Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That (a) subpart F of part 4 of Schedule 6 of the Tariff Schedules of the United States (19 U.X.C. 1202) is amended--,

(1) by inserting immediately after item 674.40 the following new item: "674.41 Copying lathes used for making rough or finished shoe lasts from models of shoe lasts and, in addition, capable of producing more than one size shoe last from a single size model of a shoe last........ Free Free";

(2) by inserting immediately after item 674.42 the following new item:

"674.48 Work and tool holders and other parts of, and accessories used principally with, copying lathes provided for in item 674.41...................... Free Free". and

(3) by striking out "machine toosl;" in the superior heading to items 674.50 through 674.56, inclusive, and inserting in lieu thereof "machine tools (other than copying lathes provided for in item 674.41;".

(b) Item 911.70 of the Appendix to such Schedules is repealed.

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 // shall apply with respect to articles entered, or withdrawn from warehouse, for consumption on or after the date of the enactment of this Act.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

(d) Upon request therefor filed with the customs officer concerned on or before the ninetieth day after the date of the enactment of this Act, // 19 USC 1202 note. // the entry of any article--,

(1) which was made after June 30, 1976, and before the date of the enactment of this Act, and

(2) with respect to which there would have been no duty if any of the amendments made by subsection (a) applied to such entry,

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

(e) The repeal made by subsection (b) // 19 USC 1202 app. note. // shall take effect 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 app. // is amended--,

(1) by adding emmediately after headnote 3 the following new headnote:

"4. For so long as items 905.10 and 905.11 are in effect, headnotes 3, 4, and 5 of subpart C of part 1 of schedule 3 shall be suspended (except insofar as they relate to hair of the camel) and in lieu thereof--,

"(a) for purposes of item 307.40--,

"(i) the classification provisions for wool not finer than 46s shall apply to any package of wool containing not over 10 percent by weight of wool finer than 46s but not containing wool finer than 48s; and

"(ii) the citation for imports classifiable under item 307.40 shall be such item number followed by the item number for the part of the contents of the package which determines the rate of duty; and

"(b) for purposes of item 905.11, a tolerance of not more than 10 percent of wools not finer than 48s may be allowed in each bale or package of wools imported as not finer than 46s."; and

(2) by adding emmediately before item 905.30 the following new items:

" Wool (provided for in part 1 C, schedule 3): 905.10 All wool provided for in items 306.00 through 306.24...................... Free Free On or before 6/30/80 905.11 Wool not finer than 46s provided for in items 306.30 through 306.34....... Free Free On or before 6/30/80".

(b) The amendments made by this section 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 G of part 1k of schedule 1 of the Tariff Schedules of the United States (19 U.S.C. 1202) is amended by striking out--,

" Istle: 192.65 Crude...................... Free Free 192.70 Processed..................20% ad val. 20% ad val.".

and inserting in lieu therof the following:

"192.66 Istle...................... Free Free".

(b) // 19 USC 1202 app. // Itme 903.90 of the Appendix to such Schedule is repealed.

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

LEGISLATIVE HISTORY

HOUSE REPORT No. 95 - 425 (Comm. on Ways and Means).

SENATE REPORT No 95 - 421 (Comm. on Finance).

CONGRESSIONAL Record, Vol. 123 (1977):

July 18, considered and passed House.

Sept. 15, considered and passed Senate, amended.

Oct. 25, House concurred in Senate amendments.

PUBLIC LAW 95-161, 91 STAT. 1273

95th CONGRESS, H.R. 2982 NOVEMBER 8, 1977 AN ACT To suspend until the close of June 30, 1980, the duty on synthetic tantalum/ columbium concentrate, 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 app. // is amended by inserting immediately after item 911.25 the following:

"911.27 synthetic tantalum/ columbium lumbium concentrate (provided for in item 603.70, pt. 1 schedule 6).......................... Free No change On or

before

6/30/80".

(b) The amendment made by subsection (a) // 19 USC 1202 app. note. // 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 app. //

Sec. 2. (a) Subpart B of part 1 of the Appendix to the Tariff Schedules of the United States (19 U.S.C. 1202) is amended by inserting immediately before item 907.80 the following new item:

"907.70 Concentrate of poppy straw (however provided for in part 3 of schedule 4) when imported for use in producing codeine or morphine......... Free Free On or

before

6/30/80".

(b) The amendment made by subsection (a) // 19 USC 1202 app. note. // 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 app. //

Sec. 3. (a) Item 912.05 of the Appendix to the Tariff Schedules of the United States (19 U.S.C. 1202) is amended--,

(1) by inserting ",and parts thereof" immediately after " Generator lighting sets for bicycles"; and

(2) by striking out "12/31/76" and insertinf in lieu thereof "6/30/80".

(b) Item 912.10 of the Appendix to such Schedules is amended to read as follows:

"912.10 caliper brakes, drum brakes, coaster brakes, three-speed hubs incorporating coaster brakes, three-speed hubs not incorporating coaster brakes, click twist grips, click stick levers, multiple free wheel sprockets, cotterless type crank sets, rims, parts of all the foregoing, and parts of bicycles consistinf of sets of steel tubing cut to exact lenght and each set having the number of tubes needed for the assembly (with other parts) into the frame and fork of one bicycle (provided for in item 732.36, part 5 C, schedule 7)................. Free No change On or before 6/30/80".

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

(d) // 19 USC 1202 app. note. // Upon request therefor filed with the customs officer concerned on or before the 90th day after the date of the enactment of this Act, the entry or withdrawal of any article (other than any derailleur) to which item 912.05 or 912.10 of the Tariff Schedules of the United States (as in effect on December 31, 1976) applied and--,

(1) which was made after December 31, 1976, and before the date of the enactment of this Act, and

(2) with respect to which there would have been no duty if any of the amendments made by subsections (a) and (]) applied to such entry or withdrawal,

shall notwithstanding the provisions of section 514 of the Tariff Act of 1930 // 19 USC 1514. // 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.

LEGISLATIVE HISTORY:

HOUSE REPORT No. 95 424 (Comm. on Ways and Means).

SENATE REPORT No. 95 420 (Comm. on Finance).

CONGRESSIONAL RECORD, Vol. 123 (1977):

July 18, considered and passed House.

Sept 16, considered and passed Senate, amended.

Oct. 258 House concurred in Senate amendments.

PUBLIC LAW 95-160, 91 STAT. 1271

95th CONGRESS, H.R. 2850 NOVEMBER 8, 1977 AN ACT To suspend until the close of June 30, 1978, the duty on certain latex sheets, and for other purposes.

Be it enacted by the Senate and House of Representatives of thel 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 app. // is amended by inserting immediately after item 912.10 the following new item:

"912.12 sheets, over 0.90 inch but not over 1.50 inches in thickness, of molded pin core latex foam rubber (provided for in item 770.70, part 12 A, schedule 7........................... Free No change On or before 6/30/78".

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

(c) Upon request therefor 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 May 9, 1977, 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) applied to such entry or withdrawal,

shall, notwithstanding the provisions of section 514 of the Tariff Act of 1930 // 19 USC 1514. // 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) Item 911.25 of the Appendix to the Tariff Schedules of the United States (19 U.S.C. 1202) // 19 USC 1202 app. // is amended by striking out

"6/30/77" and inserting in lieu thereof "6/30/79".

(b) The amendment made by subsection (a) // 19 USC 1202 app. note. // shall apply with respect to articles entered, or withdrawn from warehouse, for consumption, after June 30, 1977.

Sec. 3. (a) Subpart B of part 12 of schedule 7 of the Tariff Schedules of the United States (19 U.S.C. 1202) is amended by striking out "otherwise processed" in headnote 2 (iv) (D) and inserting in lieu thereof "otherwise usefully processed".

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

LEGISLATIVE HISTORY:

HOUSE REPORT No. 95 - 423 (Comm. on Ways and Means).

SENATE REPORT No. 95 - 419 (comm. on Finance).

CONGRESSIONAL RECORD, Vol. 123 (1977):

July 18, considered and passed House.

Sept. 15, considered and passed Senate, amended.

Oct. 25, House concurred in Senate amndments.

PUBLIC LAW 95-159, 91 STAT. 1269

95th CONGRESS, H.R. 3259 NOVEMBER 8, 1977 AN ACT To continue to suspend for a temporary period the import duty on certain horses, 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) items 903.50 and 903.51 of the Appendix to the Tariff Schedules of the United States (19 U.S.C. 1202) are each amended by striking out

"6/30/76" and inserting in lieu thereof "6/30/80".

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

(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 or withdrawal of any article--,

(1) which was made after June 30, 1976, and before the date of the enactment of this Act, and

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

shall, notwithstanding the provisions of 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) The headnotes to part 10 of schedule 4 of the Tariff Schedules of the United States (19 U.S.C. 1202) are amended by adding at the end thereof the following new headnote:

"4. (a) For purposes of this headnote, the term 'petroleum' means crude petroleum (including reconstituted crude petroleum) or crude shale oil provided for in items 475.05 or 475.10.

"(b) Petroleum shall, if a product or Canada, be admitted free of duty and any entry therefor shall be liquidated or reliquidated accordingly if, on or before the 180th day after thedate of entry, documentation is filed with the customs officer concerned establishing that, pursuant to a commercial exchange agreement between United States and Canadian refiners which has been approved by the Secretary of Energy--,

"(i) an import license for the petroleum covered by such entry has been issued by the Secretary; and

"(ii) an equivalent amount of domestic petroleum or duty-paid foreign petroleum has, pursuant to such commercial exchange agreement and to an export license issued by the Secretary of Commerce, been exported from the United States to Canada and has not previously been used to effect the duty-free entry of like Canadian products under this headnote.

"(c) The Secretary of the Treasury, after consulting with the Secretary of Commerce and the Secretary of Energy, shall issue such rules or regulations as may be necessary governing the admission of Canadian products pursuant to the provisions of this headnote.".

(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 pursuant to commercial exchange agreements referred to in headnote 4 of part 10 of schedule 4 of the Tariff Schedules of the United States (as added by such subsection) which are effective for periods beginning on or after such date of enactment.

sec. 3. // 19 USC 1202 // (a) Subpart B of part 1 of the Appendix to the Tariff Schedules of the United States (19 U.S.C. 1202) is amended by inserting immediately before item 907.60 the following new item:

"907.20 Doxorubicin hydrochloride (provided for in item 407.85, part 1, or in item 437.32 or 438.02, part 3, schecule 4, depending on source)................ Free No On or before change 6/30/80". change 6/30/80".

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

LEGISLATIVE HISTORY:

HOUSE REPORT No. 95 79 (Comm. on Ways and Means).

SENATE REPORT No. 95 422 (Comm. on Finance).

CONGRESSIONAL RECORD, Vol. 123 (1977):

Mar. 21, considered and passed House.

Sept. 15, considered and passed Senate, amended.

Oct. 25, House concurred in Senate amendments.

PUBLIC LAW 95-158, 91 STAT. 1268

95th CONGRESS, H.J.RES. 621 NOVEMBER 8, 1977 JOINT RESOLUTION Approving the Presidential decision on an Alaska natural gas transportation system, and for other purposes.

Resolved by the Senate and House of Representatives of the United States of America in Congress assembled, // 15 USC 719f // That the House of Representatives and Senate approve the Presidential decision on an Alaska natural gas transportation system submitted to the Congress on September 22, 1977, and find that any environmental impact statements prepared relative to such system and submitted with the President's decision are in compliance with the Natural Environmental Policy Act of 1969. // 42 USC 4321 //

LEGISLATIVE HISTORY:

HOUSE REPORTS: No. 95 739, pt. I (Comm. on Interior and and Insular Affairs) and No. 95 - 739, pt. II (Comm. on Insterstate and Foreign Commerce.)

SENATE REPORT No. 95 - 567 accompanying S.J. res. 82 (Comm, on Energy and Natural Resources).

CONGRESSIONAL RECORD, Vol. 123 (1977): Nov. 2. considered and passed House and Senate, in lieu of S.J. Res. 82.

WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 13, No. 46: Nov. 8, Presidential statement.

PUBLIC LAW 95-157, 91 STAT. 1265

95th CONGRESS, S. 2149 NOVEMBER 8, 1977 AN ACT To create the District Court for the Northern Mariana Islands, implementing article IV of the Convenant to Establish a Commonwealth of the Northern Mariana Islands in Political Union with the United States of America.

Whereas section 401 of the Covenant to Establish a Commonwealth of the Northern Mariana Islands in Political Union with the United States of America, approved by section 1 of the joint resolution of March 24, 1976 (Public Law 94 - 241; 90 Stat. 263), provides that the United States will establish a District Court for the Northern Mariana Islands: Now, therefore,

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, // 48 USC 1694. // That (a) there is hereby established for and within the Northern Mariana Islands a court of record to be known as the District Court for the Northern Mariana Islands. The Northern Mariana Islands shall constitute a part of the same judicial circuit of the United States as Guam. Terms of court shall be held on Saipan and at such other places and at such times as the court may designate by rule or order.

(b) (1) The President shall, by and with the advice and consent of the Senate, appoint a judge for the District Court for the Northern Mariana Islands who shall hold office for the term of eight years and until his successor is chosen and qualified, unless sooner removed by the President for cause. The judge shall receive a salary payable by the United States which shall be at the rate prescribed for judges of the United States district courts.

(2) The Chief Judge of the Ninth Judicial Circuit of the United States may assign justices of the High Court of the Trust Territory of the Pacific Islands or judges of courts of record of the Northern Mariana Islands who are licensed attorneys in good standing or a circuit or district judge of the ninth circuit, indluding a judge of the District Court of Guam who is appointed by the President, or the Chief Justice of the United States may assign any other United States circuit or district judge with the consent of the judge so assigned and of the chief judge of his circuit to serve temporarily as a judge in the District Court for the Northern Mariana Islands whenever such an assignment is necessary for the proper dispatch of the business of the court. Such judges shall have all the powers of a judge of the District Court for the Northern Mariana Islands, including the power to appoint any person to a statutory position, or to designate a depository of funds or a newspaper for publication of legal notices.

(3) The President shall appoint, by and with the advice and consent of the Senate, a United States attorney and United States marshal for the Northern Mariana Islands to whose offices the provisions of chapters 35 and 37 of title 28, respectively, United States Code, // 28 USC 541, 561. // shall apply.

(4) If the President appoints a judge for the District Court for the Northern Mariana Islands or a United States attorney or a United States marshal for the Northern Mariana Islands who at that time is serving in the same capacity in another district, the appointment shall, without prejudice to a subsequent appointment, be for the unexpired term of such judge or officer.

(c) The provisions fo chapters 43 of title 28, United States code, // 28 USC 631, 751. // and the rules heretofore or hearafter promulgated and made effective by the Congress or the Supreme Court of the United States pursuant to titles 11, 18, 28, United States Code, shall apply to the District Court for the Norhtern Mariana Islands and appeals therefrom where appropriate, except as otherwise provided in articles IV and V of the covenant provided by the Act of March 24, 1976 (90 Stat. 263). // 48 USC 481 // The terms "attorney for the government" and " United States attorney" as used in the Federal Rules of Criminal Procedure (rule 54(c)) // 28 USC app. // shall, when applicable to cases arising under the laws of the Northern Mariana Islands, include the attorney general of the Northern Mariana Islands or any other person or persons as may be authorized by the laws of the Northern Marianas to act therein.

Sec. 2. // 48 USC 169a. // (a) The district Court for the Northern Marina Islands shall have the jurisdiction of a district court of the United States, except that in all causes arising under the Constitution, // USC prec. title 1. // treaties, or laws of the United States, it shall have jurisdiction regardless of the sum or value of the matter in controversy.

(b) The district court shall have orginal jurisdiction in all causes in the Northern Mariana Islands not described in subsection (a) jurisdiction over which is not vested by the Constitution or laws of the Northern Mariana Islands in a court or courts of the Northern Mariana Islands. In causes brought in the district court solely on the basis of this subsection, the district court shall be considered a court of the Northern Mariana Islands for the purposes of determining the requirements of indictment by grand jury or trial by jury.

Sec. 3. // 48 USC 1694b. // The district court shall have such appellate jurisdiction as the Constitution and laws of the Northern Mariana Islands provide. Appeals to the district court shall be heard and determined by an appellate division of the court consisting of three judges, of whom two shall constitute a quorum. The judge appointed for the court by the President shall be the presiding judge of the appellate division and shall preside therein unless disqualified or otherwise unable to act. The other judges who are to sit in the appellate division at any session shall be designated by the presiding judge from among the judges assigned to the court from time to time pursuant to subsection 1 (b) (2): Provided, however, That only one of them shall be a judge of a court of record of the Northern Mariana Islands. The concurrence of two judges shall be necessary to any decision by the district court on the merits of an appeal but the presiding judge alone may make any appropriate orders with respect to an appeal prior to the hearing and determination therof on the merits and may dismiss an appeal for want of jurisdiction or failure to take or prosecute it in accordance with the applicable law or rules of procedure.

Sec. 4. // 48 USC 1694c. // (a) The relations between the courts established by the Constitution or laws of the United States and the courts of the Northern Mariana Islands with respect to appeals, certiorari, removal of causes, the issuance of writs of habeas corpus, and other matters or proceedings shall be governed by the laws of the United States pertaining to the relations between the courts of the United States and the courts of the several States in such matters and proceedings. except as otherwise provided in article IV of the covenant: Provided, That for the first fifteen years following the establishment of an appellate court of the Northern Mariana Islands the United States court of appeals for the judicial circuit which includes the Northern Mariana Islands shall have jurisdiction of appeals from all final decisions of the highest court of the Northern Mariana Islands from which a decision could be had in all cases involving the Constitution, // USC prec. title 1. // treaties, or laws of the United States, or any authority exercised thereunder, unless those cases are reviewable in the District Court for the Northern Mariana Islands pursuant to section 3 of this Act.

(b) Those portions of title 28 of the United States Code which apply to Guam or the District Court of Guam shall be applicable to the Northern Mariana Islands or the District Court for the Northern Mariana Islands, respectively, except as otherwise provided in article IV of the covenant. The district court established by this Act shall be a district court as that term is used in section 3006 A of title 18, United States Code.

Sec. 5. // 48 USC 1694d. // This Act shall come into force upon its approval or at the time proclaimed by the President for the Constitution of the Northern Mariana Islands to become effective, whichever is the later date.

Sec. 6. // 48 USC 1694e. // There is authorized to be appropriated such sums as may be necessary to carry out the purposes of this Act.

LEGISLATIVE HISTORY:

SENATE REPORT No 95 475 (Comm. on the Judiciary).

CONGRESSIONAL RECORD, Vol. 123 (1977):

Oct. 13, considered and passed Senate

Oct. 25, considered and passed House.

PUBLIC LAW 95-156, 91 STAT. 1264

95th CONGRESS, H.R. 9090 NOVEMBER 8, 1977 AN ACT To exempt disaster payments made in connection with the 1977 crops of wheat, feed grains, upland cotton, and rice from the payment limitations contained in the Agricultural Act of 1970 and the Agricultural Act of 1949.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, // 7 USC 1307. // That, notwithstanding any other provision of law, the term "payments" as used in section 101 of the Agricultural Act of 1970, as amended, // 7 USC 1307. // and section 101 (g) (13) of the Agricultural Act of 1949, as amended, // 7 USC 1441. // shall not include any part of any payment which is determined by the Secretary of Agriculture to represent compensation for disaster loss with respect to the 1977 crops of wheat, feed grains, upland cotton, and rice.

LEGISLATIVE HISTORY:

HOUSE REPORTS: No. 95 - 638, pt. 1(Comm. on Agriculture) and 95 - 638, pt. 2 (Comm. on Appropriations).

CONGRESSIONAL Record, Vol. 123 (1977):

Oct. 17, considered and passed House.

Oct. 25, considered and passed Senate.

PUBLIC LAW 95-155, 91 STAT. 1257

95th CONGRESS, H.R. 5101 NOVEMBER 8, 1977 AN ACT To authorize appropriations for activities of the Environmental Protection Agency, 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 " Environmental Research, Development, and Demonstration Authorization Act of 1978".

Sec. 2. (a) There are authorized to be appropriated to the Environmental Protection Agency for environmental research, development, and demonstration activities for fiscal year 1978--,

(1) $92,500,000 for water quality activities authorized under the Federal Water Pollution Control Act

// 33 USC 1251 //

of which--,

(A) $25,200,000 is for the Health and Ecological Effects program;

(B) $9,300,000 is for the Industrial Processes program;

(C) $6,069,000 is for the Monitoring and Technical Support program;

(D) $22,300,000 is for the Public Sector Activities program; and

(E) $29,631,000 is for the Engergy program.

(2) $10,800,000 for activities authorized under the Federal Insecticide, Fungicide, and Rodenticide Act, // 7 USC 136 // in the Health and Ecological Effects program.

(3) $16,000,000 for water supply activities authorized under the Safe Drinking Water Act, // 42 USC 300f // in the Public Sector program.

(4) $8,200,000 for toxic substance control activities authorized under the Toxic Substances Control Act, // 15 USC 2601 // in the Health and Ecological Effects program.

(5) $830,000 for radiation activities authorized under the Public Health Act, // 42 USC 201 // in the Health and Ecological Effects progra,.

(6) $35,000,000 for air quality activities authorized under the Clean Air Air, // 42 USC 1857 // which shall be in addition to funds previously authorized in the Clean Air Act Amendments of 1977 (Public Law 95 - 95, so that the total amount authorized for such activities in fiscal year 1978 is $155,000,000, of which--,

(A) $36,000,000 is for the Health and Ecological

Effects program;

(B) $1180008000 is for the Monitoring and Technical Support program;

(C) $7,000,000 is for the Industrial Processes program; and

(D) $101,000,000 is for the Engergy program.

(7) $31,273,000 for interdisciplinary activities, of which--,

(A) $9,230,000 is for the Health and Ecological Effects program;

(B) $6,066,000 is for the Industrial Processes program;

(C) $1,599,000 is for the Public Sector Activities program; and

(D) $14,378,000 is for the Monitoring and Technical Support program.

(b) In addition to any other sums authorized by this section or by other provisions of law--,

(1) there are authorized to be appropriated to the Administrator of the Environmental Protection Agency for fiscal year 1978, $10,000,000 for long-term research and development in accordance with section 6 of this Act;

(2) there are authorized to be appropriated to the Administrator, for fiscal year 1978, $2,000,000 for training of health scientists needed for environmental research and development in fields where there are national shortages of trained personnel; and

(3) there are authorized to be appropriated to the Administrator, for fiscal year 1978, $3,000,000 to implement the study authorized in section 103 (d) of the Clean Air Act Amendments of 1977

(Public Law 95 - 95).

(c) There is authorized to be appropriated to the Administrator $19,000,000 for fiscal year 1978 for program management and support related to environmental research and development.

(d) No funds may be transferred from any particular category listed in subsection (a) or (b) to any other category or categories listed in either such subsection if the total of the funds so transferred from that particular category would exceed 10 per centum thereof, and no funds may be transferred to any particular category listed in subsection (a) or (b) from any other category or categories listed in either such subsection if the total of the funds so transferred to that particular category would exceed 10 per centum thereof, unless--,

(1) a period of thirty legislative days has passed after the Administrator of the Environmental Protection Agency or his designee has transmitted to the Speaker of the House of Representatives and to the President of the Senate a written report containing a full and complete statement concerning the nature of the transfer and the reason therefor, or

(2) each committee of the House of Representatives and the Senate having jurisdiction over the subject matter involved, before the expiration of such period, has transmitted to the Administrator written notice to the effect that such committee has no objection to the proposed action.

Sec. 3. Appropriations made pursuant to the authority provided in section 2 of this Act shall remain available for obligation for expenditure, or for obligation and expenditure, for such period or periods as may be specified in the Acts making such appropriations.

Sec. 4. // 42 USC 4361a. // The Administrator of the Environmental Protection Agency, in each annual revision of the five-year plan transmitted to the Congress under section 5 of Public Law 94 - 475, // 42 USC 4361. // shall include budget projections for a "no-growth" budget, for a "moderate-growth" budget, and for a "high-growth" budget. In addition, each such annual revision shall include a detailed explanation of the relationship of each budget projection to the existing laws which authorize the Administrations's environmental research, development, and demonstration programs.

Sec. 5. // 42 USC 300j - 3a. // (a) The Administrator of the Environmental Protection Agency shall offer grants to public sector agencies for the purposes of--,

(1) assisting in the development and demonstration (including construction) of any project which will demonstrate a new or improved method, approach, or technology for providing a dependably safe supply of drinking water to the public; and

(2) assisting in the development and demonstration (including construction) of any project which will investigate and demonstrate health and conservation implications involved in the reclamation, recycling, and reuse of wastewaters for drinking and the processes and methods for the preparation of safe and acceptable drinking water.

(b) Grants made by the Administrator under this section shall be subject to the following limitations:

(1) Grants under this section shall not exceed 66 2/3 per centum of the total cost of construction of any facility and 75 per centum of any other costs, as determined by the Administrator.

(2) Grants under this section shall not be made for any project involving the construction or modification of any facilities for any public water system in a State unless such project has been approved by the State agency charged with the responsibility for safety of drinking water (or if there is no such agency in a State, by the State health authority).

(3) Grants under this section shall not be made for any project unless the Administrator determines, after consultation, that such project will serve a useful purpose relating to the development and demonstration of new or improved techniques, methods, or technologies for the provision of safe water to the public for drinking.

(c) There are authorized to be appropriated for the purposes of this section $28,000,000 for fiscal year 1978.

Sec. 6. // 42 USC 4363. // (a) The Administrator of the Environmental Protection Agency shall establish a separately identified program to conduct continuing and long-term environmental research and development. Unless otherwise specified by law, at least 15 per centum of any funds appropriated to the Administrator for environmental research and development under section 2 (a) of this Act or under any other Act shall be allocated for long-term environmental research and development under this section.

(b) The Administrator, after consulation with the Science Advisory Board, shall submit to the President and the Congress a report concerning the desirability and feasibility of establishing a national environmental laboratory, or a system of such laboratories, to assume or supplement the long-term environmental research functions create by subsection (a) of this section. Such report shall be submitted on or before March 31, 1978, and shall include findings and recommendations concerning--,

(1) specific types of research to be carried out by such laboratory or laboratories;

(2) the coordination and integration of research to be conducted by such laboratory or laboratories with research conducted by existing Federal or other research facilities;

(3) methods for assuring continuing long-range funding for such laboratory or laboratories; and

(4) other administrative or legislative actions necessary to facilitate the establishment of such laboratory or laboratories.

Sec. 7. // 42 USC 4364. // (a) The Administrator of the Environmental Protection Agency shall assure that the expenditure of any funds appropriated pursuant to this Act or any other provision of law for environmental research and development related to regulatory program activities shall be coordinated with and reflect the research needs and priorities of the program offices, as well as the overall research needs and priorities of the Agency, including those defined in the five-year research plan.

(b) For purposes of subsection (a), the appropriate program offices are--,

(1) the Office of Air and Waste Management, for air quality activities;

(2) the Office of Water and Hazardous Materials, for water quality activities and water supply activities;

(3) the Office of Pesticides, for environmental effects of pesticides;

(4) the Office of Solid Waste, for solid wast activities;

(5) the Office of Toxic Substances, for toxic substance activities;

(6) the Office of Radiation Programs, for radiation activities; and

(7) the Offcie of Noise Abatement and Control, for noise activities.

(c) The Administrator shall submit to the President and the Congress a report concerning the most appropriate means of assuring, on a continuing basis, that the research efforts of the Agency reflect the needs and priorities of the regulatory program offices, while maintaining a high level of scientific quality. Such report shall be submitted on or before March 31, 1978.

Sec. 8. // 42 USC 4365. // (a) The Administrator of the Environmental Protection Agency shall establish a Science Advisory Board which shall provide such scientific advice as the Administrator requests.

(b) Such Board shall be composed of at least nine members, one of whom shall be designated Chairman, and shall meet at such times and places as may be designated by the Chairman of the Board in consultation with the Administrator. Each member of the Board shall be qualified by education, training, and experience to evaluate scientific and technica information on matters referred to the Board under this section.

(c) In addition to providing scientific advice when requested by the Administrator under subsection (a), the Board shall review and comment on the Administration's five-year plan for environmental research, development, and demonstration provided for by section 5 of Public Law 94 - 475 // 42 USC 4361. // and on each annual revision thereof. Such review and comment shall be transmitted to the Congress by the Administrator, together with his comments theron, at the time of the transmission to the Congress of the annual revision involved.

(d) The Board shall conduct a review of and submit a report to the Administrator, the President, and the Congress, not later than October 1, 1978, concerning--,

(1) the health effects research authorized by this Act and other laws;

(2) the procedures generally used in the conduct of such research;

(3) the internal and external reporting of the results of such research;

(4)the review procedures for such research and results;

(5) the procedures by which such results are used in internal and external recommendations on policy, regulations, and legislation; and

(6) the findings and recommendations fo the report to the House Committee on Science and Technology entitled " The Environmental Protection Agency's Research Program with primary emphasis on the Community Health and Envoronmental Surveillance System (CHESS): An Investigative Report".

The review shall focus special attention on the procedural safeguards required to preserve the scientific integrity of such research and to insure reporting and use of the results of such research in subsequent recommendations. The report shall include specific recommendations on the results of the review to ensure scientific integrity throughout the Agency's health effects research, review, reporting, and recommendation process.

(e) (1) The Administrator, at the time any proposed criteria document, standard, limitation, or regulation under the Clean Air Act, // 42 USC 1857 // the Federal Water Pollution Control Act, // 33 USC 1251 // the Resource, Conservation and Recovery Act of 1976, // 42 USC 6901 // the Noise Control Act // 42 USC 4901 // the Toxic Substances Control Act // 15 USC 2601 // or the Safe Drinking Water Act // 42 USC 300f // or under any other authority of the Administrator, is provided to any other Federal agency for formal review and comment, shall make available to the Board such proposed criteria document, standard, limitation, or regulation, together with relevant scientific and technical information in the possession of the Environmental Protection Agency on which the proposed action is based.

(2) The Board may make available to the Administrator, within the time specified by the Administrator, its advice and comments on the adequacy of the scientific and technical basis of the proposed criteria document, standard, limitation, or regulation, together with any pertinent information in the Board's possession.

(f) In preparing such advice and comments, the Board shall avail itself of the technical and scientific capabilities of any Federal agency, including the Environmental Protection Agency and any national environmental laboratories.

(g) The Board is authorized to constitute such member committees and investigative panels as the Administrator and the Board find necessary to carry out this section. Each such member committee or investigative panel shall be chaired by a member of the Board.

(h) (1) Upon the recommendation of the Board, the Administrator shall appoint a secretary, and such other employees as deemed necessary to exercise and fulfill the Board's powers and responsibilities. The compensation of all employees appointed under this paragraph shall be fixed in accordance with chapter 51 and subchapter III of chapter 53 of title 5 of the United States Code. // 5 USC 5101, 5331. //

(2) Members of the Board may be compensated at a rate to be fixed by the President but not in excess of the maximum rate of pay for grade GS - 18, as provided in the General Schedule under section 5332 of title 5 of the United States Code. // 5 USC 5332 //

(i) In carrying out the functions assifned by this section, the Board shall consult and coordinate its activities with the Scientific Advisory Panel established by the Administrator pursuant to section 25 (d) of the Federal Insecticide, Fungicide, and Rodenticide Act, as amended. // 7 USC 13w. //

Sec. 9. // 42 USC 4366. // (a) The Administrator of the Environmental Protection Agency, in consultation and cooperation with the heads of other Federal agencies, shall take such actions on a continuing basis as may be necessary or appropriate--,

(1) to identify environmental research, development, and demonstration activities, within and outside the Federal Government, which may need to be more effectively coordinated in order to minimize unnecessary duplication of programs, projects, and research facilities;

(2) to determine the steps which might be taken under existing law, by him and by the heads of such other agencies, to accomplish or promote such coordination, and to provide for or encourage the taking of such steps; and

(3) to determine the additional legislative actions which would be needed to assure such coordination to the maximum extent possible.

The Administrator shall include in each annual revision of the five-year plan provided for by section 5 of Public Law 94 - 475 // 42 USC 4361. // a full and complete report on the actions taken and determinations made during the preceding year under this subsection, and may submit interim reports on such actions and determinations at such other times as he deems appropriate.

(b) The Administrator of the Environmental Protection Agency shall coordinate environmental research, development, and demonstration programs of such Agency with the heads of other Federal agencies in order to minimize unnecessary duplication of programs, projects, and research facilities.

(c) (1) In order to promote the coordination of environmental research and development activities, andto assure that the action taken and methods used (under subsection (a) and otherwise) to bring about such coordination will be as effective as possible for that purpose, the Council on Environmental Quality in consultation with the Office of Science and Technology Policy shall promptly undertake and carry out a joint study of all aspects of the coordination of environmental research and development. The Chairman of the Council shall prepare a report on the results of such study, together with such recommendations (including legislative recommendations) as he deems appropriate, and shall submit such report to the President and the Congress not later than May 31, 1978.

(2) Not later than September 30, 1978, the President shall report to the Congress on steps he has taken to implement the recommendations included in the report under paragraph (1), including any recommendations he may have for legislation.

Sec. 10. // 42 USC 4361b. // The Administrator of the Environmental Protection Agency shall implement the recommendations of the report prepared for the House Committee on Science and Technology entitled " The Environmental Protection Agency Research Program with primary emphasis on the Community Health and Environmental Surveillance System (CHESS): An Investigative Report", unless for any specific recommendation he determines (1) that such recommendation has been implemented, (2) that implementation of such recommendation would not enhance the qulaity of the research, or (3) that implementation of such recommendation will require funding wiich is not available. Where such funding is not available, the Administrator shall request the required authorization or appropriation for such implementation. The Administrator shall report tthe status of such emplementation in each annual revision of the five-year plan transmitted to the Congress under section 5 of Public Law 94 - 475.

Sec. 11. The Administrator of the Environmental Protection Agency shall increase the number of personnel positions in the Health and Ecological Effects program to 862 positions for fiscal year 1978.

Sec. 12. // 42 USC 4367. // (a) Each officer or employee of the Environmental Protection Agency who--,

(1) performs any function or duty under this Act; and

(2) has any known financial interest in any person who applies for or receives grants, contracts, or other forms of financial assistance under this Act,

shall, beginning on February 1, 1978, annually file with the Administrator a written statement concerning all such interests held by such officer or employee during the preceding calendar year. Such statement shall be available to the public.

(b) The Administrator shall--,

(1) act within ninety days after the date of enactment of this Act--,

(A) to define the term "known financial interest" for purposes of subsection (a) of this section; and

(B) to establish the methods by which the requirement to file written statements specified in subsection (a) of this section will be monitored and enforced, including appropriated provision for the filing by such officers and employees of such statements and the review by the Administrator of such statements; and

(2) report to the Congress on June 1 of each calendar year with respect to such disclosures and the actions taken in regard thereto during the preceding calendar year.

(c) In the rules prescribed under subsection (b) of this section, the Administrator may identify specific positions of a nonpolicymaking nature within the Administration and provide that officers or employees occupying such positions shall be exempt from the requirements of this section.

(d) Any officer or employee who is subject to, and knowingly violates, this section, shall be fined not more than $2,500 or imprisoned not more than one year, or both.

Sec. 13. It is the national policy that to the maximum extent possible the procedures utilized for implementation of this Act shall encourage the drastic minimization of paperwork.

LEGISLATIVE HISTORY:

HOUSE REPORTS: No. 95 - 157 (Comm. on Science and Technology) and No. 95 - 722 (Comm. of Conference).

SENATE REPORT No. 95 - 188 accompanying S. 1417 (Comm. on Environment and Public Works).

CONGRESSIONAL RECORD, Vol. 123 (1977):

Apr. 19, considered and passed House.

May 27, considered and passed Senate, amended, in lieu of S. 1417.

Oct. 20, Senate agreed to conference report.

Oct. 25, House agreed to conference report.

PUBLIC LAW 95-154, 91 STAT. 1256

95th CONGRESS, H.J. RES. 611 NOVEMBER 7, 1977 JOINT RESOLUTION To extend the authority of the Federal Reserve banks to buy and sell certain obligations.

Resolved by the Senate and House of Representatives of the United States of America in Congress assembled, That section 14(b) of the Federal Reserve Act // 12 USC 355. // is amended by striking out " October 1, 1977" and inserting in lieu thereof " May 1, 1978," and by striking out " September 30, 1977" and inserting in lieu thereof " April 30, 1978".

LEGISLATIVE HISTORY:

CONGRESSIONAL RECORD, Vol. 123 (1977):

Oct. 31, considered and passed House.

Nov. 3, considered and passed Senate.

PUBLIC LAW 95-153, 91 STAT. 1255

95th CONGRESS, H.R. 4297 NOVEMBER 4, 1977 AN ACT To amend the Marine Protection, Research, and Sanctuaries Act of 1972 to authorize appropriations to carry out the provisions of such Act for fiscal year 1978.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 111 of the Marine Protection, Research, and Sanctuaries Act of 1972 (33 U.S.C. 1420) is amended--,

(1) by striking out "and" immediately after " September 30, 1976),"; and

(2) by adding immediately after "fiscal year 1977," the following: "and not to exceed $4,800,000 for fiscal year 1978,".

Sec. 2. Section 204 of such Act (33 U.S.C. 1444) is amended--,

(1) by striking out "and" immediately after " September 30, 1979),"; and

(2) by adding immediately after "fiscal year 1977" the following: ",and not to exceed $6,500,000 for fiscal year 1978".

Sec. 3. Section 304 of such Act (16 U.S.C. 1434) is amended--,

(1) by striking out "and" immediately after " September 30, 1976),";

(2) by adding immediately after "fiscal year 1977" the following:", and not to exceed $500,000 for fiscal year 1978".

Sec. 4. (a) The Administrator of the Environmental Protection Agency (hereinafter referred to in this section as the " Administrator") shall end the dumping of sewage sludge into ocean waters, or into waters described in section 101 (b) of Public Law 92 - 532, as soon as possible after the date of enactment of this section, but in no case may the Administrator issue any permit, or any renewal thereof (under title I of the Marine Protection, Research, and Sanctuaries Act of 1972) which authorizes any such dumping after December 31, 1981.

(b) For purposes of this section, the term "sewage sludge" means any solid, semisolid, or liquid waste generated by a municipal wastewater treatment plant the ocean dumping of which may unreasonably degrade or endanger human health, welfare, amenities, or the marine environment, ecological systems, or economic potentialities.

LEGISLATIVE HISTORY:

HOUSE REPORTS No. 95 - 325. pt. 1 (Comm. on Merchant Marine and Fisheries) and No. 95 - 325, pt. 2 (Comm. on Science and Technology).

SENATE REPORTS No. 95 - 216 accompanying S. 1425 (Comm. on Commerce, Science, and Transporation) and No. 95 - 189 accompanying S. 1527 (Comm. on Environment and Public Works).

CONGRESSIONAL RECORD, Vol. 123 (1977):

Oct. 6, 11, 14, considered and passed House.

Oct. 20, considered and passed Senate.

WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 13, No. 45:

Nov. 4, Presidential statement.

PUBLIC LAW 95-152, 91 STAT. 1254

95th CONGRESS, H.R. 2817 NOVEMBER 4, 1977 AN ACT To provide for certain additions to the Tinicum National Environmental Center.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the Act of June 30, 1972, entitled " An Act to provide for the establishment of the Tinicum National Environmental Center in the Commonwealth of Pennsylvania, and for other purposes" (16 U.S.C. 668dd, note) is amended--,

(1) by striking out " Wanamaker Avenue" in the last sentence of section 2 and inserting in lieu thereof " Darby Creek"; and

(2) by amending section 7(b) to read as follows:

"(b) Beginning with fiscal year 1978, there are authorized to be appropriated, in addition to the appropriations authorized under subsection (a), $8,850,000 to carry out the purposes of this Act.".

LEGISLATIVE HISTORY:

HOUSE REPORT No. 95 - 253 (Comm. on Merchant Marine and Fisheries).

SENATE REPORT No. 95 - 185 accompanying S. 1237 (Comm. on Environment and Public Works).

CONGRESSIONAL RECORD, Vol. 123 (1977):

May 10, considered and passed House.

Oct. 19, considered and passed Senate.

WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS. Vol. 13, No. 45:

Nov. 4, Presidential statement.

PUBLIC LAW 95-151, 91 STAT. 1245, FAIR LABOR STANDARDS AMENDMENTS OF 1977.

95th CONGRESS, H.R. 3744 NOVEMBER 1, 1977 AN ACT To amend the Fair Labor Standards Act of 1938 to increase the minimum wage rate under that Act, 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: REFERENCE TO ACT

Section 1. (a) This Act // 29 USC 201 // may be cited as the " Fair Labor Standards Amendments of 1977".

(b) Whenever in this Act an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the Fair Labor Standards Act of 1938 (29 U.S.C. 201 - 219).

INCREASE IN MINIMUM WAGE

Sec. 2. (a) Section 6(a)(1) (29 U.S.C. 206(a)(1)) is amended to read as follows:

"(1) not less than $2.65 an hour during the year beginning January 1, 1978, not less than $2.90 an hour during the year beginning January 1, 1979, not less than $3.10 an hour during the year beginning January 1, 1980, and not less than $3.35 an hour after December 31, 1980, except as otherwise provided in this section;".

(b) Section 6(a)(5) (29 U.S.C. 206(a)(5)) is amended to read as follows:

"(5) if such employee is employed in agriculture, not less than the minimum wage rate in effect under paragraph (1) after December 31, 1977.".

(c) Section 6(b) (29 U.S.C. 206(b)) is amended by striking out "wages at the following rates:" and paragraphs (1) through (4) and inserting in lieu thereof the following: "wages at the following rate: Effective after December 31, 1977, not less than the minimum wage rate in effect under subsection (a)(1).".

(d)(1) Section 6(c) (29 U.S.C. 206(c)) is amended by striking out paragraphs (2) through (4) and inserting in lieu thereof the following:

"(2)(A) Each wage order rate under a wage order described in paragraph (1) which on December 31, 1977, is at least $2 an hour shall, except as provided in paragraph (3), be increased--m

"(i) effective January 1, 1978, by $0.25 an hour or by such greater amount as may be recommended by a special industry committee under section 8, and

"(ii) effective January 1, 1979, and January 1 of each

succeeding year, by $0.30 an hour or by such greater amount as may be so recommended by such a special industry committee.

"(B) Each wage order rate under a wage order described in paragraph (1) which on December 31, 1977, is less than $2 an hour shall, except as provided in paragraph (3), be increased--,

"(i) effective January 1, 1978, by $0.20 an hour or by such greater amount as may be recommended by a special industry committee under section 8, and

"(ii) effective January 1, 1979, and January 1 of each succeeding year--,

"(I) until such wage order rate is not less than $2.30 an hour, by $0.25 an hour or by such greater amount as may be so recommended by a special industry committee, and "(II) if such wage order rate is not less than $2.30 an hour, by $0.30 an hour or by such greater amount as may be so recommended by a special industry committee.

"(C) In the case of any employee in agriculture who is covered by a wage order issued by the Secretary pursuant to the recommendations of a special industry committee appointed pursuant to section 5, to whom the rate or rates prescribed by subsection (a) (5) of this section would otherwise apply, and whose hourly wage is increased above the wage rate prescribed by such wage order by a subsidy (or income supplement) paid, in whole or in part by the government of Puerto Rico, the applicable increases prescribed by subparagraph (A) or (B) shall be applied to the sum of the wage rate in effect under such wage order and the amount by which the employee's hourly wage is increased by the subsidy (or income supplement) above the wage rate in effect under such wage order.".

(2) (A) Section 6 (c) (1) is amended (i) by striking out "subsections (a) and (b)" and inserting in lieu thereof "subsection (a) (1)", (ii) by inserting "(A)" before "heretofore", and (iii) by inserting before the period the following: ", and (B) which prescribes a wage order rate which is less than the wage rate in effect under subsection (a) (1)".

(B) Paragraphs (5) and (6e of section 6(c) are redesignated as paragraphs (3) and (4), respectively.

(C) Paragraph (3) of such section (as so redesignated) is amended (i) by striking out "subsection (a) or (b)" and inserting in lieu thereof "subsection (a) (1)", and (ii) by striking out "such subsection" and inserting in lieu thereof "subsection (a) (1)".

(D) Paragraph (4) of such section (as so redesignated) is amended by striking out "or (3)".

(3) Section 8 (a) is amended by inserting after the first sentence the following new sentence: " The Secretaryshall, from time to time, convene an industry committee or committees, appointed pursuant to section 5, // 29 USC 208. // and any such industry committee--,

"(1) shall, from time to time, recommend the minimum wage rates to be paid by employers who are in Puerto Rico, in the Virgin Islands, or in both places and who but for section 6 (c) would be subject to the minimum wage requirements of section 6 (a) (1), and

"(2) may, from time to time, recommend increases in the incremental increases authorized by section 6 (c) (2).".

(e) (1) There is established the Minimum Wage Study Commission (hereinafter in this subsection referred to as the " Commission") which shall conduct a study of the Fair Labor Standards Act of 1938 // 29 USC 204 // and the social, political, and economic ramifications of the minimum wage, overtime, and other requirements of that Act. // 29 USC 201. // Such study shall include but not be limited to--,

(A) the beneficial effects of the minimum wage, including its effect in ameliorating poverty among working citizens;

(B) the inflationary impact (if any) of increases in the minimum wage prescribed by that Act;

(C) the effect (if any) such increases have on wages paid employees at a rate in excess of the rate prescribed by that Act;

(D) the economic consequence (if any) of authorizing an automatic increase in the rate prescribed in that Act on the basis of an increase in a wage, price, or other index;

(E) the employment and unemployment effects (if any) of providing a different minimum wage rate for youth, and the employment and unemployment effects (if any) on handicapped and aged individuals of an increase in such rate and of providing a different minimum wage rate for such individuals;

(F) the effect (if any) of the full-time student certification program on employment and unemployment;

(G) the employment and unemployment effects (if any) of the minimum wage:

(H) the exemptions from the minimum wage and overtime requirements of that Act;

(I) the relationship (if any) between the Federal minimum wage rates and public assistance programs, including the extent to which employees at such rates are also eligible to receive food stamps and other public assistance;

(J) the overall level of noncompliance with that Act; and

(K) the demographic profile of minimum wage workers.

(2) The Commission shall conduct a study concerning the extent to which the exemptions from the minimum wage and overtime requirements of the Fair Labor Standards Act of 1938 may // 29 USC 201. // may apply to employees of conglomerates, and shall make a report, within one year after the date of the appointment of the members of the Commission, of the results of such study. For the purposes of this paragraph a "conglomerate" means an establishment (A) which controls, is controlled by, or is under common control with, another establishment the activities of which are not related for a common business purpose to the activities of the establishment employing such employees and (B) whose annual gross volume of sales made or business done, when combined with the annual gross volume of sales made or business done by each establishment which controls, is controlled by, or is under common control with the establishment employing such employee, exceeds $100,000,000 (exclusive of excise taxes at the retail level which are separately stated). The report shall include an analysis of the effects of eliminating the exemptions from the minimum wage and overtime requirements of such Act that may currently apply to the employees of such conglomerates.

(3) The Commission shall make a report of the results of the study conducted pursuant to paragraph (1) thirty-six months after the date of the appointment of the members of the Commission. The report shall include such recommendations for legislation as the Commission determines are appropriate. The Commission may make interim or additional reports which it determines are appropriate. Each report shall be made to the President and to the Congress. The Commission shall cease to exist thirty days after the submission of the report required by this paragraph.

(4) (A) The Commission shall consist of eight members as follows:

(i) Two members appointed by the Secretary of Labor.

(ii) Two members appointed by the Secretary of Commerce.

(iii) Two members appointed by the Secretary of Agriculture

(iv) Two members appointed by the Secretary of Health, Education, and Welfare.

The appointments authorized under this paragraph shall be made within 180 days after the date of enactment of this subsection.

(B) The Chairperson shall be selected by the members of the Commission. Any vacancy in the Commission shall not affect its powers and shall be filled in the same manner in which the original appointment was made.

(C) (i) Except as provided in clause (ii), members of the Commission who are officers or employees of the Federal Government shall serve without compensation. Other members, while engaged in the activities of the Commission, shall be paid at a rate equal to the per diem equivalent of the annual rate payable for grade GS - 18 of the General Schedule under section 5332 of the title 5, United States Code. // 5 USC 5332 //

(ii) While away from their homes or regular places of business in the performance of services for the Commission, members of the Commission shall be allowed travel expenses, including per diem in lieu of subsistence, in the same manner as persons employed intermittently in the Government service are allowed expenses under section 5703 of title 5 of the United States Code.

(5) (A) The Commission may prescribe such rules as may be necessary to carry out its duties under this subsection.

(B) The Commission may hold such hearings, sit and act at such times and places, take such testimony, and receive such evidence as it deems advisable.

(C) Upon request of the Commission, the head of any Federal department or agency is authorized to detail, on a reimbursable basis, any of the personnel of such department or agency to the Commission to assist it in carrying out its duties under this subsection.

(D) The Department of Labor shall furnish such professional, technical, and research assistance as required by the commission.

(E) the Administrator of General Services shall provide to the Commission on a reimbursable basis such administrative support services as the Commission may request to carry out its duties under this subsection.

(F) The Commission may secure directly from any department or agency of the United States such information as the Commission may require to carry out its duties under this subsection. Upon request of the Commission, the head of any such department or agency shall furnish such information to the Commission.

(G) The Commission may use the United States mails in the same manner and upon the same conditions as other departments and agencies of the United States.

(6) (A) The Chairperson may appoint an executive director of the Commission who shall perform such duties as the Chairperson may prescribe.

(B) With approval of the Chairperson, the executive director may appoint and fix the pay of such clerical personnel as are necessary for the Commission to carry out its duties.

(C) The executive director and staff shall be appointed without regard to the provisions of title 5, United States Code, governing appointments in the competitive service, and shall be paid without regard to the provisions of chapter 51 and subchapter iii of chapter 53 of such title // 5 USC 5101 // relating to classification and General Scedule pay rates but at rates not in excess of the annual rate payable for grade GS - 18 of the General Schedule under section 5332 of such title. // 5 USC 5332 //

(D) The executive director, with the concurrence of the Chairperson, may obtain temporary and intermittent services of experts and consultants in accordance with the provisions of section 3109 of title 5, United States Code.

TIP CREDIT

Sec. 3. (a) Effective January 1, 1978, section 3(t) (29 U.S.C. 203( t)) is amended by striking out "20" and inserting in lieu thereof "$30".

(b) (1) Effective January 1, 1979, section 3 (m) (29 U.S.C. 203 (m)) is amended by striking out "50 per centum" and inserting in lieu thereof "45 per centum".

(2) Effective January 1, 1980, such section is amended by striking out "45 per centum" and insertinf in lieu therof "40 per centum".

EMPLOYEES OF CONCESSIONERS IN NATIONAL PARKS AND FORESTS AND IN THE NATIONAL WILDLIFE REFUGE SYSTEM

Sec. 4. (a) Section 13 (a) (3) (29 US.SC. 213 (a) (3) is amended by inserting before the semicolon the following: ",except that the exemption from sections 6 and 7 // 29 USC 206, 207. // provided by this paragraph does not apply with respect to any employee of a private entity engaged in providing services or facilities (other than, in the case of the exemption from section 6, a private entity engaged in providing services and facilities directly related to skiing) in a national park or a national forest, or on land in the National Wildlife Refuge System, under a contract with the Secretary of the Interior or the Secretary of Agriculture".

(b) Section 13 (b) (29 U.S.C. 213 (b)) is amended (A) by striking out the period at the end of paragraph (28) and inserting in lieu thereof "; or ", and (B) by adding after such paragraph the following new paragraph:

"(29) any employee of an amusement or recreational establishment located in a national park or national forest or on land in the National Wildlife Refuge System if such employee (A) is an employee of a private entity engaged in providing services or facilities in a national park or national forest, or on land in the National Willife Refuge System, under a contract with the Secretary of the Interior or the Secretary of Agriculture, and (B) receives compensation for employment in excess of fifty-six hours in any workweek at a rate not less than one and one-half times the regular rate at which he is employed.".

SHADE-GROWN TOBACCO EMPLOYEES

Sec. 5. Section 13 (b) (22) (29 U.S.C. 213(b) (22)) is repealed.

COTTON GINNING EMPLOYEES

Sec. 6. (a) Section 13(b) (25) (29 U.S.C. 213(b) (25)) is repealed.

(b) Section 13 is amended by adding after subsection (h) the following new subsection:

"(i) The provisions of section 7 shall not apply for a period or periods of not more than fourteen workweeks in the aggregate in any period of fifty-two consecutive weeks to any employee who--,

"(1) is engaged in the ginning of cotton for market in any place of employment located in a county where cotton is grown in commercial quantities; and

"(2) receives for any such employment during such workweeks--,

"(A) in excess of ten hours in any workday, and "(B) in excess of forty-eight hours in any workweek,

compensation at a rate not less than one and one-half times the regular rate at which he is employed. No week included in any fifty-two week period for purposes of the preceding sentence may be included for such purposes in any other fifty-two week period.".

SUGAR EMPLOYEES

Sec. 7. (a) Section 13(b) (26) (29 U.S.C. 213(b) (26)) is repealed.

(b) Section 13 is amended by inserting after the subsection added by section 6 the following new subsection:

"(j) The provisions of section 7 // 29 USC 207. // shall not apply for a period or periods of not more than fourteen workweeks in the aggregate in any period of fifty-two consecutive weeks to any employee who--,

"(1) is engaged in the processing of sugar beets, sugar beet molasses, or sugar cane into sugar (other than refined sugar) or syrup; and

"(2) receives for any such employment during such workweeks--,

"(A) in excess of ten hours in any workday, and "(B) in excess of forty-eight hours in any workweek,

compensation at a rate not less than one and one-half times the regular rate at which he is employed. No week included in any fifty-two week period for purposes of the preceding sentence may be included for such purposes in any other fifty-two week period".

AGRICULTURAL HAND HARVEST LABORERS

Sec. 8. Section 13(c) (29 U.S.C. 213(c)) is amended--,

(1) in paragraph (1) by inserting after "paragraph (2)" the following: "or (4)", and

(2) by adding after paragraph (3) the following new paragraph:

"(4) (A) An employer or group of employers may apply to the Secretary for a waiver of the application of section 12 // 29 USC 212. // to the employment for not more than eight weeks in any calendar year of individuals who are less than twelve years of age, but not less than ten years of age, as hand harvest laborers in an agricultural operation which has been, and is customarily and generally recognized as being, paid on a piece rate basis in the region in which such individuals would be employed. The Secretary may not grant such a waiver unless he finds, based on objective data submitted by the applicant, that--,

"(i) the crop to be harvested is one with a particularly short harvesting season and the application of section 12 would cause severe economic disruption in the industry of the employer or group of employers applying for the waiver;

"(ii) the employment of the individuals to whom the waiver would apply would not be deleterious to their health or wellbeing;

"(iii) the level and type of pesticieds and other chemicals used would not have an adverse effect on the health or well-being of the individuals to whom the waiver would apply;

"(iv) individuals age twelve and above are not available for such employment; and

"(v) the industry of such employer or group of employers has traditionally and substantially employed individuals under twelve years of age without displacing substantial job opportunities for individuals over sixteen years of age.

"(B) Any waiver granted by the Secretary under subparagraph (A) shall require that--,

"(i) the individuals employed under such waiver be employed outside of school hours for the school district where they are living while so employed;

"(ii) such individuals while so employed commute daily from their permanent residence to the farm on which they are so employed; and

"(iii) such individuals be employed under such waiver (I) for not more than eight weeks between June 1 and October 15 of any calendar year, and (II) in accordance with such other terms and conditions as the Secretary shall prescribe for such individuals' protection.".

RETAIL AND SERVICE ESTABLISHMENT COVERAGE

Sec. 9. (a) Section 3 (s) (29 U.S.C. 203 (s) is amended by renumbering paragraphs (2), (3), (4), and (5) as paragraphs (3), (4), (5), and (6), respectively, and inserting after paragraph (1) the following:

"(2) is an enterprise which is comprised exclusively of one or more retail or service establishments, as defined in section 13 (a) (2), and whose annual gross volume of sales made or business done is not less than $250,000 (exclusive of excise taxes at the retail level which are separately stated), beginning July 1, 1978, whose annual gross volume of sales made or business done is not less than $275,000 (exclusive of excise taxes at the retail level which are separately stated), beginning July 1, 1980, whose annual gross volume of sales made or business done is not less than $325,000 (exclusive of excise taxes at the retail level which are separately stated), and after December 31, 1981, whose annual gross volume of sales made or business done is not less than $362,500 (exclusive of excise taxes at the retail level which are separately stated);".

(b) Paragraph (1) of section 3(s) is amended by adding after "and beginning February 1, 1969, is an enterprise" the following:", other than an enterprise which is comprised exclusively of retail or service establishments and which is described in paragraph (2),".

(c) Section 3(s) is amended by adding at the end the following: " Notwithstanding paragraph (2), and enterprise which is comprised of one or more retail or service establishments, which on June 30, 1978, was subject to section 6 (a) (1), and which because of a change in the dollar volume standard in such paragraph prescribed by the Fair Labor Standards Amendments of 1977 is not subject to such section, shall, if its annual gross volume of sales made or business done is not less than $250,000 (exclusive of excise taxes at the retail level which are separately stated), pay its employees not less than the minimum wage in effect under such section on the day before such change takes effect and shall pay its employees in accordance with section 7. // 29 USC 207. // A violation of the preceding sentence shall be considered a violation of section 6 or 7, as the case may be.".

(d) Section 13 (a) (2) // 29 USC 213. // is amended by striking out "section 3 (s) (4)" and inserting in lieu thereof "section 3(s) (5)".

Sec. 10. (a) Section 16 (b) (29 U.S.C. 216 (b)) is amended by adding immediately after the first sentence the following new sentence: " Any employer who violates the provisions of section 15(a) (3) of this Act, // 29 USC 215. // shall be liable for such legal or equitable relief as may be appropriate to effectuate the purposes of section 15(a) (3), including without limitation employment, reinstatement, promotion, and the payment of wages lost and an additional equal amount as liquidated damages.".

(b) Section 16(b) is further amended by--,

(1) by striking out " Action to recover such liability" and inserting in lieu thereof " An action to recover the liability prescribed in either of the preceding sentences",

(2) inserting "(1)" after "section 17 in which", and

(3) striking the period at the end of the last sentence and substituting the following:"or (2) legal or equitable relief is sought as a result ot alleged violations of section 15 (a) (3).".

(c) The third sentence of section 1l (c) is amended by inserting after "an action by or on behalf of any employee" the following: "to recover the liability specified in the first sentence of such subsection".

RELIGIOUS OR NON-PROFIT EDUCATIONAL CONFERENCE CENTERS

Sec. 11. Section 13 (a) (3) (29 U.S.C. 231 (a) (3) is amended by inserting after "recreational establishment," the following: "organized camp, or religious or non-profit educational conference center,".

STUDENTS

Sec. 12. (a) Section 14(B) (4) (B) (29 U.S.C. 214(b) (4) (B)) is amended by striking "four" each time it appears and substituting "six".

REDUCTION OF PAPERWORK FOR EMPLOYMENT OF STUDENTS BY SMALL BUSINESSES

Sec. 13. Section 14 (b) (4) (29 U.S.C. 214 (b) (4)) is amended by adding at the end the following new subparagraph:

"(D) To minimize paperwork for, and to encourage, small businesses to employ students under special certificates issued under paragraphs (1) and (2), the Secretary shall, by regulation or order, prescribe a simplified application form to be used by employers in applying for such a certificate for the employment of not more than six full-time students. Such an application shall require only--,

"(i) a listing of the name, address, and business of the applicant employer,

"(ii) a listing of the date the applicant began business, and

"(iii) the certification that the employment of such full-time students will not reduce the full-time employment opportunities of persons other than persons employed under special certificates.".

HOTEL, MOTEL, AND RESTARUANT EMPLOYEES

Sec. 14. (a) Effective January 18 1978, section 13(b) (8) (29 U.S.C. 213 (b) (8) is amended by striking out "forty-six hours" and inserting in lieu thereof "forty-four hours".

(b) Effective January 1, 1979, such section is repealed.

Sec. 15. (a) Except as provided in sections 3, 14, and subsection (b) of this section, // 29 USC 203 // the amendments made by this Act shall take effect January 1, 1978.

(b) The amendments made by sections 8, 9, 11, 12, and 13 shall take effect on the date of the enactment of this Act.

(c) On and after the date of the enactment of this Act, the Secretary of Labor shall take such administrative action as may be necessary for the implementation of the amendments made by this Act.

LEGISLATIVE HISTORY:

HOUSE REPORTS: No. 95 - 521 (Comm. on Education and Labor) and No. 95 - 711

(Comm. of Conference).

SENATE REPORTS: No. 95 - 440 accompanying S. 1871 and No. 95 - 446 (both from

Comm. on Human Resources) and No. 95 - 497 (comm. of Conference).

CONGRESSIONAL RECORD, Vol. 123 (1977):

Sept. 14, 15, considered and passed House.

Oct. 7. considered and passed Senate, amended, in lieu of

S. 18719

Oct. 19, Senate agreed to conference report.

Oct. 20, House agreed to conference report.

WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 13, No. 45:

Nov. 1, Presidential statement.

PUBLIC LAW 95-150, 91 STAT. 1243, MONTANA WILDERNESS STUDY ACT OF 1977

95th CONGRESS, S. 393 NOVEMBER 1, 1977 An Act To provide for the study of certain lands to determine their suitability for designation as wilderness in accordance with the Wilderness Act of 1964, 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 " Montana Wilderness Study Act of 1977". // 16 USC 1132 //

Sec. 5. (a) In furtherance of the purposes of the Wilderness Act (78 Stat. 890; 16 U.S.C. 1132), the Secretary of Agriculture (herein-after known as the " Secretary") shall, within five years after the date of enactment of this Act, review certain lands designated by this section, as to their suitability for preservation as wilderness, and report his findings to the President, as follows:

(1) certain lands in the Beaverhead National Forest, Montana, which are generally depicted on a map entitled " West Pioneer Wilderness Study Area" and dated April 1976, comprising approximately one hundred and fifty-one thousand acres, which shall be known as the West Pioneer Wilderness Study Area;

(2) certain lands in the Beaverhead and Gallatin National Forest, Montana, which are generally depicted on a map entitled " Taylor-Hilgard Wilderness Study Area" dated April 1976, comprising approximately two hundred and eighty-nine thousand acres, which shall be known as th Taylor-Hilgard Wilderness Study Area;

(3) certainlands in the Bitterroot National Forest, Montana, which are generally depicted on a map entitled " Bluejoint Wilderness Study Area" and dated April 1976, comprising approximately sixty-one thousand acres, which shall be known as the Bluejoint Wilderness Study Area;

(4) certain lands in the Bitterroot and Deerlodge National Forest, Montana, which are generally depicted on a map entitled " Sapphire Wilderness Study Area" and dated April 1976, comprising approximately ninety-four thousand acres, which shall be known as the Sapphire Wilderness Study Area;

(5) certain lands in the Kootenai National Forest, Montana, which are generally depicted on a map entitled " Ten Lakes Wilderness Study Area" and dated April 1976, comprising approximately thirty-four thousand acres, which shall be known as the Ten Lakes Wilderness Study Area;

(6) certain lands in the Lewis and Clark National Forest, Montana, which are generally depicted on a map entitled " Middle Fork Judith Wilderness Study Area" dated April 1976, comprising approximately eighty-one thousand acres, which shall be known as the Middle Fork Judith Wilderness Study Area;

(7) certain lands in the Lewis and Clark National Forest, Montana, which are generally depicted on a map entitled " Big Snowies Wilderness Study Area" and dated April 1976, comprising approximately niney-one thousand acres, which shall be known as the Big Snowies Wilderness Study Area;

(8) certain lands in the Gallatin National Forest, Montana, which are generally depicted on a map entitled "hyalite-Porcupine-Buffalo Horn Wilderness Study Area" and dated April 1976, comprising approximately one hundred and fifty-one thousand acres, which shall be known as the Hyalite-Porcupine-Buffalo Horn Wilderness Study Area; and

(9) certain lands in the Kootenai National Forest, Montana, which are generally depicted on a map entitled " Mount Henry Wilderness Study Area" and dated April 1976, comprising approximately twenty-one thousand acres, which shall be known as the Mount Henry Wilderness Sudy Area.

(b) The Secretary shall conduct his review, and the President shall advise the United States Senate and House of Representatives of his recommendations, in accordance with the provisions of subsections 3(b) and 3(d) of the Wilderness Act, // 16 USC 1132. // except that any reference in such subsections to areas in the national forests classified as "primitive" shall be deemed to be a reference to the wilderness study areas designated by this Act and except that the President shall advise the Congress if his recommendations with respect to such areas within seven years after the date of enactment of this Act: Provided, however, That the Secretary shall give at least sixty days' advance public notice of any hearing or other public meeting concerning such areas.

(c) The maps referred to in this section shall be on file and available for public inspection in the office of the Chief of the Forest Service, Department of Agriculture.

Sec. 3. (a) Except as otherwise provided by this section, // 16 USC 1132 // and subject to existing private rights, the wilderness study areas designated by this Act shall, until Congress determines otherwise, be administered by the Secretary of Agriculture so as to maintain their presently existing wilderness character and potential for inclusion in the National Wilderness Preservation System.

(b) Nothing in this Act shall be construed as affecting the jurisdiction or responsibilities of the several States with respect to wildlife and fish in the national forests.

(c) Nothing herein contained shall (1) limit the President in proposing, as part of his recommendation to Congress, the alteration of existing boundaries of any wilderness study area or recommending the addition to any such area of any contiguous area predominantly of wilderness value, or (2) limit the authority of the Secretary of Agriculture to establish, protect, study, or make recommendations to the President and Congress with respect to additional wilderness study areas within national forests in the State of Montana.

Sec. 4. There are hereby authorized to be appropriated after October 1, 1977, such sums as may be necessary to carry out the provisions of this Act. // 16 USC 1132 //

LEGISLATIVE HISTORY:

HOUSE REPORT No. 95 - 620 (Comm. on Interior and Insular Affairs).

SENATE REPORT No. 95 - 163 (Comm. on Energy and Natural Resources).

CONGRESSIONAL RECORD, Vol. 123 (1977):

May 18, considered and passed Senate.

Oct. 18, considered and passed House.

PUBLIC LAW 95-149, 91 STAT. 1242

95th CONGRESS, H.J.RES. 573 NOVEMBER 1, 1977 JOINT RESOLUTION Commemorating General Thaddeus Kosciuszko by presenting a memorial plaque in his memory to the people of Poland on behalf of the American people.

Whereas October 17, 1977 marks the two-hundredth anniversary of the historic battle of Saratoga;

Whereas General Thaddeus Kosciuszko served in the Conti- nental Army from 1776 through 1783, and played a vital and significant role in the battle of Saratoga;

Whereas the American people are indebted to Thaddeus Kosc- iuszko for his role in American independence; and

Whereas the American Council of Polish Cultural Clubs has made the arrangements for the erection of a memorial plaque near the sarcophagus of Thaddeus Kosciuszko in the Wawel Cathedral in Krakow, Poland, commemorating his dedication to the principles of freedom, and has obtained the approval of the Governments of Poland and the United States and the approp- riate Polish ecclesiastical authorities for the erection of the plaque bearing the words both in Polish and in English: " On the Bicentennial Anniversary of the victory at Saratoga Oct- ober 17, 1777, grateful America remembers General T. Kosciuszko fighter for your freedom and ours": Now, therefore, be it

Resolved by the Senate and House of Representatives of the United States of America in Congress assembled, That in an expression of esteem and gratitude by the American people, the plaque to be erected in the Wawel Cathedral in Krakow, Poland, on October 17, 1977, in the memory of General Thaddeus Kosciuszko, shall be presented by the Ambassador of the United States to Poland on behalf of the American people as a gift to the people of Poland.

LEGISLATIVE HISTORY:

SENATE REPORT No. 95 - 491 (Comm. on Foreign Relations).

CONGRESSIONAL RECORD, Vol. 123 (1977):

Sept. 30, considered and passed House.

Oct. 17, considered and passed Senate.

PUBLIC LAW 95-148, 91 STAT. 1230

95 TH CONGRESS, H.R. 7797

Oct. 31, 1977 FOREIGN ASSISTANCE AND RELATED RROGRAMS APPROPRIATIONS ACT, 1978 FOREIGN ASSISTANCE ACT An Act making appropriations for Foreign Assistance and related programs for the fiscal year ending September 30, 1978, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled. That the following sums are appropriated, out of any money in the Treasury not otherwise appropriated for Foreign Assistance and related programs for the fiscal year ending September 30, 1978, and for other purposes, namely:

TITLE I -- FOREIGN ASSISTANCE ACT ACTIVITIES Funds Appropriated to the President

For expenses necessary to enable the President to carry out the provisions of the Foreign Assistance Act of 1961. // 22 USC 2151 note. // as amended, and for other purposes, to remain available until September 30, 1978, unless otherwise specified herein, as follows:

ECONOMIC ASSISTANCE

Food and nutrition, Development Assistance: For necessary expenses to carry out the provisions of section 103, // 22 USC 2151a. // $515,000,000.

Population planning, Development Assistance: For necessary expenses to carry out the provisions of section 104(a), $155,000,000.

Health, Development Assistance: For necessary expenses to carry out the provisions of section 104(b), // 22 USC 2151b. // $95,000,000: Provided, That $2,000,000 shall be available for the World Health Organization Onchocerciasis Control Program.

Education and human resources development, Development Assistance: For necessary expenses to carry out the provisions of section 105, // 22 USC 2151c. // $76,000,000.

Technical assistance, energy, research, reconstruction, and selected development problems, Development Assistance: For necessary expenses to carry out the provisions of section 106, // 22 USC 2151d. // 0,000,000.

Loan allocation, Development Assistance: Of the new obligational authority appropriated under this Act to carry out the provisions of sections 103 - 106, // 22 USC 2151a-2151d. // not less than $310,500,000 shall be available for loans for fiscal year 1978: Provided, That of this amount $75,000,000 shall be available for loans repayable within forty years following the date on which the funds were initially made available under such loans: $87,000,000 shall be available for loans repayable within thirty years following such date; and $148,500,000 of such amount shall be available for loans repayable within twenty years following such date.

International organizations and programs: For necessary expenses to carry out the provisions of section 301 of the Foreign Assistance Act of 1961, // 22 USC 2221. // as amended, and of section 2 of the United Nations Environment Program Participation Act of 1973, // 22 USC 287 note. // $231,250,000, of which amount $500,000 shall be for the Organization of American States Special Cultural Account, $500,000 shall be for the Organization of American States Special Development Assistance Fund, and $1,500,000 shall be for the Organization of American States Special Multilateral Fund: Provided, That not more than $115,000,000 shall be available for the United Nations Development Program: Provided further, That no part of any such appropriation for " International organizations and programs" may be available to make any contribution of the United States to the United Nations University, not more than $25,000,000 shall be available for the United Nations Children's Fund, not more than $1,000,000 shall be available for the United Nations Educational and Training Program for Southern Africa, not more than $500,000 shall be available for the United Nations Nambia Institute, not more than $3,000,000 shall be available for the United Nations Decade for Women, not more than $2,000,000 shall be available for the United Nations Capital Development Fund, and not more than $5,600,000 shall be available to strengthen the International Atomic Energy Agency's safeguards program out of the total contribution made available to the Agency.

American schools and hospitals abroad: For necessary expenses to carry out the provisions of section 214, // 22 USC 2174. // $23,750,000.

Contingency fund: For necessary expenses, $5,000,000, to be used for the purposes set forth in section 451. // 22 USC 2261. //

International disaster assistance: For necessary expenses to carry out the provisions of section 491, // 22 USC 2292. // $18,500,000.

Italy relief and rehabilitation assistance: For necessary expenses to carry out the provisions of section 495 B. // 22 USC 2292h. // $25,000,000.

Sahel development program: For necessary expenses to carry out the provisions of section 121, // 22 USC 2151s. // $50,000,000, to remain available until expended: Provided, That no part of such appropriation may be available to make any contribution of the United States to the Sahel development program in excess of 10 per centum of the total contributions to such program.

International narcotics control: For necessary expenses to carry out the provisions of section 481, // 22 USC 2291. // $37,100,000: Provided, That not to exceed $3,000,000 shall be for the United Nations Fund for Drug Abuse Control: Provided further, That $12,475,000 shall be available only for programs in Mexico.

Payment to the Foreign Service Retirement and Disability Fund: For payment to the " Foreign Service Retirement and Disability Fund," as authorized by the Foreign Service Act of 1946, // 22 USC 801 note. // as amended, $21,450,000.

Overseas training (foreign currency program): For necessary expenses to carry out the provisions of section 612, // 22 USC 2362. // $400,000 in foreign currencies which the Treasury Department declares to be excess to the normal requirements of the United States.

Except for the Contingency Fund, unobligated balances as of September 30, 1977, of funds heretofore made available under the authority of the Foreign Assistance Act of 1961, // 22 USC 2151 note. // as amended, are hereby continued available for the fiscal year 1978, for the same appropriation account and under the same terms, conditions, and limitations as originally provided in appropriations Acts and amounts certified pursuant to section 1311 of the Supplemental Appropriation Act, 1955 // 31 USC 200. // as having been obligated against appropriations heretofore made under the authority of the Foreign Assistance Act of 1961, as amended are, if deobligated, hereby continued available for the same appropriation account and under the same terms, conditions and limitations as originally provided in appropriations Acts: Provided, That the Appropriations Committees of both Houses of the Congress are notified fifteen days in advance of the obligation of such funds for activities, programs, projects, type of materiel assistance, countries or other operations not justified or in excess of the amount justified for fiscal year 1978.

The Mutual Security Appropriation Act, 1956, // 22 USC 1819. // is amended by striking out section 108 thereof, effective as of October 1, 1977.

None of the funds made available under this Act for " Food and nutrition, Development Assistance," " Population planning, Development Assistance," " Health, Development Assistance," " Education and human resources development, Development Assistance," " Technical assistance, energy, research, reconstruction, and selected development problems, Development Assistance," " International organizations and programs," " American schools and hospitals abroad," " Sahel development program," " International narcotics control," " Middle East special requirements fund," " Security supporting assistance," " Operating Expenses of the Agency for International Development," " Military assistance," " International military education and training." " Foreign military credit sales," " Inter-American Foundation," " Peace Corps," or " Migration and refugee assistance," shall be available for obligation for activities, programs, projects, type of materiel assistance, countries, or other operations not justified or in excess of the amount justified to the Appropriations Committees for obligation under any of the these specific headings for fiscal year 1978 unless the Appropriations Committees of both Houses of the Congress are previously notified fifteen days in advance.

MIDDLE EAST SPECIAL REQUIREMENTS FUND

Middle East special requirements fund: For necessary expenses to carry out the provisions of section 903 of the Foreign Assistance Act of 1961, // 22 USC 2443. // as amended, $8,000,000: Provided, That none of the funds appropriated under this heading may be used to provide a United States contribution to the United Nations Relief and Works Agency: Provided further, That none of the funds appropriated under this heading may be used to carry out those provisions of section 903 of the Foreign Assistance Act of 1961 which pertain to the Sinai support mission.

SECURITY SUPPORTING ASSISTANCE

Security supporting assistance: For necessary expenses to carry out the provisions of sections 497, 531, and 533 of the Foreign Assistance Act of 1961, as amended, and those provisions of section 903 of the Foreign Assistance Act of 1961 // 22 USC 2294, 2346, 2346b. // which pertain to the Sinai support mission, $2,202,200,000: Provided, That of the funds appropriated under this paragraph, $785,000,000 shall be allocated to Israel, $750,000,000 shall be allocated to Egypt, $93,000,000 shall be allocated to Jordan, and $90,000,000 shall be allocated to Syria.

Loan Allocation, Security Supporting Assistance: Of the new obligational authority appropriated under this Act for Security Supporting Assistance, not to exceed $856,800,000 shall be available for grants: Provided, That of the amounts available for loans, not to exceed $865,400,000 shall be available for loans with maturities in excess of thirty years, but not to exceed forty years, following the date on which funds were originally made available under such loans.

UNITED NATIONS FORCES IN CYPRUS

United Nations Forces in Cyprus: For payments, not otherwise provided for, by the United States to meet the expenses of the , United Nations Forces in Cyprus, $9,100,000.

OPERATING EXPENSES OF THE AGENCY FOR INTERNATIONAL DEVELOPMENT

Operating expenses of the Agency for International Development: For necessary expenses to carry out the provisions of section 667 of the Foreign Assistance Act of 1961, // 22 USC 2427. // as amended, $213,000,000: Provided, That not more than $94,100,000 of this amount shall be for AID- Washington Operating Expenses: Provided further, That not to exceed $700,000 of funds provided to the Agency for International Development by this Act shall be available for hiring experts and consultants pursuant to 5 U.S.C. 3109 and of this amount not to exceed $100,000 shall be available for hiring experts and consultants who are retired employees of the Agency for International Development: Provided further, That none of the funds made available by this Act shall be available for leasing, purchasing, renovating, or furnishing of housing or office space in Cairo, Egypt, except through the Foreign Building Operations of the Department of State: Provided further, That not to exceed $125,000 of the funds made available by this Act shall be available for the Administrator's Development Seminar of the Agency for International Development.

OVERSEAS PRIVATE INVESTMENT CORPORATION

The Overseas Private Investment Corporation is authorized to make such expenditures within the limits of funds available to it and in accordance with law (including not to exceed $10,000 for entertainment allowances), and to make such contracts and commitments without regard to fiscal year limitations as provided by section 104 of the Government Corporation Control Act, as amended (31 U.S.C. 849), as may be necessary in carrying out the program set forth in the budget for the current fiscal year.

INTER- AMERICAN FOUNDATION

The Inter-American Foundation is authorized to make such expenditures within the limits of funds available to it and in accordance with the law, and to make such contracts and commitments without regard to fiscal year limitations as provided by section 104 of the Government Corporation Control Act, as amended (31 U.S.C. 814), as may be necessary in carrying out its authorized programs during the current fiscal year: Provided, That not to exceed $7,062,000 of previously appropriated moneys shall be available to carry out the authorized programs during the current fiscal year.

MILITARY ASSISTANCE

Military assistance: For necessary expenses to carry out the provisions of section 503 of the Foreign Assistance Act of 1961, // 22 USC 2311. // as amended, including administrative expenses and purchase of passenger motor vehicles for replacement only for use outside of the United States, $220,000,000: Provided, That none of the funds contained in this paragraph shall be available for the purchase of new automotive vehicles outside of the United States.

INTERNATIONAL MILITARY EDUCATION AND TRAINING

International military education and training: For necessary expenses to carry out the provisions of section 541 of the Foreign Assistance Act of 1961, // 22 USC 2347. // as amended, $30,000,000: Provided, That none of the funds appropriated under this paragraph shall be used to provide international military education and training to the Government of Argentina.

GENERAL PROVISIONS

Sec. 101. None of the funds herein appropriated (other than funds appropriated for " International organizations and programs") shall be used to finance the construction of any new flood control, reclamation, or other water or related land resource project or program which has not met the standards and criteria used in determining the feasibility of lfood control, reclamation, and othe r water and related land resource programs and projects proposed for construction within the United States of America under the Principles and Standards for Planning Water and Related Land Resources dated October 25, 1973.

Sec. 102. Except for the appropriations entitled " Contingency fund", " International disaster assistance", and " United States emergency refugee and migration assistance fund", not more than 20 per centum of any appropriation item made available by this Act for fiscal year 1978 shall be obligated or reserved during the last month of availability.

Sec. 103. None of the funds herein appropriated nor any of the counterpart funds generated as a result of assistance hereunder or any prior Act shall be used to pay pensions, annuities, retirement pay, or adjusted service compensation for any persons heretofore or hereafter serving in the armed forces of any recipient country.

Sec. 104. None of the funds appropriated or made available pursuant to this Act for carrying out the Foreign Assistance Act of 1961, as amended, may be used for making payments on any contract for procurement to which the United States is a party entered into after the date of enactment of this Act, // 22 USC 2151 note. // which does not contain a provision authorizing the termination of such contract for the convenience of the United States.

Sec. 105. None of the funds appropriated or made available pursuant to this Act for carrying out the Foreign Assistance Act of 1961, as amended, may be used to pay in whole or in part any assessments, arrearages, or dues of any member of the United Nations.

Sec. 106. None of the funds contained in title I of this Act may be used to carry out the provisions of sections 209(d) and 251(h) of the Foreign Assistance Act of 1961, // 22 USC 2169, 2211. // as amended.

Sec. 107. None of the funds appropriated or otherwise made available pursuant to this Act shall be obligated or expended to finance directly any assistance or reparations to Uganda, Cambodia, Laos, or the Socialist Republic of Vietnam.

Sec. 108. Of the funds appropriated or made available pursuant to this Act, not to exceed $118,000 shall be for official residence expenses of the Agency for International Development during fiscal year 1978: Provided, That appropriate steps shall be taken to assure that, to the maximum extent possible, United States-owned foreign currencies are utilized in lieu of dollars.

Sec. 109. Of the funds appropriated or made available pursuant to this Act, not to exceed $15,000 shall be for entertainment expenses of the Agency for International Development during fiscal year 1978.

Sec. 110. Of the funds appropriated or made available pursuant to this Act, not to exceed $96,000 shall be for representation allowances of the Agency for International Development during fiscal year 1978: Provided, That appropriate steps shall be taken to assure that, to the maximum extent possible, United States-owned foreign currencies are utilized in lieu of dollars.

Sec. 111. Of the funds appropriated or made available pursuant to this Act, not to exceed ,73,900 shall be for entertainment expenses relating to the Military Assistance Program, International Military Education and Training, and Foreign Military Credit Sales during fiscal year 1978: Provided, That appropriate steps shall be taken to assure that, to the maximum extent possible, United States-owned foreign currencies are utilized in lieu of dollars.

Sec. 112. None of the funds appropriated or made available (other than funds for " International organizations and programs") pursuant to this Act for carrying out the Foreign Assistance Act of 1961, // 22 USC 2151 note. // as amended, may be used to finance the export of nuclear equipment, fuel, or technology or to provide assistance for the training of foreign nationals in nuclear fields.

Sec. 113. Funds appropriated by this Act may not be obligated or expended to provide security assistance to any country for the purpose of aiding directly the efforts of the government of such country to repress the legitimate rights of the population of such country contrary to the Universal Declaration of Human Rights.

Sec. 114. None of the funds appropriated or made available pursuant to this Act shall be obligated or expended to finance directly any assistance to Mozambique or Angola.

Sec. 115. None of the funds made available by this Act may be obligated under an appropriation account to which they were not appropriated without the written prior approval of the Appropriations Committees of both Houses of the Congress.

TITLE II -- FOREIGN MILITARY CREDIT SALES Foreign Military Credit Sales

For expenses not otherwise provided for, necessary to enable the President to carry out the provisions of sections 23 and 24 of the Arms Export Control Act, // 22 USC 2763, 2764. // $675,850,000: Provided, That of the amount provided for the total aggregate credit sale ceiling during the current fiscal year, not less than $1,000,000,000 shall be allocated to Israel.

TITLE III -- FOREIGN ASSISTANCE (OTHER) Independant Agency Action--International Programs Peace Corps

For expenses necessary for Action to carry out the provisions of the Peace Corps Act, as amended (22 U.S.C. 2501 et seq.), $82,900,000.

Department of State MIGRATION AND REFUGEE ASSISTANCE

For expenses, not otherwise provided for, necessary to enable the Secretary of State to provide, as authorized by law, a contribution to the International Committee of the Red Cross and assistance to refugees, including contributions to the Intergovernmental Committee for European Migration and the United Nations High Commissioner for Refugees: salaries and expenses of personnel and dependents as authorized by the Foreign Service Act of 1946, as amended (22 U.S.C. 801 - 1158); allowances as authorized by 5 U.S.C. 3109: $53,054,000: Provided, That no funds herein appropriated shall be used to assist directly in the migration to any nation in the Western Hemisphere of any person not having a security clearance based on reasonable standards to insure against Communist infiltration in the Western Hemisphere.

UNITED STATES EMERGENCY REFUGEE AND MIGRATION ASSISTANCE FUND

For necessary expenses to carry out the provisions of section 2(c) of the Migration and Refugee Assistance Act of 1962, as amended (22 U. S.C. 2601), $10,000,000, to remain available until expended.

Funds Appropriated to the President International Financial Institutions CONTRIBUTION TO THE ASIAN DEVELOPMENT BANK

For payment to the Asian Development Bank by the Secretary of the Treasury of the first installment of (1) the United States share of the increase in subscriptions to the (a) paid-in capital stock, and (b) callable capital stock, and (2) the United States contribution to the increase in resources of the Asian Development Fund, $217,500,000, to remain available until expended: Provided, That no such payment may be made while the United States Director to the Bank is compensated by the Bank at a rate which, together with whatever compensation such Director receives from the United States is in excess of the rate proveded for an individual occupying a position at level IV of the Executive Schedule under section 5315 of title 5, United States Code, or while any alternate United States Director to the Bank is compensated by the Bank in excess of the rate provided for an individual occupying a position at level V of the Executive Schedule under section 5316 of title 5, United States Code.

CONTRIBUTION TO THE INTER- AMERICAN DEVELOPMENT BANK

For payment to the Inter-American Development Bank by the Secretary of the Treasury for the United States share of (1) the increase in subscriptions to (a) paid-in capital stock, and (b) callable capital stock, and (2) the fifth replenishment of the resources of the Fund for Special Operations as authorized by the Act of May 31, 1976 (Public Law 94 - 302), // 22 USC 283w. // $523,000,000, to remain available until expended: Provided, That no such payment may be made while the United States Executive Director to the Bank is compensated by the Bank at a rate in excess of the rate provided for an individual occupying a position at level IV of the Executive Schedule under section 5315 of title 5, United States Code, or while the alternate United States Executive Director to the Bank is compensated by the Bank at a rate in excess of the rate provided for an individual occupying a position at level V of the Executive Schedule under section 5316 of title 5, United States Code.

CONTRIBUTION TO THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT

For payment to the International Bank for Reconstruction and Development by the Secretary of the Treasury for the first installment of the United States share of the increase in subscriptions to the (1) paid-in capital stock, and (2) callable capital stock, $400,000,000, to remain available until expended: Provided, That no such payment may be made while the United States Executive Director to the Bank is compensated by the Bank at a rate in excess of the rate provided for an individual occupying a position at level IV of the Executive Schedule under section 5315 of title 5, United States Code, or while the alternate United States Executive Director to the Bank is compensated by the Bank at a rate in excess of the rate provided for an individual occupying a position at level V of the Executive Schedule under section 5316 of title 5, United States Code.

CONTRIBUTION TO THE INTERNATIONAL FINANCE CORPORATION

For payment to the International Finance Corporation by the Secretary of the Treasury for the first installment of the United States share of the increase in subscriptions to capital stock, $38,000,000, to remain available until expended.

CONTRIBUTION TO THE INTERNATIONAL DEVELOPMENT ASSOCIATION

For payment to the International Development Association by the Secretary of the Treasury for the first installment of the United States contribution to the fifth replenishment; $800,000,000 to remain available until expended: Provided, That no such payment may be made while the United States Executive Director to the International Bank for Reconstruction and Development is compensated by the Bank at a rate in excess of the rate provided for an individual occupying a position at level IV of the Executive Schedule under section 5315 of title 5, United States Code, or while the alternate United States Executive Director to the Bank is compensated by the Bank at a rate in excess of the rate provided for an individual occupying a position at level V of the Executive Schedule under section 5316 of title 5, United States Code.

CONTRIBUTION TO THE AFRICAN DEVELOPMENT FUND

For payment by the Secretary of the Treasury for the final installment of the initial United States contribution to the African Development Fund as authorized by the Act of May 31, 1976 (Public Law 94 - 302), // 22 USC 290g note. // $10,000,000, to remain available until expended.

FUTURE UNITED STATES CONTRIBUTIONS TO THE INTERNATIONAL FINANCIAL INSTITUTIONS

It is the sense of the Senate that the United States share of contributions to future replenishments of the International Financial Institutions should not exceed the percentages enumerated below for each of the respective accounts within these institutions:

Asian Development Bank:

Paid-in capital, 16.3 percent;

Callable capital, 16.3 percent;

Asian Development Fund, 22.2 percent;

African Development Bank;

Special Fund, 10.6 percent;

Inter-American Development Bank;

Paid-in ordinary capital, 34.5 percent;

Callable ordinary capital, 34.5 percent;

Paid-in interregional capital, 34.5 percent;

Callable interregional capital, 34.5 percent;

Fund for Special Operations, 40 percent;

International Bank for Reconstruction and Development;

Paid-in capital, 18.7 percent;

Callable capital, 18.7 percent;

International Development Association, 25 percent;

International Finance Corporation, 23 percent.

TITLE IV-- EXPORT- IMPORT BANK OF THE UNITED STATES

The Export-Import Bank of the United States is hereby authorized to make such expenditures within the limits of funds and borrowing authority available to such corporation, and in accord with law, and to make such contracts and commitments without regard to fiscal year limitations as provided by section 104 of the Government Corporation Control Act, // 31 USC 849. // as amended, as may be necessary in carrying out the program set forth in the budget for the current fiscal year for such corporation, except as hereinafter provided: Provided, That none of the funds available during the current fiscal year may be used to make expenditures, contracts, or commitments for the export of nuclear equipment, fuel, or technology to any country other than a nuclear-weapon State as defined in Article IX of the Treaty on the Non-Proliferation of Nuclear Weapons eligible to receive economic or military assistance under this Act that has detonated a nuclear explosive after the date of enactment of this Act.

Limitation on Program Activity

Not to exceed $5,458,207,000 (of which not to exceed $3,600,000,000 shall be for direct loans) shall bw authorized during the current fiscal year for other than administrative expenses.

Limitation on Administrative Expenses

Not to exceed $12,695,000 (to be computed on an accrual basis) shall be available during the current fiscal year for administrative expenses, including hire of passenger motor vehicles, services as authorized by 5 U.S.C. 3109, and not to exceed $24,000 for entertainment allowances for members of the Board of Directors: Provided, That (1) fees or dues to international organizations of credit institutions engaged in financing foreign trade, (2) necessary expenses (including special services performed on a contract or fee basis, but not including other personal services) in connection with the acquisition, operation, maintenance, improvement, or disposition of any real or personal property belonging to the Bank or in which it has an interest, including expenses of collections of pledged collateral, or the investigation or appraisal of any property in respect to which an application for a loan has been made, and (3) expenses (other than internal expenses of the Bank) incurred in connection with the issuance and servicing of guarantees, insurance, and reinsurance, shall be considered as nonadministrative expenses for the purposes hereof.

TITLE V--GENERAL PROVISIONS

Sec. 501. No part of any appropriation contained in this Act shall be used for publicity or propaganda purposes within the United States not heretofore authorized by the Congress.

Sec. 502. No part of any appropriation contained in this Act shall remain available for obligation beyond the current fiscal year unless expressly so provided herein.

Sec. 503. No part of any appropriation contained in this Act shall be used to furnish assistance to any country which is in default during a period in excess of one calendar year in payment to the United States of principal or interest on any loan made to such country by the United States pursuant to a program for which funds are appropriated under this Act unless (1) such debt has been disputed by such country prior to the enactment of this Act or (2) such country has either arranged to make payment of the amount in arrears or otherwise taken appropriate steps, which may include renegotiation, to cure the existing default.

Sec. 503 A. None of the funds appropriated or made available pursuant to this Act shall be used to provide military assistance, international military education and training, or foreign military credit sales to the Governments of Ethiopia and Uruguay.

Sec. 503 B. None of the funds appropriated or made available pursuant to this Act shall be used to provide foreign military credit sales to the Governments of Argentina, Brazil, El Salvador, and Guatemala.

Sec. 503 C. Of the funds appropriated or made available pursuant to this Act, not more than $18,100,000 shall be used for military assistance, not more than $1,850,000 shall be used for foreign military credit sales, and not more than $700,000 shall be used for international military education and training to the Government of the Philippines.

Sec. 504. None of the funds appropriated by this Act shall be available for the Office of the Inspector General of Foreign Assistance.

Sec. 505. None of the funds appropriated or made available pursuant to this Act shall be available to any international financial institution whose United States' representative can not upon request obtain the amounts and the names of borrowers for all loans of the international financial institution, including loans to employees of the institution, or the compensation and related benefits of employees of the institution.

Sec. 506. None of the funds appropriated in this Act shall be used for any form of aid or trade, either by monetary payment or by the sale or transfer of any goods of any nature, directly to Cuba.

Sec. 507. // 22 USC 262d-1. // It is the sense of the Congress that, where other means have proven ineffective in promoting international human rights, and except where the President determines that the cause of international human rights is served more effectively by actions other than voting against such assistance or where the assistance is directed to programs that serve the basic needs of the impoverished majority of the country in question, United States representatives to the International Bank for Reconstruction and Development, the International Development Association, the African Development Fund, the Asian Development Bank, and the Inter-American Development Bank should oppose loans and other financial or technical assistance to any country that persists in a systematic pattern of gross violations of fundamental human rights.

Sec. 508. Notwithstanding the budget authority levels of $523,000,000 for the Inter-American Development Bank and $400,000,000 for the International Bank for Reconstruction and Development provided elsewhere in this Act, not more than $480,000,000 shall be made available by this Act for obligation or expenditure for a United States contribution to the Inter-American Development Bank and not more than $380,000,000 shall be made available by this Act for obligation or expenditure for a United States contribution to the International Bank for Reconstruction and Development: Provided, That this section shall apply only to the establishment of budget authority levels for the aforementioned Banks and shall not alter limitations, restrictions or other language provisions elsewhere in this Act.

Sec. 509. None of the funds appropriated or otherwise made available by this Act to the Export-Import Bank and funds appropriated by this Act for direct foreign assistance may be obligated for any government which aids or abets, by granting sanctuary from prosecution to, any individual or group which has committed an act of international terrorism, unless the President of the United States finds that the national security requires otherwise.

Sec. 510. It is the sense of the Congress that the Secretary of State should prepare and submit to the Speaker of the House of Representatives and to the President of the Senate--

(1) not later than six months after the date of enactment of this section,

// 22 USC 252 note. //

a report on the adequacy of insurance provided by the accredited diplomatic missions to the United States to cover loss or injury arising from the wrongful acts or omissions of the employees of such missions in the United States;

(2) not later than one year after the date of enactment of this section, a report on what efforts the President and the Secretary of State have made to encourage the provision of such coverage; and

(3) not later than six months after the date of enactment of this section, a report on what the Secretary of State has done to encourage the Government of Panama to make satisfactory compensation to Dr. Halla Brown for loss or injury arising out of the accident of April 20, 1974.

TITLE VI-- ROMANIAN RELIEF AND REHABILITATION

Sec. 601. For expenses necessary to carry out the provisions of section 495 D of the Foreign Assistance Act of 1961, as amended, 22 USC 2292j. $13,000,000 for the fiscal year 1977 for Romanian relief and rehabilitation assistance, to remain available until expended.

This Act may be cited as the " Foreign Assistance and Related Programs Appropriations Act, 1978".

Approved October 31, 1977.

LEGISLATIVE HISTORY:

HOUSE REPORTS: No. 95 - 417 (Comm. on Appropriations), No. 95 - 633 (Comm. of Conference) and No. 95 - 701 (Comm. of Conference).

SENATE REPORT No. 95 - 352 (Comm. of Appropriations.)

CONGRESSIONAL RECORD, Vol. 123 (1977):

June 22, 23, considered and passed House.

Aug. 5, considered and passed Senate, amended.

Oct. 18, House agreed to conference report; receded and concurred in certain Senate amendments: receded and concurred in certain other amendments, with amendments; disagreed to Senate amendment No. 47.

Oct. 19, Senate agreed to conference report; concurred in certain House amendments and receded from disagreement to amendment No. 47.

PUBLIC LAW 95-147, 91 STAT. 1277

95th Congress, H.R. 5675 October 28, 1977 An Act To authorize the Secretary of the Treasury to invest public moneys, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, // 31 USC 1038. // That the Secretary of the Treasury is authorized, for cash management purposes, to invest any portion of the Treasury's operating cash for periods of up to ninety days in (1) obligations of depositaries maintaining treasury tax and loan accounts secured by a pledge of collateral acceptable to the Secretary of the Treasury as security for tax and loan accounts, and (2) obligations of the United States and of agencies of the United States: Provided, That the authority granted under this section shall not be construed as requiring the Secretary of the Treasury to invest any or all of the cash balance held in any particular account: provided further, That the authority granted under this section shall not be construed as permitting the Secretary of the Treasury to require the sale of such obligations by any particular person, dealer, or financial institution. Investments in obligations of depositaries maintaining such accounts shall be made at rates of interest prescribed by the Secretary of the Treasury, after taking into consideration prevailing market rates of interest.

Sec. 2. (a) Secton 5(k) of the Home Owners' Loan Act of 1933 (12 U. S.C. 1464(k) is amended by adding after " Bank" in the first sentence thereof the following: "shall be a depositary of public money and" and by striking the period at the end thereof and inserting the followng:", including services in connecton with the collection of taxes and other obligations owed the United States, and the Secretary of the Treasury is hereby authorized to deposit public money in any such Federal savings and loan association or member of a Federal home loan bank, and shall prescribe such regulations as may be necessary to carry out the purposes of this subsection.".

(b) Section 402(d) of the National Housing Act (12 U.S.C. 1725 (d)) is amended by adding the following at the end thereof: "insured institutions shall be depositaries of public money and may be employed as fiscal agents of the United States. The Secretary of the Treasury is authorized to deposit public money in such insured institutions, and shall prescribe such regulations as may be necessary to enable such institutions to become depositaries of public money and fiscal agents of the United States. Each insured institution shall perform all such reasonable duties as depositary of public money and fiscal agent of the United States as may be required of it including services in connecton with the collecton of taxes and other obligations owed the United States.".

(c) The Federal Credit Union Act (12 U.S.C. 1751 - 1790) is amended--,

(1) by inserting after section 209 the following new

section:

" Sec. 210. // 12 USC 1789a. // Any credit union the accounts of which are insured under this title shall be a depositary of public money and may be employed as fiscal agent of the United States. The Secretary of the Treasury is authorized to deposit public mone in ay such insured credit union, and shall prescribe such regulations as may be necessary to enable such credit unions to become depositaries of public money and fiscal agents of the United States. Each credit union shall preform all such reasonable duties as depositaries of public money and fiscal agent of the United States as may be required of it including services in connection with the collection of taxes and other obligations owed the United States.". and

(2) by redesignation section 210 of the Federal Credit Union Act (12 U.S.C. 1790) as section 211.

(d) // 12 USC 266. // Banks, savings banks, and savings and loan, building and loan, homestead associations (including cooperative banks), and credit unions created under the laws of any State and the deposits or accounts of which are insured by a State or agency thereof or corporation chartered pursuant to the laws of any State may be depositaries of public money and may be employed as fiscal agents of the United States. The Secretary of the Treasury is authorized to deposit public money in ay such institution, and shall prescribe such regulations as may be necessary to enable such institutions to become depositaries of public money and fiscal agents of the United States. Each such institution shall perform all such reasonable duties as depositary of public money and fiscal agent of the United States as may be required of it including services in connection with the collection of taxes and other obligations owed the United States.

Sec. 3. (a) Subsection (c) of section 6302 of the Internal Revenue Code of 1954 // 26 USC 6302. // (relating to use of Government depositaries) is amended--,

(1) by striking out "or trust companies" and inserting in lieu thereof ", trust companies, domestic building and loan associations, or credit unions"; and

(2) by striking out "and trust companies" and inserting in lieu thereof ", trust companies, domestic building and loan associatons, and credit unions".

(b) Subsection (e) of section 7502 of the Internal Revenue Code of 1954 // 26 USC 7502. // (relating to mailing of deposits) is amended by striking out "or trust company" each time it appears and inserting in lieu thereof ", trust company, domestic building and loan association, or credit union".

(c) The amendments made by this section shall apply to amounts deposited after the date of the enactment of this Act. // 26 USC 6302 //

Sec. 4. (a) The Bretton Woods Agreements Act // 22 USC 286c. // (22 U.S.C. 286--, 286k-2) is amended--,

(1) by striking out clause (g) of the first sentence of section 5, and by inserting immediately after clause (f) the following: "or (g) approve either the disposition of more than 25 million ounces of Fund gold for the benefit of the Trust Fund established by the Fund on May 6, 1976, or the establishment of any additional trust fund whereby resources of the International Monetary fund would be used for the special benefit of a single member, or of a praticular segment of the membership, of the fund.";

(2) (A) by inserting "(a)" immediately after " Sec. 14."; and (B) by inserting at the end of section 14 the following new subsection:

"(b) // 22 USC 286k. // The President shall, upon the request of any committee of the Congress with legislative or oversight jurisdiction over monetary policy or the International Monetary Fund, provide to such committee any appropriate information relevant to that committee's jurisdiction which is furnished to any department or agency of the United States by the International Monetary Fund. The President shall comply with this provision consistent with United States Membership obligations in the International Monetary Fund and Subject to such limitations as are appropriate to the sensitive nature of the information.".

(b)(1) Section 10(a) of the Gold Reserve Act of 1934 (31 USC 822a( a)) is amended--

(A) by striking out "to and" immediately following "necessary" and inserting in lieu thereof a comma; and

(B) by inserting immediately after " International Monetary Fund" the following: "regarding orderly exchange arrangements and a stable system of exchange rates: Provided, however, That no loan or credit to a foreign government or entity shall be extended by or through such Fund for more than six months in any twelve-month period unless the President provides a written determination to the Congress that unique or exigent circumstances make such loan or credit necessary for a term greater than six months".

(2) Section 10(b) of the Gold Reserve Act of 1934 (31 USC 822a(b)) is amended by striking out the phrase "stabilizing the exchange value of the dollar" in the fourth sentence thereof and inserting in lieu thereof the phrase "the purposes prescribed by this section".

(c) // 31 USC 463 note. // The joint resolution entitled " Joint resolution to assure uniform value to the coins and currencies of the United States", approved June 5, 1933 (31 U.S.C. 463), shall not apply to obligations issued on or after the date of enactment of this section.

LEGISLATIVE HISTORY:

HOUSE REPORTS: No. 95 - 159, pt. 1 (Comm. on Banking, Finance and Urban Affairs) and No. 95 - 159, pt. 2 (Comm. on Ways and Means).

SENATE REPORT No. 95 - 450 (Comm. on Banking, Housing, and Urban Affairs).

CONGRESSIONAL RECORD, Vol 123 (1977):

Apr. 25, considered and passed House.

Oct. 11, considered and passed Senate, amended

Oct. 14, House concurred in Senate amendment.

PUBLIC LAW 95-146, 91 Stat. 1226

95th Congress, H.R. 4836 October 28, 1977 An Act To extend by seven months the term of the National Commission on New Technological Uses of Copyrighted Works.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That secton 206(b) of Public Law 93 - 573 // 17 USC 201 note. // is amended to read as follows:

"(b) On or before July 31, 1978 the Commission shall submit to the President and the Congress a final report on its study and investigation which shall include its recommendations and such proposals for legislation and administrative action as may be necessary to carry out its recommendations.".

LEGISLATIVE HISTORY:

HOUSE REPORT No. 95 - 187 (Comm. on the Judisciary)

SENATE REPORT No. 95 - 477 (comm. on the Judiciary).

CONGRESSIONAL RECORD, Vol 123 (1977):

Apr. 19, considered and passed House.

Oct. 13, considered and passed Senate.

PUBLIC LAW 95-145, 91 STAT. 1223

95th Congress, H.R. 7769 October 28, 1977 An Act To authorize the creation of a record of admission for permanent residence in the cases of certain refugees for Vietnam, Laos, or Cambodia, and to amend the Indochina Mirgation and Regugee Assistance Act of 1975 to extend the period during which refugee assistance may be provided, 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--ADJUSTMENT OF STATUS OF INDOCHINA REFUGEES

Sec. 101. // 8 USC 1255 note. // That (a) the status of any alien described in subsection (b) of this section may be adjusted by the Attorney General, in his discretion and under such regulations as he may prescribe, to that of an alien lawfully admitted for permanent residence if--,

(1) the alien makes an application for such adjustment within six years after the date of enactment of this title:

(2) the alien is otherwise eligible to receive an immigrant visa and is otherwise admissible to the United States for permanent residence, except for the grounds for exclusion specified in paragraph (14), (15), (20), (25), and (32) of section 212(a) of the Immigration and Nationality Act,

// 8 USC 1182. //

and

(3) the alien has been physically present in the United States for at least two years.

(b) The benefits provided by subsection (a) shall apply to any alien who is a native or citizen of Vietnam, Laos, or Cambodia and who--,

(1) was paroled into the United States as a refugeee from those countries under section 212(d)(5) of the Immigration and Nationality Act subsequent to March 31, 1975, but prior to January 1, 1979; or

(2) was inspected and admitted or paroled into the United States on or before March 31, 1975, and was physically present in the United States on March 31, 1975.

Sec. 102. // 8 USC 1255 note. // Upon approval of an application for adjustment of status under section 101 of this title, the Attorney General shall establish a record of the alien's admission for permanent residence as of March 31, 1975, or the date of the alien's arrival in the United States, whichever date is later.

Sec. 103. // 8 USC 1255 note. // Any alien determined to be eligible for lawful admission for permanent residence under this title who acquired that status under the provisions of the Immigration and Nationality Act // USC 1101 note. // prior to the date of enactment of this title may, upon application, have has admission for permanent residence recorded as of March 31, 1975, or the date of his arrival in the United States, whichever date is later.

Sec. 104. // 8 USC 1255 note. // When an alien has been granted the status of having been lawfully admitted to the United States for permanent residence pursuant to this title, his spouse and children, regradless of nationality, may also be granted such status by the Attorney General, in his discretion and under such regulations he may prescribe, if they meet the requirements specified in section 101(a) of this title. Upon approval of the application, the Attorney General shall create a record of the alien's admission for permanent residence as of the date of the record of admission of the alien through whom such spouse and children derive benefits under this section.

Sec. 105 // USC 1255 note. // Any alien who ordered, assisted, or otherwise participated in the persecution of any person because of race, religion, or political opinion shall be ineligible for permanent under any provision of this title.

sec. 106. // 8 USC 1255 note. // When an alien is granted the status of having been lawfully admitted for permanent residence pursuant to the provisions of this title the Secretary of State shall not be required to reduce the number of visa authorized to be issued under the Immigration and Nationality Act, // 8 USC 1101 note. // and the Attorney General shall not be required to charge the alien any fee.

Sec. 107. // 8 USC 1255 note. // Except as otherwise specifically provided in this title, the definitions contained in the Immigration and Nationality Act shall apply in the administration of this title. Nothing contained in this title shall be held to repeal, amend, alter, modify, effect, or restrict the powers, duties, functions, or authority of the Attorney General in the administration and enforcement of the Immigration and Nationality Act or any other law relating to immigration, nationality, and naturalization. The fact that an alien may be elegible to be granted the status of having been lawfully admitted for permanent residence under this title shall not preclude him from seeking such status under any other provision of law for which he may be eligible.

TITLE II-- EXTENSION OF THE INDOCHINA MIGRATION AND REFUGEE ASSISTANCE ACT OF 1975

Sec. 201. // 22 USC 2601 note. // Secton 2 of the Indochina Migration and Refugee Assistance Act of 1975 is amended to read as follows:

" Sec. 2. (a)(1) Subject to theprovisions of subsection (b), there are authorized to be apprpriated, in additon to aounts otherwise available for such purposes, such sums as ma be necessary for carrying out the provisons of paragraphs (3), (4), (5), and (6) of section i(b) of the Migration and Refugee Assistance Act of 1962 // 22 USC 2601. // with respect to aliens who have fled from Cambodia, Vietnam, or Laos

"(2) Funds appropriated under this Act shall be made available to State of local public agencies to reimburse them for the non-Federal share of costs under titles IV and XIX of the Social Security Act // 42 USC 601, 1396. // for the provision of cash or medical assistance to aliens who have fled from Cambodia, Vietnam, or Laos.

"(b)(1) None of the funds authorized to be appropriated by subsection (a) may be available for obligation after September 30, 1981.

"(2) The amount of assistance (including the amount of reimbursement as described in subsection (a)(2) provided to a State or local public agency under section 2(b) of the Migration and Refugee Assistance Act of 1962 for the purpose of porviding cash or medical assistance to aliens who have fled from Cambodia, Vietnam, of Laos may not exceed--

"(A) for the fiscal year ending September 30, 1979, 75 per centum, and

"(B) for the fiscal year ending September 30, 1980, 50 per centum, and

"(C) for the fiscal year ending September 30, 1981, 25 per centum,

of the cost (includng the non-Federal share of costs as described in subsecton (a)(2) of the State or local public agency in providing such assistance for such purpose for the fiscal year ending September 30, 1978.

"(c) In addition to aounts otherwise available for the purposes of this Act, there are authorized to be apropriated $25,000,000, to remain available until expended, for special projects and programs, administered in whole or in part by State or local public agencies or by private voluntary agencies participating in the Indochina refugee assistance program, to assist minor and adult regugees in resettling and in gaining skills and education necessary to become self-reliant.".

Sec. 202. // USC 2601 note. // (a) Section 4(b) of the Incochina Migration and refugee Assistance Act of 1975 is amended to read as follows:

"(b) Not later than December 31 of each year ending prior to January 1, 1982, the Secretary of Health, Education, and Welfare shall transmit to suc committees a report describing flly and completely the status of refugees from Cambodia, Vietnam, and Laos.".

(b) Section 4(c) of such Act is repealed.

LEGISLATIVE HISTORY:

HOUSE REPORT No. 95 - 547 (Comm. on the Judiciary).

SENATE REPORT No. 95 - 471 accompanying S. 2108 (Comm. on Human Resources).

CONGRESSIONAL RECORD, Vol. 123 (1977):

Sept. 27, considered and passed House.

Oct. 10, consider and passes Senate, amended, in lieu of s. 2108.

Oct. 18, House concurred in Senate amendments.

WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 13, no.44:

Oct. 28, Presidential statement.

PUBLIC LAW 95-144, 91 STAT. 1212, TREATIES FOR THE TRANSFER OF OFFENDERS TO OR FROM FOREIGN COUNTRIES

95th CONGRESS, S. 1682 OCTOBER 28, 1977 AN ACT To provide for the implementation of treaties for the transfer of offenders to or from foreign countries.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That title 18, United States Code, is amended by inserting after chapter 305 the following new chapter:

" CHAPTER 306.--TAANSFER TO OR FROM FOREIGN COUNTRIES

" Sec.

"4100. Scope and limitation of chapter.

"4101. Definitions.

"4102. Authority of the Attorney General.

"4103. Applicability of United States laws.

"4104. Transfer of offenders on probation.

"4105. Transfer of offenders serving sentence of imprisonment.

"4106. Transfer of offenders on parole; parole of offenders transferred.

"4107. Verification of consent of offender to transfer from the United States.

"4108. Verification of consent of offender to transfer to the United States.

"4109. Right to counsel, appointment of counsel.

"4110. Transfer of juveniles.

"4111. Prosecution barred by foreign conviction.

"4112. Loss of rights, disqualification.

"4113. Status of alien offender transferred to a foreign country.

"4114. Return of transferred offenders.

"4115. Execution of sentences imposing an obligation to make restitution or reparations.

" Sec. 4100.

// 18 USC 4100. //

Scope and limitation of chapter

"(a) The provisions of this chapter relating to the transfer of offenders shall be applicable only when a treaty providing for such a transfer is in force, and shall only be applicable to transfers of offenders to and from a foreign country pursuant to such a treaty. A sentence imposed by a foreign country upon an offender who is subsequently transferred to the United States pursuant to a treaty shall be subject to being fully executed in the United States even though the treaty under which the offender was transferred is no longer in force.

"(b) An offender may be transferred from the United States pursuant to this chapter only to a county of which the offender is a citizen or national. Only an offender who is a citizen or national of the United States may be transferred to the United States. An offender may be transferred to or from the United States only with the offender's consent, and only if the offense for which the offender was sentenced satisfies the requirement of double criminality as defined in this chapter. Once an offender's consent to transfer has been verified by a verifying officer, that consent shall be irrevocable. If at the time of transfer the offender is under eighteen years of age the transfer shall not be accomplished unless consent to the transfer be given by a parent or guardian or by an appropriate count of the sentencing country.

"(c) An offender shall not be transferred to or from the United States if a proceeding by way of appeal or of collateral attack upon the conviction or sentence be pending.

"(d) The United States upon receiving notice from the country which imposed the sentence that the offender has been granted a pardon, commutation, or amnesty, or that there has been an ameliorating modification or a revocation of the sentence shall give the offender the benefit of the action taken by the sentencing country.

" Sec. 4101.

// 18 USC 4101. //

Definitions

" As used in this chapter the term--,

"(a) 'double criminality' means that at the time of transfer of an offender the offense for which he has been sentenced is still an offense in the transferring county and is also an offense in the receiving country. With regard to a country which has a federal form of government, an act shall be deemed to be an offense in that country if it is an offense under the federal laws or the laws of any state or province thereof;

"(b) 'imprisonment' means a penalty imposed by a court under which the individual is confined to an institution;

"(c) 'juvenile' means--,

"(1) a person who is under eighteen years of age; or

"(2) for the purpose of proceedings and disposition under chapter 403 of this title because of an act of juvenile delinquency, a person who is under twenty-one years of age;

"(1) a violation of the laws of the United States or a State thereof or of a foreign country committed by a juvenile which would have been a crime if committed by an adult; or

"(2) noncriminal acts committed by a juvenile for which supervision or treatment by juvenile authorities of the United States, a State thereof, or of the foreign country concerned is authorized;

"(e) 'offender' means a person who has been convicted of an offense or who has been adjudged to have committed an act of juvenile delinquency;

"(f) 'parole' means any form of release of an offender from imprisonment to the community by a releasing authority prior to the expiration of his sentence, subject to conditions imposed by the releasing authority and to its supervision;

"(g) 'probation' means any form of a sentence to a penalty of imprisonment the execution of which is suspended and the offender is permitted to remain at liberty under supervision and subject to conditions for the breach of which the suspended penalty of imprisonment may be ordered executed;

"(h) 'sentence' means not only the penalty imposed but also the judgment of conviction in a criminal case or a judgment of acquittal in the same proceeding, or the adjudication of delinquency in a juvenile delinquency proceeding or dismissal of allegations of delinquency in the same proceedings;

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

"(j) 'transfer' means a transfer of an individual for the purpose of the execution in one country of a sentence imposed by the courts of another country; and

"(k) 'treaty' means a treaty under which an offender sentenced in the courts of one country may be transferred to the country of which he is a citizen or national for the purpose of serving the sentence.

sec. 4102.

// 18 USC 4102. //

Authority of the Attorney General

" The Attorney General is authorized--,

"(1) to act on behalf of the United States as the authority referred to in a treaty;

"(2) to receive custody of offenders under a sentence of imprisonment, on parole, or on probation who are citizens or nationals of the United States transferred from foreign countries and as appropriate confine them in penal or correctional institutions, or assign them to the parole or probation authorities for supervision;

"(3) to transfer offenders under a sentence of imprisonment, on parole, or on probation to the foreign countries of which they are citizens or nationals;

"(4) to make regulations for the proper implementation of such treaties in accordance with this chapter and to make regulations to implement this chapter;

"(5) to render to foreign countries and to receive from them the certifications and reports required to be made under such treaties;

"(6) to make arrangements by agreement with the States for the transfer of offenders in their custody who are citizens or nationals of foreign countries to the foreign countries of which they are citizens or nationals and for the confinement, where appropriate, in State institutions of offenders transferred to the United States; "(7) to make agreements and establish regulations for the transportation through the territory of the United States of offenders convicted in a foreign country who are being transported to a third country for the execution of their sentences, the expenses of which shall be paid by the country requesting the transportation;

"(8) to make agreements with the appropriate authorities of a foreign country and to issue regulations for the transfer and treatment of juveniles who are transferred pursuant to treaty, the expenses of which shall be paid by the country of which the juvenile is a citizen or national;

"(9) in concert with the Secretary of Health, Education, and Welfare, to make arrangements with the appropriate authorities of a foreign country and to issue regulations for the transfer and treatment of individuals who are accused of an offense but who have been determined to be mentally ill; the expenses of which shall be paid by the country of which such person is a citizen or national;

"(10) to designate agents to receive, on behalf of the United States, the delivery by a foreign government of any citizen or national of the United States being transferred to the United States for the purpose of serving a sentence imposed by the courts of the foreign country, and to convey him to the place designated by the Attorney General. Such agent shall have all the powers of a marshal of the United States in the several districts through which it may be necessary for him to pass with the offender, so far as such power is requisite for the offender's transfer and safekeeping; within the territory of a foreign country such agent shall have such powers as the authorities of the foreign country may accord him;

"(11) to delegate the authority conferred by this chapter to officers of the Department of Justice.

" Section 4103.

// 18 USC 4103. //

Applicability of United States laws

" All laws of the United States, as appropriate, pertaining to prisoners, probationers, parolees, and juvenile offenders shall be applicable to offenders transferred to the United States, unless a treaty or this chapter provides otherwise.

" Section 4104.

// 18 USC 4104. //

Transfer of offenders on probation

"(a) Prior to consenting to the transfer to the United States of an offender who is on probation, the Attorney General shall determine that the appropriate United States district court is willing to undertake the supervision of the offender.

"(b) Upon the receipt of an offender on probation from the authorities of a foreign country, the Attorney General shall cause the offender to be brought before the United States district court which is to exercise supervision over the offender.

(c) The court shall place the offender under supervison of the probation officer of the court. The offender shall be supervised by a probation officer, under such conditions as are deemed appropriate by the court as though probation had been imposed by the United States district court.

"(d) The probation may be revoked in accordance with section 3653 of this title and rule 32(f) of the Federal Rules of Criminal Procedure. // 18 USC app. // A violation of the conditions of probation shall constitute grounds for revocation. If probationis revoked the suspended sentence imposed by the sentencing court shall be executed.

"(e) The provisions of sections 4105 and 4106 of this title shall be applicable following a revocation of probation.

"(f) Prior to consenting to the transfer from the United States of an offender who is on probation, the Attorney General shall obtain the assent of the court exercising jurisdiction over the probationer.

" Section 4105.

// 18 USC 4105. //

Transfer of offenders serving sentence of imprisonment

"(a) Except as provided elsewhere in this section, an offender serving a sentence of imprisonment ina foreign country transferred to the custody of the Attorney General shall remain in the custody of the Attorney General under the same conditions and for the same period of time as an offender who had been committed to the custody of the Attorney General by a court of the United States for the period of time imposed by the sentencing court.

"(b) The transferred offender shall be given credit toward service of the sentence for any days, prior to the date of commencement of the sentence, spent in custody in connection with the offense or acts for which the sentence was imposed.

"(c)(1) The transferred offender shall be entitled to all credits for good time, for labor, or any other credit toward the service of the sentence which had been given by the transferring country for time served as of the time of the transfer. Subsequent to the transfer, the offender shall in addition be entitled to credits for good time, computed on the basis of the time remaining to be served at the time of the transfer and at the rate provided in section 4161 of this title for a sentence of the length of the total sentence imposed and certified by the foreign authorities. These credits shall be combined to provide a release date for the offender pursuant to section 4164 of this title.

"(2) If the country from which the offender is transferred does not give credit for good time, the basis of computing the deduction from the sentence shall be the sentence imposed by the sentencing court and certified to be served upon transfer, at the rate provided in section 4161 of this title.

"(3) A transferred offender may earn extra good time deductions, as authorized in section 4162 of this title, from the time of transfer.

"(4) All credits toward service of the sentence, other than the credit for time in custody before sentencing, may be forfeitd as providd in section 4165 of this title and may be restored by the Attorney General as provided in section 4166 of this title.

"(5) Any sentence for an offense against the United States, imposed while the transferred offender is serving the sentence of imprisonment imposed in a foreign country, shall be aggregatd with the foreign sentence, in the same manner as if the foreign sentence was one imposed by a United States district court for an offense against the United States.

" Section 4106.

// 18 USC 4106. //

Transfer of offenders on parole; parole of offenders

transferred

"(a) Upon the receipt of an offender who is on parole from the authorities of a foreign country, the Attorney General shall assign the offender to the United States Parole Commission for supervision.

"(b) The United States Parole Commission and the Chairman of the Commission shall have the same powers and duties with reference to an offender transferred to the United States to serve a sentence of imprisonment or who at the time of transfer is on parole as they have with reference to an offender convicted in a court of the United States except as otherwise provided in this chapter or in the pertinent treaty. Sections 4201 through 4204; 4205 (d), (e), and (h); 4206 through 4216; and 4218 of this title shall be applicalbe.

"(c) An offender transferred to the United States to serve a sentence of imprisonment may be released on parole at such time as the Parole Commission may determine.

" Section 4107.

// 18 USC 4107. //

Verification of consent of offender to transfer from

the United States

"(a) Prior to the transfer of an offender from the United States, the fact tht the offender consents to such transfer and that such consent is voluntary and with full knowledge of the consequences thereof shall be verified by a United States magistrate or a judge as defined in section 451 of title 28 United States Code.

"(b) The verifying officer shall inquire of the offender whether he understands and agrees that the transfer will be subject to the following conditions:

"(1) only the appropriate courts in the United States may modify or set aside the conviction or sentence, and any proceedings seeking such action may only be brought in such courts;

"(2) the sentence shall be carried out according to the laws of the country to which he is to be transferred and that those laws are subject to change;

"(3) if a court in the country to which he is transferred should determine upon a proceeding initiated by him or on his behalf that his transfer was not accomplished in accordance with the treaty or laws of that country, he may be returned to the United States for the purpose of completing the sentence if the United States requests his return; and

"(4) his consent to transfer, once verified by the verifying officer, is irrevocable.

"(c) The verifying officer, before determining that an offender's consent is voluntary and given with full knowledge of the consequences, shall advise the offender of his right to consult with counsel as provided by this chapter. If the offender wishes to consult with counsel before giving his consent, he shall be advised that the proceedings will be continued until he has had anopportunity to consult with counsel.

"(d) The verifying officer shall make the necessary inquiries to determine that the offender's consent is voluntary and the result of any promises, threts, or other improper inducements, and that the offender accepts the transfer subject to the conditions set forth in subsection (b). The consent and acceptance shall be on an appropriate from prescribed by the Attorney General.

"(e) The proceedings shall be taken down by a reporter or recorded by suitable sound recording equipment. The Attorney General shall maintain custody of the records.

" Section 4108.

// 18 USC 4108. //

Verification of consent of offender to transfer to the

United States

"(a) Prior to the transfer of an offender to the United States, the fact that the offender consents to such transfer and that such consent is voluntary and with full knowledge of the consequences thereof shall be verified in the country in which the sentence was imposed by a United States magistrate, or by a citizen specifically designated by a judge of the United States as defined in section 451 of title 28, United States Code. The designation of a citizen who is an employee or officer of a department or agency of the United States shall be with the approval of the head of that department or agency.

"(b) The verifying office shall inquire of the offender whether he understands and agrees that the transfer will be subject to the following conditions:

"(1) only the countryh in which he was convicted and sentenced can modify or set aside the conviction or sentence, and any proceedings seeking such action may only be brought in that country;

"(2) the sentence shall be carried out accordingto the laws of the United States and that those laws are subject to change;

"(3) if a United States court should determine upon a proceeding initiated by him or on his behalf that his transfer was not accomplished in accordance with the treaty or laws of the United States, he may be returned to the country which imposed the sentence for the purpose of completing the sentence if that country requests his return; and

"(4) his consent to transfer, once verified by the verifying officer, is irrevocable.

"(c) The verifying officer, before determining that an offender's consent is voluntary and given with full knowledge of the consequences, shall advise the offender of his right to consult with counsel as provided by this chapter. If the offender wishes to consult with counsel before giving his consent, he shall be advised that the proceedings will be continued until he has had an opportunity to consult with counsel.

"(d) The verifying officer shall make the necessary inquiries to determine that the offender's consent is voluntary and not the result of any promises, threats, or other improper inducements, and that the offender accepts the transfer subject to the conditions set forth in subsection (b). The consent and acceptance shall be on an appropriate form prescribed by the Attorney General.

"(e) The proceedings shall be taken down by a reporter or recorded by suitable sound recording equipment. The Attorney General shall maintain custody of the records.

" Section 4109.

// 18 USC 4109. //

Right to counsel, appointment of counsel

" In proceedings to verify consent of an offender for transfer, the offender shall have the right to advice of counsel. If the offender is financially unable to obtain counsel--,

"(1) counsel for proceedings conducted under section 4107 shall be appointed in accordance with the Criminal Justice Act (18 U.S.C. 3006 A). Such appointment shall be considered an appointment in a misdemeanor case for purposes of compensation under the Act;

"(2) counsel for proceedings conducted under section 4108 shall be appointed by the verifying officer pursuant to such regulations as may be prescribed by the Director of the Administrative Office of the United States Courts. The Secretary of State shall make payments of fees and expenses of the appointed counsel, in amounts approved by the verifying officer, which shall not exceed the amounts authorized under the Criminal Justice Act (18 U.S.C. 3006(a)) for representation in a misdemeanor case. Payment in excess of the maximum amount authorized may be made for extended or complex representation whenever the verifying officer certifies that the amount of the excess payment is necessary to provide fair compensation, and the payment is approved by the chief judge of the United States court of appeals for the appropriate circuit. Counsel from other agencies in any branch of the Government may be appointed: Provided, That in such cases the Secretary of State shall pay counsel directly, or reimburse the employing agency for travel and transportation expenses. Notwithstanding section 3648 of the revised statutes as amended (31 U.S.C. 529), the Secretary may make advance payments of travel and transportation expenses to counsel appointed under this subsection.

" Section 4110.

// 18 USC 4110. //

Transfer of juveniles

" An offender transferred to the United States because of an act which would have been an act of juvenile delinquency had it been committed in the United States or any State thereof shall be subject to the provisions of chapter 403 of this title // 18 USC 5031. // except as otherwise provided in the relevant treaty or in an agreement pursuant to such treaty between the Attorney General and the authority of the foreign country.

" Section 4111.

// 18 USC 4111. //

Prosecution barred by foreign conviction

" An offender transferred to the United States shall not be detained, prosecuted, tried, or sentenced by the United States, or any State thereof for any offense the prosecution of which would have been barred if the sentence upon which the transfer was based had been by a court of the jurisdiction seeking to prosecute the transferred offender, or if prosecution would have been barred by the laws of the jurisdiction seeking to prosecute the transferred offender if the sentence on which the transfer was based had been issued by a court of the United States or by a court of another State.

" Section 4112.

// 18 USC 4112. //

Loss of rights, disqualification

" An offender transferred to the United States to serve a sentence imposed by a foreign court shall not incur any loss of civil, political, or civic rights nor incur any disqualification other than those which under the laws of the United States or of the State in which the issue arises would result from the fact of the conviction in the foreign country.

" Section 4113.

// 18 USC 4113. //

Status of alien offender transferred to a foreign

country

"(a) An alien who is deportable from the United States but who has been granted voluntary departure pursuant to section 1252(b) or section 1254(e) of title 8, United States Code, and who is transferred to a foreign country pursuant to this chapter shall be deemed for all purposes to have voluntarily departed from this country.

"(b) An alien who is the subject of an order of deportation from the United States pursuant to section 1252 of title 8, United States Code, who is transferred to a foreign country pursuant to this chapter shall be deemed for all purposes to have been deported from this country.

"(c) An alien who is the subject of an order of exclusion and deportation from the United States pursuant to section 1226 of title 8, United States Code, who is transferred to a foreign country pursuant to this chapter shall be deemed for all purposed to have been excluded from admission and deported from the United States.

" Section 4114.

// 18 USC 4114. //

Return of transferred offenders

"(a) Upon a final decision by the courts of the United States that accordance with the treaty or the laws of the United States and ordering the offender released from serving the sentence in the United States the offender may be returned to the country from which he was transferred to complete the sentence if the country in which the sentence was imposed requests his return. The Attorney General shall notify the appropriate authority of the country which imposed the sentence, within the ten days, of a final decision of a court of the United States ordering the offender released. The notification shall specify the time within which the sentencing country must request the return of the offender which shall be no longer than thirty days.

"(b) Upon receiving a request from the sentencing country that the offender ordered released be returned for the completion of his sentence, the Attorney General may file a complaint for the return of the offender with any justice or judge of the United States or any authorized magistrate within whose jurisdiction the offender is found. The complaint shall be upon oath and supported by affidavits establishing that the offender was convicted and sentenced by the courts of the country to which his return is requested; the offender was transferred to the United States for the execution of his sentence; the offender was ordered released by a court of the United States before he had completed his sentence because the transfer of the offender was not in accordance with the treaty or the laws of the United States; and that the sentencing country has requested that he be returned for the completion of the sentence. There shall be attached to the complaint a copy of the sentence of the sentencing court and of the decision of the court which ordered the offender released.

" A summons or a warrant shall be issued by the justice, judge or magistrate ordering the offender to appear or to be brought before the issuing authority. If the justice, judge, or magistrate finds that the person before him is the offender described in the complaint and that the facts alleged in the complaint are true, he shall issue a warrant for commitment of the offender to the custody of the Attorney General until surrender shall be made. The findings and a copy of al the testimony taken before him and of all documents introduced before him shall be transmitted to the Secretary of State, that a Return Warrant may issue upon the requisition of the proper authorities of the sentencing country, for the surrender of offender.

"(c) A complaint referred to in subsection (b) must be filed within sixty days from the date on which the decision ordering the release of the offender becomes final.

"(d) An offender returned under this section shall be subject to the jurisdiction of the country to which he is returned for all purposes.

"(e) The return of an offender shall be conditioned upon the offender being given credit toward service of the sentence for the time spent in the custody of or under the supervision of the United States.

"(f) Sections 3186, 3188 thrugh 3191, and 3195 of this title shall be applicable to the return of an offender under this section. However, an offender returned under this section shall not be deemed to have been extradited for any purpose.

"(g) An offender whose return is sought pursuant to this section may be admitted to bail or be released on his own recognizance at any stage of the proceedings.

" Section 4115.

// 18 USC 4115. //

Execution of sentnces imposing an obligation to make

restitution or reparations

" If in a sentence issued in a penal proceeding of a transferring country an offender transferred to the United States has been ordered to pay a sum of money to the victim of the offense for damage caused by the offense, that penalty or award of damages may be enforced as though it were a civil judgment rendered by a United States district court. Proceedings to collect the moneys ordered to be paid may be instituted by the Attorney General in any United States district court. Moneys recovered pursuant to such proceedings shall be transmitted through diplomatic channels to the treaty authority of the transferring country for distribution to the victim.".

Sec. 2. That section 636 of title 28, United States Code, is amended by adding a subsection (f) as follows:

"(f) A United States magistrate may perform the verification function required by section 4107 of title 18 United States Code. A magistrate may be assigned by a judge of any United States district court to perform the verification required by section 4108 and the appointment of counsel authorized by section 4109 of title 18, United States Code, and may perform such functions beyond the territorial limits of the United States. A magistrate assigned such functions shall have no authority to perform any other function within the territorial of a foreign country.".

Sec. 3. That chapter 153 of title 28, United States Code, is amended by adding the following section:

" Section 2256.

// 28 USC 2256. //

Jurisdiction of proceedings relating to transferred

offenders

" When a treaty is in effect between the United States and a foreign country providing for the transfer of convicted offenders--,

"(1) the country in which the offender was convicted shall have exclusive juridiction and competence over proceedings seeking to challenge, modify, or set aside convictions or sentences handed down by a court of such country;

"(2) all proceedings instituted by or on behalf of an offender transferred from the United States to a foreign country seeking to challenge, modity, or set aside the conviction or sentence upon which the transfer was based shall be brought in the court which would have jurisdiction and competence if the offender had not been transferred;

"(3) all proceedings instituted by or on behalf of an offender transferred to the United States pertaining to the manner of execution in the United States of the sentence imposed by a foreign court shall be brought in the United States district court for the district in which the offender is confined or in which supervision is exercised and shall name the Attorney General and the official having immediate custody or exercising immediate supervision of the offender as respondents. The Attorney General shall defend against such proceedings;

"(4) all proceedings instituted by or on behalf of an offender seeking to challenge the validity or legality of the offender's transfer from the United States shall be brought in the United States district court of the district in which the proceedings to determine the validity of the offender's consent were held and shall name the Attorney General as respondent; and

"(5) all proceedings instituted by or on behalf of an offender seeking to challenge the validity or legality of the offender's transfer from the United States shall be brought in the United States district court of the district in which the offender is confined or of the district in which supervision is exercised and shall name the Attorney General and the official having immediate custody or exercising immediate supervision of the offender as respondents. The Attorney General shall defend against such proceedings.".

Sec. 4. That chapter 48, title 10, United States Code, is amended by adding the following section:

" Section 955.

// 10 USC 955. //

Prisoners transferred to or from foreign countries

"(a) When a treaty is in effect between the United States and a foreign country providing for the transfer of convicted offenders, the Secretary concerned may, with the concurrence of the Attorney General, transfer to said foreign country any offender against chapter 47 of this title. Said transfer shall be effected subject to the terms of said treaty and chapter 306 of title 18, United States Code.

"(b) Whenever the United States is party to an agreement on the status of forces under which the United States may request that it take custody of a prisoner belonging to its armed forces who is confined by order of a foreign court, the Secretary concerned may provide for the carrying out of the terms of such confinement ina military correctional facility of his department or in any penal or correctional institution under the control of the United States or which the United States may be allowed to use. Except as otherwise specified in such agreement, such person shall be treated as if he were an offender against chapter 47 of this title.".

Sec. 5. // 18 USC 4100 note. // (a) There is authorized to be appropriated such funds as may be required to carry out the purposes of this Act.

(b) // 18 USC 4102 note. // The Attorney General shall certify to the Secretary of State the expenses of the United States related to the return of an offender to the foreign country of which the offender is a citizen or national for which the United States is entitled to seek reimbursement from that country under a treaty providing for transfer and reimbursement.

(c) // 18 USC 3006 A note. // The Attorney Geneal shall certify to the Administrative Office of the United States Courts those expenses which it is obligated to pay on behalf of an indigent offender under section 3006 A of title 18, United States Code, and similar statutes.

LEGISLATIVE HISTORY:

HOUSE REPORT No. 95 - 720 (Comm. on the Judiciary).

SENATE REPORT No. 95 - 435 (Comm. on the Judiciary).

CONGRESSIONAL RECORD, Vol. 123 (1977):

Sept. 21, considered and passed Senate.

Oct. 25, considered and passed House.

WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 13, No. 44:

Oct. 28, Presidential statement.

PUBLIC LAW 95-143, 91 STAT. 1210, EXPORT- IMPORT BANK ACT OF 1945, AMENDMENTS

95th CONGRESS, H.R. 6415 OCTOBER 26, 1977 An Act To extend and amend the Export-Import Bank Act of 1945.

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

Section 1. // 12 USC 635. // Section 2(b)(1)(A) of the Export-Import Bank Act of 1945 is amended by inserting before the period at the end of the third sentence the following: "and shall, in cooperation with other appropriate United States Government agencies, seek to reach international agreements to reduce government subsidized export financing".

Sec. 2. The last sentence of section 2(b)(1)(B) of the Export-Import Bank Act of 1945 is amended by inserting before the period at the end thereof the following:", and shall also take into account, in consultation with the Secretary of State, the observance of and respect for human rights in the country to receive the exports supported by a loan or financial guarantee and the effect such exports may have on human rights in such country".

Sec. 3. (a) The first sentence of section 2(b)(3) of the Export-Import bank Act of 1945 is amended--,

(1) by inserting "(i)" immediately after " No loan or financial guarantee or combination thereof"; (2) by striking out "shall be finally approved by the Board of Directors of the Bank, and no loan or financial guarantee or combination thereof" and inserting in lieu thereof "(ii) in an amount;" and

(3) by inserting immediately after " Union of Soviet Socialist Republics" the following:" or (iii) for the export of technology, fuel, equipment, materials, or goods or services to be used in the construction, alteration, operation, or maintenance of nuclear power, enrichment, reprocessing, research, or heavy water production facilities,".

(b) Section 2(b) of the Export-Import Bank Act of 1945 is amended by redesignating paragraphs (4) through (6) as paragraphs (5) through (7), respectively, and by inserting immediately after paragraph (3) the following new paragraph:

"(4) The Secretary of State shall report to the appropriate committees of Congress and to the Board of Directors of the Export-Import Bank if he determines that any country that has agreed to International Atomic Energy Agency nuclear safeguards materially violates, abrogates, or terminates, after the date of enactment of this paragraph, such safeguards or that any country that has entered into an agreement for cooperation concerning the civil use of nuclear energy with the United States materially violates, abrogates, or terminates, after the date of enactment of this paragraph, any guarantee or other undertaking to the United States made in such agreement or that any country that is not a nuclear-weapons state (as defined in article (Ix (3) of the Treaty on the Non-Proliferation of Nuclear Weapons) detonates, after the date of enactment of this paragraph, a nuclear explosive device. The Secretary shall specify which country or countries he has determined to have so acted, and the Board shall not give approval to guarantee, insure, or extend credit, or participate in the extension of credit in support of United States exports to such country unless the President determines that it is in the national interest for the Bank to guarantee, insure, or extend credit, or participate in the extension of credit in support o f United States exports to such country and such determination has been reported to the Congress not less than twenty-five days of continuous session of the Congress prior to the date of such approval. For the purpose of the preceding sentence, continuity of a session of the Congress shall be considered as broken only by an adjournment of the Congress sine die, and the days on which either House is not in session because of an adjournment of more than three days to a day certain shall be excluded in the computation of the twenty-five day period referred to in such sentence.".

(c) The first sentence of section 2(b)(5) of the Export-Import Bank Act of 1945, as redesignated by subsection (b), is amended--,

(1) by striking out "or" immediately after "the United States,"; and

(2) by inserting before the period at the end thereof the following: ", or (C) the purchase of any liquid metal fast breeder nuclear reactor or any nuclear fuel reprocessing facility".

Sec. 4. Section 8 of the Export-Import Bank Act of 1945 // 12 USC 635f. // is amended by striking out " June 30" and inserting in lieu thereof " September 30".

LEGISLATIVE HISTORY:

HOUSE REPORTS: No. 95 - 235 (Comm. on Banking, Finance and Urban Affairs) and

No 95 - 627 (Comm. of Conference).

SENATE REPORT No 95 - 279 (Comm. on Banking, Housing, and

Urban Affairs).

CONGRESSIONAL RECORD, Vol. 123 (1977):

May 3, considered and passed House.

June 29, considered and passed Senate agreed to

conference report.

Oct. 14, House agreed to conference report.

PUBLIC LAW 95-142, 91 STAT. 1175

95th CONGRESS, H.R. 3 OCTOBER 25, 1977 An Act To strengthen the capability of the Government to detect, prosecute, and punish fraudulent activities under the medicare and medicaid programs, 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 may be cited as the " Medicare-Medicaid Anti-Fraud and Abuse Amendments". // 42 USC 1305 note. //

PROHIBITION AGAINST ASSIGNMENT BY PHYSICIANS AND OTHERS OF CLAIMS FOR SERVICES; CLAIMS PAYMENT PROCEDURES FOR

MEDICAID PROGRAM

Sec. 2. (a)(1) Section 1842(b)(5) of the Social Security Act // 42 USC 1395u. // is amended by adding at the end thereof the following new sentence: " No payment which under the preceding sentence may be made directly to the physician or other person providing the service involved (pursuant to an assignment described in subparagraph (B)(ii) of paragraph (3)) shall be made to anyone else under a reassignment or power of attorney (except to an employer or facility as described in clause (A) or (B) of such sentence); but nothing in this subsection shall be construed (i) to prevent the making of such a payment in accordance with an assignment from the individual to whom the service was provided or a reassignment from the physician or other person providing such service if such assignment or reassignment is made to a governmental agency or entity or is established by or pursuant to the order of a court of competent jurisdiction, or (ii) to preclude an agent of the physician or other person providing the service from receiving any such payment if (but only if) such agent does so pursuant to an agency agreement under which the compensation to be paid to the agent for his services for or in connection with the billing or collection of payments due such physician or other person under this title is unrelated (directly or indirectly) to the amount of such payments or the billings therefor, and is not dependent upon the actual collection of any such payment.".

(2) Section 1815 of such Act // 42 USC 1395g. // is amended by adding at the end thereof the following new subsection:

"(c) No payment which may be made to a provider of services under this title for any service furnished to an individual shall be made to any other person under an assignment or power of attorney; but nothing in this subsection shall be construed (1) to prevent the making of such a payment in accordance with an assignment from the provider if such assignment is made to a governmental agency or entity or is established by or pursuant to the order of a court of competent jurisdiction, or (2) to preclude an agent of the provider of services from receiving any such payment if (but only if) such agent does so pursuant to an agency agreement under which the compensation to be paid to the agent for his services for on in connection with the billing or collection of payments due such provider under this title is unrelated (directly or indirectly) to the amount of such payments or the billings therefor, and is not dependent upon the actual collection of any such payment.".

(3) Section 1902(a)(32) of such Act is amended to read as follows:

"(32) provide that no payment under the plan for any care or service provided to an individual shall be made to anyone other than such individual or the person or institution providing such care or service, under an assignment or power of attorney or otherwise; except that--,

"(A) in the case of any care or service provided by a physician, dentist, or other individual practitioner, such payment may be made (i) to the employer of such physician, dentist, or other practitioner if such physician, dentist, or practitioner is required as a condition of his employment to turn over his fee for such care or service to his employer, or (ii) (where the care or service was provided in a hospital, clinic, or other facility) to the facility in which the care or service was provided if there is a contractual arrangement between such physician, dentist, or practitioner and such facility under which such facility submits the bill for such care or service; and

"(B) nothing in this paragraph shall be construed (i) to prevent the making of such a payment in accordance with an assignment from the person or institution providing the care or service involved if such assignment is made to a governmental agency or entity or is established by or pursuant to the order of a court of competent jurisdiction, or (ii) to preclude an agent of such person or institution from receiving any such payment if (but only if) such agent does so pursuant to an agency agreement under which the compensation to be paid to the agent for his services for or in connection with the billing or collection of payments due such person or institution under the plan is unrelated (directly or indirectly) to the amount of such payments or the billings therefor, and is not dependent upon the actual collection of any such payment;".

(4) The amendments made by this subsection shall apply with respect to care and services furnished on or after the date of the enactment of this Act.

(b)(1) Section 1902(a) of the Social Security Act is amended--,

(A) by striking out "and" at the end of paragraph (35);

(B) by striking out the period at the end of paragraph (36) and inserting in lieu thereof "; and";

(C) by inserting immediately after paragraph (36) the following new paragraph:

"(37) provide for claims payment procedures which (A) ensure that 90 per centum of claims for payment (for which no further written information or substantiation is required in order to make payment) made for services covered under the plan and furnished by health care practitioners through individual or group practices or through shared health facilities are paid within 30 days of the date of receipt of such claims and that 99 per centum of such claims are paid within 90 days of the date of receipt of such claims, and (B) provide for procedures of prepayment and postpayment claims review, including review of appropriate data with respect to the recipient and provider of a service and the nature of the service for which payment is claimed, to ensure the proper and efficient payment of claims and management of the program."; and

(D) by inserting at the end thereof the following paragraph:

" The requirement of clause (A) of paragraph (37) with respect to a State plan may be waived by the Secretary if he finds that the State has exercised good faith in trying to meet such requirement.".

(2) The amendments made by paragraph (1) // 42 USC 1396a note. // shall apply to calendar quarters beginning on and after July 1, 1978, with respect to State plans approved under title XIX of the Social Security Act. // 42 USC 1396. //

DISCLOSURE OF OWNERSHIP AND RELATED INFORMATION

Sec. 3. (a)(1) Part A of title XI of the Social Security Act // 42 USC 1301. // is amended by inserting immediately after section 1123 the following new section:

" DISCLOSURE OF OWNERSHIP AND RELATED INFORMATION

" Sec. 1124. // 42 USC 1320a-3. // The Secretary shall by regulation or by contract provision provide that each disclosing entity (as defined in paragraph (2)) shall--,

"(A) as a condition of the disclosing entity's participation in, or certification or recertification under, any of the programs established by titles V, XVIII, XIX, and XX,

// 42 USC 701, 1395, 1396, 1397. //

or

"(B) as condition for the approval or renewal of a contract or agreement between the disclosing entity and the Secretary or the appropriate State agency under any of the programs established under titles V, XVIII, XIX, and XX,

supply the Secretary or the appropriate State agency with full and complete information as to the identity of each person with an ownership or control interest (as defined in paragraph (3)) in the entity or in any subcontractor (as defined by the Secretary in regulations) in which the entity directly or indirectly has a 5 per centum or more ownership interest.

"(2) As used in this section, the term 'disclosing entity' means an entity which is--,

"(A) a provider of services (as defined in section 1861(u), o other than a fund), an independent clinical laboratory, a renal disease facility, or a health maintenance organization (as defined in section 1301(a) of the Public Health Service Act

// 42 USC 300e. //

);

"(B) an entity (other than an individual practitioner or group of practitioners) that furnishes, or arranges for the furnishing of, items, or services with respect to which payment may be claimed by the entity under any plan or program established pursuant to title V or under a State plan approved under title XIX;

"(C) a carrier or other agency or organization that is acting as a fiscal intermediary or agent with respect to one or more providers of services (for purposes of part A or part B of title XVIII, or both, or for purposes of a State plan approved under title XIX) pursuant to (i) an agreement under section 1816, 1ii) a contract under section 1842, or (iii) an agreement with a single State agency administering or supervising the administration of a State plan approved under title XIX; or

"(D) an entity (other than an individual practitioner or group of practitioners) that furnishes, or arranges for the furnishing of, health related services with respect to which payment may be claimed by the entity under a State plan or program approved under title XX.

"(3) As used in this section, the term 'person with an ownership or control interest' means, with respect to an entity, a person who--,

"(A) (i) has directly or indirectly (as determined by the Secretary in regulations) an ownership interest of 5 per centum or more in the entity; or

"(ii) is the owner (in whole or in part) of an interest of 5 per centum or more in any mortgage, deed of trust, note, or other obligation secured (in whole or in part) by the entity or any of the property or assets thereof; or

"(B) is officer or director of the entity, if the entity is organized as a corporation; or

"(C) is a partner in the entity, if the entity is organized as a partnership.

(2) Section 1861(j) (11) of such Act // 42 USC 1395x. // is amended to read as follows:

"(11) complies with the requirements of section 1124;".

(b) Clause (C) of section 1866(b)(2) of such Act // 42 USC 1395cc. // is amended by inserting "(i)" after "failed", and by adding after "to verify such information," the following: "or (ii) to supply (within such period as may be specified by the Secretary in regulations) upon request specifically addressed to such provider by the Secretary (I) full and complete information as to the ownership of a subcontractor (as defined by the Secretary in regulations) with whom such provider has had, during the previous twelve months, business transactions in an aggregate amount in excess of $25,000, and (II) full and complete information as to any significant business transactions (as defined by the Secretary in regulations), occurring during the five-year period ending on the date of such request, beteeen such provider and any wholly owned supplier or between such provider and any subcontractor,".

(c)(1) Section 1902(a) of such Act // 42 USC 1396a. // (as amended by section 2(b)(1) of this Act) is amended--,

(A) by amending paragraph (35) to read as follows:

"(35) provide that any intermediate care facility receiving payments under such plan complies with the requirements of section 1124;";

(B) by striking out "and" at the end of paragraph (36);

(C) by striking out the period at the end of paragraph (37) and inserting a lieu thereof (; and"; and

(D) by inserting after paragraph (37) the following new paragraph:

"(38) require that an entity (other than an individual practitioner or a group of practitioners) that furnishes, or arranges for the furnishing of, items or services under the plan, shall supply (within such period as may be specified in regulations by the Secretary or by the single State agency which administers or supervises the administration of the plan) upon request specifically addressed to such entity by the Secretary or such State agency, respectively, (A) full and complete information as to the ownership of a subcontractor (as defined by the Secretary in regulations) with whom such entity has had, during the previous twelve months, business transactions in an aggregate amount in excess of $25,000, and (B) full and complete information as to any significant business transactions (as defined by the Secretary in regulations), occurring during the five-year period ending on the date of such request, between such entity and any wholly owned supplier or between such entity and any subcontractor.".

(2) Section 1903(i)(2) of such Act // 42 USC 1396b. // is amended by inserting before the semicolon at the end thereof the following: ", or by reason of noncompliance with a request made by the Secretary under clause (C)(ii) of such section 1866(b)(2) // 42 USC 1395cc. // or under section 1902(a)(38) // 42 USC 1396a. // ".

(d)(1) Section 2003(d)(1) of such Act // 42 USC 1397b. // is amended--,

(A) by striking out "and" at the end of subparagraph (H);

(B) by striking out the period at the end of subparagraph (I) and inserting in lieu thereof "; and"; and

(C) by adding after subparagraph (I) the following new subparagraph:

"(J) provides that any entity (other than an individual practitioner or a group of practitioners) receiving payments for the provision of health related services complies with the requirements of section 1124, and supplies (within such period as may be specified in regulations by the Secretary or by the State agency which administers or supervises the administration of the plan) upon request specifically addressed to such entity by the Secretary or such State agency, respectively, (i) full and complete information as to the ownership of a subcontractor (as defined by the Secretary in regulations) with whom such entity has had, during the previous twelve months, business transactions in an aggregate amount in excess of $25,000, and 1ii) full and complete information as to any significant business transactions (as defined by the Secretary in regulations), occurring during the five-year period ending on the date of such request, between such entity and any wholly owned supplier or between such entity and any subcontractor.".

(2) Section 2002(a) of such Act // 42 USC 1397a. // is amended by adding at the end thereof the following new paragraph:

"(15) No payment may be made under this section with respect to any expenditure for the provision of any health related service if such service is provided by an entity which has failed to comply with a request made by the Secretary or State agency under section 2003 (d)( 1)(J), for so long as such entity remains in noncompliance with such request.".

(e) The amendment made by subsection (a)(1) // 42 USC 1320a-3 note. // shall apply with respect to certifications and recertifications made (and participation in the programs established by titles V, XVIII, XIX, and XX // 42 USC 701, 1395, 1396, 1397. // of the Social Security Act pursuant to certifications and recertifications made), and fiscal intermediary or agent agreements or contracts entered into or renewed, on and after the date of the enactment of this Act. The remaining amendments made by this section shall take effect on the date of the enactment of this Act; except that the amendments made by subsections (c) and (d) shall become effective January 1, 1978.

PENALTIES FOR DEFRAUDING MEDICARE AND MEDICAID PROGRAMS

Sec. 4. (a) Section 1877 of the Social Security Act // 42 USC 1395nn. // is amended to read as follows:

" PENALTIES

" Sec. 1877. (a) Whoever--,

"(1) knowingly and willfully makes or causes to be made any false statement or representation of a material fact in any application for any benefit or payment under this title,

"(2) at any time knowingly and willfully makes or cause to be made any false statement or representation of a material fact for use in determining rights to any such benefit or payment,

"(3) having knowledge of the occurrence of any event affecting (A) his initial or continued right to any such benefit or payment, or (B) the initial or continued right to any such benefit or payment of any other individual in whose behalf he has applied for or is receiving such benefit or payment, conceals or fails to disclose such event with an intent fraudulently to secure such benefit or payment either in a greater amount or quantity than is due or when no such benefit or payment is authorized, or

"(4) having made application to receive any such benefit or payment for the use and benefit of another and having received it, knowingly and willfully converts such benefit or payment or any part thereof to a use other than for the use and benefit of such other person,

shall (i) in the case of such a statement, representation, concealment, failure, or conversion by any person in connection with the furnishing (by that person) of items or services for which payment is or may be made under this title, be guilty of a felony and upon conviction thereof fined not more than $25,000 or imprisoned for not more than five years or both, or (ii) in the case of such a statement, representation, concealment, failure, or conversion by any other person, be guilty of a misdemeanor and upon conviction thereof fined not more than $10,000 or imprisoned for not more than one year, or both.

"(b)(1) Whoever solicits or receives any remuneration (including any kickback, bribe, or rebate) directly or indirectly, overtly or covertly, in cash or in kind--,

"(A) in return for referring an individual to a person for the furnishing or arranging for the furnishing of any item or service for which payment may be made in whole or in part under this title, or

"(B) in return for pruchasing, leasing, ordering, or arranging for or recommending purchasing, leasing, or ordering any good, facility, service, or item for which payment may be made in whole or in part under this title,

shall be guilty of a felony and upon conviction thereof, shall be fined not more than $25,000 or imprisoned for not more than five years, or both.

"(2) Whoever offeres or pays any remuneration (including any kickback, bribe, or rebate) directly or indirectly, overtly or covertly, in cash or in kind to any person to induce such person--,

"(A) to refer an individual to a person for the furnishing or arranging for the furnishing of any item or service for which payment may be made in whole or in part under this title, or

"(B) to purchase, lease, order, or arrange for or recommend purchasing, leasing, or ordering any good, facility, service, or item for which payment may be made in whole or in part under this title,

shall be guilty of a felony and upon conviction thereof, shall be fined not more than $25,000 or imprisoned for not more than five years, or both.

"(3) Paragraphs (1) and (2) shall not apply to--,

"(A) a discout or other reduction in price obtained by a provider of services or other entity under this title if the reduction in price is properly disclosed and appropriately reflected in the costs claimed or charges made by the provider or entity under this title; and

"(B) any amount paid by an employer to an employee (who has a bona fide employment relationship with such employer) for employment in the provision of covered items or services.

"(c) Whoever knowingly and willfully makes or causes to be made, or induces or seeks to induce the making of, any false statement or representation of a material fact with respect to the conditions or operation of any institution or facility in order that such institution or facility may qualify (either upon initial certification or upon recertification) as a hospital, skilled nursing facility, or home health agency (as those terms are defined in section 1861), shall be guilty of a felony and upon conviction thereof shall be fined not more than $25,000 or imprisoned for not more than five years, or both.

"(d) Whoever accepts assignments described in section 1842(b)(3) (B)(ii) and knowingly, willfully, and repeatedly violates the term of such assignments specified in subclause (I) of such section, shall be guilty of a misdemeanor and upon conviction thereof shall be fined not more than $2,000 or imprisoned for not more than six months, or both.".

(b) Section 1909 of such Act // 42 USC 1396h. // is amended to read as follows:

" PENALTIES

" Sec. 1909. (a) Whoever--,

"(1) knowingly and willfully makes or causes to be made any false statement or representation of a material fact in any application for any benefit or payment under a State plan approved under this title,

"(2) at any time knowingly and willfully makes or causes to be made any false statement or representation of a material fact for use in determining rights to such benefit or payment,

"(3) having knowledge of the occurrence of any event affecting (A) his initial or continued right to any such benefit or payment, or (B) the initial or continued right to any such benefit or payment of any other individual in whose behalf he has applied for or is receiving such benefit or payment, conceals or fails to disclose such event with an intent fraudulently to secure such benefit or payment either in a greater amount or quantity than is due or when no such benefit or payment is authorized, or

"(4) having made application to receive any such benefit or payment for the use and benefit of another and having received it, knowingly and willfully converts such benefit or payment or any part thereof to a use other than for the use and benefit of such other person,

shall (i) in the case of such a statement, representation, concealment, failure, or conversion by any person in connection with the furnishing (by that person) of items or services for which payment is or may be made under this title, be guilty of a felony and upon conviction thereof fined not more than $25,000 or imprisoned for not more than five years or both, or (ii) in the case of such a statement, representation, concealment, failure, or conversion by any other person, be guilty of a misdemeanor and upon conviction thereof fined not more than $10,000 or imprisoned for not more than one year, or both. In addition, in any case where an individual who is otherwise eligible for assistance under a State plan approved under this title is convicted of an offense under the preceding provisions of this subsection, the State may at its option (notwithstanding any other provision of this title or of such plan) limit, restrict, or suspend the eligibility of that individual for such period (not exceeding one year) as it deems appropriate; but the imposition of a limitation, restriction, or suspension with respect to the eligibility of any individual under this sentence shall not affect the eligibility of any other person for assistance under the plan, regardless of the relationship between that individual and such other person.

"(b)(1) Whoever solicits or receives any remuneration (including any kickback, bribe, or rebate) directly or indirectly, overtly or covertly, in cash or in kind--,

"(A) in return for referring an individual to a person for the furnishing or arranging for the furnishing of any item or service for which payment may be made in whole or in part under this title, or

"(B) in return for purchasing, leasing, ordering, or arranging for or recommending purchasing, leasing, or ordering any good, facility, service, or item for which payment may be made in whole or in part under this title,

shall be guilty of a felony and upon conviction thereof, shall be fined not more than $25,000 or imprisoned for not more than five years, or both.

"(2) Whoever offers or pays any remuneration (including any kickback, bribe, or rebate) directly or indirectly, overtly or covertly, in cash or in kind to any person to induce such person--,

"(A) to refer an individual to a person for the furnishing or arranging for the furnishing of any item or service for which payment may be made in whole or in part under this title, or

"(B) to purchase, lease, order, or arrange for or recommend purchasing, leasing, or ordering any good, facility, service, or item for which payment may be made in whole or in part under this title,

shall be guilty of a felony and upon conviction thereof, shall be fined not more than $25,000 or imprisoned for not more than five years, or both.

"(3) Paragraphs (1) and (2) shall not apply to--,

"(A) a discount or other reduction in price obtained by a provider of services or other entity under this title if the reduction in price is properly disclosed and appropriately reflected in the costs claimed or charges made by the provider or entity under this title; and

"(B) any amount paid by an employer to an employee (who has a bona fide employment relationship with such employer) for employment in the provision of covered items or services.

"(c) Whoever knowingly and willfully makes or causes to be made, or induces or seeks to induce the making of, any false statement or representation of a material fact with respect to the conditions or operation of any institution or facility in order that such institution or facility may qualify (either upon initial certification or upon recertification) as a hospital, skilled nursing facility, intermediate care facility, or home health agency (as those terms are employed in this title) shall be guilty of a felony and upon conviction thereof shall be fined not more than $25,000 or imprisoned for not more than five years, or both.

"(d) Whoever knowingly and willfully--,

"(1) charges, for any service provided to a patient under a State plan approved under this title, money or other consideration at a rate in excess of the rates established by the State, or

"(2) charges, solicits, accepts, or receives, in addition to any amount otherwise required to be paid under a State plan approved under this title, any gift, money, donation, or other consideration (other than a charitable, religious, or philanthropic contribution from an organization or from a person unrelated to the patient)--,

"(A) as a precondition of admitting a patient to a hospital, skilled nursing facility, or intermediate care facility, or

"(B) as a requirement for the patient's continued stay in such a facility, when the cost of the services provided therein to the patient is paid for (in whole or in part) under the State plan,

shall be guilty of a felony and upon conviction thereof shall be fined not more than $25,000 or imprisoned for not more than five years, or both.".

(c) Section 204(a) of Public Law 94 - 505 (42 U.S.C. 3524) (relating to annual reports of the Health, Education, and Welfare Inspector General) is amended by adding at the end thereof the following sentences: " Such report also shall include a detailed description of the cases referred by the Department of Health, Education, and Welfare to the Department of Justice during the period covered by the report, an evaluation of the performance of the Department of Justice in the investigation and prosecution of criminal violations relating to fraud in the programs of health insurance and medical assistance provided under titles XVIII and XIX of the Social Security Act, // 42 USC 1365, 1396. // and any recommendations with respect to improving the performance of such activities by the Department of Justice. Promptly, after the Inspector General submits such a report to Congress, the Attorney General shall report to Congress concerning the details of the disposition of the cases referred to the Department of Justice and described in the Inspector General's report.".

(d) The amendments made by subsections (a) and (b) // 42 USC 1395nn note. // shall apply with respect to acts occurring and statements or representations made on or after the date of the enactment of this Act.

AMENDMENTS RELATED TO PROFESSIONAL STANDARDS REVIEW ORGANIZATIONS

Sec. 5. (a) Section 1152(e) of the Social Security Act // 42 USC 1320c-1. // is amended to read as follows:

"(e) Where the Secretary finds a Professinal Standards Review Organization (whether designated on a conditional basis or otherwise) to be competent to perform review responsibilities, the review, certification, and similar activities otherwise required pursuant to provisions of this Act (other than this part) shall not be applicable with respect to those providers, suppliers, and practitioners being reviewed by such Professional Standards Review Organization, except to the extent specified by the Secretary. Nothing in the preceding sentence shall be construed as rendering inapplicable any provision of this Act wherein requirements with respect to conditions for eligibility to or payment of benefits (as distinct from reviews and certifications made with respect to determinations of the kind made pursuant to paragraphs (1) and (2) of section 1155(a)) // 42 USC 1320c-4. // must be satisfied.".

(b)(1) Section 1154(b) os such Act // 42 USC 1320c-3. // is amended--,

(A) by striking out "(which may not exceed 24 months)" in the first sentence and inserting in lieu thereof "(which may not exceed 48 months except as provided in subsection (c))";

(B) by inserting ", in addition to review of health care services provided by or in institution," in the first sentence after "perform"; and

(C) by striking out "or ordered by physicians" and all that follows through "and organizations" in the second sentence and inserting in lieu thereof "by or in institutions (including ancillary service) and, in addition, review of such other health care services as the Secretary may require".

(2) Section 1154 of such Act is further amended by redesignating subsection (c) as subsection (d) and by inserting after subsection (b) the following new subsection:

"(c) If the Secretary finds that an organization designated under subsection (a) has been unable to perform satisfactorily all of the duties and functions required under this part for reasons beyond the organization's control, he may extend such organization's trial period for an additional period not exceeding twenty-four months.".

(c)(1) Section 1155 of such Act // 42 USC 1320c-4. // is amended--,

(A) by striking out "directly or indirectly involved in" in subsection (a)(6)(A) and inserting in lieu thereof "directly responsible for";

(B) by striking out "any financial" in subsection (a)(6)(B) and inserting in lieu thereof "a significant financial";

(C) by inserting after subsection (f)(2) the following new paragraph:

"(3) Any such agreement with an organization under this part may be in the form of a grant or an assistance agreement."; and

(D) by striking out subsection (g) and inserting in lieu thereof the following new subsection:

"(g)(1) Where a Professional Standards Review Organization (whether designated on a conditional basis or otherwise) requests review responsibility with respect to services furnished in shared health facilities, the Secretary must give priority to such request, with the highest priority being assigned to requests from organizations located in areas with substantial numbers of shared health facilities.

"(2) The Secretary shall require any Professional Standards Review Organization which is capable of exercising review responsibility with respect to ambulatory care services to perform review responsibility with respect to such services on and after a date not earlier than the date the organization is designated as a Professional Standards Review Organization (other than under section 1154) and not later than two years after the date the organization has been so designated, but any such designated Professional Standards Review Organization may be approved to perform such review responsibility at any earlier time if such organization applies for, and is found capable of exercising, such responsibility.".

(2) Section 1101(a) of such Act // 42 USC 1301. // is amended by inserting after paragraph (8) the following new paragraph:

"(9) The term 'shared health facility' means any arrangement whereby--,

"(A) two or more health care practitioners practice their professions at a common physical location:

"(B) such practitioners share (i) common waiting areas, examining rooms, treatment rooms, or other space, (ii) the services of supporting staff, or (iii) equipment;

"(C) such practitioners have a person (who may himself be a practitioner)--,

"(i) who is in charge of, controls, manages, or supervises substatntial aspects of the arrangement or operation for the delivery of health or medical services at such common physical location, other than the direct furnishing of professional health care services by the practitioners to their patients; or

"(ii) who makes available to such practitioners the services of supporting staff who are not employees of such practitioners; and who is compensated in whole or in part, for the use of such common physical location or support services pertaining thereto, on a basis related to amounts charged or collected for the services rendered or ordered at such location or on any basis clearly unrelated to the value of the services provided by the person; and

"(D) at least one of such practitioners received payments on a fee-for-service basis under titles V, XVIII, and XIX

// 42 USC 701, 1395, 1396. //

in an amount exceeding $5,000 for any one month during the preceding 12 months or in an aggregate amount exceeding $40,000 during the preceding 12 months;

except that such term does not include a provider of services (as defined in section 1861(u) of this Act), // 42 USC 1395. // a health maintenance organization (as defined in section 1301(a) of the Public Health Service Act), // 42 USC 300e. // a hospital cooperative shared services organization meeting the requirements of section 501(e) of the Internal Revenue Code of 1954, // 26 USC 501 // or any public entity.".

(d)(1) Section 1158 of such Act // 42 USC 1320c-7. // is amended by adding at the end thereof the following new subsection:

"(c) Where a Professional Standards Review Organization (whether designated on a conditional basis or otherwise) has been found competent by the Secretary to assume review responsibility with respect to specified types of health care services or specified providers or practitioners of such services and is performing such reviews, determinations made pursuant to paragraphs (1) and (2) of section 1155 // 42 USC 1320c-4. // (a) in connection with such reviews shall constitute the conclusive determination on those issues (subject to sections 1159, 1171(a)(1), // 42 USC 1320c-8. // and 1171(d)(3)) for purposes of payment under this Act, and no reviews with respect to those determinations shall be conducted, for purposes of payment, by agencies and organizations which are parties to agreements entered into by the Secretary pursuant to section 1816, // 42 USC 1395h. // carriers which are parties to contracts entered into by the Secretary pursuant to section 1842, // 42 USC 1395u. // or single State agencies administering or supervising the administration of State plans approved under title XIX.".

(2)(A) Section 1152(b)(2) of such Act // 42 USC 1320c-1. // is amended by striking out "submitted to him by the association, agency, or organization" and inserting in lieu thereof "which shall be developed and submitted by the association, agency, or organization in accordance with subsection (h)".

(B) Section 1152 of such Act is further amended by adding at the end thereof the following new subsection:

"(h)(1) During the development and preparation by an organization of its formal plan under subsection (b)(2) or of any modification of such plan to include review of services in skilled nursing facilities (as defined in section 1861(j)) // 42 USC 1395x. // or intermediate care facilities (as defined in section 1905(c)) // 42 USC 1396d. // or review of ambulatory care services, the organization shall consult with the single State agency responsible for administering or supervising the administration of the State plan approved under title XIX // 42 USC 1396. // for the State in which the organization is located.

"(e) Such plan and any such modification shall be submitted to the Governor of such State, at the time of its submission to the Secretary, for his comments.

"(3) The Secretary, before making the findings described in subsection (b)(2) or a finding regarding the organization's capability to perform review of such services (as the case may be), shall consider any such comments submitted to him by such Governor before the end of the thirty-day period beginning on the date of submission of the plan or of any such modification (as the case may be).

"(4) If, after considering such comments, the Secretary intends to make findings which are adverse to such comments, the Secretary shall provide the Governor making such comments with the opportunity to submit additional evidence and comments on such intended findings during a period of not less than thirty days ending before the findings became effective.".

(C) Section 1154 of such Act (as amended by subsection (b)(2) of this section) is further amended by adding after subsection (d) the following new subsection:

"(e) In determining whether an organization designated on a conditional basis as the Professional Standards Review Organization for any area is substantially carrying out its duties in a satisfactory manner and should be considered a qualified organization, the Secretary shall follow the procedures specified in section 1152(h) (concerning the Secretary's consideration of comments of the Governor of the State in which the organization is located).".

(D) Part B of title XI of such Act is amended by adding after section 1170 // 42 USC 1320c-19. // the following new section:

" MEMORANDUMS OF UNDERSTANDING; FEDERAL- STATE

RELATIONS GENERALLY

" Sec. 1171. // 42 USC 1320c-20. // (a)(1) Except as provided in paragraph (2), no determination made by a Professional Standards Review Organization pursuant to paragraphs (1) and (2) of section 1155(a) // 42 USC 1320c-4. // in connection with reviews shall constitute conclusive determinations under section 1158(c) for purposes of payment under title XIX, // 42 USC 1396. // unless such organization has entered into a memorandum of understanding, approved by the Secretary, with the single State agency responsible for administering or supervising the administration of the State plan approved under title XIX for the State in which the organization is located (hereinafter in this section referred to as the ' State agency') for the purpose of delineating the relationship between the organization and the State agency and of providing for the exchange of data or information, and for administrative procedures, coordination mechanisms, and modification of the memorandum at any time that additional responsibility for review by the organization is authorized by the Secretary.

"(2) The requirement of paragraph (1) may be waived by the Secretary if (A) the State agency indicates to the Secretary that it does not wish to enter into a memorandum of understanding with the organization involved, or (B) the Secretary finds that the State agency has refused to negotiate in good faith or in a timely manner with the organization involved.

"(b)(1) The State agency may request a Professional Standards Review Organization which is entering into such a memorandum of understanding with the agency to include in the memorandum a specification of review goals or methods (additional to any such goals or methods contained in the organization's formal plan) for the performance of the organization's duties and functions under this part.

"(2) If the agency and the organization cannot reach agreement regarding the inclusion of any such requested specification, the Secretary shall review such specification and shall require that the specification be included in the memorandum to the extent that the Secretary determines that such specification of goals or methods (A) is consistent with the functions of the organization under this part and with the provisions of title XIX // 42 USC 1396. // and the State's plan approved under such title, and (B) does not seriously impact on the effectiveness and uniformity of the organization's review of health care services paid for under title XVIII and title XIX of this Act. // 42 USC 1395. //

"(c) Notwithstanding any other provision of this Act, the State agency may contract with any Professional Standards Review Organization located in the State for the performance of review responsibilities in addition to those performed pursuant to this part (and the cost of performance of such additional responsibilities is reimbursable as an expense of the State agency under section 1903(a)) // 42 USC 1396b. // if--,

"(1) the State agency formally requests the performance of such additional responsibilities, and

"(2) the performance of such additional responsibilities is not inconsistent with this part and is provided for in an amendment to the State's plan which is approved by the Secretary under title XIX.

"(d)(1) Each State agency may monitor the performance of review responsibilities by Professional Standards Review Organizations located within the State, in accordance with a State monitoring plan which is developed after review and comment by such organizations and is approved by the Secretary. The costs of activities of the State agency under and in accordance with such plan are reimbursable as an expense of the State agency under section 1903(a).

"(2) A monitoring plan developed and approved under paragraph (1) may include a specification of performance criteria for judging the effectiveness of the review performance of the Professional Standards Review Organizations. If the State agency and the Professional Standards Review Organizations cannot reach agreement regarding such criteria, the Secretary shall assist the agency and organizations in resolving the matters in dispute.

"(3)(A) Whenever a State agency monitoring the performance of review responsibilities by a Professional Standards Review Organization under a plan developed and approved under paragraph (1) submits to the Secretary reasonable documentation that the review determinations of such organization have caused an unreasonable and detrimental impact on total State expenditures under title XIX and on the appropriateness of care received by individuals under the State's plan approved under such title, and requests the Secretary to act, the Secretary shall, within thirty days from the date of receipt of the documentation, make a determination as to the reasonableness of the allegation by the State agency. If the Secretary determines that the review determinations of such organization have caused an unreasonable and detrimental impact on total State expenditures under title XIX and on the appropriateness of care received by individuals under the State's plan approved under such title, unless the Secretary determines that the organization has taken appropriate corrective action, he shall immediately suspend such organization's authority in whole or in part under section 1158(c) to make conclusive determinations for purposes of payment under title XIX // 42 USC 1396. // (and he may suspend such authority for purposes of payment under title XVIII // 42 USC 1395. // until he (i) reevaluates such organization's performance of the responsibilities involved and determines that such performance does not have such unreasonable and detrimental impact, or (ii) determines that the organization has taken appropriate corrective action. Any determination made by the Secretary under this subparagraph shall be final and shall not be subject to judicial review.

"(B) The Secretary shall notify the State agency submitting such documentation, and the organization involved, in writing, of his determination, any subsequent actions taken, and the basis thereof, and shall notify the appropriate committees of the United States House of Representatives and the Senate of any such documentation submitted and the actions taken.

"(e)(1) The Secretary shall in a timely manner establish procedures and mechanisms to govern his relationships with State agencies under this part (specifically including his relationships with such agencies in connection with their respective functions under the preceding provisions of this section). Such mechanisms shall include periodic consultation by the Secretary with State agency representatives and representatives of Professional Standards Review Organizations regarding relationships between such agencies and such organizations (including the appropriate exchange of data and information between such agencies and such organizations) and other problems of mutual concern, and such procedures shall permit the State agency to be represented on any project assessments conducted by the Secretary with respect to a Professional Standards Review Organization located within its State.

"(2) Each Professional Standards Review Organization shall provide to the State agency for the State in which it is located, upon request, data or information which the Secretary requires such organizations to report to him routinely on a periodic basis, and such other data or information as the Secretary authorizes to be disclosed.".

(3)(A) Section 1155(e)(1) of such Act // 42 USC 1320c-4. // is amended by striking out "of a hospital or other operating health care facility or organization" and inserting in lieu thereof "of a hospital (including any skilled nursing facility, as defined in section 1861(j), // 42 USC 1396d. // or intermediate care facility, as defined in section 1905(c), which is also a part of such hospital) or other operating health care facility or organization (other than such a skilled nursing facility or intermediate care facility which is not a part of a hospital)".

(B) Section 1155(a) of such Act is amended--,

(i) by inserting "(except as provided in paragraph (7))" in paragraph (1) after "institutional and noninstitutional providers of health care services"; and

(ii) by inserting after paragraph (6) the following new paragraph:

"(7)(A) Except as provided in subparagraph (B), a Professional Standards Review Organization located in a State has the function and duty to assume responsibility for the review under paragraph (1) of professional activities in intermediate care facilities (as defined in section 1905(c)) and in public institutions for the mentally retarded (described in section 1905(d)(1)) only if (i) the Secretary finds, on the basis of such documentation as he may require from the State, that the single State agency which administers or supervises the administration of the State plan approved under title XIX // 42 USC 1396. // for that State is not performing effective review of the quality and necessity of health care services provided in such facilities and institutions, or (ii) the State requests such organization to assume such responsibility.

"(B) A Professional Standards Review Organization located in a State has the function and duty to assume responsibility for the review under paragraph (1) of professional activities in intermediate care facilities in the State that are also skilled nursing facilities (as defined in section 1861(j)), to the extent that the Secretary finds that the performance of such function by the single State agency (described in subparagraph (A)) for that State is inefficient.".

(e) Section 1160(b)(1) of such Act // 42 USC 1320c-9. // is amended by striking out "practitioner or provider" and inserting in lieu thereof "health care practitioner or hospital, or other health care facility, agency, or organization" each time it appears therein.

(f) Section 1163(a)(2) of such Act // 42 USC 1320c-12. // is amended to read as follows:

"(2) Members of the Council shall be appointed for a term of three years, except that the Secretary may provide, in the case of any terms scheduled to expire after January 1, 1978, for such shorter terms as will ensure that (on a continuing basis) the terms of no more than four members expire in any year. Members of the Council shall be eligible for reappointment.".

(g) Section 1163 of such Act is amended by striking out subsection (f).

(h) Section 1166 of such Act // 42 USC 1320c-15. // is amended--,

( ) by striking out "or (2)" in subsection (a) and inserting in lieu thereof ", (2)";

(2) by inserting the following immediately before the period at the end of subsection (a): ", or (3) in accordance with subsection (b)";

(3) by redesignating subsection (b) as subsection (c);

(4) by inserting the following new subsection immediately after subsection (a);

"(b) A Professional Standards Review Organizations shall provide, in accorance with procedures established by the Secretary, data and information--,

"(1) to assist Federal and State agencies recognized by the secretary as having responsibility for identifying and investigating cases or patterns of fraud or abuse, which data and information shall be provided by such organization to such agencies at the request of such agencies at the discretion of such Organization on the basis of its findings with respect to evidence of fraud or abuse; and

"(2) to assist the Secretary, and such Federal and State agencies recognized by the Secretary as having health planning or related responsibilities under Federal or State law (including health systems agencies and State health planning and development agencies), in carrying out appropriate health care planning and related activities, which data and information shall be provided in such format and manner as may be prescribed by the Secretary or agreed upon by the responsible Federal and State agencies and such Organization, and shall be in the form of aggregate statistical data (without identifying any individual) on a geographic, institutional, or other basis reflecting the volume and frequency of services furnished, as well as the demographic characteristics of the population subject to review by such Organization.

The penalty provided in subsection (c) shall not apply to the disclosure of any data and information received under this subsection, except that such penalty shall apply to the disclosure (by the agency receiving such data and information) of any such data and information described in paragraph (1) unless such disclosure is made in a judicial, administrative, or other formal legal proceeding resulting from an investigation conducted by the agency receiving the data and information."; and

(5) by inserting after subsection (c)

// 42 USC 1320c-15. // (as so redesignated) the

following new subsection:

"(d) No patient record in the possession of a Professional Standards Review Organization, a Statewide Professional Standards Review Council, or the National Professional Standards Review Council shall be subject to subpena or discovery proceedings in a civil action.".

(i) Section 1167 of such Act // 42 USC 1320c-16. // is amended by adding the following new subsection at the end thereof:

"(d) The Secretary shall make payment to a Professional Standards Review Organization, whether conditionally designated or qualified, or to any member or employee thereof, or to any person who furnishes legal counsel or services to such organization, in an amount equal to the reasonable amount of the expenses incurred, as determined by the Secretary, in connection with the defense of any suit, action, or proceeding brought against such organization, member, or employee related to the performance of any duty or function of such organization, member, or employee (as described in section 1155.". // 42 USC 1320c-4. //

(j): Section 1168 of such Act // 42 USC 1320c-17. // is amended by adding at the end thereof the following new sentence: " The Secretary shall make payments to Professional Standards Review Organizations (whether designated on a conditional basis or otherwise) from funds described in the first sentence of this section (without any requirement for the contribution of funds by any State or political subdivision thereof) for expenses incurred in the performance of duties by such Orgnizations.".

(k) Part B of title XI of such Act (as amended by subsection (d) (2)(D) of this section) is further amended by adding after section 1171 the following new section:

" ANNUAL REPORTS

" Sec. 1172. // 42 USC 1320c-21. // The Secretary shall submit to the Congress not later than April 1, 1978, and not later than April 1 of each year thereafter, a full and complete report on the administration, impact, and cost of the program under this part during the preceding fiscal year, including data and information on--,

"(1) the number, status (conditional or otherwise), and service areas of, and review methodologies employed by, all Professional Standards Review Organizations participating in the program;

"(2) the number of health care institutions and practitioners whose services are subject to review by Professional Standards Review Organizations, and the number of beneficiaries and recipients who received services subject to such review during such year;

"(3) the imposition of penalties and sanctions under this title for violations of law and for failure to comply with the obligations imposed by this part;

"(4) the total costs incurred under titles V, XI, XVIII, and XIX of this Act

// 42 USC 701, 1301, 1395, 1396. //

in the implementation and operation of all procedures required by such titles for the review of services to determine their medical necessity, appropriateness of use, and quality;

"(5) changes in utilization rates and patterns, and changes in medical procedures and practices, attributable to the activities of Professional Standards Review Organizations;

"(6) the results of program evaluation activities, including the operation of data collection systems and the status of Professional Standards Review Organization data policy and implementation;

"(7) the extent to which Professional Standards Review Organizations are performing reviews of services for other governmental or private health insurance programs; and

"(8) recommendations for legislative changes.".

(1)(1) Title XI of such Act (as amended by subsections (d)(2)(D) and (k) of this section) is further amended by adding after section 1172 the following new section:

" MEDICAL OFFICERS IN AMERICAN SAMOA, THE NORTHERN MARIANA ISLANDS, AND THE TRUST TERRITORY OF THE PACIFIC ISLANDS TO BE INCLUDED IN THE PROFESSIONAL STANDARDS REVIEW PROGRAM

" Sec. 1173. // 42 USC 1320c-22. // For purposes of applying this part (except sections 1155(c) and 1163) // 42 USC 1320c-4. // to American Samoa, the Northern Mariana Islands, and the Trust Territory of the Pacific Islands, individuals licensed to practice medicine in those places shall be considered to be physicians and doctors of medicine.".

(2) The second sentence of section 1101(a)(1) of such Act // 42 USC 1395x. // is amended by inserting "and in part B of this title" after "title V".

(m) Section 1861(w)(2) of such Act // 42 USC 1395x. // is amended by inserting "part B of this title or under" immediately after "entitled to have payment made for such services under".

(n) Section 1167 of such Act // 42 USC 1320c-16. // is amended--,

(1) by inserting "or to any Statewide Professional Standards Review Council" in subsection (a) after " Professional Standards Review Organization";

(2) by inserting "or such Council" in subsection (a) after "such Organization";

(3) by inserting "or of any Statewide Professional Standards Review Organization";

(4) by inserting "or council" in subsection (b)(1) after "organization";

(5) by inserting "or of Statewide Professional Standards Review Councils" in subsection (b)(1) after " Review Organizations"; and

(6) by inserting " AND STATEWIDE PROFESSIONAL STANDARDS REVIEW COUNCILS" in the heading of the section after " PROFESSIONAL STANDARDS REVIEW ORGANIZATIONS".

(o)(1) Section 1152(b)(1)(A) of such Act // 42 USC 1320c-1. // is amended by striking out "subsection (c)(i)" and inserting in lieu thereof "subsection (c)(1)".

(2) Section 1155(a)(1) of such Act // 42 USC 1320c-4. // is amended by striking out "(subject to the provisions of subsection (g))" in the matter preceding subparagraph (A).

(3) Section 1160(b)(1) of such Act is amended by inserting "or" after "permanently" in the matter following subparagraph (B).

(p) Section 1155(a)(5) of such Act // 42 USC 1320c-4. // is amended by striking out all that follows " Professional Standards Review Organization" and inserting in lieu thereof a period.

ISSUANCE OF SUBPENAS BY COMPTROLLER GENERAL

Sec. 6. Part A of title XI of the Social Security Act is amended by inserting after section 1124 (added by section 3(a) of this Act) the following new section:

" ISSUANCE OF SUBPENAS BY COMPTROLLER GENERAL

" Sec. 1125. // 42 USC 1320a-4. // (a) For the purpose of any audit, investigation, examination, analysis, review, evaluation, or other function authorized by law with respect to any program authorized under this Act, the Comptroller General of the United States shall have power to sign and issue subpenas to any person requiring the production of any pertinent books, records, documents, or other information. Subpenas so issued by the Comptroller General shall be served by anyone authorized by him (1) by delivering a copy thereof to the person named therein, or (2) by registered mail or by certified mail addressed to such person at his last dwelling place or principal place of business. A verified return by the person so serving the subpena setting forth the manner of service, or, in the case of service by registered mail or by certified mail, the return post office receipt therefor signed by the person so served, shall be proof of service.

"(b) In case of contumacy by, or refusal to obey a subpena issued pursuant to subsection (a) of this section and duly served upon, any person, any district court of the United States for the judicial district in which such person charged with contumacy or refusal to obey is found or resides or transacts business, upon application by the Comptroller General, shall have jurisdiction to issue an order requiring such person to produce the books, records, documents, or other information sought by the subpena; and any failure to obey such order of the court may be punished by the court as a contempt thereof. In proceedings brought under this subsection, the Comptroller General shall be represented by attorneys employed in the General Accounting Office or by counsel whom he may employ without regard to the provisions of title 5, United States Code, // 5 USC 101 et seq. // governing appointments in the competitive service, and the provisions of chapter 5 and subchapters III and VI of chapter 53 of such title, // 5 USC 5101, 5331, 5361. // relating to classification and General Schedule pay rates.

"(c) No personal medical record in the possession of the General Accounting Office shall be subject to subpena or discovery proceedings in a civil action.".

SUSPENSION OF PRACTITIONERS CONVICTED OF MEDICARE- OR MEDICAID- RELATED CRIMES

Sec. 7. (a) Section 1862 of the Social Security Act // 42 USC 1395y. // is amended by adding at the end thereof the following new subsection:

"(e)(1) Whenever the Secretary determines that a physician or other individual practitioner has been convicted (on or after the date of the enactment of this subsection, or within such period prior to that date as the Secretary shall specify in regulations) of a criminal offense related to such physician's or practitioner's involvement in the programs under this title or the program under title XIX, // 42 USC 1396. // the Secretary shall suspend such physician or practitioner from participation in the program under this title for such period as he may deem appropriate; and no payment may be made under this title with respect to any item or service furnished by such physician or practitioner during the period of such suspension. The provisions of paragraphs (2) and (3) of subsection (d) shall apply with respect to determinations made by the Secretary under this subsection.

"(2) In any case where the Secretary under paragraph (1) suspends any physician or other individual practitioner from participation in the program under this title, he shall--,

"(A) promptly notify each single State agency which administers or supervises the administration of a State plan approved under title XIX

// 42 USC 1396. //

of the fact, circumstances, and period of such suspension; and

"(B) promptly notify the appropriate State or local agency or authority having responsibility for the licensing or certification of such physician or practitioner of the fact and circumstances of such suspension, request that appropriate investigations be made and sanctions invoked in accordance with applicable State law and policy, and request that such State or local agency or authority keep the Secretary and the Inspector General of the Department of Health, Education, and Welfare fully and currently informed with respect to any actions taken in response to such request.".

(b) Section 1902(a) of such Act (as amended by section 2(b) and 3(c) of this Act): is amended--,

(1) by striking out "and" at the end of paragraph (37);

(2) by striking out the period at the end of paragraph (38) and inserting in lieu thereof "; and"; and

(3) by inserting after paragraph (38) the following new paragraph:

"(39) provide that, subject to subsection (g), whenever the single State agency which administers or supervises the administration of the State plan is notified by the Secretary under section 1862(e)(2)(A) that a physician or other individual practitioner has been suspended from participation in the program under title XVIII,

// 42 USC 1395. //

the agency shall promptly suspend such physician or practitioner from participation in the plan for not less than the period specified in such notice, and no payment may be made under the plan with respect to any item or service furnished by such physician or practitioner during the period of the suspension under this title.".

(c) Section 1902 of such Act is amended by adding after subsection (f) the following new subsection:

"(g) The Secretary may waive suspension under subsection (a)(39) of a physician's or practitioner's participation in a State plan approved under this title and of the prohibition under such subsection of payment for any item or service furnished by him during the period of such suspension, if the single State agency which administers or supervises the administration of the plan submits a request to the Secretary for such waiver and if the Secretary approves such request.".

(d) Section 332(c) of the Public Health Service Act // 42 USC 254e. // (relating to considerations in the designation of health manpower shortage areas) is amended by inserting after paragraph (2) the following new pragraph:

"(3) The extent to which individuals who are (A) residents of the area, members of the population group, or patients in the medical facility or other pubic facility under consideration for designation, and (B) entitled to have payment made for medical services under title XVIII or XIX of the Social Security Act,

// 42 USC 1395, 13906. //

cannot obtain such services because of suspension of physicians from the programs under such titles.".

(e)(1) The amendment made by subsection (d) // 42 USC 254e note. // shall apply with respect to determinations and designations made on and after the date of the enactment of this Act.

(2) // 42 USC 1396a note. // The amendment made by subsection (b) shall become effective on January 1, 1978.

DISCLOSURE BY PROVIDERS OF OWNERS AND CERTAIN OTHER INDIVIDUALS CONVICTED OF CERTAIN OFFENSES

Sec. 8. (a) Part A of title XI of the Social Security Act is amended by inserting after section 1125 (added by section 6 of this Act) the following new section:

" DISCLOSURE BY INSTITUTIONS, ORGANIZATIONS, AND AGENCIES OF OWNERS AND CERTAIN OTHER INDIVIDUALS WHO HAVE BEEN CONVICTED OF CERTAIN OFFENSES

" Sec. 1126. // 42 USC 1320a-5. // (a) As a condition of participation in or certification or recertification under the programs established by titles XVIII, XIX, and XX, // 42 USC 1395, 1396, 1397. // any hospital, nursing facility, or other institution, organization, or agency shall be required to disclose to the Secretary or to the appropriate State agency the name of any person who--,

"(1) has a direct or indirect ownership or control interest of 5 percent or more in such institution, organization, or agency or is an officer, director, agent, or managing employee (as defined in subsection (b)) of such institution, organization, or agency, and

"(2) has been convicted (on or after the date of the enactment of this section, or within such period prior to that date as the Secretary shall specify in regulations) of a criminal offense related to the involvement of such person in any of such programs.

The Secretary or the appropriate State agency shall promptly notify the Inspector General in the Department of Health, Education, and Welfare of the receipt from any institution, organization, or agency of any application or request for such participation, certification, or recertification which discloses the name of any such person, and shall notify the Inspector General of the action taken with respect of such application or request.

"(b) For the purposes of this section, the term 'managing employee' means, with respect to an institution, organization, or agency, an individual, including a general manager, business manager, administrator, and director, who exercises operational or managerial control over the institution, organization, or agency, or who directly or indirectly conducts the day-to-day operations of the institution, organization, or agency.".

(b)(1) Section 1866(a) of such Act // 42 USC 1395cc. // is amended by adding at the end thereof the following new paragraph:

"(3) The Secretary may refuse to enter into or renew an agreement under this section with a provider of services if any person who has a direct or indirect ownership or control interest of 5 percent or more in such provider, or who is an officer, director, agent, or managing employee (as defined in section 1126(b)) of such provider, is a person described in section 1126(a).".

(2) Section 1866(b)(2) of such Act is amended by inserting before the period at the end thereof the following: ", or (G) that such provider (at the time the agreement was entered into) did not fully and accurately make any disclosure required of it by section 1126(a)".

(c) Section 1903 of such Act is amended by adding after subsection (m) the following new subsection:

"(n) The State agency may refuse to enter into any contract or agreement with a hospital, nursing home, or other institution, organization, or agency for purposes of participation under the State plan, or otherwise to approve an institution, organization, or agency for such purposes, if any person, who has a direct or indirect ownership or control interest of 5 percent or more in such institution, organization, or agency, or who is an officer, director, agent, or managing employee (as defined in section 1126(b)) of such institution, organization, or agency, is a person described in section 1126(a) (whether or not such institution, organization, or agency has in effect an agreement entered into with the Secretary pursuant to section 1866 or is subject to a suspension of payment order issued under subsection (j) of this section); and, notwithstanding any other provision of this section, the State agency may terminate any such contract, agreement, or approval if it determines that the institution, organization, or agency did not fully and accurately make any disclosure required of it by section 1126(a) at the time such contract or agreement was entered into or such approval was given.".

(d) Section 2002(a) of such Act (as amended by section 3(d) of this Act) is further amended by adding at the end thereof the following new paragraph:

"(16) Any State may refuse to entr into a contrct or other arrangement with a provider of services for purposes of participation under the program established by this title, or otherwise to approve a provider for such purposes, if any person who has a direct or indirect ownership or control interest of 5 percent or more in such provider, or who is an officer, director, agent, or managing employee (as defined in section 1126(b)) of such provider, is a person described in section 1126(a), and the State may terminate any such contract, arrangement, or approval if it determines that the provider did not fully and accurately make any disclosure required of it by section 1126(a) at the time the contract or arrangement was entered into or the approval was given.".

(e) // 42 USC 1320a-5 note. // The amendments made by this section shall apply with respect to contracts, agreements, and arrangements entered into and approvals given pursuant to applications or requests made on and after the first day of the fourth month beginning after the date of the enactment of this Act.

FEDERAL ACCESS TO RECORDS

Sec. 9. Section 1902(a)(27)(B) of the Social Security Act // 42 USC 1396a. // is amended by inserting "or the Secretary" after " State agency" each place it appears.

CLAIMS PROCESSING AND INFORMATION RETRIEVAL SYSTEMS FOR MEDICAID PROGRAMS

Sec. 10. (a) Section 1903(a)(3)(B) of the Social Security Act // 42 USC 1396b. // is amended by striking out "notice to each individual who is furnished services covered by the plan of the specific services so covered" and inserting in lieu thereof "notice to each individual who is furnished services covered by the plan, or to each individual in a sample group of individuals who are furnished such services, of the specific services (other than confidential services) so covered".

(b) // 42 USC 1396b note. // The amendment made by subsection (a) shall apply with respect to calendar quarters beginning after the date of the enactment of this Act.

RESTRICTION ON FEDERAL MEDICAID PAYMENTS; ASSIGNMENT

OF RIGHTS

OF PAYMENT; INCENTIVE PAYMENTS

Sec. 11. (a) Section 1903 of the Social Security Act is amended by adding after subsection (n) (added by section 8(c) of this Act) the following new subsections:

"(o) Notwithstanding the precding provisions of this section, no payment shall be made to a State under the preceding provisions of this section for expenditures for medical assistance provided for an individual under its State plan approved under this title to the extent that a private insurer (as defined by the Secretary by regulation) would have been obligated to provide such assistance but for a provision of its insurance contract which has the effect of limiting or excluding such obligation because the individual is eligible for or is provided medical assistance under the plan.

"(p)(1) When a political subdivision of a State makes, for the State of which it is a political subdivision, or one State markes, for another State, the enforcement and collection of rights of support or payment assigned under section 1912, pursuant to a cooperative arrangement under such section (either within or outside of such State), there shall be paid to such political subdivision or such other State from amounts which would otherwise represent the Federal share of payments for medical assistance provided to the eligible individuals on whose behalf such enforcement and collection was made, an amount equal to 15 percent of any amount collected which is attributable to such rights of support or payment.

"(2) Where more than one jurisdiction is involved in such enforcement or collection, the amount of the incentive payment determined under paragraph (1) shall be allocated among the jurisdictions in a manner to be prescribed by the Secretary.".

(b) Title XIX of the Social Security Act // 42 USC 1396. // is amended by adding at the end thereof the following new section:

" ASSIGNMENT OF RIGHTS OF PAYMENT

" Sec. 1912. // 42 USC 1396k. // (a) For the purpose of assisting in the collection of medical support payments and other payments for medical care owed to recipients of medical assistance under the State plan approved under this title, a State plan for medical assistance may--,

"(1) provide that, as a condition of eligibility for medical assistance under the State plan to an individual who has the legal capacity to execute an assignment for himself, the individual is required--,

"(A) to assign the State any rights, of the individual or of any other person who is eligible for medical assistance under this title and on whose behalf the individual has the legal authority to execute an assignment of such rights, to support (specified as support for the purpose of medical care by a court or administrative order) and to payment for medical care from any third party; and

"(B) to cooperate with the State (i) in establishing the paternity of such person (referred to in subparagraph (A)) if the person is a child born out of wedlock, and (ii) in obtaining support and payments (described in subparagraph (A)) for himself and for such person, unless (in either case) the individual is found to hve good cause for refusing to cooperate as determined by the State agency in accordance with standards prescribed by the Secretary, which standards shall take into consideration the best interests of the individuals involved; and

"(2) provide for entering into cooperative arrangements (including financial arrangements), with any appropriate agency of any State (including, with respect to the enforcement and collection of rights of payment for medical care by or through a parent, with a State's agency established or designated under section 454(3))

// 42 USC 654. //

and with appropriate courts and law enforcement officials, to assist the agency or agencies administering the State plan with respect to (A) the enforcement and collection of rights to support or payment assigned under this section and (B) any other matters of common concern.

"(b) Such part of any amount collected by the State under an assignment made under the provisions of this section shall be retained by the State as is necessary to reimburse it for medical assistance payments made on behalf of an individual with respect to whom such assignment was executed (with appropriate reimbursement of the Federal Government to the extent of its participation in the financing of such medical assistance), and the remainder of such amount collected shall be paid to such individual.".

(c) The amendment made by subsection (a) // (2 USC 1396b note. // shall apply with respect to medical assistance provided, under a State plan approved under title XIX of the Social Security Act, // 42 USC 1396. // on and after January 1, 1978.

STUDY AND REVIEW OF MEDICARE CLAIMS PROCESSING

Sec. 12. // 42 USC 1395ll note. // The Comptroller General of the United States shall conduct a comprehensive study and review of the administrative structure establishd for the processing of claims under title XVIII of the Social Security Act, // 42 USC 1395. // for the purpose of determining whether and to what extent more efficient claims administrationunder such title could be achieved--,

(1) by reducing the number of participating intermediareis and carriers;

(2) by making a single organization responsible for the processing of claims, under both part A and part B of such title, in a particular geographic area;

(3) by providing for the performance of claims processing functions on the basis of a prospective fixed price;

(4) by providing incentive payments for the most efficient organizations; or

(5) by other modifications in such structure and related procedures.

The Comptroller General shall submit to the Congress no later than July 1, 1979, a complete report setting forth the results of such study and review, together with his findings and his recommendations with respect thereto.

ABOLITION OF PROGRAM REVIEW TEAMS UNDER MEDICARE

Sec. 13. (a) Section 1862(d) of the Social Security Act // 42 USC 1395y. // is amended by striking out paragraph (4).

(b)(1) Section 1862(d)(1)(B) of such Act // 42 USC 1395y. // is amended by striking out ", with the concurrence of the appropriate program review team appointed pursuant to paragraph (4),".

(2) Section 1862(d)(1)(C) of such Act is amended to read as follows:

"(C) has furnished services or supplies which are determined by the Secretary, on the basis of reports transmitted to him in accordance with section 1157 of this Act

// 42 USC 1320c-6. //

(or, in the absence of any such report, on the basis of such data as he acquires in the administration of the program under this title), to be substantially in excess of the needs of individuals or to be of a quality which fails to meet professionally recognized standards of health care.".

(3) Clause (F) of section 1866(b)(2) of such Act // 42 USC 1395cc. // is amended to read as follows: "(F) that such provider has furnished services or supplies which are determined by the Secretary to be substantially in excess of the needs of individuals or to be of a quality which fails to meet professionally recognized standards of health care.".

(4) Section 1157 of such Act // 42 USC 1320c-6. // is amended by striking out the last sentence.

(c) The amendments made by this section shall take effect on the date of the enactment of this Act. // 42 USC 1320c-6 note. //

AMENDMENTS RELATING O FISCAL INTERMEDIARIES

Sec. 14. (a) Section 1816 of the Social Security Act // 42 USC 1395h. // is amended--,

(1) by inserting "(and to providers assigned to such agency or organization under subsection (e))" in the first sentence of subsection (a) after "to such providers" the second and third times it appears;

(2) by amending subsection (b) to read as follows:

"(b) The Secretary shall not enter into or renew an agreement with any agency or organizationunder this section unless--,

"(1) he finds--,

"(A) after applying the standards, criteria, and procedures developed under subsection (f), that to do so is consistent with the effective and efficient administration of this part, and

"(B) that such agency or organization is willing and able to assist the providers to which payments are made through it under this part in the application of safeguards against unnecessary utilization of services furnished by them to individuals entitled to hospital insurance benefits under section 226,

// 42 USC 426. //

and the agreement provides for such assistance; and

"(2) such agency or organization agrees--,

"(A) to furnish to the Secretary such of the information acquired by it in carrying out its agreement under this section, and

"(B) to provide the Secretary with access to all such data, information, and claims processing operations,

as the Secretary may find necessary in performing his functions under this part.";

(3) by inserting "after applying the standards, criteria, and procedures developed under subsection (f) and" in subsection (e)(2) before "after reasonable notice";

(4) by redesignating subsections (e), (f), and (g) as subsections (g), (h), and (i), respectively; and

(5) by inserting after subsection (d)

// 42 USC 1395h. // the following new

subsections:

"(e)(1) Notwithstanding subsections (a) and (d), the Secretary, after taking into consideration any preferences of providers of services, may assign or reassign any provider of services to any agency or organization which has entered into an agreement with him under this section, if he determines, after applying the standards, criteria, and procedures developed under subsection (f), that such assignment or reassignment would result in the more effective and efficient administration of this part.

"(2) Notwithstanding subsections (a) and (d), the Secretary may designate a national or regional agency or organization which has entered into an agreement with him under this section to perform functions under the agreement with respect to a class of providers of services in the Nation or region (as the case may be), if he determines, after applying the standards, criteria, and procedures developed under subsection (f), that such designation would result in more effective and efficient administration of this part.

"(3)(A) Before the Secretary makes an assignment or reassignment under paragraph (1) of a provider of services to other than the agency or organization nominated by the provider, he shall furnish (i) the provider and such agency or organization with a full explanation of the reasons for his determination as to the efficiency and effectiveness of the agency or organization to perform the functions required under this part with respect to the provider, and (ii) such agency or organization with opportunity for a hearing, and such determination shall be subject to judicial review in accordance with chapter 7 of title 5, United States Code. // 5 USC 701. //

"(B) Before the Secretary makes a designation under paragraph (2) with respect to a class of providers of services, he shall furnish (i) such providers and the agencies and organizations adversely affected by such designation with a full explanation of the reasons for his determination as to the efficiency and effectiveness of such agencies and organizations to perform the functions required under this part with respect to such providers, and (ii) the agencies and organizations adversely affected by such designation with opportunity for a hearing, and such determination shall be subject to judicial review in accordance with chapter 7 of title 5, United States Code.

"(f) In order to determine whether the Secretary should enter into, renew, or terminate an agreement under this section with an agency or organization, whether the Secretary should assign or reassign a provider of services to an agency or organization, and whether the Secretary should designate an agency or organization to perform services with respect to a class of providers of services, the Secretary shall develop standards, criteria, and procedures to evaluate such agency's or organization's (1) overall performance of claims processing and other related functions required to be performed by such an agency or organization under an agreement entered into under this section, and (2) performance of such functions with respect to specific providers of services, and the Secretary shall establish, by regulation, standards and criteria with respect to the efficient and effective administration of this part. No agency or organization shall be found under such standards and criteria not to be efficient or effective or to be less efficient or effective solely on the ground that the agency or organization serves only providers located in a single State.".

(b) // 42 USC 1395h note. // The Secretary of Health, Education, and Welfare shall develop the standards, criteria, and procedures described in subsection (f) of section 1816 of the Social Security Act (as added by subsection (a)(5)) not later than October 1, 1978.

(c) The amendment made by paragraphs (2) and (3) of subsection (a) // 42 USC 1395h note. // to the extent that they require application of standards, criteria, and procedures developed under section 1816(f) of the Social Security Act shall apply to the entering into, renewal, or termination of agreements on and after October 1, 1978.

(d) Except as provided in subsection (c), the amendment made by subsection (a)(2) shall apply to agreements entered into or renewed on or after the date of enactment of this Act.

DISCLOSURE BY PROVIDERS OF THE HIRING OF CERTAIN FORMER EMPLOYEES OF FISCAL INTERMEDIARIES

Sec. 15. (a) Section 1866(a)(1) of the Social Security Act // 42 USC 1395cc. // is amended--,

(1) by striking out the period at the end of subparagraph (C) and inserting in lieu thereof ", and"; and

(2) by inserting after subparagraph (C) the following new subparagraph:

"(D) to promptly notify the Secretary of its employment of an individual who, at any time during the year preceding such employment, was employed in a managerial, accounting, auditing, or similar capacity (as determined by the Secretary by regulation) by an agency organization which serves as a fiscal intermediary or carrier (for purposes of part A or part B, or both, of this title) with respect to the provider.".

(b) The amendments made by subsection (a) // 42 USC 1395cc note. // shall apply with respect to agreements entered into or renewed on and after the date of enactment of this Act.

PAYMENT FOR DURABLE MEDICAL EQUIPMENT

Sec. 16. (a) Section 1833(f) of the Social Security Act // 42 USC 1395l. // is amended to read as follows:

"(f)(1) In the case of durable medical equipment to be furnished an individual as described in section 1861(s)(6), the Secretary shall determine, on the basis of such medical and other evidence as he finds appropriate (including certification by the attending physician with respect to expected duration of need), whether the expected duration of the medical need for the equipment warrants a presumption that purchase of the equipment would be less costly or more practical than rental. If the Secretary determines that such a presumption does exist, he shall require that the equipment be purchased, on a lease-purchase basis or otherwise, and shall make payment in accordance with the lease-purchase agreement (or in a lump sum amount if the equipment is purchased other than on a lease-purchase basis); except that the Secretary may authorize the rental of the equipment notwithstanding such determination if he determines that the purchase of the equipment would be inconsistent with the purposes of this title or would create an undue financial hardship on the individual who will use it.

"(2) With respect to purchases of used durable medical equipment, the Secretary may waive the 20 percent coinsurance amount applicable under subsection (a) whenever the purchase price of the used equipment is at least 25 percent less than the reasonable charge for comparable new equipment.

"(3) For purposes of paragraph (1), the Secretary may, pursuant to agreements made with suppliers of durable medical equipment, establish reimbursement procedures which he finds to be equitable, economical, and feasible.

"(4) The Secretary shall encourage suppliers of durable medical equipment to make their equipment available to individuals entitled to benefits under this title on a lease-purchase basis whenever possible.".

(b) The amendment made by subsection (a) // 42 USC 1395l note. // shall apply with respect to durable medical equipment purchased or rented on or after October 1, 1977.

FUNDING OF STATE MEDICAID FRAUD CONTROL UNITS

Sec. 17. (a) Section 1903(a) of the Social Security Act // 42 USC 1396b. // is amended by redesignating paragraph (6) as paragraph (7) and by inserting after paragraph (5) the following new paragraph:

"(6) subject to subsection (b)(3), an amount equal to 90 per centum of the sums expended during each quarter beginning on or after October 1, 1977, and ending before October 1, 1980, with respect to costs incurred during such quarter (as found necessary by the Secretary for the elimination of fraud in the provision and administration of medical assistance provided under the State plan) which are attributable to the establishment and operation of (incuding the training of personnel employed by) a State medicaid fraud control unit (described in subsection (q)); plus".

(b) Section 1903(b) of such Act is amended by inserting after paragraph (2) the following new paragraph:

"(3) The amount of funds which the Secretary is otherwise obligated to pay a State during a quarter under subsection (a)(6) may not exceed the higher of--,

"(A) $125,000, or

"(B) one-quarter of 1 per centum of the sums expended by the Federal, State, and local governments during the previous quarter in carrying out the State's plan under this title.".

(c) Section 1903 of such Act is further amended by inserting after subsection (p) (added by section 11(a) of this Act) the following new subsection:

"(q) For the purposes of this section, the term ' State medicaid fraud control unit' means a single identifiable entity of the State government which the Secretary certifies (and annually recertifies) as meeting the following requirements:

"(1) The entity (A) is a unit of the office of the State Attorney general or of another department of State government which possesses statewide authority to prosecute individuals for criminal violations, (B) is in a State the constitution of which does not provide for the criminal prosecution of individuals by a statewide authority and has formal procedures, approved by the Secretary, that (i) assure its referral of suspected criminal violations relating to the program under this title to the appropriate authority or authorities in the State for prosecution and (ii) assure its assistance of, and coordination with, such authority or authorities in such prosecutions, or (C) has a formal working relationship with the office of the State Attorney General and has formal procedures (including procedures for its referral of suspected criminal violations to such office) which are approved by the Secretary and which provide effective coordination of activities between the entity and such office with respect to the detection, investigation, and prosecution of suspected criminal violations relating to the program under this title.

"(2) The entity is separate and distinct from the single State agency that administers or supervises the administration of the State plan under this title.

"(3) The entity's function is conducting a statewide program for the investigation and prosecution of violations of all applicable state laws regarding any and all aspects of fraud in connection with any aspect of the provision of medical assistance and the activities of providers of such assistance under the State plan under this title.

"(4) The entity has procedures for reviewing complaints of the abuse and neglect of patients of health care facilities which receive payments under the State plan under this title, and, where appropriate, for acting uponsuch complaints under the criminal laws of the State or for referring them to other State agencies for action

"(5) The entity provides for the collection, or referral for collection to a single State agency, of overpayments that are made under the State plan to health care facilities and that are discovered by the entity in carrying out its activities.

"(6) The entity employs such auditors, attorneys, investigators, and other necessary personnel and is organized in such a manner as is necessary to promote the effective and efficient conduct of the entity's activities.

"(7) The entity submits to the Secretary an application and annual reports containing such information as the Secretary determines, by regulation, to be necessary to determine whether the entity meets the other requirements of this subsection.".

(d) Section 402(a)(1) of the Social Security Amendments of 1967 (Public Law 90 - 248), as amended by section 222 of the Social Security Amendments of 1972(Public Law 92 - 603), // 42 USC 1395b-1. // is amended--,

(1) by striking out "and" at the end of subparagraph (H);

(2) by striking out the period at the end of subparagraph (I) and inserting inlieu thereof "; and"; and

(3) by adding after subparagraph (I) the following new subparagraph:

"(J) to develop or demonstrate improved methods for the investigation and prosecution of fraud in the provision of care or services under the health programs established by the Social Security Act.".

// 42 USC 1305. //

(e)(1) The amendment made by subsection (a) // 42 USC 1396b note. // shall apply with respect to calendar quarters beginning after September 30, 1977.

(2) The Secretary of Health, Ducation, and Welfare shall establish such regulations, not later than ninety days after the date of enactment of this Act, as are necessary to carry out the amendments made by this section.

REPORT ON HOME HEALTH AND OTHER IN- HOME SERVICES

Sec. 18. // 42 USC 1395ll note. // (a) Not later than one year after the date of enactment of this Act, the Secretary of Health, Education, and Welfare shall submit to the appropriate committees of the Congress a report analyzing, evaluating, and making recommendations with respect to, all aspects (including the availability, administration, provision, reimbursement procedures, and cost) of the delivery of home health and other in-home services authorized to be provided under titles XVIII, XIX, and XX of the Social Security Act. // 42 USC 1395, 1396, 1397. //

(b) Such report shall include an evaluation of the coordination of such services provided under the different titles, and shall also include recommendations for changes in regulations and legislation with respect to--,

(1) the scope and definition of such services provided under such titles;

(2) the requirements for an individual to be eligible to receive such services under such titles;

(3) the standards for certification of providers of such services under such titles and (as appropriate) the uniformity of such standards for the programs under the different titles;

(4) procedures for control of utilization and assurance of quality of such services under such titles, including (as appropriate) the licensing and accreditation of agencies providing such services, a certificate of need program with respect to the offering of such services, and the development and use of norms and standards for review of the utilization and quality of such services;

(5) methods of reimbursement for such services, including (A) methods of comparing costs incurred by different providers of such services in order to determine the reasonableness of such costs and (B) methods which provide for more uniform reimbursement procedures under titles XVIII and XIX of the Social Security Act; and

(6) the prevention of fraud and abuse in the delivery of such services under such titles,

the reasons for such recommendations, an analysis of the impact of implementing such recommendations on the cost of such services and the demand for such services, and the methods of financing any recommended increased provision of such services under such titles.

(c) In developing the report the Secretary shall consult with professional organizations, experts, and individual health professionals in the field of home health and other in-home services and with providers, private insurers, and consumers of such services.

ESTABLISHMENT OF UNIFORM REPORTING SYSTEMS FOR DIFFERENT TYPES OF HEALTH SERVICES FACILITIES AND ORGANIZATIONS; MAKING OF REPORTS UNDER MEDICARE AND MEDICAID PROGRAMS IN ACCORDANCE WITH SUCH SYSTEMS

Sec. 19. (a) Part A of title XI of this Social Security Act is amended by inserting after section 1120 the following new section:

" UNIFORM REPORTING SYSTEMS FOR HEALTH SERVICES FACILITIES AND ORGANIZATIONS

" Sec. 1121. // 42 USC 1320a. // (a) For the purposes of reporting the cost of services provided by, of planning, and of measuring and comparing the efficiency of and effective use of services in, hospitals, skilled nursing facilities, intermediate care facilities, home health agencies, health maintenance organizations, and other types of health services facilities and organizations to which payment may be made under this Act, the Secretary shall establish by regulation, for each such type of health services facility or organization, a uniform system for the reporting by a facility or organization of that type of the following information:

"(1) The aggregate cost of operation and the aggregate volume of services.

"(2) The costs and volume of services for various functional accounts and subaccounts.

"(3) Rates, by category of patient and class of purchaser.

"(4) Capital assets, as defined by the Secretary, including (as appropriate) capital funds, debt service, lease agreements used in lieu of capital funds, and the value of land, facilities, and equipment.

"(5) Discharge and bill data.

The uniform reporting system for a type of health services facility or organization shall provide for appropriate variation in the application of the system to different classes of facilities or organizations within that type and shall be established, to the extent practicable, consistent with the cooperative system for producing comparable and uniform health information and statistics described in section 306(e) (1) of the Public Health Service Act. // 42 USC 242k. // In reporting under such a system, hospitals shall employ such chart of accounts, definitions, principles, and statistics as the Secretary may prescribe in order to reach a uniform reconciliation of financial and statistical data for specified uniform reports to be provided to the Secretary.

"(b) The Secretary shall--,

"(1) monitor the operation of the systems established under subsection (a);

"(2) assist with and support demonstrations and evaluations of the effectiveness and cost of the operation of such systems and encourage State adoption of such systems; and

"(3) periodically revise such systems to improve their effectiveness and diminish their cost.

"(c) The Secretary shall provide information obtained through use of the uniform reporting systems described in subsection (a) in a useful manner and format to appropriate agencies and organizations, including health systems agencies (designated under section 1515 of the Public Health Service Act) // 42 USC 300l-4. // and State health planning and development agencies (designated under section 1521 of such Act), // 42 USC 300m. // as may be necessary to carry out such agencies' and organizations' functions.".

(b)(1) Section 1861(v)(1) of the Social Security Act // 42 USC 1395x. // is amended by adding after subparagraph (E) the following new subparagraph:

(F) Such regulations shall require each provider of services (other than a fund) to make reports to the Secretary of information described in section 1121(a) in accordance with the uniform reporting system (established under such section) for that type of provider.".

(2) Section 1902(a) of such Act (as amended by sections 2(b), 3(c), and 7(b) of this Act) is amended--,

(A) by striking out "and" at the end of paragraph (38);

(B) by striking out and the period at the end of paragraph (39) and inserting in lieu thereof "; and"; and

(C) by inserting after paragraph (39) the following new paragraph:

"(40) require each health services facility or organization which receives payments under the plan and of a type for which a uniform reporting system has been established under section 1121( a) to make reports to the Secretary of information described in such section in accordance with the uniform reporting system (established under such section) for that type of facility or organization.".

(c)(1) The Secretary of Health, Education, and Welfare shall establish the systems described in section 1121(a) // 42 USC 1320a note. // of the Social Security Act (added by subsection (a) of this section) only after consultation with interested parties and --,

(A) for hospitals, skilled nursing facilities, and intermediate care facilities, not later than the end of the one-year period, and

(B) for other types of health services facilities and organizations, not later than the end of the two-year period, beginning on the date of enactment of this Act.

(2)(A) The amendments made by subsection (b) // 42 USC 1396a note. // shall apply with respect to operations of a hospital, skilled nursing facility, or intermediate care facility, on and after the first day of its first fiscal year which begins after the end of the six-month period beginning on the date a uniform reporting system is established (under section 1121(a) of the Social Security Act) for that type of health services facility.

(B) The amendments made by subsection (b) shall apply, with respect to the operation of a health services facility or organization which is neither a hospital, a skilled nursing facility, nor an intermediate care facility, on and after the first day of its first fiscal year which begins after such date as the Secretary of Health, Education, and Welfare determines to be appropriate for the implementation of the reporting requirement for that type of facility or organization.

(C) Except as provided in subparagraphs (A) and (B), the amendments made by subsection (b)(2) shall apply, with respect to State plans approved under title XIX of the Social Security Act, // 42 USC 1396. // on and after October 1, 1977.

DELAY IN, AND WAIVER OF, IMPOSITION OF REDUCTION OF FEDERAL MEDICAL ASSISTANCE PERCENTAGE DUE TO A STATE'S FAILURE TO HAVE AN EFFECTIVE MEDICAID UTILIZATION CONTROL PROGRAM

Sec. 20. (a) Section 1903(g) of the Social Security Act // 42 USC 1396b. // is amended--,

(1) by striking out " With respect to" in the first sentence of paragraph (1) and inserting in lieu thereof " Subject to paragraph (3), with respect to";

(2) by striking out "by 33 1/3 per centum thereof" in paragraph (1) and inserting in lieu thereof "by a per centum thereof (determined under paragraph (5))";

(3) by inserting "timely" in paragraph (2) before "sample onsite surveys"; and

(4) by adding after paragraph (2) the following new paragraphs:

"(3)(A) No reduction in the Federal medical assistance percentage of a State otherwise required to be imposed under this subsection shall take effect--,

"(i) if such reduction is due to the State's unsatisfactory or invalid showing made with respect to a calendar quarter beginning before January 1, 1977;

"(ii) before January 1, 1978;

"(iii) unless a notice of such reduction has been provided to the State at least 30 days before the date such reduction takes effect; or

"(iv) due to the State's unsatisfactory or invalid showing made with respect to a calendar quarter beginning after September 30, 1977, unless notice of such reduction has been provided to the State no later than the first day of the fourth calendar quarter following the calendar quarter with respect to which such showing was made.

"(B) The Secretary shall waive application of any reduction in the Federal medical assistance percentage of a State otherwise required to be imposed under paragraph (1) because a showing by the State, made under such paragraph with respect to a calendar quarter ending after January 1, 1977, and before October 1, 1977, is determined to be either unsatisfactory under such paragraph or invalid under paragraph (2), if the Secretary determines that the State's showing made under paragraph (1) with respect to the calendar quarter ending on December 31, 1977, is satisfactory under such paragraph and is valid under paragraph (2).

"(4)(A) The Secretary may not find the showing of a State, with respect to a calendar quarter under paragraph (1), to be satisfactory if the showing is submitted to the Secretary later than the 30th day after the last day of the calendar quarter, unless the State demonstrates to the satisfaction of the Secretary good cause for not meeting such deadline.

"(B) The Secretary shall find a showing of a State, with respect to a calendar quarter under paragraph (1), to be satisfactory under such paragraph with respect to the requirement that the State conduct annual onsite inspections in mental hospitals, skilled nursing facilities, and intermediate care facilities under paragraph (26) and (31) of section 1902(a), // 42 USC 1396a. // if the showing demonstrates that the State has conducted such an onsite inspection during the 12-month period ending on the last date of the calendar quarter--,

"(i) in each of not less than 98 per centum of the number of such hospitals and facilities requiring such inspection, and

"(ii) in every such hospital or facility which has 200 or more beds,

and that, with respect to such hospitals and facilities not inspected within such period, the State has exercised good faith and due deligence in attempting to conduct such inspection, or if the State demonstrates to the satisfaction of the Secretary that it would have made such a showing but for failings of a technical nature only.

"(5) In the case of a State's unsatisfactory or invalid showing made with respect to a type of facility or institutional services in a calendar quarter, the per centum amount of the reduction of the State's Federal medical assistance percentage for that type of services under paragraph (1) is equal to 33 1/3 per centum multiplied by a fraction, the denominator of which is equal to the total number of patients receiving that type of serivces in that quarter under that State plan in facilities or institutions for which a showing was required to be made under this subsection, and the numerator of which is equal to the number of such patients receiving such type of services in that quarter in those facilities or institutions for which a satisfactory and valid showing was not made for that calendar quarter.

"(6) The Secretary shall submit to Congress, not later than sixty days after the end of such calendar quarter, a report on--,

"(A) his determination as to whether or not each showing, made under paragraph (1) by a State with respect to the calendar quarter, has been found to be satisfactory under such paragraph;

"(B) his review (through onsite surveys and otherwise) under paragraph (2) of the validity of showings previously submitted by a State; and

"(C) any reductionin the Federal medical assistance percentage he has imposed on a State because of its submittal under paragraph (1) of an unsatisfactory or invalid showing.".

(b) Section 1902(a)(26) of the Social Security Act // 42 USC 1396a. // is amended by inserting after "social service personnel" the following:", or, in the case of skilled nursing facilities, composed of physicians or registered nurses and other appropriate health and social service personnel".

(c)(1) Except as provided in paragraph (2), // 42 USC 1396b note. // the amendments made by this section shall be effective on October 1, 1977, and the Secretary of Health, Education, and Welfare shall promptly adjust payments made to States under section 1903 of the Social Security Act to reflect the changes made by such amendments.

(2) The amount of any reduction in the Federal medical assistance percentage of a State, otherwise required to be imposed under section 1903(g)(1) of the Social Security Act because of an unsatisfactory or invalid showing made by the State with respect to a calendar quarter beginning on or after January 1, 1977, shall be determined under such section as amended by this section. Subparagraph (B) of paragraph (4) of section 1905(g) of such Act, as added by this section, shall apply to any showing made by a State under such section with respect to a calendar quarter beginning on or after January 1, 1977.

PROTECTION OF PATIENT FUNDS

Sec. 21. (a) Section 1861(j) of the Social Security Act // 42 USC 1395x. // is amended by striking out "and" at the end of paragraph (13) and inserting immediately after such paragraph (13) the following new paragraph:

"(14) established and maintains a system that (A) assures a full and complete accounting of its patients' personal funds, and (B) includes the use of such separate account for such funds as will preclude any commingling of such funds with facility funds or with the funds of any person other than another such patient; and".

(b) // 42 USC 1395x note. // The Secretary of Health, Education, and Welfare shall, by regulation, define those costs which may be charged to the personal funds of patients in skilled nursing facilities who are individuals receiving benefits under the provisions of title XVIII, or under a State plan approved under the provisions of title XIX, of the Social Security Act, // 42 USC 1395, 1396. // and those costs which are to be included in the reasonable cost or reasonable charge for extended care services as determined under the provisions of title XVIII, or for skilled nursing and intermediate care facility services as determined under the provisions of title XIX, of such Act.

(c)(1) The amendments made by subsection (a) shall be effective on the first day of the first calendar quarter which begins more than six months after the date of enactment of this Act.

(2) The Secretary of Health, Education, and Welfare shall issue the regulations required under subsection (b) within ninety days after the date of enactment of this Act.

PAYMENT FOR INSTITUTIONAL CARE BEYOND DATE DETERMINED MEDICALLY NECESSARY

Sec. 22. (a) Section 1158 of the Social Security Act // 42 USC 1320c-7. // is amended--,

(1) by inserting "and subsection (d)" in subsection (a) after "section 1159"; and

(2) by adding after subsection (c) (as added by section 5(d) (1 of this Act) the following new subsection:

"(d) In any case in which a Professional Standards Review Organization disapproves (under subsection (a)) of inpatient hospital services or posthospital extended care services, payment may be made for such services furnished before the second day after the day on which the provider received notice of such disapproval, or, if such organization detrmines that more time is required in order to arrange postdischarge care, payment may be made for such services furnished before the fourth day after the day on which the provider received notice of such disapproval.".

(b) The amendments made by subsection (a) shall be effective on the date of enactment of this Act. // 42 USC 1320c-7 note. //

PAYMENT UNDER THE MEDICARE PROGRAM FOR CERTAIN HOSPITAL SERVICES PROVIDED IN VETERANS' ADMINISTRATION HOSPITALS

Sec. 23. (a) Section 1814(c) of the Social Security Act // 42 USC 1395f. // is amended by inserting "or subsection (j)" after "subsection (d)".

(b) Section 1814 of such Act is further amended by adding at the end thereof the following new subsection:

" Payment for Certain Hospital Services Provided in Veterans' Administration Hospitals

"(j)(1) Payments shall also be made to any hospital operated by the Veterans' Administration for inpatient hospital services furnished in a calendar year by the hospital, or under arrangements (as defined in section 1861(w)) with it, to an individual entitled to hospital benefits under section 226 // 42 USC 426. // even though the hospital is a Federal provider of services if (A) the individual was not entitled to have the services furnished to him free of charge by the hospital, (B) the individual was admitted to the hospital in the reasonable belief on the part of the admitting authorities that the individual was a person who was entitled to have the services furnished to him free of charge, (C) the authorities of the hospital, in admitting the individual, and the individual, acted in good faith, and (D) the services were furnished during a period ending with the close of the day on which the authorities operating the hospital first became aware of the fact that the individual was not entitled to have the services furnished to him by the hospital free of charge, or (if later) ending with the first day on which it was medically feasible to remove the individual from the hospital by discharging him therefrom or transferring him to a hospital which has in effect an agreement under this title.

"(2) Payment for services described in paragraph (1) shall be in an amount equal to the charge imposed by the Veterans' Administration for such services, or (if less) the reasonable costs for such services (as estimated by the Secretary). Any such payment shall be made to the entity to which payment for the services involved would have been payable, if payment for such services had been made by the individual receiving the services involved (or by another private person acting on behalf of such individual).".

(c) The amendments made by this section // 42 USC 1395f note. // shall apply to inpatient hospital services furnished on and after July 1, 1974.

LEGISLATIVE HISTORY

HOUSE REPORTS: No. 95 - 393, Pt. I (Comm. on Ways and Means), and Pt. II (Comm. on Interstate and Foreign Commerce) and No. 95 - 673 (Comm. of Conference).

SENATE REPORT No. 95 - 453 accompanying S. 143 (Comm. on Finance).

CONGRESSIONAL RECORD, Vol. 123 (1977):

Sept. 22, 23, considered and passed House.

Sept. 30, considered and passed Senate, amended, in lieu of S. 143

Oct. 13, House and Senate agreed to conference report.

WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 13, No. 44:

Oct. 25, Presidential statement.

PUBLIC LAW 95-141, 91 STAT. 1174

95th CONGRESS, S. 2169 OCTOBER 23, 1977 AN ACT To name a certain Federal building in Washington, District of Columbia, the " Hubert H. Humphrey Building".

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the South Portal Federal Office Building of the United States Department of Health, Education, and Welfare, located at 200 Independence Avenue Southwest, in Washington, District of Columbia, is hereby designated as the " Hubert H. Humphrey Building". Any reference in any law, regulation, document, record, map, or other paper of the United States to such building shall be considered to be a reference to the Hubert H. Humphrey Building.

LEGISLATIVE HISTORY:

SENATE REPORT No. 95 - 485 (Comm. on Environment and Public Works).

CONGRESSIONAL RECORD, Vol. 123 (1977):

Oct. 12, considered and passed Senate.

Oct. 13, considered and passed House.

PUBLIC LAW 95-140, 91 STAT. 1172, DEFENSE DEPARTMENT-- DEPUTY AND UNDER SECRETARIES OF DEFENSE, POSITION CHANGES

95th CONGRESS, S. 1372 OCTOBER 21, 1977 AN ACT To amend title 10, United States Code, to abolish one of the two positions of Deputy Secretary of Defense and establish the position of Under Secretary of Defense for Policy and to change the title of the Director of Defense Research and Engineering to the Under Secretary of Defense for Research and Engineering.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That (a) section 134 of title 10, United States Code, is amended--,

(1) in subsection (a), by striking out " There are two Deputy Secretaries" in the first sentence and inserting in lieu thereof " There is a Deputy Secretary", and by striking out "a" in the second sentence immediately before " Deputy Secretary";

(2) in subsection (b), by striking out " Deputy Secretaries" in the first sentence and inserting in lieu thereof " Deputy Secretary" and by striking out " Deputy Secretaries, in the order of precedence, designated by the President" in the second sentence and inserting in lieu thereof " Deputy Secretary";

(3) in subsection (c), by striking out " The Deputy Secretaries take" and inserting in lieu thereof " The Deputy Secretary takes"; and

(4) in the section heading, by striking out " Deputy Secretaries" and inserting in lieu thereof " Deputy Secretary".

(b) The item relating to section 134 in the analysis of chapter 4 of title 10, United States Code, is amended by striking out " Deputy Secretaries" and inserting in lieu thereof " Deputy Secretary".

Sec. 2. (a) (1) Subsection (a) of section 135 of title 10, united States Code, is amended to read as follows:

"(a) There are two Under Secretaries of Defense, one of whom shall be the Under Secretary of Defense for Policy and one of whom shall be the Under Secretary of Defense for Research and Engineering. The Under Secretaries of Defense shall be appointed from civilian life by the President, by and with the advice and consent of the Senate. A person may not be appointed Under Secretary of Defense for Policy within ten years after relief from active duty as a commissioned officer of a regular component of an armed force.".

(2) Subsection (b) of such section is amended by striking out " The Director performs" and inserting in lieu thereof " The Under Secretary of Defense for Policy shall perform such duties and exercise such powers as the Secretary of Defense may prescribe. The Under Secretary of Defense for Research and Engineering shall perform".

(3) Subsection (c) of such section is amended by striking out " Director" and inserting in lieu thereof " Under Secretary of Defense for Policy", by striking out " Deputy Secretaries" and inserting in lieu thereof " Deputy Secretary", and by adding at the end thereof the following new sentence: " The Under Secretary of Defense for Research and Engineering takes precedence in the Department of Defense immediately after the Under Secretary of Defense for Policy.".

(4) The section heading for such section is amended by striking out " Director of Defense Research and Engineering" and inserting in lieu thereof " Under Secretaries of Defense".

(b) The item relating to section 135 in the analysis of chapter 4 of title 10, United States Code, is amended by striking out " Director of Defense Research and Engineering" and inserting in lieu thereof " Under Secretaries of Defense".

Sec. 3. (a) Section 136 (e) of title 10, United States Code, is amended to read as follows:

"(e) The Assistant Secretaries take precedence in the Department of Defense after the Secretary of Defense, the Deputy Secretary of Defense, the Secretaries of the military departments, and the Under Secretaries of Defense.".

(b)(1) Clause (2) of section 171(a) of title 10, United States Code, is amended by striking out "a" and inserting in lieu thereof "the".

(2) Clause (6) of such section is amended to read as follows:

"(6) the Under Secretaries of Defense;".

(c) Section 303 (c) of the Internal Security Act of 1950 (50 U.S.C. 833 (c)) is amended by striking out " Deputy Secretaries" and inserting in lieu thereof " Deputy Secretary".

(d) (1) Section 5313 (1) of title 5, United States Code, is amended to read as follows:

"(1) Deputy Secretary of Defense.".

(2) Section 5314 (32) of such title is amended to read as follows:

"(32) Under Secretaries of Defense (2).".

LEGISLATIVE HISTORY:

HOUSE REPORT No. 95 - 519 (Comm. on Armed Services).

SENATE REPORT No. 95 - 234 (Comm. on Armed Services).

CONGRESSIONAL RECORD, Vol. 123 (1977):

June 9, considered and passed Senate.

Sept. 19, considered and passed House, amended.

Oct. 6, Senate concurred in House amendments.

PUBLIC LAW 95-139, 91 STAT. 1171

95th CONGRESS, S. 2089 OCTOBER 19, 1977 AN ACT To establish within the Department of Justice the position of Associate Attorney General.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That (a) chapter 31 of title 28, United States Code, is amended by adding immediately after section 504 the following new section:

Sec. 504a. Associate Attorney General

" The President may appoint, by and with the advice and consent of the Senate, an Associate Attorney General.".

(b) The section analysis at the beginning of chapter 31 of title 28, United States Code, is amended by adding immediately after

"504. Deputy Attorney General."

the following new item:

"504a. Associate Attorney General.".

Sec. 2. Section 508 (b) of chapter 31 of title 28, United States Code, is revised to read:

"(b) When by reason of absence, disability, or vacancy in office, neither the Attorney General nor the Deputy Attorney General is available to exercise the duties of the office of Attorney General, the Associate Attorney General shall act as Attorney General. The Attorney General may designate the Solicitor General and the Assistant Attorneys General, in further order of succession, to act as Attorney General.".

Sec. 3. Section 5314 of chapter 53 of title 5, United States Code, is amended by adding the following item at the end thereof:

"(66) Associate Attorney General.".

LEGISLATIVE HISTORY:

SENATE REPORT No. 95 - 429 (Comm. on the Judiciary).

CONGRESSIONAL RECORD, Vol. 123 (1977):

Sept. 20, considered and passed Senate.

Oct. 18, considered and passed House.

PUBLIC LAW 95-138, 91 STAT. 1170

95th CONGRESS, H.R. 9354 OCTOBER 18, 1977 AN ACT To amend the Act of August 25, 1958, with respect to staff allowances for former Presidents.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That subsection (b) of the first section of the Act of August 25, 1958, entitled " An Act to provide retirement, clerical assistance, and free mailing privileges to former Presidents of the United States, and for other purposes", as amended (3 U.S.C. 102 note) is amended by inserting after "$96,000 per annum" the following:", except that for the first 30-month period during which a former President is entitled to staff assistance under this subsection, such rates of compensation in the aggregate shall not exceed $150,000 per annum".

Sec. 2. // 3 USC 102 note. // The amendment made by the first section of this Act shall take effect October 1, 1977.

LEGISLATIVE HISTORY:

CONGRESSIONAL RECORD, Vol. 123 (1977):

Sept. 30, considered and passed House.

Oct. 4, considered and passed Senate.

PUBLIC LAW 95-137, 91 STAT. 1169

95th CONGRESS, H.R. 5742 OCTOBER 18, 1977 AN ACT To amend the Controlled Substances Act to extend for three fiscal years the authorization of appropriations under that Act for the expenses of the Department of Justice in carrying out that Act.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That (a) section 709 (a) of the Controlled Substances Act (21 U.S.C. 904 (a)) is amended--,

(1) by striking out "and" after "1976,",

(2) by striking out " June 30, 1977" and inserting in lieu thereof " September 30, 1977, $188,000,000 for the fiscal year ending September 30, 1978, and $215,000,000 for the fiscal year ending September 30, 1979,", and

(3) by striking out "(other than its expenses incurred in connection with carrying out section 103 (a))".

(b) Section 103 of such Act (21 U.S.C. 803) is repealed.

LEGISLATIVE HISTORY:

HOUSE REPORT No. 95 - 298 (Comm. on Interstate and Foreign Commerce).

SENATE REPORT No. 95 - 444 (Comm. on the Judiciary).

CONGRESSIONAL RECORD, Vol. 123 (1977):

May 17, considered and passed House.

Sept. 29, considered and passed Senate, amended.

Oct. 4, House concurred in Senate amendment.

PUBLIC LAW 95-136, 91 STAT. 1167

95th CONGRESS, S. 1522 October 18, 1977 AN ACT To authorize appropriations for fiscal year 1978 to carry out the Marine Mammal Protection Act of 1972.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 110 (c) of the Marine Mammal Protection Act of 1972 (16 U.S.C. 1380 (c)) is amended to read as follows:

"(c) There are authorized to be appropriated, for the purposes of carrying out this section, not to exceed the following sums for the following fiscal years:

"(1) $2,500,000 for each of the fiscal years ending June 30, 1973, June 30, 1974, June 30, 1975, September 30, 1976, and September 30, 1977, of which one-third of the sum appropriated for any such fiscal year shall be available to the Secretary of the Interior and two-thirds of any such sum shall be available to the Secretary of Commerce.

"(2) $1,200,000, all of which shall be available to the Secretary of the Interior, for the fiscal year ending September 30, 1978.

"(3) $200,000, all of which shall be available to the Secretary of Commerce, for the fiscal year ending September 30, 1978.".

Sec. 2. Section 114 of the Marine Mammal Protection Act of 1972 (16 U.S.C. 1384) is amended--,

(1) by amending subsection (a) by inserting", and not to exceed $11,500,000 for the fiscal year ending September 30, 1978," immediately after "fiscal years"; and

(2) by amending subsection (b)--,

(A) by striking out "and" immediately after " June 30, 1973,", and

(B) by inserting", and not to exceed $850,000 for the fiscal year ending September 30, 1978" immediately after "thereafter".

Sec. 3. Section 207 of the Marine Mammal Protection Act of 1972 (16 U.S.C. 1407) is amended to read as follows:

" AUTHORIZATIONS OF APPROPRIATIONS

" Sec. 207. There are authorized to be appropriated for the fiscal year in which this title is enacted and for the next five fiscal years thereafter such sums as may be necessary to carry out this title, but the sums appropriated for any fiscal year other than the fiscal year ending September 30, 1978, shall not exceed $1,000,000, and the sum appropriated for the fiscal year ending September 30, 1978, shall not exceed $2,000,000.".

Sec. 4. Section 102 of the Marine Mammal Protection Act of 1972 (16 U.S.C. 1372) is amended by adding at the end thereof the following new subsection:

"(f) It is unlawful for any person or vessel or other conveyance to take any species of whale incident to commercial whaling in waters subject to the jurisdiction of the United States.".

Sec. 5. // 33 USC 476. // (a) The Congress finds that--,

(1) the navigable waters of Puget Sound in the State of Washington, and the natural resources therein, are a fragile and important national asset;

(2) Puget Sound and the shore area immediately adjacent thereto is threatened by increased domestic and international traffic of tankers carrying crude oil in bulk which increases the possibility of vessel collisions and oil spills; and

(3) it is necessary to restrict such tanker traffic in Puget Sound in order to protect the navigable waters thereof, the natural resources therein, and the shore area immediately adjacent thereto, from environmental harm.

(b) Notwithstanding any other provision of law, on and after the date of enactment of this section, no officer, employee, or other official of the Federal Government shall, or shall have authority to, issue, renew, grant, or otherwise approve any permit, license, or other authority for constructing, renovating, modifying, or otherwise altering a terminal, dock, or other facility in, on, or immediately adjacent to, or affecting the navigable waters of Puget Sound, or any other navigable waters in the State of Washington east of Port Angeles, which will or may result in any increase in the volume of crude oil capable of being handled at any such facility (measured as of the date of enactment of this section), other than oil to be refined for consumption in the State of Washington.

LEGISLATIVE HISTORY:

HOUSE REPORT No. 95 - 336 accompanying H.R. 4740 (Comm. on Merchant Marine and Fisheries).

SENATE REPORT No. 95 - 177 (Comm. on Commerce, Science, and Transportation).

CONGRESSIONAL RECORD, Vol. 123 (1977):

July 18, considered and passed Senate.

Sept. 12, considered and passed House, amended, in lieu of H. R. 4740.

Oct. 4, Senate concurred in House amendment with amendments.

Oct. 4, 5, House concurred in Senate amendments.

PUBLIC LAW 95-135, 91 STAT. 1166

95th CONGRESS, S.J. RES. 89 OCTOBER 15, 1977 Joint Resolution To amend an Act entitled " To authorize certain appropriations for the territories of the United States, to amend certain Acts relating thereto, and for other purposes" (enrolled bill H.R. 6550, Ninety-fifth Congress, first session).

Resolved by the Senate and House of Representatives of the United States of America in Congress assembled, That section 403 of an Act entitled " To authorize certain appropriations for the territories of the United States, to amend certain Acts relating thereto, and for other purposes" (enrolled bill H. r. 6550, Ninety-fifth Congress, first session), be amended to read:

" Sec. 403. Effective on the date when section 502 of the Covenant to Establish a Commonwealth of the Northern Mariana Islands in Political Union With the United States of America, approved by joint resolution approved on March 24, 1976 (90 Stat. 263) goes into force those laws which are referred to in section 502 (a) (1) of said Covenant, except for any laws administered by the Social Security Administration, except for medicaid which is now administered by the Health Care Financing Administration, and except the Micronesian Claims Act of 1971 (85 Stat. 96) shall be applicable to the territories of Guam and the Virgin Islands on the same terms and conditions as such laws are applied to the Northern Mariana Islands.".

Sec. 2. This amendatory joint resolution shall be effective as of the approval of said Act entitled " To authorize certain appropriations for the territories of the United States, to amend certain Acts relating thereto, and for other purposes" (enrolled bill H. r. 6550, Ninety-fifth Congress, first session).

LEGISLATIVE HISTORY:

CONGRESSIONAL RECORD, Vol. 123 (1977):

Oct. 12, considered and passed Senate.

Oct. 13, considered and passed House.

PUBLIC LAW 95-134, 91 STAT. 1159

95th CONGRESS, H.R. 6550 OCTOBER 15, 1977 AN ACT TO authorize certain appropriations for the territories of the United States, to amend certain Acts relating thereto, 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

Sec. 101. (a) Section 2 of the Act of June 30, 1954 (68 Stat. 330), as // 48 USC 1681 // as amended, is further amended by changing "and such amounts as were authorized but not appropriated for fiscal year 1975," to read "and such amounts as were authorized but not appropriated for fiscal years 1975, 1976, and 1977; for fiscal year 1978, $90,000,000; for fiscal year 1979, $122,700,000; for fiscal year 1980, $112,000,000;".

(b) Section 2 of the Act of June 30, 1954 (68 Stat. 330), as amended, is further amended by (1) deleting "but not to exceed $10,000,000," and (2) deleting all of the language beginning with the words "which amounts for each fiscal year" up to and including the words "calendar year 1974,".

Sec. 102. Until the provisions of the covenant to establish a Commonwealth for the Northern Mariana Islands (90 Stat. 263) // USC 1681 // have been met and approved as required in section 1003 (b) thereof, there is hereby authorized to be appropriated $13,515,000 for the government of the Northern Mariana Islands. When such conditions are met, the appropriations authorized in article VII, section 704, of said convenant shall become effective.

Sec. 103. For the rehabilitation and resettlement of Enewetak Atoll in the Trust Territory of the Pacific Islands there is hereby authorized to be appropriated $12,400,000 (July 1976 prices) plus or minus such amounts, if any, as may be justified by reason of ordinary fluctuations in construction costs as indicated by engineering cost indexes applicable to the types of construction involved.

Sec. 104. (a) In addition to appropriations authorized to compensate inhabitants of Rongelap Atoll and Utirik Atoll in the Trust Territory of the Pacific Islands for radiation exposure sustained by them as a result of a thermonuclear detonation at Bikini Atoll in the Marshall Islands on March 1, 1954, pursuant to the Act of August 22, 1964 (78 Stat. 598), effective October 1, 1977, there are authorized to be appropriated such amounts as may be necessary to carry out the provisions of this section and the Secretary of the Interior (hereafter in this section referred to as the " Secretary") is authorized and directed to make the payments as hereafter provided in this paragraph to individuals, or to their heirs or legatees, as the case may be, who were on March 1, 1954, residents on Rongelap Atoll or Utirik Atoll in the Marshall Islands:

(1) The Secretary shall pay $25,000 to each such individual from whom the thyroid gland or a neurofibroma in the neck was surgically removed, or who has developed hypothyroidism, or who develops a radiation-related malignancy, such as leukemia.

(2) The Secretary shall pay $1,000 to each individual who, on such date, was a resident on Utirik Atoll.

(3) Where circumstances warrant, as he shall determine, the Secretary shall pay an amount not in excess of $25,000 as he determines to be an appropriate compassionate compensation to each such individual who has suffered any physical injury or harm from a radiation-related cause but who is not an individual described in paragraph (1).

(4) In addition to the payments provided in paragraphs (1), (2), and (3) of this subsection, the Secretary shall provide by appropriate means adequate medical care and treatment for any person who has a continuing need for the care and treatment of any radiation injury or illness directly related to the thermonuclear detonation referred to in paragraph (a) of this section. The costs of such medical care and treatment shall be assumed by the Administrator of the Energy Research and Development Administration.

(5) Not later than December 31, 1980, the Secretary shall report to the appropriate committees of the United States Congress for their consideration what, if any, additional compassionate compensation may be justified for those individuals continuing to suffer from injuries or illnesses directly related to radiation resulting from the thermonuclear detonation referred to in paragraph (a) of this section.

In the case of the demise of any individual entitled to receive payment under this section who expires before receiving such payment, the Secretary shall pay the amount which that individual would have been entitled to receive under this section to the heirs or legatees of such individual, in accordance with an appropriate method of distribution per stirpes, and not per capita. Where the demise of any individual eligible for payment under paragraph (1) or (3) supra is directly related to the thermonuclear detonation referred to in paragraph (a) of this section, the Secretary may make an additional compassionate payment not to exceed $100,000 to the heirs or legatees of such individual. In determining the amount of such payment the Secretary shall consider, but is not limited to, the following: any payments which the deceased has received or would have been eligible to receive under this section, and loss of support, services, or contributions to the heirs or legatees.

(b) For the use of each of the island communities of Rongelap, Utirik, and Bikini Atolls there is authorized to be appropriated $100,000. Such funds are to be paid by the Secretary, in conjunction with guidelines to be established by the High Commissioner of the Trust Territory of the Pacific Islands, for such community purposes as the municipal councils of such island communities may direct.

(c) A payment made under the provisions of this section shall be in full settlement and discharge of all claims against the United States arising out of the thermonuclear detonation on March 1, 1954.

(d) The decisions of the Secretary in allowing or denying any claim for payment under this section shall be final and conclusive on all questions of law and fact and not subject to review by any other official of the United States, or by any court by mandamus or otherwise.

(e) The Secretary is authorized to make such rules and regulations as he determines necessary to carry out the provisions of this section.

Sec. 105. In addition to amounts heretofore authorized pursuant to the Micronesian Claims Act of 1971 // 50 USC app. 2018. // (85 Stat. 96), there are hereby authorized to be appropriated to the Secretary of the Interior such sums as may be necessary to satisfy all adjudicated claims and final awards made by the Micronesian Claims Commission to date under title I and title II of said 1971 Act, // 50 USC app. 2019, 2020. // for full payment of such awards: Provided, That no sums appropriated pursuant to this section may be paid on awards pursuant to title I of said 1971 Act until, subsequent to the date of enactment of this section, the Government of Japan has provided to the Government of the Trust Territory of the Pacific Islands a contribution, which contribution may be in goods and services, which has a value as determined by the Secretary of the Interior equivalent to not less than 50 per centum of the total awards made pursuant to title I of said 1971 Act less $10,000,000 from such total: Provided further, That prior to making any payment on an award pursuant to either title I or title II of said 1971 Act, the Secretary shall review such award and determine whether any portion of such award constitutes interest not authorized to be awarded under the said 1971 Act and shall exclude from his payment such amounts as he determines constitute such interest. The Secretary's determination of the proportion of any award which constitutes such interest and the proportion which constitutes value shall be final and shall not be subject to judicial review.

TITLE II

Sec. 201. (a) There is hereby authorized to be appropriated to the Secretary of the Interior (hereinafter referred to as the Secretary), not to exceed $15,000,000 for a grant to the Government of Guam to assist in typhoon rehabilitation, upgrading and construction of public facilities, and maintenance of essential services.

(b) Funds provided under this Act may be used by Guam as its matching share for Federal programs and services.

(c) The Government of Guam in carrying out the purpose of this Act may utilize, to the extent practicable, the available services and facilities of agencies and instrumentalities of the United States Government on a reimbursable basis. Reimbursements may be credited to the appropriation or fund which provided the services and facilities. Agencies and instrumentalities of the United States Government may, when practicable, make available to the Government of Guam upon request of the Secretary such services and facilities as they are equipped to render or furnish, and they may do so without reimbursement if otherwise authorized by law.

(d) The Secretary may place such stipulations as he deems appropriate on the use of funds appropriated pursuant to section 301 (a).

Sec. 202. Section 2 of the Guam Development Fund Act of 1968 (82 Stat. 1172; 48 U.S.C. 1428) is amended by changing " Sec. 2." to " Sec. 2. (a)" and adding at the end thereof the following new subsection (b):

"(b) In addition to the appropriations authorized in subsection (a), $1,000,000 is authorized to be appropriated to the Secretary of the Interior to be paid to the Government of Guam annually for five fiscal years commencing in fiscal year 1978 to carry out the purposes of this Act.".

Sec. 203. The Organic Act of Guam (64 Stat. 394) // 48 USC 1422d. // as amended (48 U.S.C. 1421 et seq.) is further amended:

(a) by deleting from the first sentence of section 9-A (a) everything after the words "government of Guam"; adding a period after "guam"; and inserting the following sentence: " Effective October 1, 1977, the salary and expenses of the Comptroller's office shall be paid from funds authorized to be appropropriated to the Department of the Interior.";

(b) the Act of June 30, 1954 (68 Stat. 330),

// 48 USC 1681b //

as amended, is further amended by deleting the last sentence of section 4 (a);

(c) by changing the period at the end of section 31 (a)

// 48 USC 1421; //

to a colon and inserting the following: " Provided, That notwithstanding any other provision of law, the Legislature of Guam may levy a separate tax on all taxpayers in an amount not to exceed 10 per centum of their annual income tax obligation to the Government of Guam.".

Sec. 204. // 48 USC 1424c. // (a) Notwithstanding any law or court decision to the contrary, the District Court of Guam is hereby granted authority and jurisdiction to review claims of persons, their heirs or legatees, from whom interests in land on Guam were acquired other than through judicial condemnation proceedings, in which the issue of compensation was adjudicated in a contested trial in the District Court of Guam, by the United States between July 21, 1944, and August 23, 1963, and to award fair compensation in those cases where it is determined that less than fair market value was paid as a result of (1) duress, unfair influence, or other unconscionable actions, or (2) unfair, unjust, and inequitable actions of the United States.

(b) Land acquisitions effected through judicial condemnation proceedings in which the issue of compensation was adjudicated in a contested trial in the District Court of Guam, shall remain res judicata and shall not be subject to review hereunder.

(c) Fair compensation for purposes of this Act is defined as such additional amounts as are necessary to effect payment of fair market value at the time of acquisition, if it is determined that, as a result of duress, unfair influence, or other unconscionable actions, fair market value was not paid. Interest may not be allowed from the time of acquisition to the date of the award on such additional amounts as may be awarded pursuant to this section.

(d) The District Court of Guam may employ and utilize the services of such special masters or judges as are necessary to carry out the intent and purposes hereof.

(e) Awards made hereunder shall be judgments against the United States.

(f) Attorney's fees paid by claimants to counsel representing them may not exceed 5 per centum of any additional award. Any agreement to the contrary shall be unlawful and void. Whoever, in the United States or elsewhere, demands or receives any remuneration in excess of the maximum permitted by this section shall be guilty of a misdemeanor and, upon conviction thereof, shall be fined not more than $5,000 or imprisoned not more than twelve months, or both. A reasonable attorney's fee may be awarded in appropriate cases.

(g) All agencies and departments of the United States Government shall, upon request, deliver to the court any documents, records, and writings which are pertinent to any claim under review.

Sec. 205. There is hereby authorized to be appropriated to the Secretary of the Interior such sums as may be necessary for grants to the Government of Guam to meet the health care needs of Guam, but not to exceed $25,000,000: Provided, That no grant may be made by the Secretary of the Interior pursuant to this section without the prior approval of the Secretary of Health, Education, and Welfare.

TITLE III

Sec. 301. (a) The Revised Organic Act of the Virgin Islands (68 Stat. 504) as amended (48 U.S.C. 1599) is further amended as follows: Delete from the first sentence of section 17 (a) everything after the words "government of the Virgin Islands", add a period after " Virgin Islands" and insert the following sentence: " Effective October 1, 1977, the salary and expenses of the Comptroller's office shall be paid from funds authorized to be appropriated to the Department of the Interior.".

(b) Section 9 (d) of the revised Organic Act of the Virgin Islands (68 Stat. 497; 48 U.S.C. 1541 et seq.) // 48 USC 1575. // is amended by inserting immediately before the period at the end thereof the following:", unless the legislature, after reconsideration upon motion of a member thereof, passes such items, parts, or portions so objected to by a vote of two-thirds of all the members of the legislature."

(c) Section 8 of the Revised Organic Act of the Virgin Islands (48 U.S.C. 1574) is amended by adding at the end thereof the following new subsection:

"(f) (1) The Legislature of the Virgin Islands may impose on the importation of any article into the Virgin Islands for consumption therein a customs duty. The rate of any customs duty imposed on any article under this subsection may not exceed--,

"(A) if an ad valorem rate, 6 per centum ad valorem; or

"(B) if a specific rate or a combination ad valorem and specific rate, the equivalent or 6 per centum ad valorem.

"(2) Nothing in this subsection shall prohibit the Legislature of the Virgin Islands from permitting the duty-free importation of any article.

"(3) Nothing in this subsection shall be construed as empowering the Legislature of the Virgin Islands to repeal or amend any provision in law in effect on the day before the date of the enactment of this subsection which pertains to the customs valuation or customs classification of articles imported into the Virgin Islands.".

TITLE IV

Sec. 401. // 43 USC 1457 // The Secretary of the Interior is directed to submit to the Congress not later than January 1, 1978, a report on Federal programs available to the territories of the United States indicating in such report what programs are available to each territory, what additional programs would be of benefit to such territory if made available, what changes or modifications to each program should be made to improve the operation and effectiveness of each program and the estimated costs of such program. There is hereby authorized to be appropriated for fiscal year 1978 $50,000 to assist the Secretary in the preparation of this report.

Sec. 402. In order to compensate the territories of Guam and the Virgin Islands for unexpected revenue losses occasioned by the Tax Reduction Act of 1975 // 26 USC 7651 // and the Tax Reform Act of 1976 // 26 USC 1 // there is hereby authorized to be appropriated to the Secretary for grants to the government of Guam not to exceed $15,000,000 and after October 1, 1977, for grants to the government of the Virgin Islands not to exceed $14,000,000, such sums being in addition to those previously authorized for such purposes.

Sec. 403. Effective on the date of enactment of this Act, // 48 USC 1681 // those laws, except for any laws administered by the Social Security Administration and except for medicaid which is now administered by the Health Care Financing Administration, which are referred to in section 502 (a) (1) // 90 Stat. 268. // (except for the reference to the Micronesian Claims Act of 1971 (85 Stat. 96)) // 50 USC app. 2018. // of the Covenant to Establish a Commonwealth of the Northern Mariana Islands in Political Union With the United States of America, approved by joint resolution approved on March 24, 1976 (90 Stat. 263), and 502 (a) (2) of said Covenant shall be applicable to the territories of Guam and the Virgin Islands on the same terms and conditions as such laws are applied to the Commonwealth of the Northern Mariana Islands.

TITLE V

Sec. 501. // 48 USC 1469a. // In order to minimize the burden caused by existing application and reporting procedures for certain grant-in-aid programs available to the Virgin Islands, Guam, American Samoa, the Trust Territory of the Pacific Islands, and the Government of the Northern Mariana Islands (hereafter referred to as " Insular Areas") it is hereby declared to be the policy of the Congress that:

(a) Notwithstanding any provision of law to the contrary, any department or agency of the Government of the United States which administers any Act of Congress which specifically provides for making grants to any Insular Area under which payments received may be used by such Insular Area only for certain specified purposes (other than direct payments to classes of individuals) may, acting through appropriate administrative authorities of such department or agency, consolidate any or all grants made to such area for any fiscal year or years.

(b) Any consolidated grant for any insular area shall not be less than the sum of all grants which such area would otherwise be entitled to receive for such year.

(c) The funds received under a consolidated grant shall be expended in furtherance of the programs and purposes authorized for any of the grants which are being consolidated, which are authorized under any of the Acts administered by the department or agency making the grant, and which would be applicable to grants for such programs and purposes in the absence of the consolidation, but the Insular Areas shall determine the proportion of the funds granted which shall be allocated to such programs and purposes.

(d) Each department or agency making grants-in-aid shall, by regulations published in the Federal Register, provide the method by which any Insular Area may submit (i) a single application for a consolidated grant for any fiscal year period, but not more than one such application for a consolidated grant shall be required by any department or agency unless notice of such requirement is transmitted to the appropriate committees of the United States Congress together with a complete explanation of the necessity for requiring such additional applications and (ii) a single report to such department or agency with respect to each such consolidated grant: Provided, That nothing in this paragraph shall preclude such department or agency from providing adequate procedures for accounting, auditing, evaluating, and reviewing any programs or activities receiving benefits from any consolidated grant. The administering authority of any department or agency, in its discretion, may (i) waive any requirement for matching funds otherwise required by law to be provided by the Insular Area involved and (ii) waive the requirement that any Insular Area submit an application or report in writing with respect to any consolidated grant. 1977.

LEGISLATIVE HISTORY:

HOUSE REPORT No. 95 - 228 (Comm. on Interior and Insular

Affairs).

SENATE REPORT No. 95 - 332 (Comm. on Energy and Natural

Resources).

CONGRESSIONAL RECORD, Vol. 123 (1977):

May 2, considered and passed House.

July 25, considered and passed Senate, amended.

Sept. 27, House agreed to certain Senate amendments with amendments.

Sept. 28, Senate concurred in House amendments with an amendment.

Sept. 29, 30, House concurred in Senate amendment with an amendment.

Sept. 30, Senate concurred in House amendment.

PUBLIC LAW 95-133, 91 STAT. 1158

95th CONGRESS, S. 667 OCTOBER 15, 1977 AN ACT To declare certain federally owned land held in trust by the United States for the Te-Moak Bands of Western Shoshone Indians.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That, subject to all valid existing rights-of-way, leases and easements, all right, title, and interest of the United States in and to the following described land, and improvements thereon, are hereby declared to be held by the United States in trust for the Te-Moak Bands of Western Shoshone Indians:

The north half of the southwest quarter of section 4, township 37 north, range 62 east, Mount Diablo base and meridian.

LEGISLATIVE HISTORY:

HOUSE REPORT No. 95-624 (Comm. on Interior and Insular Affairs).

SENATE REPORT No. 95 - 237 (Comm. on Indian Affairs).

CONGRESSIONAL RECORD, Vol. 123 (1977):

June 9, considered and passed Senate.

Oct. 3, considered and passed House.

PUBLIC LAW 95-132, 91 STAT. 1157

95th CONGRESS, H.R. 5645 OCTOBER 13, 1977 AN ACT To raise the limitation on appropriations for the United States Commission on Civil Rights.

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 " Civil Rights Commission Authorization Act of 1977". // 42 USC 1975 //

Sec. 2. Section 106 of the Civil Rights Act of 1957 (42 U.S.C. 1975e), as amended is further amended to read as follows:

" Sec. 106. For the purposes of carrying out this Act, there is hereby authorized to be appropriated for the fiscal year ending September 30, 1978, the sum of $10,480,000 and such additional amounts as may be necessary for increases in salary, pay, retirement, and other employee benefits authorized by law which arise subsequent to the date of the enactment of the Civil Rights Commission Authorization Act of 1977.".

LEGISLATIVE HISTORY:

HOUSE REPORT No. 95 - 324 (Comm. on the Judiciary).

SENATE REPORT No. 95-223 accompanying S. 1231 (Comm. on the Judiciary).

CONGRESSIONAL RECORD, Vol. 123 (1977):

May 23, considered and passed House.

June 13, considered and passed Senate, amended, in lieu of

S. 1231.

Sept. 27, House agreed to Senate amendment with an

amendment.

Sept. 30, Senate concurred in House amendment.

PUBLIC LAW 95-131, 91 STAT. 1155

95th CONGRESS, H.R. 6530 OCTOBER 13, 1977 AN ACT To amend the District of Columbia Self-Government and Governmental Reorganization Act with respect to the borrowing authority of the District of Columbia, 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 723 of the District of Columbia Self-Government and Governmental Reorganization Act (D.C. Code, sec. 47-241 note) is amended--,

(1) in subsection (a) by striking out "the effective date of title IV" in the first sentence and inserting in lieu thereof " October 1, 1979"; and

(2) by adding at the end thereof the following new

subsection:

"(d) The authority contained in this section to make loans shall be effective for any fiscal year only to such extent or in such amounts as are provided in appropriation Acts.".

Sec. 2. Section 448 (4) of the District of Columbia Self-Government and Governmental Reorganization Act (D.C. Code, sec. 47-226 (4) is amended by striking out " November 1" and inserting in lieu thereof " February 1".

Sec. 3. (a) Section 431 (e) (1) (C) of the District of Columbia Self-government and Governmental Reorganization Act (D.C. Code, title 11 App. 431 (e) (1) (C) is amended--,

(1) by striking out "202" and inserting in lieu thereof "102"; and

(2) by striking out "subsection (b) (4) (D)" and inserting in lieu thereof "paragraph (3) (E)".

(b) Section 434 (b) (1) (C) of such Act (D.C. Code, title 11 App. 434 (b) (1) (C) is amended--,

(1) by striking out "202" and inserting in lieu thereof "102"; and

(2) by striking out "subsection (b) (4) (D)" and inserting in lieu thereof "paragraph (4) (E)".

Sec. 4. Section 743 of the District of Columbia Self-Government and Governmental Reorganization Act is amended--,

(1) by striking out "60 Stat. 195" in subsection (b) and inserting in lieu thereof "64 Stat. 195";

(2) by redesignating subsection (e) as subsection (f); and

(3) by inserting after subsection (d) the following new subsection:

"(e) Section 4 of the Act entitled " An Act to authorize the Commissioners of the District of Columbia to plan, construct, operate, and maintain a sanitary sewer to connect the Dulles International Airport with the District of Columbia system", approved June 12, 1960 (74 Stat. 211; D.C. Code, sec. 43-1623), is repealed.".

LEGISLATIVE HISTORY:

HOUSE REPORT No. 95-248 (Comm. on the District of Columbia).

SENATE REPORT No. 95-224 accompanying S. 1061 (Comm. on

Governmental

Affairs).

CONGRESSIONAL RECORD, Vol. 123 (1977):

June 13, S. 1061 considered and passed Senate.

Sept. 26, considered and passed House.

Oct. 4, considered and passed Senate.

PUBLIC LAW 95-130, 91 STAT. 1153

95th CONGRESS, H.J. RES. 626 OCTOBER 13, 1977 Joint Resolution Making continuing appropriations for the fiscal year 1978, and for other purposes.

Resolved by the Senate and House of Representatives of the United States of America in Congress assembled, That the following sums are appropriated out of any money in the Treasury not otherwise appropriated, and out of applicable corporate or other revenues, receipts, and funds, for the several departments, agencies, corporations, and other organizational units of the Government for the fiscal year 1978, namely:

Sec. 101. (a) (1) Such amounts as may be necessary for continuing projects or activities which were conducted in the fiscal year 1977, and for which appropriations, funds, or other authority would be available in the conference agreement on the Departments of Labor, and Health, Education, and Welfare, and Related Agencies Appropriation Act, 1978 (H.R. 7555), but at a rate for operations not in excess of the current rate or the rate provided for in said appropriation act, whichever is lower.

(2) Appropriations made by this subsection shall be available to the extent and in the manner available in the fiscal year 1977.

(b) Such amounts as may be necessary for continuing projects or activities which were conducted in the fiscal year 1977, and for which appropriations, funds, or other authority would be available in the District of Columbia Appropriations Act, 1978 (H.R. 9005) as passed the House of Representatives or the Senate, but at a rate of operations not in excess of the current rate: Provided, That the Advisory Neighborhood Commissions shall be continued at an annual rate of not to exceed $500,000; and

(c) Such amounts as may be necessary to continue to pay the salaries and related personnel benefits of employees engaged in carrying out the functions which would be provided for in the Foreign Assistance and Related Programs Appropriation Act, 1978 (H. r. 7797) as passed the House of Representatives or the Senate. The provisions of this subsection shall not be construed to provide appropriations to commence or continue any program, project or activity provided for in said appropriation act.

Sec. 102. Appropriations and funds made available and authority granted pursuant to this joint resolution shall be available from October 1, 1977, and shall remain available until (a) enactment into law of an appropriation for any project or activity provided for in this joint resolution, or (b) October 31, 1977, whichever first occurs.

Sec. 103. Appropriations and funds made available or authority granted pursuant to this joint resolution may be used without regard to the time limitations for submission and approval of apportionments set forth in 31 U.S.C. 665 (d) (2), but nothing herein shall be construed to waive any other provision of law governing the apportionment of funds.

Sec. 104. Appropriations made and authority granted pursuant to this joint resolution shall cover all obligations or expenditures incurred for any project or activity during the period for which funds or authority for such project or activity are available under this joint resolution.

Sec. 105. Expenditures made pursuant to this joint resolution shall be charged to the applicable appropriation, fund, or authorization whenever a bill in which such applicable appropriation, fund, or authorization is contained is enacted into law.

Sec. 106. No appropriation or fund made available or authority granted pursuant to this joint resolution shall be used to initiate or resume any project or activity for which appropriations, funds, or other authority were not available during the fiscal year 1977.

Sec. 107. Any appropriation for the fiscal year 1978 required to be apportioned pursuant to 31 U.S.C. 665, may be apportioned on a basis indicating the need (to the extent any such increases cannot be absorbed within available appropriations) for a supplemental or deficiency estimate of appropriation to the extent necessary to permit payment of such pay increases as may be granted pursuant to law to civilian officers and employees and to active and retired military personnel. Each such appropriation shall otherwise be subject to the requirements of 31 U.S.C. 665.

Sec. 108. All obligations incurred in anticipation of the appropriations and authority provided in this joint resolution are hereby ratified and confirmed if otherwise in accordance with the provisions of this joint resolution.

LEGISLATIVE HISTORY:

CONGRESSIONAL RECORD, Vol. 123 (1977):

Oct. 13, considered and passed House and Senate.

PUBLIC LAW 95-129, 91 STAT. 1151

95th CONGRESS, S. 1331 OCTOBER 13, 1977 An Act To provide for the establishment of a Center for the Book in the Library of Congress, and for other purposes.

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

DECLARATION OF FINDINGS AND PURPOSE

Section 1. The Congress hereby finds and declares--,

(1) that the Congress of the United States on April 24, 1800, established for itself a library of the Congress;

(2) that in 1815, the Congress purchased the personal library of the third President of the United States which contained materials on every science known to man and described such a collection as a "substratum of a great national library";

(3) that the Congress of the United States in recognition of the importance of printing and its impact on America purchased the Gutenberg Bible in 1930 for the Nation for placement in the Library of Congress;

(4) that the Congress of the United States has through statute and appropriations made this library accessible to any member of the public;

(5) that this collection of books and other library materials has now become one of the greatest libraries in civilization;

(6) that the book and the printed word have had the most profound influence on American civilization and learning and have been the very foundation on which our democratic principles have survived through our two hundred-year history;

(7) that in the year 1977, the Congress of the United States assembled hereby declares its reaffirmation of the importance of the printed word and the book and recognizes the importance of a Center for the Book to the continued study and development of written record as central to our understanding of ourselves and our world.

It is therefore the purpose of this Act to establish a Center for the Book in the Library of Congress to provide a program for the investigation of the transmission of human knowledge and to heighten public interest in the role of books and printing in the diffusion of this knowledge.

DEFINITIONS

Sec. 2. As used in this Act--, // 2 USC 172. //

(1) the term Center means the Center for the Book;

(2) the term Librarian means the Librarian of Congress.

ESTABLISHMENT OF THE CENTER

Sec. 3. // 2 USC 173. // There is hereby established in the Library of Congress a Center for the Book.

The Center shall be under the direction of the Librarian of Congress.

FUNCTION OF THE CENTER

Sec. 4. // 2 USC 174. // The Librarian through the Center shall stimulate public interest and research in the role of the book in the diffusion of knowledge through such activities as a visiting scholar program accompanied by lectures, exhibits, publications, and any other related activities.

ADMINISTRATIVE PROVISIONS

Sec. 5. // 2 USC 175. // The Librarian of Congress, in carrying out the Center's functions, is authorized to--,

(1) prescribe such regulations as he deems necessary;

(2) receive money and other property donated, bequeathed, or devised for the purposes of the Center, and to use, sell, or otherwise dispose of such property for the purposes of carrying out the Center's functions, without reference to Federal disposal statutes; and

(3) accept and utilize the services of voluntary and noncompensated personnel and reimburse them for travel expenses, including per diem, as authorized by section 5703 of title 5, United States Code.

LEGISLATIVE HISTORY:

HOUSE REPORT No. 95-491 accompanying H.R. 6214 (Comm. on

HOUSE ADMINISTRATION).

SENATE REPORT No. 95-315 (Comm. on Rules and Administration).

CONGRESSIONAL RECORD, Vol. 123 (1977):

July 12, considered and passed Senate.

Sept. 26, considered and passed House, amended, in lieu of H. R. 6214

Sept. 30, Senate agreed to House amendments.

PUBLIC LAW 95-128, 91 STAT. 1111, HOUSING AND COMMUNITY DEVELOPMENT ACT OF 1977.

95th CONGRESS, H.R. 6655 OCTOBER 12, 1977 AN ACT To amend certain Federal laws pertaining to community development, housing, and related programs.

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

Section 1. This Act may be cited as the " Housing and Community Development Act of 1977". // 42 USC 5301 //

TITLE I -- COMMUNITY DEVELOPMENT OBJECTIVES AND PURPOSES OF COMMUNITY DEVELOPMENT ACTIVITIES

Sec. 101. (a) Section 101 (c) of the Housing and Community Development Act of 1974 // 42 USC 5301. // is amended--,

(1) by striking out "and" at the end of paragraph (6);

(2) by striking out the period at the end of paragraph (7) and inserting in lieu thereof"; and"; and

(3) by adding the following new paragraph after paragraph (7):

"(8) the alleviation of physical and economic distress through the stimulation of private investment and community revitalization in areas with population outmigration or a stagnating or declining tax base."

(b) Section 101 (d)(4) of such Act is amended by inserting the following before the period at the end thereof: "by Federal agencies and programs, as well as by communities".

DEFINITIONS

Sec. 102. (a) Section 102(a) of the Housing and Community Development Act of 1974 // 42 USC 5302. // is amended--,

(1) by striking out "the Trust Territory of the Pacific Islands; and Indian tribes, bands, groups, and nations, including Alaska Indians, Aleuts, and Eskimos, of the United States" in paragraph (1) and inserting in lieu thereof "and the Trust Territory of the Pacific Islands";

(2) by inserting before the period at the end of paragraph (4) the following:"; except that any city which has been classified as a metropolitan city under clause (B) of this paragraph shall continue to be so classified until the decennial census indicates that the population of such city is less than fifty thousand";

(3) by inserting the following before the period at the end of paragraph (5): "which have not entered into cooperation agreements with such town or township to undertake or to assist in the undertaking of essential community development and housing assistance activities";

(4) by inserting in paragraph (6) "either" before "(B)" and by inserting before the period at the end thereof the following: "or (C) has a population in excess of one hundred thousand, a population density of at least five thousand persons per square mile, and contains within its boundaries no incorporated places as defined by the United States Bureau of Census";

(5) by redesignating paragraphs (10), (11), (12), and (13)

as paragraphs (17), (18), (19), and (20), respectively; and

(6) by inserting after paragraph (9) the following new paragraphs:

"(10) The term 'age of housing' means the number of existing housing units constructed in 1939 or earlier based on data compiled by the United States Bureau of the Census and referable to the same point or period in time.

"(11) The term 'extent of growth lag' means the number of persons who would have been residents in a metropolitan city or urban county, in excess of the current population of such metropolitan city or urban county, if such metropolitan city or urban county had had a population growth rate between 1960 and the date of the most recent population count referable to the same point or period in time equal to the population growth rate for such period of all metropolitan cities.

"(12) The term 'housing stock' means the number of existing housing units based on data compiled by the United States Bureau of the Census and referable to the same point or period in time.

"(13) The term 'adjustment factor' means the ratio between the age of housing in the metropolitan city or urban county and the predicted age of housing in such city or county.

"(14) The term 'predicted age of housing' means the arithmetic product of the housing stock in the metropolitan city or urban county multiplied times the ratio between the age of housing in all metropolitan areas and the housing stock in all metropolitan areas.

"(15) The term 'adjusted age of housing' means the arithmetic product of the age of housing in the metropolitan city or urban county multiplied times the adjustment factor.

"(16) The term ' Indian tribe' means any Indian tribe, band, group, and nation, including Alaska Indians, Aleuts, and Eskimos, and any Alaskan Native Village, of the United States, which is considered an eligible recipient under the Indian Self-Determination and Education Assistance Act (Public Law 93 - 638),

// 25 USC 450 //

or under the State and Local Fiscal Assistance Act of 1972 (Public Law 92 - 512).".

// 31 USC 1221 //

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

"(d) An urban county designated under subsection (a)(6)(B)(i) of this section shall notify, prior to a date set by the Secretary for each year, all incorporated units of general local government the populations of which are included in the population of such urban county for purposes of this section of their opportunity to exclude their population from such urban county. Any unit of general local government which has not elected to have its population so excluded shall have its population included within the population of such urban county for purposes of this section until it, on its own initiative, elects to exclude its population by notifying the urban county on or before a date set by the Secretary.".

AUTHORIZATIONS

Sec. 103. (a) The first sentence of section 103 (a) (1) of the Housing and Community Development Act of 1974, // 42 USC 5303. // is amended by inserting "and Indian tribes" after "units of general local government".

(b) Section 103 (a) (1) of such Act is amended by striking out everything after the first sentence and inserting in lieu thereof the following: " There are authorized to be appropriated for these purposes not to exceed $3,500,000,000 for the fiscal year 1978, not to exceed $3,650,000,000 for the fiscal year 1979, and not to exceed $3,800,000,000 for the fiscal year 1980. Any amount authorized for any fiscal year under this section but not appropriated for such year may be appropriated for any succeeding fiscal year.".

(c) Section 103 (a) (2) of such Act is amended to read as follows:

"(2) Of the amounts approved in appropriations Acts pursuant to paragraph (1), $50,000,000 for each of the fiscal years 1975 and 1976, $200,000,000 for the fiscal year 1977 (not more than 50 per centum of which amount may be used under section 106 (d)(1), $350,000,000 for the fiscal year 1978 (of which not more than $175,0008000 may be used under such section), $265,000,000 for the fiscal year 1979 (of which not more than $25,000,000 may be used under such section), and $250,000,000 for the fiscal year 1980 (none of which may be used under such section) shall be added to the amount available for allocation under section 106 (d) and shall not be subject to the provisions of section 107."

(d) Section 103 (b) of such Act // 42 USC 5303. // is amended--,

(1) by striking out "for the fiscal year 1977," and inserting in lieu thereof "for each of the fiscal years 1977, 1978, 1979, and 1980.":

(2) by striking out "to units of general local government having urgent community development needs which cannot be met" and inserting in lieu thereof "for the financial settlement and, to the extent feasible, the completion of projects and programs assisted under the categorical programs terminated in section 116 (a), primarily urban renewal projects assisted under the housing Act of 1949, // 42 USC 5316. 42 USC 1441. // to units of general local government which require supplemental assistance which cannot be provided"; and

(3) by adding at the end thereof the following new sentence: " No funds shall be made available under this subsection (1) for fiscal year 1978 unless the amount appropriated under subsection (a) for fiscal year 1978 is at least $3,500,000,000; (2) for fiscal year 1979 unless the amount appropriated under subsection (a) for fiscal year 1979 is at least $3,650,000,000; or (3) for fiscal year 1980 unless the amount appropriated under subsection (a) for fiscal year 1980 is at least $3,800,000,000.".

(e) Section 103 of such Act // 42 USC 5303. // is amended by redesignating subsections (c) and (d) as subsections (d) and (e), respectively, and by adding the following new subsection after subsection (b):

"(c) There is authorized to be appropriated a sum not in excess of $400,000,000 for supplemental grant assistance under section 119 for each of the fiscal years 1978, 1979, and 1980, except that no funds shall be made available for such purpose (1) for fiscal year 1978 unless the amount appropriated under subsections (a) and (b) for fiscal year 1978 is at least $3,600,000,000; (2) for fiscal year 1979 unless the amount appropriated under subsections (a) and (b) for fiscal year 1979 is at least $3,750,000,000; or (3) for fiscal year 1980 unless the amount appropriated under subsections (a) and (b) for fiscal year 1980 is at least $3,900,000,000.".

Sec. 104. (a) Section 104 (a) of the Housing and Community Development Act of 1974 // 42 USC 5304 // is amended--,

(1) by inserting "and housing" in paragraph (1) after "which identifies community development";

(2) by inserting after "needs" in paragraph (2) (B) the following:" including activities designed to revitalize neighborhoods for the benefit of low- and moderate-income persons,";

(3) by striking out "and" at the end of paragraph (3) (A); by striking out the semicolon at the end of paragraph (3) (B) and inserting in lieu thereof "and in a manner to insure fully opportunity for participation by, and benefits to, the handicapped; and"; and by inserting the following new subparagraph after paragraph (3) (B):

"(C) improve conditions for low- and moderate-income persons residing in or expected to reside in the community and foster neighborhood development in order to induce higher-income persons to remain in, or return to, the community;";

(4) by striking out paragraph (4) and inserting in lieu thereof the following:

(4) submits a housing assistance plan which--,

"(A) accurately surveys the condition of the housing stock in the community and assesses the housing assistance needs of lower-income persons (including elderly and handicapped persons, large families, and persons displaced or to be displaced) residing in or expected to reside in the community and identifies housing stock which is in a deteriorated condition, "(B) specifies a realistic annual goal for the number of dwelling units or lower-income persons to be assisted, including (i) the relative proportion of new, rehabilitated, and existing dwelling units, (ii) the sizes and types of housing projects and assistance best suited to the needs of lower-income persons in the community,and (iii) in the case of subsidized rehabilitation, adequate provisions to assure that a preponderance of persons assisted should be of low- and moderate-income, and "(C) indicates the general locations of proposed housing for lower-income persons, with the objective of (i) furthering the revitalization of the community, including the restoration and rehabilitation of stable neighborhoods to the maximum extent possible, and the reclamation of the housing stock where feasible through the use of a broad range of techniques for housing restoration by local government, the private sector, or community organizations, including provision of a reasonable opportunity for tenants displaced as a result of such activities to relocate in their immediate neighborhood, (ii) promoting greater choice of housing opportunities and avoiding undue concentrations of assisted persons in areas containing a high proportion of low-income persons, and (iii) assuring the availability of public facilities and services adequate to serve proposed housing projects;"; and

(5) by striking out paragraph (6) and inserting in lieu thereof the following:

"(6) provides satisfactory assurances that, prior to submission of its application, it has (A) prepared and followed a written citizen participation plan which provides citizens an opportunity to participate in the development of the application, encourages the submission of views and proposals, particularly by residents of blighted neighborhoods and citizens of low- and moderate income, provides for timely responses to the proposals submitted, and schedules hearings at times and locations which permit broad participation; (B) provided citizens with adequate information concerning the amount of funds available for proposed community development activities and housing activities, the range of activities that may be undertaken, qand other important requirements: (C) held public hearings to obtain the views of citizens on community development and housing needs; and (D) provided citizens with an opportunity to submit comments concerning the community development performance of the applicant; but nothing in this paragraph shall be construed to restrict the responsibility and authority of the applicant for the development of the application and the execution of its community development program.".

(b) Section 104 (b)(2) of such Act is amended--,

(1) by striking out "low- or moderate-income" in the first sentence and inserting in lieu thereof "low- and moderate income": and

(2) by striking out all after "urgency" in the second sentence and inserting in lieu thereof "because existing conditions pose a serious and immediate threat to the health or welfare of the community, and other financial resources are not available.".

(c) Section 104 (b) (3) of such Act is amended--,

(1) by striking out clauses (B) and (C) and inserting in lieu thereof "(B) the application does not involve a comprehensive community development program, as determined by the Secretary, and"; and

(2) by redesignating clause (D) as clause (C).

(d) Section 104 (c) (3) of such Act is amended by inserting after "the requirements of this title" the following:", with specific regard to the primary purposes of principally benefiting persons of low- and moderate-income or aiding in the prevention or elimination of slums or blight or meeting other community development needs having a particular urgency.".

(e) Section 104 (d) of such Act is amended--,

(1) by inserting after the first sentence the following: " The performance report shall include any citizen comments submitted pursuant to subsection (a)(6)(D) and the Secretary shall consider such comments, together with the views of other citizens and such other information as may be available, in carrying out the provisions of this subsection."; and

(2) by adding at the end thereof the following: " With respect to grants made pursuant to sections 106(d)(2) and 106(f)( 1)(B), the Secretary may adjust, reduce, or withdraw grant funds, or take other action as appropriate in accordance with such reviews and audits, except that funds already expended on eligible activities under this title shall not be recaptured or deducted from future grants made to the recipient.".

(f) Section 104(e) of such Act is amended by adding the following new sentence at the end thereof: " In addition, the Secretary may provide an opportunity for the State, in which a grant is to be made to a unit of general local government under section 106(d)(2) or 106 (f)( 1)(B), // 42 USC 5306, // to participate in the selection process for funding such grants. Such participation may include, as determined practicable by the Secretary, the incorporation of State growth and resource coordination policies in funding decisions on such grants, or such other arrangements, excluding administration of the grants referred to in the preceding sentence, as the Secretary deems appropriate.".

(g) Section 104 of such Act is amended by adding the following new subsection at the end thereof:

"(i)(1) The Secretary shall, in making funds available to the recipients of grants under this title, permit any such recipient to receive funds, in one payment, in an amount not to exceed the total amount designated in the recipient's application, and approved by the Secretary pursuant to this section, for use by the recipient for establishing a revolving loan fund which is to be established in a private financial institution and which is to be used to finance rehabilitation activities that are part of the recipient's community development program. The Secretary may, as a condition of making such payment, require that the revolving loan fund be utilized for the making of loans to finance rehabilitation activities in a manner consistent with this title. Rehabilitation activities authorized under this section shall begin within forty-five days after the Secretary has made such payment.

"(2) The Secretary shall establish standards for such cash payments which will insure that the deposits result in appropriate benefits in support of the recipient's rehabilitation program. These standards shall be designed to assure that the benefits to be derived from the local program include, at a minimum, one or more of the following elements, or such other criteria as determined by the Secretary--,

"(A) leverage of community development block grant funds so that participating financial institutions commit private funds for loans in the rehabilitation program in amounts substantially in excess of deposit of community development funds;

"(B) commitment of private funds for rehabilitation loans at below-market interest rates or with repayment periods lengthened or at higher risk than would normally be taken;

"(C) provision of administrative services in support of the rehabilitation program by the participating lending institutions; and

"(D) interest earned on such cash deposits shall be used in a manner which supports the community rehabilitation program.

At the time of application, the Secretary shall review and approve all agreements with lending institutions which receive funds for community rehabilitation programs. Such approval shall be made on a case-by-case basis, and upon a determination by the Secretary that the agreement with the lending institution meets minimum benefit standards as listed in this paragraph.".

ELIGIBLE ACTIVITIES

Sec. 105. (a) Section 105(a) of the Housing and Community Development Act of 1974 // 42 USC 5305. // is amended by inserting the following after "under this title" the first time it appears therein: "shall consist of activities which assist in carrying out a comprehensive strategy for meeting the community development and housing needs and priorities identified pursuant to section 104, giving primary attention to activities benefiting low- and moderate-income persons and neighborhoods, aiding in the prevention or elimination of slums or blight, or meeting other community development needs having a particular urgency. These activities".

(b) The parenthetical expression in section 105(a)(4) of such Act is amended to read as follows: "(including interim assistance, and financing public or private acquisition for rehabilitation, and rehabilitation, of privately owned properties)".

(c) Section 105(a)(8) of such Act is amended by striking out "economic development,", and by inserting before the semicolon at the end thereof the following:", and if such services have not been provided by the unit of general local government (through funds raised by such unit, or received by such unit from the State in which it is located) during any part of the twelve-month period immediately preceding the date of application submission for funds which are to be made available under this title, and which are to be utilized for such services, unless the Secretary finds that the discontinuation of such services was the result of events not within the control of the applicant".

(d) Section 105(a) of such Act is amended--,

(1) by striking out "and" at the end of paragraph (12);

(2) by striking out the period at the end of paragraph (13) and inserting in lieu thereof"; and"; and

(3) by adding at the end thereof the following new

paragraphs:

"(14) activities which are carried out by public or private nonprofit entities when such activities are necessary or appropriate to meeting the needs and objectives of the community development plan described in section 104(a)(1), including (A) acquisition of real property; (B) acquisition, construction, reconstruction, rehabilitation, or installation of (i) public facilities, site improvements, and utilities, and (ii) commercial or industrial buildings or structures and other commercial or industrial real property improvements; and (C) planning; and

"(15) grants to neighborhood-based nonprofit organizations, local development corporations, or entities organized under section 301 (d) of the Small Business Investment Act of 1958,

// 15 USC 681. //

to carry out a neighborhood revitalization or community economic development project in furtherance of the objectives of section 101 (c).".

ALLOCATION AND DISTRIBUTION OF FUNDS

Sec. 106. (a) Section 106(a) of the Housing and Community Development Act of 1974 // 42 USC 5306. // is amended by striking out "(2) or (3)" in the second sentence and inserting in lieu thereof "(1) or (2)".

(b) Section 106(b) of such Act is amended by striking out paragraphs (1) through (4) and inserting in lieu thereof the following:

"(b)(1) The Secretary shall determine the amount to be allocated to each metropolitan city which shall be the greater of an amount that bears the same ratio to the allocation for all metropolitan areas as either--,

"(A) the average of the ratios between--,

"(i) the population of that city and the population of all metropolitan areas; "(ii) the extent of poverty in that city and the extent of poverty in all metropolitan areas; and "(iii) the extent of housing overcrowding in that city and the extent of housing overcrowding in all metropolitan areas; or

"(B) the average of the ratios between--,

"(i) the extent of growth lag in that city and the extent of growth lag in all metropolitan cities; "(ii) the extent of poverty in that city and the extent of poverty in all metropolitan areas; and "(iii) the age of housing in that city and the age of housing in all metropolitan areas.

"(2) The Secretary shall determine the amount to be allocated to each urban county, which shall be the greater of an amount that bears the same ratio to the allocation for all metropolitan areas as either--,

"(A) the average of the ratios between--,

"(i) the population of that urban county and the population of all metropolitan areas; "(ii) the extent of poverty in that urban county and the extent of poverty in all metropolitan areas; and "(iii) the extent of housing overcrowding in that urban county and the extent of housing overcrowding in all metropolitan areas; or

"(B) the average of the ratiosbetween--,

"(i) the extent of growth lag in that urban county and the extent of growth lag in all metropolitan cities and urban counties; "(ii) the extent of poverty in that urban county and the extent of poverty in all metropolitan areas; and "(iii) the age of housing in that urban county and the age of housing in all metropolitan areas.

"(3) In determining the average of ratios under paragraphs (1) (A) and (2)(A), the ratio involving the extent of poverty shall be counted twice, and each of the other ratios shall be counted once; and in determining the average of ratios under paragraphs (1)(B) and (2)(B), the ratio involving the extent of growth lag shall be counted once, the ratio involving the extent of poverty shall be counted one and one-half times, and the ratio involving the age of housing shall be counted two and one-half times.".

(c) Section 106(b)(5) of such Act is amended--,

(1) by striking out "(5)" and inserting in lieu thereof "(4)"; and

(2) by striking out "receive" and inserting in lieu thereof "are entitled to".

(d) Section 106(c) of such Act is amended--,

(1) by striking out " During the first three years for which funds are approved for distribution to a metropolitan city or urban county under this section" in the first sentence and inserting in lieu thereof " With respect to funds approved for distribution to a metropolitan city or urban county under this section during fiscal years 1975, 1976, and 1977"; and

(2) by inserting "only for such funds approved for distribution in fiscal years 1975, 1976, and 1977" after "adjusted" in the first sentence.

(e) Section 106 (d) of such Act is amended to read as follows:

"(d)(1) Any portion of the amount allocated to metropolitan areas under the first sentence of subsection (a) which remains after the allocation of grants to metropolitan cities and urban counties in accordance with subsection (b) and any amounts added in accordance with the provisions of section 103 (a)(2) shall be allocated by the Secretary, first, for grants to metropolitan cities, urban counties, and other units of general local government within metropolitan areas to meet their hold-harmless needs as determined under subsection (g) and (h), and, second, in accordance with the provisions of paragraph( 2).

"(2) Any portion of such amounts which remains afters applying the provisions of paragraph (1) shall be utilized by the Secretary for grants to units of general local government within metropolitan areas (other than metropolitan cities and urban counties), and States for use within metropolitan areas, allocating for the metropolitan areas of each State the greater of an amount that bears the same ratio to the allocation for such areas of all States available under this paragraph as either--,

"(A) the average of the ratio between--,

"(i) the population of the metropolitan areas in that State and the population of the metropolitan areas of all States; "(ii) the extent of poverty in the metropolitan areas in that State and the extent of poverty in the metropolitan areas of all States; and "(iii) the extent of housing overcrowding in the metropolitan areas in that State and the extent of housing over crowding in the metropolitan areas of all States; or

"(B) the average of the ratios between--,

"(i) the age of housing in the metropolitan areas in that State and the age of housing in the metropolitan areas of all States; "(ii) the extent of poverty in the metropolitan areas in that State and the extent of poverty in the metropolitan areas of all States; and "(iii) the population of the metropolitan areas in that State and the population of the metropolitan areas of all States.

In determining the average of the ratios under subparagraph (A), the ratio involving the extent of poverty shall be counted twice and each of the other ratios shall be counted once; and in determining the average of the ratios under subparagraph (B), the ratio involving the age of housing shall be counted two and one-half times, the ratio involving the extent of poverty shall be counted one and one-half times, and the ratio involving population shall be counted once. The Secretary shall, in order to compensate for the discrepancy between the total of the amounts to be allocated under this paragraph and the total of the amounts available under such paragraph, make a pro rata reduction of each amount allocated to the metropolitan areas in each State under such paragraph so that the metropolitan areas in each State will receive an amount which represents the same percentage of the total amount available under such paragraph as the percentage which the metropolitan areas of the same State would have received under such paragraph if the total amount available under that paragraph had equaled the total amount which was allocated under that paragraph.

"(3) If the Secretary approves a grant under paragraph (2) to a unit of general local government which has a comprehensive community development program with provision for lower-income housing, the Secretary may make a multiyear commitment, up to three years, to any such unit of general local government for specified grant amounts, subject to the availability of appropriations. In determining whether to make such a commitment to a unit of general local government, the Secretary shall give special consideration to those communities presently carrying out comprehensive community development programs, which are subject to the provisions of subsection (h) (2), before making new commitments. In making grants under paragraph (2), the Secretary shall establish for each participating unit of general local government an annual grant at an amount meaningful to the size of the unit and the program identified, and shall consider such factors as the unit's engaging in economic redevelopment activities, past performance of the unit in community development activities, prior and present funding levels under this title, the function of the unit as a regional center of economic development and activity, impact on the unit's growth of national policy or direct Federal program decisions, the potential for having increased employment within such unit as a result of community development activity, the physical and economic deterioration within the unit, the age of housing stock and the extent of poverty within the unit, the extent to which the unit's activity or program of activities is necessary to alleviate a serious threat to health or safety, the capacity of the unit to carry out such programs, and any other factors deemed, by the Secretary, to be relevant to carrying out the purposes of this title. The Secretary shall make grants under paragraph (2) in such a manner as to insure that a reasonable proportion of grants is available to applicants which are not seeking funding for comprehensive community development programs. The Secretary may accept and approve commitments for annual grants based on comprehensive community development programs commencing in future fiscal years subject only to the availability of appropriations. In computing amounts under paragraph (2), there shall be excluded metropolitan cities, urban counties, Indian tribes, and units of general local government which are entitled to hold-harmless grants pursuant to subsection (h).".

(f) Section 106 (e) of such Act is amended--,

(1) by striking out "during such program period" in the first sentence and inserting in lieu thereof "within a reasonable time"; and

(2) by striking out "during the same period" in the first sentence.

(g) Section 106 (f) of such Act is amended--,

(1) by striking out paragraph (1) and inserting in lieu thereof the following:

"(f)(1) Of the amount approved in an appropriation Act under section 103(a) for grants in any year (excluding the amount provided for use in accordance with sections 103(a)(2) and 107), 20 per centum shall be allocated by the Secretary--,

"(A) first, for grants to units of general local government outside of metropolitan areas to meet their hold-harmless needs as determined under subsection (h); and

"(B) second, any portion of such amount which remains after applying the provisions of subparagraph (A) shall be utilized by the Secretary for grants to units of general local government outside of metropolitan areas and States for use outside the metropolitan areas, allocating for the nonmetropolitan areas of each State the greater of an amount that bears the same ratio to the allocation for such areas of all States available under this subparagraph as either--,

"(i) the average of the ratios between--, "(i) the population of the nonmetropolitan areas in that State and the population of the nonmetroplitan areas of all States; "(ii) the extent of poverty in the nonmetropolitan areas in that State and the extent of poverty in the nonmetropolitan areas of all States; and "(iii) the extent of housing overcrowding in the nonmetropolitan areas in that State and the extent of housing overcrowding in the nonmetropolitan areas of all States; or "(ii) the average of the ratios between--, "(i) the age of housing in the nonmetropolitan areas in that State and the age of housing in the nonmetropolitan areas of all States; "(ii) the extent of poverty in the nonmetropolitan areas in that State and the extent of poverty in the nonmetropolitan areas of all States; and "(iii) the population of the nonmetropolitan areas in that State and the population of the nonmetropolitan areas of all States.

In determining the average of the ratios under clause (i) of subparagraph (B) the ratio involving the extent of poverty shall be counted twice and each of the other ratios shall be counted once; and in determining the average of the ratios under clause (ii) of subparagraph (B), the ratio involving the age of housing shall be counted two and one-half times, the ratio involving the extent of poverty shall be counted one and one-half times, and the ratio involving population shall be counted once. The Secretary shall, in order to compensate for the discrepancy between the total of the amounts to be allocated under subparagraph (B) and the total of the amounts available under such subparagraph, make a pro rata reduction of each amount allocated to the nonmetropolitan areas in each State under such subparagraph so that the nonmetropolitan areas in each State will receive an amount which represents the same percentage of the total amount available under such subparagraph as the percentage which the nonmetropolitan areas of the same State would have received under such subparagraph if the total amount available under such subparagraph had equaled the total amount which was allocated under such subparagraph.

"(2) If the Secretary approves a grant under paragraph (1)(B) to a unit of general local government which has a comprehensive community development program with provision for lower-income housing, the Secretary may make a multiyear commitment, up to three years, to any such unit of general local government for specified grant amounts, subject to the availability of appropriations. In determining whether to make such a commitment to a unit of general local government, the Secretary shall give special consideration to those communities presently carrying out comprehensive community development programs, which are subject to the provisions of subsection (h)(2), before making new commitments. In making grants under paragraph (1)(B), the Secretary shall establish for each participating unit of general local government an annual grant at an amount meaningful to the size of the unit and the program identified, and shall consider such factors as the unit's engaging in economic redevelopment activities, past performance of the unit in community development activities, prior and present funding levels under this title, the function of the unit as a regional center of economic development and activity, impact on the unit's growth of national policy or direct Federal program decisions, the potential for having increased employment within such unit as a result of community development activity, the physical and economic deterioration within the unit, the age of housing stock and the extent of poverty within the unit, the extent to which the unit's activity or program activities is necessary to alleviate a serious threat to health or safety, the capacity of the unit to carry out such programs, and any other factors deemed, by the Secretary, to be relevant to carrying out the purposes of this title. The Secretary shall make grants under paragraph (1)(B) in such a manner as to insure that a reasonable proportion of grants is available to applicants which are not seeking funding for comprehensive community development programs. The Secretary may accept and approve commitments for annual grants based on comprehensive community development programs commencing in future fiscal years subject only to the availability of appropriations. In computing amounts under paragraph (1)(B), three shall be excluded units of general local government which are entitled to hold-harmless grants pursuant to subsection (h) and Indian tribes.";

(2) by redesignating paragraph (2) as paragraph (3);

(3) by striking out "during such period" in paragraph (3), as redesignated, and inserting in lieu thereof "within a reasonable time"; and

(4) by striking "during the same period" in such paragraph. (h) Section 106(g)(2) of such Act is amended--,

(1) by striking out "(b) (2) or (3)" and inserting in lieu thereof "(b) (1) (A) or (B), or (2) (A) or (B)"; and

(2) by inserting", as computed under subsection (b) (1) (A) or (B), or (2) (A) or (B)," immediately before "shall" in clauses (i) and (ii).

(i) Section 106(i) of such Act is amended--,

(1) by striking out "population, poverty, and housing overcrowding";

(2) by striking out "receive" and inserting in lieu thereof "are entitled to"; and

(3) by striking out "(b)(5)" and inserting in lieu thereof "(b)(4)".

(j) Section 106(j) of such Act is amended--,

(1) by striking out "not later than thirty days prior to the beginning of any program period" in the first sentence and inserting in lieu thereof "by such date as the Secretary shall determine";

(2) by inserting "for a hold-harmless grant for a single year" after "eligibility" in the first sentence; and

(3) by striking out "(b)(5)" in the second sentence and inserting in lieu thereof "(b)(4)".

(k) Section 106(1) of such Act is amended to read as follows:

"(1) Not later than September 30, 1978, the Secretary shall report to the Congress with respect to the adequacy, effectiveness, and equity of the formula used for allocation of funds under this title, with specific analysis and recommendation as to the feasibility of utilizing factors of impaction (such as adjusted age of housing and extent of poverty) as a measurement consideration, and the feasibility of utilizing a single formula based on the current factors or others, including regional or area differences in income and cost of living. As used in this subsection, the term 'impaction' means the intensity, measured in terms of absolute numbers and proportions of each needs factor.".

(1) Section 106 of such Act is amended by adding the following new subsection at the end thereof:

"(m) In the event that the total amount available for distribution under this section in fiscal year 1978 or fiscal year 1979 is insufficient to meet all basic grant and hold-harmless entitlement needs as provided pursuant to this section, and funds are not otherwise appropriated to meet such deficiency, the Secretary shall meet the deficiency through a pro rata reduction of (1) all basic grant and hold-harmless entitlement amounts, and (2) funds available under section 106 (d) (2) (including amounts provided for use under section 103(a)(2) and section 106(f)(1)(B).".

DISCRETIONARY FUND

Sec. 107. Section 107 of the Housing and Community Development Act of 1974 // 42 USC 5307 // is amended--,

(1) by striking out "and 1977," in subsection (a) and inserting in lieu thereof "1977, 1978, 1979, and 1980,";

(2) by striking out "2 per centum" in subsection (a) and inserting in lieu thereof "3 per centum";

(3) by striking out "and units of general local government" in subsection (a)(5) and inserting in lieu thereof", units of general local government, and Indian tribes";

(4) by striking out "and" at the end of subsection (a)(5); by striking out the period at the end of subsection (a)(6) and inserting in lieu thereof a semicolon, and by adding the following after subsection (a)(6);

"(7) to Indian tribes; and

"(8) to States, units of general local government, Indian tribes, or areawide planning organizations for the purpose of providing technical assistance in planning, developing, and administering assistance under this title. The Secretary may also provide such technical assistance under this paragraph directly or through contracts.";

(5) by striking out "one-fourth" in subsection (b) and inserting in lieu thereof "15 per centum"; and

(6) by adding the following new subsection at the end

thereof:

"(d) No grant may be made to an Indian tribe unless the applicant provides satisfactory assurances that its program will be conducted and administered in conformity with title II of Public Law 90-284. // 25 USC 1301. // The Secretary may waive, in connection with such grants, the provisions of section 109 and section 110."

GUARANTEE OF LOANS FOR ACQUISITION OF PROPERTY

Sec. 108. // 42 USC 5308. // Section 108 of the Housing and Community Development Act of 1974 is amended--,

(1) by striking out subsections (a) and (b);

(2) by redesignating subsections (c), (d), (e), (f), and (g) as subsections (f), (g), (h), (i), and (j), respectively;

(3) by inserting before subsection (f), as redesignated, the following:

"(a) The Secretary is authorized, upon such terms and conditions as the Secretary may prescribe, to guarantee and make commitments to guarantee the notes or other obligations issued by units of general local government, or by public agencies designated by such units of general local government, for the purposes of financing acquisition of real property or the rehabilitation of real property owned by the unit of general local government (including such related expenses as the Secretary may permit by regulation). Notes or other obligations guaranteed pursuant to this section shall be in such form and denominations, have such maturities and subject to such conditions as may be prescribed by regulations issued by the Secretary.

"(b) No guarantee or commitment to guarantee shall be made with respect to any note or other obligation if the issuer's total outstanding notes or obligations guaranteed under this section would thereby exceed an amount equal to three times the amount of the grant approval for the issuer pursuant to section 106.

"(c) Notwithstanding any other provision of this title, grants allocated to an issuer pursuant to this title (including program income derived therefrom) are authorized for use in the payment of principal and interest due (including such servicing, underwriting, or other costs as may be specified in regulations of the Secretary) on the notes or other obligations guaranteed pursuant to this section.

"(d) To assure the repayment of notes or other obligations and charges incurred under this section and as a condition for receiving such guarantees, the Secretary shall require the issuer to--,

"(1) enter into a contract, in a form acceptable to the

Secretary,

for repayment of notes or other obligations guaranteed hereunder;

"(2) pledge any grant approved or for which the issuer may become eligible under this title; and

"(3) furnish, at the discretion of the Secretary, such other security as may be deemed appropriate by the Secretary in making such guarantees, including increments in local tax receipts generated by the activities assisted under this title or dispositions proceeds from the sale of land or rehabilitated property.

"(e) The Secretary is authorized, notwithstanding any other provision of this title, to apply grants pledged pursuant to subsection (d)(2) to any repayments due the United States as a result of such guarantees.";

(4) by striking out, in the first sentence of subsection (h), as redesignated, the following: "may, at the option of the issuing unit of general local government or designated agency," and inserting in lieu thereof "shall";

(5) by striking out, in the second sentence of subsection (h), as redesignated, the following: " In the event that taxable obligations are issued and guaranteed, the Secretary is authorized to make, and to contract to make, grants" and inserting in lieu thereof " The Secretary is authorized to make, and to contract to make, grants, in such amounts as may be approved in appropriations Acts,";

(6) by striking out "such unit or agency has elected to issue as a taxable obligation pursuant to subsection (e) of" in subsection (j), as redesignated, and inserting in lieu thereof "is guaranteed pursuant to"; and

(7) by adding at the end thereof the following:

"(k) Notwithstanding any other provision of this section, the total amount of outstanding obligations guaranteed on a cumulative basis by the Secretary pursuant to subsection (a) shall not any time exceed $3,500,000,000 or such higher amount as may be authorized to be appropriated for sections 106 and 107 for any fiscal year.".

REPORTING REQUIREMENTS

Sec. 109. Section 113 (a) of the Housing and Community Development Act of 1974 // 42 USC 5313. // is amended--,

(1) by striking out "and" at the end of paragraph (1).

(2) by striking out the period at the end of paragraph (2) and inserting in lieu thereof:"; and"; and

(3) by adding the following new paragraph after paragraph (2):

"(3) with respect to the action grants authorized under section 119, a listing of each unit of general local government receiving funds and the amount of such grants, as well as a brief summary of the projects funded for each such unit, the extent of financial participation by other public or private entities, and the impact on employment and economic activity of such projects during the previous fiscal year.".

URBAN DEVELOPMENT ACTION GRANTS

Sec. 110. (a) Section 104(a) of the Housing and Community Development Act of 1974 // 42 USC 5304. // is amended by inserting "or section 119" after "106".

(b) Title i of such Act is amended by adding the following new section at the end thereof:

"URBAN DEVELOPMENT ACTION GRANTS

" Sec. 119. // 42 USC 5318. // (a) In order to promote the primary objective of this title of the development of viable urban communities, of the total amount of authority approved in appropriation Acts under section 103 (c), the Secretary is authorized to make urban development action grants to severely distressed cities and urban counties to help alleviate physical and economic deterioration through reclamation of neighborhoods having excessive housing abandonment or deterioration, and through community revitalization in areas with population outmigration or a stagnating or declining tax base. Grants made under this section shall be for the support of severely distressed cities and urban counties that require increased public and private assistance in addition to the assistance otherwise made available under this title and other forms of Federal assistance.

"(b) Urban development action grants shall be made only to cities and urban counties that have, in the determination of the Secretary, demonstrated results in providing housing for persons of low- and moderate-income and in providing equal opportunity in housing and employment for low- and moderate-income persons and members of minority groups. The Secretary shall issue regulations establishing criteria in accordance with the preceding sentence and setting forth minimum standards for determining the level of physical and economic distress of cities and urban counties for eligibility for such grants, which standards shall take into account factors such as the age and condition of housing stock, including residential abandonment; average income; population outmigration; and stagnating or declining tax base.

"(c) Applications for assistance under this section shall--,

"(1) include documentation of eligibility for grants in accordance with the standards described in subsection (b);

"(2) describe a concentrated urban development action program setting forth a comprehensive action plan and strategy to alleviate physical and economic distress through systematic change, which program shall be consistent with the community development program described in section 104(a)(2) and the housing assistance plan described in section 104(a)(4), and, where it exists and is in effect, the overall economic development plan as provided for in section 202 (b)(10) of the Public Works and Economic Development Act of 1965,

// 42 USC 3142. //

but only in the event and after such time as such plans are required by law or administrative action to be consistent with community development programs. Such program shall be developed as to take advantage of unique opportunities to attract private investment, stimulate investment in restoration of deteriorated or abandoned housing stock, or solve critical problems resulting from population outmigration or a stagnating or declining tax base;

"(3) include the activities to be undertaken in the urban development action program, together with the estimated costs and general locations of such activities;

"(4) indicate public and private resources which are expected to be made available toward achieving the action plan and strategy described in paragraph (2); and

"(5) provide satisfactory assurances that, prior to submission of its application, it has (A) prepared and followed a written citizen participation plan, which plan provides the opportunity for citizens to participate in the development of the application, with special attention to measures to encourage the statement of views and the submission of proposals by low- and moderate-income people and residents of blighted neighborhoods, and to scheduling hearings at times and locations which are convenient to all citizens, (B) provided citizens with adequate information concerning the amount of funds available for proposed activities under this section, the range of activities that may be undertaken, and other important program requirements, and (C) held public hearings to obtain the views of citizens on needs which may be dealt with under this section.

"(d) To the extent that the application requirements of section 104( a)(4) have been satisfied in connection with a grant made pursuant to section 106, such requirements shall be determined to have been met for purposes of this section.

"(e) In establishing criteria for the purpose of making grants under this section the Secretary shall establish selection criteria which must include (1) as the primary criterion, the comparative degree of physical and economic distress among applicants, as measured (in the case of a metropolitan city or urban county) by the differences in the extent of growth lag, the extent of poverty, and the adjusted age of housing in the metropolitan city or urban county; (2) other factors determined to be relevant by the Secretary in assessing the comparative degree of physical and economic deterioration in cities and urban counties; and (3) at least the following other criteria: demonstrated performance of the city or urban county in housing and community development programs; impact of the proposed urban development action program on the special problems of low- and moderate-income persons and minorities; extent of financial participation by other public or by private entities; extent of assistance to be made available by the State; impact on the physical, fiscal, or economic deterioration of the city or urban county; extent to which the program describes activities representing a special or unique opportunity to meet local priority needs or the objectives of this title; and feasibility of accomplishing the program in a timely fashion within the grant amount available.

"(f) In addition to activities authorized under section 105(a), an urban development action program may also include such additional community development and neighborhood development and conservation activities as the Secretary may determine to be consistent with the purposes of this section.

"(g) No assistance shall be provided for business loans or industrial development under this section unless the Secretary shall first consult with and coordinate such assistance with other Federal agencies which make available funds for similar activities.

"(h) The Secretary shall, at least on an annual basis, make reviews and audits of recipients of grants pursuant to this section as necessary to determine the progress made in carrying out activities substantially in accordance with approved plans and timetables. The Secretary may adjust, reduce, or withdraw grant funds, or take other action as appropriate in accordance with the findings of such review and audits, except that funds already expended on eligible activities under this title shall not be recaptured or deducted from future grants made to the recipient.

"(i) No assistance may be provided under this section for projects intended to facilitate the relocation of industrial or commercial plants or facilities from one area to another, unless the Secretary finds that such relocation does not significantly and adversely affect the unemployment or economic base of the area from which such industrial or commercial plant or facility is to be relocated.

"(j) The Secretary shall allocate the amounts available for grants under this section in a manner which achieves a reasonable balance among programs that are designed primarily (1) to restore seriously deteriorated neighborhoods, (2) to reclaim for industrial purposes underutilized real property, and (3) to renew commercial employment centers.

"(k) Not less than 25 per centum of the funds made available for grants under this section shall be used for cities under fifty thousand population which are not central cities of a standard metropolitan statistical area.".

REHABILITATION LOANS

Sec. 111. (a) Section 312(c) (4) (A) of the Housing Act of 1964 // 42 USC 1452b. // is amended--,

(1) by striking out "the amount of a loan which could be insured by the Secretary of Housing and Urban Development under section 220(h) of the National Housing Act" and inserting in lieu thereof "$27,000 per dwelling unit"; and

(2) by striking out "under such section".

(b) Section 312(d) of such Act is amended by striking out "and not to exceed $100,000,000 for the fiscal year beginning on October 1, 1976" and inserting in lieu thereof "not to exceed $100,000,000 for the fiscal year beginning on October 1, 1976, and not to exceed $60,000,000 for the fiscal year beginning on October 1, 1977".

(c) Section 312(h) of such Act is amended by striking out "1977" each place it appears and inserting in lieu thereof "1979".

COMPREHENSIVE PLANNING

Sec. 112. The second sentence of section 701(e) of the Housing Act of 1954 // 40 USC 461. // is amended by striking "and not to exceed $100,000,000 for the fiscal year 1977" and inserting in lieu thereof "not to exceed $100,000,000 for the fiscal year 1977, and not to exceed $75,000,000 for the fiscal year 1978".

STUDY ON SMALL CITIES

Sec. 113. // 42 USC 5313. // The Secretary of Housing and Urban Development shall conduct a study and, not later than one year after the date of enactment of this Act, report to the President and to the Congress recommendations on the formation of a national policy on the developmental needs of small cities. In carrying out such study, the Secretary shall (1) take steps to improve the data available about small cities, (2) suggest means of reducing the duplication in government programs in jurisdictions which affect small cities, and (3) consider all of the relevant differences and similarities between small and large cities, particularly in the area of housing, growth, development patterns, infrastructure, education, energy needs, and social development. In addition, the Secretary shall include in the report alternative verifiable formulae to be used in the distribution of discretionary balance funds available for allocation to small cities under title I of the Housing and Community Development Act of 1974.

EFFECTIVE DATE

Sec. 114. The amendments made by this title // 42 USC 5301 // shall become effective October 1, 1977.

TITLE II- HOUSING ASSISTANCE AND RELATED PROGRAMS LOW- INCOME HOUSING

Sec. 201. (a) The first sentence of section 5(c) of the United States Housing Act of 1937, // 42 USC 1437. // is amended--,

(1) by striking out "and" immediately following " July 1, 1975," the first time it appears; and

(2) by inserting immediately after "on October 1, 1976," the following: "and by $1,159,995,000 on October 1, 1977,".

(b) Section 5(c) of such Act is amended by inserting after the third sentence the following: " Of the additional authority to enter into contracts for annual contributions provided on October 1, 1977, and approved in appropriation, Acts the Secretary shall make available not less than $42,500,000 for modernization of low-income housing projects, not less than $197,139,200 for low-income housing projects permanently financed by loans from State housing finance or State development agencies, as defined in section 802(b)(2)(A) of the Housing and Community Development Act of 1974, // 42 USC 1440. // and not less than $120,000,000 for low-income housing projects permanently financed by loans pursuant to section 202 of the Housing Act of 1959."

(c) Section 8(c)(1) of such Act // 42 USC 1437f. // is amended by adding the following new sentence at the end thereof: " Notwithstanding any other provision of this section, after the date of enactment of the Housing and Community Development Act of 1977, the Secretary shall prohibit high-rise elevator projects for families with children unless there is no practical alternative.".

(d) Section 8(c)(4) of such Act is amended by striking out the following: "(i) if the unoccupied unit is in a project insured under the National Housing Act, except pursuant to section 244 of such Act, or (ii)".

(e)(1) Section 8(d) of such Act is amended by adding the following new paragraph at the end thereof:

"(3) Notwithstanding any other provision of law, with the approval of the Secretary the public housing agency administering a contract under this section with respect to existing housing units may exercise all management and maintenance responsibilities with respect to those units pursuant to a contract between such agency and the owner of such units.".

(2) Section 8(e)(2) of such Act // 42 USC 1437e. // is amended by adding the following new sentence at the end thereof: " In approving any public housing agency to assume all the management and maintenance responsibilities of any dwelling unit under the preceding sentence, the Secretary may do so without regard to whether such agency administers the housing assistance payment contract for that unit.".

(f) Section 9(c) of such Act // 42 USC 1437g. // is amended--,

(1) by striking out "and" immediately following "on or after July 1, 1976,"; and

(2) by inserting immediately before the period at the end thereof the following:", and not to exceed $685,000,000 on or after October 1, 1977".

(g) The Secretary of Housing and Urban Development shall conduct a study of payments in lieu of taxes made under section 6(d) of the United States Housing Act of 1937 // 42 USC 1437d. // and report to the Congress on the status and adequacy of such payments not later than twelve months after the date of enactment of this section.

(h) Section 208 of the Housing and Community Development Act of 1974 // 42 USC 1421b. // is amended by inserting", including the right to renewal of such lease to the maximum term permitted by law," after " United States Housing Act of 1937".

SECTION 202 HOUSING FOR THE ELDERLY

Sec. 202. (a) Section 202(d) (3) of the Housing Act of 1959 // 12 USC 1701. // is amended by inserting the following before the period at the end thereof:", which cost shall be determined without regard to mortgage limits applicable to housing projects subject to mortgages insured under section 231 of the National Housing Act.". // 12 USC 1715v. //

(b) Section 202 of such Act is amended by adding at the end thereof the following new subsection:

"(g) In carrying out the provisions of this section and section 8 of the United States Housing Act of 1937, the Secretary shall issue and implement regulations, as soon as practicable after the date of enactment of Housing and Community Development Act of 1977, which shall provide that the processing of any application for a loan for a project under this section and the processing of any application for assistance under such section 8 with respect to housing units in the same such project shall be coordinated in an economical and efficient manner.".

URBAN HOMESTEADING DEMONSTRATION

Sec. 203. Section 810(g) of the Housing and Community Development Act of 1974 // 12 USC 1706e // is amended by striking out "and not to exceed $5,000,000 for the fiscal year 1978" and inserting in lieu thereof "and not to exceed $15,000,000 for the fiscal year 1978".

RESEARCH AUTHORIZATION

Sec. 204. The second sentence of section 501 of the Housing and Urban Development Act of 1970 // 12 USC 1701z // is amended by inserting before the period at the end thereof the following:", and not to exceed $60,000,000 for the fiscal year 1978".

SECTION 235 ASSISTANCE FOR COOPERATIVES

Sec. 205. Section 235(b)(2) (A) of the National Housing Act // 12 USC 1715. // is amended by inserting "or section 221(d)(3)" immediately after "financed with a mortgage insured under section 213".

SECTION 236 OPERATING Subsidies

Sec. 206. (a) Section 236(f)(3) of the National Housing Act // 12 USC 1715z // is amended by striking out the second and third sentences and inserting in lieu thereof the following: " The Secretary is authorized to make, and shall contract to make to the extent of the moneys in the reserve fund established under subsection (g) and to the further extent of funds authorized in appropriation Acts, an additional monthly assistance payment to the project owner up to the amount by which the sum of the cost of utilities and local property taxes exceeds the initial operating expense level. Such payment shall be used by the project owner solely to effect, and there shall be, a reduction in the basic rental charges established for the project. Any contract to make additional monthly assistance payments shall be for a one-year period and shall be adjusted periodically to provide, to the extent approved in appropriation Acts, for continuation of the payments and for an appropriate adjustment in the amount of the assistance payments.".

(b) Section 236(f)(3) of such Act is further amended by striking out "only if the Secretary finds that the increase in the cost of utilities or local property taxes is reasonable and is" in the last sentence and inserting in lieu thereof "unless the Secretary finds that the increase in the cost of utilities or local property taxes is not reasonable or not".

(c) Section 236(g) of such Act is amended by striking out "1974" in the fourth sentence and inserting in lieu thereof "1977".

(d) The amendments made by this section // 12 USC 1715. // shall become effective on October 1, 1977, and shall apply to assistance payments pursuant to section 236(f)(3) of the National Housing Act with respect only to periods commencing on or after such date.

HOUSING ASSISTANCE PLANS

Sec. 207. Section 2133(d)(1) of the Housing and Community development Act of 1974 // 42 USC 1439. // is amended by inserting after the first sentence the following new sentence: "the Secretary shall assure, to the maximum extent practicable in carrying out the national housing and community development objectives, that funds available for each housing assistance program referred to in subsection (a) shall be allocated or reserved in accordance with goals described in local, State, or other housing assistance plans approved by the Secretary pursuant to section 104, and shall be utilized to meet needs reflected in data referred to in the preceding sentence.".

NEW COMMUNITIES

Sec. 208. Section 720(a) of the Housing and Urban Development Act of 1970 // 42 USC 4521 // is amended by striking out " October 1, 1977" and inserting in lieu thereof " October 1, 1978".

TREASURY DRAW AUTHORITY

Sec. 209. Section 14(b) of the Federal Reserve Act // 12 USC 355 // is amended by striking out " November 1, 1978" and inserting in lieu thereof " October 1, 1977"; and by striking out " October 31, 1978" and inserting in lieu thereof " September 30, 1977".

TITLE III-- FEDERAL HOUSING ADMINISTRATION MORTGAGE INSURANCE AND RELATED PROGRAMS EXTENSION OF FEDERAL HOUSING ADMINISTRATION MORTGAGE INSURANCE PROGRAMS

Sec. 301. (a) Section 2(a) of the National Housing Act // 12 USC 1703. // is amended by striking out " October 1, 1977" in the first sentence and inserting in lieu thereof " October 1, 1978".

(b) Section 217 of such Act // 12 USC 1715h. // is amended by striking out " September 30, 1977" and inserting in lieu thereof " September 30, 1978".

(c) Section 221(f) of such Act // 12 USC 1715i. // is amended by striking out " September 30, 1977" in the fifth sentence and inserting in lieu thereof " September 30, 1978".

(d) Section 235(m) of such Act // 12 USC 1715z. // is amended by striking out " September 30, 1977" and inserting in lieu thereof " September 30, 1978".

(e) Section 236(n) of such Act // 12 USC 1715z. // is amended by striking out " September 30, 1977" and inserting in lieu thereof " September 30, 1978".

(f) Section 244(d) of such Act // 12 USC 1715z-9 // is amended--,

(1) by striking out " September 30, 1977" in the first sentence and inserting in lieu thereof " September 30, 1978"; and

(2) by striking out " October 1, 1977" in the second sentence and inserting in lieu thereof " October 1, 1978".

(g) Section 245 of such Act is amended by striking out " September 30, 1977" where it appears and inserting in lieu thereof " September 30, 1978".

(h) Section 809(f) of such Act // 12 USC 1749h- // is amended by striking out " September 30, 1977" in the second sentence and inserting in lieu thereof " September 30, 1978".

(i) Section 810(k) of such Act // 12 USC 1748h- // is amended by striking out " September 30, 1977" in the second sentence and inserting in lieu thereof " September 30, 1978".

(j) Section 1002(a) of such Act // 12 USC 1749 // is amended by striking out " September 30, 1977" in the second sentence and inserting in lieu thereof " September 30, 1978".

(k) Section 1101(a) of such Act // 12 USC 1749. // is amended by striking out " September 30, 1977" in the second sentence and inserting in lieu thereof " September 30, 1978".

EXTENSION OF FLEXIBLE INTEREST RATE AUTHORITY

Sec. 302. Section 3(a) of the Act // 12 USC 1709- // entitled " An Act to amend chapter 37 of title 38 of the United States Code with respect to the veterans' home loan program, to amend the National Housing Act with respect to interest rates on insured mortgages, and for other purposes", approved May 7, 1968, as amended (12 U.S.C. 1709-1), is amended by striking out " October 1, 1977" and inserting in lieu thereof " October 1, 1978".

INCREASE IN MAXIMUM MORTGAGE AMOUNTS UNDER FEDERAL HOUSING ADMINISTRATION MORTGAGE INSURANCE PROGRAMS

Sec. 303. (a) Section 203(b)(2) of the National Housing Act // 12 USC 1709. // is amended by striking out " 5,000", "$48,750", and "$56,000" wherever they appear and inserting in lieu thereof, "$60,000", "$65,000", and "$75,000", respectively.

(b) Section 220(d)(3)(a) of such Act // 12 USC 1715k. // is amended by striking out "$45,000", "$48,750", and "$56,000" wherever they appear and inserting in lieu thereof "$60,000", "65,000", and "$75,000", respectively.

(c) Section 221(d)(2)(A) of such Act // 12 USC 1715i. // is amended by--,

(1) striking out "$25,000", "$29,000", and "$33,000" each place they appear and inserting in lieu thereof "$31,000", "$36,000", and "$42,000", respectively; and

(2) striking out "$28,000", "$38,880", "$47,520", "$36,000", "$46,080", and "$54,720", and inserting in lieu thereof "$35,000", "$48,600", "$59,400", "$45,000", "$57,600", and "$68,400", respectively.

(d) Section 222(b)(2) of such Act // 12 USC 1715m. // is amended by striking out "$45,000" and inserting in lieu thereof "$60,000".

(e) Clause (A) of the third sentence of section 234(c) of such Act is amended by striking out "$45,000" and inserting in lieu thereof "$60,000".

(f) Section 235 of such Act // 12 USC 1715z. // is amended--,

(1) by striking out, in the last proviso in subsection (b)(2), "$25,000", "$29,000", "$29,000", and "$33,000", and inserting in lieu thereof "$32,000", "$38,000", "$38,000", and "$44,000", respectively;

(2) by striking out, in subsection (i)(3)(B) "$25,000", "$29,000", "$29,000", and "$33,000", and inserting in lieu thereof "$32,000", "$38,000", "$38,000", and "$44,000", respectively;

(3) by striking out "and" at the end of subparagraph (B) of subsection (i)(3);

(4) by redesignating subparagraph (C) of subsection (i)(3) as subparagraph (E) and inserting immediately following

subparagraph (B) the following new subparagraph:

"(C) involve, in the case of a dwelling unit other than a condominium or cooperative unit, a principal obligation including such initial service charges, appraisal, inspection, and other fees as the Secretary shall approve) in an amount not to exceed $32,000 ($38,000 in any geographical area where the Seretary authorizes an increase on the basis of a finding that cost levels so require), except that with respect to any family with five or more persons the foregoing limits shall be $38,000 and $44,000, respectively; "(D) involve, in the case of a two-family dwelling, a principal obligation (including such initial service charges. appraisal, inspection, and other fees as the

Secretary shall approve) in an amount not to exceed

$44,000 ($49,000 in any geographical area where the

Secretary authorizes an increase on the basis of a

finding that cost levels so require); and"; and

(5) by adding the following new subsection at the end

thereof:

"(n) No mortgage may be insured under this section on a unit in a subdivision, after the effective date of enactment of this subsection, which, when added to any other mortgages insured under this section in that subdivision after such date, represents more than 40 per centum of the total number of units in the subdivision, except that the preceding limitation shall not apply with regard to any rehabilitated unit, or to any unit or subdivision located or to be located in an established urban neighborhood or area, where a sound proposal is involved and where an aggregation of subsidized units is essential to a community sponsored overall redevelopment plan, as determined by the Secretary.".

(g) Section 203(i) of such Act // 12 USC 1709. // is amended by striking out "$16,200" and inserting in lieu thereof "75 per centum of the limit on the principal obligation applicable to a one-family residence under subsection (b) of this section".

DECREASE IN DOWNPAYMENT REQUIREMENTS

Sec. 304. (a) Section 203(b) (2) of the National Housing Act is amended--,

(1) by striking out, in clause (i) of the first sentence, all the parenthetical language which begins "(but, in any case";

(2) by striking out clauses (ii) and (iii) in the first and second sentences and inserting in lieu thereof in each sentence "and (ii) 95 per centum of such value in excess of $25,000."; and

(3) by inserting immediately after the second sentence the following: " Notwithstanding any other provision of this section, in any case where the dwelling is not approved for mortgage insurance prior to the beginning of construction, such mortgage shall not exceed 90 per centum of the entire appraised value of the property as of the date the mortgage is accepted for insurance, unless the dwelling was completed more than one year prior to the application for mortgage insurance, or the dwelling was approved for guaranty, insurance, or a direct loan under chapter 37 of title 38, United States Code,

// 38 USC 1801. //

prior to the beginning of construction.".

(b) Section 220(d)(3)(A)(i) of such Act // 12 USC 1715k. // is amended--,

(1) by striking out the comma at the end of clause (1) and all of clauses (2) and (3) in the matter preceding the first proviso and inserting in lieu thereof "and (2) 95 per centum of such value in excess of $25,000"; and

(2) by striking out in the second proviso the comma at the end of clause (1) and all of clauses (2) and (3) and inserting in lieu thereof "and (2) 95 per centum of such value in excess of "$25,000".

(c) Section 222(b)(3) of such Act // 12 USC 1715m // is amended by striking out clauses (ii) and (iii) and inserting in lieu thereof "and (ii) 95 per centum of such value in excess of $25,000;".

(d) The third sentence of section 234(c) of such Act // 12 USC 1715y // is amended by striking out clauses (A)(ii) and (A)(iii) and inserting in lieu thereof "and (ii) 95 per centum of such value in excess of $25,000,".

AUTHORITY TO INCREASE MORTGAGE INSURANCE PREMIUM FOR SECTION 203(n)

Sec. 305. Section 203(c) of the National Housing Act // 12 USC 1709. // is amended by inserting the following before the colon preceding the first proviso: " Provided, That premium charges fixed for insurance under subsection (n) is not required to be the same as the premium charges for mortgages insured under the other provisions of this section, but in no case shall premium charges under subsection (n) exceed 1 per centum per annum".

MAXIMUM MORTGAGE AMOUNT AND MATURITY UNDER TITLE I OF THE NATIONAL HOUSING ACT

Sec. 306. (a) The first sentence of section 2(b) of the National Housing Act // 12 USC 1703. // is amended--,

(1) by striking out "$10,000" the first time it appears in clause (1) and inserting in lieu thereof "$15,000"; and

(2) by striking out "twelve years" in clause (2) and inserting in lieu thereof "fifteen years".

(b) Section 2(b) of such Act is amended by striking out "$12,500 ($20,000" in clause (1) and inserting in lieu thereof "$16,000 ($24,000"; and by inserting the following before the semicolon at the end of the proviso in clause (2): "(twenty-three years and thirty -two days in the case of a mobile home composed of two or more modules)".

(c) Subparagraph (B) of the second paragraph of section 2(b) of such Act and subparagraph (B) of the third paragraph of such section 2(b) are each amended by striking out "twenty years" and inserting in lieu thereof in each case "twenty-three years".

(d) Section 2(b) of such Act is amended by adding at the end thereof the following new undesignated paragraph:

" Because of prevailing higher costs, the Secretary may, by regulation, in Alaska, Guam, or Hawaii, increase any dollar amount limitation on mobile homes or mobile home lot loans contained in this subsection by not to exceed 40 per centum.".

SECTION 203 INSURANCE IN CERTAIN COMMUNITIES

Sec. 307. Section 203 of the National Housing Act // 12 USC 1709 // is amended by--, adding at the end thereof the following:

"(o)(1) Notwithstanding any other provision of this section or any other section of this title, the Secretary is authorized to insure, and to commit to insure, under subsection (b) of this section as modified by this subsection a mortgage which meets both the requirements of this subsection and such criteria as the Secretary by regulation may prescribe to further the purpose of this subsection, in any community where the Secretary determines that--,

"(A) temporary adverse economic conditions exist throughout the community as a direct and primary result of outstanding claims to ownership of land in the community by an American Indian tribe, band, or Nation;

"(B) such ownership claims are reasonably likely to be settled, by court action or otherwise;

"(C) as a direct result of the community's temporarily impaired economic condition, owner occupants of homes in the community have been involuntarily unemployed or underemployed and have thus incurred substantial reductions in income which significantly impair their ability to continue timely payment of their mortgages;

"(D) as a result, widespread mortgage foreclosures and distress sales of homes are likely in the community; and

"(E) fifty or more individual homeowners were joined as parties defendant or were members of a defendant class prior to December 31, 1976, in litigation involving claims to ownership of land in the community by an American Indian tribe, band, or Nation.

"(2) A mortgage shall be eligible for insurance under subsection (b) of this section as modified by this subsection without regard to limitations in this title relating to a mortgagor's reasonable ability to pay, economic soundness, marketability of title, or any other statutory restriction which the Secretary determines is contrary to the purpose of this subsection, but only if the mortgagor is an owner occupant of a home in a community specified in paragraph (1) who, as a direct result of the community's temporarily impaired economic condition, has been involuntarily unemployed or underemployed and has thus incurred a substantial reduction in income which significantly impairs the owner's ability to continue timely payment of the mortgage. The Secretary is authorized to encourage or afford directly to or on behalf of mortgagors whose mortgages are insured under subsection (b) as modified by this subsection forebearance, assignment of mortgages to the Secretary, or such other relief as the Secretary deems appropriate and consistent with the purpose of this subsection. The Secretary, in connection with any mortgage insured under subsection (b) as modified by this subsection, shall have all statutory powers, authority, and responsibilities which the Secretary has with respect to other mortgages insured under subsection (b), except that the Secretary may modify such powers, authority, or responsibilities where the Secretary deems such action to be necessary because of the special nature of the mortgage involved. Notwithstanding section 202 of this title, // 12 USC 1708. // the insurance of a mortgage under subsection (b) of this section as modified by this subsection shall be the obligation of the Special Risk Insurance Fund created pursuant to section 238 of this title.". // 12 USC 1715z-3. //

MISCELLANEOUS MORTGAGE INSURANCE

Sec. 308. (a) Sections 232(d)(4) and 242(d)(4) of the National Housing Act // 12 USC 1715w, 1715z-7, // are amended by inserting "or section 1521" after "section 604(a)(1)".

(b) Section 242(c) of such Act // 12 USC 1715z-7. // is amended by adding the following sentence at the end thereof: " No mortgage insurance premium shall be charged with respect to the amount of principal and interest guaranteed by the Department of Health, Education, and Welfare under title VII of the Public Health Service ACT.". // 42 USC 292. //

MORTGAGE INSURANCE IN MILITARY IMPACTED AREAS

Sec. 309. Section 238(c) of the National Housing Act // 42 USC 1715z-3. // is amended to read as follows:

"(c)(1) Notwithstanding the provisions of this or any other Act, and without regard to limitations upon eligibility contained in any section of this title, the Secretary is authorized, upon application by the mortgagee, to insure under any section of this title a mortgage executed in connection with the construction, repair, rehabilitation, or purchase of property located near any installation of the Armed Forces of the United States in federally impacted areas in which the conditions are such that one or more of the eligibility requirements applicable to the section under which insurance is sought could not be met, if (A) the Secretary finds that the benefits to be derived from such use outweigh the risk of probable cost to the Government, and (B) the Secretary of Defense certifies that there is no intention inso-far as can reasonably be foreseen to curtail substantially the personnel assigned or to be assigned to such installation. The insurance of a mortgage pursuant to this subsection shall be the obligation of the Special Risk Insurance Fund.

"(2) The Secretary is authorized (A) to establish such premiums and other charges as may be necessary to assure that the mortgage insurance program pursuant to this subsection is made available on a basis which, in the Secretary's judgment, is designed to be actuarially sound and likely to maintain the fiscal integrity of such program, and (B) to prescribe such terms and conditions relating to insurance pursuant to this subsection as may be found by the Secretary to be necessary and appropriate, and which are to the maximum extent possible, consistent with provisions otherwise applicable to mortgage insurance and payment of insurance benefits.".

EXPERIMENTAL FINANCING

Sec. 310. (a) Section 245 of the National Housing Act // 12 USC 1715z-10. // is amended--,

(1) by striking out "on an experimental basis" in the first sentence;

(2) by striking out the second sentence and inserting in lieu thereof the following: " Nothwithstanding any other provision of this title the principal obligation (including all interest to be deferred and added to principal) of a mortgage insured pursuant to this section may not exceed 97 per centum of the appraised value of the property covered by the mortgage as of the date the mortgage is accepted for insurance, or if the mortgagor is a veteran and the mortgage is to be insured in accordance with the provisions of section 203 of this title,

// 12 USC 1709. //

such higher percentage of appraised value as is provided for purposes of determining the maximum mortgage amount eligible for insurance under section 203(b)(2) in the case of veterans."; and

(3) by adding at the end thereof the following new sentence: " Any mortgage or loan insured pursuant to this section which contains or sets forth any graduated mortgage provisions (including but not limited to provisions for adding deferred interest to principal) which are authorized under this section and applicable regulations, or which have been insured on the basis of their being so authorized, shall not be subject to any State constitution, statute, court decree, common law, or rule or public policy limiting the amount of interest which may be charged, taken, received, or reserved, or the manner of calculating such interest (including but not limited to prohibitions against the charging of interest on interest), if such statute, court decree, common law, or rule would not apply to the mortgage or loan in the absence of such graduated payment mortgage provisions.".

(b) The caption of section 245 of such Act // 12 USC 1709. // is amended to read as follows:

" GRADUATED PAYMENT MORTGAGES". TITLE IV- LENDING POWERS OF FEDERAL SAVINGS AND LOAN ASSOCIATIONS; SECONDARY MARKET

AUTHORITIES

CONSTRUCTION LOANS

Sec. 401. The twenty-first undesignated paragraph of section 5 (c) of the Home Owners' Loan Act of 1933 // 12 USC 1464. // is amended by striking out "3 per centum" and inserting in lieu thereof "5 per centum".

SINGLE FAMILY DWELLING LIMITATIONS

Sec. 402. The first undesignated paragraph of section 5(c) of the Home Owners' Loan Act of 1933 // 12 USC 1464 // is amended by striking out "$55,000" and inserting in lieu thereof "$60,000", and by inserting "but of said 20 per centum the amount deemed to be loaned in transactions which, except for excess in amount, would be eligible for such association under provisions of this sentence (other than this exception) or under the next following sentence shall be only the outstanding amount of such excess," immediately after "improved real estate without regard to the foregoing limitations,".

LENDING AUTHORITY

Sec. 403. The twenty-second undesignated paragraph of section 5 (c) of the Home Owners' Loan Act of 1933 is amended by inserting "or farm" immediately after "residential".

PROPERTY IMPROVEMENT LOANS

Sec. 404. The second and third undesignated paragraphs of section 5(c) of the Home Owners' Loan Act of 1933 are amended by striking out "$10,000" and inserting in lieu thereof "$15,000".

MULTIFAMILY DWELLING LIMITATIONS

Sec. 405. The first sentence of section 5(c) of the Home Owners' Loan Act of 1933 is amended by striking out", and the Board shall by regulation limit to not more than 20 per centum of the assets of the association the aggregate amount or amounts of the investments which may be made by an association under the foregoing provisions of this sentence on the security of property which comprises or includes more than four dwelling units or does not constitute homes or combinations of homes and business property".

CONFORMING AMENDMENT TO FEDERAL HOME LOAN BANK ACT

Sec. 406. Section 10(b) of the Federal Home Loan Bank Act // 12 USC 1430. // is amended by striking out "$55,000 (except that with respect to dwellings in Alaska, Guam, and Hawaii the foregoing limitations may, by regulation of the Board be increased by not to exceed 50 per centum)" and inserting in lieu thereof the following: "the dollar limitation under the first proviso of the first sentence of section 5( c) of the Home Owners' Loan Act of 1933, as amended,".

GOVERNMENT NATIONAL MORTGAGE ASSOCIATION HOME PURCHASE ASSISTANCE

Sec. 407. (a) Section 313(a)(1) of the National Housing Act // 12 USC 1723e. // is amended by adding at the end thereof the following: " To the extent feasible and consistent with the primary purpose of this section to stabilize housing production, the Secretary may direct the exercise of the authority conferred by this section to promote homeownership opportunities for moderate-income families.".

(b) Section 313(a) of such Act is amended by adding at the end thereof the following:

"(3) In carrying out the authority conferred by this section, the Secretary may require the Association to utilize a part of the authority to purchase mortgages under this section for the purchase of mortgages executed to finance the rehabilitation or acquisition and rehabilitation of housing in older or declining neighborhoods to the extent such action is feasible and consistent with the primary purpose of this section, and for the purpose of this paragraph, the Secretary is authorized to prescribe such regulations as may be appropriate.".

(c)(1) Section 313(b)(B) of such Act // 12 USC 1730f // is amended by inserting after "$42,000" the following: "($49,000 in the case of any property with respect to which assistance payments pursuant to section 8 of the United States Housing Act of 1937 // 42 USC 1437f // are being or will be made and which is located in any geographical area where the Secretary authorizes an increase on the basis of a finding that cost levels so require)"

(2) Section 313(b)(D) of such Act // 12 USC 1730f. // is amended by inserting after " Secretary" the following: "and $55,000 in the case of any property with respect to which assistance payments pursuant to section 8 of the United States Housing Act of 1937 // 42 USC 1437f // are being or will be made and which is located in any geographical area where the Secretary authorizes an increase on the basis of a finding that cost levels so require".

(d) Section 313(g) of such Act // 12 USC 1730f. // is amended by adding at the end thereof the following: " The Association's purchases and commitments under this section during fiscal year 1978 may not exceed $7,500,000,000.".

(e) Section 3(b) of the Emergency Home Purchase Assistance Act of 1974 // 12 USC 1723. // is amended by striking out " October 1, 1977" and inserting in lieu thereof " October 1, 1978".

LIMIT ON AMOUNT OF A CONVENTIONAL MORTGAGE WHICH MAY BE PURCHASED BY FEDERAL NATIONAL MORTGAGE ASSOCIATION OR FEDERAL HOME LOAN MORTGAGE CORPORATION

Sec. 408. (a) The last sentence of section 302(b) (2) of the National Housing Act // 12 USC 1717. 12 USC 1454. // is amended by inserting "by more than 25 per centum" after "exceed".

(b) The last sentence of section 305(a)(2) of the Federal Home Loan Mortgage Corporation Act // 12 USC 1720 // is amended by inserting "by more than 25 per centum" after "exceed".

(c) Section 309(h) of the National Housing Act // 12 USC 1723 // is amended by inserting at the end thereof the following: " Pursuant to the authority provided in this subsection, the Secretary shall conduct a review of the financial operations of the corporation and undertake a study of the extent to which the activities of the corporation meet the purposes of this title. Such review and study shall be completed and transmitted to the Congress on or before July 1, 1978.".

TITLE V-- RURAL HOUSING AUTHORIZATIONS

Sec. 501. (a) Section 513 of the Housing Act of 1949 // 42 USC 1483 // is amended--,

(1) by striking out " September 30, 1977" in clauses (b), (c), and (d), and inserting in lieu thereof " September 30, 1978"; and

(2) by striking out "$80,000,000" in clauses (b) and (c) and inserting in lieu thereof "$105,000,000".

(b) Section 515(b)(5) of such Act // 42 USC 1485 // is amended by striking out " September 30, 1977" and inserting in lieu thereof " September 30, 1978".

(c) Section 517(a)(1) of such Act // 42 USC 1487. // is amended by striking out " September 30, 1977" and inserting in lieu thereof " September 30, 1978".

(d) Section 523(f) of such Act // 42 USC 1490 // is amended--,

(1) by striking out " October 1, 1977" and inserting in lieu thereof " October 1, 1978"; and

(2) by striking out " September 30, 1977" and inserting in lieu thereof " September 30, 1978".

CHANGES IN THE GUARANTEED HOUSING LOAN PROGRAM

Sec. 502. (a) Section 502(b)(3) of the Housing Act of 1949 // 42 USC 1472 // is amended by inserting "except for guaranteed loans", after "(3)".

(b) Section 517(e) of such Act // 42 USC 1487 // is amended by inserting after the first sentence the following new sentence: " The guaranteed loan program under this title shall be operated separately from the insured loan program operated under this title and no funds designated for one program may be transferred to another program.".

(c) Section 517 of such Act is amended by adding the following new subsection at the end thereof:

"(n) Loans guaranteed under this section shall be made only to borrowers with above-moderate incomes.".

(d) Section 521(a)(1) of such Act // 42 USAC 1490a. // is amended by adding at the end thereof the following: " Any loan guaranteed under this title shall bear interest at such rate as may be agreed upon by the borrower and the lender.".

PREPAYMENT OF TAXES AND SIMILAR ITEMS BY FARMERS HOME ADMINISTRATION BORROWERS

Sec. 503. Section 501(e) of the Housing Act of 1949 // 42 USC 1471. // is amended by striking out the second sentence and inserting in lieu thereof the following: " Such payments shall be disbursed by the Secretary at the appropriate time or times for the purposes for which such payments are made, and after October 1, 1977, if the prepayments made by the borrower are not sufficient to pay the amount due, advances may be made by the Secretary to pay these costs in full, which advances shall be charged to the account of the borrower and bear interest and be payable in a timely fashion not to exceed two years, as determined by the Secretary.".

COMPENSATION FOR CONSTRUCTION DEFECTS

Sec. 504. Section 509 of the Housing Act of 1949 // 42 USC 1479. // is amended by adding at the end thereof the following new subsections:

"(c) The Secretary is authorized, after October 1, 1977, with respect to any unit or dwelling newly constructed during the period beginning eighteen months prior to the date of enactment of the Housing and Community Development Act of 1977 and purchased with financial assistance authorized by this title which he finds to have structural defects to make expenditures for (1) correcting such defects, (2) paying the claims of the owner of the property arising from such defects, or (3) acquiring title to the property, if such assistance is requested by the owner of the property within eighteen months after financial assistance under this title is rendered to the owner of the property or, in the case of property with respect to which assistance was made available within eighteen months prior to the date of enactment of the Housing and Community Development Act of 1977, within eighteen months after such date of enactment. Expenditures pursuant to this subsection may be paid from the Rural Housing Insurance Fund. Decisions by the Secretary regarding such expenditures or payments under this subsection, and the terms and conditions under which the same are approved or disapproved, shall not be subject to judicial review.

"(d) The Secretary shall, by regulation, prescribe the terms and conditions under which expenditures and payments may be made under the provisions of this section.".

FARM LABOR HOUSING LOANS AND GRANTS IN PUERTO RICO AND THE VIRGIN ISLANDS

Sec. 505. Section 514(f)(3) of the Housing Act of 1949 // 42 USC 1484. // is amended to read as follows:

"(3) the term 'domestic farm labor' means persons who receive a substantial portion (as determined by the Secretary) of their income as laborers on farms situated in the United States, Puerto Rico, or the Virgin Islands and either (A) are citizens of the United States, or (B) reside in the United States, Puerto Rico, or the Virgin Islands after being legally admitted for permanent residence therein.".

PURPOSES FOR WHICH FUNDS FROM THE RURAL HOUSING INSURANCE FUND MAY BE USED

Sec. 506. Section 517(j) of the Housing Act of 1949 // 42 USC 1487 // is amended--,

(1) by striking out "and" at the end of paragraph (3);

(2) by striking out the period at the end of paragraph (4) and inserting in lieu thereof a semicolon; and

(3) by adding at the end thereof the following new

paragraphs:

"(5) after October 1, 1977, and as approved in appropriations Acts, to make advances authorized by section 501(e); and

"(6) after October 1, 1977, and as approved in appropriations Acts, to make the expenditures authorized by section 509(c).".

HOUSING FOR THE ELDERLY AND HANDICAPPED

Sec. 507. (a) Title V of the Housing Act of 1949 // 42 USC 1471. // is amended--,

(1) by striking out "elderly persons" in section 501(a)(3) and inserting in lieu thereof "elderly or handicapped persons or families";

(2) by striking out "that he is an elderly person in a rural area without an adequate dwelling or related facilities for his own use," in section 501(c)(1) and inserting in lieu thereof "that the applicant is an elderly or handicapped person or family in a rural area without an adequate dwelling or related facility for its own use,";

(3) by striking out "elderly persons and elderly families" in subsection (a) and (b) of section 515

// 42 USC 1485. //

and inserting in lieu thereof "elderly or handicapped persons or families";

(4) by striking out "elderly persons and elderly families" in section 521(a)(1)

// 42 USC 1490a //

and inserting in lieu thereof "elderly or handicapped persons or families"; and

(5) by inserting "or handicapped" after "elderly" in clause (i) of the last sentence of section 521(a)(2)(A).

(b) Section 501(b)(3) of such Act // 42 USC 1471. // is amended to read as follows:

"(3) For the purposes of this title, the term 'elderly or handicapped persons or families' means families which consist of two or more persons, the head of which (or his or her spouse) is at least sixty-two years of age or is handicapped. Such term also means a single person who is at least sixty-two years of age or is handicapped. A person shall be considered handicapped if such person is determined, pursuant to regulations issued by the Secretary, to have an impairment which (A) is expected to be of long-continued and indefinite duration, (B) substantially impedes his ability to live independently, and (C) is of such a nature that such ability could be improved by more suitable housing conditions, or if such person is a developmentally disabled individual as defined in section 102(7) of the // 42 USC 6001 // Developmental Disabilities Services and Facilities Construction Act. The Secretary shall prescribe such regulations as may be necessary to prevent abuses in determining, under the definitions contained in this paragraph, eligibility of families and persons for admission to and occupancy of housing constructed with assistance under this title. Notwithstanding the preceding provisions of this paragraph, such term also includes two or more elderly (sixty-two years of age or over) or handicapped persons living together, one or more such persons living with another person who is determined (under regulations prescribed by the Secretary) to be essential to the care or well-being of such persons, and the surviving member or members of any family described in the first sentence of this paragraph who were living, in a unit assisted under this title, with the deceased member of the family at the time of his or her death.".

CONGREGATE HOUSING FOR ELDERLY AND HANDICAPPED FAMILIES

Sec. 508. (a) Section 515(c) of the Housing Act of 1949 // 42 USC 1485. // is amended by adding at the end thereof the following new sentence: " However, specifically designed equipment required by elderly or handicapped persons or families shall not be considered elaborate or extravagant.".

(b) Section 515 (d)(1) of such Act is amended by adding at the end thereof the following:"; and such term also means congregate housing facilities for elderly or handicapped persons or families who require some supervision and central services but are otherwise able to care for themselves; such housing for the handicapped may be utilized in conjunction with educational and training facilities;".

(c) Section 515(d)(3) of such Act is amended to read as follows:

"(3) the term 'congregate housing' means housing in which (A) some of the units may not have kitchen facilities, and (B) there is a central dining facility to provide wholesome and economic meals for elderly or handicapped persons or families.".

PROVIDING FOR A DIVISION OF INSURED RURAL HOUSING LOANS

Sec. 509. Section 517 of the Housing Act of 1949 (as amended by section 502(c) // 42 USC 1487. // is amended by adding at the end thereof the following new subsection:

"(o) At least 60 per centum of the amount of loans made pursuant to sections 502 and 515 // 42 USC 1472, 1485. // shall benefit persons of low income.".

RURAL HOUSING RESEARCH

Sec. 510. Section 506(d) of the Housing Act of 1949 // 42 USC 1476. // is amended to read as follows:

"(d) In order to carry out this section, the Secretary shall establish a research capacity within the Farmers Home Administration which shall have authority to undertake, or to contract with any public or private body to undertake, research authorized by this section.".

RURAL RENTAL ASSISTANCE

Sec. 511. Section 521(a)(2)(A) of the Housing Act of 1949 // 42 USC 1490 // is amended by striking out "may" wherever it appears, except in clause (i), and inserting in lieu thereof "shall".

TAXATION OF FARMERS HOME ADMINISTRATION HELD PROPERTY

Sec. 512. (a) Title V of the Housing Act of 1949 // 42 USC 1490h // is amended by adding the following new section at the end thereof:

" Sec. 528. All property subject to a lien held by the United States or the title to which is acquired or held by the Secretary under this title other than property used for administrative purposes shall be subject to taxation by a State, Commonwealth, territory, possession, district, and local political subdivisions in the same manner and to the same extent as other property is taxed: Provided, That no tax shall be imposed or collected on or with respect to any instrument if the tax is based on--,

"(1) the value of any notes or mortgages or other lien instruments held by or transferred to the Secretary;

"(2) any notes or lien instruments administered under this title which are made, assigned, or held by a person otherwise liable for such tax; or

"(3) the value of any property conveyed or transferred to the Secretary, whether as a tax on the instrument, the privilege of conveying or transferring, or the recordation thereof; nor shall the failure to pay or collect any such tax be a ground for refusal to record or file such instruments, or for failure to impart notice, or prevent the enforcement of its provisions in any State or Federal court.".

(b) Notwithstanding any other provision of law, no State, Commonwealth, territory, possession, district, or local political subdivision which has received, prior to the date of enactment of this Act, tax payments from the Department of Agriculture based on property held by the Farmers Home Administration shall be liable for, or be obligated to refund, the amount of any such payment, which, if it had been made after the date of enactment of this Act, would have been authorized by the provisions of section 528 of the Housing Act of 1949, and no officer or employee of the United States shall incur or be under any liability by reason of having made or authorized any such payments.

(c) The amendment made by subsection (a) // 42 USC 1490h // shall become effective as of January 1, 1977.

TITLE VI- NATIONAL URBAN POLICY

Sec. 601. (a) Section 701 of the Urban Growth and New Community Development Act of 1970 // 42 USC 4501 // is amended--,

(1) by striking out subsection (a)

// 42 USC 4501 // and inserting in lieu thereof

the following:

"(a) This title may be cited as the ' National Urban Policy and New Community Development Act of 1970'.";

(2) by striking out "growth" the first time it appears in subsection (b);

(3) by inserting "energy and" before "our natural resources" in subsection (b);

(4) by inserting "and their residents" before "of adequate tax base," in subsection (b); and

(5) by inserting "good housing in" before "well-balanced neighborhoods" in subsection (b)

(b) Section 702 of such Act // 42 USC 4502. // is amended--,

(1) by striking out subsection (a) and inserting in lieu thereof the following:

"(a) The Congress finds that rapid changes in patterns of urban settlement, including change in population distribution and economic bases of urban areas, have created an imbalance between the Nation's needs and resources and seriously threaten our physical and social environment, and the financial viability of our cities, and that the economic and social development of the Nation, the proper conservation of our energy and other natural resources, and the achievement of satisfactory living standards depend upon the sound, orderly, and more balanced development of all areas of the Nation.";

(2) by inserting "and redevelopment" before "which adversely affect" in subsection (b), by striking out "our" in subsection (b) and inserting in lieu thereof "energy and other", and by striking out "growth" the last time it appears in subsection (b);

(3) by inserting "energy and other" before "natural resources," in the first sentence of subsection (c), by striking out "growth" sentence of subsection (c), by striking out "growth" in the first sentence of subsection (c), by striking out "growth" the first time it appears in the second sentence of subsection (c) and inserting in lieu thereof "development and redevelopment", and by striking out "growth and stabilization" in the second sentence of subsection (c) and inserting in lieu thereof "urban";

(4) by striking out "growth" the first time it appears in subsection (d);

(5) by striking out "help reverse trends of migration and physical growth which reinforce" in paragraph (3) of subsection (d) and inserting in lieu thereof "encourage patterns of development and redevelopment which minimize"; and

(6) by striking out growth and stabilization," in paragraph (8) of subsection (d) and inserting in lieu thereof "development and redevelopment, encourage", by inserting "energy and other" before "natural resources" in such paragraph (8), and by striking out "the protection" in such paragraph (8) and inserting in lieu thereof "protect".

(c) Section 703 of such Act // 42 USC 4503. // is amended--,

(1) by striking out the section heading and the material preceding paragraph (1) of subsection (a) and inserting in lieu thereof the following:

"NATIONAL URBAN POLICY REPORT

" Sec. 703. (a) The President shall transmit to the Congress during February 1978, and during February of every even-numbered year thereafter, a Report on National Urban Policy which shall contribute to the for