host racing association, except that--,

(A) as a condition precedent to such consent, said racing association (except a not-for-profit racing association

in a

State where the distribution of off-track betting

revenues in

that State is set forth by law) must have a written

agreement

with the horsemen's group, under which said racing

association

may give such consent, setting forth the terms and

conditions

relating thereto; provided,

(B) that where the host racing association has a contract with a horsemen's group at the time of enactment of

this Act

which contains no provisions referring to interstate

off-track

betting, the terms and conditions of said then-existing

contract

shall be deemed to apply to the interstate off-track

wagers and no additional written agreement need be

entered

into unless the parties to such then-existing contract

agree

otherwise. Where such provisions exist in such

existing contract,

such contract shall govern. Where written consents

exist

at the time of enactment of this Act between an

off-track

betting system and the host racing association

providing for

interstate off-track wagers, or such written consents

are

executed by these parties prior to the expiration of

such then-existing

contract, upon the expiration of such then-existing

contract the written agreement of such horsemen's group

shall thereafter be required as such condition

precedent and

as a part of the regular contractual process, and may

not be

withdrawn or varied except in the regular contractual

process.

Where no such written consent exists, and where such

written agreement occurs at a racing association which

has a

regular contractual process with such horsemen's group,

said

agreement by the horsemen's group may not be withdrawn

or

varied except in the regular contractual process;

(2) the host racing commission;

(3) the off-track racing commission.

(b) (1) In addition to the requirement of subsection (a), any off-track betting office shall obtain the approval of--,

(A) all currently operating tracks within 60 miles of such off-track betting office; and

(B) if there are no currently operating tracks within 60 miles then the closest currently operating track in an adjoining State.

(2) Notwithstanding the provisions of paragraph (1) of this subsection, any off-track betting office in a State with at least 250 days of on-track parimutuel horseracing a year, may accept interstate off-track wagers for a total of 60 racing days and 25 special events a year without the approval required by paragraph (1), if with respect to such 60 racing days, there is no racing of the same type at the same time of day being conducted within the off-track betting State within 60 miles of the off-track betting office accepting the wager, or such racing program cannot be completed. Excluded from such 60 days and from the consent required by subsection (b) (1) may be dark days which occur during a regularly scheduled race meeting in said off-track betting State. In order to accept any interstate off-track wager under the terms of the preceding sentence the off-track betting office shall make identical offers to any racing association described in subparagraph (A) of subsection (b) (1). Nothing in this subparagraph shall be construed to reduce or eliminate the necessity of obtaining all the approvals required by subsection (a).

(c) No parimutuel off-track betting system may employ a takeout for an interstate wager which is greater than the takeout for corresponding wagering pools of off-track wagers on races run within the off-track State except where such greater takeout is authorized by State law in the off-track State.

LIABILITY AND DAMAGES

SEC. 6. // 15 USC 3005. // Any person accepting any interstate off-track wager in violation of this Act shall be civilly liable for damages to the host State, the host racing association and the horsemen's group. Damages for each violation shall be based on the total of off-track wagers as follows:

(1) If the interstate off-track wager was of a type accepted at the host racing association, damages shall be in an amount equal to that portion of the takeout which would have been distributed to the host State, host racing association and the horsemen's group, as if each such interstate off-track wager had been placed at the host racing association.

(2) If such interstate off-track wager was of a type not accepted at the host racing association, the amount of damages shall be determined at the rate of takeout prevailing at the off-track betting system for that type of wager and shall be distributed according to the same formulas as in paragraph (1) above.

CIVIL ACTION

SEC. 7. // 15 USC 3006. // (a) The host State, the host racing association, or the horsemen's group may commence a civil action against any person alleged to be in violation of this Act, for injunctive relief to restrain violations and for damages in accordance with section 6.

(b) In any civil action under this section, the host State, the host racing association and horsemen's group, if not a party, shall be permitted to intervene as a matter of right.

(c) A civil action may not be commenced pursuant to this section more than 3 years after the discovery of the alleged violation upon which such civil action is based.

(d) Nothing in this Act shall be construed to permit a State to be sued under this section other than in accordance with its applicable laws.

JURISDICTION AND VENUE

SEC. 8. // 15 USC 3007. // (a) Notwithstanding any other provision of law, the district courts of the United States shall have jurisdiction over any civil action under this Act, without regard to the citizenship of the parties or the amount in controversy.

(b) A civil action under this Act may be brought in any district court of the United States for a district located in the host State or the off-track State, and all process in any such civil action may be served in any judicial district of the United States.

(c) The jurisdiction of the district courts of the United States pursuant to this section shall be concurrent with that of any State court of competent jurisdiction located in the host State or the off-track State.

EFFECTIVE DATE; APPLICABILITY

SEC. 9. (a) The provisions of this Act // 15 USC 3001. // shall take effect on the date of enactment of this Act, and, except as provided in subsection (b) of this section, shall apply to any interstate off-track wager accepted on or after such date of enactment.

(b) (1) The provisions of this Act shall not apply to any interstate off-track wager which is accepted pursuant to a contract existing on May 1, 1978.

(2) The provisions of this Act shall not apply to any form of legal non-parimutuel off-track betting existing in a State on May 1, 1978.

(3) The provisions of subsection (b) of section 5 of this Act shall not apply to any parimutuel off-track betting system existing on May 1, 1978, in a State which does not conduct parimutuel horseracing on the date of enactment of this Act.

Approved October 25, 1978.

LEGISLATIVE HISTORY:

HOUSE REPORT No. 95 - 1733 (Comm. on Interstate and Foreign Commerce).

SENATE REPORTS: No. 95 - 554 (Comm. on Commerce, Science, and Transportation) and No. 95 - 1117 (Comm. on the Judiciary).

CONGRESSIONAL RECORD, Vol. 124 (1978):

Sept. 26, considered and passed Senate.

Oct. 10, H.R. 14089 considered and passed House; passage vacated, and S. 1185 passed in lieu.

PUBLIC LAW 95-514, 92 STAT. 1803, PUBLIC RANGELANDS IMPROVEMENT ACT OF 1978

95th CONGRESS, H.R. 10587 October 25, 1978
An Act To improve the range conditions of the public rangelands.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. That this Act // 43 USC 1901 // may be cited as the " Public Rangelands Improvement Act of 1978".

FINDINGS AND DECLARATION OF POLICY

SEC. 2. // 43 USC 1901. // (a) The Congress find and declares that--,

(1) vast segments of the public rangelands are producing less than their potential for livestock, wildlife habitat, recreation, forage, and water and soil conservation benefits,and for that reason are in an unsatisfactory condition;

(2) such rangelands will remain in an unsatisfactory condition and some areas may decline further under present levels of, and funding for management;

(3) unsatisfactory conditions on public rangelands present a high risk of soil loss, desertification, and a resultant underproductivity for large acreages of the public lands; contribute significantly to unacceptable levels of siltation and salinity in major western watersheds including the Colorado River; negatively impact the quality and availability of scarce western water supplies; threaten important and frequently critical fish and wildlife habitat; prevent expansion of the forage resource and resulting benefits to livestock and wildlife production; increase surface runoff and flood danger; reduce the value of such lands for recreational and esthetic purposes; and may ultimately lead to unpredictable and undesirable long-term local and regional climatic and economic changes;

(4) the above - mentioned conditions can be addressed and corrected by an intensive public rangelands maintenance, management, and improvement program involving significant increases in levels of rangeland management and improvement funding for multiple-use values;

(5) to prevent economic disruption and harm to the western livestock industry, it is in the public interest to charge a fee for livestock grazing permits and leases on the public lands which is based on a formula reflecting annual changes in the cost of production;

(6) the Act of December 15, 1971 (85 Stat. 649, 16 U.S.C. 1331 et seq.), continues to be successful in its goal of protecting wild free - roaming horses and burros from capture, branding, harrassment, and death, but that certain amendments are necessary thereto avoid excessive costs in the administration of the Act, and to facilitate the humane adoption or disposal of excess wild free-roaming horses and burros which because they exceed the carrying capacity of the range, pose a threat to their own habitat, fish, wildlife, recreation, water and soil conservation, domestic livestock grazing, and other rangeland values;

(b) The Congress therefore hereby establishes and reaffirms a national policy and commitment to:

(1) inventory and identify current public rangelands conditions and trends as a part of the inventory process required by section 201 (a) of the Federal Land Policy and Management Act of 1976 (43 U.S.C. 1711);

(2) manage, maintain and improve the condition of the public rangelands so that they become as productive as feasible for all rangeland values in accordance with management objectives and the land use planning process established pursuant to section 202 of the Federal Land Policy and Management Act (43 U.S.C. 1712);

(3) charge a fee for public grazing use which is equitable and reflects the concerns addressed in paragraph (a) (5) above;

(4) continue the policy of protecting wild free-roaming horses and burros from capture, branding, harassment, or death, while at the same time facilitating the removal and disposal of excess wild free - roaming horses and burros which pose a threat to themselves and their habitat and to other rangeland values;

(c) The policies of this Act shall become effective only as specific statutory authoority for their implementation is enacted by this Act or by subsequent legislation, and shall be construed as supplemental to and not in derogation of the purposes for which public rangelands are administered under other provisions of law.

SEC. 3. As used in this Act--, // 43 USC 1902. //

(a) The terms "rangelands" or "public rangelands" means lands administered by the Secretary of the Interior through the Bureau of Land Management or the Secretary of Agriculture through the Forest Service in the sixteen contiguous Western States on which there is domestic livestock grazing or which the Secretary concerned determines may be suitable for domestic livestock grazing.

(b) The term "allotment management plan" is the same as defined in section 103 (k) of the Federal Land Policy Management Act of 1976 (43 U.S.C. 1702 (k)), except that as used in this Act such term applies to the sixteen contiguous Western States.

(c) The term "grazing permit and lease" means any document authorizing use of public lands or lands in national forests in the sixteen contiguous Western States for the purpose of grazing domestic livestock.

(d) The term "range condition" means the quality of the land reflected in its ability in specific vegetative areas to support various levels of productivity in accordance with range management objectives and the land use planning process, and relates to soil quality, forage values (whether seasonal or year round), wildlife habitat, watershed and plant communities, the present state of vegetation of a range site in relation to the potential plant community for that site, and the relative degree to which the kinds, proportions, and amounts of vegetation in a plant community resemble that of the desired community for that site.

(e) The term "native vegetation" means those plant species, communities, or vegetative associations which are endemic to a given area and which would normally be identified with a healthy and productive range conditions occuring as a result of the natural vegetative process of the area.

(f) The term "range improvement" means any activity or program on or relating to rangelands which is designed to improve production of forage; change vegetative composition; control patterns of use; provide water; stabilize soil and water conditions; and provide habitat for livestock and wildlife. The term includes, but is not limited to, structures, treatment projects,and use of mechanical means to accomplish the desired results.

(g) The term "court ordered environmental impact statement" means any environmental statements which are required to be prepared by the Secretary of the Interior pursuant to the final judgment or subsequent modification thereof as set forth on June 18, 1975, in the matter of Natural Resources Defense Council against Andrus.

(h) The term " Secretary" unless specifically designated otherwise, means the Secretary of the Interior.

(i) The term "sixteen contiguous Western States" means the States of Arizona, California, Colorado, Idaho, Kansas, Montana, Nebraska, Nevada, New Mexico, North Dakota, Oklahoma, Oregon, South Dakota, Utah, Washington, and Wyoming.

RANGELANDS INVENTORY AND MANAGEMENT

SEC. 4. (a) Following enactment of this Act, // 43 USC 1903. // the Secretary of the Interior and the Secretary of Agriculture shall update, develop (where necessary) and maintain on a continuing basis thereafter, an inventory of range conditions and record of trends of range conditions on the public rangelands, and shall categorize or identify such lands on the basis of the range conditions and trends thereof as they deem appropriate. Such inventories shall be conducted and maintained by the Secretary as a part of the inventory process required by section 201 (a) of the Federal Land Policy and Management Act (43 U.S.C. 1711), and by the Secretary of Agriculture in accordance with section 5 of the Forest and Rangeland Renewable Resources Planning Act of 1974 (16 U.S. c. 1603); shall be kept current on a regular basis so as to reflect changes in range conditions; and shall be available to the public.

(b) The Secretary shall manage the public rangelands in accordance with the Taylor Grazing Act (43 U.S.C. 315 - 315(o)), the Federal Land Policy and Management Act of 1976 (43 U.S.C. 1701 - 1782), and other applicable law consistent with the public rangelands improvement program pursuant to this Act. Except where the land use planning process required pursuant to section 202 of the Federal Land Policy and Management Act (43 U.S.C. 1712) determines otherwise or the Secretary determines, and sets forth his reasons for this determination, that grazing uses should be discontinued (either temporarily or permanently) on certain lands, the goal of such management shall be to improve the range conditions of the public rangelands so that they become as productive as feasible in accordance with the rangeland management objectives established through the land use planning process, and consistent with the values and objectives listed in section 2 (a) and (b) (2) of this Act.

RANGE IMPROVEMENT FUNDING

SEC. 5. (a) In order to accomplish the purposes of this Act, // 43 USC 1904. // there are hereby authorized to appropriated the sum of an additional $15,000,000 annually in fiscal year 1980 through 1982; for fiscal years 1983 through 1986 an amount no less than the amount authorized for 1982; and for fiscal years 1987 through 1999 an amount not less than $5,000,000 annually more than the amount authorized for fiscal year 1986. Such funds shall be in addition to any range, wildlife, and soil and water management moneys which have been requested by the Secretary under the provisions of section 318 of the Federal Land Policy and Management Act, // 43 USC 1748. // and in addition to the moneys which are available for range improvements under section 401 of the Federal Land Policy and Management Act (43 U.S.C. 1751).

(b) Any amounts authorized by this section not appropriated in one or more fiscal years shall be available for appropriation in any subsequent years.

(c) No less than 80 per centum of such funds provided herein shall be used for on - the - ground range rehabilitation, maintenance and the construction of range improvements (including project layout, project design, and project supervision). No more than 15 per centum of such funds provided herein shall be used to hire and train such experienced and qualified personnel as are necessary to implement on - the - ground supervision and enforcement of the land use plans required pursuant to section 202 of the Federal Land Policy and Management Act (43 U.S.C. 1712) and such allotment management plans as may be developed. Such funds shall be distributed as the Secretary deems advisable after careful and considered consultation and coordination, including public hearings and meetings where appropriate, with the district grazing advisory boards established pursuant to section 403 of the Federal Land Policy and Management Act (43 U.S.C. 1753), and the advisory councils established pursuant to section 309 of the Federal Land Policy and Management Act (43 U.S.C. 1739), range user representatives, and other interested parties. To the maximum extent practicable, and where economically sound, the Secretary shall give priority to entering into cooperative agreements with range users (or user groups) for the installation and maintenance of on - the - ground range improvements.

(d) Prior to the use of any funds authorized by this section the Secretary shall cause to have prepared an environmental assessment record on each range improvement project. Thereafter, improvement projects may be constructed unless the Secretary determines that the project will have a significant impact on the quality of human environment, necessitating an environmental impact statement pursuant to the National Environmental Policy Act // 42 USC 4321. // prior to the expenditure of funds.

GRAZING FEES

SEC. 6. (a) // 43 USC 1905. // For the grazing years 1979 through 1985, the Secretaries of Agriculture and Interior shall charge the fee for domestic livestock grazing on the public rangelands which Congress finds represents the economic value of the use of the land to the user, and under which Congress finds fair market value for public grazing equals the .23 base established by the 1966 Western Livestock Grazing Survey multiplied by the result of the Forage Value Index (computed annually from data supplied by the Economic Research Service) added to the Combined Index (Beef Cattle Price Index minus the Price Paid Index) and divided by 100: Provided, That the annual increase or decrease in such fee for any given year shall be limited to not more than plus or minus 25 per centum of the previous year's fee.

(b) The second sentence of section 401 (b)(1) of the Federal Land Policy and Management Act of 1976 (43 U.S.C. 1751 (b) (1)) is hereby amended by adding the words "or $10,000,000 per annum, whichever is greater" after the words "50 per centum", and by substituting the word "sixteen" for the word "eleven" before the words "contiguous Western States".

GRAZING LEASES AND PERMITS

SEC. 7. (a) Section 402 (b) (3) of the Federal Land Policy and Management Act (43 U.S.C. 1752) is amended by striking the period at the end of the proviso and adding ": Provided further, That the absence of completed land use plans or court ordered environmental statements shall not be the sole basis for establishing a term shorter than ten years unless the Secretary determines on a case - by - case basis that the information to be contained in such land use plan or court ordered environmental impact statement is necessary to determine whether a shorter term should be established for any of the reasons set forth in items (1) through (3) of this subsection.".

(b) Section 402 (a) of the Federal Land Policy and Management Act is hereby amended by substituting the word "sixteen" for the word "eleven" before the words "contiguous Western States".

ALLOTMENT MANAGEMENT PLANS

SE. 8. Sections 402 (d) and (e) (43 U.S.C. 1752 (d) and (e)) are hereby amended--,

(a) by changing subsection (d) to read as follows:

"(d) All permits and leases for domestic livestock grazing issued pursuant to this section may incorporate an allotment management plan developed by the Secretary concerned. However, nothing in this subsection shall be construed to supersede any requirement for completion of court ordered environmental impact statements prior to development and incorporation of allotment management plans. If the Secretary concerned elects to develop an allotment management plan for a given area, he shall do so in careful and considered consultation, cooperation and coordination with the lessees, permittees, and landowners involved, the district grazing advisory boards established pursuant to section 403 of the Federal Land Policy and Management Act (43 U.S.C. 1753), and any State or States having lands within the area to be covered by such allotment management plan. Allotment management plans shall be tailored to the specific range condition of the area to be covered by such plan, and shall be reviewed on a periodic basis to determine whether they have been effective in improving the range condition of the lands involved or whether such lands can be better managed under the provisions of subsection (e) of this section. The Secretary concerned may revise or terminate such plans or develop new plans from time to time after such review and careful and considered consultation, cooperation and coordination with the parties involved. As used in this subsection, the terms 'court ordered environmental impact statement' and 'range condition' shall be defined as in the ' Public Rangelands Improvement Act of 1978.'".

(b) by deleting in subsection (e) the words " Prior to October 1, 1988, or thereafter, in" and by inserting " In".

APPROPRIATIONS

SEC. 9. Nowithstanding any other provision of this Act, // 43 USC 1906. // authority to enter into cooperative agreements and to make payments under this Act shall be effective only to the extent or in such amounts as are provided in advance in appropriation Acts.

GRAZING ADVISORY BOARDS

SEC. 10. Section 403 (a) of the Federal Land Policy and Management Act of 1976 (43 U.S.C. 1753) is amended by substituting the word "sixteen" for the word "eleven" before the words "contiguous Western States".

NATIONAL GRASSLAND EXEMPTIONS

SEC. 11. All National Grasslands are exempted from the provisions of this Act. // 43 USC 1907. //

EXPERIMENTAL STEWARDSHIP PROGRAM

SEC. 12. // 43 USC 1908. // (a) The Secretaries of Interior and Agriculture are hereby authorized and directed to develop and implement, on an experimental basis on selected areas of the public rangelands which are representative of the broad spectrum of range conditions, trends and forage values, a program which provides incentives to, or rewards for, the holders of grazing permits and leases whose stewardship results in an improvement of the range condition of lands under permit or lease. Such program shall explore innovative grazing management policies and systems which might provide incentives to improve range conditions. These may include, but need not be limited to--,

(1) cooperative range management projects designed to foster a greater degree of cooperation and coordination between the Federal and State agencies charged with the management of the rangelands and with local private range users,

(2) the payment of up to 50 per centum of the amount due the Federal Government from grazing permittees in the form of range improvement work,

(3) such other incentives as he may deem appropriate.

(b) No later than December 31, 1985, the Secretaries shall report to the Congress the results of such experimental program, their evaluation of the fee established in section 6 of this Act and other grazing fee options, and their recommendations to implement a grazing fee schedule for the 1986 and subsequent grazing years.

ADVISORY COUNCILS

SEC. 13. The first line of section 309 (a) of the Federal Land Policy and Management Act of 1976 (43 U.S.C. 1739) is amended by deleting "is authorized to" and inserting in lieu thereof "shall".

WILD HORSES AND BURROS

SEC. 14. (a) Subsections 3 (b), (c), and (d) of the Act of December 15, 1971 (85 Stat. 649; 16 U.S.C. 1333 (b) (3)) are hereby amended to read as follows:

"(b) (1) The Secretary shall maintain a current inventory of wild free - roaming horses and burros on given areas of the public lands. The purpose of such inventory shall be to: make determinations as to whether and where an overpopulation exists and whether action should be taken to remove excess animals; determine appropriate management levels of wild free - roaming horses and burros on these areas of the public lands; and determine whether appropriate management levels should be achieved by the removal or destruction of excess animals, or other options (such as sterilization, or natural controls on population levels). In making such determinations the Secretary shall consult with the United States Fish and Wildlife Service, wildlife agencies of the State or States wherein wild free - roaming horses and burros ar located, such individuals independent of Federal and State government as have been recommended by the National Academy of Sciences, and such other individuals whom he determines have scientific expertise and special knowledge of wild horse and burro protection, wildlife, management and animal husbandry as related to rangeland management.

"(2) Where the Secretary determines on the basis of (i) the current inventory of lands within his jurisdiction; (ii) information contained in any land use planning completed pursuant to section 202 of the Federal Land Policy and Management Act of 1976; // 43 USC 1712. // (iii) information contained in court ordered environmental impact statements as defined in section 2 of the Public Range Lands Improvement Act of 1978; and (iv) such additional information as becomes available to him from time to time, including that information developed in the research study mandated by this section, or in the absence of the information contained in (i - iv) above on the basis of all information currently available to him, that an overpopulation exists on a given area of the public lands and that action is necessary to remove excess animals, he shall immediately remove excess animals from the range so as to achieve appropriate management levels. Such action shall be taken, in the following order and priority, until all excess animals have been removed so as to restore a thriving natural ecological balance to the range, and protect the range from the deterioration associated with overpopulation:

"(A) The Secretary shall order old, sick, or lame animals to be destroyed in the most humane manner possible;

"(B) The Secretary shall cause such number of additional excess wild free - roaming horses and burros to be humanely captured and removed for private maintenance and care for which he determines an adoption demand exists by qualified individuals, and for which he determines he can assure humane treatment and care (including proper transportation, feeding, and handling): Provided, That, not more than four animals may be adopted per year by any individual unless the Secretary determines in writing

that such individual is capable of humanely caring for more than

four animals, including the transportation of such animals by the adopting party; and

"(C) The Secretary shall cause additional excess wild free-roaming horses and burros for which an adoption demand by qualified individuals does not exist to be destroyed in the most humane and cost efficient manner possible.

"(3) For the purpose of furthering knowledge of wild horse and burro population dynamics and their interrelationship with wildlife, forage and water resources, and assisting him in making his determination as to what constitutes excess animals, the Secretary shall contract for a research study of such animals, the Secretary shall contract for a research study of such animals with such individuals independent of Federal and State government as may be recommended by the National Academy of Sciences for having scientific expertise and special knowledge of wild horse and burro protection, wildlife management and animal husbandry as related to rangeland management. The terms and outline of such research study shall be determined by a research design panel to be appointed by the President of the National Academy of Sciences. Such study shall be completed and submitted by the Secretary to the Senate and House of Representatives on or before January 1, 1983.

"(c) Where excess animals have been transferred to a qualified individual for adoption and private maintenance pursuant to this Act and the Secretary determines that such individual has provided humane conditions, treatment care for such animal or animals for a period of one year, the Secretary is authorized upon application by the transferee to grant title to not more than four animals to the transferee at the end of the one-year period.

"(d) Wild free-roaming horses and burros or their remains shall lose their status as wild free-roaming horses or burros and shall no longer be considered as falling within the purview of this Act--,

"(1) upon passage of title pursuant to subsection (c) except for the limitation of subsection (c) (1) of this section; or

"(2) if they have been transferred for private maintenance or adoption pursuant to this Act and die of natural causes before passage of title; or

"(3) upon destruction by the Secretary or his designee pursuant to subsection (b) of this section; or

"(4) if they die of natural causes on the public lands or on private lands where maintained thereon pursuant to section 4 and disposal is authorized by the Secretary or his designee; or

"(5) upon destruction or death for purposes of or incident to the program authorized in section 3 of this Act; Provided, That no wild free-roaming horse or burro or its remains may be sold or transferred for consideration for processing into commercial products."."

(b) A new subsection (f) is added to section 2 of the Act of December 15, 1971, as amended (16 U.S.C. 1332) to read as follows:

"(f) 'excess animals' means wild free-roaming horses or burros (1) which have been removed from an area by the Secretary pursuant to applicable law or (2) which must be removed from an area in order to preserve and maintain a thriving natural ecological balance and multiple-use relationship in that area."

Approved October 25, 1978.

LEGISLATIVE HISTORY:

HOUSE REPORTS: No. 95-1122 (Comm. on Interior and Insular Affairs) and No. 95-1737 (Comm. of Conference).

SENATE REPORT No. 95-1237 (Comm. on Energy and Natural Resources).

CONGRESSIONAL RECORD, Vol. 124 (1978):

June 29, considered and passed House.

Sept. 30, considered and passed Senate, amended.

Oct. 10, House agreed to conference report.

Oct. 11, Senate agreed to conference report.

WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 14, No. 43:

Oct. 27, Presidential statement.

PUBLIC LAW 95-513, 92 STAT. 1802

95th CONGRESS, H.J. Res. 1147 October 25, 1978
Joint Resolution Authorizing and requesting the President to designate

the seven-day period

beginning on May 28, 1979, as " Vietnam Veterans

Week". Whereas members of the Armed Forces of the United States who

served in Southeast Asia during the Vietnam conflict performed

such service under the most trying conditions because of the lack

of domestic support for the conflict and because of the nature of

the conflict itself; Whereas the battlefield performance of America's soldiers, sailors,

marines, and airmen during the Vietnam conflict was by all measures

the equal of that of their counterparts in previous conflicts; Whereas an adverse image has often been unfairly, attached to the

Vietnam veteran as an individual because of the controversial nature

of the Vietnam conflict; and Whereas the Nation has never fully expressed its gratitude to those

who gave a substantial portion of their lives at their Government's

request and in the name of the people of the United States to serve in

such conflict: Now, therefore, be it

Resolved by the Senate and House of Representatives of the United States of America in Congress assembled, That the President is authorized and requested (1) to issue a proclamation designating the seven-day period beginning on May 28, 1979, as " Vietnam Veterans Week" and calling upon the people of the United States and interested groups and organizations to observe such period with appropriate ceremonies and activities, and (2) to initiate and coordinate appropriate ceremonies and activities within the executive branch for the observance of such period.

Approved October 25, 1978.

LEGISLATIVE HISTORY:

CONGRESSIONAL RECORD, Vol 124 (1978):

Oct. 10, considered and passed House.

Oct. 12, considered and passed Senate.

PUBLIC LAW 95-512, 92 STAT. 1799, COMPTROLLER GENERAL ANNUITY ADJUSTMENT ACT OF 1978

95th CONGRESS, S, 3412 OCTOBER 25, 1978
An Act To provide for cost-of-living adjustments in the annuity

of a retired Comptroller

General, and for other purposes.

Be it enacted by the Senate and House of Representatives of the Unied States of America in Congress assembled, That this Act may be cited as the " Comptroller General Annuity Adjustment Act of 1978". // 31 USC 1 //

Sec. 2. Section 319 of the Budget and Accounting Act, 1921 (31 U.S. C. 43b) is amended--,

(1) by striking out "3" wherever it appears in subsections (b) and (c) and inserting "4.5";

(2) by striking out in subsection (e) (2) beginning with "one-half" through the word "lesser" and inserting the following: "(A) $1,548, or (B) $4,644 divided by the number of children, whichever is lesser";

(3) by inserting "(A)" immediately after "equal to" in subsection (e) (3) and by striking out in such subsection beginning with "survived," through the word "year" and inserting "survived, divided by the number of children, or (B) $1,860, or (C) $5,580, divided by the number of children, whichever is the lesser"; and

(4) by striking out "the last five years of such service" in subsection (n) and inserting "the three years of service in which his annual salary was greatest", and by striking out "37 1/2" in such subsection and inserting "40".

Sec. 3. The Budget and Accounting Act, 1921, is amended by adding after section 319 the following new section:

" Sec. 320. (a) Except as provided in subsection (b), // 31 USC 43c. //

the annuities authorized by sections 303 and 319 of this Act // 31 USC 43, 43b. // shall be increased as follows:

"(1) The Comptroller General shall--,

"(A) on January 1 of each year, or within a reasonable time thereafter, determine the per centum change in the Consumer Price Index published for December of the

preceding

year over the Consumer Price Index published for

June of the preceding year, and

"(B) on July 1 of each year, or within a reasonable time thereafter, determine the per centum change in the

Consumer

Price Index published for June of such year over the

Consumer

Price Index published for December of the preceding

year.

"(2) If in any year the per centum change determined under either paragraph (1) (A) or (1) (B) indicates a rise in the Consumer Price Index, then--,

"(A) effective March 1 of such year, in the case of an increase under paragraph (1) (A), each annuity payable under sections 303 and 319 of this Act commencing not

later

than such March 1 shall be increased by the per centum

change computed under such paragraph, adjusted to the

nearest one-tenth of 1 per centum, or

"(B) effective September 1 of such year, in the case of

an

increase under paragraph (1) (B), each annuity payable

under sections 303 and 319 of this Act

// 31 USC 43, 43b. //

commencing not later

than such September 1 shall be increased by the per

centum

change computed under such paragraph, adjusted to the

nearest one-tenth of 1 per centum.

"(3) The per centum increase authorized by the Comptroller General under this section shall not exceed the per centum increase as authorized from time to time by the Civil Service Commission under section 8340 (b) of title 5, United States Code.

"(b) The annuity authorized by section 303 of this Act shall not, by reason of the application of subsection (a), exceed the annual rate of compensation of the Comptroller General.".

Sec. 4. (a) The second paragraph of section 303 of the Budget and

Accounting Act, 1921 (31 U.S.C. 43) is amended by inserting between the third and fourth sentences the following new sentence: " There shall be deducted from the salary of any person appointed to the Office of the Comptroller General after the date of enactment of this sentence as a contribution to the annuity authorized by this paragraph (1) a sum equal to 3 1/2 per centum of his salary, in the case of a Comptroller General who has elected survivor benefits under section 319, or (2) a sum equal to 8 per centum of his salary, in the case of a Comptroller General who has not elected such survivor benefits.".

(b) The third paragraph of such section is amended by--,

(1) inserting after "that Act," in the first sentence "and no deduction from his salary shall be made under the preceding paragraph,"; and

(2) adding at the end thereof the following new sentence: " Any person who is appointed to the Office of Comptroller General after the date of enactment of this sentence and who makes such an election under this paragraph shall deposit with the General Accounting Office for covering into the general fund of the Treasury as miscellaneous receipts as a contribution to the annuity authorized under the preceding paragraph (1) a sum equal to 3 1/2 per centum,in the case of a Comptroller General who has elected survivor benefits under section 319, or (2) 8 per centum, in the case of a Comptroller General who has not elected such benefits, of the salary received by him as Comptroller General prior to the date current deductions begin from his salary, plus interest thereon at the rate of 3 per centum per annum compounded on December 31 of each year"..

(c) Such secetion is amended by adding at the end thereof the following new paragraph:

" Any Comptroller General who is separated from office prior to becoming eligible to receive an annuity under the second paragraph shall be entitled to a lump-sum refund of the total amount deducted from his salary in accordance with the provisions of such paragraph or deposited by him as a contribution to his annuity in accordance with the provisions of the preceding paragraph, plus interest thereon at the rate of 3 per centum per annum compounded on December 31 of each year. The lump-sum refund authorized by this paragraph shall be paid to the Comptroller General or to his survivors in the order of precedence of such survivors established in section 319(j) for survivor benefits".

Approved October 25, 1978.

LEGISLATIVE HISTORY:

HOUSE REPORT No. 95 - 1241. accompanying H.R. 12196 (Comm. on Government Operations).

SENATE REPORT No. 95 - 1267 (Comm. on Govermental Affairs).

CONGRESSIONAL RECORD, Vol. 124 (1978):

July 25, H.R. 12196 considered and passed House.

Oct. 9, considered and passed Senate.

Oct. 11, considered and passed House, in lieu of H.R. 12196.

PUBLIC LAW 95-511, 92 STAT. 1783, FOREIGN INTELLIGENCE SURVEILLANCE ACT OF 1978

95th CONGRESS, S. 1566 OCTOBER 25, 1978

AN ACT

To authorize electronic surveillance to obtain foreign

intelligence information.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as the " Foreign Intelligence Surveillance Act of 1978". // 50 USC 1801 //

TABLE OF CONTENTS TITLE I - ELECTRONIC SURVEILLANCE WITHIN THE UNITED

STATES

FOR FOREIGN INTELLIGENCE PURPOSES

Sec. 101. Definitions. Sec. 102. Authorization for electronic surveillance for foreign intelligence

purposes. Sec. 103. Designation of judges. Sec. 104. Application for an order. Sec. 105. Issuance of an order. Sec. 106. Use of information. Sec. 107. Report of electronic surveillance. Sec. 108. Congressional oversight. Sec. 109. Penalties. Sec. 110. Civil liability. Sec. 111. Authorization during time of war.

TITLE ii - CONFORMING AMENDMENTS

Sec. 201. Amendments to chapter 119 of title 18, United States Code.

TITLE III - EFFECTIVE DATE

Sec. 301. Effective date.

TITLE I - ELECTRONIC SURVEILLANCE WITHIN THE UNITED STATES FOR FOREIGN INTELLIGENCE PURPOSES DEFINITIONS

Sec. 101. As used in this title: // 50 USC 1801. //

(a) " Foreign power" means--,

(1) a foreign government or any component thereof, whether or not recognized by the United States; (2) a faction of a foreign nation or nations, not

substantially

composed of United States persons;

(3) an entity that is openly acknowledged by a foreign government or governments to be directed and controlled

by

such foreign government or governments;

(4) a group engaged in international terrorism or

activities

in preparation therefor;

(5) a foreign-based political organization, not

substantially

composed of United States persons; or

(6) an entity that is directed and controlled by a foreign government or governments.

(b) " Agent of a foreign power" means--

(1) any person other than a United States person, who-- (A) acts in the United States as an officer or employee of a foreign power, or as a member of a foreign power as defined in subsection (a) (4); (B) acts for or on behalf of a foreign power which engages in clandestine intelligence activities in the

United

States contrary to the interests of the United

States,

when the circumstances of such person's presence in the

United States indicate that such person may engage in

such activities in the United States, or when such

person

knowingly aids or abets any person in the conduct of

such activities or knowingly conspires with any person

to engage in such activities; or

(2) any person who--, (A) knowingly engages in clandestine intelligence gathering activities for or on behalf of a foreign

power,

which activities involve or may involve a violation of

the

criminal statues of the United States;

(B) pursuant to the direction of an intelligence service or network of a foreign power, knowingly engages in any other clandestine intelligence activities for or on

behalf

of such foreign power, which activities involve or are

about to involve a violation of the criminal statutes of

the United States;

(C) knowingly engages in sabotage or international terrorism, or activities that are in preparation

therefor,

for or on behalf of a foreign power; or

(D) knowingly aids or abets any person in the conduct of activities described in subparagraph (A), (B), or

(C)

or knowingly conspires with any person to engage in

activities described in subparagraph (A), (B), or

(C).

(c) " International terrorism" means activities that--,

(1) involve violent acts or acts dangerous to human life that are a violation of the criminal laws of the

United States

or of any State, or that would be a criminal violation

if committed

within the jurisdiction of the United States or any

State;

(2) appear to be intended--, (A) to intimidate or coerce a civilian population; (B) to influence the policy of a government by

intimidation

or coercion; or

(C) to affect the conduct of a government by

assassination

or kidnapping; and

(3) occur totally outside the United States or transcend national boundaries in terms of the means by which they are accomplished, the persons they appear intended to coerce or intimidate, or the locale in which their perpetrators

operate

or seek asylum. (d) " Sabotage" means activities that involve a violation

of

chapter 105 of title 18, United States Code,

// 18 USC 2151 //

or that would involve

such a violation if committed against the United

States.

(e) " Foreign intelligence information" means--, (1) information that relates to, and if conerning a

United

States person is necessary to, the ability of the

United States

to protect against--,

(A) actual or potential attack or other grave hostile acts of a foreign power or an agent of a foreign power; (B) sabotage or international terrorism by a foreign power or an agent of a foreign power; or (C) clandestine intelligence activities by an

intelligence

service or network of a foreign power or by an agent of

a foreign power; or

(2) information with respect to a foreign power or foreign territory that relates to, and if concerning a United

States

person is necessary to--,

(A) the national defense or the security of the United States; or (B) the conduct of the foreign affairs of the United States. (f) " Electronic surveillance" means--, (1) the acquisition by an electronic, mechanical, or other surveillance device of the contents of any wire or radio

communication

surveillance device of the contents of any wire or

radio communication

sent by or intended to be received by a particular,

known United States person who is in the United

States, if

the contents are acquired by intentionally targeting

that

United States person, under circumstances in which a

person

has a reasonable expectation of privacy and a warrant

would

be required for law enforcement purposes;

(2) the acquisition by an electronic, mechanical, or other surveillance device of the contents of any wire

communication

to or from a person in the United States, without the

consent of any party thereto, if such acquisition

occurs in the

United States;

(3) the intentional acquisition by an electronic,

mechanical,

or other surveillance device of the contents of any

radio communication,

under circumstances in which a person has a

under circumstances in which a person has a

reasonable expectation of privacy and a warrant would be

required for law enforcement purposes, and if both the

sender

and all intended recipients are located within the

United

States; or

(4) the installation or use of an electronic, mechanical,

or

other surveilance device in the United States for

monitoring

to acquire information, other than from a wire or radio

communication, under circumstances in which a person has

a reasonable expectation of privacy and a warrant would

be

required for law enforcement purposes.

(g) " Attorney General" means the Attorney General of

the

United States (or Acting Attorney General) or the

Deputy

Attorney General.

(h) " Minimization procedures", with respect to

electronic surveillance, means--,

(1) specific procedures, which shall be adopted by the Attorney General, that are reasonably designed in

light of the

purpose and technique of the particular surveillance,

to minimize

the acquisition and retention, and prohibit the

dissemination,

of nonpublicly available information concerning

unconsenting United States persons consistent with

the need

of the United States to obtain, produce, and

disseminate foreign

intelligence information;

(2) procedures that require that nonpublicly available information, which is not foreign intelligence

information,

as defined in subsection (e) (1), shall not be

disseminated in

a manner that identifies any United States

person,without

such person's consent, unless such person's identity is

necessary

to understand foreign intelligence information or assess

its importance;

(3) notwithstanding paragraphs (1) and (2), procedures that allow for the retention and dissemination of

information

that is evidence of a crime which has been, is being,

or is about

to be committed and that is to be retained or

disseminated for

law enforcement purposes; and

(4) notwithstanding paragraphs (1), (2), and (3), with respect to any electronic surveillance approved

pursuant to

section 102(a), procedures that require that no

contents of

any communication to which a United States person is

a party

shall be disclosed, disseminated, or used for any

purpose or

retained for longer than twenty-four hours unless a

court

order under section 105 is obtained or unless the

Attorney

General determines that the information indicates a

threat of

death or serious bodily harm to any person.

(i) " United States person" means a citizen of the

United States,

an alien lawfully admitted for permanent residence (as

defined in

section 101(a) (20) of the Immigration and

Nationality Act),

// 8 USC 1101. //

an

unincorporated association a substantial number of

members of

which are citizens of the United States or aliens

lawfully admitted

for permanent residence, or a corporation which is

incorporated

in the United States, but does not include a

corporation

or an association which is a foreign power, as defined

in subsection

(a) (1), (2), or (3).

(j) " United States", when used in a geographic sense,

means

all areas under the territorial sovereignty of the

United States

and the Trust Territory of the Pacific Islands.

(k) " Aggrieved person" means a person who is the target

of an

electronic surveillance or any other person whose

communications

or activities were subject to electronic surveillance.

(1) " Wire communication" means any communication while it is being carried by a wire, cable, or other like

connection furnished

or operated by any person engaged as a common carrier

in providing

or operating such facilities for the transmission of

interstate

or foreign communications.

(m) " Person" means any individual, including any officer

or

employee of the Federal Government, or any group,

entity,association,

corporation, or foreign power.

(n) " Contents", when used with respect to a

communication,

includes any information concerning the identity of the

parties to

such communication or the existence, substance,

purport, or meaning

of that communication.

(o) " State" means any State of the United States, the

District

of Columbia, the Commonwealth of Puerto Rico, the

Trust Territory

of the Pacific Islands, and any territory or

possession of the

United States.

AUTHORIZATION FOR ELECTRONIC SURVEILLANCE FOR FOREIGN INTELLIGENCE PURPOSES

Sec. 102. // 50 USC 1802. // (a) (1) Notwithstanding any other law, the President, through tthe Attorney General, may authorize electronic surveilance without a court order under this title to acquire foreign intelligence information for periods of up to one year if the Attorney General certifies in writing under oath that--,

(A) the electronic surveillance is solely directed at--,

(i) the acquisition of the contents of communications

transmitted

by means of communications used exclusively between

or among foreign powers, as defined in

section 101(a) (1),

(2), or (3); or

(ii) the acquisition of technical intelligence other than the spoken communications of individuals, from property

or

premises under the open and exclusive control of a

foreign

power, as defined in section 101(a) (1), (2), or (3);

(B) there is no substantial likelihood that the surveillance will acquire the contents of any communication to which a United States person is a party; and

(C) the proposed minimization procedures with respect to such surveillance meet the definition of minimization procedures under section 101(h); and

if the Attorney General reports such minimization procedures and any changes thereto to the House Permanent Select Committe on Intelligence and the Senate Select Committee on Intelligence at least thirty days prior to their effective date, unless the Attorney General determines immediate action is required and notifies the committee immediately of such minimization procedures and the reason for their becoming effective immediatley.

(2) An electronic surveillance authorized by this subsection may be conducted only in accordance with the Attorney General's certification and the minimization procedures adopted by him. The Attorney General shall assess compliance with such procedures and shall report such assessments to the House Permanent Select Committee on Intelligence and the Senate Select Committee on Intelligence under the provisions of section 108(a).

(3) The Attorney General shall immediately transmit under seal to the court established under section 103(a) a copy of his certification. Such certification shall be maintained under security measures established by the Chief Justice with the concurrence of the Attorney General, in consultation with the Director of Central intelligence, and shall remain sealed unless--,

(A) an application for a court order with respect to the surveillance is made under sections 101(h) (4) and 104; or

(B) the certification is necessary to determine the legality of the surveillance under section 106(f).

(4) With respect to electronic surveillance authorized by this subsection, the Attorney General may direct a specified communication common carrier to--,

(A) furnish all information, facilities, or technical assistance necessary to accomplish the electronic surveillance in such a manner as will protect its secrecy and produce a minimum of interference with the services that such carrier is providing its customers; and

(B) maintain under security procedures approved by the Attorney

General and the Director of Central Intelligence any records

concerning the surveillance or the aid furnished which such carrier wishes to retain.

The Government shall compensate, at the prevailing rate, such carrier for furnishing such aid.

(b) Applications for a court order under this title are authorized if the President has, by written authorization, empowered the Attorney General to approve applications to the court having jurisdiction under section 103, and a judge to whom an application is made may, notwithstanding any other law, grant an order, in conformity with section 105, approving electronic surveillance of a foreign power or an agent of a foreign power for the purpose of obtaining foreign intelligence information, except that the court shall not have jurisdiction to grant any order approving electronic surveillance directed solely as described in paragraph (1) (A) of subsection (a) unless such surveillance may involve the acquisition of communications of any United States person.

DESIGNATION OF JUDGES

Sec. 103. // 50 USC 1803 // (a) The Chief Justice of the United States shall publicly designate seven district court judges from seven of the United States judicial circuits who shall constitute a court which shall have jurisdiction to hear applications for and grant orders approving electronic surveillance anywhere within the United States under the procedures set forth in this Act, except that no judge designated under this subsection shall hear the same application for electronic surveillance under this Act which has been denied previously by another judge designated under this subsection. If any judge so designated denies an application for an order authorizing electronic surveillance under this Act, such judge shall provide immediately for the record a written statement of each reason for his decision and, on motion of the United States, the record shall be transmitted, under seal, to the court of review established in subsection (b).

(b) The Chief Justice shall publicly designate three judges, one of whom shall be publicly designated as the presiding judge, from the United States district courts or courts of appeals who together shall comprise a court of review which shall have jurisdiction to review the denial of any application made under this Act. If such court determines that the application was properly denied, the court shall immediately provide for the record a written statement of each reason for its decision and, on petition of the United States for a writ of certiorari, the record shall be transmitted under seal to the Supreme Court, which shall have jurisdiction to review such decision.

(c) Proceedings under this Act shall be conducted as expeditiously as possible. The record of proceedings under this Act, including applications made and orders granted, shall be maintained under security measures established by the Chief Justice in consultation with the Attorney General and the Director of Central Intelligence. (d) Each judge designated under this section shall so serve for a maximum of seven years and shall not be eligible for redesignation, except that the judges first designated under subsection (a) shall be designated for terms of from one to seven years so that one term expires each year, and that judges first designated under subsection (b) shall be designated for terms of three, five, and seven years.

APPLICATION FOR AN ORDER

Sec. 104. // 50 USC 1804 // (a) Eac application for an order approving electronic surveillance under this title shall be made by a Federal officer in writing upon oath or affirmation to a judge having jurisdiction under section 103. Each application shall require the approval of the Attorney General based upon his finding that it satisfies the criteria and requirements of such application as set forth in this title. It shall include--,

(1) the identity of the Federal officer making the application;

(2) the authority conferred on the Attorney General by the President of the United States and the approval of the Attorney General to make the application;

(3) the identity, if known, or a description of the target of the

electronic surveillance;

(4) a statement of the facts and circumstances relied upon by the applicant to justify his belief that--,

(A) the target of the electronic surveillance is a

foreign

power or an agent of a foreign power; and

(B) each of the facilities or places at which the

electronic

surveillance is directed is being used, or is about to

be used, by

a foreign power or an agent of a foreign power;

(5) a statement of the proposed minimization procedures;

(6) a detailed description of the nature of the information sought and the type of communications or activities to be subjected

to the surveillance;

(7) a certification or certifications by the Assistant to the President for National Security Affairs or an executive branch official or officials designated by the President from among those executive officers employed in the area of national security or defense and appointed by the President with the advice and consent of the Senate-,

(A) that the certifying official deems the information sought to be foreign intelligence information;

(B) that the purposes of the surveillance is to obtain foreign

intelligence information;

(C) that such information cannot reasonably be obtained by normal investigative techniques; (D) that designates the type of foreign intelligence information being sought according to the categories described in section 101(e); and (E) including a statement of the basis for the

certification

that--,

(i) the information sought is the type of foreign intelligence information designated; and (ii) such information cannot reasonably be obtained by normal investigative techniques;

(8) a statement of the means by which the surveillance will be effected and a statement whether physical entry is required to effect the surveillance;

(9) a statement of the facts concerning all previous applications that have been made to any judge under this title involving any of the persons, facilities, or places specified in the application, and the action taken on each previous application;

(10) a statement of the period of time for which the electronic surveillance is required to be maintained, and if the nature of the intelligence gathering is such that the approval of the use of electronic surveillance under this title should not automatically terminate when the described type of information has first been obtained, a description of facts supporting the belief that additional information of the same type will be obtained thereafter; and

(11) whenever more than one electronic, mechanical or other surveillance device is to be used with respect to a particular proposed electronic surveillance, the coverage of the devices involved and what minimization procedures apply to information acquired by each device.

(b) Whenever the target of the electronic surveillance is a foreign power, as defined in section 101(a) (1), (2), or (3), and each of the facilities or places at which the surveillance is directed is owned, leased, or exclusively used by that foreign power, the application need not contain the information required by paragraphs (6), (7) (E), (8), and (11) of subsection (a), but shall state whether physical entry is required to effect the surveillance and shall contain such information about the surveillance techniques and communications or other information concerning United States persons likely to be obtained as may be necessary to assess the proposed minimization procedures.

(c) The Attorney General may require any other affidavit or certification from any other officer in connection with the application.

(d) The judge may require the applicant to furnish such other information as may be necessary to make the determinations required by section 105.

ISSUANCE OF AN ORDER

Sec. 105. (a) Upon an application made pursuant to section 104, // 50 USC 1805 // the judge shall enter an ex parte order as requested or as modified approving the electronic surveillance if he finds that--,

(1) the President has authorized the Attorney General to

approve applications for electronic surveillance for foreign

intelligence information;

(2) the application has been made by a Federal officer and approved by the Attorney General;

(3) on the basis of the facts submitted by the applicant there is probable cause to believe that--,

(A) the target of the electronic surveillance is a foreign power or an agent of a foreign power: Provided, That

no

United States person may be considered a foreign

power or

an agent of a foreign power solely upon the basis of

activities

protected by the first amendment to the Constitution

of the

United States; and

(B) each of the facilities or places at which the

electronic

surveillance is directed is being used, or is about to

be used,

by a foreign power or an agent of a foreign power;

(4) the proposed minimization procedures meet the definition of minimization procedures under section 101(h); and

(5) the application which has been filed contains all statements and certifications required by section 104 and, if the target is a United States person, the certification or certifications are not clearly erroneous on the basis of the statement made under section 104(a) (7) (E) and any other information furnished under section 1047d).

(b) An order approving an electronic surveillance under this section shal--,

(1) specify--,

(A) the identity, if known, or a description of the

target of

the electronic surveillance;

(B) the nature and location of each of the facilities or places at which the electronic surveillance will be

directed;

(C) the type of information sought to be acquired and the type of communications or activities to be subjected to

the

surveillance;

(D) the means by which the electronic surveillance will

be

effected and whether physical entry will be used to

effect the

surveillance; (E) the period of time during which the electronic

surveillance

is approved; and

(F) whenever more than one electronic, mechanical, or other surveillance device is to be used under the

order, the

authorized coverage of the devices involved and what

minimization

procedures shall apply to information subject to

acquisition by each device; and

(2) direct--,

(A) that the minimization procedures be followed; (B) that, upon the request of the applicant, a specified communication or other common carrier, landlord,

custodian,

or other specified person furnish the applicant

forthwith all

information, facilities, or technical assistance

necessary to

accomplish the electronic surveillance in such a manner

as

will protect its secrecy and produce a minimum of

interference

with the services that such carrier, landlord,

custodian,

or other person is providing that target of electronic

surveillance;

(C) that such carrier, landlord, custodian, or other

person

maintain under security procedures approved by the

Attorney

General and the Director of Central Intelligence

any records

concerning the surveillance or the aid furnished that

such

person wishes to retain; and

(D) that the applicant compensate, at the prevailing

rate,

such carrier, landlord, custodian, or other person for

furnishing

such aid.

(c) Whenever the target of the electronic surveillance is a foreign power, as defined in section 101(a) (1), (2), or (3), and each of the facilities or places at which the surveillance is directed is owned, leased, or exclusively used by that foreign power, the order need not contain the information required by subparagraphs (C), (D), and (F) of subsection (b)(1), but shall generally describe the information sought, the communications or activities to be subjected to the surveillance, and the type of electronic surveillance involved, including whether physical entry is required.

(d)(1) An order issued under this section may approve an electronic surveillance for the period necessary to achieve its purpose, or for ninety days, whichever is less, except that an order under this section shall approve an electronic surveillance targeted against a foreign power, as defined in section 101(a) (1), (2), or (3), for the period specified in the application or for one year, whichever is less.

(2) Extensions of an order issued under this title may be granted on the same basis as an original order upon an application for an extension and new findings made in the same manner as required for an original order, except that an extension of an order under this Act for a surveillance targeted against a foreign power, as defined in section 101(a) (5) or (6), or against a foreign power as defined in section 101(a)(4) that is not a United States person, may be for a period not to exceed one year if the judge finds probable cause to believe that no communication of any individual United States person will be acquired during the period.

(3) At or before the end of the period of time for which electronic surveillance is approved by an order or an extension, the judge may assess compliance with the minimization procedures by reviewing the circumstances under which information concerning United States persons was acquired, retained, or disseminated.

(e) Notwithstanding any other provision of this title, when the Attorney General reasonably determines that--,

(1) an emergency situation exists with respect to the

employment

of electronic surveillance to obtain foreign

intelligence

information before an order authorizing such

surveillance can with

due diligence be obtained; and

(2) the factual basis for issuance of an order under this

title to

approve such surveillance exists;

he may authorize the emergency employment of electronic surveillance if a judge having jurisdiction under section 103 is informed by the Attorney General or his designee at the time of such authorization that the decision has been made to employ emergency electronic surveillance and if an application in accordance with this title is made to that judge as soon as practicable, but not more than twenty-four hours after the Attorney General authorizes such surveillance. If the Attorney General authorizes such emergency employment of electronic surveillance, he shall require that the minimization procedures required by this title for the issuance of a judicial order be followed. In the absence of a judicial order approving such electronic surveillance, the surveillance shall terminate when the information sought is obtained, when the application for the order is denied, or after the expiration of twenty-four hours from the time of authorization by the Attorney General, whichever is earliest. In the event that such application for approval is denied, or in any other case where the electronic surveillance is terminated and no order is issued approving the surveillance, no information obtained or evidence derived from such surveillance shall be received in evidence or otherwise disclosed in any trial, hearing, or other proceeding in or before any court, grand jury, department, office, agency, regulatory body legislative committee, or other authority of the United States, a State, or political subdivision thereof, and no information concerning any United States person acquired from such surveillance shall subsequently be used or disclosed in any other manner by Federal officers or employees without the consent of such person, except with the approval of the Attorney General if the information indicates a threat of death or serious bodily harm to any person. A denial of the application made under this subsection may be reviewed as provided in section 103.

(f) Notwithstaning any other provision of this title, officers, employees, or agents of the United States are authorized in the normal course of their official duties to conduct electronic surveillance not targeted against the communications of any particular person or persons, under procedures approved by the Attorney General, solely to--,

(1) test the capability of electronic equipment, if--,

(A) it is not reasonable to obtain the consent of the

persons

incidentally subjected to the surveillance;

(B) the test is limited in extent and duration to that

necessary

to determine the capability of the equipment;

(C) the contents of any communication acquired are retained and used only for the purpose of determining

the

capability of the equipment, are disclosed only to test

personnel,

and are destroyed before or immediately upon completion

of the test; and:

(D) Provided, That the test may exceed ninety days only with the prior approval of the Attorney General;

(2) determine the existence and capability of electronic surveillance equipment being used by persons not authorized to conduct electronic surveillance, if--,

(A) it is not reasonable to obtain the consent of persons incidentally subjected to the surveillance; (B) such eletronic surveillance is limited in extent and duration to that necessary to determine the existence

and

capability of such equipment; and

(C) any information acquired by such surveillance is used only to enforce chapter 119 of title 18, United

States Code,

or section 605 of the Communications Act of 1934,

// 47 USC 605. //

or to protect

information from unauthorized surveillance; or

(3) train intelligence personnel in the use of electronic surveillance equipment, if--,

(A) it is not reasonable to--, (i) obtain the consent of the persons incidentally subjected to the surveillance; (ii) train persons in the course of surveillances

otherwise

authorized by this title; or

(iii) train persons in the use of such equipment without engaging in electronic surveillance;

(B) such electronic surveillance is limited in extent and duration to that necessary to train the personnel in the use of the equipment; and

(C) no contents of any communication acquired are retained or disseminated for any purpose, but are destroyed as soon as reasonably possible.

(g) Certifications made by the Attorney General pursuant to section 102(a) and applications made and orders granted under this title shall be retained for a period of at least ten years from the date of the certification or application.

USE OF INFORMATION

Sec. 106. // 50 USC 1806 // (a) Information acquired from an electronic surveillance conducted pursuant to this title concerning any United States person may be used and disclosed by Federal officers and employees without the consent of the United States person only in accordance with the minimization procedures required by this title. No otherwise privileged communication obtained in accordance with, or in violation of, the provisions of this title shall lose its privileged character. No information acquired from an electronic surveillance pursuant to this title may be used or disclosed by Federal officers or employees except for lawful purposes.

(b) No information acquired pursuant to this title shall be disclosed for law enforcement purposes unless such disclosure is accompanied by a statement that such information, or any information derived therefrom, may only be used in a criminal proceeding with the advance authorization of the Attorney General.

(c) Wnenever the Government intends to enter into evidence or otherwise use or disclose in any trial, hearing, or other proceeding in or before any court, department, officer, agency, regulatory body, or other authority of the United States, against an aggrieved person, any information obtained or derived from an electronic surveillance of that aggrieved person pursuant to the authority of this title, the Government shall, prior to the trial, hearing, or other proceeding or at a reasonable timeprior to an effort to so disclose or so use that information or submit it in evidence, notify the aggrieved person and the court or other authority in which the information is to be disclosed or used that the Government intends to so disclose or so use such information.

(d) Whenever any State or political subdivision thereof intends to enter into evidence or otherwise use or disclose in any trial, hearing, or other proceeding in or before any court, department, officer, agency, regulatory body, or other authority of a State or a political subdivision thereof, against an aggrieved person any information obtained or derived from an electronic surveillance of that aggrieved person pursuant to the authority of this title, the State or political subdivision thereof shall notify the aggrieved person, the court or other authority in which the information is to be disclosed or used, and the Attorney General that the State or political subdivision thereof intends to so disclose or so use such information.

(e) Any person against whom evidence obtained or derived from an electronic surveillance to which he is an aggrieved person is to be, or has been, introduced or otherwise used or disclosed in any trial, hearing, or other proceeding in or before any court, department, officer, agency, regulatory body, or other authority of the United States, a State, or a political subdivision thereof, may move to suppress the evidence obtained or derived from such electronic surveillance on the grounds that--,

(1) the information was unlawfully acquired; or

(2) the surveillance was not made in conformity with an order of authorization or approval.

Such a motion shall be made before the trial, hearing, or other proceeding unless there was no opportunity to make such a motion or the person was not aware of the grounds of the motion.

(f) Whenever a court or other authority is notified pursuant to subsection (c) or (d), or whenever a motion is made pursuant to subsection (e), or whenever any motion or request is made by an aggrieved person pursuant to any other statute or rule of the United States or any State before any court or other authority of the United States or any State to discover or obtain applications or orders or other materials relating to electronic surveillance or to discover, obtain, or suppress evidence or information obtained or derived from electronic surveillance under this Act, the United States district court or, where the motion is made before another authority, the United States district court in the same district as the authority, shall, notwithstanding any other law, if the Attorney General files an affidavit under oath that disclosure or an adversary hearing would harm the national security of the United States, review in camera and ex parte the application. order, and such other materials relating to the surveillance as may be necessary to determine whether the surveillance of the aggrieved person was lawfully authorized and conducted. In making this determination, the court may disclose to the aggrieved person, under appropriate security procedures and protective orders, portions of the application, order, or other materials relating to the surveillance only where such disclosure is necessary to make an accurate determination of the legality of the surveillance.

(g) If the United States district court pursuant to subsection (f) determines that the surveillance was not lawfully authorized or conducted, it shall, in accordance with the requirements of law, suppress the evidence which was unlawfully obtained or derived from electronic surveillance of the aggrieved person or otherwise grant the motion of the aggrieved person. If the court determines that the surveillance was lawfully authorized and conducted, it shall deny the motion of the aggrieved person except to the extent that due process requires discovery or disclosure.

(h) Orders granting motions or requests under subsection (g), decisions under this section that electronic surveillance was not lawfully authorized or conducted, and orders of the United States district court requiring review or granting disclosure of applications, orders, or other materials relating to a surveillance shall be final orders and binding upon all courts of the United States and the several States except a United States court of appeals and the Supreme Court.

(i) In circumstances involving the unintentional acquisition by an electronic, mechanical, or other surveillance device of the contents of any radio communication, under circumstances in which a person has a reasonable expectation of privacy and a warrant would be required for law enforcement purposes, and if both the sender and all intended recipients are located within the United States, such contracts shall be destroyed upon recognition, unless the Attorney General determines that the contents indicate a threat of death or serious bodily harm to any person.

(j) If an emergency employment of electronic surveillance is authorized under section 105(e) and a subsequent order approving the surveillance is not obtained, the judge shall cause to be served on any United States person named in the application and on such other United States persons subject to electronic surveillance as the judge may determine in his discretion it is in the interest of justice to serve, notice of--,

(1) the fact of the application;

(2) the period of the surveillance; and

(3) the fact that during the period information was or was not obtained.

On an ex parte showing of good cause to the judge the serving of the notice required by this subsection may be postponed or suspended for a period not to exceed ninety days. Thereafter, on a further ex parte showing of good cause, the court shall forego ordering the serving of the notice required under this subsection.

REPORT OF ELECTRONIC SURVEILLANCE

Sec. 107. // 50 USC 1807 // In April of each year, the Attorney General shall transmit to the Administrative Office of the United States Court and to Congress a report setting forth with respect to the preceding calendar year--,

(a) the total number of applications made for orders and

extensions

of orders approving electronic surveillance under this

title;

and

(b) the total number of such orders and extensions either granted, modified, or denied. CONGRESSIONAL OVERSIGHT

Sec. 108. (a) // 50 USC 1808 // On a seminannual basis the Attorney General shall fully inform the House Permanent Select Committee on Intelligence and the Senate Select Committee on Intelligence concerning all electronic surveillance under this title. Nothing in this title shall be deemed to limit the authority and responsibility of the appropriate committees of each House of Congress to obtain such information as they may need to carry out their respective functions and duties.

(b) On or beforeone year after the effective date of this Act and on the same day each year for four years thereafter, the Permanent Select Committee on Intelligence and the Senate Select Committee on Intelligence shall report respectively to the House of Representatives and the Senate, concerning the implementation of this Act. Said reports shall include but not be limited to an analysis and recommendations concerning whether this Act should be (1) amended, (2) repealed, or (3) permitted to continue in effect without amendment.

PENALTIES

Sec. 109. // 50 USC 1809 // (a) Offense.--A person is guilty of an offense if he intentionally--,

(1) engages in electronic surveillance under color of law

except

as authorized by statute; or

(2) discloses or uses information obtained under color of

law

by electronic surveillance, knowing or having reason to

know that

the information was obtained through electronic

surveillance not

authorized by statute.

(b) Defense.--It is a defense to a prosecution under subsection (a) that the defendant was a law enforcement or investigative officer engaged in the course of his official duties and the electronic surveillance was authorized by and conducted pursuant to a search warrant or court order of a court of competent jurisdiction.

(c) Penalty.--An offense described in this section is punishable by a fine of not more than $10,000 or imprisonment for not more than five years, or both.

(d) Jurisdiction.--There is Federal jurisdiction over an offense under this section if the person committing the offense was an officer or employee of the United States at the time the offense was committed.

CIVIL LIABILITY

Sec. 110. // 50 USC 1810 // Civil Action.--An aggrieved person, other than a foreign power or an agent of a foreign power, as defined in section 101(a) or (b)(1)(A), respectively, who has been subjected to an electronic surveillance or about whom information obtained by electronic surveillance of such person has been disclosed or used in violation of section 109 shall have a cause of action against any person who committed such violation and shall be entitled to recover--,

(a) actual damages, but not less than liquidated damages of $1,000 or $100 per day for each day of violation, whichever is greater;

(b) punitive damages; and

(c) reasonable attorney's fees and other investigation and litigation costs reasonably incurred.

AUTHORIZATION DURING TIME OF WAR

Sec. 111. // 50 USC 1811 // Notwithstanding any other law, the President, through the Attorney General, may authorize electronic surveillance without a court order under this title to acquire foreign intelligence information for a period not to exceed fifteen calendar days following a declaration of war by the Congress.

TITLE II--CONFORMING ADMENDMENTS AMENDMENTS TO CHAPTER 119 OF TITLE 18, UNITED

STATES CODE

Sec. 201. Chapter 119 of title 18, United States Code, is amended as follows:

(a) Saection 2511(2)(a)(ii)

// 18 USC 2511 // is amended to read as follows:

"(ii) Notwithstanding any other law, communication common carries, their officers, employees, and agents, landlords, custodians, or other persons, are authorized to provide information, facilities, or technical assistance to persons authorized by law to intercept wire or oral communications or to conduct electronic surveillance, as defined in section 101 of the Foreign Intelligence Surveillance Act of 1978, if the common carrier, its officers, employees, or agents, landlord, custodian, or other specified person, has been provided with--,

"(A) a court order directing such assistance signed by the authorizing judge, or

"(B) a certification in writing by a person specified in section 2518(7) of this title

// 18 USC 2518 // or the Attorney General of the United States

that no warrant or court order is required by law, that all statutory requirements have been met, and that the specified assistance is required,

setting forth the period of time during which the provision of the information, facilities, or technical assistance is authorized and specifying thew information, facilities, or technical assistance required. No communication common carrier, officer, employee, or agnet thereof, or landlord, custodian, or other specified person shall disclose the existence of any interception or surveillance or the device used to accomplish the interception or surveillance with respect to which the person has been furnished an order or certification under this subparagraph, except as may otherwise be required by legal process and then only after prior notification to the Attorney General or to the principal prosecuting attorney of a State or any political subdivision of a State, as may be appropriate. Any violation of this subparagraph by a communication common carrier or an officer, employee, agent thereof, shall render the carrier liable for the civil damages provided for in section 2520. // 18 USC 2520. // No cause of action shall lie in any court against any communication common carrier, its officers, employees, or agents, landlord, custodian, or other specified person for providing information, facilities, or assistance in accordance with the terms of an order or certification under this paragraph.".

(b) Section 2511(2)

// 18 USC 2511 //

is amended by adding at the end thereof the following new provisions:

"(e) Notwithstanding any other provision of this title or section 605 or 606 of the Communications Act of 1934, // 47 USC 605, 606 // it shall be unlawful for an officer, employee, or agent of the United States in the normal course of his official duty to conduct electronic surveillance, as defined in section 101 of the Foreign Intelligence Surveillance Act of 1978, as authorized by that Act.

"(f) Nothing contained in this chapter, or section 605 of the Communications Act of 1934, shall be deemed to affect the acquisition by the United States Government of foreign intelligence information from international or foreign communications by a means other than electronic surveillance as defined in secion 101 of the Foreign Intelligence Surveillance Act of 1978,, and procedures in this chapter and the Foreign Intelligence Surveillance Act of 1978 shall be the exclusive means by which electronic surveillance, as defined in section 101 of such Act, and the interception of domestic wire and oral communications may be conducted.".

(c) Section 2511(3)

// 18 USC 2511 //

repealed.

(d) Section 2518(1)

// 18 USC 2518 //

is amended by inserting "under this chapter" after communication".

(e) Section 2518(4) is amended by inserting "under this chapter" after both appearances of "wire or oral communication".

(f) Section 2518(9) is amended by striking out "intercepted" and inserting "intercepted pursuant to this chapter" after "communication".

(g) Section 2518(10)

// 18 USC 2518 //

is amended by striking out "intercepted" and inserting "intercepted pursuant to this chapter" after the first appearance of "communication".

(h) Section 2519(3)

// 18 USC 2519 //

is amended by inserting "pursuant to this chapter" after "wire or oral communications" and after "granted or denied".

TITLE III--EFFECTIVE DATE EFFECTIVE DATE

Sec. 301. The provisions of this Act // 50 USC 1801 // and the amendments made hereby shall become effective upon the date of enactment of this Act, except that any electronic surveillance approved by the Attorney General to gather foreign intelligence information shall not be deemed unlawful for failure to follow the procedures of this Act, if that surveillance is terminated or an order approving that surveillance is obtained under title I of this Act within ninety days following the designation of the first judge pursuant to section 103 of this Act.

Approved October 25, 1978.

LEGISLATIVE HISTORY:

HOUSE REPORTS: No. 95 - 1283, Pt. I accompanying H.R. 7308 (Comm. on the Judiciary) and (Select Comm. on Intelligence) and No. 95 - 1720 (Comm. of Conference).

SENATE REPORTS: No. 95 - 604 and No. 95 - 604, Pt. II( Comm. on the Judiciary) and No. 95 - 701(Select Comm. on Intelligence).

CONGRESSIONAL REOCRD, Vol. 124(1978):

Apr. 20, considered and passed Senate.

Sept. 6, 7, considered and passed House, amended.

Sept. 12, Senate disagreed to House amendments.

Oct. 9, Senate agreed to conference report.

Oct. 12, House agreed to conference report.

WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 14, No. 43:

Oct. 25, Presidential statement.

PUBLIC LAW 95-510, 92 STAT. 1780,

95th CONGRESS, H.R. 13418 OCTOBER 24, 1978
AN ACT To amend the Small Business Act by transferring

thereto those provisions of the

Domestic Volunteer Service Act of 1973 affecting

the operation of volunteer

programs to assist small business, to increase the

maximum allowable compensation

and travel expenses for experts and consultants, and

for other

purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

Sec. 101. Section 8(b) (1) of the Small Business Act (15 U.S.C. 637( b) (1) is amended by striking subparagraph (1) (B) and inserting in lieu thereof the following subparagraphs:

"(B) To establish, conduct, and publicize, and to recruit, select, and train volunteers for (and to enter into contracts, grants, or cooperative agreements therefor), volunteer programs, including a Service Corps of Retired Executives (SCORE) and an Active Corps of Executive (ACE) for the purposes of section 8(b) (1) (A) of this Act; and to facilitate the implementation of such volunteer programs the Administration may maintain at its headquarters and pay the expenses of a team of volunteers subject to such conditions and limitations as the Administration deems appropriate: Provided, That any such payments made pursuant to this subparagraph shall be effective only to such extent or in such amounts as are provided in advance in appropriation Acts.

"(C) To allow any individual or group of persons participating with it in furtherance of the purposes of subparagraphs (A) and (B) to use the Administration's office facilities and related material and services as the Administration deems appropriate, including clerical and stenographic services:

"(i) such volunteers, while carrying out activities under section 8(b) (1) of this Act shall be deemed Federal

employees

for the purposes of the Federal tort claims provisions

in

title 28, United States Code; and for the purposes

of subchapter

I of chapter 81 of title 5, United States Code

// 5 USC 8101. //

(relative

to compensation to Federal employees for work injuries)

shall be deemed civil employees of the United States

within

the meaning of the term 'employee' as defined in

section 8101

of title 5, United States Code, and the provisions

of that

subchapter shall apply except that in computing

compensation

benefits for disability or death, the monthly pay of a

volunteer shall be deemed that received under the

entrance

salary for a grade GS-11 employee;

"(ii) the Administrator is authorized to reimburse such

volunteers

for all necessary out-of-pocket expenses incident to

their provision of services under this Act, or in

connection

with attendance at meetings sponsored by the

Administration,

or for the cost of malpractice insurance, as the

Administrator

shall determine, in accordance with regulations which

he or she shall prescribe, and, while they are carrying

out such

activities away from their homes or regular places of

business,

for travel expenses (including per diem in lieu of

subsistence)

as authorized by section 5703 of title 5, United

States Code,

for individuals serving without pay; and

"(iii) such volunteers shall in no way provide services to

a

client of such Administration with a delinquent loan

outstanding,

except upon a specific request signed by such client

for assistance in connection with such matter.

"(D) Notwithstanding any other provision of law, no payment for suportive services or reimbursement of out-of-pocket expenses made to persons serving pursuant to section 8(b) (1) of this Act

// 15 USC 637. //

shall be subject to any tax or charge or be treated as wages or compensation for the purposes of unemployment, disability, retirement, public assistance, or similar benefit payments, or minimum wage laws.

"(E) Notwithstanding any other provision of law and pursuant to regulations which the Administrator shall prescribe, counsel may be employed and counsel fees, court costs, bail, and other expenses incidental to the defense of volunteers may be paid in judicial or administrative proceedings arising directly out of the performance of activities pursuant to section 8(b) (1) of this Act, as amended (15 U.S.C. 637(b) (1) to which volunteers have been made parties.

"(F) In carrying out its functions under section 8(b) (1) of this Act, the Administration is authorized to accept, in the name of the Administration, and employ or dispose of in furtherance of the purposes of this Act, any money or property, real, personal, or mixed, tangible, or intangible, received by gift, devise, bequest, or otherwise; and, further, to accept gratuitous services and facilities.".

Sec. 102. (a) Title III of the Domestic Volunteer Service Act of 1973 (42 U.S.C. 5031 et seq.), is hereby repealed.

(b) Section 503 of the Domestic Volunteer Service Act of 1973 (42 U. S.C. 5083), is hereby repealed.

Sec. 103. Section 5(c) of the Small Business Act (15 U.S.C. 634(c)), is amended by striking the last sentence and inserting in lieu thereof the following: " Any individual so employed may be compensated at a rate not in excess of the daily equivalent of the highest rate payable under section 5332 of title 5, United States Code, including traveltime, and, while such individual is away from his or her home or regular place of business, he or she may be allowed travel expenses (including per diem in lieu of subsistence) as authorized by section 5703 of title 5, United States Code".

Sec. 104. Section 7(k) (4) of the Small Business Act (15 U.S.C. 636( k) (4) is amended by striking out "$100 per diem" and inserting in lieu thereof "the daily equivalent of the highest rate payable under section 5332 of title 5, United States Code".

Sec. 105. This Act // 15 USC 634. // shall be effective October 1, 1979.

Approved October 24, 1978.

LEGISLATIVE HISTORY:

HOUSE REPORT No. 95 - 375 (Comm. on Small Business).

CONGRESSIONAL RECORD, Vol. 124 (1978):

Sept. 25, considered and passed House.

Oct. 11, considered and passed Senate.

PUBLIC LAW 95-509, 92 STAT. 1775, DEPARTMENT OF ENERGY NATIONAL SECURITY AND MILITARY APPLICATIONS OF NUCLEAR ENERGY AUTHORIZATION Act Of 1979

95th CONGRESS, H.R. 11686 October 24, 1978
An Act To authorize appropriations for the Department of

Energy for national security

programs for fiscal year 1979, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as the " Department of Energy National Security and Military Applications of Nuclear Energy Authorization Act of 1979".

TITLE I-- NATIONAL SECURITY PROGRAMS OPERATING EXPENSES

Sec. 101. Funds are hereby authorized to be appropriated to the Department of Energy (hereinafter in this title referred to as the " Department") for fiscal year 1979 for operating expenses incurred in carrying out national security programs, including scientific research and development in support of the armed services, strategic and critical materials necessary for the common defense, and military applications of nuclear energy as follows:

(1) For Weapons Activities, $1,237,194,000;

(2) For Special Materials Production, $514,500,000;

(3) For Inertial Confinement Fusion, $104,000,000;

(4) For Naval Reactor Development, $265,600,000;

(5) For Defense Intelligence and Arms Control, $32,600,000;

(6) For Nuclear Materials Security and Safeguards, $45,089,000; and

(7) For Program Direction and Management Support Related to National Security Programs, $47,151,000.

PLANT AND CAPITAL EQUIPMENT

Sec. 102. Funds are hereby authorized to be appropriated to the Department for fiscal year 1979, for plant and capital equipment, including planning, construction, acquisition, or modification of facilities (including land acquisition), and for acquisition and fabrication of capital equipment not related to construction, necessary for national security programs, as follows:

(1) For weapons activities:

Project 79-7-a Tonopah Test Range upgrade, Phase II, Sandia Laboratories, Albuquerque, New Mexico, $4,000,000.

Project 79-7-b, fire protection improvements, Los Alamos Scientific Laboratory, Los Alamos, New Mexico (A-E and long lead procurement only), $2,000,000.

Project 79-7-c, proton storage ring, Los Alamos Scientific Laboratory, Los Alamos, New Mexico, $5,000,000.

Project 79-7-d, water cooling station upgrade, Lawrence Livermore Laboratory, Livermore, California, $2,300,000.

Project 79-7-e, production and assembly facilities, Pantex Plant, Amarillo, Texas, $10,000,000.

Project 79-7-f, stockpile quality evaluation facility, Y-12 Plant, Oak Ridge, Tennessee, $2,300,000.

Project 79-7-1, Systems R&D Lab, Sandia Laboratories, Albuquerque, New Mexico (A-E), $1,000,000.

Project 79-7-m, Weapons Materials Analytical Lab, Pantex Plant, Amarillo, Texas, $1,500,000.

Project 79-7-n, utility systems restoration, Y-12 Plant, Oak Ridge, Tennessee, $2,200,000.

Project 79-7-o, universal pilot plant, high explosives, Pantex Plant, Amarillo, Texas, $3,500,000.

Project 79-7-p, facilities for new modern strategic bomb, various locations, $28,000,000.

(2) For special materials production:

Project 79-7-h, utilities replacement and expansion, Idaho Chemical Processing Plant, Idaho National Engineering Laboratory, Idaho Falls, Idaho, $10,500,000.

Project 79-7-i, transmission and distribution systems upgrading, Richland, Washington, $7,000,000.

Project 79-7-j, pollutant discharge elimination, Savannah River, South Carolina, $9,000,000.

(3) For defense waste management:

Project 79-7-k, waste management facilities, Savannah River, South Carolina, $25,000,000.

(4) For project 79-6, general plant projects--,

(A) for weapons activities, $26,400,000;

(B) for special materials production, $15,250,000;

(C) for naval reactor development, $3,000,000; and

(D) for waste management, $5,950,000.

(5) For project 79-8, plant engineering and design--,

(A) for special materials production, $1,500,000;

(B) for defense waste management, $12,000,000;

(C) for military application, $32,000,000; and

(D) for inertial confinement fusion, $1,000,000.

(6) For capital equipment not related to construction--,

(A) for weapons activities, $86,400,000;

(B) for special materials production, $32,000,000;

(C) for waste management, $8,000,000;

(D) for inertial confinement fusion, $8,200,000;

(E) for naval reactor development, $22,000,000;

(F) for nuclear material security and safeguards, $3,000,000; and

(G) for program direction and management support, $300,000.

ADDITIONAL AUTHORIZATIONS FOR PREVIOUSLY AUTHORIZED

PROJECTS

Sec. 103. Funds are hereby authorized to be appropriated to the Department for fiscal year 1979, for national security projects previously authorized by law, as follows:

(1) For project 74-1-b, replacement ventilation air filter, F Chemical Separations Area, Savannah River, South Carolina, $2,100,000; for a total authorization of $7,300,000.

(2) For project 75-7-c, intermediate-level waste management facilities, Oak Ridge National Laboratory, Oak Ridge, Tennessee, $1,000,000; for a total authorization of $11,500,000.

(3) For project 77-13-a, fluorinel dissolution process and fuel receiving improvements, Idaho Chemical Processing Plant, Idaho National Engineering Laboratory, Idaho Falls, Idaho, $50,000,000; for a total authorization of $65,000,000.

(4) For project 77-13-f, waste isolation pilot plant, Delaware Basin, southeast New Mexico, $40,000,000; for a total authorization of $68,000,000.

(5) For project 77-13-g, safeguards and security upgrading, production facilities, multiple sites, $3,800,000; for a total authorization of $20,200,000.

(6) For project 78-4-a, a high energy laser facility (NOVA), Lawrence Livermore Laboratory, Livermore, California, $187,000,000; for a total authorization of $195,000,000.

(7) For project 78-16-c, high explosive flash radiography facility, Lawrence Livermore Laboratory, Livermore, California, $5,900,000; for a total authorization of $10,900,000.

(8) For project 78-16-d, weapons safeguards, various locations, $9,000,000; for a total authorization of $26,000,000.

(9) For project 78-16-g, radioactive liquid waste improvement, Los Alamos Scientific Laboratory, Los Alamos, New Mexico, $5,700,000; for a total authorization of $6,300,000.

(10) For project 78-16-i; laboratory support complex, Los Alamos Scientific Laboratory, Los Alamos, New Mexico, $14,000,000; for a total authorization of $16,000,000.

(11) For project 78-17-a, production component warehouse, Pantex Plant, Amarillo, Texas, $2,550,000; for a total authorization of $2,800,000.

(12) For project 78-17-c, core facilities office building, utilities and roads, Lawrence Livermore Laboratory, Livermore, California, $11,000,000; for a total authorization of $12,300,000.

(13) For project 78-17-d, steam plant improvements, Y-12 Plant, Oak Ridge, Tennessee, $7,000,000; for a total authorization of $10,000,000.

(14) For project 78-18-a, high level waste storage and waste management facilities, Richland, Washington, $9,000,000; for a total authorization of $27,000,000.

(13) For project 78-18-c, environmental, safety and security improvements to waste management and materials processing facilities, Richland, Washington, $13,000,000; for a total authorization of $28,500,000.

TITLE II-- GENERAL PROVISIONS REPROGRAMMING

Sec. 201. Except as otherwise provided in this Act--,

(1) no amount appropriated pursuant to this Act may be used for any program in excess of the amount actually authorized for that particular program by this Act, and

(2) no amount appropriated pursuant to this Act may be used for any program which has not been presented to, or requested of, the Congress,

unless a period of 30 calendar days (not including any day in which either House of Congress is not in session because of adjournment of more than three calendar days to a day certain) has passed after the receipt by the appropriate committees of Congress of notice given by the Secretary of Energy (hereinafter in this title referred to as the " Secretary") containing a full and complete statement of the action proposed to be taken and the facts and circumstances relied upon in support of such proposed action, or unless each such committee before the expiration of such period has transmitted to the Secretary written notice to the effect that such committee has no objection to the proposed action.

PROJECT COST VARIATION PROVISION

Sec. 202. (a) No project for which appropriations are authorized in section 102 (1), (2), or (3) may be started if the current estimated cost of such project exceeds by more than 25 percent the amount authorized for such project.

(b) At any time the current estimated cost of any such project under construction exceeds by more than 25 percent the total amount authorized by law for such project, the Secretary shall (1) promptly notify the appropriate committees of the Congress of such fact and include in the notification an explanation for the increased cost of the project and the revised current estimated cost figures for such project, and (2) not proceed with such project unless and until additional funds for such project are authorized by law.

(c) The provisions of this section shall not apply to any project which has a current estimated cost of less than $5,000,000.

LIMITS ON GENERAL PLANT PROJECTS

Sec. 203. The Secretary is authorized to start any project set forth under section 102(4) only if--,

(1) the then maximum currently estimated cost of such project does not exceed $750,000 and the then maximum currently estimated cost of any building included in such project does not exceed $300,000, except that the building cost limitation may be exceeded if the Secretary determines that it is necessary to do so in the interest of efficiency and economy; and

(2) the total cost of all projects undertaken under such section does not exceed the estimated cost set forth in such section by more than 25 percent.

AVAILABILITY OF FUNDS

Sec. 204. Subject to the provisions of appropriations Acts, amounts appropriated pursuant to sections 101 and 102 of this Act for policy and management activities, for general plant projects, and for plant engineering and design are available for use, when necessary, in connection with all national security programs of the Department of Energy.

AUTHORIZATION TO PERFORM CONSTRUCTION DESIGN SERVICES

Sec. 205. The Secretary is authorized to perform construction design services for any construction project of the Department of Energy in support of national security programs which have been presented to, or requested of, the Congress in amounts not in excess of the amount specified in section 102(5). In any case in which the estimated design cost for any project is in excess of $300,000, the Secretary shall notify the appropriate Committees of Congress in writing of the estimated design cost for such project at least 30 days before any funds are obligated for design services for such project.

ADJUSTMENTS FOR PAY INCREASES

Sec. 206. Appropriations authorized by this Act for salary, pay, retirement, or other benefits for Federal employees may be increased by such amounts as may be necessary for increases in such benefits authorized by law.

RESTRICTIONS ON THE B43 BOMB

Sec. 207. No funds authorized to be appropriated by this Act may be used for the testing, modernization, rebuilding, or replacement of any component of the B43 bomb, except that such funds may be used for quality and reliability testing of such bomb and for the replacement of limited-life components of such bomb.

FUTURE REQUESTS OF AUTHORIZATIONS FOR APPROPRIATIONS

Sec. 208. The Secretary shall submit to the Congress for fiscal year 1980, and for each subsequent fiscal year, a single request for authorizations for appropriations for all programs of the Department of Energy involving scientific research and development in support of the armed forces, military applications of nuclear energy, strategic and critical materials necessary for the common defense, and other programs which involve the common defense and security of the United States.

STUDY OF CAPITAL INVESTMENT REQUIREMENTS

Sec. 209. (a) The Secretary shall conduct a study of the status of all Government-owned, contractor-operated, plant, capital equipment, facilities, and utilities which support the United States nuclear weapons program and submit the results of such study to the Congress at the same time that the Department of Energy authorization request for fiscal year 1980 is submitted to the Congress.

(b) The Secretary shall include in such report--,

(1) an analysis of the measures required to restore the nuclear weapons complex of the United States to a satisfactory condition, and

(2) a plan containing proposed schedules for carrying out and funding any restoration found to be necessary.

REQUIREMENT FOR MILITARY PERSONNEL DETAILED TO THE

DEPARTMENT OF

ENERGY TO BE INCLUDED IN AUTHORIZED END

STRENGTHS

Sec. 210. Section 625(b) of the Department of Energy Organization Act (91 Stat. 598) // 42 USC 7235 // is amended by striking out the second sentence.

RESTRICTIONS ON SM-2 WARHEAD

Sec. 211. None of the funds authorized to be appropriated by this or any other Act may be obligated or expended for the development of a nuclear warhead for the SM-2 standard missile until an arms control impact statement for such warhead has been filed with the Congress.

Approved October 24, 1978.

LEGISLATIVE HISTORY:

HOUSE REPORT No. 95-1108 (Comm. on Armed Services).

SENATE REPORT No. 95-961 accompanying S. 2693 (Comm. on Armed Services) and (Comm. on Energy and Natural Resources).

CONGRESSIONAL RECORD, Vol. 124 (1978):

May 16, 17, considered and passed House.

Sept. 30, considered and passed Senate, amended, in lieu of S. 2693.

Oct. 11, House concurred in Senate amendment.

PUBLIC LAW 95-508, 92 STAT. 1774

95th CONGRESS, H.R. 12165 OCTOBER 24, 1978
An Act To extend until the close of June 30, 1981, the existing

suspension of duties on

certain metal waste and scrap, unwrought metal, and

other articles of metal,

and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That (a) subpart B of part 1 of the Appendix to the Tariff Schedules of the United States (19 U.S.C. 1202) // 19 USC 1202 // is amended--,

(1) by striking out the colon at the end of the superior heading to items 911.10, 911.11, and 911.12 and inserting in lieu thereof "or to be processed by shredding, shearing, compacting, or similar processing which renders them fit only for the recovery of the metal content:"; and

(2) by striking out "6/30/78" in each of items 911.10, 911.11, and 911.12 and inserting in lieu thereof "6/30/81".

(b) The amendments made by subsection (a) // 19 USC 1202 // shall apply with respect to articles entered, or withdrawn from warehouse, for consumption on or after the date of the enactment of this Act. // 19 USC 1202 //

(c) Upon request therfore filed with the customs officer concerned on or before the ninetieth day after the date of the enactment of this Act, the entry or withdrawal of any article--,

(1) which was made after June 30, 1978, and before the date of the enactment of this Act, and

(2) with respect to which there would have been no duty if the amendment made by subsection (a)(2) applied to such entry or withdrawal,

shall, notwithstanding section 514 of the Tariff Act of 1930 or any other provision of law, be liquidated or reliquidated as though such entry or withdrawal had been made on the date of the enactment of this Act.

Sec. 2. (a) Subpart B of part 1 of the Appendix to the Tariff Schedules of the United States (19 U.S.C. 1202) // 19 USC 1202 // is amended by adding in numerical sequence the following new item:

' 903.60 Mixtures of mashed or macerated hot red

peppers and salt

(provided for in item 141.77 or 141.81, part 8 C,

schedule 1)..

Fr ee No change On or before

6/30/81".

(b) The amendment made by subsection (a) // 19 USC 1202 // shall apply with respect to articles entered, or withdrawn from warehouse, for consumption on or after the date of enactment of this Act.

Approved October 24, 1978.

LEGISLATIVE HISTORY:

HOUSE REPORT No. 95-1361 (Comm. on Ways and Means).

SENATE REPORT No. 95-1243 (Comm. on Finance).

CONGRESSIONAL RECORD, Vol. 124 (1978):

Sept. 12, considered and passed House.

Sept. 30, considered and passed Senate, amended.

Oct. 10, House concurred in Senate amendments.

PUBLIC LAW 95-507, 92 STAT. 1757

95th Congress, H.R. 11318 October 24, 1978
AN ACT To amend the Small Business Act and the Small

Business Investment Act of 1958.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

TITLE I -AMENDMENTS TO THE SMALL BUSINESS INVESTMENT ACT OF 1958 Chapter 1

Sec. 101. Section 303(c)(1) of the Small Business Investment Act of 1958 // 15 USC 683. // is amended to read as follows:

"(1) shares of nonvoting stock (or other corporate securities having similar characteristics), provided-

"(i) dividends are preferred and cumulative to the extent of 3 per centum of par value per annum; "(ii) on liquidation of redemption the Administration is entitled to the preferred payment of the par value of

such

securities; and prior to any distribution (other than

to the

Administration) the Administration shall be paid any

amounts as may be due pursuant to subparagraph (i) of

this

paragraph;

"(iii) the purchase price shall be at par value and, in any one sale, $50,000 or more; and "(iv) the amount of such securities purchased and

outstanding

at any one time shall not exceed--

"(A) from a company licensed on or before October 13, 1971, 200 per centum of the combined private paid-in capital and paid-in surplus of such company, or "(B) from any such company licensed after October 13, 1971, and having a combined paid-in capital and paid-in surplus of less than $500,000, 100 per centum of such capital and surplus, or "(C) from any such company licensed after October 13, 1971, and having a combined private paid-in capital and paid-in surplus of $500,000 or more, 200 per centum of such capital and surplus.

" The amount of such securities purchased by the Administration in excess of 100 per centum of such capital and surplus from any company described in clause (A) or (C) may not exceed an amount equal to the amount of its funds invested in or legally committed to be invested in equity securities. For the purposes of the subsection, the term 'equity securities' means stock of any class (including preferred stock) or limited partnership interests, or shares in a syndicate, business trust, joint stock company or association, mutual corporation, cooperative or other joint ventures for profit, or unsecured debt instruments which are subordinated by their terms to all other borrowings of the issuer.".

Sec. 102. The last sentence of section 308 (b) of the Small Business Investment Act of 1958 // 15 USC 687. // is amended to read as follows: "such companies are authorized to invest funds not reasonably needed for their operations in direct obligations of, or obligations guaranteed as to principal and interest by, the United States, or in certificates of deposit maturing within one year or less, issued by any institution the accounts of which are insured by the Federal Deposit Insurance Corporation or the Federal Saving and Loan Insurance Corporation, or in savings accounts of such institutions.".

Sec. 103. The last sentence of section 317 of the Small Business Investment Act of 1958 // 15 USC 687i. //

Sec. 104 Section 301(d) of the Small Business Investment Act of 1958 // 15 USC 681. // is amended by insertin "or formed as a limited partnership," immediately after "statutes,".

Sec. 105. Section 302(a) of the Small Business Investment Act of 1958 is amended to read as follows:

" Sec. 302(a). The combined private paid-in capital and paid-in surplus of any company licensed pursuant to sections 301(c) and (d) of this Act shall not be less than $150,000: Provided, however, That the combined private paid-in capital and paid-in surplus of any company licensed on or after October 1, 1979 pursuant to sections 301(c) and (d) of this Act shall be not less than $500,000. In all cases, such capital and surplus shall be adequate to assure a reasonable prospect that the company will be operated soundly and profitably, and managed actively and prudently in accordance with its articles.".

Chapter 2

Sec. 110. Section 410(4) of the Small Business Investment Act of 1958 // 15 USC 694a // is amended by--

(1) deleting the word "or" after the phrase "conditions of the contract,"; and

(2) deleting the period after the phrase "fails to make prompt payment" and inserting in lieu thereof ", or (D) is an agent, independent agent, underwriter, or any other company or individual empowered to act on behalf of such person.".

Sec. 111 Section 411 of the Small Business Investment Act of 1958 // 15 USC 694b // is amended to read as follows.

" Sec. 411. (a) The Administration may, upon such terms and conditions as it may prescribe, guarantee and enter into commitments to guarantee any surety (the terms and conditions of said guarantees and commitments may vary from surety to surety on the basisof the Administration's experience with the particular surety) against loss, as hereinafter provided, as the result of a breach of the terms of a bid bond, payment bond, performance bond, or bonds ancillary and coterminous therewith, by a principal on any contract up to $1,000,000, subject to the following conditions:

"(1) the person who would be the principal of the bond is a small business concern;

"(2) the bond is required in order for such person to bid on a contract, or to serve as a prime contractor or subcontractor thereon;

"(3) such person is not able to obtain such bond on reasonable terms and conditions without a guarantee under this section;

"(4) the Administration determines that there is a reasonable expectation that such person will perform the covenants and conditions of the contract with respect to which the bond is required;

"(5) the contract meets requirements established by the Administration for feasibility of successful completion and reasonableness of cost; and

"(6) the terms and conditions of any bond guaranteed under the authority of this part are reasonable in light of the risks involved and the extent of the surety's participation.

"(b) Subject to the provisions of this section, in connection with the issuance by the Administration of a guarantee to a surety as provided by subsection (a), the Administration may agree to indemnify such surety against a loss sustained by such surety in avoiding or attempting to avoid a breach of the terms of a bond guaranteed by the Administration pursuant to subsection (a): Provided, however-

"(1) prior to making any payment under this subsection, the Administration shall first determine that a breach of the terms of such bond was imminent;

"(2) no payment by the Administration pursuant to this subsection shall exceed 10 per centum of the contract price unless the Administrator determines that a greater payment should be made as a result of a finding by the Administrator that the surety's loss

sustained in avoiding or attempting to avoid such breach was

necessary and reasonable; and

"(3) no new agreements to indemnify shall be entered into pursuant to this subsection subsequent to two years after the date of its enactment.

"(c) Any guarantee or agreement to indemnify under this section shall obligate the Administration to pay to the surety a sum not to exceed (1) in the case of a breach of contract, 90 per centum of the loss incurred and paid by the surety to or on behalf of the obligee, or to labor and materialmen, in fulfilling the terms of the contract as the result of the breach; or (2) in a case to which subsection (b) applies, the amount determined under subsection (b).

"(d) The Administration may establish and periodically review regulations for participating sureties which shall require such sureties to meet Administration standards for underwriting, claim practices, and loss ratios.

"(e) Pursuant to any such guarantee or agreement, the Administration shall reimburse the surety, as provided in subsection (c) of this section, except that the Administration shall be relieved of all liability if-

"(1) the surety obtained such guarantee or agreement, o applied for such reimbursement, by fraud or material misrepresentation, or

"(2) the total contract amount at the time of execution of the bond or bonds exceeds $1,000,000.

"(f) The Administration may, upon such terms and conditions as it may prescibe, adopt a procedure for reimbursing as surety for its paid losses billed each month, based upon prior monthly payments to such surety, with subsequent adjustments after such disbursement.

"(g) The Administration may at all reasonable times audit in the offices of a participating surety all documents, files, books, records, and other material relevant to the Administration's guarantee, commitments to guarantee, or agreements to indemnify any surety pursuant to this section.

"(h) The Administration shall administer this Part on a prudent and economically justifiable basis and establish such fee or fees for small business concerns and premium or premiums for sureties as it deems reasonable and necessary, to be payable at such time and under such conditions as may be determined by the Administration.

"(i) The provisions of section 402 // 15 USC 693. // shall apply in the administration of this section.".

Sec.112. Section 502 of the Small Business Investment Act of 1958 // 15 USC 696. // is amended by adding at the end of paragraph (4) the following new sentence: " Community injection funds may be derived, in whole or in part, from-

"(A) State or local governments;

"(B) banks or other financial institutions;

"(C) foundations or other not-for-profit institutions; or

"(D) a small business concern (or its owners, stockholders,or affiliates) receiving assistance through bodies authorized under this title.".

TITLE II- AMENDMENTS TO THE SMALL BUSINESS ACT Chapter 1

Sec.201. Section 2 of the Small Business Act // 15 USC 631 //

is amended by adding at the end thereof the following new subsection:

"(e)(1) with respect to the Administration's business development programs the Congress finds-

"(A) that the opportunity for full participation in our free enterprise system by socially and economically disadvantaged persons is essential if we are to obtain social and economic equality for such persons and improve the functioning of our national economy;

"(B) that many such persons are socially disavantaged because of their identification as members of certain groups that have suffered the effects of discriminatory practices or similar invidious circumstances over which they have no control;

"(C) that such groups include, but are not limited to, Black Americans, Hispanic Americans, Native Americans, and other minorities;

"(D) that it is in the national interest to expeditiously ameliorate the conditions of socially and economically disadbsntaged groups;

"(E) that such conditions can be improved by providing the maximum practicable opportunity for the development of small business concerns owned by members of socially and economically disadvantaged groups;

"(F) that such development can be materially advanced through the procurement by the United States of articles, equipment supplies, services, materials, and construction work from such concerns; and

"(G) that such procurements also benefit the United States by encouraging the expansion of suppliers for such procurements, thereby encouraging competition among such suppliers and promoting economy in such procurements.

"(2) It is, therefore, the purpose of section 8(a) to-

"(A) foster business ownership by individuals who are both socially and economically disadvantaged;

"(B) promote the competitive viability of such firms by providing such available contract, financial, technical, and management assistance as may be necessary; and

"(C) clarify and expand the program for the procurement by the United States of articles, equipment, supplies, services, materials, and construction work from small business concerns owned by socially and economically disadvantaged individuals.".

Sec.202. (a) Section 8(a) of the Small Business Act (15 U.S.C. 637 (a)) is amended to read as follows:

" Sec. 8. (a) (1) It shall be the duty of the Administration and it is hereby empowered, whenever it determines such action is necessary or appropriate-

"(A) to enter into contracts with the United States Government and any department, agency, or officer thereof having procurement powers obligating the Administration to furnish articles, equipment, supplies, services, or materials to the Government of to perform construction work for the Government. In any case in which the Administration certifies to any officer of the Government having procurement powers that the Administration is competent and responsible to perform any specific Government procurement contract to be let by any such officer, such officer shall be authorized in his discretion to let such procurement contract to the Administration upon such terms and conditions as may be agreed upon between the Administration and the procurement officer. Whenever the Administration and such procurement officer fail to agree, the matter shall be submitted for determination to the Secretary or the head of the appropriate department or agency by the Administrator;

"(B) to enter into contracts with such agency, as shall be designated by the President within 60 days after the effective date of this paragraph, to furnish articles, equipment, supplies, services, or materials, or to perform construction work for such agency. In any case in which the Administration certifies to any officer of such agency having procurement powers that the Administration is competent and responsible to perform any specific procurement contract to be let any such officer, such officer shall let such procurement contract to the Administration upon such terms and conditions as may be agreed upon between the Administration and the procurement officer. If the Administration and such procurement officer fail to agree on such terms and conditions, either the Administration or such officer shall promptly notify, in writing, the head of such agency. The head of such agency shall have five days (exclusive of Saturdays, Sundays, and legal holidays) to establish the terms and conditions upon which such procurement contract may be let to the Administration, and shall communicate in writing to the Administration the terms and conditions so established. Within five days (exclusive of Saturdays, Sundays, and legal holidays) after the receipt of such written communication, the Administration shall decide whether to perform such procurement contract or withdraw its prior certification that the Administration is competent and responsible to perform such contract; and

"(C) to arrange for the performance of such procurement contracts by negotiating or otherwise letting subcontracts to socially and economically disadvantaged small business concerns for construction work, services, or the manufacture, supply, assembly of such articles, equipment, supplies, materials, or parts thereof, or servicing or processing in connection therewith, or such management services as may be necessary to enable the Administration to perform such contracts.

" No contract may be entered into under subparagraph (B) after September 30, 1980.

"(2) Notwithstanding subsections (a) and (c) of the first section of the Act entitled ' An Act requiring contracts for the construction, alteration, and repair of any public building or public work of the United States to be accompanied by a performance bond protecting the United States and by additional bond for the protection of persons furnishing material and labor for the construction, alteration, or repair of said public buildings or public work,' approved August 24, 1935 (49 Stat. 793) no small business concern shall be required to provide any amount of any bond as a condition of receiving any subcontract under this subsection if the Administrator determines that such amount is inappropriate for such concern in performing such contract: Provided, That the Administrator shall exercise the authority granted by the paragraph only if-

"(A) the Administration takes such measures as it deems appropriate for the protection of persons furnishing materials and labor to a small business receiving any benefit pursuant to this paragraph;

"(B) the Administration assists, insofar as practicable, a small business receiving the benefits of this paragraph to develop, within a reasonable period of time, such financial and other capability as may be needed to obtain such bonds as the Administration may subsequently require for the successful completion of any program conducted under the authority of this subsection;

"(C) the Administration finds that such small business is unable to obtain the requisite bond or bonds from a surety and that no surety is willing to issue such bond or bonds subject to the guarantee provisions of Title IV of the Small Business Investment Act of 1958; and

"(D) the small business is determined to be a start-up concern and such concern has not been participating in any program conducted under the authority of this subsection for a period exceeding one year.

" This paragraph shall not apply after September 30, 1980.

"(3) Any small business concern selected by the Administration to perform any Federal Government procurement contract to be let pursuant to this subsection shall, when practicable, participate in any negotiation of the terms and conditions of such contract.

"(4) For purposes of this section, the term 'socially and economically disadvantaged small business concern' means any small business concern-

"(A) which is at least 51 per centum owned by one or more socially and economically disadvantaged individuals; or, in the case of any publicly owned business, at least 51 centum of the stock of which is owned by one or more socially and economically disadvantaged individuals; and

"(B) whose management and daily business opeartions are controlled by one or more of such individuals.

"(5) Socially disadvantaged individuals are those who have been subjected to racial or ethnic prejudice or cultural bias because of their identity as a member of a group without regard to their individual qualities.

"(6) Economically disadvantaged individuals are those socially disadvantaged individuals whose ability to compete in the free enterprise system has been impaired due to diminished capital and credit opportunities as compared to others in the same business area who are not socially disadvantaged. In determining the degree of diminished credit and capital opportunities the Administration shall consider, but not be limited to, the assets and net worth of such socially disadvantaged individual.

"(7) No small business concern shall be deemed eligible for any assistance pursuant to this subsection unless the Administration determines that with contract, financial, technical, and management support the small business concern will be able to perform contracts which may be awarded to such concern under paragraph (1) (C) and has reasonable prospects for success in competing in the private sector.

"(8) All determinations made pursuant ot paragraphs (4), (5), (6) and (7), shall be made by the Associate Administrator for Minority Small Business and Capital Ownership Development.

"(9) Within ninety days after the effective date of this paragraph, the Administration shall publish in the Federal Register rules setting forth those conditions or circumstances pursuant to which a firm previously deemed eligible by the Administration may be denied assistance under the provisions of this subsection: Provided, That no such firm shall be denied total participation in any program conducted under the authority of this subsection without first being afforded a hearing on the record in accordance with chapter 5 of title 5, United States Code.

"(10) The Administration shall develop and implement an outreach program to inform and recruit small business concerns to apply for eligibility for assistance under this subsection.

"(11) To the maximum extent practicable, consturction subcontracts awarded by the Administration pursuant to this subsection shall be awarded within the county or State where the work is to be performed.

"(12) To the maximum extent practicable the Associate Administrator for Minority Small Business and Capital Ownership Development shall submit, no less frequently than annually, a yearly estimate of the dollar amounts and types of contracts required for the efficient use of any program conducted under the authority of this subsection, to each agency which may participate in such program.".

(b) Not later than June 30, 1980, the General Accounting Office shall submit to the Congress a report which, with respect to provisions of paragraphs (1)(b) and (2) of section 8(a) of the Small Business Act, shall evaluate the implementation of such provisions and whether such implementation furthered the purpose under section 2(e) of the Small Business Act.

" Sec.203. Section 2(c) of the Small Business Act // 15 USC 631. //

is amended by inserting "(1) after "(c)" and by adding at the end thereof the following new paragraph:

"(2) (A) With respect to the programs authorized by section 7(j) of this Act, the Congress finds-

"(i) that ownership and control of productive capital is concentrated in the economy of the United States and certain groups, therefore, own and control little productive capital;

"(ii) that certain groups in the United States own and control little productive capital because they have limited opportunities for small business ownership;

"(iii) that the broadening of small business ownership among groups that presently own and control little productive capital is essential to provide for the well-being of this Nation by promoting their increased participation in the free enterprise system of the United States;

"(iv) that such development of business ownership among groups that presently own and control little productive capital will be greatly facilitated through the creation of a small business ownership development program, which shall provide services, including, but not limited to, financial, management, and technical assistance.

"(v) that the power to let sole source Federal contracts pursuant to section 8(a) of the Small Business Act can be an effective procurement assistance tool for development of business ownership among groups that own and control little productive capital; and

"(vi) that the procurement authority under section 8(a) of the Small Business Act shall be used only as a tool for developing business ownership among groups that own and control little productive capital.

"(B) It is, therefore, the purpose of the programs authorized by section 7(j) of this Act to-

"(i) foster business ownership by individuals in groups that own and control little productive capital; and

"(ii) promote the competitive viability of such firms by creating a small business and capital ownership development program to provide such available financial, technical, and management assistance as may be necessary.".

Sec.204. Section 7(j) of the Small Business Act is amended to read as follows:

"(j)(1) The Administration shall provide financial assistance to public or private organizations to pay all or part of the cost of projects designed to provide technical or management assistance to individuals or enterprises eligible for assistance under sections 7(i), 7(j)(10), and 8(a) of this Act, with special attention to small business located in areas of high concentration of unemployed or lowincome individuals to small business eligible ot receive contracts pursuant to section 8(a) of this Act.

"(2) Financial assistance under this subsection may be provided for projects, including, but not limited to-

"(A) planning and research, including feasibility studies and market research;

"(B) the identification and development of new business opportunities;

"(C) the furnishing of centralized services with regard to public services and Federal Government programs including programs authorized under section 7 (i), (7), (j), (10), and 8 (a) of this Act;

"(D) the establishment and stregthening of business service agencies, including trade associations and cooperatives; and

"(E) the furnishing of business counseling, management training, and legal and other related services, with special emphasis on the development of management training programs using the resources of the business community, including the development of management training opportunities in exishing business and with emphasis in all cases upon providing management training of sufficient scope and duration to develop entrepreneurial and managerial self-sufficiency on the part of the individuals served.

"(3) The Administration shall encourage the placement of subcontracts by businesses with small business concerns located in area of high concentration of unemployed or low-income individuals, with small businesses owned by low-income individuals, and with small businesses eligible to receive contracts pursuant to section 8(a) of this Act. The Administration may provide incentives and assistance to such businesses that will aid in the training and upgrading of potential subcontractors or other small business concerns eligible for assistance under sections 7(i), 7(j), and 8(a) of this Act. // 15 USC 636. //

"(A) An advisory committee composed of five high-level officers from five United States business and five representtatives of minority small businesses shallbe created to facilitate the achievement of the purposes of this paragraph. The members of the advisory committee shall be appointed by the President. The chairman of the advisory committee, who shall be designated by the President shall report annually to the President and to the Congress on the activities of the advisory committee.

"(B) The General Accounting Office shall evaluate the activities taken by the Administration to achieve the purpose of this paragraph and evaluate the success of these activities in achieving the purposes of this paragraph. The General Accounting Office shall report to the Congress by January 1, 1981, and at any time thereafter at the discretion of the of the Comptroller General, on the findings of this evaluation and shall make recommendations on actions needed to improve the Administration's performance pursuant to this paragraph.

"(4) The Administration shall give preference to projects which promote the ownership, participation in ownership, or management of small business owned by low-income individuals and small businesses eligible to receive contracts pursuant to section 8(a) of this Act.

"(5) The financial assistance authorized for projects under this subseciton includes assistance advanced by grant, agreement, or contract.

"(6) The Administration is authorized to make payments under grants and contracts entered into under this subsection in lump sum or installments, and in advance or by way of reimbursement, and in the case of grants, with necessary adjustments on account of overpayments or underpayments.

"(7) To the extent feasible, services under this subsection shall be provided in a location which is easily accessible to the individuals and small business concerns served.

"(8) The General Accounting Office shall provide for an independent and continuing evaluation of programs under sections 7 (i), 7 (j), and 8 (a) of this Act, including full information on, and analysis of, the character and impact of managerial assistance provided, the location, income characteristics, and extent to which private resources and skills have been involved in these programs. Such evaluation together with any recommendations deemed advisable by the Comptroller General shall be reported to the Congress by January, 1, 1981, and at any time thereafter at the discretion of the Comptroller General.

"(9) The Administration shall take such steps as may be necessary and appropriate, in coordination and cooperation with the heads of other Federal departments and agencies, to insure that contracts, subcontracts, and deposits made by the Federal Government or with programs aided with Federal funds are placed in such way as to further the purposes of sections 7(i), 7(j), and 8(a) of this Act.

"(10) There is established within the Administration a small business and capital ownership development program (hereinafter referred to as the ' Program') which shall provide assistance exclusively for small business concerns eligible to receive contracts pursuant to section 8 (a) of this Act. The management of the Program shall be vested in the Associate Administrator for Minority Small Business and Capital Ownership Development who shall also manage all other services and activities authorized under sections 7(j) and 8(a) of this Act.

"(A) The Program shall-

"(i) assist small business concerns participating in the Program to develop comprehensive business plans with

specific

business targets, objectives, and goals;

"(ii) provide for such other nonfinancial services as

deemed

necessary for the establishment, preservation, and

growth

of small business concerns participating in the

Program,

including but not limited to (I) loan packaging, (Ii)

financial

counseling, (Iii) accounting and bookkeeping

assistance,

(IV) marketing assistance, and (V) management

assistance;

"(iii) assist small business concerns participationg in the Program to obtain equity and debt financing; "(iv) establish regular performance monitoring and reporting systems for small business concerns

participating

in the Program to assure compliance with their business

plans;

"(v) analyze and report the causes of success andc failure of small business concerns participating in the

Program;

and

"(vi) provide assistance necessary to help small business concerns participating in the Program to procure surety bonds, with such assistance including, but not limited

to, (I)

the preparation of application forms required to

receive a

surety bond, (Ii) special management and technical

assistance

disigned to meet the specific needs of small business

concerns participating in the Program and which have

received or are applying to receive a surety bond, and

(III)

preparation of all forms necessary to receive a surety

bond

guarantee from the Administration pursuant to title

IV, part

B of the Small Business Investment Act of 1958.

// 15 USC 694a. //

"(B) Small business concerns eligible to receive contracts pursuant to section 8 (a) of this Act shall participate in the Program.

"(C) No small business concern shall receive a contract pursuant to section 8(a) of this Act unless the Program is able to provide such small business concern with, but not limited to, such management, technical, and financial services as may be necessary to promote the competitive viability of the small business concern within a reasonable period of time.

"(11) The Associate Administrator for Minority Small Business and Capital Owership Development shall be responsible for coordinating and formulating policies relating to Federal assistance to small business concerns eligible for assistance under section 7(i) of this Act and small business concerns eligible to receive contracts pursuant to section 8(a) of this Act.

Sec. 205. Section 7(k) of the Small Business Act is amended by striking the words "7(i) and 7(j)" and inserting in lieu thereof "7(i), 7(j), and 8(a)".

Sec. 206. Section 4 (b) of the Small Business Act // 15 USC 633. //

is amended by striking " Associate Administrator for Minority Small Business" where it appears therein and by substituting the following: " Associate Adminstrator for Minority Small Business and Capital Ownership Development".

Sec. 207. Nothing in this chapter // 15 USC 647 // is intended to duplicate or limit any programs or projects administered by the Department of Commerce.

CHAPTER 2

Sec. 211. Section 8(d) of the Small Business Act // 15 USC 637. // is amended to read as follow:

"(d) (1) It is the policy of the United States that small business concerns, and small business concerns owned and controlled by socially and economically disadvantaged individuals, shall have the maximum practicable opportunity to participate in the performance of contracts let by any Federal agency.

"(2) The clause stated in paragraph (3) shall be included in all contracts let by any Federal agency except any contract which--,

"(A) does not exceed $10,000; "(B) including all subcontracts under such contracts

will be performed entirely outside of any State, territory, or possession of the United States, the District of Columbia, or the Commonwealth of Puerto Rico; or

"(C) is for services which are personal in nature.

"(3) The clause required by paragraph (2) shall be as follows:

"'(A) It is the policy of the United States that small business concerns and small business concerns owned and controlled by socially and economically disadvantaged individuals shall have the maximum practicable opportunity to participate in the performance of contracts let by any Federal agency.

"'(B) The contractor hereby agrees to carry out this policy in the awarding of subcontracts to the fullest extent consistent with the efficient performance of this contract. The contractor further agrees to cooperate in any studies or surveys as may be conducted by the United States Small Business Administration or the awarding agency of the United States as may be necessary to determine the extent of the contractor's compliance with this clause.

"'(C) As used in this contract, the term "small business concern" shall mean a small business as defined pursuant to section 3 of the Small Business Act

// 15 USC 632. //

and relevant regulations promulgated pursuant thereto. The term "small business concern owned and controlled by socially and economically disadvantaged individuals" shall mean a small business concern--,

"'(i) which is at least 51 per centum owned by one or more socially and economically disadvantaged individuals;

or, in

the case of any publicly owned business, at least 51

per centum

of the stock of which is owned by one or more socially

and

economically disadvantaged individuals; and

"'(ii) whose management and daily business operations are controlled by one or more of such individuals.

"' The contractor shall presume that socially and economically disadvantaged individuals include Black Americans, Hispanic Americans, Native Americans, and other minorities, or any other individual found to be disadvantaged by the Administration pursuant to section 8 (a) of the Small Business Act.

"'(D) Contractors acting in good faith may rely on written representations by their subcontractors regarding their status as either a small business concern or a small business concern owned and controlled by socially and economically disadvantaged individuals.'

"(4) (A) Each solicitation of an offer for a contract to be let by a Federal agency which is to be awarded pursuant to the negotiated method of procurement and which may exceed $1,000,000, in the case of a contract for the construction of any public facility, or $500,000, in the case of all other contracts, shall contain a clause notifying potential offering companies of the provisions of this subsection relating to contracts awarded pursuant to the negotiated method of procurement.

"(B) Before the award of any contract to be let, or any amendment or modification to any contract let, by any Federal agency which--,

"(i) is to be awarded, or was let, pursuant to the

negotiated

method of procurement,

"(ii) is required to include the clause stated in

paragraph (3),

"(iii) may exceed $1,000,000 in the case of a contract

for the

construction of any public facility, or $500,000 in the

case of all

other contracts, and

"(iv) which offers subcontracting possibilities,

the apparent successful offeror shall negotiate with the procurement authority a subcontracting plan which incorporates the information presciribed in paragraph (6). The subcontracting plan shall be included in and made a material part of the contract.

"(C) If, within the time limit prescribed in regulations of the Federal agency concerned, the apparent successful offeror fails to negotiate the subcontracting plan required by this paragraph, such offeror shall become ineligible to be awarded the contract. Prior compliance of the offeror with other such subcontracting plans shall be considered by the Federal agency in determining the responsibility of that offeror for the award of the contract.

"(D) No contract shall be awarded to any offeror unless the procurement authority determines that the plan to be negotiated by the offeror pursuant to this paragraph provides the maximum practicable opportunity for small business concerns and small business concerns owned and controlled by socially and economically disadvantaged individuals to participate in the performance of the contract.

"(E) Notwithstanding any other provision of law, every Federal agency, in order to encourage subcontracting opportunities for small business concerns and small business concerns owned and controlled by the socially and economically disadvantaged individuals as defined in paragraph (3) of this subsection, is hereby authorized to provide such incentives as such Federal agency may deem appropriate in order to encourage such subcontracting opportunities as may be commensurate with the efficient and economical performance of the contract: Provided, That, this subparagraph shall apply only to contracts let pursuant to the negotiated method of procurement.

"(5) (A) Each solicitation of a bid for any contract to be let, or any amendment or modification to any contract let, by any Federal agency which--,

"(i) is to be awarded pursuant to the formal advertising

method

of procurement,

"(ii) is required to contain the clause stated in

paragraph (3)

of this subsection,

"(iii) may exceed $1,000,000 in the case of a contract

for the

construction of any public facility, or $5000,000, in

the case of all

other contracts, and

"(iv) offers subcontracting possibilities,

shall contain a clause requiring any bidder who is selected to be awarded a contract to submit to the Federal agency concerned a subcontracting plan which incorporates the information prescribed in paragraph (6). "(B) If, within the time limit prescribed in regulations of the Federal agency concerned, the bidder selected to be awarded the contract fails to submit the subcontracting plan required by this paragraph, such bidder shall become ineligible to be awarded the contract. Prior compliance of the bidder with other such subcontracting plans shall be considered by the Federal agency in determining the responsibility of such bidder for the award of the contract. The subcontracting plan of the bidder awarded the contract shall be included in and made a material part of the contract.

"(6) Each subcontracting plan required under paragraph (4) or (5) shall include--,

"(A) percentage goals for the utilization as

subcontractors of

small business concerns and small business concerns

owned and

controlled by socially and economically disadvantaged

individuals;

"(B) the name of an individual within the employ of the offeror or bidder who will administer the

subcontracting program

of the offeror or bidder and a description of the

duties of

such individual;

"(C) a description of the efforts the offeror or bidder

will take

to assure that small business concerns and small

business concerns

owned and controlled by the socially and economically

disadvantaged

individuals will have an equitable opportunity to

compete

for subcontracts;

"(D) assurances that the offeror or bidder will include

the

clause required by paragraph (2) of this subsection in

all subcontracts

which offer further subcontracting opportunities, and

that the offeror or bidder will require all

subcontractors (except

small business concerns) who receive subcontracts in

excess of

$1,000,000 in the case of a contract for the

construction of any

public facility, or in excess of $500,000 in the case

of all other

contracts, to adopt a plan similar to the plan required

under

paragraph (4) or (5);

"(E) assurances that the offeror or bidder will submit

such

periodic reports and cooperate in any studies or

surveys as may

be required by the Federal agency or the

Administration in order

to determine the extent of compliance by the offeror or

bidder

with the subcontracting plan; and

"(F) a recitation of the types of records the successful

offeror

or bidder will maintain to demonstrate procedures which

have

been adopted to comply with the requirements and goals

set forth

in this plan, including the establishment of source

lists of small

business concerns and small business concerns owned and

controlled

by socially and economically disadvantaged individuals;

and efforts to identify and award subcontracts to such

small

business concerns.

"(7) The provisions of paragraphs (4), (5), and (6) shall not apply to offerors or bidders who are small business concerns.

"(8) The failure of any contractor or subcontractor to comply in good faith with--,

"(A) the clause contained in paragraph (3) of this

subsection,

or

"(B) any plan required of such contractor pursuant to the authority of this subsection to be included in its

contract or

subcontract,

shall be a material breach of such contract or subcontract.

"(9) Nothing contained in this subsection shall be construed to supersede the requirements of Defense Manpower Policy Number 4 A (32 A CFR Chap. 1) or any successor policy.

"(10) In the case of contracts within the provisions of paragraphs (4), (5), and (6), the Administration is authorized to--,

"(A) assist Federal agencies and businesses in complying with their responsibilities under the provisions of this subsection, including the formulation of subcontracting plans pursuant to paragraph (4);

"(B) review any solicitation for any contract to be let pursuant to paragraphs (4) and (5) to determine the maximum practicable opportunity for small business concerns and small business concerns owned and controlled by socially and economically disadvantaged individuals to participate as subcontractors in the performance of any contract resulting from any solicitation, and to submit its findings, which shall be advisory in nature, to the appropriate Federal agency; and

"(C) evaluate compliance with subcontracting plans, either on a contract-by-contract basis, or in the case contractors having multiple contracts, on an aggregate basis.

"(11) At the conclusion of each fiscal year, the Administration shall submit to the Senate Select Committee on Small Business and the Committee on Small Business of the House of Representatives a report on subcontracting plans found acceptable by any Federal agency which the Administration determines do not contain maximum practicable opportunities for small business concerns and small business concerns owned and controlled by socially and economically disadvantaged individuals to participate in the performance of contracts described in this subsection.".

CHAPTER 3

Sec. 221. Section 15 of the Small Business Act // 15 USC 644. // is amended by adding at the end of subsection (f) the following new subsections:

"(g) The head of each Federal agency shall, after consultation with the Administration, establish goals for the participation by small business concerns, and by small business concerns owned and controlled by socially and economically disadvantaged individuals, in procurement contracts of such agency having values of $10,000 or more. Goals established under this subsection shall be jointly established by the Administration and the head of each Federal agency and shall realistically reflect the potential of small business concerns and small business concerns owned and controlled by socially and economically disadvantaged individuals to perform such contracts and to perform subcontracts under such contracts. Whenever the Administration and the head of any Federal agency fail to agree on established goals, the disagreement shall be submitted to the Administrator of the Office of Federal Procurement Policy for final determination.

"(h) At the conclusion of each fiscal year, the head of each Federal agency shall report to the Administration on the extent of participation by small business concerns and small business concerns owned and controlled by socially and economically disadvantaged individuals in procurement contracts of such agency. Such reports shall contain appropriate justifications for failure to meet the goals established under subsection (g) of this section. The Administration shall submit to the Select Committee on Small Business of the Senate and the Committee on Small Business of the House of Representatives information obtained from such reports, together with appropriate comments.

"(i) Nothing in this Act or any other provision of law precludes exclusive small business set-asides for procurements of architectural and engineering services, research, development, test and evaluation, and each Federal agency is authorized to develop such set-asides to further the interests of small business in those areas.

"(j) Each contract for the procurement of goods and services which has an anticipated value of less than $10,000 and which is subject to small purchase procedures shall be reserved exclusively for small business concerns unless the contracting officer is unable to obtain offers from two or more small business concerns that are competitive with market prices and in terms of quality and delivery of the goods or services being purchased. In utilizing small purchase procedures, contracting officers shall, wherever circumstances permit, choose a method of payment which minimizes paperwork and facilitates prompt payment to contrators.

"(k) There is hereby established in each Federal agency having procurement powers an office to be known as the ' Office of Small and Disadvantaged Business Utilization'. The management of each such office shall be vested in an officer or employee of such agency who shall--,

"(1) be known as the ' Director of Small and Disadvantaged Business Utilization' for such agency,

"(2) be appointed by the head of such agency,

"(3) be responsible only to, and report directly to, the head of such agency or to his deputy,

"(4) be responsible for the implementation and execution of the functions and duties under sections 8 and 15 of this Act

// 15 USC 637, 644. //

which relate to such agency,

"(5) have supervisory authority over personnel of such agency to theextent that the functions and duties of such personnel relate to functions and duties under sections 8 and 15 of this Act,

"(6) assign a small business technical adviser to each office to which the Administration has assigned a procurement center representative--,

"(A) who shall be a full-time employee of the procuring activity and shall be well qualified, technically

trained and

familiar with the supplies or services purchased at the

activity,

and

"(B) whose principal duty shall be to assist the

Administration

procurement center representative in his duties and

functions relating to section 8 and 15 of this Act, and

"(7) cooperate, and consult on a regular basis, with the Administration with respect to carrying out the functions and duties described in paragraph (4) of this subsection.

" This subsection shall not apply to the Administration.".

Sec. 222. The Administrator of the Office of Federal Procurement Policy is authorized and directed, pursuant to the authority conferred by Public Law 93 - 400 // 41 USC 405a. // and subject to the procedures set forth in such Public Law, to promulgate a single, simplified, uniform Federal procurement regulation and to establish procedures for insuring compliance with such provisions by all Federal agencies. In formulating such regulations and procedures the Administrator of the Office of Federal Procurement Policy shall, in consultation with the Small Business Administration, conduct analyses of the impact on small business concerns resulting from revised procurement regulations, and incorporate into revised procurement regulations simplified bidding, contract performance, and contract administration procedures for small business concerns.

Sec. 223. // 15 USC 637b. // (a) For any contract to be let by any Federal agency, such agency shall provide to any small business concern upon its request--,

(1) a copy of bid sets and specifications with respect to such contract;

(2) the name and telephone number of an employee of such agency to answer questions with respect to such contract; and

(3) adequate citations to each major Federal law or agency rule with which such business concern must comply in performing such contract.

(b) Subsection (a) shall not apply to any contract or subcontract under such contract which--,

(1) will be performed entirely outside any State, territory, or possession of the United States, the District of Columbia,or the Commonwealth of Puerto Rico;or

(2) is for services which are personal in nature.

Sec. 224. (a) For purposes of this Act--, // 15 USC 637c. //

(1) the term " Administrator" means the Administrator of the Small Business Administration;

(2) the term " Federal agency" has the meaning given the term "agency" by section 551 (1) of title 5, United States Code, but does not include the United States Postal Service or the General Accounting Office; and

(3) the term " Government procurement contract" means any contract for the procurement of any goods or services by any Federal agency.

(b) Section 3 of the Small Business Act // 15 USC 632. // is amended by inserting "(a)" after " Sec. 3." and by adding at the end thereof the following new subsection:

"(b) For purposes of this Act, any reference to an agency or department of the United States, and the term ' Federal agency', shall have the meaning given the term 'agency' by section 551 (1) of title 5, United States Code, but does not include the United States Postal Service or the General Accounting Office.".

CHAPTER 4

Sec. 231. Section 7 (a) of the Small Business Act // 15 USC 636. // is amended by inserting after the phrase " The Administration is empowered to make loans to enable small-business concerns" the phrase ", or small-business concerns 100 percent owned and controlled by an Indian tribe as defined in section 4(a) of the Indian Self-Determination and Education Assistance Act,". // 25 USC 450b. //

Sec. 232. Sectin 15 (f) of the Small Business Act // 15 USC 644. // is amended by striking out " September 30, 1979" and inserting in lieu thereof " September 30, 1980".

Sec. 233. Section 15 of the Small Business Act is amended by adding at the end thereof the following new subsection:

"(l) (1) The President shall, not later than October 1, 1979, transmit to the Select Committee on Small Business and the Committee on Armed Services of the Senate and to the Committee on Small Business and the Committee on Armed Services of the House of Representatives a report on the labor surplus area procurement program under this section and the manpower policy described in subparagraph (D). Such report, together with recommendations, shall include, but not be limited to--,

"(A) an analysis of the effectiveness of such labor surplus area procurement program, including its effectiveness in creating jobs in the areas of high unemployment and the method by which labor markets are classified and designated as labor surplus areas;

"(B) its potential benefits to Federal, State and local governments, including tax benefits, reductions in Federal payments to labor surplus areas, and reductions in State unemployment costs where such information is available;

"(C) its potential costs, including its impact on the efficient utilization of Federal resources, its effect on the local economy of non-labor surplus areas, its impact on small business concerns not in labor surplus areas to the extent such information is available, and its impact on contract costs to the Federal Govenment; and

"(D) with respect to the implementation by the Department of Defense of Defense Manpower Policy Number 4 A (32 A CFR Chapter 1) or any successor policy, in addition to the matters required by subparagraphs (A), (B), and (C), information concerning the impact on such matters of the expenditure of any funds which were available for procurement and which were not obligated for expenditure on September 30, 1977.

Approved October 24, 1978.

LEGISLATIVE HISTORY:

HOUSE REPORTS: No. 95 - 949 (Comm. on Small Business) and No. 95 - 1714 (Comm. of Conference).

SENATE REPORTS: No. 95 - 1070 (Select Comm. on Small Business) and No. 95 - 1140 (Comm. on Governmental Affairs).

CONGRESSIONAL RECORD, Vol. 124 (1978):

Mar.20, considered and passed House.

Sept. 15, considered and passed Senate, amended.

Oct. 6, House agreed to conference report.

Oct. 10, Senate agreed to conference report.

PUBLIC LAW 95-506, 92 STAT. 1756

95th CONGRESS, H.R. 13767 OCTOBER 24, 1978
AN ACT To amend the Federal Property and Administrative

Services Act of 1949 to

permit the recovery of replacement cost of motor

vehicles and other related

equipment and supplies.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 211(d) of the Federal Property and Administrative Services Act of 1949 (40 U.S.C 491(d) // 40 USC 756. // is amended to read as follows:

"(d)(1) The General Supply Fund provided for in section 109 shall be available for use by or under the direction and control of the Administrator for paying all elements of cost (including the purchase or rental price of motor vehicles and other related equipment and supplies) incident to the establishment,maintenance, and operation (including servicing and storage) of motor vehicle pools or systems for the transportation of property or passengers, and to the furnishing of such motor vehicles and equipment and related services pursuant to subsection (b).

"(2) Payments by requisitioning agencies so served shall be at prices fixed by the Administrator at levels which will recover, so far as practicable, all such elements of cost, and may, in the Administrator's discretion, include increments for the estimated replacement cost of such motor vehicles, equipment, and supplies. Such increments may, notwithstanding section 109(e) of this Act, be retained as part of the capital of the General Supply Fund, but shall be available only for replacement of such motor vehicles, equipment, and supplies. The purchase price, plus such increments for the estimated replacement cost, of such motor vehicles and equipment shall be recovered only through charges for the cost of amortization. Such costs shall be determined in accordance with the accrual accounting method; and financial reports shall be prepared on the basis of such accounting.".

Approved October 24, 1978.

LEGISLATIVE HISTORY:

HOUSE REPORT No. 95 - 1529 (Comm. on Government Operations).

CONGRESSIONAL RECORD, Vol. 124 (1978):

Sept. 25, considered and passed House.

Oct. 10, considered and passed Senate.

PUBLIC LAW 95-505, 92 stat. 1755

95th CONGRESS, H.R. 11658 OCTOBER 24, 1978
AN ACT To amend title XI of the Merchant Marine Act, 1936,

to permit the guarantee

of obligations for financing Great Lakes vessels in

an amount not exceeding

87 one-half per centum of the actual or depreciated

actual cost of each vessel.

Be it enacted by the Senate and House of Representatives of the United States of Amercia in Congress assembled, That section 509 of the Merchant Marine Act, 1936, as amended (46 U.S.C. 1159), is amended by striking the words "fourteen knots" in the fourth sentence, and inserting in lieu thereof the words "ten knots".

Approved October 24, 1978.

LEGISLATIVE HISTORY:

HOUSE REPORT No. 95 - 1528 (Comm.on Merchant Marine and Fisheries).

CONGRESSIONAL RECORD, Vol. 124 (1978):

Oct. 3, considered and passed House.

Oct. 6, considered and passed Senate.

PUBLIC LAW 95-504, 92 STAT. 1705, AIRLINE DEREGULATION ACT OF 1978

95th CONGRESS, S. 2493 OCTOBER 24, 1978
AN ACT To amend the Federal Aviation Act of 1958, to

encourage, develop, and attain

an air transportation system which relies on

competitive market forces to

determine the quality, variety, and price of air

services, and for other

purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SHORT TITLE

Section 1. This Act // 49 USC 1301 // may be cited as the " Airline Deregulation Act of 1978".

DEFINITIONS

Sec. 2. (a) Section 101 of the Federal Aviation Act of 1958 (49 U.S. C. 1301) is amended--,

(1) by inserting after paragraph (13) the following new paragraphs:

"(14) ' Charter air carrier' means an air carrier holding a certificate of public convenience and necessity authorizing it to engage in charter air transportation.

"(15) ' Charter air transportation' means charter trips, including inclusive tour charter trips, in air transportation, rendered pursuant to authority conferred under this Act under regulations prescribed by the Board.";

(2) by inserting after paragraph (32) the following new paragraph:

"(33) ' Predatory' means any practice which would constitute a violation of the antitrust laws as set forth in the first section of the Clayton Act (15 U.S.C. 12).";

(3) by inserting after paragraph (35) the following new paragraph:

"(36) ' State agency' means that department, agency, officer, or other entity of a State government which has been designated according to State law as--,

"(A) the recipient of any notice required under title IV of this Act to be given to a State agency; or

"(B) the representative of the State in any matter about which the Board is required, under such title IV, to consult with or consider the views of a State agency."; and

(4) by striking out paragraphs (36) and (37).

(b) Section 101 of such Act is amended by renumbering the paragraphs of such section, including all references thereto, as paragraphs (1) through (41), respectively.

DECLARATION OF POLICY

Sec. 3. (a) Section 102(a) of the Federal Aviation Act of 1958 (49 U.S.C. 1302(a)) is amended to read as follows:

" FACTORS FOR INTERSTATE AND OVERSEAS AIR

TRANSPORTATION

" Sec. 102. (a) In the exercise and performance of its powers and duties under this Act with respect to interstate and overseas air transportation, the Board shall consider the following, among other things, as being in the public interest, and in accordance with the public convenience and necessity:

"(1) The assignment and maintenance of safety as the highest priority in air commerce, and prior to the authorization of new air transportation services, full evaluation of the recommendations of the Secretary of Transportation on the safety implications of such new services and full evaluation of any report or recommendation submitted under section 107 of this Act.

"(2) The prevention of any deterioration in established safety procedures, recognizing the clear intent, encouragement, and dedication of the Congress to the furtherance of the highest degree of safety in air transportation and air commerce, and the maintenance of the safety vigilance that has evolved within air transportation and air commerce and has come to be expected by the traveling and shipping public.

"(3) The availability of a variety of adequate, economic, efficient, and low-price services by air carriers without unjust discriminations, undue preferences or advantages, or unfair or deceptive practices, the need to improve relations among, and coordinate transportation by, air carriers, and the need to encourage fair wages and equitable working conditions.

"(4) The placement of maximum reliance on competitive market forces and on actual and potential competition (A) to provide the needed air transportation system, and (B) to encourage efficient and well-managed carriers to earn adequate profits and to attract capital.

"(5) The development and maintenance of a sound regulatory environment which is responsive to the needs of the public and in which decisions are reached promptly in order to facilitate adaption of the air transportation system to the present and future needs of the domestic and foreign commerce of the United States, the Postal Service, and the national defense.

"(6) The encouragement of air service at major urban areas through secondary or satellite airports, where consistent with regional airport plans of regional and local authorities, and when such encouragement is endorsed by appropriate State entities encouraging such service by air carriers whose sole responsibility in any specific market is to provide service exclusively at the secondary or satellite airport, and fostering an environment which reasonably enables such carriers to establish themselves and to develop their secondary or satellite airport services.

"(7) The prevention of unfair, deceptive, predatory, or anticompetitive practices in air transportation, and the avoidance of--,

"(A) unreasonable industry concentration, excessive market domination, and monopoly power; and "(B) other conditions; that would tend to allow one or more

air carriers

unreasonably to

increase prices, reduce services, or exclude

competition in air

transportation.

"(8) The maintenance of a comprehensive and convenient system of continuous scheduled airline service for small communities and for isolated areas, with direct Federal assistance where appropriate.

"(9) The encouragement, development, and maintenance of an air transportation system relying on actual and potential competition to provide efficiency, innovation, and low prices, and to determine the variety, quality, and price of air transportation services.

"(10) The encouragement of entry into air transportation markets by new air carriers, the encouragement of entry into additional air transportation markets by existing air carriers, and the continued strengthening of small air carriers so as to assure a more effective, competitive airline industry.".

(b) Section 102 of such Act // 49 USC 1302 // is amended by adding at the end thereof the following new subsection:

" FACTORS FOR FOREIGN AIR TRANSPORTATION

"(c) In the exercise and performance of its powers and duties under the Act with respect to foreign air transportation, the Board shall consider the following, among other things, as being in the public interest, an in accordance with the public convenience and necessity:

"(1) The encouragement and development of an air transportation system properly adapted to the present and future needs of the foreign and domestic commerce of the United States, of the Postal Service, and of the national defense.

"(2) The regulation of air transportation in such manner as to recognize and preserve the inherent advantages of, assure the highest degree of safety in, and foster sound economic conditions in, such transportation, and to improve the relations between and coordinate transportation by air carriers.

"(3) The promotion of adequate, economical, and efficient service by air carriers at reasonable charges, without unjust discriminations, undue preferences or advantages, or unfair or destructive competitive practices.

"(4) Competition to the extent necessary to assure the sound development of an air transportation system properly adapted to the needs of the foreign and domestic commerce of the United States, of the Postal Service, and of the national defense.

"(5) The promotion of safety in air commerce.

"(6) The promotion, encouragement, and development of civil aeronautics.".

(c) That portion of the table of contents contained in the first section of such Act which appears under the side heading

" Sec. 102. Declaration of Policy: The Board." is amended by striking out

"(a) General factors for consideration.

"(b) Factors for all-cargo air service."

and inserting in lieu thereof

"(a) Factors for interstate and overseas air transportation.

"(b) Factors for all-cargo air service.

"(c) Factors for foreign air transportation.".

FEDERAL PREEMPTION

Sec. 4. (a) Title I of the Federal Aviation Act of 1958 (49 U.S.C. 1301 et seq.) is amended by adding at the end thereof the following new section:

" FEDERAL PREEMPTION " PREEMPTION

" Sec. 105. (a)(1) Except as provided in paragraph (2) of this subsection, section, // 49 USC 1305. // no State or political subdivision thereof and no interstate agency or other political agency of two or more States shall enact or enforce any law, rule, regulation, standard, or other provision having the force and effect of law relating to rates, routes, or services of any air carrier having authority under title IV of this Act // 49 USC 1371. // to provide interstate air transportation.

"(2) Except with respect to air transportation (other than charter air transportation) provided pursuant to a certificate issued by the Board under section 401 of this Act, // 49 USC 1371 // the provisions of paragraph (1) of this subsection shall not apply to any transportation by air of persons, property, or mail conducted wholly within the State of Alaska.

" PROPRIETARY POWERS AND RIGHTS

"(b)(1) Nothing in subsection (a) of this section shall be construed to limit the authority of any State or political subdivision thereof or any interstate agency or other political agency of two or more States as the owner or operator of an airport served by any air carrier certificated by the Board to exercise its proprietary powers and rights.

"(2) Any aircraft operated between points in the same State (other than the State of Hawaii) which in the course of such operation crosses a boundary between two States, or between the United States and any other country, or between a State and the beginning of the territorial waters of the United States, shall not, by reason of crossing such boundary, be considered to be operating in interstate or overseas air transportation.

" EXISTING STATE AUTHORITY

"(c) When any intrastate air carrier which on August 1, 1977, was operating primarily in intrastate air transportation regulated by a State receives the authority to provide interstate air transportation, any authority received from such State shall be considered to be part of its authority to provide air transportation received from the Board under title IV of this Act, until modified, suspended, amended, or terminated as provided under such title.

" DEFINITION

"(d) For purposes of this section, the term ' State' means any State, the District of Columbia, the Commonwealth of Puerto Rico, the Commonwealth of the Northern Mariana Islands, Guam, the Virgin Islands, and any territory or possession of the United States.".

(b) That portion of the table of contents contained in the first section of such Act which appears under the center heading

" TITLE I-- GENERAL PROVISIONS"

is amended by adding at the end thereof

" Sec. 105. Federal preemption.

"(a) Preemption.

"(b) Proprietary powers and rights.

"(c) Existing State authority.

"(d) Definition.".

REPORT ON SUBSIDY COST-SHARING, STUDY OF LEVEL OF

AIR SAFETY,

AND REPORT ON AIR CARRIER MARKETING OF TOURS

Sec. 5. (a) Title I of the Federal Aviation Act of 1958 (49 U.S.C. 1301 et seq.) is further amended by adding at the end thereof the following new sections:

" REPORT ON SUBSIDY COST- SHARING

" Sec. 106. // 49 USC 1306 // Not later than January 1, 1980, the Board and the Secretary of Transportation, shall, separately or jointly, submit a comprehensive report to the Congress on the feasibility and appropriateness of devising formulas by which States and their political subdivisions could share part of the costs being incurred by the United States under sections 406 and 419 of this Act // 49 USC 1376. // Such report shall include any recommendations of the Board and the Secretary for the implementation of such cost-sharing formulas.

" SAFETY STUDY " POLICY

" Sec. 107. // 49 USC 1307 // (a) The Congress intends that the implementation of the Airline Deregulation Act of 1978 result in no diminution of the high standard of safety in air transportation attained in the United States at the time of the enactment of such Act.

" REPORT

"(b) Not later than January 31, 1980, and each January 31 thereafter, the Secretary of Transportation shall prepare and submit to the Congress and the Board a comprehensive annual report on the extent to which the implementation of the Airline Deregulation Act of 1978 has affected, during the preceding calendar year, or will affect, in the succeeding calendar year, the level of air safety. Each such report shall, at a minimum, contain an analysis of each of the following:

"(1) All relevant data on accidents and incidents occurring during the calendar year covered by such report in air transportation and on violations of safety regulations issued by the Secretary of Transportation occurring during such calendar year.

"(2) Current and anticipated personnel requirements of the Administrator with respect to enforcement of air safety regulations.

"(3) Effects on current levels of air safety of changes or proposals for changes in air carrier operating practices and procedures which occurred during the calendar year covered by such report.

"(4) The adequacy of air safety regulations taking into consideration changes in air carrier operating practices and procedures which occurred during the calendar year covered by such report.

Based on such report, the Secretary shall take those steps necessary to ensure that the high standard of safety in air transportation referred to in subsection (a) of this section is maintained in all aspects of air transportation in the United States.

" RECOMMENDATIONS

"(c) Not later than January 31, 1980, and each January 31 thereafter, the Secretary of Transportation shall submit to the Congress and the Board recommendations with respect to the level of surveillance necessary to enforce air safety regulations and the level of staffing necessary to carry out such surveillance. The Secretary of Transportation's recommendations shall include proposals for any legislation needed to implement such recommendations.

" REGULATIONS AND INSPECTION PROCEDURES

"(d) Not later than July 1, 1979, the Secretary of Transportation shall complete a thorough review, and submit a report thereon to the appropriate authorizing committees of the Congress and to the Administrator, of the safety regulations and inspection procedures applicable to each class of air carriers subject to the provisions of title IV of this Act, // 49 USC 1371. // in order to ensure that all classes of air carriers are providing the highest possible level of safe, reliable air transportation to all the communities served by those air carriers. Based on such review, the Administrator shall promulgate such safety regulations and establish such inspection procedures as the Administrator deems necessary to maintain the highest standard of safe, reliable air transportation in the United States.

" REPORT ON AIR CARRIER MARKETING OF TOURS

" Sec. 108. // 49 USC 1308 // Not later than May 1, 1979, the Board shall prepare and submit a report to the Congress which sets forth the recommendations of the Board on whether this Act and regulations of the Board should be amended to permit air carriers to sell tours directly to the public and to acquire control of persons authorized to sell tours to the public. The report shall evaluate the effects on the following groups of allowing air carriers to sell tours:

"(1) The traveling public.

"(2) The independent tour operator industry.

"(3) The travel agent industry.

"(4) The different classes of air carriers.".

(b) That portion of the table of contents contained in the first section of such Act which appears under the center heading

" TITLE I-- GENERAL PROVISIONS"

is amended by adding at the end thereof

" Sec. 106. Report on subsidy cost-sharing.

" Sec. 107. Safety study. "(a) Policy. "(b) Report. "(c) Recommendations. "(d) Regulations and inspection procedure.

" Sec. 108. Report on air carrier marketing of tours.".

APPLICATION FOR CERTIFICATE

Sec. 6. Section 401(b) of the Federal Aviation Act of 1958 (49 U.S. C. 1371(b)) is amended--,

(1) by striking out "and shall be so verified"; and

(2) by inserting", and upon any community affected" immediately before the period.

ROUTE APPLICATIONS

Sec. 7. (a) Section 401(c) of the Federal Aviation Act of 1958 (49 U.S.C. 1371(c)) is amended to read as follows:

" ROUTE APPLICATIONS

"(c)(1) Upon the filing of any application pursuant to subsection (b) of this section, the Board shall give due notice thereof to the public by posting a notice of such application in the office of the secretary of the Board and to such other persons as the Board may by regulation determine. The Board shall--,

"(A) set such application for a public hearing;

"(B) begin to make a determination with respect to such application under the simplified procedures established by the Board in regulations pursuant to subsection (p); or

"(C) dismiss such application on the merits; not later than ninety days after the date the application is filed with the Board. Any interested person may file with the Board a protest or memorandum of opposition to or in support of the issuance of the certificate requested by such application. Any order of dismissal of an application issued by the Board without setting such application for a hearing or beginning to make a determination with respect to such application under such simplified procedures, shall be deemed a final order subject to judicial review in accordance with the provisions of section 1006 of this Act.

// 49 USC 1486. //

"(2) If the Board determines that any application should be set for a public hearing under clause (A) of the second sentence of paragraph (1) of this subsection, an initial or recommended decision shall be issued not later than one hundred and fifty days after the date of such determination by the Board. Not later than ninety days after the initial or recommended decision is issued, the Board shall make its final order with respect to such application. If the Board does not act within such ninety-day period--,

"(A) in the case of an application for a certificate to engage in interstate or overseas air transportation, the initial or recommended decision shall become the final decision of the Board and shall be subject to judicial review in accordance with the provisions of section 1006 of this Act; and

"(B) in the case of an application for a certificate to engage in foreign air transportation, the initial or recommended decision shall be transmitted to the President pursuant to section 801 of this Act.

// 49 USC 1461 //

"(3) Not later than the one-hundred-eightieth day after the Board begins to make a determination with respect to an application under the simplified procedures established by the Board in regulations pursuant to subsection (p) of this section, the Board shall issue its final order with respect to such application.

"(4) If an applicant fails to meet the procedural schedule adopted by the Board in a particular proceeding, the applicable period prescribed in paragraph (2) or (3) of this subsection may be extended by the Board for a period equal to the period of delay caused by the applicant. In addition to any extension authorized by the preceding sentence, in extraordinary circumstances, the Board may, by order delay an initial or recommended decision for not to exceed thirty days beyond the final date on which the decision is required to be made.".

(b) The amendments made by subsection (a) of this // 49 USC 1371 // shall apply to any application filed under section 401(b) of the Federal Aviation Act of 1958 // 49 USC 1371 // on or after the one-hundred-eightieth day after the date of enactment of this Act.

(c) That portion of the table of contents contained in the first section of such Act which appears under the side heading

" Sec. 401. Certificate of public convenience and necessity." is amended by striking out

"(c) Notice of application."

and inserting in lieu thereof

"(c) Route applications."

ISSUANCE OF CERTIFICATE

Sec. 8. Paragraphs (1), (2), and (3) of section 401(d) of the Federal Aviation Act of 1958 (49 U.S.C. 1371(d)(1)-(3) are amended to read as follows:

"(d)(1) The Board shall issue a certificate authorizing the whole or any part of the transportation covered by the application, if it finds that the applicant is fit, willing, and able to perform such transportation properly and to conform to the provisions of this Act and the rules, regulations, and requirements of the Board hereunder, and that such transportation--,

"(A) in the case of interstate or overseas air transportation, is consistent with the public convenience and necessity; and

"(B) in the case of foreign air transportation, is required by the public convenience and necessity;

otherwise such application shall be denied.

"(2) In the case of an application for a certificate to engage in temporary air transportation, the Board may issue a certificate authorizing the whole or any part thereof for such limited periods--,

"(A) in the case of an application for interstate or overseas air transportation, as is consistent with the public convenience and necessity; and

"(B) in the case of an application for foreign air transportation, as may be required by the public convenience and necessity;

if it finds that the applicant is fit, willing, and able properly to perform such transportation and to conform to the provisions of this Act and thee rules, regulations, and requirements of the Board hereunder.

"(3) In the case of an application for a certificate to engage in charter air transportation, the Board may issue a certificate to any applicant, not holding a certificate under paragraph (1) or (2) of this subsection on January 1, 1977, authorizing interstate air transportation of person, which authorizes the whole or any part thereof--,

"(A) in the case of an application for interstate or overseas air transportation, for such periods, as is consistent with the public convenience and necessity; and

"(B) in the case of an application for foreign air transportation, for such periods, as may be required by the public convenience and necessity;

if it finds that the applicant is fit, willing, and able properly to perform the transportation covered by the application and to conform to the provisions of this Act and the rules, regulations, and requirements of the Board hereunder.".

THROUGH SERVICE AND JOINT FARES

Sec. 9. Paragraph (4) of section 401(d) of the Federal Aviation Act of 1958 (49 U.S.C. 1371(d)(4) is amended to read as follows: "(4)(A) Notwithstanding any other provision of this Act, any citizen of the United States who undertakes, within any State, the carriage of persons or property as a common carrier for compensation or hire with aircraft capable of carrying thirty or more persons pursuant to authority for such carriage within such State granted by the appropriate State agency is authorized--,

"(i) to establish services for persons and property which includes transportaion by such citizen over its routes in such State and transportation by an air carrier or a foreign air carrier in air transportation; and

"(ii) subject to the requirements of section 412 of this title,

// 49 USC 1382. //

to enter into an agreement with any air carrier or foreign air carrier for the establishment of joint fares, rates, or services for such through services.

"(B) The joint fares or rates established under clause (ii) of subparagraph (A) of this paragraph shall be the lowest of--,

"(i) the sum of the applicable fare or rate for service in the State approved by the appropriate State agency, and the applicable fare or rate for that part of the through service provided by the air carrier or foreign air carrier;

"(ii) a joint fare or rate established and filed in accordance with section 403 of this Act;

// 49 USC 1373. //

or

"(iii) a joint fare or rate established by the Board in accordance with section 1002 of this Act.".

// 49 USC 1482. //

UNUSED AUTHORITY

Sec. 10. (a) Section 401(d) of the Federal Aviation Act of 1958 (49 U.S.C. 1371(d)) is amended by adding at the end thereof the following new paragraph:

"(5)(A) Except as provided in subparagraphs (B) and (G)(i) of this paragraph, if an air carrier is authorized by its certificate to provide round trip service nonstop each way between any two points in the forty-eight contiguous States or between any two points in overseas air transportation and if such air carrier fails to provide such service pursuant to published flight schedules at a minimum of five round trips per week for at least thirteen weeks during any twenty-six-week period (other than such a period during which service was interrupted by a labor dispute which lasted more than six weeks) the last day of which ends on or after the date of enactment of this paragraph and if such service, at a minimum of five round trips per week, has been provided between such points for at least thirteen weeks during such twenty-six-week period, pursuant to published flight schedules, by no more than one other air carrier, then the Board shall issue a certificate to the first applicant who, within thirty days after the last day of such twenty-six-week period, submits an application which certifies that its aircraft meet all requirements established by the Secretary of Transportation for the carriage by aircraft of persons or property as a common carrier for compensation or hire or the carriage of mail by aircraft in commerce and that it is able to conform to the rules, regulations, and reequirements of the Board promulgated pursuant to this Act.

"(B) Except as provided in subparagraph (G)(ii) of this paragraph, if an air carrier is authorized to provide seasonal round trip service nonstop each way between any two points in the forty-eight contiguous States in interstate air transportation or between any two points in overseas air transportation and if such air carrier fails to provide such service pursuant to published flight schedules at a minimum of five round trips per week during half of the weeks during such season (other than such a season during which service was interrupted by a labor dispute which lasted more than 25 per centum of such season) the last day of which ends on or after the date of enactment of this paragraph and if such service, at a minimum of five round trips per week, has been provided between such points for at least half of the weeks during such season, pursuant to published flight schedules, by no more than one other air carrier, then the Board shall issue a certificate to the first applicant who, within thirty days after the last day of such season, submits an application which certifies that its aircraft meet all requirements established by the Secretary of Transportation for the carriage by aircraft of persons or property as a common carrier for compensation or hire or the carriage of mail by aircraft in commerce and that it is able to conform to the rules, regulations, and requirements of the Board promulgated pursuant to this Act.

"(C) With respect to any application which is submitted pursuant to subparagraph (A) or (B) of this paragraph, except as provided in subparagraph (G), the Board shall issue a final order granting such certificate within fifteen days of the date of such application.

"(D) Except as provided in subparagraphs (E) and (G)(i) of this paragraph, if an air carrier is authorized by its certificate to provide round trip service nonstop each way between any two points in the forty-eight contiguous States or between any two points in overseas air transportation and if such air carrier fails to provide such service pursuant to published flight schedules at a minimum of five round trips per week for at least thirteen weeks during any twenty-six-week period (other than such a period during which service was interrupted by a labor dispute which lasted more than six weeks) the last day of which ends on or after the date of enactment of this paragraph and if such service, at a minimum of five round trips per week, has been provided between such points for at least thirteen weeks during such twenty-six- week period, pursuant to published flight schedules, by two or more other air carriers, then the Board, subject to subparagraph (F) of this paragraph, shall issue a certificate to the first applicant who, within thirty days after the last day of such twenty-six-week period, submits an application which certifies that its aircraft meet all requirements established by the Secretary of Transportation for the carriage by aircraft of persons or property as a common carrier for compensation or hire or the carriage of mail by aircraft in commerce and that it is able to conform to the rules, regulations, and requirements of the Board promulgated pursuant to this Act.

"(E) Except as provided in subparagraph (G)(ii) of this paragraph, if an air carrier is authorized to provide seasonal round trip service nonstop each way between any two points in the forty-eight contiguous States in interstate air transportation or between any two points in overseas air transportation and if such air carrier fails to provide such service pursuant to published flight schedules at a minimum of five round trips per week during half of the weeks during such season (other than such a season during which service was interrupted by a labor dispute which lasted more than 25 per centum of such season) the last day of which ends on or after the date of enactment of this paragraph and if such service, at a minimum of five round trips per week, has been provided between such points for at least half of the weeks during such season, pursuant to published flight schedules, by two or more other air carriers, then the Board, subject to subparagraph (F) of this paragraph, shall issue a certificate to the first applicant who, within thirty days after the last day of such season, submits an application which certifies that its aircraft meet all requirements established by the Secretary of Transportation for the carriage by aircraft of persons or property as a common carrier for compensation or hire or the carriage of mail by aircraft in commerce and that it is able to conform to the rules, regulations, and requirements of the Board promulgated pursuant to this Act.

"(F) (i) Except as provided in subparagraph (G) of this paragraph, with respect to any application which is submitted pursuant to subparagraph (D) or (E) of this paragraph, the Board shall issue a final order granting such certificate within sixty days of the date of such application, unless the Board finds that the issuance of such certificate is inconsistent with the public convenience and necessity. Prior to issuing such final order, the Board shall afford adequate notice and opportunity for interested persons to file appropriate written evidence and argument, but the Board need not hold oral evidentiary hearings.

"(ii) For purposes of clause (i) of this subparagraph, there shall be a rebuttable presumption that any transportation covered by an application for a certificate submitted pursuant to subparagraph (D) or (E) of this paragraph is consistent with the public convenience and necessity.

"(G) (i) If, after the failure of any air carrier to provide the minimum level of service between any pair of points for the period of time specified in subparagraph (A) or (D) of this paragraph and before the Board receives an application from any applicant for a certificate under such subparagraph to provide air transportation between such points, the Board receives notice from such air carrier that it intends to commence service within thirty days of such notice and to provide a minimum of five round trips per week for thirteen consecutive weeks between such points and the Board has not previously received notice from such air carrier with respect to such points, the Board shall not approve such application for a certificate to provide service between such points during such thirteen-week period based upon such failure, unless such air carrier fails to provide such service during such thirteen-week period.

"(ii) If, after the failure of any air carrier to provide the minimum level of service between any pair of points for the period of time specified in subparagraph (B) or (E) of this paragraph and before the Boardd receives an application from any applicant for a certificate under such subparagraph to provide air transportation between such points, the Board receives notice from such air carrier that it intends to commence service within fifteen days of the first day of the next season and to provide a minimum of five round trips per week for the first half of such season between such points and the Board has not previously received notice from such air carrier with respect to such points, the Board shall not approve such application for a certificate to provide service between such points during the first half of such period based upon such failure, unless such air carrier fails to provide such service during the first half of such period.

"(H) (i) Whenever the Board issues a certificate pursuant to subparagraph (A) or (D) of this paragraph, the air carrier receiving such certificate shall commence service pursuant to such certificate within forty-five days of such issuance. If such air carrier fails to commence service within such period, the Board shall revoke such certificate.

"(ii) Whenever the Board issues a certificate pursuant to subparagraph (B) or (E) of this paragraph to provide seasonal service, the air carrier receiving such certificate shall commence service pursuant to such certificate within fifteen days after the beginning of the first such season which begins on or after the date of such issuance. If such air carrier fails to commence service within such period, the Board shall revoke such certificate.

"(I) Not more than one certificate shall be issued under this paragraph for round trip nonstop service between two points in interstate air transportation based upon the failure of the same air carrier to provide such service between such points.

"(J) Whenever the Board issues a certificate pursuant to subparagraph (A) of this paragraph based upon the failure of any air carrier to provide the round trip service described in such subparagraph, the Board shall suspend the authority of such air carrier to provide such service, and suspend the authority of any other air carrier which failed to provide such service during the same twenty- six-week period for twenty-six weeks after the date of issuance of such certificate pursuant to subparagraph (A), or until such time within such twenty-six weeks as the air carrier to which a certificate is issued under such subparagraph fails to provide such service at a minimum of five round trips per week for at least thirteen weeks, whichever first occurs, except that the Board shall not suspend the authority of such air carriers under this subparagraph if the Board finds that such suspension is not necessary to encourage continued service between such points by the air carrier which received a certificate under subparagraph (A).".

(b) Section 401 (f) of such Act is amended by striking out "hereinafter provided" and inserting in lieu thereof "provided in this section".

FILL- UP RIGHTS

Sec. 11. Section 401(d) of the Federal Aviation Act of 1958 (49 U.S. C. 1371(d)) is further amended by adding at the end thereof the following new paragraph:

"(6) Any air carrier holding a valid certificate to engage in foreign air transportation is authorized, on any scheduled flight in foreign air transportation, to transport persons, property, and mail between points in the United States between which it is authorized to operate during such flight. The authority described in the preceding sentence shall be limited to one round-trip flight per day between any such pair of points, unless the Board authorizes more than one round-trip flight per day between any such pair of points.".

AUTOMATIC MARKET ENTRY PROGRAM

Sec. 12. Section 401(d) of the Federal Aviation Act of 1958 (49 U.S. C. 1371(d)) is further amended by adding at the end thereof the following new paragraph:

"(7) (A) After the first business day of each of the calendar years 1979, 1980, and 1981 and before the thirtieth day of such calendar year--,

"(i) any air carrier which (I) has operated during the preceding

calendar year in accordance with a certificate issued by the Board under this section which has been in force during such entire preceding calendar year and (II) has provided air transportation of persons during such calendar year; and

"(ii) any intrastate air carrier which has a valid certificate or

license issued by a State regulatory authority to engage in intrastate air transportation and which has operated more than one hundred million available seat-miles in intrastate air transportation in the preceding calendar year;

may apply to the Board for a certificate under this subparagraph to engage in nonstop service between any one pair of points in interstate or overseas air transportation (other than a pair of points either point of which is in the State of Hawaii) in additon to any pair of points authorized by any existing certificate or license held by such air carrier or intrastate air carrier, except that no air carrier may apply to engage in nonstop service between such pair of points if any air carrier has filed written notice to the Board pursuant to subparagraph (C) of this paragraph with respect to such pair of points. Not later than the sixtieth day after the date on which the Board receives an application from an applicant under this subparagraph, the Board shall issue a certificate to such applicant for the nonstop service specified in such application, unless within such sixty-day period the Board determines that the applicant is not fit, willing, and able to provide such nonstop service and to conform to the provisions of this Act and the rules, regulations, and requirements of the Board issued under this Act.

"(B) Not later than the one-hundred-twentieth day of calendar year 1979, 1980, or 1981, any air carrier which submitted an application to the Board in accordance with subparagraph (A) of this paragraph in such calendar year and--,

"(i) which did not receive a certificate to provide service between the pair of points set forth in the application because of a determination by the Board under such subparagraph (A); or

"(ii) which received a certificate to provide service between such pair of points, but was not the only air carrier to receive a

certificate under such subparagraph (A) during such calendar

year to provide nonstop service between such pair of points;

may reapply to the Board for a certificate to engage in nonstop service between any one pair of points in interstate or overseas air transportation (other than the pair of points specified in the first application submitted to the Board by such air carrier in such calendar year and other than a pair of points either point of which is in the State of Hawaii) in addition to any pair of points authorized by any existing certificate or license held by such air carrier or intrastate air carrier, except that no air carrier may apply to engage in nonstop service between such pair of points if any air carrier has filed written notice to the Board pursuant to subparagraph (C) of this paragraph with respect to such pair of points. Not later than the sixtieth day after the date on which the Board receives an application under this subparagraph, the Board pursuant to subparagraph (C) of this paragraph with nonstop service, unless within such sixty-day period the Board makes a determination with respect to the issuance of such certificate in accordance with the second sentence of subparagraph (A) of this paragraph. If the Board issues a certificate to an applicant under this subparagraph, it shall revoke any authority in any certificate which itt granted to such applicant in the same calendar year under subparagraph (A) of this paragraph.

"(C)(i) Subject to clause (ii) of this subparagraph, any air carrier which is authorized pursuant to paragraph (1) or (2) of this subsection to engage in nonstop service between any pair of points in interstate or overseas air transportation on the first business day of calender year 1979, 1980, or 1981 and which wants to preclude any other air carrier from obtaining authority under subparagraph (A) or (B) of this paragraph to engage in nonstop service between such pair of points during such calendar year may, on such day, file written notice to the Board which sets forth such pair of points. Upon receipt of any written notice under the preceding sentence, the Board shall make such notice available to the public.

"(ii) No air carrier may file a written notice under clause (i) of this subparagraph during any calendar year with respect to more than one pair of points in interstate or overseas air transportation.

"(D) (i) The Board shall, on an emergency basis, by rule, modify the program established by this paragraph, if the Board finds that--,

"(I) the operation of such program is causing substantial public harm to the national air transportation system, or a substantial reduction in air service to small and medium sized communities in any region of the country;

"(II) the modification proposed by the Board is required by the public convenience and necessity in order to alleviate such harm or reduction; and

"(III) such harm or reduction identified by the Board cannot be rectified by any reasonably available means other than the modification proposed by the Board.

Any emergency modification proposed by the Board under this subparagraph shall modify such program only to the minimum extent necessary to rectify the harm or reduction identified by the Board. Any emergency modification of such program may be limited to any pair of points.

"(ii) The findings of fact by the Board in any proceeding held pursuant to this subparagraph, if supported by substantial evidence, shall be conclusive. No objection to a modification of the program proposed by the Board under this subparagraph shall be considered by a court unless such objection shall have been submitted to the Board, of if it was not so submitted, unless there were reasonable grounds for failure to do so.

"(E) The Board shall conduct a study of the procedure for certification of air carriers and intrastate air carriers set forth in subparagraphs (A) and (B) of this paragraph to evaluate--,

"(i) whether such procedure is consistent with the criteria set forth in section 102 of this Act:

// 49 USC 1302. //

and

"(ii) the relative effectiveness of such procedure as compared with other procedures for certification set forth in this Act, including but not limited to, the procedures set forth in paragraphs (5) and (6) of this subsection and in subsection (p) of this section.

Not later than December 31, 1980, the Board shall complete such study and report the results of such study to the Congress.".

EXPERIMENTAL CERTIFICATES

Sec. 13. Section 401(d) of the Federal Aviation Act of 1958 (49 USC 1371(d)) is further amended by adding at the end thereof the following new paragraph:

"(8) The Board may grant an application under subsection (d)(1), (2) or (3) of this section (whether the application be for permanent or temporary authority) for only a temporary period of time whenever the Board determines that a test period is desirable in order to determine if projected services, efficiencies, methods, rates, fares, charges, or other projected results will in fact materialize and remain for a sustained period of time, or to assess the impact of the new services on the national air route structure, or otherwise to evaluate the proposed new services. In any case where the Board has issued a certificate under any one of such subsections on the basis that the air carrier holding such certificate will provide innovative or low-priced air transportation under such certificate, the Board upon petition, or its own motion, may review the performance of such air carrier, and may alter, amend, modify, suspend, or revoke such certificate or authority in accordance with the procedures prescribed in section 401(g) of this title, // 49 USC 1371 // on the grounds that such air carrier has not provided, or is not providing, such air transportation.".

DETERMINATIONS FOR ISSUANCE OF CERTIFICATES

Sec. 14. Section 401(d) of the Federal Aviation Act of 1958 (49 USC 1371(d)) is further amended by adding at the end thereof the following new paragraph:

"(9)(A) In any determination as to whether or not any applicant is fit, willing, and able to perform properly the air transportation specified in the application for a certificate described in paragraph (1) (A), (2) (A), or (3) (A) of this subsection and to conform to the provisions of this Act, the applicant shall have the burden of showing that it is so fit, willing, and able.

"(B) In any determination as to whether the air transportation specified in any application for a certificate described in paragraph (1)(A), (2)(A), or (3)(A) of this subsection is or is not consistent with the public convenience and necessity, an opponent of the application shall have the burden of showing that such air transportation is not consistent with the public convenience and necessity.

"(C) Transportation covered by any application for a certificate described in paragraph (1)(A),(2)(A), or (3)(A) of this subsection shall, for the purposes of such paragraphs, be deemed to be consistent with the public convenience and necessity, unless the Board finds based upon a preponderance of the evidence that such transportation is not consistent with the public convenience and necessity.".

TERMS AND CONDITIONS OF CERTIFICATES

Sec. 15. (a) Paragraph (3) of section 401(e) of the Federal Aviation Act of 1958 (49 USC 1371 (e)(3)) is amended by striking out "supplemental air transportation" and inserting in lieu thereof "foreign charter air transportation".

(b) Paragraph (4) of section 401(e) of such Act is amended by striking out the semicolon and all that follows down through the period and inserting in lieu thereof a period.

(c) Paragraph (6) of section 401(e) of such Act is amended by striking out "supplemental air carrier" and inserting in lieu thereof "charter air carrier".

REMOVAL OF RESTRICTIONS

Sec. 16. Section 401(e) of the Federal Aviation Act of 1958 (49 U. S.C. 1371(e)) is further amended by adding at the end thereof the following new paragraph:

"(7) (A) On and after the date of enactment of this paragraph, the Board shall not atach a closed-door restriction to any certificate issued under this section. Any closed-door restriction attached to any certificate issued before such date shall, on and ater such date, have no force or effect. This subparagraph shall not apply to (i) a closed-door restriction applicable to air transportation between two points both of which are in the State of Hawaii, or (ii) a closed-door restriction in effect on such date which resulted from a sale, exchange, or transfer by any air carrier of its authority to provide air transportation to another air carrier.

"(B) Upon application of any air carrier seeking removal or modification of a term, condition, or limitation attached to a certificate issued under this section to engage in interstate, overseas, or fireign air transportation, the Board shall, within sixty days after the filing of such application, set such application for oral evidentiary hearings on the record or begin to consider such application under the simplified procedures established by the Board in regulations pursuant to subsection (p) of this section for purposes of eliminating or modifying any such term, condition, or limitation which it finds is inconsistent with the criteria set forth in section 102 of this Act. // 49 USC 1302. // Applications under this paragraph shall not be subject to dismissal pursuant to section 401(c) (1) of this Act.

"(C) For purposes of this paragraph, the term 'closed-door restriction' means any condition attached to a certificate to provide interstate or overseas air transportation issued to any air carrier under this section which prohibits such air carier from providing local passenger service between any pair of points between which it is authorized to operate pursuant to such certificate.".

EFECTIVE DATE AND DURATION OF CERTIFICATE

Sec. 17. Section 401(f) of the Federal Aviation Act of 1958 (49 U. S.C. 1371(f)) is amended by striking out "ceased:" and all that follows down through the period and inserting in lieu thereof "ceased.".

AUTHORITY TO MODIFY, SUSPEND, OR REVOKE

Sec. 18. The first sentence of section 401(g) of the Federal Aviation Act of 1958 (49 U.S.C 1371(g)) is amended by inserting "or pursuant to the simplified procedures under subsection (p) of this section" after "notice and hearings".

TERMINATIONS, REDUCTIONS, AND SUSPENSIONS OF SERVICE

Sec. 19. (a) Section 401(j) of the Federal Aviation Act of 1958 is amended to read as follows:

" TERMINATIONS, REDUCTIONS, AND SUSPENSIONS OF SERVICE

"(j)(1) No air carrier holding a certificate issued under this section shall--,

"(A) terminate or suspend all air transportation which it is providing to a point under such certificate; or

"(B) reduce any such air transportation below that which the Board has determined to be essential air transportation for such point;

unless such air carrier has first given the Board, any community affected, and the State agency of the State in which such community is located, at least 90 days notice of its intent to so terminate, suspend, or reduce such air transportation. The Board may, by regulation or otherwise, authorize such temporary suspension of service as may be in the public interest.

"(2) If an air carrier holding a certificate issued pursuant to section 401 of this Act // 49 USC 1371. // proposes to terminate or suspend nonstop or single-plane air transportation between two points being provided by such air carrier under such certificate, and such air carrier is the only air carrier certificated pursuant to such section 401 providing nonstop or single plane air transportation between such points, at least sixty days before such proposed termination or suspension, such air carrier shall file with the Board and serve upon each community to be directly affected notice of such termination or suspension.".

(b) That portion of the table of contents contained in the first section of such Act which appears under the side heading

" Sec. 401. Certificate of public convenience and necessity." is amended by striking out

"(j) Application for abandonment."

and inserting in lieu thereof

"(j) Terminations, reductions, and suspensions of service.".

ADDITIONAL POWERS AND DUTIES OF BOARD WITH RESPECT

TO

CHARTER AIR CARRIERS

Sec. 20. (a) The center heading for section 401(n) of the Federal Aviation Act of 1958, // 49 USC 1371. // is amended by striking out " SUPPLEMENTAL" and inserting in lieu thereof " CHARTER".

(b) Paragraphs (1) through (4) of section 401(n) of such Act are amended to read as follows:

"(n)(1) No air carrier providing air transportation under a certificate issued under this section shall commingle, on the same flight, passengers being transported in interstate or overseas charter air transportation with passengers being transported in scheduled interstate or overseas air transportation, except that this subsection shall not apply to the carriage of passengers in air transportation under group fare tariffs.

"(2) No rule, regulation, or order issued by the Board shall restrict the marketability, flexibility, accessibility, or variety of charter trips provided under a certificate issued under this section except to the extent required by the public interest, and shall in no event be more restrictive than those regulations regarding charter air transportation in effect October 1, 1978.

"(3) Notwithstanding any other provision of this title, no certificate issued under this section shall authorize the holder thereof to provide charter air transportation between two points within the State of Alaska unless, and then only to the extent to which, the Board, in issuing or amending such certificate, may authorize after determining that such charter air transportation is required by the public convenience and necessity. This subsection shall not apply to a certificate issued under this section to a person who, before July 1, 1977, minrinws its principal place of business within the State of Alaska and conducted air transport operations between points within the State of Alaska with aircraft having a certificated gross thakeoff weight of more than 40,000 pounds.

"(4) No certificate issued under this section shall permit a charter air carrier to sell or offer for sale an inclusive tour in air transportation by selling or offering for sale individual tickets directly to members of the general public, or to do so indirectly by controlling, being controlled by or under common control with, a person authorized by the Board to make such sales.".

(c) Paragraph (5) of section 401(n) of such Act // 49 USC 1371. //

is amended--,

(1) in the first sentence, by striking out "a supplemental air carrier to comply with the provisions of paragraph (1), (3), or (4) of this subsection" and inserting in lieu thereof "a charter air carrier to comply with the provisions of subsection (q) or (r) of this section"; and

(2) in the last sentence, by striking out "paragraphs (1), (3), and (4) of this subsection" and inserting in lieu thereof "subsections (q) and (r) of this section".

(d)(1) Section 401 of such Act is amended by adding at the end thereof the following new subsections:

" INSURANCE AND LIABILITY

"(q)(1) No certificate shall be issued or remain in effect unless the applicant for such certificate or the air carrier, as the case may be, complies with regulations or orders issued by the Board governing the filing and approval of policies of insurance or plans for self-insurance in the amount prescribed by the Board which are conditioned to pay, within the amount of such insurance, amounts for which such applicant or such air carrier may become liable for bodily injuries to or the death of any person, or for loss or damage to property of others, resulting from the operation or maintenance of aircraft under such certificate.

"(2) In order to protect travelers and shippers by aircraft operated by certificated air carriers, the Board may require any such air carrier to file a performance bond or equivalent security arrangement, in such amount and upon such terms as the Board shall prescribe, to be conditoned upon such air carrier's making appropriate compensation to such travelers and shippers, as prescribed by the Board, for failure on the part of such carrier to perform air transportation services in accordance with agreements therefor.

" CONTINUING REQUIREMENT

"(r) The requirement that each applicant for a certificate or any other authority under this title must be found to be fit, willing, and able to perform properly the transportation covered by its application and to conform to the provisions of this Act and the rules, regulations, and requirements of the Board under this Act, shall be a continuing requirement applicable to each such air carrier with respect to the transportation authorized by the Board. The Board shall by order, entered after notice and hearing, modify, suspend, or revoke such certificate or other authority, in whole or in part, for failure of such air carrier to comply with the continuing requirement that the air carrier be so fit, willing, and able, or for failure to file such reports as the Board may deem necessary to determine whether such air carrier is so fit, willing, and able.".

(2) That portion of the table of contents contained in the first section of such Act which appears under the side heading

" Sec. 401. Certificates of public convenience and necessity." is amended--,

(A) by striking out

"(n) Additional powers and duties of Board with respect

to supplemental

air carriers."

and inserting in lieu thereof

"(n) Additional powers and duties of Board with respect

to charter

air carriers";

and

(B) by adding at the end thereof

"(q) Insurance and liability. "(r) Continuing requirement.". PROCEDURES FOR PROCESSING APPLICATIONS

Sec. 21. (a) (1) Section 401 of the Federal Aviation Act of 1958 (49 U.S.C. 1371) is amended by adding at the end thereof the following new subsection:

" PROCEDURES FOR PROCESSING APPLICATIONS FOR

CERTIFICATES

"(p) (1) The Board shall promulgate rules establishing simplified procedures for--,

"(A) the disposition of applications for a certificate to engage in air transportation pursuant to subsection (d) (1), (2), or (3) of this section; and

"(B) the alteration, amendment, modification, suspension, or transfer of all or any part of any certificate pursuant to subsection (f), (g), or (h) of this section.

// 49 USC 1371. // Such rules shall provide for adequate notice and an opportunity for any interested person to file appropriate written evidence and argument, but need not provide for oral evidentiary hearings. Such rules may provide that such written evidence and argument shall be filed by such person as part of a protest or memorandum filed with respect to such application under subsection (c) of this section.

"(2) The Board may use such simplified procedures in any case if the Board determines that the use of such simplified procedures is in the public interest. The rules adopted by the Board pursuant to this subsection shall, to the extent the Board finds it practicable, set forth the standards it intends to apply in determining whether to employ such simplified procedures, and in deciding cases in which such procedures are employed.".

(2) That portion of the table of contents contained in the first section of such Act which appears under the side heading

" Sec. 401. Certificate of public convenience and necessity." is amended by inserting at the end thereof

"(p) Procedures for processing applications for

certificates.".

(b) (1) Section 402 of the Federal Aviation Act of 1958 (49 U.S.C. 1372) is amended by adding at the end thereof the following new subsection:

" PROCEDURES FOR PROCESSING APPLICATIONS FOR PERMITS

"(h) The Board shall promulgate rules establishing simplified procedures for--,

"(1) the disposition of applications for a permit to engage in foreign air transportation pursuant to this section; and

"(2) the alteration, amendment, modification, suspension, or transfer of all or any part of any permit pursuant to subsection (f) of this section.

Such rules shall provide for adequate notice and an opportunity for all interested persons to file appropriate written evidence and argument, but need not provide for oral evidentiary hearings.".

(2) That portion of the table of contents contained in the first section of such Act which appears under the side heading

" Sec. 402. Permits to foreign air carriers."

is amended by inserting at the end thereof

"(h) Procedures for processing applications for permits.".

NOTICE OF TARIFF CHANGES

Sec. 22. Section 403(c) of the Federal Aviation Act of 1958 (49 U. S.C. 1373(c)) is amended to read as follows:

" NOTICE OF TARIFF CHANGES

"(c) (1) Except as provided in paragraph (2) of this subsection, no change shall be made in any rate, fare, or charge, or any classification, rule, regulation, or practice affecting such rate, fare, or charge, or the value of the service thereunder, specified in any effective tariff of any air carrier until thirty days after notice of the proposed change has been filed, posted, and published in accordance with subsection (a) of this section, except the Board may establish an alternative notice requirement, of not less than twenty-five days, to allow an air carrier to match the fares or charges specified in another air carrier's proposed tariff. Any notice specified under this subsection shall plainly state the change proposed to be made and the time such change will take effect.

"(2) If the effect of any proposed tariff change would be to institute a fare that is outside of the applicable range of fares specified in subparagraphs (A) and (B) of section 1002(d) (4) of this Act, or specified by the Board under section 1002(d) (7) of this Act, or would be to institute a fare to which such range of fares does not apply, then such proposed change shall not be implemented except after sixty days' notice filed in accordance with regulations prescribed by the Board.

"(3) In exercising its power to suspend tariffs under sections 1002( g) and 1002(j) of this Act, // 49 USC 1482. // the Board shall file and deliver a statement in writing of its reasons for such suspension, as required under section 1002(g), at least thirty days before the date on which the affected tariff would otherwise go into effect.".

RATES OF CARRIAGE FOR PERSONS AND PROPERTY

Se c. 23. Section 404(a) (1) of the Federal Aviation Act of 1958 (49 U.S.C. 1374(a) (1)) is amended by inserting "authorized to engage in scheduled air transportation by certificate or by exemption under section 416(b) (3) of this title" // 49 USC 1386. // immediately before the first semicolon.

MAIL AND COMPENSATION

Sec. 24. (a) (1) Clause (3) of the second sentence of section 406(b) of the Federal Aviation Act of 1958 (49 U.S.C. 1376(b) is amended to read as follows: "(3) the need of each such air carrier (other than a charter air carrier) for compensation for the transportation of mail sufficient to insure the performance of such service, and--,

"(A) during the period beginning on the date of enactment of this clause and ending on January 1, 1983, both dates inclusive, together with all other revenue of the air carrier from the service for which the compensation is being paid; and

"(B) after January 1, 1983, together with all other revenue of the air carrier;

to enable such air carrier under honest, economical, and efficient management, to provide (except for modifications with respect to an individual point determined after January 1, 1983, to be required by the public interest, after giving interested parties an opportunity for an evidentiary hearing with respect to air transportation for such individual point) air transportation of at least the same extent, character, and quality as that provided during the year ending December 31, 1977, to maintain and continue the development of air transportation to the extent and of the character and quality required for the commerce of the United States, the Postal Service, and the national defense.".

(2) Section 406(b) of the Federal Aviation Act of 1958 is amended by inserting after the second sentence the following new sentences: " Notwithstanding any other provision of this section, rates of compensation paid to any carrier under this section for service performed between the date of enactment of this sentence and January 1, 1983, shall be based on the subsidy need of such carrier with respect to service performed to points for which such carrier was entitled to receive compensation for serving during calendar year 1977. In the case of any local service carrier, such subsidy need shall be based on the adjusted eligible need of such carrier determined in a matter consistent with the provisions of Local Service Class Subsidy Rate VIII, with technical adjustments, and in the case of any other carrier receiving compensation during the twelve months ended June 30, 1978, such subsidy need shall be determined pursuant to the method in effect during the twelve months ended June 30, 1978. Any air carrier receiving compensation from the Board pursuant to this section which, before January 1, 1986, terminates service to a point for which such compensation is paid shall not, if such service is resumed by such air carrier, be eligible for compensation from the Board under this section for such service. Nothing in this subsection shall be construed as prohibiting any air carrier specified in the preceding sentence from applying for and receiving compensation for such service under section 419 of this title.".

(b) Subsection (c) of such section 406 (49 U.S.C. 1376 (c) is amended by adding at the end thereof the following new sentence: " The Board shall make no payments under this section for any services performed after January 1, 1986.".

LOCAL SERVICE AIR CARRIER COMPENSATION

Sec. 25. (a) The last sentence of section 406(b) of the Federal Aviation Act of 1958 (49 U.S.C. 1376 (b) is amended as follows:

(1) By striking out "the year 1966" and inserting in lieu thereof "the years 1964, 1965, and 1966".

(2) By striking out " Rate III- A" and inserting in lieu thereof " Rates III and III- A".

(3) By striking out "order E-23850 (44 CAB 138 et seq. and 44 CAB 637 et seq.)".

(b) Section 12(b) of Public Law 95 - 163, Ninety-fifth Congress, approved November 9, 1977, // 49 USC 1376. // is amended by striking out "the year 1966" and inserting in lieu thereof "the year 1964, 1965, or 1966".

MERGERS AND CONTROL

Sec. 26. (a) Section 408 of the Federal Aviation Act of 1958 (49 U. S.C. 1378) is amended as follows:

(1) Subsection (a) of such section 408 (49 U.S.C. 1378(a)) is amended to read as follows:

" ACTS PROHIBITED

" Sec. 408. (a) Except as provided in subsection(b) of this section, it shall be unlawful--,

"(1) for two or more air carriers, or for any air carrier and any other common carrier or any person substantially engaged in the business of aeronautics, to consolidate or merge their properties, or a substantial portion thereof, into one person for the ownership, management, or operation of the properties previously in separate ownerships;

"(2) for any air carrier, any person controlling an air carrier, any other common carrier, or any person substantially engaged in the business of aeronautics, to purchase, lease, or contract to operate all or a substantial portion of the properties of any air carrier;

"(3) for any air carrier or person controlling an air carrier to purchase, lease, or contract to operate all or a substantial portion of the properties of any person substantially engaged in the business of aeronautics otherwise than as an air carrier;

"(4) for any foreign air carrier or person controlling a foreign air carrier to acquire control in any manner whatsoever of any citizen of the United States substantially engaged in the business of aeronautics;

"(5) for any air carrier or person controlling an air carrier, any other common carrier, or any person substantially engaged in the business of aeronautics to acquire control of any air carrier in any manner whatsoever;

"(6) for any air carrier or person controlling a certificated air carrier to acquire control, in any manner whatsoever, of any person substantially engaged in the business of aeronautics other than as an air carrier; or

"(7) for any person to continue to maintain any relationship established in violation of any of the foregoing paragraphs of this subsection.".

(2) Subsection (b) of such section 408 (49 U.S.C. 1378(b)) is amended to read as follows:

" POWER OF BOARD

"(b)(1) In any case in which one or more of the parties to a consolidation,

merger, purchase, lease, operating contract, or acquistion of control, specified in subsection (a) of this section is an air carrier

holding a valid certificate issued by the Board under section 401(d) of this section to engage in interstate or overseas air transportation, a foreign air carrier, or a person controlling, controlled by, or under common control with, such an air carrier or a foreign air carrier, the person seeking approval of such transaction shall present an application to the Board, and at the same time, a copy to the Attorney General and the Secretary of Transpotation, and thereupon the Board shall notify the persons involved in the transaction and other persons known to have a substantial interest in the proceeding, of the manner in which the Board will proceed in disposing of such application. Unless, after a hearing, the Board finds that the transaction will not be consistent with the public interest or that the conditions of this section will not be fulfilled, it shall, by order, approve such transaction, upon such terms and conditions as it shall find to be just and reasonable and with such modifications as it may prescribe, except the Board shall not approve such transaction-,

"(A) if it would result in a monopoly or would be in furtherance of any combination or conspiracy to monopolize or to attempt to monopolize the business of air transportation in any region of the United States; or

"(B) the effect of which in any region of the United States may be substantially to lessen competition, or to tend to create a monopoly, or which in any other manner would be in restraint of trade, unless the Board finds that the anticompetitive effects of the proposed transaction are outweighted in the public interest by the probable effect of the transaction in meeting significant transportation conveniences and needs of the public, and unless it finds that such singnificant transportation conveniences and needs may not be satified by a reasonably available alternative having materially less anticompetitive effects.

The party challenging the transaction shall bear the burden of proving the anticompetitive effects of such transaction, and the proponents of the transaction shall bear the burden of proving that it meets the significant transportation conveniences and needs of the public and that such conveniences and needs may not be satisfied by a less anticompetitive alternative.

"(2) In any case in which the Board determines that the transaction which is the subject of the application does not affect the control of an air carrier directly engaged in the operation of aircraft in air transportation and determines that neither the Attorney General, nor the Secretary, nor any other person disclosing a substantial interest in the transaction then currently is requesting a hearing, the Board, no sooner than 30 days after publication in the Federal Register of notice of the Board's intention to dispose of such application without a hearing (a copy of which notice shall be furnished by the Board to the Attorney General and the Secretary not later than the day following the date of such publication), may determine that the public interest does not require a hearing and, in accordance with the standards set forth in subparagraphs (A) and (B) of paragraph (1) of this subsection, by order,approve or disapprove such transaction.

"(3)(A) In any case in which none of the parties to a consolidation, merger, purchase, lease, operating contract, or acquisition of control, specified in subsection (a) of this section, is an air carrier holding a valid certificate issued by the Board under section 401(d) of this title to engage in interstate or overseas air transportation, a foreign air carrier, or a person controlling, controlled by, or under common control with, such an air carrier or a foreign air carrier, any person seeking approval of such transaction shall file with the Board not later than the forty-fifth day before the effective date of such transaction, a statement of its intent to enter into any of the prohibited acts set forth in subsection (a) of this section. The Board may, within forty-five days after the date of such filing, require such person to file an application for approval pursuant to the requirements of paragraph (1) of this subsection if it finds either that the proposed transaction may monopolize, tend to monopolize, or otherwise restrain competition in air transportation in any section of the country or that the person may not be fit, willing, and able to properly perform the transportation authorized by any license which is a part of such transaction and to conform to the provisions of this Act and the rules, regulations, and requirements of the Board issued pursuant to this Act. Subject to subparagraph (B) of this paragraph, if the Board fails to require such person to file an application pursuant to such paragraph (1) within such forty-five days, the proposed transaction shall not be subject to subsection (a) of this section.

"(B) If the Board determines that any transaction is not subject to subsection (a) of this section as a result of the last sentence of subparagraph (A) of this paragraph and such transaction received such statutory exemption due to any fraud, misrepresentation, or omission of relevant and material facts, the Board may, pursuant to rules which it is authorized to prescribe, make such transaction subject to subsection (a) of this section.".

(b) Section 408(c) of such Act // 49 USC 1378 //

is amended by inserting "any person controlling such air carrier," after "air carrier," the first place it appears in such subsection.

INTERLOCKS

Sec. 27. (a) Section 409 of the Federal Aviation Act of 1958 (49 U. S.C. 1379) is amended by striking out the center heading of such section and the center heading for subsection (a) of such section and inserting in lieu thereof the following section center heading:

" INTERLOCKING RELATIONSHIPS".

(b) Section 409 of the Federal Aviation Act of 1958 is also amended by striking out " Sec. 409. (a)" and inserting in lieu thereof " Sec. 409.".

(c) Section 409 (as amended by subsections (a) and (b) of this section) is amended as follows:

(1) Paragraphs (1), (2), and (3) are each amended by striking out "is engaged in any phase of" and inserting in lieu thereof

"is substantially engaged in the business of".

(2) Paragraphs (4), (5), and (6) are each amended by striking out "engaged in any phase of" and inserting in lieu thereof "substantially

engaged in the business of".

(d) Section 409(b) of the Federal Aviation Act of 1958 (49 U.S.C 1379(b)) is hereby repealed.

(e) That portion of the table of contents contained in the first section of the Federal Aviation Act of 1958 which appears under the center heading

Title IV- Air Carrier Economic Regulation"

is amended by striking out

" Sec. 409. Prohibited interests.

"(a) Interlocking relationships.

"(b) Profit from transfer of securities."

and inserting in lieu thereof

" Sec. 409. Interlocking reationships.".

AGREEMENTS

Sec. 28. (a) Section 412(a) of the Federal Aviation Act of 1958(49 U.S.C. 1382(a)) is amended-,

(1) by inserting in the subsection center heading " AFFECTING FOREIGN AIR TRANSPORTATION" immediately after " AGREEMENTS"; and

(2) by inserting "foreign" immediately after "affecting".

(b) Section 412(b) of such Act is amended by inserting "affecting foreign air transportation" immediately after "agreement" each place it appears in such section.

(c) Section 412 of such Act is further amended by adding at the end thereof the following new subsections:

" FILING AND APPROVAL OF AGREEMENTS AFFECTING

INTERSTATE OR

OVERSEAS AIR TRANSPORTATION

"(c)(1) Any air carrier may file with the Board a true capy, or, if oral, a true and complete memorandum, of any contract or agreement (whether enforceable by provisions for liquidated damages, penalties, bonds, or otherwise), or a request for authority to discuss possible cooperative working arrangements, affecting interstate or overseas air transportation and in force on the effective date of this subsection, or thereafter entered into, or any modification or cancellation thereof, between such air carrier and any other air carrier, foreign air carrier, or other carrier.

"(2)(A) The Board shall by order disapprove any contract, agreement, or request filed pursuant to paragraph (1) of this subsection, whether or not previously approved by it, that it finds to be adverse to the public interest or in violation of this Act, and shall by order approve any contract, agreement, or request, or any modification or cancellation thereof, that it does not find to be adverse to the public interest, or in violation of this Act, except that-,

"(i) the Board may not approve or, after periodic review, continue its approval of any such contract, agreement, or request, or any modification or cancellation thereof, which substantialll reduces or eliminates competition, unless it finds that the contract, agreement, or request is necessary to meet a serious transportation

need or to secure important public benefits and it does not find

that such need can be met or such benefits can be secured by reasonably available alternative means having materially less anticompetitive effects;

"(ii) the Board may not approve any contract or agreement between an air carrier not directly engaged in the operation of aircraft in air transportation and a common carrier subject to the Interstate Commerce Act, as amended, governing the compensation to be received by such common carrier for transportation services perfomed by it; and

"(iii) the Board may not approve any such contract or agreement, or any modification or cancellation thereof, that limits the level of capacity among air carriers in markets in which they compete, that fixes rates, fares, or charges between or among air carriers (except for joint rates, fares, or charges).

"(B) In any proceeding before the Board involving the application of the standards set forth in subparagraph (A)(i) of this paragraph, the party opposing the proposed contract, agreement, or request shall have the burden of proving the reduction or elimination of competition, and the availability of alternative means having less anticompetitive effects, and the party defending the proposed contract, agreement, or request shall have the burden of proving transportation need or public benefits.

"(C) The findings required by subparagraph (A)(i) of this paragraph, shall be included in any order of the Board approving or disapproving any contract or agreement, or any memorandum of any contract or agreement, or any modification or cancellation thereof, or any request.

" PROCEEDINGS UPON FILING

"(d) Upon the filing of any contract or agreement, or any modification or cancellation thereof, or any request for authority to discuss possible cooperative working arrangements, pursuant to subsection (a) or (c) of this section, the Board, in accordance with regulations which it prescribes, shall provide to the Attorney General and the Secretary of Transportation written notice of, and an opportunity to submit written comments on, the filed document. The Board may, upon its own initiative or if requested by the Attorney General or such Secretary, hold a hearing, in accordance with regulations prescribed by the Board, to determine if a contract or agreement or request for discussion authority, whether or not previously approved, is consistent with the provisions of this Act.".

(d) That portion of the table of contents which appears under the side heading

" Sec. 412. Pooling and other agreements." is amended by striking out

"(a) Filing of agreements required.

"(b) Approval by Board."

and inserting in lieu thereof

"(a) Filing of agreements affecting foreign air transportation required.

"(b) Approval by Board.

"(c) Filing and approval of agreements affecting interstate or overseas air transportation.

"(d) Proceedings upon filing.".

MUTUAL AID AGREEMENTS

Sec. 29. (a) Section 412 of the Federal Aviation Act of 1958 (49 U. S.C. 1382) is amended by adding at the end thereof the following new subsection:

" MUTUAL AID AGREEMENTS

"(e)(1) Notwithstanding any other provision of law, any mutual aid agreement between air carriers which was approved by the Board before the date of enactment of this subsection and which is in effect on such date of enactment shall be deemed disapproved and not in effect on and after such date of enactment.

"(2) No air carrier shall enter into any mutual aid agreement with any other air carrier, unless such air carrier files a true copy of such agreement with the Board and the Board approves such agreement pursuant to the provisions of this section. Notwithstanding subsection (c) of this section, the Board shall not approve any such agreement unless such agreement provides (A) that any air carrier will not receive payments for any period which exceed 60 per centum of the direct operating expenses during such period, (B) that benefits under the agreement are not payable for more than eight weeks during any labor strike, and that such benefits may not be for losses incurred during the first thirty days of any labor strike, and (C) that any party to such agreement will agree to submit the issues causing any labor strike to binding arbitration pursuant to the Railway Labor Act // 45 USC 151 // if the striking employees request such binding arbitration.

"(3) For purposes of this subsection, the term-,

"(A) 'mutual aid agreement' means any contract or agreement between air carriers which provides that any such air carrier will receive payments from the other air carriers which are parties to such contract or agreement for any period during which such air carrier is not engaging in air transportation, or is providing reduced levels of service in air transportation, due to a labor strike; and

"(B) 'direct operating expenses' includes interest expenses but does not include depreciation or amortization expenses.".

(b) That portion of the table of contents contained in the first section of the Federal Aviation Act of 1958 which appears under the side heading

" Sec. 412. Pooling and other agreements." is amended by inserting at the end thereof

"(e) Mutual aid agreements.".

ANTITRUST EXEMPTION

Sec. 30. (a) Section 414 of the Federal Aviation Act of 1958 (49 U. S.C. 1384) is amended to read as follows:

" ANTITRUST EXEMPTION

// 49 USC 1378, 1379, 1382. //

" Sec. 414. In any order made under section 408, 409, or 412 of this Act, the Board may, as part of such order, exempt any person affected by such order from the operations of the 'antitrust laws' set forth in subsection (a) of the first section of the Clayton Act (15 U. S.C. 12) to the extent necessary to enable such person to proceed with the transaction specifically approved by the Board in such order and those transactions necessarily contemplated by such order, except that the Board may not exempt such person unless it determines that such exemption is required in the public interest."

(b) That protion of the table of contents contained in the first section of such Act which appears under the center heading

" Title IV-- Air Corrier Economic Regulation"

is amended by striking out

" Sec. 414. Legal restraints." and inserting in lieu thereof

" Sec. 414. Antitrust exemption.".

EXEMPTION AUTHORITY

Sec. 31. (a) Section 416(b)(1) of the Federal Aviation Act of 1958 (49 U.S.C. 1386(b)(1)) is amended to read as follows:

" EXEMPTIONS

"(b)(1) Except as povided in paragraph (2) of this subsection, the Board, from time to time and to the extent necessary, may exempt from the requirements of this title or any provision thereof, or any rule, regulation, term, condition, or limitation prescribed thereunder, any person or class of persons if it finds that the exemption is consistent with the public interest.

(b) Section 416(b) of such Act // 49 USC 1386. // is amended by adding at the end thereof the following new paragraph:

"(3) The Board may by order relieve foreign air carriers who are not directly engaged in the operation of aircraft in foreign air transportation from the provisions of this Act to the extent and for such periods as such relief may be in the public interest.".

COMMUTER EXEMPTION

Sec. 32. Section 416(b) of the Federal Aviation Act of 1958 (49 U.S. C. 1386(b)) is further amended by adding at the end thereof the following new paragraphs:

"(4) Subject to paragraph (5) of this subsection, any air carrier in air transportation which provides (A) passenger service solely with aircraft having a maximum passenger capacity of less than fifty-six passengers, or (B) cargo service in air transportation solely with aircraft having a maximum payload capacity of less than eighteen thousand pounds, shall be exempt from the requirements of subsection (a) of section 401 of this title, // 49 USC 1371. // and of such other sections of this Act as may be prescribed in regulations promulgated by the Board, if such air carrier conforms to such liability insurance requirements and such other reasonable regulations as the Board shall from time to time adopt in the public interest. The Board may by regulation increase the passenger or property capacities specified in this paragraph when the public interest so requires.

"(5) The exemption from section 401 of this title or any other requirement of this Act shall not apply to any air transportation by any air carrier between points both of which are in the State of Alaska, or one of which is in the State of Alaska and the other in Canada, unless such air carrier also holds authority to provide such air transportation from the State of Alaska.

"(6) Any air carrier operating within the State of Alaska pursuant to the exemption from section 401 of this title shall not be subject to any limitation, promulgated by the Board, on the number or location of points to be served by such air carrier, or any limitation on the frequency of service by such air carrier to points within such State, unless the Board, after a hearing, finds that the operation of such air carrier substantially impairs the ability of a certificated air carrier to provide the service authorized by its certificate, including but not limited to, the minimum service for such State specified in section 419(c)(2) of this title.".

Small COMMUNITY AIR SERVICE

Sec. 33. (a) Title IV of the Federal Aviation Act of 1958 is amended by adding at the end thereof the following new section.

" Small Community Air Service " GUARANTEED ESSENTIAL AIR TRANSPORTATION

" Sec. 419. (a)(1) For purposes of this subsection, // 49 USC 1389 // the term 'eligible point' means any point in the United States to which, on the date of enactment of this section, any air carrier--,

"(A) is providing service pursuant to a certificate issued to such carrier under section 401 of this title; or

"(B) is authorized pursuant to such certificate to provide such service, but such service is suspended on such date of enactment.

"(2)(A) With respect to each eligible point which on the date of enactment of this section is served by not more than one air carrier holding a certificate issued under section 401 of this title, // 49 USC 137. // not later than the last day of the one-year period beginning on such date of enactment, the Board, after considering the views of any interested community and the State agency of the State in which such community is located, shall determine what is essential air transportation for such point.

"(B) With respect to any eligible point which on the date of enactment of this section is served by more than one air carrier holding a certificate issued under section 401 of this title and which thereafter recives service by not more than one such air carrier, not later than the last day of the six-month period beginning on the date on which the Board receives notice that service to such point will be provided by not more than one such air carrier, the Board, after considering the views of any interested community and the State agency of the State in which such community is located, shall determine what is essential air transportation to such point.

"(C) The Board shall periodicall review the determination of what is esssential air transportation to each eligible point, and may, based upon such review and consultations with any interested community and the State agency of the State in which such community is located, make appropriate adjustments as to what is essential air transportation to such point.

"(3) No air carrier shall terminate, suspend, or reduce air transportation to any eligible point below the level of essential air transportation established by the Board under paragraph (2) unless such air carrier--,

"(A) if such air carrier--,

"(i) holds a certificate issued under section 401 of this title, or "(ii) does not such a certificate, but is receiving

compensation

pursuant to paragraph (5) of this subsection for

service to such eligible point,

has given the Board, the appropriate State agency or agencies,

and the communities affected at least ninety days notice prior to

such termination, suspension, or reduction; and

"(B) if such air carrier does not hold such a ceritficate and is not receiving compensation pursuant to paragraph (5) of this subsection for service to such eligible point, has given the Board, the appropriate State agency or agencies, and the communities affected at least thirty days notice prior to such termination, suspension, or reduction.

"(4) Whenever the Board determines that essential air transportation will not be provided to any eligible point without compensation--,

"(A) the Board shall provide notice that applications may be submitted by any air carrier which is willing to provide essential air transportation to such point for compensation under this subsection In selecting an applicant to provide essential air transportation to such point for compensation the Board shall, among other factors, specifically consider--,

"(i) the desirability of developing an integrated linear system of air transportation whenever such a system most adequately meets the air transportation needs of the

communities

involved;

"(ii) the experience of the applicant in providing

scheduled

air service in the vicinity of the communities for

which essential

air transportation is proposed to be provided; and

"(iii) notwithstanding the provisions of clause (ii), with respect to any eligible point in the State of Alaska,

the experience

of an applicant in providing scheduled air service, or

significant patterns of nonscheduled air service

pursuant to an

exemption granted pursuant to section 416 of this title,

// 49 USC 1386. //

in

Alaska; and

"(B) the Board shall establish, in accordance with the guidelines promulgated under subsection (d) of this section, a rate of compensation to be paid for providing such essential air transportation.

"(5) The Board shall make payments of compensation under this subsection at times and in a manner determined by the Board to be appropriate. The Board shall continue to pay compensation to any air carrier to provide essential air transportation to any eligible point only for so long as the Board determines it is necessary in order to maintain essential air transportation to such eligible point.

"(6) Notwithstanding section 401(j) of this title, if an air carrier has provided notice to the Board under paragraph (3) of such air carriers intention to suspend, terminate, or reduce service to any eligible point below the level of essential air transportation to such point, and if at the conclusion of the applicable period of notice the Board has not been able to find another air carrier to provide essential air transportation to such point, the Board shall require the carrier which provided such notice to continue such service to such point for an additional 30-day period, or until another air carrier has begun to provide essential air transportation to such point, whichever first occurs. If at the end of such 30-day period the Board determines that no other air carrier can be secured to provide essential air transportation to such eligible point on a continuing basis, either with or without compensation, then the Board shall extend such requirement for such additional 30-day periods (making the same determination at the end of each such period) as may be necessary to continue air transportation to such eligible point until an air carrier can be secured to provide essential air transportation to such eligible point on a continuing basis.

"(7)(A) If any air carrier (i) which is providing air transportation to any eligible point, and (ii) which is receiving compensation under this subsection, // 49 USC 1376. // or under section 406 of this title for providing such air transportation to such point, is required by the Board to continue service to such point beyond the date on which such air carrier would, but for paragraph (6) of this subsection, be able to suspend, terminate, or reduce service to such point below the level of essential air transportation to such point, then after such date such air carrier shall continue to receive such compensation until the Board finds another air carrier to provide essential air transportation to such point.

"(B) If the Board requires an air carrier which holds a certificate issued under section 401 of this title, // 49 USC 1371 // and which is providing air transportation to any eligible point without compensation pursuant to paragraph (5) of this subsection or section 406 of this title to continue to provide essential air transportation to such point beyond the 90-day notice period after which, but for paragraph (6) of this subsection, such air carrier would be able to suspend, terminate, or reduce service to such point below essential air transportation for such point, then the Board shall compensate such air carrier for any losses that the air carrier incurs in complying with this subparagraph after the last day of such 90-day period, except that the Board shall not make any payments under this subparagraph, to any trunk air carrier for service to such point after the last day of the one-year period beginning on the date on which any payment is made to such air carrier under this subparagraph for service to such point.

"(C) If the Board requires an air carrier which does not hold a certificate issued under section 401 of this title, // 49 USC 1371 // but which is providing air transportation to any eligible point without compensation pursuant to paragraph (5) of this subsection or section 406 of this title, // 49 USC 1376. // to continue to provide essential air transportation to such point beyond the 30-day notice period after which, but for paragraph (6) of this subsection, such air carrier would be able to suspend, terminate, or reduce service to such point below essential air transportation for such point, then the Board shall compensate such air carrier for any losses that such air carrier incurs in complying with this paragraph after the last day of such 30-day period.

"(9) During any period for which the Board requires any air carrier to continue providing air transportation to an eligible point which such air carrier has proposed to terminate, reduce, or suspend, the Board shall continue to make every effort to secure an air carrier to provide at least essential air transportation to such eligible point, on a continuing basis.

"(10) Unless the Board has determined what is essential air transportation for any eligible point pursuant to paragraph (2) of this subsection, the Board shall, upon petition of any appropriate representative of such point, prohibit any termination, suspension, or reduction of air transportation which reasonably appears to deprive such point of essential air transportation, until the Board has completed such determination.

"(11)(A) After January 1, 1983, any air carrier may file an application with the Board seeking to have any compensation provided under section 406 of this title to the air carrier then serving an eligible point terminated in order to allow the applicant air carrier to provide air transportation to that eligible point for compensation under this section. The Board shall grant such application, after notice and a hearing if requested by the air carrier receiving subsidy under section 406, taking into consideration the objectives specified in subparagraphs (A) (i) and (ii) of paragraph (5) of this subsection, if the applicant can show that termination of the compensation being paid under section 406, and that the provision of service by such applicant with compensation under this section, will result in a substantial--,

"(i) improvement in the air service being provided such eligible point; and

"(ii) decrease in the amount of compensation that will be required to continue essential air transportation to such eligible point.

"(B) After January 1, 1983, any air carrier may file an application with the Board seeking to have the compensation provided under this section to the air carrier then serving an eligible point, and which has been serving such eligible point for at least two years preceding the date on which such application is filed, terminated in order to allow the applicant air carrier to provide essential air transportation to such eligible point for compensation under this section. The Board shall grant such application, after notice and a hearing if requested by an air carrier receiving compensation under this section, taking into consideration the objectives specified in subparagraphs (A)(i) and (ii) of paragraph (4) of this subsection, if the applicant air carrier can show that termination of the compensation being provided to the air carrier then serving such eligible point, and the provision of essential air transportation for compensation under this section by the applicant air carrier will result in a substantial--,

"(ii) improvement in the air transportation being provided such eligible point with no increase in the amount of compensation then being paid; or

"(ii) decrease in the amount of compensation that will be required to continue essential air transportation to that eligible point.

(C) In disposing of each application filed under this subsection, the Board shall, in addition to considering the objectives specified in subparagraphs (A)(i) and (ii) of paragraph (4), solicit and give great weight to the opinions of the communities affected by the proposed replacement of an air carrier under this subsection.

" OTHER AIR SERVICE

"(b)(1) For purposes of this subsection, the term 'eligible point' means--,

"(A) any point in the United States which has been deleted

from a certificate issued under section 401 of this title, // 49 USC 1371. //

between

July 1, 1968, and the date of enactment of this section, both dates inclusive, and which the Board designates pursuant to paragraph 2 of this subsection; and

"(B) any other point in the State of Alaska or Hawaii designated by the Board under paragraph 2 of this subsection.

"(2)(A) Not later than January 1, 1980, after considering the views of State agencies and other interested parties, the Board shall, by rule, establish objective criteria for designating points as eligible points. In establishing or modifying such criteria, the Board shall consider, amoung other factors, the level of traffic generated by the point concerned, its future traffic generating potential, the cost to the Federal Government of providing essential air transportation to such point, the alternative means of transportation available to the residents of such point for access to the national transportation system and its principal communities of interest, and the degree of isolation of such point from the national air transportation system. The Board may, ffrom time to time, by rule, modify the criteria established by it under this subparagraph.

"(B) Not later than january 1, 1980, the Board shall begin to review each point described in paragraph (1)(A) of this subsection to determine whether such point shall be designated as an eligible point under the criteria established under subparagraph (B) of this paragraph. The review and designation of each such point shall be completed before January 1, 1982.

"(C) On or after January 1, 1982, the Board, upon application by any interested party, may designate any point an eligible point under the criteria established under subparagraph (B) of this paragraph (i) if such point is in the State of Alaska or the State of Hawaii, and (ii) if such designation would not increase the total number of points receiving a subsidy under this section and section 406 of this title, // 49 USC 1376. // above the total number of points receiving a subsidy under such section 406 on July 1, 1968.

"(3) The designation of any point by the Board under paragraph (2) of this subsection as an eligible point may be withdrawn if the point no longer meets the criteria for designation as an eligible point.

"(4) (A) With respect to any point which the Board designates as an eligible point pursuant to pragraph (2) of this subsection, not later than the day of the six-month period beginning on the date on which the Board makes such designation, the Board, after considering the views of any interested community and the State agency of the State in which such community is located, shall determine what is essential air transportation to such point.

"(B) The Board shall periodically review the determination of what is essential air transportation to each eligible point, and may, based upon such review and consultations with any interested community and any State agency of the State in which such community is located, make appropriate adjustments as to what is essential air transportation to such point.

"(5) Whenever the Board determines that essential air transportation will not be provided to any eligible point without compensation--

"(A) the Board shall provide notice that applications may be submitted by any air carrier which is willing to provide essential air transportation to such point for compensation under this subsection. In selecting an applicant to provide essential air transportation to such point for compensation, the Board shall, among other factors, specifically consider--,

"(i) the desirability of developing an integrated linear system of air transportation whenever such a system most adequately meets the air transportation needs of the

communities

involved;

"(ii) the experience of the applicant in providing

scheduled

air service in the vicinity of the communities for which

essential air transportation is proposed to be

provided; and

"(iii) notwithstanding the provisions of clause (ii), with respect to any eligible point in the State of Alaska,

the

experience of an applicant in providing scheduled air

service,

or significant patterns of nonscheduled air service

pursuant

to an exemption granted pursuant to section 416 of this

title,

// 49 USC 1386. //

in Alaska; and

"(B) the Board shall establish, in accordance with the guidelines promulgated under subsection (d) of this section, a rate of compensation to be paid for providing such essential air transportation.

"(6) The Board shall make payments of compensation under this subsection at times and in a manner determined by the Board to be appropriate. The Board shall continue to pay compensation to any air carrier to provide essential air transportation to any eligible point only for so long as the Board determines it is necessary in order to maintain essential air transportation to such eligible point.

"(7) Prior to terminating, suspending, or reducing essential air transportation to any eligible point, an air carrier--,

"(A) if such air carrier--,

"(i) holds a certificate issued under section 401 of this title,

// 49 USC 1371. //

or

"(ii) does not hold such a certificate, but is receiving

compensation

pursuant to paragraph (6) of this subsection for service to such eligible point, shall give the Board,

the appropriate

State agency or agencies, and the communities affected

at least ninety days notice prior to such termination,

suspension, or reduction; and

"(B) if such air carrier does not hold such a certificate and is not receiving compensation pursuant to paragraph (6) of this subsection for service to such eligible point, shall give the Board, the appropriate State agency or agencies, and the communities affected such notice (not to exceed 30 days), as the Board shall by regulation prescribe.

"(8) (A) After January 1, 1983, any air carrier may file an application with the Board seeking to have the compensation provided under this subsection to the air carrier then serving an eligible point, and which has been serving such eligible point for at least 2 years preceding the date on which such application is filed, terminated in order to allow the applicant air carrier to provide essential air transportation to such eligible point for compensation under this subsection. The Board shall grant such application, after notice and a hearing if requested by an air carrier receiving compensation under this section, taking into consideration the objectives specified in subparagraphs (A) (i) and (ii) of paragraph (5) of this subsection, if the applicant can show that termination of the compensation being provided to the air carrier then serving such eligible point, and that the provisions of essential air transportation for compensation under this subsection by the applicant, will result in a substantial--,

"(i) improvement in the air transportation being provided such eligible point with no increase in the amount of compensation then being paid; or

"(ii) decrease in the amount of compensation that will be required to continue essential air transportation to that eligible point.

"(B) In disposing of each applicant filed under this paragraph, the Board shall, in addition to considering the objectives specified in subpragraphs (A) (i) and (ii) of paragraph (5), solicit and give great weight to the opinions of the communities affected by the proposed replacement of an air carrier under this subsection.

" LEVEL OF SAFETY

"(c) (1) For purposes of this subsection the term 'commuter air carrier' means an air carrier exempt from any requirement of this Act under section 416 (b) (3) of this title.

"(2) Notwithstanding section 416 (b) of this title, the Board shall not provide any compensation under this section to any commuter air carrier to provide service to any eligible point, and the Board shall prohibit any commuter air carrier from providing service to any eligible point, unless the Board determines that such commuter air carrier--,

"(A) is fit, willing, and able to perform such service; and

"(B) that all aircraft which will be used to perform such service and all operations relating to such service will conform to the

safety standards established by the Administrator under paragraph

(3) of this subsection.

"(3) Not later than the one-hundred-eightieth day after the date of enactment of this paragraph, the Administrator, by regulation, shall establish safety standards (A) for aircraft being used by commuter air carrier to provide any service described in paragraph (2) of this subsection, and (B) for all operations relating to such service. Such safety standards shall become effective not later than the last day of the eighteenth month which begins after such date of enactment and shall impose requirements upon such commuter air carrier to assure that the level of safety provided to persons traveling on such commuter air carriers is, to the maximum feasible extent, equivalent to the level of safety provided to persons traveling on air carriers which provide service pursuant to certificates issued under section 401 of this title. // 49 USC 1371. //

" GUIDELINES FOR COMPENSATION

"(d) The Board shall, by rule, establish guidelines to be used by the Board in computing the fair and reasonable amount of compensation required to insure the continuation of essential air transportation to any eligible point. Such guidelines shall include expense elements based upon representative costs of air carriers providing scheduled air transportation of persons, property, and mail, using aircraft of the type determined by the Board to be apporpriate for providing essential air transportation to the eligible point.

" INSURANCE

"(e) No air carrier shall receive any compensation under this section unless such air carrier complies with regulations or orders issued by the Board governing the filing and approval of policies of insurance or plans for self-insurance in the amount prescribed by the Board which are conditioned to pay, within the amount of such insurance, amounts for which such air carrier may become liable for bodily injuries to or the death of any person, or for loss of or damage to property of others, resulting from the operation or maintenance of aircraft.

" DEFINITION

"(f) For purposes of this section, the term 'essential air transportation

means scheduled air transportation of persons to a point provided under such criteria as the Board determines satisfies the needs of the community concerned for air transportation to one or more communities of interest and insures access to the Nation's air transportation system, at rates, fares, and charges which are not unjust, unreasonable, unjustly discriminatory, unduly preferential, or unduly prejudicial, and--,

"(1) with respect to air transportation to any point (other than in the State of Alaska), in no case shall essential air transportation be specified as fewer than two daily round trips, 5 days per week, or the level of service provided by air carriers to such point based on the schedules of such air carriers in effect for calendar year 1977, whichever is less; and

"(2) with respect to air transportation to any point in Alaska, essential air transportation shall not be specified at a level of service less than that which existed for such point during calendar year 1976, or two round trips per week, whichever is greater. unless otherwise specified under an agreement between the Board and the State agency of the State of Alaska, after consultation with the community affected.

" DURATION OF PROGRAM

"(g) This section shall cease to be in effect after the last day of the ten-year period which begins on the date of enactment of this section."

(b) That portion of the table of contents which appears under the center heading

" TITLE IV-- AIR CARRIER ECONOMIC REGULATION is amended by adding at the end thereof

" Sec. 419. Small community air service.

"(a) Guaranteed essential air transportation.

"(b) Other air service.

"(c) Level of safety.

"(d) Guidelines for compensation.

"(e) Insurance.

"(f) Definitions.

"(g) Duration of program.".

PRESIDENTIAL REVIEW OF INTERNATIONAL ROUTE CASES

Sec. 34. Section 801 (a) of the Federal Aviation Act of 1958 (49 U. S.C. 1461 (a) is amended to read as follows:

" THE PRESIDENT OF THE UNITED STATES

" Sec. 801. (a) The issuance, denial, transfer, amendment, cancellation, suspension, or revocation of, and the terms, conditions, and limitations contained in, any certificate authorizing an air carrier to engage in foreign air transportation, or any permit issuable to any foreign air carrier under section 402 of this Act, // 49 USC 1372. // shall be presented to the President for review. The President shall have the right to disapprove any such Board action concerning such certificates or permits soley upon the basis of foreign relations or national defense considerations which are within the President's jurisdiction, but not upon the basis of economic or carrier selection considerations. Any such disapproval shall be issued in a public document, setting forth the reasons for the disapproval to the extent national security permits, within sixty days after submission of the Board's action to the President. Any such Board action so disappoved shall be null and void. Any such Board action not disapproved within the foregoing time limits shall take effect as action of the Board, not the President, and as such shall be subject to judicial review as provided in section 1006 of this Act.". // 49 USC 1486. //

ASSESSMENT OF CIVIL PENALITIES

Sec. 35. (a) Paragraph (1) of subsection (a) of section 901 of the Federal Aviation Act of 1958 (49 U.S.C. 1471 (a) (1) is amended by inserting after the fourth sentence thereof the following new sentences: " The amount of any such civil penalty for any violation of any provision of title IV of this Act, // 49 USC 1371. // or any rule, regulation, or order issued thereunder, or under section 1002 (i) of this Act, // 49 USC 1482. // or any term, condition, or limtation of any permit or certificate issued under title IV shall be assessed by the Board only after notice and an opportunity for a hearing and after written notice upon a finding of violation by the Board. Judicial review of any order of the Board assessing such a penalty may be obtained only pursuant to section 1006 of the Act.".

(b) Paragraph (2) of subsection (a) of such section 901 is amended to read as follows:

"(2) Any civil penalty may be comromised by the Secretary of Transportation in the case of violations of title III, V, VI, or XII of this Act, // 49 USC 1341, 1401, 1421, 1441. // or any rule, regulation, or order issued thereunder, or by the National Transportation Safety Board in the case of violations of title VII of this Act, or any rule, regulation, or order issued thereunder, or by the Postmaster General in the case of regulations issued by him. The amount of such penalty when finally determined or fixed by order of the Board, or the amount agreed upon in compromise, may be deducted from any sums which the United States owes to the person charged.".

PROCEDURES FOR CIVIL PENALTIES

Sec. 36. (a) The first sentence of subsection (b)(1) of section 903 of the Federal Aviation Act of 1958 (49 U.S.C. 1473 (b)(1) is amended by inserting "or assessed" immediately after "imposed".

(b) The second sentence of subsection of subsection (b) (1) of such section 903 is amended by inserting "with respect to proceedings involving penalties other than those assessed by the Board," immediately after "except that".

RATES

Sec. 37. (a) Subsection (d) of section 1002 of the Federal Aviation Act of 1958 (49 U.S.C. 1482 (d) is amended--,

(1) in paragraph (1), by inserting "or (4)" immediately after "paragraph (2)"; and

(2) by adding at the end thereof the following new paragraphs:

"(4) The Board shall not have authority to find any fare for interstate or overseas air transportation of persons to be unjust or unreasonable on the basis that such fare is too low or too high if--,

"(A) with respect to any proposed increase filed with the Board on or after July 1,1979 (other than any proposed increase in any

fare filed by any air carrier if such proposed fae is for air transportation

between any pair of points and such air carrier provides air transportation to 70 per centum or more of the persons traveling in air transportation between such points on aircraft operated by air carriers with certificates issued under section 401 of this Act,

// 49 USC 1371. //

such proposed fare would not be more than 5 per centum higher than the standard industry fare level for the same or essentially similar class of service, except that, while no increase of any fare within the limits specified in this subparagraph may be suspended, an increase in such fare, above the standard industry fare level shall be found unlawful if that increase results in a fare which is unduly preferential, unduly prejudicial, or unjustly discriminatory; or

"(B) with respect to any proposed decrease filed after the date of enactment of this paragraph, the proposed fare would not be more than 50 per centum lower than the standard industry fare level for the same or essentially similar class of service, except that this provision shall not apply to any proposed decrease in any fare if the Board determines that such proposed fare would be predatory.

In determining whether any fare for air transportation of persons is unjust or unreasonable on the basis that it is too high, the Board shall take into consideration reasonably estimated or foreseeable future costs and revenues for a reasonably limited future period during which the fare at issue would be in effect.

"(5) In any Board proceeding under paragraph (1) of this subsection with respect to interstate or overseas air transportation of persons, the party opposing any fare or charge on the basis that it is too low shall have the burden of proving that the fare or charge is too low.

"(6) (A) For purposes of paragraph (4) of this section, 'standard industry fare level' means the fare level (as adjusted only in accordance with subparagraph (B) of this paragraph) in effect on July 1, 1977, for each interstate or overseas pair of points, for each class of service existing on that date, and in effect on the effective date of the establishment of each additional class of service established after July 1, 1977.

"(B) The Board shall, not less than semiannually, adjust each standard industry fare level specified in subparagraph (A) by increasing or decreasing such fare level, as the case may be, by the percentage change from the last previous period in the actual operating cost per available seat-mile for interstate and overseas transportation combined. In determining the standard, the Board shall make no adjustment to costs actually incurred.

"(C) Not later than July 1,1979, the Board shall issue rules modifying the rules governing those classes of service in existence on July 1, 1977, which classes provide lower fare levels during off-peak periods, so as to expand the period of availability of such classes. The Board shall allow any air carrier to establish additional classes of service in accordance with the objectives of subsection (e) (5) of this section or as may be otherwise consistent with the public interest.

"(7) The Board may by rule increase the percentage specified in paragraph (4) (B) of this subsection.

"(8) Whenever a complaint is filed with the Board by a civic party under this subsection alleging that any individual or joint fare or charge demanded, charged, collected, or recieved for interstate or overseas air transportation is or will be unjustly discriminatory, unduly preferential, unduly prefudicial, or predatory, the Board shall grant, deny, or dismiss such complaint within ninety days after such complaint is filed".

(b) Subsection (e) of such section 1002, // 49 USC 1482. // is amended to read as follows:

" RULE OF RATEMAKING

"(e) In exercising and performing its power and duties with respect to determining rates, fares, and charges described in paragraph (1) of subsection (d) of this section, the Board shall take into consideration, among other factors--

"(1) the criteria set forth in section 102 of this Act;

// 49 USC 1302. //

"(2) the need for adequate and efficient transportation of persons and property at the lowest cost consistent with the furnishing of such services;

"(3) the effect of prices upon the movement of traffic;

"(4) the desirability of a variety of price and service options such as peak and off-peak pricing or other pricing mechanisms to

improve economic efficiency and provide low-cost air service; and

"(5) the desirabilty of allowing an air carrier to determine prices in response to particular competitive market conditions on the basis of such air carrier's individual costs.".

(c) (1) Whenever the Board pursuant to its authority under section

1002 of the Federal Aviation Act of 1958 (49 U.S.C. 1482) // 49 USC 1482a // prescribes a uniform method generally applicable to the establishment of joint fares, and the divisions thereof, between air carriers holding certificates issued under section 401 of such Act // 49 USC 1371. // it shall make such uniform method applicable to the establishment of joint fares, and the divisions thereof, between such air carriers and commuter air carriers. Any commuter air carrier which has an agreement with any air carrier to provide service for persons and property which includes transportation over its routes and transportation by such air carrier in air transportation shall provide at least ninety days notice to such air carrier and to the board prior to modifying, suspending, or terminating such service, and if such commuter air carrier fails to provide such notice, any uniform method made applicable to the establishment of joint fares, and the divisions thereof, between air carriers and commuter air carriers in accordance with the preceding sentence shall not apply to such commuter air carrier.

(2) For purposes of this subsection--

(A) the terms "air carrier" and Board" have the meanings given such terms in the Federal Aviation Act of 1958;

// 49 USC 1301 //

and

(B) the term "commuter air carrier" means any air carrier operating pursuant to section 416 (b) (3) of the Federal Aviation Act of 1958 (49 U.S.C. 1386 (b) (3) who operates at least five round trips per week between one pair of points, pursuant to flight schedules.

(3) Paragraph (1) of this subsection shall apply to any uniform method described in such paragraph which the Board prescribes on or after December 27, 1974.

TIME REQUIREMENTS

Sec. 38. (a) Title X of the Federal Aviation Act of 1958 (49 U.S.C. 1481 et seq.) is amended by adding at the end thereof the following new section:

" TIME REQUIREMENTS

Sec. 1010. In the case of any application or other written document submitted to the Board under section 408, 409, 412, or 416 of this Act // 49 USC 1490. // on or after the one-hundred-eithtieth day after the date of enactment of this section, // 49 USC 1378, 1379, 1382. // the Board shall--

"(1) if the Board orders an evidentiary hearing, issue a final order or decision with respect to such written document,not later than the last day of the twelfth month which begins after the submission of such document, except in the case of an application submitted under section 408 of this Act, the Board shall issue its final order or decision not later than the last day of the sixth month after submission; or

"(2) if the Board does not order an evidentiary hearing, issue a final order or decision with respect to such document, not later than the last day of the sixth month which begins after the date of the submission of such document.". (b) That portion of the table of contents contained in the first section of such Act which appears under the center heading

" TITLE X--PROCEDURE"

is amended by adding at the end thereof

"sec. 1010. Time requirements.".

WITHHOLDING OF INFORMATION

Sec. 39. Section 1104 of the Federal Aviation Act of 1958 (49 U.S. C. 1504) is amended to read as follows:

" Sec. 1104. // 49 USC 1504. //

Any person may make written objection to the public disclosure of information contained in any application report, or document filed pursuant to provisions of this Act or of any information obtained by the Board, the Secretary of State, or the Secretary of Transportation pursuant to the provisions of this Act stating the grounds for such objection. Any information contained in such application, report, or document, or any such other information obtained by the Board, the Secretary of State, or the Secretary of Transportation, shall be withheld from public disclosure by the Board, the Secretary of State, or the Secretary of Transportation, as the case may be, if disclosure of such information would prejudice the formulation and presentation of positions of the United States in international negotiations and adversely affect the competitive positions of any air carrier in foreign air transportation. The Board, the Secretary of State, or the Secretary of Transportation, as the case may be, shall be responsible for classified information in accordance with appropriate law, except that nothing in this section shall authorize the withholding of information by the Board, the Secretary of State, or the Secretary of Transportation from the duly authorized committees of Congress.".

SUNSET PROVISIONS

Sec. 40. (a) The Federal Aviation Act of 1958 (49 U.S.C. 1301 et seq.) is amended by adding at the end thereof the following new title:

" TITLE XVI-- SUNSET PROVISIONS " TERMINATION OF CIVIL AERONAUTICS BOARD AND

TRANSFER OF

CERTAIN FUNCTIONS

" TERMINATION OF AUTHORITY

" Sec. 1601. (a) (1) The following provisions of this Act // 49 USC 1551. //

(to the extent such provisions relate to interstate and overseas air transportation of persons) and the authority of the Board with respect to such provisions (to the same extent) shall cease to be in effect on December 31, 1981:

"(A) Section 401 (d) (1), (2), and (3) of this Act (insofar as such sections require a determination of consistency with the public convenience and necessity and insofar as section 401 (d) (3) prohibits persons holding certificates under section 401 (d) (1) or (d) (2) from obtaining certificates to provide interstate or overseas charter air transportation of persons).

"(B) Section 401 (d) (8) of this Act.

"(C) Section 401 (e) (1) of this Act (insofar as such section permits the Board to specify terminal and intermediate points).

"(D) Section 401 (j) of this Act (except with respect to essential air transportation).

"(E) Section 401 (n) (1) and (4) of this Act. "(F) Section 404 (a) of this Act (insofar as such section requires any air carrier to provide air transportation authorized by its certificate).

"(G) Section 405 (b) of this Act // 49 USC 1375. // (insofar as such section requires filing of any statement or schedule by any air carrier).

"(2) The following provisions of this Act (to the extent such provisions relate to interstate and overseas air transportation of persons) and the authority of the Board with respect to such provisions (to the same extent) shall cease to be in effect on January 1, 1983:

"(A) Section 403 of this Act.

// 49 USC 1373. //

"(B) Section 404 of this Act

// 49 USC 1374. //

(except insofar as such section requires air carriers to provide safe and adequate service).

"(C) Section 407 (b) and (c) of this Act.

// 49 USC 1377. //

"(D) Section 1002 (d) (1) and (d) (2), (e), (g), (h), and (i) of this Act.

"(3) The authority of the Board under sections 408 and 409 of this Act // 49 USC 1378, 1379. // (relating to interstate and overseas air transportation) and the authority of the Board under section 414 of this Act // 49 USC 1384. // (relating to such sections 408 and 409) is transferred to the Department of Justice on January 1, 1983.

"(4) Title II of this Act // 49 USC 1321. //

shall cease to be in effect on January 1, 1985.

" TRANSFER OF CERTAIN AUTHORITY

"(b) (1) The following authority of the Board is transferred to the following Federal departments and instrumentalities:

"(A) The authority of the Board under sections 406 (b) (3) and (c) of this Act to provide compensation for air transportation to small communities and under section 419 of this Act is transferred to the Department of Transportation.

"(B) The authority of the Board under this Act with respect to foreign air transportation is transferred to the Department of Transportation which shall exercise such authority in consultation

with the Department of State.

"(C) The authority of the Board under sections 408 and 409 of this Act (relating to foreign air transportation), the authority of the Board under section 412 of this Act,

// 49 USC 1382. //

and the authority of the Board under section 414 of this Act (relating to such sections 408, 409, and 412) is transferred to the Department of Justice.

"(D) The authority of the Board under this Act with respect to the determination of the rates for the carriage of mails in interstate and overseas air transportation is transferred to the Postal Service and such authority shall be exercised through negotiations or comeitive bidding.

"(2) Any authority transferred under paragraph (1) of this subsection shall take effect on January 1, 1985.

" REPORT AND ASSESSMENT BY BOARD

"(c) Not later than January 1, 1984, the Board shall prepare and submit to the Congress a comprehensive review of the Board's implementation of the provisions of this Act during the preceding initial period of this Act's existence, and a comprehensive review of each of the Board's programs under this Act. Each such review shall be made available to the committee or committees of the Senate and House of Representatives having jurisdiction with respect to the annual authorization of funds for the Board and its programs for the fiscal year beginning October 1, 1983.

"(d) The comprehensive review of the Board's implementation of this Act, prepared for submission under subsection (c), shall include--,

"(1) a detailed comparison of the degree of competition within the airline industry as of the year preceding enactment of this section and the final year covered by the review;

"(2) a comparison of the degree of pricing competition in the industry during those two one-year periods;

"(3) a comparison of the extent of unused authority held by the industry during those two one-year periods, with details as to the number of nonstop route segments which have been transferred

from one carrier to another under section 401 (d) (5) of his Act;

"(4) an assessment of the degree to which agreements approved under section 412 of this Act have affirmatively or negatively affected the degree of competition within the industry;

"(5) a comparison of the extent of air transportation service provided to small communities during the two one-year periods specified above, together with details as to the comparative subsidy costs during these two periods;

"(6) an assessment of the degree, if any, to which the administrative process has been expedited under this Act;

"(7) an assessment of the impact of the foregoing changes upon the national air transportation system in terms of benefits or detriments to the traveling and shipping public, the Postal Service,

and the national defense, and the benefits and detriments to

air carriers, certificated and uncertificated; and

"(8) the Board's opinion as to whether the foregoing changes in combination, have improved or harmed this Nation's domestic air transportation system and the United States-flag foreign air transportation system.

This assessment shall be accompanied by a detailed opinion from the Board as to whether the public interest requires continuation of the Board and its functions beyond January 1, 1985, and, if it is the Board's conclusion that it should continue to exist, detailed recommendations as to how the provisions of this Act should be revised to insure continued improvements of the Nation's air transportation system beyond January 1, 1985. The Board's assessment under this subsection shall also be accompanied by a comparative analysis of procedures under section 801 of this Act // 49 USC 1461. // before and after the date of enactment of the Airline Deregulation Act of 1978, together with the Board's opinion as to the benefits of each set of procedures.

" ELEMENTS FOR EACH COMPREHENSIVE REVIEW

"(e) Each comprehensive review of the Board's programs under this Act, prepared for submission under subsection (c) of this section, shall include--,

"(1) an identification of the objectives intended for the program, and the problem or need which the program was intended to address;

"(2) an identification of any other programs having similar or potentially conflicting or duplicative objectives;

"(3) an assessment of alternative methods of achieving the purposes of the program;

"(4) a justification for the authorization of new budget authority, and an explanation of the manner in which it conforms to and integrates with other efforts;

"(5) an assessment of the degree to which the original objectives of the program have been achieved, expressed in terms of the performance, impact, or accomplishments of the program and of the problem or need which it was intended to address, and employing the procedures or methods of analysis appropriate to the type or character of the program;

"(6) a statement of the performance and accomplishments of the program in each of the previous four completed fiscal years and in the year of submission, and of the budgetary costs incurred in the operation of the program;

"(7) a statement of the number and types of beneficiaries or persons or entities by the program;

"(8) an assessment of the effect of the program on the national economy, including, but not limited to, the effects on competition, economic stability, employment, unemployment, productivity, energy consumption and conservation, and price inflation, including costs to consumers and to businesses;

"(9) an assessment of the impact of the program on the Nation's health and safety;

"(10) an assessment of the degree to which the overall administration of the program, as expressed in the rules, regulations, orders, standards, criteria, and decisions of the officers executing the program, are believed to meet the objectives of the Congress in enacting this Act;

"(11) a projection of the anticipated needs for accomplishing the objectives of the program, including an estimate if applicable of the date on which, and the conditions under which, the program may fulfill such objectives;

"(12) an analysis of the services which could be provided and performance which could be achieved if the program were contained at a level less than, equal to, or greater than the existing level; and

"(13) recommendations for necessary transitional requirements in the event that funding for such program is discontinued, including proposals for such executive or legislative action as may be necessary to prevent such discontinuation from being unduly disruptive.".

(b) That portion of the table of contents contained in the first section of such Act is amended by inserting at the end thereof

" TITLE XVI-- SUNSET PROVISIONS

" SEC. 1601. Termination of Civil Aeronautics Board and transfer of certain functions.

"(a) Termination of authority.

"(b) Transfer of certain authority.

"(c) Report and assessment by Board.

"(d) Elements for Board consideration.

"(e) Elements for each comprehensive review.".

AMENDMENTS TO THE AIRPORT AND AIRWAY DEVELOPMENT

ACT

OF 1970

SEC. 41. (a) Section 29 of the Airport and Airway Development Act of 1970 // 49 USC 1729. // is amended--,

(1) by striking out " Notwithstanding" and inserting in lieu thereof the following:

"(a) SERVICE BY INTRASTATE AIR CARRIER.-- Notwithstanding"; and

(2) by inserting at the end thereof the following new subsection:

"(b) SUSPENDED OR DELETED SERVICE.-- Notwithstanding any other provision of this title, any public airport which, on the date of enactment of the Airline Deregulation Act of 1978, is regularly served by an air carrier (other than a charter air carrier) certificated by the Civil Aeronautics Board under section 401 of the Federal Aviation Act of 1958 // 49 USC 1371 // shall be deemed to be an air carrier airport (other than a commuter service airport) for the purposes of this title. This subsection shall cease to be in effect after September 30, 1980.".

(b) Paragraph (1) of section 11 of the Airport and Airway Development Act of 1970 // 49 USC 1711. // is amended by striking out "(other than a supplemental air carrier)" and inserting in lieu thereof "(other than a charter air carrier)".

GOVERNMENT GUARANTEE OF EQUIPMENT LOANS

SEC. 42. (a) (1) The first sentence of the first section of the Act entitled " An Act to provide for Government guarantee of private loans of certain air carriers for purchase of modern aircraft and equipment, to foster the development and use of modern transport aircraft by such carriers, and for other purposes", approved September 7, 1957 (49 U.S. C. 1324 note) (hereinafter in this section referred to as the " Act"), is amended by inserting "and to promote the development of local, feeder, and short-haul charter air transportation of cargo" after "and short-haul air transportation".

(2) The second sentence of the first section of the Act is amended by inserting", charter air carriers, commuter air carriers, and intrastate air carriers" immediately after "air carriers".

(b) Section 2 of the Act // 49 USC 1324 // is amended to read as follows:

" SEC. 2. As used in this Act--,

"(1) 'aircraft purchase loan' means any loan, or commitment in connection therewith, made for the purchase of commercial transport aircraft, including spare parts normally associated therewith;

"(2) 'air carrier' means any air carrier holding a certificate of public convenience and necessity issued by the Civil Aeronautics Board under section 401 (d) (1) of the Federal Aviation Act of 1958 (49 U.S.C. 1371 (d) (1));

"(3) 'charter air carrier' has the meaning given such term in section 101 (14) of the Federal Aviation Act of 1958;

// 49 USC 1301 //

"(4) 'charter air transportation' has the meaning given such term in section 101 (15) of the Federal Aviation Act of 1958;

"(5) 'commuter air carrier' means any air carrier operating pursuant to section 416(b) (3) of the Federal Aviation Act of 1958 (49 U.S.C. 1386(b) (3) ) who operates at least five round trip flights per week between one pair of points in accordance with published flight schedules;

"(6) 'intrastate air carrier' means any citizen of the United States who undertakes, whether directly or indirectly or by a lease or any other arrangement, to engage primarily in intrastate air transportation (as such term is defined in section 101 (26) of the Federal Aviation Act of 1958);

// 49 USC 1301. // and

"(7) ' Secretary' means the Secretary of Transportation.".

(c) Section 3 of the Act // 49 USC 1324 // is amended to read as follows:

" SEC. 3. The Secretary is authorized to guarantee any lender against loss of principal or interest on any aircraft purchase loan made by such lender to--,

"(1) any air carrier whose certificate (A) authorizes such air carrier to provide local or feeder air service, (B) authorizes scheduled passenger operations the major portion of which are conducted within the State of Hawaii, (C) authorizes operations (the major portion of which is conducted either within Alaska or between Alaska and the forty-eight contiguous States), within the State of Alaska (including service between Alaska and the forty-eight contiguous States, and between Alaska and adjacent Canadian territory), or (D) authorizes metropolitan helicopter service,

"(2) any charter air carrier for the purchase of any all-cargo nonconvertible aircraft,

"(3) any commuter air carrier, or

"(4) any intrastate air carrier.

Such guarantee shall be made in such form, on such terms and conditions, and pursuant to such regulations, as the Secretary deems necessary and which are not inconsistent with the provisions of this Act.".

(d) Section 4 of the Act // 49 USC 1324 // is amended to read as follows:

" SEC. 4. (a) Subject to subsection (b) of this section, no guaranty shall be made--,

"(1) extending to more than the unpaid interest and 90 percent of the unpaid principal of any loan;

"(2) on any loan or combination of loans for more than 90 percent of the purchase price of the aircraft, including spare parts, to be purchased therewith;

"(3) on any loan whose terms permit full repayment more than 15 years after the date thereof;

"(4) wherein the total face amount of such loan, and of any other loans to the same air carrier, charter air carrier, commuter air carrier, or intrastate air carrier or corporate predecessor of such air carrier, charter air carrier, commuter air carrier, or intrastate air carrier guaranteed and outstanding under the terms of this Act exceeds $100,000,000;

"(5) unless the Secretary finds that, without such guaranty, in the amount thereof, the air carrier, charter air carrier, commuter air carrier, or intrastate air carrier would be unable to obtain necessary funds for the purchase of needed aircraft on reasonable terms;

"(6) unless the Secretary finds that the aircraft to be purchased with the guaranteed loan is needed to improve the service and efficiency of operation of the air carrier, charter air carrier, commuter air carrier, or intrastate air carrier;

"(7) unless the Secretary finds that the prospective earning power--,

"(A) of the applicant air carrier or charter air carrier, together with the character and value of the security

pledged,

furnish (i) reasonable assurances of the applicant's

ability to

repay the loan within the time fixed therefor, and (ii)

reasonable

protection to the United States; and

"(B) of the applicant commuter air carrier or intrastate

air

carrier, together with the character and value of the

security

pledged, furnish (i) reasonable assurances of the

applicant's

ability and intention to repay the loan within the time

fixed

therefor, to continue its operations as a commuter air

carrier

or intrastate air carrier, and to the extent found

necessary by

the Secretary, to continue its operations as a

commuter air

carrier or intrastate air carrier between the same

route or

routes being operated by such applicant at the time of

the loan

guarantee, and (ii) reasonable protection to the United

States; and

"(8) on any loan or combination of loans for the purchase of any new turbojet-powered aircraft which does not comply with the noise standards prescribed for new subsonic aircraft in regulations issued by the Secretary acting through the Administrator of the Federal Aviation Administration (14 CFR part 36), as such regulations were in effect on January 1, 1977.

"(b) No guaranty shall be made by the Secretary under subsection (a) of this section on any loan for the purchase of any all-cargo nonconvertible aircraft by any charter air carrier in an amount which, together with any other loans guaranteed and outstanding under this Act to such charter air carrier, or corporate predecessor of such charter air carrier, would result in the ratio of the total face amount of such loans to $100,000,000 exceeding the ratio of the amount of charter air transportation of such charter air carrier provided to medium, small, and non-hub airports during the twelve-month period preceding the date on which the application for such guaranty is made by such charter air carrier to the total amount of charter air transportation of such charter air carrier during such twelve-month period.".

(e) Section 8 of the Act // 49 USC 1324 // is amended to read as follows:

" SEC. 8. The authority of the Secretary under section 3 of this Act shall terminate five years after the date of enactment of this section.".

EMPLOYEE PROTECTION PROGRAM

SEC. 43. // 49 USC 1552. // (a). GENERAL RULE.--(1) The Secretary of Labor shall, subject to such amounts as are provided in appropriation Acts, make monthly assistance payments, or reimbursement payments, in amounts computed according to the provisions of this section, to each individual who the Secretary finds, upon application, to be an eligible protected employee. An eligible protected employee shall be a protected employee who on account of a qualifying dislocation (A) has been deprived of employment, or (B) has been adversely affected with respect to his compensation.

(2) No employee who is terminated for cause shall receive any assistance under this section.

(b) MONTHLY ASSISTANCE COMPUTATION.--(1) An eligible protected employee shall, subject to such amounts as are provided in appropriation Acts, receive a monthly assistance payment, for each month in which he is an eligible protected employee, in an amount computed by the Secretary. The Secretary, after consultation with the Secretary of Transportation, shall, by rule, promulgate guidelines to be used by him in determining the amount of each monthly assistance payment to be made to a member of each craft and class of protected employees, and what percentage of salary such payment shall constitute for each applicable class or craft of employees. In computing such amounts for any individual protected employee, the Secretary shall deduct from such amounts the full amount of any unemployment compensation received by the protected employee.

(2) If an eligible protected employee is offered reasonably comparable employment and such employee does not accept such employment, then such employee's monthly assistance payment under this section shall be reduced to an amount which such employee would have been entitled to receive if such employee had accepted such employment. If the acceptance of such comparable employment would require relocation, such employee may elect not to relocate and, in lieu of all other benefits provided herein, to receive the monthly assistance payments to which he would be entitled if this paragraph were not in effect, except that the total number of such payments shall be the lesser of three or the number remaining pursuant to the maximum provided in subsection (e).

(c) ASSISTANCE FOR RELOCATION.-- If an eligible protected employee relocates in order to obtain other employment, such employee shall, subject to such amounts as are provided in appropriation Acts, receive reasonable moving expenses (as determined by the Secretary) for himself and his immediate family. In addition, such employee shall, subject to such amounts as are provided in appropriation Acts, receive reimbursement payments for any loss resulting from selling his principal place of residence at a price below its fair market value (as determined by the Secretary) or any loss incurred in cancelling such employee's lease agreement or contract of purchase relating to his principal place of residence.

(d) DUTY TO HIRE PROTECTED EMPLOYEES.--(1) Each person who is a protected employee of an air carrier which is subject to regulation by the Civil Aeronautics Board who is furloughed or otherwise terminated by such an air carrier (other than for cause) prior to the last day of the 10-year period beginning on the date of enactment of this section shall have first right of hire, regardless of age, in his occupational specialty, by any other air carrier hiring additional employees which held a certificate issued under section 401 of the Federal Aviation Act of 1958 // 49 USC 1371. // prior to such date of enactment. Each such air carrier hiring additional employees shall have a duty to hire such a person before they hire any other person, except that such air carrier may recall any of its own furloughed employees before hiring such a person. Any employee who is furloughed or otherwise terminated (other than for cause), and who is hired by another air carrier under the provisions of this subsection, shall retain his rights of seniority and right of recall with the air carrier that furloughed or terminated him.

(2) The Secretary shall establish, maintain, and periodically publish a comprehensive list of jobs available with air carriers certificated under section 401 of the Federal Aviation Act of 1958. Such list shall include that information and detail, such as job descriptions and required skills, the Secretary deems relevant and necessary. In addition to publishing the list, the Secretary shall make every effort to assist an eligible protected employee in finding other employment. Any individual receiving monthly assistance payments, moving expenses, or reimbursement payments under this section shall, as a condition to receiving such expenses or payments, cooperate fully with the Secretary in seeking other employment. In order to carry out his responsibilities under this subsection, the Secretary may require each such air carrier to file with the Secretary the reports, data, and other information necessary to fulfill his duties under this subsection.

(3) In addition to making monthly assistance or reimbursement payments under this section, the Secretary shall encourage negotiations between air carriers and representatives of eligible protected employees with respect to rehiring practices and seniority.

(e) PERIOD OF MONTHLY ASSISTANCE PAYMENTS.--(1) Monthly assistance payments computed under subsection (b) for a protected employee who has been deprived of employment shall be made each month until the recipient obtains other employment, or until the end of the 72 months occurring immediately after the month such payments were first made to such recipient, whichever first occurs.

(2) Monthly assistance payments computed under subsection (b) for a protected employee who has been adversely affected relating to his compensation shall be paid for no longer than 72 months, so long as the total number of monthly assistance payments made under this section for any reason do not exceed 72.

(f) RULES AND REGULATIONS.--(1) The Secretary may issue, amend, and repeal such rules and regulations as may be necessary for the administration of this section.

(2) The rule containing the guidelines which is required to be promulgated pursuant to subsection (b) of this section and any other rules or regulations which the Secretary deems necessary to carry out this section shall be promulgated within six months after the date of enactment of this section.

(3) The Secretary shall not issue any rule or regulation as a final rule or regulation under this section until 30 legislative days after it has been submitted to the Committee on Commerce, Science, and Transportation of the Senate and the Committee on Public Works and Transportation of the House of Representatives. Any rule or regulation issued by the Secretary under this section as a final rule or regulation shall be submitted to the Congress and shall become effective 60 legislative days after the date of such submission, unless during that 60-day period either House adopts a resolution stating that that House disapproves such rules or regulations, except that such rules or regulations may become effective on the date, during such 60-day period, that a resolution has been adopted by both Houses stating that the Congress approves of them.

(4) For purposes of this subsection, the term "legislative day" means a calendar day on which both Houses of Congress are in session.

(g) AIRLINE EMPLOYEES PROTECTIVE ACCOUNT.-- All payments under this section shall be made by the Secretary from a separate account maintained in the Treasury of the United States to be known as the Airline Employees Protective Account. There are authorized to be appropriated to such account annually, beginning with the fiscal year ending September 30, 1979, such sums as are necessary to carry out the purposes of this section, including amounts necessary for the administrative expenses of the Secretary related to carrying out the provisions of this section.

(h) DEFINITIONS.-- For the purposes of this section--,

(1) The term "protected employee" means a person who, on the date of enactment of this section, has been employed for at least 4 years by an air carrier holding a certificate issued under section 401 of the Federal Aviation Act of 1958. Such term shall not include any members of the board of directors or officers of a corporation.

(2) The term "qualifying dislocation" means a bankruptcy or major contraction of an air carrier holding a certificate under section 401 of the Federal Aviation Act of 1958,

// 49 USC 1371. //

occurring during the first 10 complete calendar years occurring after the date of enactment of the Airline Deregulation Act of 1978, the major cause of which is the change in regulatory structure provided by the Airline Deregulation Act of 1978, as determined by the Civil Aeronautics Board.

(3) The term " Secretary" means the Secretary of Labor.

(4) The term "major contraction" means a reduction by at least 7 1/2 percent of the total number of full-time employees of an air carrier within a 12-month period. Any particular reduction of less than 7 1/2 percent may be found by the Board to be part of a major contraction of an air carrier if the Board determines that other reductions are likely to occur such that within a 12-month period in which such particular reduction occurs the total reduction will exceed 7 1/2 percent. In computing a 7 1/ 2-percent reduction under this paragraph, the Board shall not include employees who are deprived of employment because of a strike or who are terminated for cause.

(i) TRANSFER OF AUTHORITY OF THE BOARD.-- The authority of the Board under this section is transferred to the Department of Transportation on January 1, 1985.

(j) TERMINATION.-- The provisions of this section shall terminate on the last day the Secretary is required to make a payment under this section.

LABOR DISPUTE

SEC. 44. Within ten days after the date of enactment of this section the President, pursuant to section 10 of the Railway Labor Act, // 45 USC 160 // shall create a board to investigate and report on the dispute between Wier Air Alaska, Incorporated, and the Air Line Pilots Association. Such board shall report its findings to the President within thirty days from the date of its creation.

COLLECTION OF FEES, CHARGES, AND PRICES

SEC. 45. // 49 USC 1341 // Notwithstanding any other provisions of law, neither the Secretary of Transportation nor the Administrator of the Federal Aviation Administration shall collect any fee, charge, or price for any approval, test, authorization, certificate, permit, registration, conveyance, or rating relating to any aspect of aviation (1) which is in excess of the fee, charge, or price for such approval, test, authorization, certificate, permit, registration, conveyance, or rating which was in effect on January 1, 1973, or (2) which did not exist on January 1, 1973, until all such fees, charges, and prices are reviewed and approved by Congress.

CONTINUITY FOR CERTAIN CERTIFICATES

SEC. 46. // 49 USC 1301 // Any reference in any law, rule, regulation, or document of the United States to a supplemental air carrier or supplemental air transportation shall be deemed to be a reference to a charter air carrier or charter air transportation, respectively.

EXISTING DETERMINATIONS

SEC. 47. // 49 USC 1301 // All orders, determinations, rules, regulations, permits, contracts, certificates, rates, and privileges which have been issued, made, or granted, or allowed to become effective, by the President, the Civil Aeronautics Board, or the Postmaster General, or any court of competent jurisdiction, under any provision of law repealed or amended by this Act, or in the exercise of duties, powers, or functions, which are vested in the Board, and which are in effect at the time this Act takes effect, shall continue in effect according to their terms until modified, terminated, superseded, set aside, or repealed by the Board, or by any court of competent jurisdiction, or by operation of law.

Approved October 24, 1978.

LEGISLATIVE HISTORY:

(Comm. on Public Works and Transportation) and No. 95 - 1779

(Comm. of Conference).

SENATE REPORT No. 95 - 631 (Comm. on Commerce, Science, and Transportation).

CONGRESSIONAL RECORD, Vol. 124 (1978):

Apr. 19, considered and passed Senate.

Sept. 14, 21, H.R. 12611 considered and passed House; passage vacated and

S. 2493, amended, passed in lieu.

Oct. 14, Senate agreed to conference report.

Oct. 15, House agreed to conference report.

WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 14, No. 43:

Oct. 24, Presidential statement.

PUBLIC LAW 95-503, 92 STAT. 1704

95th CONGRESS, S. 2411 OCTOBER 24, 1978
AN ACT To amend chapter 315 of title 18, United States Code,

to authorize payment of

transportation expenses for persons released from

custody pending their

appearance to face criminal charges before that court,

any division of that

court, or any court of the United States in another

Federal judicial district.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That chapter 315 of title 18, United States Code, is amended by adding at the end thereof the following new section:

" Section. 4285. // 18 USC 4285. // Persons released pending further judicial proceedings

" Any judge or magistrate of the United States, when ordering a person released under chapter 207 // 18 USC 3141. // on a condition of his subsequent appearance before that court, any division of that court, or any court of the United States in another judicial district in which criminal proceedings are pending, may, when the interests of justice would be served thereby and the United States judge or magistrate is satisfied, after appropriate inquiry, that the defendant is financially unable to provide the necessary transportation to appear before the required court on his own, direct the United States marshal to arrange for that person's means of noncustodial transportation or furnish the fare for such transportation to the place where his appearance is required, and in addition may direct the United States marshal to furnish that person with an amount of money for subsistence expenses to his destination, not to exced the amount authorized as a per diem allowance for travel under section 5702(a) of title 5, United States Code. When so ordered, such expenses shall be paid by the marshal out of funds authorized by the Attorney General for such expenses.".

Sec.2. The section analysis of chapter 315 of title 18, United States Code, is amended by adding at the end thereof the following new item: "4285. Persons released pending further judicial proceedings.".

Sec. 3. The amendments made by this Act // 18 USC 4285. // shall take effect on October 1, 1978.

Approved October 24, 1978.

LEGISLATIVE HISTORY:

HOUSE REPORT No. 95 - 1653 (Comm. on the Judiciary).

SENATE REPORT No. 95 - 760 (Comm. on the Judiciary).

CONGRESSIONAL RECORD, Vol. 124 (1978):

Apr. 27, considered and passed Senate.

Oct. 10, considered and passed House.

PUBLIC LAW 95-502, 92 STAT. 1693

95th CONGRESS, H.R. 8533 October 21, 1978
An Act To amend the Internal Revenue Code of 1954 to provide

that income from the

conducting of certain bingo games by certain tax-exempt

organizations will

not be subject to tax, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

TITLE I--REPLACEMENT OF LOCKS AND DAM 26; UPPER

MISSISSIPPI RIVER SYSTEM COMPREHENSIVE MASTER

MANAGEMENT PLAN

Sec. 101. // 42 USC 1962b-3 //

(a) The Upper Mississippi River Basin Commission (referred to in this section as the " Commission") shall prepare a comprehensive master plan for the management of the Upper Mississippi River System in cooperation with the appropriate Federal, State, and local officials. The Commission shall publish a preliminary plan not later than January 1, 1981. The Commission shall hold public hearings on the preliminary plan in each State which would be affected by the plan, shall review all comments presented at such hearings or submitted in writing to the Commission, and, after making any revisions in the plan it decides are necessary, submit to Congress a final master plan not later than January 1, 1982. All decisions of the Commission related to the master plan shall be made by a two-thirds majority vote of the Commission.

(b) The Commission shall provide for public participation in the development, revision, and implementation of said plan and shall encourage and assist such participation. The Commission shall, within 150 days after the date of enactment of this Act, publish guidelines in the Federal Register for public participation in the development, revision, and implementation of the plan. The final master plan shall not be implemented without the express approval of the plan by an Act of Congress enacted after the date of enactment of this Act. After such approval, no change may be made in the master plan except as may be provided by an Act of Congress enacted after the date of enactment of the Act approving the master plan. No person shall engage in any activity which violates any provision of the plan or which is inconsistent (as determined under regulations promulgated by the Commission) with the plan.

(c) The Commission, in developing the plan, shall identify the various economic, recreational, and evironmental objectives of the Upper Mississippi River System, recommend guidelines to achieve such objectives, and propose methods to assure compliance with such guidelines and coordination of future management decisions affecting the Upper Mississippi River System, and include with the proposed master plan any legislative proposals which may be necessary to carry out such recommendations and achieve such objectives.

(d) For the purposes of developing the plan, the Commission shall conduct such studies as it deems necessary to carry out its responsibilities under this section, utilizing, to the fullest extent possible, the resources and results of the Upper Mississippi River resources management (GREAT) study conducted pursuant to section 117 of the Water Resources Development Act of 1976 (Public Law 94 - 587) // 90 Stat. 2924. // and of other ongoing or past studies. The Commission may request appropriate Federal, State, or local agencies to prepare such studies. Any Federal agency to which such a request is submitted may conduct any such study for the purpose of this section.

(e) Studies conducted pursuant to this section shall include, but not be limited to, the following:

(1) The Secretary of the Interior and the Secretary of the Army, working through the Commission, shall undertake a study to determine the carrying capacity of the Upper Mississippi River System, and the long- and short-term systematic ecological impacts of (A) present and any projected expansion of navigation capacity on the fish and wildife, water quality, wilderness, and public recreational opportunities of said rivers, (B) present operation and maintenance programs, (C) the means and measures that should be adopted to prevent or minimize loss of or damage to fish and wildlife, and (D) a specific analysis of the immediate and systematic environmental effects of any second lock at Alton, Illinois, and provide for the mitigation of any adverse impact on, and the enhancement of, such resources.

(2) The Commission shall undertake studies to determine--,

(A) the relationship of any expansion of navigational capacity on the Upper Mississippi River System to

national

transportation policy,

(B) the direct and indirect effects of any expansion of navigational capacity on the Nation's railroads and on

shippers

dependent upon rail service, and

(C) transportation costs and benefits to the Nation to be derived from any expansion of navigational capacity on

said

River System.

The Commission is directed to immediately initiate a specific evaluation of the economic need for a second lock at Alton, Illinois, and the direct and indirect systematic effects and needs for such a second lock at Alton, Illinois.

(3) The Commission shall undertake a program of studies, including a demonstration program to evaluate the benefits and costs of disposing of dredge spoil material in contained areas located out of the floodplain. The program shall include, but shall not be limited to, the evaluation of possible uses in the marketplace for the dredge spoil studies and demonstration programs to minimize the environmental effects of channel operation and maintenance activities.

(4) The development by the Commission of a computerized analytical inventory and system analysis for the Upper Mississippi River System to facilitate evaluation of the comparative environmental effects of alternative management proposals.

(f) Any Secretary responsible for conducting a study under subsection (e) of this section, and other studies conducted under this section, shall produce one or more draft reports containing study conclusions and appropriate appendix materials and shall present the reports to the Commission for approval and inclusion in the master plan process.

(g) To carry out the provisions of this section, there are authorized to be approprated to the Commission through the United States Water Resources Council, $12,000,000. The Commission is authorized to transfer funds to such Federal, State, or local government agencies as it deems necessary to carry out the studies and analysis authorized by this section.

(h) For purposes of this section, the Upper Mississippi River System consists of those river reaches containing commercial navigation channels on the Mississippi River main stem north of Cairo, Illinois, the Minnesota River, Minnesota; Black River, Wisconsin; Saint Croix River, Minnesota and Wisconsin; Illinois River and Waterway, Illinois; and Kaskaskia River, Illinois.

(i) No replacement, construction, or rehabilitation that expands the navigation capacity of locks, dams, and channels shall be undertaken by the Secretary of the Army to increase the navigation capacity of the Upper Mississippi River System, until the master plan prepared pursuant to this section has been approved by the Congress except as provided in section 102 and except for necessary operating and maintenance activities.

(j) The lock and dam authorized pursuant to section 102 shall be designed and constructed to provide for possible future expansion. All other construction activities initiated by the Secretary of the Army on the Upper Mississippi River north of Cairo, Illinois, and on the Illinois River north of Grafton, Illinois, shall be initiated only in accordance with the guidelines set forth in the master plan.

Sec. 102. (a) The Secretary of the Army, acting through the Chief of Engineers, is authorized to replace locks and dam 26, Mississippi River, Alton, Illinois, and Missouri, by constructing a new dam and a single, one-hundred-and-ten-foot by one-thousand-two-hundred-foot lock at a location approximately two miles downstream from the existing dam, substantially in accordance with the recommendations of the Chief of Engineers in his report on such project dated July 31, 1976, at an estimated cost of $421,000,000.

(b) The Secretary of the Army, acting through the Chief of Engineers, is authorized to replace, at Federal expense as a part of project costs authorized in subsection (a) terrestrial wildlife habitat inundated as a result of the construction of the project on an acre-for-acre basis in the respective States of Missouri and Illinois and to manage such lands as are thus acquired by the Secretary for wildlife protection purposes. The Secretary is further authorized to provide project-related recreation development on or in the vicinity of Ellis Island, Missouri, that requires no separable project lands and includes facilities such as roads, parking lots, walks, picnic areas, a boat launching ramp, and a beach, at an estimated cost of $4,000,000 to be cost shared with the State of Missouri and administered in accordance with the provisions of the Federal Water Project Recreation Act // 16 USC 460l-12 // and under-taken independently of the navigation feature of the project.

(c) The project depth of the channel above Cairo, Illinois, on the Mississippi River shall not exceed 9 feet, and neither the Secretary of the Army nor any other Federal official shall study the feasibility of deepening the navigation channels in the Minnesota River, Minnesota; Black River, Wisconsin; Saint Croix River, Minnesota and Wisconsin; the Mississippi River north of Cairo, Illinois; the Kaskaskia River, Illinois; and the Illinois River and Waterway, Illinois, unless specifically authorized by an Act of Congress enacted after the date of enactment of this Act.

TITLE II-- INLAND WATERWAYS REVENUE ACT OF 1978

Sec. 201. Short title.

Sec. 202. Imposition of tax.

Sec. 203. Establishment of Inland Waterways Trust Fund.

Sec. 204. Trust Fund available for expenditures for navigation construction and rehabilitation projects on inland waterways.

Sec. 205. Study with respect to inland waterway user taxes and charges.

Sec. 206. Inland and intracoastal waterways of the United States.

SEC. 201. // 26 USC 4042 //

SHORT TITLE.

This title may be cited as the " Inland Waterways Revenue Act of 1978".

SEC. 202. IMPOSITION OF TAX.

(a) In General.--Chapter 31 of the Internal Revenue Code of 1954 // 26 USC 4041. //

(relating to special fuels) is amended by adding at the end thereof the following new section:

" SEC. 4042. // 26 USC 4042. //

TAX ON FUEL USED IN COMMERCIAL TRANSPORTATION ON INLAND WATERWAYS.

"(a) In General.--There is hereby imposed a tax on any liquid used during any calendar quarter by any person as a fuel in a vessel in commercial waterway transportation.

"(b) Amount of Tax.--The tax imposed by subsection (a) shall be determined from the following table:

" If the use occurs--, The tax is--,

" After September 30, 1980 and before October 1, 1981------4 cents a gallon

" After September 30, 1981 and before October 1, 1983-------6 cents a gallon

" After September 30, 1983 and before October 1, 1985------8 cents a gallon

" After September 30, 1985---------------------------------10 cents a gallon

"(c) EXEMPTIONS.--,

"(1) Deep-Draft Ocean Going Vessels.--The tax imposed by subsection (a) shall not apply with respect to any vessel designed primarily for use on high seas which has a draft of more than 12 feet.

"(2) Passenger Vessels.--The tax imposed by subsection (a) shall not apply with respect to any vessel used primarily for the transportation of persons.

"(3) USE BY STATE OR LOCAL GOVERNMENT IN TRANSPORTING PROPERTY IN A STATE OR LOCAL BUSINESS.-- Subparagraph (B) of subsection (d) (1) shall not apply with respect to use by a State or political subdivision thereof.

"(4) Use IN MOVING LASH AND SEABEE OCEAN- GOING BARGES.--, The tax imposed by subsection (a) shall not apply with respect to use for movement by tug of exclusively LASH (Lighter-aboard-ship) and SEABEE ocean-going barges released by their ocean-going carriers solely to pick up or deliver international cargoes.

"(d) DEFINITIONS.-- For purposes of this section--,

"(1) Commercial Waterway Transportation.--The term 'commercial waterway transportation' means any use of a vessel on any inland or intracoastal waterway of the United States--,

"(A) in the business of transporting property for

compensation

or hire, or

"(B) in transporting property in the business of the

owner,

lessee, or operator of the vessel (other than fish or

other

aquatic animal life caught on the voyage).

"(2) INLAND OR INTRACOASTAL WATERWAY OF THE UNITED STATES.-- The term 'inland or intracoastal waterway of the United States' means any inland or intracoastal waterway of the United States which is described in section 206 of the Inland Waterways Revenue Act of 1978.

"(3) PERSON.-- The term 'person' includes the United States, a State, a political subdivision of a State, or any agency or instrumentality of any of the foregoing.

"(e) DATE FOR FILING RETURN.-- The date for filing the return of the tax imposed by this section for any calendar quarter shall be the last day of the first month following such quarter.".

(b) TECHNICAL AMENDMENT.-- Section 4293 of such Code // 26 USC 4293 //

(relating to exemption for United States and possessions) is amended by striking out "chapters 31 and 32" and inserting in lieu thereof "section 4041, chapter 32". // 26 USC 4041. //

(c) CLERICAL AMENDMENT.-- The table of sections for chapter 31 of such Code is amended by adding at the end thereof the following new item:

" Sec. 4042. Tax on fuel used in commercial

transportation on inland

waterways.".

(d) EFFECTIVE DATE.-- The amendments made by this section // 26 USC 4042 //

shall take effect on October 1, 1980.

Sec. 203.

// 33 USC 1801. //

ESTABLISHMENT OF INLAND WATERWAYS TRUST FUND.

(a) Creation Of Trust Fund.--There is established in Treasury of the United States a trust fund to be known as the " Inland Waterways Trust Fund" (hereinafter in this title referred to as the " Trust Fund"), consisting of such amounts as may be appropriated or credited to the Trust Fund as provided in this section.

(b) TRANSFER TO TRUST FUND OF AMOUNTS EQUIVALENT TO CERTAIN TAXES.--,

(1) In General.--There are hereby appropriated to the Trust Fund amounts determined by the Secretary of Treasury (hereinafter in this section referred to as the " Secretary") to be equivalent to the amounts of the taxes received in the Treasury under section 4042 of the Internal Revenue Code of 1954 (relating to tax on fuel used in commercial transportation on inland waterways).

(2) METHOD OF TRANFER.-- The amounts appropriated by paragraph (1) shall be transferred at least quarterly from the general fund of Treasury to the Trust Fund on the basis of estimates

made by the Secretary of the amounts referred to in paragraph

(1) received in the Treasury. Proper adjustments shall be made in the amounts subsequently transferred to the extent prior estimates were in excess of or less than the amounts required to be transferred.

(c) MANAGEMENT OF TRUST FUND.--,

(1) REPORT.--' It shall be the duty of the Secretary to hold the Trust Fund, and to report to the Congress each year ending on or after September 30, 1981, on the financial condition and the results of the operations of the Trust Fund during the preceding fiscal year and on its expected condition and operations during the fiscal year and the next 5 fiscal years after the fiscal year. Such report shall be printed as a House document of the session of the Congress to which the report is made.

(2) INVESTMENT.--

(A) IN GENERAL.--, It shall be the duty of the

Secretary to

invest such portion of the Trust Fund as is not, in

his judgement,

required to meet current withdrawals. Such investments

may be made only in interest-bearing obligations of the

United States. For such purpose, such obligations

may be

acquired (i) on original issue at the issue price, or

(ii) by purchase

of outstanding obligations at the market price.

(B) SALE OF OBLIGATIONS.-- Any obligation acquired by

the

Trust Fund may be sold by the Secretary at the

market price.

(C) INTEREST; PROCEEDS FROM SALES AND REDEMPTIONS.--

The interest on, and the proceeds from the sale or

redemption

of, any obligations held in the Trust Fund shall be

credited

to and form a part of the Trust Fund.

Sec. 204.

// 33 USC 1802. //

TRUST FUND AVAILABLE FOR EXPENDITURES FOR NAVIGATION CONSTRUCTION AND REHABILITATION PROJECTS ON INLAND WATERWAYS.

(a) IN GENERAL.-- Amounts in the Trust Fund shall be available, as provided by appropriations Acts, for making construction and rehabilitation expenditures for navigation on the inland and intracoastal waterways of the United States described in section 206 of this Act. No amount may be appropriated out of the Trust Fund unless the law authorizing the expenditure for which the amount is appropriated explicitly provides that the appropriation is to be made out of the Trust Fund.

(b) EXPENDITURES MUST BE OTHERWISE AUTHORIZED BY LAW.-- Nothing in this section shall be deemed to authorize any program, project, or other activity not otherwise authorized by law.

Sec. 204.

// 33 USC 1803. //

STUDY WITH RESPECT TO INLAND WATERWAY USER TAXES AND CHARGES.

(a) STUDY DIRECTED.-- The Secretary of Transportation and the Secretary of Commerce, in consultation with the Secretary of the Treasury, the Secretary of Agriculture, the Secretary of Energy, the Attorney General of the United States, the Secretary of the Army, the Chairman of the Water Resources Council, and the Director of the Office of Management and Budget, shall--

(1) make a full and complete study with respect to inland waterway user taxes and charges, and

(2) make findings and policy recommendations with respect thereto.

Such study shall include (but shall not be limited to) a consideration of the matters listed in subsections (b), (c), (d), (e), and (f) of this section.

(b) CONSIDERATIONS RELATING TO THE TAXING MECHANISM.--

(1) The extent to which the Federal Government should seek to recover some or all of Federal expenditures for the benefit of inland waterway transportation from the users of the facilities for which such expenditures are made.

(2) The various forms of inland waterway user taxes and charges which could be established.

(3) The various methods of collecting inland waterway user taxes and charges, and the administrative costs of such taxes and charges.

(4) The classes and categories of users and other persons on whom inland waterway user taxes and charges should be imposed.

(5) The waterways of the United States (including the Great Lakes, deep draft channels, and coastal ports) which should be included in any system of user taxes and charges, together with the ecconomic effects of such taxes and charges.

(6) The use of revenues derived from inland waterway user taxes and charges, including consideration of changes in, or alternatives to, the Trust Fund mechanism.

(c) CONSIDERATIONS RELATING TO ECONOMIC EFFECTS.-- The economic effects of waterway user taxes and charges on--,

(1) CARRIERS AND USERS.-- On--,

(A) carriers and shippers using the inland waterways, and (B) users (including ultimate consumers) of commodities which are transported on the inland waterways.

(2) REGIONS, ETC.-- On--,

(A) existing investment in industrial plants, agricultural interests, and commercial enterprises, and on related

employment,

in regions of the country served by inland water

transportation

directly or in combination with other modes, and

(B) future economic growth prospects in such regions, including anticipated shifts of industry and employment

to

other areas together with an evaluation of effects on

regional

economies and their development, including consistency

with

Federal policies as set forth in other legislation.

(3) SMALL BUSINESS AND INDUSTRIAL CONCENTRATION AND COMPETITION.-- On--,

(A) small business enterprise, and (B) industrial concentration and competition, both within the transportation industry and in any line of commerce (within the meaning of the antitrust laws).

(4) COMPETITORS.-- On the freight rates charged by other modes of transportation and the extent of short-term and long-term diversion of traffic from the inland waterways to such other modes. In considering such diversion of traffic, there shall also be considered the effects of such diversion on--,

(A) the development of alternative sources of supply and on alternative modes of transportation and alternative

routing

to market,

(B) the comparative safety of the handling and

transportation

of hazardous materials, and

(C) the comparative energy efficiency of the modes and routes of the transportation involved.

(5) PRICES.-- On prices of commodities shipped by inland waterways and by competing modes, including the costs of energy materials and the effects on electric power rates.

(6) BALANCE OF PAYMENTS.-- On the balance of payments of the United States based on our international trade.

(d) CONSIDERATIONS RELATING TO ECONOMIC FEASIBILITY OF WATERWAY IMPROVEMENT PROJECTS; LEVEL OF BENEFITS FROM WATERWAY EXPENDITURES.--,

(1) The effects of inland waterway user taxes and charges on the economic feasibility of inland waterway improvement projects.

(2) The comparative levels of benefits received from Federal expenditures on inland waterways for--,

(A) commercial uses, and (B) other uses, including (but not limited to) recreation, reclamation, water supply, low-flow augmentation, fish

and

wildlife enhancement, hydroelectric power, flood control,

and irrigation uses.

(e) CONSIDERATIONS RELATING TO FEDERAL ASSISTANCE.--,

(1) The extent of past, present, and expected future Federal assistance to the several modes of freight transportation. Such consideration shall include an evaluation and comparison of the public benefits resulting from such assistance to each of the several transportation modes in terms of adequacy, efficiency, and economy of service, safety, technological progress, and energy conservation. The Federal assistance considered under this paragraph shall include all forms of such assistance, such as tax advantages, direct grants, rate adjustments for improvement purposes, assumption of pension fund liabilities, loans, guarantees, capital participation, revenues from land grants, and provision of right-of-way operation, maintenance, and improvement.

(2) The competitive effects of past, present, and expected future Federal expenditures on inland waterways on competitive modes of transportation.

(3) The need for Federal assistance to agricultural, industrial, and other interests affected by inland waterway user taxes and charges.

(f) CONSIDERATIONS RELATING TO POLICY AND FUTURE DEVELOPMENT.--, The effects of inland waterway user taxes and charges on--,

(1) The achievement of the objectives of the National Transportation Policy as set forth in the preamble to the Transportation Act of 1940.

// 49 USC prec. 1. //

(2) The expansion and improvement of the inland waterways determined to be necessary by the Secretary of the Army under section 158 of the Water Resources Development Act of 1976 (Public Law 94 - 587)

// 33 USC 540 //

or estimated to be necessary under paragraph (3).

(3) The requirements of the Nation through the year 2000 for transportation service, the portion thereof which should be provided by inland waterway carriers, and an estimate of the expansion and improvement of inland waterway capacity necessary to meet such requirements.

(g) INLAND WATERWAY USER TAXES AND CHARGES DEFINED.-- For purposes of this section, the term "inland waterway user taxes and charges" means taxes imposed on the use of the inland and intracoastal waterways of the United States and all alternatives to such taxes.

(h) REPORT.-- Not later than September 30, 1981, the Secretary of Transportation shall transmit to Congress a final report of the study required by this section, together with his findings and recommendations (including necessary legislation) and the findings and recommendations of the Secretary of Commerce, the Secretary of the Treasury, the Secretary of Agriculture, the Secretary of Energy, the Attorney General of the United States, the Secretary of the Army, the Chairman of the Water Resources Council, and the Director of the Office of Management and Budget.

(i) AUTHORIZATION OF APPROPRIATIONS.-- There are hereby authorized to be appropriated from time to time to the Secretary of Transportation such sums, not to exceed $8,000,000 in the aggregate, as may be necessary to carry out the study required by this section.

SEC. 206. // 33 USC 1804. //

INLAND AND INTRACOASTAL WATERWAYS OF THE UNITED STATES.

For purposes of section 4042 of the Internal Revenue Code of 1954 (relating to tax on fuel used in commercial transportation on inland waterways) and for purposes of section 204 of this Act, the following inland and intracoastal waterways of the United States are described in this section:

(1) Alabama-Coosa Rivers: From junction with the Tombigbee River at river mile (hereinafter referred to as RM) 0 to junction with Coosa River at RM 314.

(2) Allegheny River: From confluence with the Monongahela River to form the Ohio River at RM 0 to the head of the existing project at East Brady, Pennsylvania, RM 72.

(3) Apalachicola-Chattahoochee and Flint Rivers: Apalachicola River from mouth at Apalachicola Bay (intersection with the Gulf Intracoastal Waterway) RM 0 to junction with Chattachoochee and Flint Rivers at RM 107.8. Chattachoochee River from junction with Apalachicola and Flint Rivers at RM 0 to Columbus, Georgia, at RM 155 and Flint River, from junction with Apalachicola and Chattahoochee Rivers at RM 0 to Bainbridge, Georgia, at RM 28.

(4) Arkansas River (Mc Clellan-Kerr Arkansas River Navigation System): From junction with Mississippi River at RM 0 to port of Catoosa, Oklahoma, at RM 448.2.

(5) Atchafalaya River: From RM 0 at its intersection with the Gulf Intracoastal Waterway at Morgan City, Louisiana, upstream to junction with Red River at RM 116.8.

(6) Atlantic Intracoastal Waterway: Two inland water routes approximately paralleling the Atlantic coast between Norfolk, Virginia, and Miami, Florida, for 1,192 miles via both the Albermarle and Chesapeake Canal and Great Dismal Swamp Canal routes.

(7) Black Warrior-Tombigbee-Mobile Rivers: Black Warrior River System from RM 2.9, Mobile River (at Chickasaw Creek) to confluence with Tombigbee River at RM 45. Tombigbee River (to Demopolis at RM 215.4) to port of Birmingham, RM'S 374 - 411 and upstream to head of navigation on Mulberry Fork (RM 429.6), Locust Fork (RM 407.8), and Sipsey Fork (RM 430.4).

(8) Columbia River (Columbia-Snake Rivers Inland Waterways): From The Dallas at RM 191.5 to Pasco, Washington (Mc Nary Pool), at RM 330, Snake River from RM 0 at the mouth to RM 231.5 at Johnson Bar Landing, Idaho. (9) Cumberland River: Junction with Ohio River at RM 0 to head of navigation, upstream to Carthage, Tennessee, at RM 313.5.

(10) Green and Barren Rivers: Green River from junction with the Ohio River at RM 0 to head of navigation at RM 149.1.

(11) Gulf Intracoastal Waterway: From St. Mark's River, Florida, to Brownsville, Texas, 1,134.5 miles.

(12) Illinois Waterway (Calumet-Sag Channel): From the junction of the Illinois River with the Mississippi River RM 0 to Chicago Harbor at Lake Michigan, approximately RM 350.

(13) Kanawha River: From junction with Ohio River at RM 0 to RM 90.6 at Deepwater, West Virginia.

(14) Kaskaskia River: From junction with the Mississippi River at RM 0 to RM 36.2 at Fayetteville, Illinois.

(15) Kentucky River: From junction with Ohio River at RM 0 to confluence of Middle and North Forks at RM 258.6.

(16) Lower Mississippi River: From Baton Rouge, Louisiana, RM 233.9 to Cairo, Illinois, RM 953.8.

(17) Upper Mississippi River: From Cairo, Illinois, RM 953.8 to Minneapolis, Minnesota, RM 1,811.4.

(18) Missouri River: From junction with Mississippi River at RM 0 to Sioux City, Iowa, at RM 734.8.

(19) Monongahela River: From junction with Allegheny River to form the Ohio River at RM 0 to junction of the Tygart and West Fork Rivers, Fairmont, West Virginia, at RM 128.7.

(20) Ohio River: From junction with the Mississippi River at RM 0 to junction of the Allegheny and Monongahela Rivers at Pittsburgh, Pennsylvania, at RM 981.

(21) Ouachita-Black Rivers: From the mouth of the Black River at its junction with the Red River at RM 0 to RM 351 at Camden, Arkansas.

(22) Pearl River: From junction of West Pearl River with the Rigolets at RM 0 to Bogalusa, Louisiana, RM 58.

(23) Red River: From RM 0 to the mouth of Cypress Bayou at RM 236.

(24) Tennessee River: From junction with Ohio River at RM 0 to confluence with Holstein and French Rivers at RM 652.

(25) White River: From RM 9.8 to RM 255 at Newport, Arkansas.

(26) Willamette River: From RM 21 upstream of Portland, oregon, to Harrisburg, Oregon, at RM 194.

TITLE III-- PROCEEDS FROM BINGO GAMES

Sec. 301. // 26 USC 513. //

(a) Section 513 of the Internal Revenue Code of 1954 (defining unrelated trade of business) is amended by adding at the end thereof the following new subsection:

"(f) Certain Bingo Games.--,

In General.--The term 'unrelated trade or business' does not include any trade or business which consists of conducting bingo games.

"(2) Bingo game defined.--For purposes of paragraph (1), the term 'bingo game' means any game of bingo--,

"(A) of a type in which usually--,

"(i) the wagers are placed, "(ii) the winners are determined, and "(iii) the distribution of prizes or other property is made, in the presence of all persons placing wagers in such

game,

"(B) the conducting of which is not an activity ordinarily carried out on a commercial basis, and "(C) the conducting of which does not violate any State

or

local law."

(b) The amendment made by subsection (a) // 26 USC 513. //

shall apply to taxable years beginning after December 31, 1969.

Sec. 302. (a) Paragraph (3) of section 527(c) of the Internal Revenue Code of 1954 // 26 USC 527 (defining exempt function income) is amended by striking out "or" at the end of subparagraph (B), by adding "or" at the end of subparagraph (C), and by inserting after subparagraph (C) the following new subparagraph:

"(D) proceeds from the conducting of any bingo game (as defined in section 513(f)(2)),".

(b) (1) The amendment made by subsection (a) // 26 USC 527. //

shall apply to taxable years beginning after December 31, 1974, except that notwithstanding any other provision of law to the contrary, no amounts held at the date of enactment of this bill by an organization described in section 527(e)(1) of the Internal Revenue Code of 1954 // 26 USC 527. // in escrow, in separate accounts for the payment of Federal taxes, or in any other fund which are proceeds desribed in section 527(c)(3)(D) of such Code may be used, directly or indirectly, to make a contribution or expenditure (as defined in section 301(e) and (f) of the Federal Election Campaign Act of 1971; 2 U.S.C. 431(f)) in connection with any election held before January 1, 1979.

(2) Such amounts as described in (1) above shall not be considered as security or collateral for any loan by any State or national bank or any other person or organization.

Approved October 21, 1978.

LEGISLATIVE HISTORY:

HOUSE REPORT No. 95 - 1608 (Comm. on Ways and Means).

CONGRESSIONAL RECORD, Vol. 124 (1978):

Sept. 25, considered and passed House.

Oct. 10, considered and passed Senate, amended.

Oct. 13, House concurred in Senate amendment.

WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 14, No. 43:

Oct. 21, Presidential statement.

PUBLIC LAW 95-501, 92 STAT. 1685, AGRICULTURAL TRADE ACT OF 1978

95th CONGRESS, S. 3447 October 21, 1978
An Act To strengthen the economy of the United States through

increased sales abroad

of United States agricultural commodities.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as the " Agricultural Trade Act of 1978". // 7 USC 1761 //

TITLE I--INTERMEDIATE CREDIT

Sec. 101. Section 4 of the Food for Peace Act of 1966 // 7 USC 1707a. // is amended to read as follows:

" Sec. 4. (a) Commercial export sales of agricultural commodities out of private stocks on credit terms of not to exceed three years may be financed by the Commodity Credit Corporation under its export credit sales program.

"(b)(1) Export sales of agricultural commodities out of Commodity Credit Corporation and private stocks on credit terms in excess of three years, but not more than ten years, may be financed by the Commodity Credit Corporation.

"(2) No export sale may be financed under this subsection unless the Secretary of Agriculture determines that the sale will--,

"(A) develop, expand, or maintain the importing nation as a foreign market, on a long-term basis, for the commercial sale and export of United States agricultural commodities without displacing normal commercial sales; or

"(B) otherwise improve the capability of the importing nation to purchase and use, on a long-term basis, United States agricultural commodities.

"(3) Consistent with the provisions of paragraph (2) of this subsection, intermediate credit financing under this subsection may be made available for the following uses:

"(A) to establish reserve stocks consistent with international commodity agreements or other stock building plans acceptable to the United States;

"(B) the export sale of breeding animals (including, but not limited to, cattle, swine, sheep, and poultry), including the cost of freight from the United States to designated points of entry in other nations;

"(C) where determined feasible, for the establishment of facilities in the importing nation to improve handling, marketing, processing, storage, or distribution of imported agricultural commodities (through the use of local currency generated form the import and sale of United States agricultural commodities to finance all or part of such facilities); and

"(D) to meet credit competition for agricultural export sales.

"(4) Intermediate credit financing under this subsection may not be used to encourage credit competition, or for the purpose of foreign aid or debt rescheduling.

"(5) The terms of credit for export sales financed under this subsection shall include the following terms:

"(A) Repayment shall be in dollars with interest at a rate equal, as nearly as practicable, to the rate charged by the Commodity Credit Corporation for financing under the Corporation's short-term export credit sales program.

"(B) The Secretary may, if the Secretary deems such action appropriate to protect the interests of the United States, require an initial payment from the purchaser at the time of sale or shipment of the agricultural commodity.

"(6) The Secretary shall, wherever feasible, obtain commitments from purchasers that will prevent resale or transshipment to other nations of agricultural commodities purchased with financing provided under this subsection.

"(7)(A) Agreements to finance export sales of agricultural commodities entered into under this subsection, except agreements to finance export sales for the establishment of reserve stocks, shall be subject to such other terms and conditions as the Secretary may deem necessary or appropriate and shall be subject only to review by the National Advisory Council on International Monetary and Financial Policies.

"(B) Agreements to finance export sales of agricultural commodities under this subsection for the establishment of reserve stocks shall be subject to such other terms and conditions as the Secretary may deem necessary and appropriate. No such agreement may become effective or be carried out until the expiration of thirty days following the date on which a detailed summary of such proposed agreement, together with a determination by the President that such financing is not adverse to the interests of United States producers of agricultural commodities, is transmitted by the Secretary to the Committee on Agriculture, Nutrition, and Forestry of the Senate and the Committee on Agriculture of the House of Representatives, if transmitted while Congress is in session, or sixty days following the date of transmittal if transmitted while Congress is not in session.

"(8) The provisions of the cargo preference laws shall not apply to export sales financed under this subsection.

"(9) The authority provided under this subsection shall be in addition to, and not in place of, any authority granted to the Secretary or the Commodity Credit Corporation under any other provision of law.

"(c) The term 'agricultural commodity' as used in this section includes any agricultural commodity or product thereof.".

TITLE II-- COMMODITY CREDIT CORPORATION FINANCING OF DEFERRED PAYMENT SALES; CREDIT SALES

TO THE PEOPLE'S REPUBLIC OF CHINA

COMMODITY CREDIT CORPORATION FINANCING OF DEFERRED

PAYMENT SALES

Sec. 201. // 7 USC 1707b. // (a) To develop new market opportunities for the sale of United States agricultural commodities and to maintain and expand existing foreign markets for such commodities, the Secretary of Agriculture may provide Commodity Credit Corporation financing to exporters of such commodities who wish to provide deferred payment terms to buyers in other nations in order to meet sales competition from other nations or to make additional export sales. Except as otherwise provided in section 202 of this title, financing under this section shall be available only with respect to sales to those nations that are eligible for financing under the short-term export credit sales program conducted by the Commodity Credit Corporation.

(b) Exporters who are willing to sell United States agricultural commodities to foreign buyers on deferred payment terms of not to exceed three years and who must provide such deferred payment terms in order to meet sales competition from other nations, or to make additional export sales, may apply to the Commodity Credit Corporation for financing such sales. Financing under this section shall not be provided by the Corporation until the applicant's export sales plan has been approved by the Corporation and the applicant has established to the satisfaction of the Corporation that exports have been made in accordance with the approved plan.

(c) Repayment to the Commodity Credit Corporation shall be made in dollars by the exporter in accordance with the terms and at interest rates contained in the approved export sales plan. Interest rates on such financing shall be no higher than those charged for financing under the short-term export credit sales program conducted by the Corporation.

(d) The Secretary may, if the Secretary deems such action appropriate to protect the interests of the United States, require a performance guarantee from the exporter at the time of the sale.

(e) Financing agreements with exporters entered into under this section shall be subject to such other terms and conditions as the Secretary may deem necessary or appropriate and shall be subject only to review by the National Advisory Council on International Monetary and Financial Policies.

(f) The authority provided under this section shall be in addition to, and not in place of, any authority granted to the Secretary or the Commodity Credit Corporation under any other provision of law.

CREDIT SALES TO THE PEOPLE'S REPUBLIC OF CHINA

Sec. 202. // 7 USC 1707c. //

Notwithstanding any other provision of law, in order to expand and develop markets for United States agricultural commodities, the Commodity Credit Corporation may provide financing for commercial sales of agricultural commodities out of private stocks on terms of not to exceed three years to the People's Republic of China under (1) the short-term export credit sales program conducted by the Corporation, and (2) the deferred payment sales program for exporters established under section 201 of this title.

DEFINITION

Sec. 203. The term "agricultural commodity" as used in this title // 7 USC 1707d. // includes any agricultural commodity or product thereof.

TITLE III-- AGRICULTURAL COUNSELORS

Sec. 301. Title VI of the Act of August 28, 1954 (68 Stat. 908 - 910, as amended; 7 U.S.C. 1761 - 1768), is amended by--,

(1) amending the title designation to read as follows:

" TITLE VI-- FOREIGN MARKET DEVELOPMENT";

(2) inserting immediately before section 601 the subtitle designation as follows:

" Subtitle A--General Provisions; Agricultural

Counselors and

Agricultural Attaches";

(3) in section 601,

// 7 USC 1761. //

striking out "agricultural products" wherever

that phrase appears therein and inserting in lieu thereof "agricultural commodities", and striking out "said products" and inserting in lieu thereof "such commodities";

(4) in sections 602(a), 602(e), 604, and 605,

// 7 USC 1762, 1764, 1765. //

striking "this title" wherever that phrase appears therein and inserting in lieu thereof "this subtitle";

(5) amending section 602(b) to read as follows:

"(b) Officers or employees assigned or appointed to posts abroad under this subtitle shall have the designation of Agricultural Counselor, Agricultural Attache, or such other titles or designations that shall be agreed to by the Secretary of State and the Secretary of Agriculture, and shall be accorded the same rank and privileges as those of other counselors or attaches in United States embassies. An Agricultural Counselor shall be appointed in any nation--,

"(1) to which a substantial number of governments with which the United States competes directly for agricultural markets in such nation assign agricultural representatives with the diplomatic status of counselor or its equivalent; or

"(2) in which--,

"(A) the potential is great for long-term expansion of a market for United States agricultural commodities, and (B) competition with other nations for existing and potential agricultural markets is extremely intense.

Not less than ten Agricultural Counselors shall be appointed within three years after the date of enactment of the Agricultural Trade Act of 1978."; and

(6) adding at the end of section 604

// 7 USC 1764. //

a new subsection (c) as follows:

"(c) Upon the request of the Secretary of Agriculture, each Federal agency may make its services, personnel, and facilities available to officers and employees appointed and assigned to post abroad under this subtitle in the performance of the functions of such officers and employees. The Secretary of Agriculture may reimburse or advance funds to any such agency for services, personnel, and facilities so made available.".

TITLE IV-- ESTABLISHMENT OF UNITED STATES AGRICULTURAL TRADE OFFICES

Sec. 401. Title VI of the Act of August 28, 1954, as amended by title III of this Act, is further amended by--,

(1) adding immediately after section 605 a new subtitle B as follows:

" Subtitle B--United States Agricultural Trade

Offices

" Sec. 605 A. (a) For the purpose of developing, maintaining, and expanding international markets for United States agricultural commodities, the Secretary of Agriculture, after consultation with the Secretary of State, shall establish not less than six nor more than twenty-five United States Agricultural Trade Offices in other nations.

"(b) each United States Agricultural Trade Office shall be directed and administered by an Agricultural Trade Officer who by reason of training, experience, and attainments is qualified to carry out the purposes of this subtitle. Such Officer shall be appointed by the Secretary of Agriculture.

"(c) each Agricultural Trade Officer may be appointed without regard to the provisions of title 5 of the United States Code governing appointments in the competitive service, and may be paid without regard to the provisions of chapter 51 and subchapter III of chapter 53 of title 5 relating to classification and General Schedule pay rates, except that no Agricultural Trade Officer (1) may be paid basic pay at a rate in excess of the maximum annual rate of basic pay payable for GS--17 of the General Schedule under section 5332 of such title, or (2) may be paid at a rate in excess of the highest rate paid to an Agricultural Counselor or Attache, as the case may be, who is appointed under subtitle A of this title to the nation in which such Officer is to serve.

"(d) Each Agricultural Trade Officer shall, through the Agricultural Counselor or Attache or other senior representative of the Secretary of Agriculture in each nation in which the United States Agricultural Trade Office adminstered by such Officer exercises its functions, keep the Chief of the United States diplomatic mission fully and currently informed with respect to all activities and operations of such Office.

"(e) Each Agricultural Trade Officer shall be responsible for the exercise of the functions of the United States Agricultural Trade Office, and shall have the authority to direct and supervise all personnel and activities thereof.

"(f) To carry out the functions of United States Agricultural Trade Offices, the Secretary of Agriculture may appoint such other personnel as the Secretary determines to be necessary and may, with the concurrence of the Secretary of State, assign such personnel abroad and employ local nationals for necessary professional and clerical help.

"(g) No employee of any United States Agricultural Trade Office may engage in any business, vocation, or other employment, have other interests, that are inconsistent with official responsibilities.

"(h) Upon the request of the Secretary of Agriculture, the Secretary of State shall request for Agricultural Trade Officers and personnel of United States Agricultural Trade Offices diplomatic privileges and immunities equivalent to those enjoyed by Foreign Service personnel of comparable rank and salary.

" Sec.605 B. The functions of each United States Agricultural Trade Office shall be to--,

"(1) increase the effectiveness of agricultural export promotion efforts through consolidation of activities, providing services and facilities for foreign buyers and United States trade representatives, and coordination of market development activities sponsored by the Department of Agriculture;

"(2) establish goals by nation or region and agricultural commodity for developing, expanding, and maintaining markets for United States agricultural commodities;

"(3) initiate programs to achieve the export marketing goals approved by the Department of Agriculture;

"(4) maintain facilities for use by nonresident cooperators, private trade groups, and other individuals engaged in the import and export of United States agricultural commodities where the use of such facilities would aid in the conduct of market development activities, and cooperate, to the maximum extent practicable, with such cooperators, groups, and individuals to expand the level of United States agricultural exports;

"(5) develop and maintain a current listing of trade, government, and other appropriate organizations for each agricultural commodity area and make such listing available to persons with a bona fide interest in exporting or importing United States agricultural commodities;

"(6) originate and provide assistance for exhibits, sales teams, and other functions for the promotion of United States agricultural commodities;

"(7) provide practical assistance for the use of the programs under the Agricultural Trade Development and Assistance Act of 1954,

// 7 USC 1691 //

the export credit sales program, the export incentives program, and related programs of the United States Government where use of such programs will serve as a market development tool for United States agriculture;

"(8) supervise project agreements with United States cooperators,

coordinate the activities of the United States Agricultural Trade Office with those of the cooperators, and submit annual recommendations to the Secretary of Agriculture on the efficacy of cooperator programs;

"(9) publicize the services offered by the United States Agricultural Trade Office through advertisements in trade journals or by other appropriate means; and

"(10) perform such other functions as the Secretary of Agriculture, in consultation with the Secretary of State, determines to be necessary and proper for achieving the purposes of this subtitle.

" Sec. 605 C. // 7 USC 1765c. //

Each United States Agricultural Trade Office shall carry out its functions under section 605 B in the nation where the United States Agricultural Trade Office is located and in such other nations as the Secretary of Agriculture, in consultation with the Secretary of State, may prescribe in order to carry out the purposes of this subtitle.

// 7 USC 1765d. //

" Sec. 605 D Upon the request of the Secretary of Agriculture, the Secretary of State may use the authorities contained in the Foreign Service Buildings Act, 1926, to acquire sites and buildings, including living quarters, for the purpose of establishing United States Agricultural Trade Offices.

" Sec. 605 E. United States Agricultural Trade Offices shall be centrally located in the cities of assignment to facilitate foreign trade meetings and foreign trade reliance on such offices for assistance in marketing activities.

" Sec. 605 F. // 7 USC 1765f. //

Upon the request of the Secretary of Agriculture, each Federal agency may make its services, personnel, and facilities available to a United States Agricultural Trade Office in the performance of its functions. The Secretary of Agriculture may reimburse or advance funds to any such agency for services, personnel, and facilities so made available.

" Sec. 605 G. The provisions of section 604 (a) of this title shall apply with respect to personnel appointed and assigned under this subtitle.";

(2) redesignating section 606 as section 606 A and inserting immediately after new section 605 G, as added by this section, the subtitle designation and new section 606 as follows:

" Subtitle C--Representation Allowances, Regulations,

General Provisions,

and Authorization for Appropriations

" Sec. 606. // 7 USC 1765h. //

Any Agricultural Trade Officer and the senior representative of the Secretary of Agriculture assigned to a nation under subtitle A of this may, under regulations prescribed by the Secretary of Agriculture, be entitled to receive a representation allowance in an amount determined by considering (1) the extent to which such Agricultural Trade Officer or senior representative can effectively use such funds to further the purposes of this title, (2) travel and entertainment expenses customary in the private trade for persons of comparable rank and salary, and (3) customs and practices in the nation where such Agricultural Trade Officer or senior representative is assigned.";

(3) redesignating sections 602(d),602(f), and 603 as sections 606 B,606 C,

// 7 USC 1762, 1763, 1766a, 1766b, 1766c. //

respectively, and inserting the redesignated sections immediately after section 606 A, as redesignated by paragraph (2) of this section;

(4) insection 606 C, as redesignated by paragraph (3) of this

section, striking out "subsection" wherever that word appears

therein and inserting in lieu thereof "section";

(5) redesignating section 602(e) as 602(d);

// 7 USC 1762. //

and

(6) adding at the end thereof a new section 609 as follows:

" Sec.609. The term 'agricultural commodity' as used in this title // 7 USC 1769. // includes any agricultural commodity or product thereof.".

TITLE V--REORGANIZATION

Sec.501. // 7 USC 2211a. //

(a) There is hereby established in the Department of Agriculture the position of Under Secretary of Agriculture for International Affairs and Commodity Programs to be appointed by the President, by and with the advice and consent of the Senate. The Under Secretary of Agriculture for International Affairs and Commodity Programs is authorized to exercise such functions and perform such duties related to foreign agriculture and agricultural stabilization and conservation, and shall perform such other duties, as may be required by law or precribed by the Secretary of Agriculture.

(b) Section 5314 of title 5 of the United States Code is amended by adding at the end thereof a new paragraph (69) as follows:

"(69) Under Secretary of Agriculture for International Affairs and Commodity Programs.".

(c) The designation of " Assistant Secretary of Agriculture for International Affairs and Commodity Programs" shall not be used after the date of enactment of this Act.

TITLE VI-- GENERAL PROVISIONS AND REPORTS IMPLEMENTATION OF THIS ACT; REGULATIONS

Sec. 601. (a) The Secretary of Agriculture shall implement the provisions of this Act as expeditiously as possible consistent with the efficient and effective administration of the programs established under this Act and their integration with related foreign agricultural programs.

(b) The Secretary may issue such regulations as may be necessary to carry out the provisions of this Act.

ANNUAL REPORT ON EXPORT PROMOTION

SEC.602. The Secretary of Agriculture shall submit to Congress each year a report providing a comprehensive statement of the activities and accomplishments of the Department of Agriculture, including specifically those of the United States Agricultural Trade Offices, in developing, maintaining, and expanding foreign markets for United States agricultural commodities.

INTERAGENCY TASK FORCE ON EXPORT SALES REPORTING

SEC.603. The Secretary of Agriculture shall appoint an interagency task force within the Department of Agriculture for the purpose of analyzing the effectiveness of the export sales reporting provisions of section 812 of the Agricultural Act of 1970. // 7 USC 612c-3. // The Secretary shall submit, not later than January 3,1979, a report of the findings of the task force, including legislative recommendations for improving such reporting provisions, to the Committee on Agriculture, Nutrition, and Forestry of the Senate and the Committee on Agriculture of the House of Representatives.

REPORT ON TITLE IV OF THE TRADE ACT OF 1974

SEC. 604. Within six months after the date of enactment of this Act, // 19 USC 2431 // the Secretary of Agriculture shall submit to Congress a report detailing the effect on United States agriculture of title IV of the Trade Act of 1974, // 19 USC 2431 // including a recommendation as to whether the provisions of such title should be repealed or amended.

Approved October 21, 1978.

LEGISLATIVE HISTORY:

HOUSE REPORTS: No. 95 - 1338, pt. I (Comm. on Agriculture) and No. 95 - 1338, pt II (Comm. on International Relations) both parts accompanying H.R. 10584; and 95 - 1755 (Comm. of Conference).

SENATE REPORTS: No. 95 - 1142 (Comm. on Agriculture, Nutrition, and Forestry) and No. 95 - 1315 (Comm. of Conference).

CONGRESSIONAL RECORD, Vol. 124 (1978):

Sept. 8, considered and passed Senate.

Sept. 25, H.R. 10584 considered and passed House; passage vacated and S. 3447, amended, passed in lieu.

Oct. 11, Senate agreed to conference report.

Oct. 15, House agreed to conference report.

WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, VOL. 14, No. 43:

Oct. 21, Presidential statement.

PUBLIC LAW 95-500, 92 STAT. 1683

95th CONGRESS, H.R. 8755 October 21, 1978
AN ACT To make specific provisions for ball or roller bearing

pillow block, flange, take-up,

cartridge, and hanger units in the Tariff Schedules

of the United States, and

for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That (a) subpart J of part 4 of schedule 6 of the Tariff Schedules of the United States (19 U.S.C. 1202) is amended--,

(1) by striking out "pulleys, pillow blocks, and shaft couplings;" in the superior heading to items 680.45 through 680.54 and inserting in lieu thereof "pulleys and shaft couplings; pillow blocks; flange, take-up cartridge, and hanger units;"

(2) by redesignating items 680.52 and 680.54 as items 680.55 and 680.56, respectively; and

(3) by striking out item 680.50 and inserting in lieu thereof the following new items:

" 680.50 Pulleys and shaft couplings, and parts thereof...9.5% ad val. 45% ad val.

Pillow blocks and parts thereof:

680.51 Ball or roller bearing type...................9.5% ad val. 45% ad val. 680.52 Other types...................................9.5% ad val. 45% ad val.

Flange, take-up, cartridge, and hanger units, and parts thereof:

680.53 Ball or roller bearing type...................9.5% ad val. 45% ad val. 680.54 Other types...................................9.5% ad val. 45% ad val."

(b) The amendments made by subsection (a) // 19 USC 1202 //

shall apply with respect to articles entered, or withdrawn from warehouse, for consumption on or after the date of the enactment of this Act.

Sec.2. (a) Subpart B of part 1 of the Appendix to the Tariff Schedules of the United States (19 U.S.C. 1202) // 19 USC 1202 // is amended by inserting in numerical sequence the following new items: "912.06 Yankee Dryer Cylinders (provided for in

item 668.06, part 4 D, schedule 6)................ Free No

On or change before

12/31/81".

(b) The amendment made by subsection (a) // 19 USC 1202 //

shall apply with respect to articles entered, or withdrawn from warehouse, for consumption on or after the date of the enactment of this Act.

Sec. 3. (a) Subpart A of part 6 of Schedule 7 of the Tariff Schedules of the United States (19 U.S.C. 1202) is amended by inserting immediately after item 740.10 the following new item: "740.20 Necklaces, valued not over 30 cents per dozen,

composed wholly of plastic

shapes mounted on fiber string............................ Free Free".

(b) The amendment made by subsection (a) // 19 USC 1202 //

shall apply with respect to articles entered, or withdrawn from warehouse, for consumption on or after the date of enactment of this Act.

Approved October 21, 1978.

LEGISLATIVE HISTORY:

HOUSE REPORT No. 95 - 1356 (Comm. on Ways and Means).

SENATE REPORT No. 95 - 1241 (Comm. on Finance).

CONGRESSIONAL RECORD, Vol. 124 (1978):

Sept. 18, considered and passed House.

Sept. 30, considered and passed Senate, amended.

Oct. 10, House concurred in Senate amendments.

Public Law 95-499, 92 Stat. 1679.

95th Congress, S. 2358 October 21, 1978
An Act To declare that the United States holds in trust for

the Pueblo of Zia certain

public domain lands.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That all right, title, and interest of the United States in the following lands situated within Sandoval County in the State of New Mexico are hereby declared to be held by the United States in trust for the benefit and use of the Pueblo of Zia:

New Mexico Principal Meridian Towship 14 North, Range 1 East

Section 3:

Lots 2, 3, 4,

Southwest quarter northeast quarter,

West half southeast quarter,

Southwest quarter,

Southeast quarter southeast quarter,

South half northwest quarter,

Township 15 North, Range 1 East

Section 10: Lot 4,

Section 11: South half south half,

Section 13:

Southeast quarter,

West half,

Section 14: All,

Section 15:

Lots 1, 2, 3, 4,

Southwest quarter,

West half southeast quarter,

Section 22: All,

Section 23:

West half northeast quarter,

Northeast quarter northeast quarter.

Southeast quarter,

West half,

Section 24: North half north half,

Section 26: North half northwest quarter,

Section 27: All,

Section 34:

Southwest quarter,

Northwest quarter,

Northeast quarter,

Containing 4,848.13 acres, more or less.

Sec. 2. The Secretary of the Interior shall publish in the Federal Register the boundaries and descriptions of the lands declared to be held in trust by this Act.

Sec. 3. All of the right, title, and interest of the United States in all minerals, including gas and oil, underlying the lands hereby declared to be held in trust for the Pueblo of Zia, are hereby declared to be held by the United States in trust for the benefit and use of the Pueblo of Zia.

Sec. 4. (a) Nothing in this Act shall deprive any person of any valid existing right of use, possession, contract right, interest, or title which that person may have in any of the trust lands within the purview of this Act, or of any existing right of access to public domain lands over and across such trust lands, as determined by the Secretary of the Interior. All existing mineral leases involving lands declared to be held in trust by this Act, including oil and gas leases, which may have been issued or approved pursuant to Federal law, prior to enactment of this Act, shall remain in force and effect in accordance with the provisions thereof. Notwithstanding any other provision of law, all applications for mineral leases involving such lands, including oil and gas leases, pending on the date of enactment of this Act shall be rejected and the advance rental payments returned to the applicants.

(b) Subject to the provisions of subsection (a) of this section, the property declared to be held in trust by this Act for the benefit and use of the Pueblo of Zia shall hereafter be administered in accordance with the laws and regulations applicable to other property held in trust by the United States for the Indian tribe of such pueblo.

Sec. 5. All gross receipts (including, but not limited to, bonuses, rents, and royalties) hereafter derived by the United States from any contract, permit, or lease which relates to the property declared to be in trust by this Act received subsequent to the enactment of this Act shall be administered in accordance with the laws and regulations applicable to receipts from property held in trust by the United States for Indian tribes.

Sec. 6. All property declared to be held in trust for the benefit and use of the Pueblo of Zia pursuant to this Act, and all the receipts therefrom referred to in section 5 of this Act, shall be exempt from Federal, State, and local taxation so long as such property is held in trust by the United States. Any distribution of such receipts to tribal members shall neither be considered as income or resource of such members for purposes of any such taxation nor as income or resources or otherwise utilized as the basis for denying or reducing the financial assistance or other benefits to which such member or his household would otherwise be entitled to under the Social Security Act or any other Federal or federally assisted program.

Sec. 7. (a) The Secretary may execute any title documents necessary to effect conveyances authorized by this Act.

(b) Title to all lands acquired under the provisions of this Act shall be taken in the name of the United States in trust for the Pueblo of Zia.

Sec. 8. The transfer and conveyance of title shall be subject ot the following roadway right-of-way to be for the use and benefits of adjacent private landowners, the Bureau of Land Management, its permittees, lessees, successors, and assigns:

(1) Acess road through Zia Allotment: A road right-of-way 50 feet wide over that portion in southeast quarter section 13, north half section 24, southeast quarter section 23, north half section 2l, and north half section 27, all in township in north, range 1 east, New Mexico principal meridian.

Beginning at intersection of State Road 44, thence southwesterly 1,600 feet to a point of curve, thence westerly 2,100 feet to a point of curve, thence southerly 1,100 feet to a point of curve, thence southwesterly 2,400 feet to a point of curve, thence southerly 2,640 feet of a point of curve, thence southerly 8,500 feet to a point of curve near the west section line of section 27, road being 3.5 miles long (approx.). Distances to a curve are scaled distances (approx.) from U.S.G.S. Quandrangle Sheet, Sky Village N.E. Quadrangle, and San Ysidro Quadrangle.

The description was compiled from U.S.G.S. Quadrangle maps dated November 1960, and this is only a paper survey.

(2) Gypsum Mine Access Road: a road right-of-way 50 feet wide, over that portion in southeast quarter of section 13, northeast quarter section 24, west half section 13, and northeast quarter section 14, all in township 15 north, range 1 east, New Mexico principal meridian.

Beginning at the intersection of Gypsum mine access road and access road through lands known as Zia Allotment being 500 feet southwesterly from State Road 44, thence northwesterly 6,500 feet near the east line of section 14. Distances to the termination of road are scaled distances (approx.) from U.S.G.S. Quadrangle Sheet, San Ysidro Quadrangle.

This description was compiled from U.S.G.S. Quadrangle map dated November 1960, and this is only a paper survey.

Sec. 9. (a) Notwithstanding any other provision of this Act, during the 3 years following enactment of this Act, the Secretary may, ater giving the tribe 30 days written notice and after consulting with the tribe, enter on the lands described in the first section of this Act to identify, investigate, examine, and remove any paleontological resources from such lands: Provided, That no explorations, surveys, or excavations shall be authorized within 200-yard radius of the following shrines or religious sites:

(1) Tiam (Eagle Peak, Eagle Rock, Eagle Point);

(2) Hu-nah-'kah-Warish (Cherry Spring);

(3) Pah-Pah (Grandma);

(4) Ku-Mah-Yah-Wish (Mudhead);

(5) Punaya;

(6) Grash-Yeh-Tey-Sham (White Points).

Such resources so removed are the property of the United States and shall be administered under laws applicable to federally owned resources. Paleontological resources on such lands that are not removed from the lands pursuant to this section shall be managed in a manner that will permit the greatest possible public benefits, use, and study of the resources, consistent with tribal law and practices.

(b) Any lands excavated pursuant to this section shall be reclaimed and restored to their original condition by the Secretary, as nearly as he determines may be practicable.

Approved October 21, 1978.

LEGISLATIVE HISTORY:

HOUSE REPORT No. 95 - 1220, accompanying H.R. 10240 (Comm. on Interior and Insular Affairs).

SENATE REPORT No. 95 - 1131 (Select Comm. on Indian Affairs).

CONGRESSIONAL RECORD, Vol. 124 (1978):

Sept. 6, considered and passed Senate.

Oct. 3, H.R. 10240 considered and passed House; passage vacated, and S. 2358, amended, passed in lieu.

Oct.7, Senate concurred in House amendments.

PUBLIC LAW 95-498, 92 STAT. 1672

95th CONGRESS, S. 2588 October 21, 1978
An Act To declare that the United States holds in trust for

the Pueblo of Santa Ana

certain public domain lands.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That all right, title, and interest of the United States in the following lands situated within Sandoval County in the State of New Mexico are hereby declared to be held by the United States in trust for the benefit and use of the Pueblo of Santa Ana:

New Mexico Principal Meridian Township 13 North, Range 3 East

Section 1:

Lots 1, 8, 9, 10,

South half north half,

South half,

Section 3:

Lots 9, 10, 11, 12,

South half north half,

South half,

Section 4:

Lots 9, 10, 11, 12,

South half north half,

South half,

Section 5: All of that portion lying east of the west boundary of the right-of-way of New Mexico Highway 44,

Section 9:

East half west half,

East half,

Section 10: All,

Section 11: All,

Section 12: All,

Section 13: All,

Section 14: All,

Section 15: North half northwest quarter, southeast quarter northwest quarter, noreast quarter southwest quarter northwest quarter, north half northwest quarter southwest quarter northwest quarter, southeast quarter northwest quarter southwest quarter northwest quarter, north half northwest quarter southeast quarter southwest quarter northwest quarter, northeast quarter southeast quarter southwest quarter northwest quarter, northeast quarter, north half northeast quarter northwest quarter northeast quarter southwest quarter, north half northeast quarter northeast quarter southwest quarter, north half southwest quarter northeast quarter northeast quarter southwest quarter, southeast quarter northeast quarter northeast quarter southwest quarter, northeast quarter southeast quarter, north half northwest quarter southeast quarter, southeast quarter northwest quarter southeast quarter northeast quarter southwest quarter northwest quarter southeast quarter, north half northwest quarter southwest quarter northwest quarter southeast quarter, north half southeast quarter southwest quarter northwest quarter southeast quarter, northeast quarter northeast quarter southwest quarter southeast quarter, northeast quarter southeast quarter southeast quarter, north half northwest quarter southeast quarter southeast quarter, southeast quarter northwest quarter southeast quarter southeast quarter, north half southwest quarter northwest quarter southeast quarter southeast quarter, north half northeast quarter southwest quarter southeast quarter southeast quarter, north half southeast quarter southeast quarter southeast quarter, north half southeast quarter southeast quarter southeast quarter southeast quarter; excluding existing rights-of-way,

Section 23: Northeast quarter northwest quarter northwest quarter, northeast quarter northwest quarter northwest quarter northwest quarter, north half northwest quarter northwest quarter northwest quarter northwest quarter, north half northeast quarter southeast quarter northwest quarter northwest quarter, north half northeast quarter northwest quarter, southeast quarter northeast quarter northwest quarter, north half southwest quarter northeast quarter northwest quarter, southeast quarter southwest quarter northeast quarter northwest quarter, northeast quarter northeast quarter southeast quarter northwest quarter, north half northwest quarter northeast quarter southeast quarter northwest quarter, north half northeast quarter, southeast quarter northeast quarter, north half southwest quarter northeast quarter, north half southeast quarter southwest quarter northeast quarter, southeast quarter southeast quarter southwest quarter northeast quarter, north half southwest quarter southeast quarter southwest quarter northeast quarter, north half northeast quarter southwest quarter southwest quarter northeast quarter, northeast quarter northeast quarter southeast quarter, northeast quarter northwest quarter, northeast quarter southeast quarter, north half northwest quarter northwest quarter norhteast quarter southeast quarter, north half southeast quarter northwest quarter northeast quarter southeast quarter, north half northeast quarter southeast quarter northeast quarter southeast quarter; excluding Rec. PP CL

10/10/62 and existing rights-of-way,

Section 24: North half, southeast quarter, northeast quarter southwest quarter, north half northwest quarter southwest quarter, southeast quarter northwest quarter southwest quarter, north half southwest quarter norhtwest quarter southwest quarter, southeast quarter southwest quarter northwest quarter southwest quarter, north half southwest quarter southwest quarter northwest quarter southwest quarter, north half northeast quarter southeast quarter southwest quarter, southwest quarter, north half southeast quarter southwest quarter, southeast quarter southeast quarter southwest quarter, northeast quarter southwest quarter southeast quarter southwest quarter; excluding existing rights-of-way,

Section 25: North half northeast quarter northeast quarter northeast quarter northwest quarter, northeast quarter northeast quarter, northeast quarter northwest quarter northeast quarter, north half northwest quarter northwest quarter northeast quarter, northeast quarter northwest quarter northwest quarter northeast quarter, north half southwest quarter northwest quarter northwest quarter northeast quarter, north half northeast quarter southwest quarter northwest quarter northeast quarter, north half southeast quarter northwest quarter northeast quarter, souteast quarter northwest quarter northeast quarter,

TOWNSHIP 13 NORTH, RANGE 4 EAST

Section 3:

Lots 4, 5, 6,

West half northeast quarter,

Northwest quarter,

Section 4: All; including bed of Jemez River,

Section 5:

Lots 1, 2, 3, 4, 5,

Northwest quarter northwest quarter,

South half northwest quarter,

South half,

and bed of Jemez River,

Section 6:

Lots 1, 2, 3, 4,

East half west half,

East half,

and bed of Jemez River,

Section 7: All,

Section 8:

Lots 3, 4, 5,

North half,

Southwest quarter,

Northwest quarter southeast quarter,

Section 9:

Lots 5, 6, 7, 8 and bed of Jemez River lying north of the

North boundary of the Angostura Grant,

Section 17:

Lots 10, 11, 12, 13,

Northwest quarter,

Section 18:

Lots 2, 3,

East half northwest quarter,

Northeast quarter,

Township 14 North, Range 3 East

Section 6: Bed of the Jemez River,

Township 14 North, Range 4 East

Section 17: All,

Section 18: East half east half,

Section 19: East half east half,

Section 20: All,

Section 21: West half,

Section 27: Southwest quarter southwest quarter,

Section 28:

Northwest quarter,

South half,

Section 29: All,

Section 30: East half east half,

Section 31:

East half northeast quarter,

Southwest quarter northeast quarter,

Northwest quarter northwest quarter,

South half northwest quarter,

South half,

and bed of Jemez River,

Section 33: All,

Section 34:

South half northeast quarter,

Northwest quarter,

South half,

Section 35:

Lot 9,

West half southwest quarter,

containing 16,249.98 acres more or less.

(b) (1) The lands described in paragraph (2) of this subsection consisting of approximately 2240.14 acres shall continue to be subject to Public Land Order 873, entitled " An Order Withdrawing Public Lands for Use of the Department of the Army in Connection with the Jemez Canyon Dam and Reservoir Project", issued by the Secretary of the Interior on November 14, 1952, until such lands, or any portion thereof, are determined by the Secretary of the Army to be no longer needed for the purpose for which the lands were reserved under such order. The Secretary of the Army shall publish notice of any such determination in the Federal Register.

(2) The lands described in subsection (a) of this section which are subject to Public Land Order 873 are the following lands:

New Mexico Principal Meridian Township 13 North, Range 3 East

Section 1:

Lots 1, 8, 9, 10,

South half northeast quarter,

Southeast quarter northwest quarter,

Northeast quarter southwest quarter,

Section 5:

Lots 1, 2, 3, 4,

Northwest quarter northwest quarter,

South half northwest quarter,

Southwest quarter,

West half southeast quarter,

Lot 5, that part lying north of the east-west quarter section line,

Section 6:

Lots 1, 2, 3,

Northeast quarter,

East half northwest quarter,

Northeast quarter southwest quarter,

North half southeast quarter,

Southeast quarter southeast quarter,

Section 8:

Lots 3, 4, 5,

West half northeast quarter,

Northwest quarter,

North half southwest quarter,

Northwest quarter southeast quarter,

Section 17:

Lots 10 and 11,

Lot 12, that part lying east of the north-south quarter section line,

Township 14 North, Range 4 East

Section 31:

Southwest quarter northeast quarter,

Northwest quarter northwest quarter,

South half northwest quarter,

South half.

Sec. 2 The Secretary of the Interior shall publish in the Federal Register the boundaries and descriptions of the lands declared to be held in trust by this Act.

Sec. 3 All of the right, title, and interest of the United States in all minerals, including gas and oil, underlying the lands hereby declared to be held in trust for the Pueblo of Santa Ana, are hereby declared to be held by the United States in trust for the benefit and use of the Pueblo of Santa Ana.

Sec. 4. (a) Nothing in this Act shall deprive any person of any valid existing right of use, possession, contract right, interest, or title which that person may have in any of the trust lands within the purview of this Act, or of any existing right of access to public domain lands over and across such trust lands, as determined by the Secretary of the Interior. All existing mineral leases involving lands declared to be held in trust by this Act, including oil and gas leases, which may have been issued or approved pursuant to Federal law, prior to enactment of this Act, shall remain in force and effect in accordance with the provisions thereof. Notwithstanding any other provisions of law, all applications for mineral leases involving such lands, including oil and gas leases, pending on the date of enactment of this Act shall be rejected and the advance rental payments returned to the applicants.

(b) Those persons holding grazing permits from the United States Bureau of Land Management in the grazing unit known as the Bernalillo Community Allotment (Number 551), Sandoval County, New Mexico, as of the date of enactment of this Act are hereby granted the right to continue those grazing rights, subject to all otherwise applicable terms, conditions, rules, and regulations of the Bureau of Land Management governing such grazing rights,for a period of not to exceed ten years. Such grazing rights shall be administered by the Bureau of Land Management in accordance with applicable rules and regulation governing such rights on the Federal public domain, and may be canceled by the Bureau of Land Management in accordance with its regulations for failure to meet the terms and conditions of the existing permits, or failure to abide by applicable rules and regulations. Grazing fees shall be payable by the permittees to the Bureau of Land Management at prevailing rates, which fees shall be remitted by said Bureau to the Pueblo of Santa Ana within 30 days of receipt. Such grazing rights shall be nontransferable, except that they may be relinquished at any time to the Pueblo of Santa Ana. In the event of cancellation or relinquishment of said grazing rights as provided above, such rights shall not be renewed, nor shall any new permits be issued: Provided, however, That no grazing fees shall be payable by the said existing permittees for the first five years following enactment of this Act.

(c) Subject to subsection (a) and (b) of this section, any property held in trust under this Act for the Pueblo of Santa Ana shall be administered in accordance with the laws and regulations applicable to other property held in trust by the United States for the Indian tribe of such pueblo.

Sec. 5. (a) Any and all gross receipts derived from, or which relate to, the property declared to be held in trust by this Act which were received by the United States subsequent to the acquisition by the United States of such property and prior to the date of the enactment of this Act (including State school lands referred to in section 7), from whatever source and for whatever purpose, shall, as of the date of enactment of this Act, be deposited to the credit of the Pueblo of Santa Ana and may be expended by such tribe for such beneficial programs as the tribal governing body may determine.

(b) All gross receipts (including, but not limited to, bonuses, rents, and royalties) hereafter derived by the United States from any contract, permit, or lease referred to in section 4(a) of this Act, shall be administered in accordance with the laws and regulations appicable to receipts from property held in trust by the United States for Indian tribes.

Sec. 6. All property declared to be held in trust for the benefit and use of the Pueblo of Santa Ana pursuant to this Act, and all the receipts therefrom referred to in section 5 of this Act, shall be exempt from Federal, State, and local taxation so long as such property is held in trust by the United States. Any distribution of such receipts to tribal members shall neither be considered as income or resources of such members for purposes of any such taxation nor as income or resources or otherwise utilized as the basis for denying or reducing the financial assistance or other benefits to which such member or his household would otherwise be entitled to under the Social Security Act // 42 USC 1305 // or any other Federal or federally assisted program.

Sec. 7.(a) For the purpose of improving the land tenure pattern and consolidating Santa Ana Pueblo lands, the Secretary of the Interior is authorized and directed to acquire, by purchase or exchange, under such regulations as he may prescribe, all State school lands in township 13 north, range 3 east, sections 2 and 16; township 14 north, range 3 east, section 36; and township 14 north, range 4 east, section 32, State of New Mexico, containing 2004.05 acres, more or less; and interests therein, including improvements, mineral rights, and water rights. In exercising his authority to acquire such lands by exchange, the Secretary is authorized to utilize unappropriated public lands in the State of New Mexico. The properties so exchange shall be of approximately equal value, and the Secretary may accept cash from or pay cash to the State of New Mexico in such an exchange in order to equalize the values of the properties exchanged.

(b) The Secretary may execute any title documents necessary to effect the exchanges authorized by this section.

(c) Title to all lands acquired under the provisions of this section shall be taken in the name of the United States in trust for Santa Ana Pueblo.

Sec. 8. (a) Notwithstanding any other provision of this Act, during the 3 years following enactment of this Act, the Secretary may, after giving the tribe 30 days written notice and after consulting with the tribe, enter on the lands described in the first section of this Act to identify, investigate, examine, and remove any paleontological resources from such lands: Provided, That no explorations, surveys, or excavations shall be authorized within a 200-yard radius of the following shrines or religious sites:

(1) Santiyaku ' Ke Kura (Santiago's Corral);

(2) Santiyaku Ka'me (Santiago's Home);

(3) Santiyaku ' Kaisru (Santiago's Field);

(4) ' Tsitse Sruwii (Water Snake Head);

(5) Tuyuuna (Snake Head Shrine-Canjilon Hill);

(6) Shayeka Kauwatsesruma (Hunter Shrine);

(7) ' Kuyau ' Kapesru (Old Lady Sits Shrine);

(8) Huchaniitse (White House Shrine);

(9) Dyadyu Tsinautani (Bobcat Point);

(10) ' Kasreri ' Kumiyeisruma (Clown Point);

(11) Chapiyu ' Ka 'kuyanisru (Chaiyu's Trail);

(12) Shawiti 'tsuyu (Parrot Point);

(13) Hane' Kai (Sacred Clown Society Shrine);

(14) Yusrkuma (Corn Cob Shrine);

Such resources so removed are the proerty of the United States and shall be adminstered under laws applicable to federally owned resources. Paleontological resources on such lands that are not removed from the lands pursuant to this section shall be managed in manner that will permit the greatest possible public benefit, use, and study of the resources, consistent with tribal law and practices.

(b) Any lands excavated pursuant to this section shall be reclaimed and restored to their original condition by the Secretary, as nearly as he determines may be practicable.

Approved October 21, 1978.

LEGISLATIVE HISTORY:

HOUSE REPORT No. 95-1219, accompanying H.R. 3924 (Comm. on Interior and Insular Affairs).

SENATE REPORT No. 95-1132 (Select Comm. on Indian Affairs).

CONGRESSIONAL RECORD, Vol. 124 (1978):

Sept. 6, considered and passed Senate. Oct. 3, 4, H. R. 3924 considered and passed House; passage vacated, and S. 2588, amended, passed in lieu.

Oct. 7, Senate concurred in House amendment.

PUBLIC LAW 95-497, 92 STAT. 1665

95th CONGRESS, H.R. 12051 OCTOBER 21, 1978
An Act Relating to the application of certain provisions of the

Internal Revenue Code

of 1954 to specified transactions by certain public

employee retirement systems

created by the State of New York or any of its

political subdivisions.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. QUALIFIED STATUS OF PARTICIPATING PENSION PLANS.

(a) General Rule. --A participating pension plan shall not be considered to fail to satisfy the requirements of section 401 (a) of the Internal Revenue Code of 1954, // 26 USC 41 // and shall not be considered to have engaged in a prohibited transaction described in section 503 (b) of such Code, // 26 USC 503 // merely because--

(1) during the period beginning on July 1, 1978, and ending on June 30, 1982, the plan acquies city indebtedness which meets the applicable requirements of section 2, or

(2) the plan continues to hold any city indebtedness acquired--

(A) pursuant to this Act or Public Law 94 - 236,

// 90 Stat. 238. //

or (B) before November 26, 1975.

(b) AQUISITON OF INDEBTEDNESS PURSUANT TO AGREEMENT.-- The acquisition of city indebtedness by a participating pension plan under an agreement for the acquisition of city indebtedness meets the applicable requirements of section 2 if--

(1) the agreement is not disapproved by the Secrtary under subsection (c), and

(2) the plan certifies to the Secretary (and furnishes to the Secretary and to the approriate committees of the Congress such supporing information and documentation as the Secretary shall require) that the acquisition--

(A) is made under the agreement, and (B) meets the applicable requirements of section 2

(determined

without regard to the provisions of subsections (b),

(c), and (f) of section 2).

(c) SIXTY- DAY PERIOD FOR DISAPPROVAL.--

(1) In General.--Before entering into an agreement described in subsection (b), and before acquiring any city indebtedness not covered by such an agreement, the participating pension plan shall notify the Secretary of the proposed agreement or acquisition. If the Secretary determines (not later than 60 days after the date of such submission or such shorter period as the Secretary may establish) that such agreement or acquisition does not meet any requirement of section 2, the Secretary shall disapprove such agreement or acquisition (as the case may be). For purposes of this subsection an amendment, or any provision, of such an agreement shall be treated as a new agreement.

(2) NOTIFICATION.-- The Secretary shall, not later than the 10th day after the close of the period applicable under paragraph (1), notify the appropriate committees of the Congress of the determinations he has made with respect to the submission and the reasons on which such determinations were based.

SEC. 2. REQUIREMENTS.

(a) Limitations on Amount of Debt To Be Acquired.--

(1) Percentage Limitations.-- An acquisition of city indebtedness by a participating pension plan does not meet the requirements of this section if--

(A) Aggregate limit on acquisitions by city plans. In

the case of a city plan, the plan acquires any city

indebtedness

after June 30, 1979, and before the city plans meet

the percentage

limitation on holdings on city indebtedness applicable

under this subparagraph for the 12-month period ending

on

the most recently preceding June 30. The percentage

limitation

on holdings of city indebtedness under this subparagraph

is not met if the value of city indebtedness held by

all city

plans exceeds a percentage of the aggregate assets of

all city

plans equal to--

(i) 40 percent for the 12-month period ending on June 30, 1979, (ii) 36 percent for the 12-month period ending on June 30, 1980, (iii) 33 percent for the 12-month period ending on June 30, 1981, and (iv) 30 percent for the 12-month period ending on June 30, 1982. (B) Limit on acquisitions by each city plan.-- In the case of a city plan, the plan acquires any city

indebtedness

which, when added to other city indebtedness held by

such

plan, would cause such holdings to exceed 50 percent of

the

assets of such plan at the time of the acquisition.

(C) Limit on acquisitions by state plan.-- In the case

of

a State plan, the plan acquires any city indebtedness

which,

when added to other city indebtedness held by such plan,

would cause such holdings to exceed 10 percent of the

assets

of such plan at the time of the acquisition.

(D) Determinations of whether the percentage limitations have been met.-- (i) Aggregate Limit.-- For the purpose of determining whether the percentage limitation on holdings of city indebtedness under subparagraph (A) has been met for any 12-month period described in that subparagraph, the plan shall use the arithmetic mean (expressed as a

percentage)

of 4 fractions, the numerator of which are the

value of city indebtedness held by all city plans as of

the close of each calendar quarter within the 12-month

period for which the determination is being made and

the denominators of which are the value of the assets of

all city plans as of the close of each such calendar

quarter.

If the percentage limitation under subparagraph (A) is

not met for a 12-month period on the basis of the 4

fractions

for the 4 calendar quarters within that 12-month

period, the plan shall make a redetermination for that

12-month period as of the close of the first calendar

quarter, if necessary, the second calendar quarter and,

if

necessary, the third calendar quarter following the

12-month period using the 4 fractions for the 12-month

period and the fractions or fractions for the additional

quarter or quarters. If the value of city

indebtedness or

plan assets is not available for any quarter at the time

the determination of the fraction for that quarter is

being made, the plan shall use a value derived from

interpolations

from the most recently available semi-annual

valuations.

(ii) Plan Limit.- In making a determination of

whether or not an acquisition of city inebtedness meets

the requirements of subparagraph (B) or (C), the plan

shall make determinations based on the most current

data available as to the holdings of city indebtedness

and

on the basis of the most recently available semiannual

valuation of assets of the plan.

(2) Method of valuation.- For purposes of this subsection--

(A) city indebtedness is to be valued by the plan at its

face

value, and

(B) all other assets are to be value plan under methods determined by the Secretary to be consistent

with

the methods of valuing assets for purposes of

section 412 of

the Internal Revenue Code of 1954.

// 26 USC 412 //

(b) Standards.--

(1) Overall standard.- The overal standard used by the Secretary under this Act in determining whether or not to disapprove an agreement for the acquisition of city indebtedness under section 1 (c) shall be the extent to which the acquisition of city indebtedness under the agreement will, in the case of a city plan--

(A) maintain the ability of the city-- (i) to make future contributions to the plan or trust, and (ii) to satisfy its future obligations to pay pension and retirement benefits to members and beneficiaries of such plan or trust, and (B) protect the sources of funds to provide retirement benefits for members and beneficiaries of the plan or

trust.

(2) Factors to be taken into account.--In determining whether or not to disapprove such an agreement the Secretary shall take into account (among other factors) the terms of the obligations which are to be acquired under the agreement.

(3) Fiscal participation by private sources or public credit markets.--The Secretary shall disapprove any such agreement unless he has received assurances to his satisfaction that there will be significant participation in the acquisition of city indebtedness by the State, an agency of the State, or private sources, or through public credit markets.

(c) Requirements With Respect to Fiscal Condition of the City.--

(1) Substantial progress toward a balanced budget by 1982.-- An acqisition of city indebtedness by a participating pension plan during any fiscal year beginning after June 30, 1979, does not meet the requirements of this section unless the Secretary has determined for such fiscal year thaat the city is making subtantial progress toward operating under expense budgets which do not show a deficit it.

(2) Principles to be applied under paragraph (1).--The Secretary shall make the determination required under paragraph (1) on the basis of--

(A) whether or not the requirements of paragraph (5) of section 103 of the New York City Loan Guarantee

Act of

1978 (as such Act is in effect on the date of

enactment of this

Act) are being met, and

(B) the annual audited financial statements of the city

prepared

in accordance with generally accepted accounting

principles (including principles applicable to municipal

governments which provide for a clear division between

operating outlays and revenues on the one hand and

capital

expenditures and revenues on the other hand) and in

accordance

with generally accepted auditing standards.

(d) Plans Having Negative Cash Flow.--

(1) In general.--An acquisition of any city indebtedness by a city plan does not meet the requirements of this section if the plan would have a negative cash flow for the fiscal year of acquisition.

(2) Special rules.--For purposes of paragraph (1)--

(A) cash flow shall be determined by the plan for each fiscal year, and also whenever the plan enters into

agreement

which must be submitted to the Secretary under section

1 (c) (including any amendment of, or waiver under, such

an agreement),

(B) cash flow shall be determined in the same manner as provided in paragraph (3) of subsection (e), and (C) the effect of completed and proposed acquisitions

during

the plan year on the cash flow shall be taken into

account.

(e) Reports.-

(1) Annual report by plans on receipts, disbursements, holdings, and cash flow.-

(A) Annual report.-An acquisition of any city

indebtedness

by any participating city pension plan does not meet

the requirements of this section unless, for each

preceding

plan year beginning after June 30, 1978, and ending

more

than 8 months and 15 days before the date of the

acquisition

the plan has submitted an annual report which meets the

requirements of paragraph (2) to the Secretary and to

the

appropriate committees of the Congress.

(B) Projected cash flow.- An acquisition of city

indebtedness

by any participating city pension plan for any plan

year does not meet the requirements of this section

unless the

plan has submitted to the Secretary and to the

appropriate

committees of the Congress a statement showing the

projected

cash flow for the plan year.

(2) Annual report by independent public accountant-An annual report does not meet the requirements of this paragraph unless it-

(A) includes an analysis of compliance by the plan throughout the fiscal year with the requirements of

subparagraphs

(A) and (B) of subsection (a) (1),

(B) is prepared in accordance with generally accepted accounting principles, and (C) meets the requirements of paragraph (3) of section 103 (a) of the Employee Retirement Income Security

Act

of 1974, as in effect on the date of enactment of this

Act

// 29 USC 1023 //

(without regard to the last 4 sentences of subparagraph

(A)

of that paragraph).

(3) Rules for determining cash flow.- For purposes of paragraph (1)(B), the cash flow-

(A) shall take into account contributions and other income (such as dividends and interest) on the one hand and the payment of benefits and expenses on the other hand, and (B) shall not take into account items properly chargeable to capital account (such as the proceeds from the sale

or

redemption of assets), other than-

(i) payment of principal during the period a debt is outstanding, (ii) payment of principal at maturity or redemption, and (iii) proceeds from the sale of obligations having a maturity of one year or less at the time of sale.

(f) City Must Comply With Requirements of Section 103 (7) of New York City Loan Guarantee Act of 1978.- An acquisition of city indebtedness by a city pension plan for any year does not meet the requirements of this section unless, at the time of the acquisition, the Secretary has determined that the requirements of paragraph (7) of section 103 of the New York City Loan Guarantee Act of 1978, as in effect on the date of enactment of this Act, have been met.

SEC.3. NOTIFICATION OF PLANS AND CITY OF ACQUISITIONS WHICH FAIL TO MEET REQUIREMENTS OF THE ACT; REGULATIONS.

(a) Notification of Plans and City.--

(1) Notice of failure to meet requirements.- Whenever the Secretary determines that an acquisition of city indebtedness has not met one of the requirements of section 2,he shall notify the participating plan or plans involved.

(2) Notice of possible prospective failure.- The Secretary shall notify each participating pension plan and the city whenever he finds, based on information available to the Secretary, that a future acquisition of city indebtedness will fail to meet the requirements of section 2 because of the requirement of subsection (a) (1) (A) or (c) of that section, and he shall notify the participating pension plan concerned and the city whenever it appears that a future acquisition of city indebtedness by that plan will fail to meet the requirements of section 2 for any other reason.

(b) Regulations.- The Secretary of the Treasury or his delegate is authorized to prescribe such regulations as may be necessary to carry out the provisions of this Act.

SEC. 4. DEFINITIONS AND SPECIAL RULES.

For purposes of this Act-

(1) Participating pension plan.-- The term "participating pension plan" means any city plan or State plan.

(2) City plan.- The term "city plan" means any of the following:

(A) the New York City employees' retirement system, (B) the teachers' retirement system for the city of New York, (C) the New York City Police Pension Fund,

article 2,

(D) the New York City Fire Department Pension Fund, article 1-B, and (E) the board of education retirement system for the city of New York.

(3) State plan.- The term " State plan" means any of the following:

(A) the New York State employees' retirement system, (B) the New York State policemen's and firemen's

retirement

system, and

(C) the New York State teachers' retirement system.

(4) Appropriate committees of the congress.- The term "appropriate committees of the Congress" means the Committee on Ways and Means of the House of Representatives and the Finance Committee of the Senate.

(5) References to plan include references to trust.- A reference to a plan includes a reference to any trust forming a part thereof.

(6) City indebtedness.- The term "city indebtedness" means any city obligation or any State financing agency obligation.

(7) City obligation.- The term "city obligation" means any indebtedness for money borrowed by the city.

(8) State financing agency obligation.- The term " State financing agency obligation" means any indebtedness for money borrowed by the State financing agency.

(9) State financing agency.- The term " State financing agency" means any agency or instrumentality of the State of New York duly authorized by such State to act on behalf of or in the interest of the city, and no other subdivision of the State, with respect to the city's financial affairs.

(10) City.- The term "city" means the city of New York.

(11) Fiscal year.- The term "fiscal year" means a 1-year period beginning on July 1 or, where the Secretary determines it to be appropriate, the plan year of a participating pension plan.

(12) Secretary.- The term " Secretary" means the Secretary of the Treasury. Except as provided in section 3, no function, power, or duty of the Secretary under section 1, section 2, or this section may be delegated.

(13) Acquisition.- The term "acquisition" includes-

(A) a purchase or an exchange (whether pursuant to a rollover or otherwise), and (B) to the extent provided in regulations prescribed by the Secretary, any modification in the terms of an

obligation

or in the rights of the holder of an obligation.

SEC. 5. RELATIONSHIP OF THIS ACT TO PUBLIC LAW 94 - 236.

Effective on the date of the enactment of this Act,

// 26 USC 401. //

the waiver of the requirements of sections 401 (a) and 503 (b) of the Internal Revenue Code of 1954, // 26 USC 503. // contained in subsection (a) of the first section of Public Law 94 - 236 // 90 Stat. 238. // shall not apply to acquisitions of city indebtedness on or after such date.

Approved October 21, 1978.

LEGISLATIVE HISTORY:

HOUSE REPORT No. 95 - 1605 (Comm. on Ways and Means).

CONGRESSIONAL RECORD, Vol.124 (1978):

Oct. 3, considered and passed House.

Oct.7, considered and passed Senate.

PUBLIC LAW 95-496, 92 STAT. 1660

95th CONGRESS, S. 1081 OCTOBER 21, 1978
An Act To amend certain laws relating to the Osage Tribe of

Oklahoma, and for other

purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 9 of the Act of June 28, 1906 (34 Stat. 539, 545), as amended, is further amended to read as follows: " There shall be a quadrennial election of the officers of the Osage Tribe as follows: A principal chief, an assistant principal chief, and eight members of the Osage Tribal Council shall be elected to succeed the officers elected in the year 1974 at a general election to be held in the town of Pawhuska, Oklahoma, on the first Monday in June 1978 and on the first Monday in June of each fourth year thereafter, in a manner to be prescribed by the Secretary of the Interior, and said officers shall be elected for a period of four years commencing on the first day of July following the election. In case of a vacancy in the office of principal chief or other officer by death, resignation, or otherwise, the vacancy shall be filled in a manner to be prescribed by the Osage Tribal Council. In the event of a common disaster and a quorum of five of the Osage Tribal Council does not survive, the Secretary shall appoint a principal chief and/or the number of councilmen necessary to complete a total of eight, to serve until the next quadrennial election. The Secretary is hereby authorized to remove from the council any member or members for good cause, to be by him determined, after the party involved has had due notice and opportunity to appear and defend himself. The tribal government so constituted shall continue in full force and effect until January 1, 1984, and thereafter until otherwise provided by Act of Congress.".

SEC. 2. (a) The first paragraph of section 3 of the Act of June 24, 1938 (52 Stat. 1034, 1035), as amended, extending the mineral estate reserved to the Osage Tribe by the Act of June 26, 1906 (34 Stat. 539), is further amended by striking the phrase "until the eighth day of April 1983, and thereafter until otherwise provided by Act of Congress" and substituting, in lieu thereof, the phrase "in perpetuity".

(b) The second paragraph of section 3 of the Act of June 24, 1938 (52 Stat. 1034, 1035), as amended, is amended by striking the phrase "unless otherwise provided by Act of Congress" and inserting, in lieu thereof, the phrase "and thereafter until otherwise provided by Congress".

(c) The fourth paragraph of section 3 of the Act of June 24, 1938 (52 Stat. 1034, 1036) is amended by striking the phrase " January 1, 1984" and inserting, in lieu thereof, the phrase " January 1, 1984 and thereafter until otherwise provided by Congress".

SEC. 3. (a) The Act of February 5, 1948 (62 Stat. 18) // 25 USC 331 // is hereby repealed.

(b) Any Osage Indian having received a certificate of competency under paragraph 7 of section 2 of the Act of June 28, 1906 (34 Stat. 539, 542); section 3 of the Act of March 2, 1929 (45 Stat. 1478, 1480); or the Act of February 5, 1948 (62 Stat. 18), // 25 USC 331 // may make application to the Secretary of the Interior to revoke such certificate and the Secretary shall revoke such certificate: Provided, That revocation of any certificate shall not affect the legality of any transactions heretofore made by reason of the issuance of any such certificate. Restrictions against alienation of lands heretofore removed are not reimposed.

(c) Sections 3 and 4 of the Act of February 27, 1925 (43 Stat. 1008 1010-11); and section 4 of the Act of March 2, 1929 (45 Stat. 1478, 1480); and sections 1 and 3 of the Act of June 24, 1938 (52 Stat. 1034) are hereby amended by striking, wherever they occur, the phrases "of one-half or more Indian blood", "of more than one-half Indian blood", "of one-half or more Osage Indian blood", and "or who is one-half or more Osage Indian blood".

SEC. 4. In order to conserve natural resources and provide for the greatest ultimate recovery of oil and gas underlying the Osage mineral estate, the Secretary of the Interior is authorized to establish rules and regulations under which oil and gas leases producing from a common source of supply may be unitized.

SEC. 5. (a) Section 8 of the Act of April 18, 1912 (37 Stat. 86, 88), is hereby amended to read as follows: " Any person of Osage Indian blood, eighteen years of age or older, may dispose of his Osage headright or mineral interest and the remainder of his estate (real, person, and mixed, including trust funds) from which restrictions against alienation have not been removed by will executed in accordance with the laws of the State of Oklahoma: Provided, That the will of any Osage Indian shall not be admitted to probate or have any validity unless approved after the death of the testator by the Secretary of the Interior. The Secretary shall conduct a hearing as to the validity of such will at the Osage Indian Agency in Pawhuska, Oklahoma. Notice of such hearing shall be given by publication at least ten days before the hearing in a newspaper of general circulation in Osage County, Oklahoma, and by mailing notice of such hearing to the last known address of all known heirs, legatees, and devisees. The cost of publication shall be borne by the estate. The rules of evidence of the State of Oklahoma shall govern the admissibility of evidence at such hearing. All evidence relative to the validity of the will of an Osage Indian shall be submitted to the Secretary within one hundred and twenty days after the date of the petition for approval of such will is filed with the Secretary, unless for good cause shown the Secretary extends the time: Provided, That such time shall not be extended beyond six months from the date of the first hearing. For purposes of determining the validity of any will, the Secretary is hereby granted the same subpena power as is vested in the courts. All costs of obtaining witnesses and evidence before the Secretary shall be borne by the party producing such witnesses or evidence, subject to such costs being taxed to the estate in the event that the District Court of the State of Oklahoma having jurisdiction should determine such costs beneficial to the whole estate. Notwithstanding any appeal from the decision of the Secretary, approval of such will by the Secretary shall entitle it to be admitted to probate without further evidence as to its validity or, upon disapproval thereof, the heirs may immediately petition for letters of administration in the district court. No appeal from the order of the Secretary approving or disapproving any will shall stay the issuance of letters testamentary or of administration: Provided, That such letters shall not confer power to sell any restricted assets by virtue of any provision in such will, pay or satisfy legacies, or distribute property of the decedent to the heirs or beneficiaries until the final determination of the appeal, but all other action taken by the district court pending said appeal shall be valid and binding. No court except a Federal court shall have jurisdiction to hear a contest of a probate of a will that has been approved by the Secretary. Such appeals shall be on the record made before the Secretary and his decisions shall be binding and shall not be reversed unless the same is against the clear weight of the evidence or erroneous in law.".

(b) Section 3 of the Act of April 18, 1912 (37 Stat. 86), is hereby amended to read as follows: " That the property of deceased and of orphan minor, insane, or other incompetent Osage Indians, such incompetency being determined by the laws of the State of Oklahoma which are hereby extended for such purpose to all Osage Indians, shall, in probate matters, be subject to the District Court of Oklahoma having jurisdiction. A copy of all papers filed in the district court shall be served on the Superintendent of the Osage Agency at the time of filing, and said Superintendent is authorized, whenever the protection of the interest of the Osage Indian requires, to appear in the district court. The Superintendent of the Osage Agency or the Secretary of the Interior, whenever he deems the same necessary, may investigate the conduct of executors, administrators, guardians, or other persons having charge of the estate of any minor, incompetent, or deceased Osage Indian. Whenever he shall be of the opinion that the estate is in any manner being dissipated, wasted, or permitted to deteriorate in value by reason of the negligence, carelessness, or incompetency of the executor, administrator, guardian, or other person in charge of the estate, the Superintendent of the Osage Agency or the Secretary is authorized, and it shall be his duty, to report said matter to the district court, take the necessary steps to have such case fully investigated, and prosecute any remedy, either civil or criminal, as the exigencies of the case may require. The costs and expenses of any civil proceedings shall be a charge upon the estate of the Osage Indian or upon the executor, administrator, guardian, or other person in charge of the estate of the Osage Indian and his surety, as the district court shall determine. Every bond of the executor, administrator, guardian, or other person in charge of the estate of any Osage Indian shall be subject to the provisions of this section and shall contain therein a reference hereto: Provided, That no guardian shall be appointed for a minor whose parents are living unless the estate of said minor is being wasted or misused by such parents: Provided further, That no land shall be sold or alienated under the provisions of this section without approval of the Secretary.".

(7) Section 7 of the Act of February 27, 1925 (43 Stat. 1008, 1011), // 25 USC 331 // as amended, is hereby further amended to read as follows: " Hereafter none but heirs of Indian blood and children legally adopted by a court of competent jurisdiction and parents, Indian or non-Indian, shall inherit from Osage Indians any right, title, or interest to any restricted land, moneys, or Osage headright or mineral interest.".

(d) Notwithstanding the provisions of subsections (a), (b), and (c) of this section, // 25 USC 331 // disposition of any Osage headright or mineral interest shall be subject to the provisions of section 7 of this Act.

SEC. 6. (a) With the approval of the Secretary of the Interior, any person of Osage Indian blood, eighteen years of age or older, may establish an inter vivos trust covering his headright or mineral interest except as provided in section 8 hereof; surplus funds; invested surplus funds: segregated trust funds; and allotted or inherited land, naming the Secretary of the Interior as trustee. An Osage Indian having a certificate of competency may designate a banking or trust institution as trustee. Said trust shall be revocable and shall make provision for the payment of funeral expenses, expenses of last illness, debts, and an allowance to members of the family dependent on the settlor.

(b) Property placed in trust as provided by this section shall be subject to the same restrictions against alienation that presently apply to lands and property of members of the Osage Tribe, and the execution of such instrument shall not in any way affect the tax-exempt status of said property.

SEC. 7. After passage of this Act, // 25 USC 331 // a person not of Osage Indian blood, except a child legally adopted by an Osage Indian in any court of competent jurisdiction and the lineal descendants of such adopted child, subject to the stipulation that such adopted child or his lineal descendants cannot alienate his Osage headright or mineral interest and the devolution thereof is limited to intestacy, will, or inter vivos trust the same as if he were of Osage Indian blood, is prohibited from receiving more than a life estate in an Osage headright interest owned by an Osage Indian, such adopted child or his lineal descendants, whether such interest is received by will, inter vivos trust, or Oklahoma law of intestate succession. Upon the death of such recipient, the Osage headright or mineral interest shall vest in the remaindermen thereof who are of Osage Indian blood, adopted children, and/or lineal descendents of such adopted children designated by the will or inter vivos trust of the deceased Osage Indian, his adopted child, or the lineal descendants of such adopted child. If such instrument does not designate remaindermen thereof who are of Osage Indian blood, adopted children and/or lineal descendants of such adopted children, or if the deceased died intestate, the Osage headright or mineral interest shall vest in his heirs pursuant to the Oklahoma law of intestate succession, subject to the above limitations. On the death of the non-Osage beneficiary or heir, except in the case of adopted children or lineal descendants of such adopted children, such Osage headright or mineral interest shall vest in the Osage Tribe and the Tribe shall pay the estate of the non-Osage beneficiary or heir the market value of such Osage headright or mineral interest. Payments under this section shall be made from Osage tribal mineral funds authorized to be expended by section 8(b) hereof.

SEC. 8. (a) Any individual right to share in the Osage mineral estate (commonly referred to as "headright") owned by a person not of Indian blood may not, without the approval of the Secretary of the Interior, be sold, assigned, or transferred. Sale of any such interest shall be subject to the right of the Osage Tribe to purchase it within forty-five days at the highest legitimate price offered the owner thereof.

(b) Prior to the time and tribal mineral income is segregated for distribution to individual headright owners, the Secretary of the Interior, at the request of the Osage Tribal Council, may direct the use of any such income for the purchase of Osage headright interests offered for sale to the Osage Tribe pursuant to this section or vested in the Osage Tribe pursuant to section 7 of this Act.

SEC. 9. Under such regulations as the Secretary of the Interior may prescribe, the heirs and legatees of any deceased owner of an Osage headright or mineral interest, real estate on which restrictions against alienation have not been removed, and funds on deposit at the Osage Agency may be determined by the Secretary if such aggregate interests do not exceed $10,000: Provided, That no court of competent jurisdiction has undertaken the probate of the deceased's estate and a request for such administrative determination has been made to the Secretary by one or more of the heirs or legatees.

Approved October 21, 1978.

LEGISLATIVE HISTORY:

HOUSE REPORT No. 95 - 1459, accompanying H.R. 11894 (Comm. on Interior and Insular Affairs).

SENATE REPORT No. 95 - 1157 (Select Comm. on Indian Affairs).

CONGRESSIONAL RECORD, Vol. 124 (1978):

Sept. 8, considered and passed Senate.

Oct. 3, H.R. 11894 considered and passed House; passage vacated, and S. 1081, amended, passed in lieu.

Oct. 7, Senate concurred in House amendments.

PUBLIC LAW 95-495, 92 STAT. 1649

95th CONGRESS, h.r. 12250 October 21, 1978
An Act To designate the Boundary Waters Canoe Area

Wilderness, to establish the

Boundary Waters Canoe Area Minin Protection

Area, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

FINDINGS

SECTION 1. The Congress finds that it is necessary and desirable to provide for the protection, enhancement, and preservation of the natural values of the lakes, waterways, and associated forested areas known (before the date of enactment of this Act) as the Boundary Waters Canoe Area, and for the orderly management of public use and enjoyment of that area as wilderness, and of certain contiguous lands and waters, while at the same time protecting the special qualities of the area as a natural forest-lakeland wilderness ecosystem of major esthetic, cultural, scientific, recreational and educational value to the Nation.

PURPOSES

SEC. 2. It is the purpose of this Act to proivde for such measures respecting the areas designated by this Act as the Boundary Waters Canoe Area Wilderness and Boundary Waters Canoe Area Mining Protection Area as will-

(1) provide for the protection and management of the fish and wildlife of the wilderness so as to enhance public enjoyment and appreciation of the unique biotic resources of the region,

(2) protect and enhance the natural values and environmental quality of the lakes, streams, shorelines and associated forest areas of the wilderness,

(3) maintain high water quality in such areas,

(4) minimize to the maximum extent possible, the environmental impacts associated with mineral development affecting such areas,

(5) prevent further road and commercial development and

restore natural conditions to existing temporary roads in the wilderness, and

(6) provide for the orderly and equitable transition from motorized recreational uses to nonmotorized recreational uses on those l